leadhead 358---The cost of our exported and of course domestic food is going up. One reason, although certainly not the only, is that we are subsidizing farmers to produce corn for ethanol, 25% of the crop.
Senior smoke---We can't charge Iraq for all the billions we have spent and continue to spend because Presidents Bush 1&2 , the guys in charge at the time and who decided that we needed defend Kuwait and to attack Iraq to get rid of weapons of mass destruction, didn't make that deal.
With the value of the dollar continually decreasing in value everything is going to go up. Until "the great one" decides he's going to quit printing money whenever the need arises we are going to be stuck with paying more for just about everything while making less.
Traders--That is my point if we do not ship the grains overseas then our prices will level off (for food). If the countries overseas want our grains then the price for them should go up. Supply and demand just like they tell us on crude oil. You do not see $4 gasoline overseas in the countries that produce oil. It costs us more to produce because of their oil. If they lower the cost of crude then the price of grain goes down.
osama is telling farmers not to burn too much fuel in the growing of corn so that they won't starve the people oversees because they were burning ethenol instead of growing it. Most farmers have diesel tractors. What an idiot.
How about if we all go another 500 miles before we change oil in our vehichles, can you imagine how much oil that would save the country if we all did that. Everyone that still changes it at 2000-3000 miles, if they would go to 4000-5000 miles how much would that help?
The one thing that is for certain is that the cost of food will increase with the cost of fuel. The actual value of either commodity is relatively stable. The problem is that people confuse value with currencies which for the most part are no more than game tokens.
Food is already going UP. Price is going up for a smaller amount of goods--read the labels, they are putting out smaller cans & boxes of food and charging more. It is no longer a 16Oz can, now it is a 14oz can. Ice Cream no longer 1/2 Gal, but somewhat less. Puffs are in smaller boxes and cost more. Take a walk around the store you shop at, you will be surprised.
Of course we could put high export tariffs on our agricultural products. That would mean that American farmers would get much less for their exported and domestic products. Other countries would of course retaliate and a trade war would develop. Since we are the worlds biggest trader, both buying and selling, we would get hurt the most.
The problem for us is that that oil prices are largely controlled by the Middle East Oil Cartel, OPEC, and they always try to keep their prices just low enough so that their customers, us, will accept the pain and not try to come up with alternatives. They also want to keep our economies reasonably solvent because this is where they have most of their, our, money invested.
We have been foolish enough to play their game. Instead of saying, "Screw Em", lets tax the gas ourselves and use that income to develop alternatives, we keep sending the money to some of the worst people in the world. Of course it would be painful, but at least the money stays here and maybe does some good. Nothing good happens for us when we send money to places like Venezuela, Nigeria, and Saudi Arabia.
Also keep in mind that energy independence based on a petroleum economy is a pipe dream. No recognized authority believes that is possible at current rates of usage. And, every barrel oil from the Gulf of Mexico, Alaska, or the Canadian Oil Shale, is much more expensive to produce than shallow pumping in the sand. We have found the easy/cheap stuff.