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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum
GLD 368.29+0.6%Nov 7 4:00 PM EST

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To: elmatador who wrote (6080)5/5/2006 3:28:37 AM
From: Maurice Winn  Read Replies (2) of 217593
 
In the supermarket today, I noticed sugar costing NZ$1 a kilogram. That's in 1 kg bags. With petrol costing NZ$1.80 per litre and a specific gravity of 0.74 or so, that's NZ$2 per kilogram. Twice the price.

With all the oxygen in sucrose, there's not quite the bang per kilogram, and of course there isn't any fuel tax on sugar.

But it costs a LOT more to put a nicely wrapped 1kg of sugar on an upmarket supermarket shelf than it does 1kg of fuel in a huge underground tank at a fuel station.

Which means that people will be switching to other energy sources than fossil hydrocarbons. Which means the relative price of fossil hydrocarbons will be coming down or market share will disappear. It might mean that the price of biofuels will go up, and therefore the price of land.

Mqurice
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