Monday, January 28, 2008
Just Say No Go
The first Hillary commercial has just infected my TV screen. The Smartest Woman In The World is going to solve the energy crisis! How is she going to do this? She's going to start a new $50 Billion Federal Program to subsidize and support 'alternative energy sources'. Now we know that nuclear power ( the only sane alternative to burning hydrocarbons or building hydroelectric dams, and the solution adopted by the Euros) is off the table so what kind of new technology is the government going to subsidize? Ethanol? Well, after you get done distilling the corn mash into ethanol and then transporting the ethanol to where its mixed in with gasoline by truck (ethanol cant be transported using the existing pipeline system) you've used as much energy as you get from burning the ethanol. That cant be good for the atmosphere, or for the cost of driving. The Congress, Republican and Democrat alike, have blocked the import of cheap Brazilian ethanol, made from sugar cane, for political reasons. The ethanol market only exists because of huge subsidies paid out by the helpless taxpayers.
So where's she getting the 50 billion? She's going to end the 'special tax breaks' that Big Oil are getting under the Bushy Tax Code. Hmmm. Arent those 'special tax breaks' accounting rules that incentivize exploration for oil? And if you remove the tax breaks and the big, greedy oil companies dont want to pay more taxes wont they just stop drilling for oil? If they do that then the projected $50 bil wont be there. But lets assume that some domestic drilling does take place and that its costs are raised by this tax. What do corporations do to recoup when their costs go up? They raise their prices. So Hillary's plan will cut domestic supply and raise prices.
The Democrat's intended precipitate withdrawal from the Middle East ("No Blood For Oil") and the subsequent takeover of that strategic region by enemies pledged to our destruction will do the rest.
Buy a bicycle before there's a stampede.