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Strategies & Market Trends : Booms, Busts, and Recoveries

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To: aknahow who wrote (65057)6/16/2005 3:37:34 AM
From: elmatador  Read Replies (1) of 74559
 
When Ethanol was born the White House Xmas tree was unlit to give an example to the American people of energy saving. The Royal family of Holland used bicycles to give an exampleto the Dutch people to save energy. It was the 70’s.

The land was used to plant sugar cane and the end product was sugar. Now the crop is still sugar cane and the end product is Ethanol.

Then , in the 70’s, sugar was exported competing against subsidies of the developed countries. We could produce more than we needed and much more than the market could absorb. Lets produce Ethanol on the land that otherwise would be used to produce sugar and flood the market and depleted the prices even more. We will divert sugar for Ethanol to fuel cars. We still have to crack the oil for the other stuff but we can export gasoline that is saved by the use of Ethanol. And the world was starved for gasoline.

Then we don’t put lead in the gasoline (because adding Ethanol doesn’t need lead) as an additve and have a cleaner fuel. OK, we didn’t sell that as we are cleaner and other environment marketing gimmick.

An industry of destilleries and the stuff that used to make them and we add an x% of our GNP. The world kept moving and we kept improving our booze-mobiles. 30 years later there is much less oil isnde the Earth than we had 30 years ago. The countries that supply the stuff are much more volatile than the were 3 decades ago. Today we have India, China and the rest of Asia just about to boom real good. Today we have many more cars then we have 30 years ago.

Lets that cash in on the sweet stuff. 30 years hence, the Torrid Zone is receiving Gigawatts of sun light 365 days a year there.

Need more land? Squeeze cattle ranching and use the land to produce Ethanol. Need more tons of sugar cane per hectare? Get the brains behind it to achieve. Need even more land? Get out of coffee plant sugar cane. Leave it to Ghana, Vietnam, Indonesia, Ethiopia Colombia to export and develop and we concentrate on sugar cane. Let the price of sugar raise and make the Europeans red beet sugar competitive…

I’m curious: You’re an academic, aren’t you?

Don't worry about the distortions. Read Marx and Engles about the beginnig of the Industrial Revolution, or Galbraith about the Robber Barons... Distortions on who gets most of the money is the norm when somone big is about to start...

Who should worry about distortions are the Europeans fighting about their budget and the Common Agriculture Policy.
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