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Gold/Mining/Energy : Big Dog's Boom Boom Room -- Ignore unavailable to you. Want to Upgrade?

To: GVTucker who wrote (100769)	5/12/2008 8:47:20 AM
From: elmatador	Respond to of 206207

Subsidy 1. a direct pecuniary aid furnished by a government to a private industrial undertaking, a charity organization, or the like. 2. a sum paid, often in accordance with a treaty, by one government to another to secure some service in return. 3. a grant or contribution of money. 4. money formerly granted by the English Parliament to the crown for special needs. Yes, there was a subsidy to kick start the project, and then project has to walk on its own foot. Petrobras -when a monopoly- would kill anything to keep it, thus made necessary the mandate of the % of ethanol. Also to avoid lead in the gasoline. There is need for ethanol in the cars in the US to replace MTBE. That's not subsidy. It is just Interesting to note is that Flex-fuel vehicles were made to avoid the 100% ethanol car. Petrobras would practice dumping to kill ethanol, to avoid that industry produce cars that could run in both. Therefore avoiding Petrobras dumping. It dumped gasoline people would use it. If stopped, cars could go back to alcohol. Subsidy is government footing part of the bill. It is taking money from an efficient sector and giving it to an inefficient one. Government intervening in the market not to avoid an import bill (US oil imported bill this year alone is $450billion) is not subsidy. Intervening in the market to distort is like 54c to keep away a more efficient product is not subsidy either, nor is clever. Give you an example: Airbus calls Boeing planes subsidized. Boeing tells: Prove it! Europeans say, the juicy defense contracts that Boeing gets having 'subsidizing' the civil planes foir decades. But a subsidy is directly footing the bill.