As you know, ethanol is evidence of three of Harold Black's laws: 1. if it is mandated it is bad 2. if it is subsidized it is bad and 3. if competition is restricted it is bad. We all know that if Iowa did not have the first important presidential primary that we would not have the ethanol albatross. What idiot would mandate that we buy a product that is worse for the environment than fossil fuels, shorten engine life, and drives up food prices? Only an idiot would advocate burning up food and further impoverishing the world's poor. Yet ethanol does all of this with the US allocating a ridiculous 40 percent of its corn production for ethanol and causing food riots around the world. Of course we don't pay much attention to poor people in poor countries rioting because the price of corn - a vital foodstuff - has sharply risen. Now if the good old boys who use corn to bait for deer start rioting because a 50 pound bag that used to cost $4.50 now is $11 then the administration would take notice. Now comes the UN. How many times can you think of agreeing with anything coming out of the UN? For me, its one. The UN just published a report has called for an end to ethanol subsidies, citing ethanol as a primary cause of rising food prices worldwide. I am waiting to hear Newt Gingrich, leading spokesman for the ethanol lobby to explain away this one.
Harold A. Black is professor emeritus in the Department of Finance, University of Tennessee, Knoxville having retired after 24 years of service. He has served on the faculties of American University, Howard University, the University of North Carolina - Chapel Hill and the University of Florida. His government service includes the Office of the Comptroller of the Currency and as a Board Member of the National Credit Union Administration. He also has served on the boards of directors Home Savings of America and its parent company, H. F. Ahmanson & Co., Irwindale, California prior to its merger with Washington Mutual Savings Bank, on the board of New Century Financial Corporation, Irvine, California, then the nation’s largest real estate investment trust and as director and later chairman of the Nashville Branch of the Federal Reserve Bank of Atlanta. He writes an occasional article for the Knoxville News-Sentinel at http://www.knoxnews.com/staff/dr-harold-black/. His web page is haroldablackphd.com