Wednesday, May 21, 2008

Biodiesel the saviour of inflation?

Today I have been reading more about Biodiesel and the transesterisation process. The use of ethanol versus methanol and wow this country is so ready to lead the world into the mass production of Biodiesel it is not funny. The environmental benefits of Biodiesel are almost immeasurable.

Today we have again seen oil prices skyrocket with more pain to be had at the Pump. We are told that this will only be inflationary and that the Reserve Bank is sure to increase Interest Rates to protect us from the evil scourge of inflation.

I heard today that the reason for Diesel prices in this country being as high as they are is simply due to the massive demand in Asia for the product.

This still does not make sense to me. The Reserve Bank Board and the Australian Labor Party are happy to see more people out of work, homeless and relying on Government handout. They even made provision for this inevitable outcome in their new Federal Budget.

So how do we explain this logic to the victims of the Reserve Bank Board decisions that this is the interest rate hike we must have? Or to the business that can no longer sustain itself without increasing cost and wages and the inevitable pressure that will be felt or need to close the doors or simply go broke.

Inflation in this country clearly is going to be driven by the outrageous increases in the price of oil. Why then are we not supporting a process of rapidly increasing production of this environmentally friendly alternative. One suspects that Government is still very happy to reap its now even more excessive income from Fuel Taxes. Funny how in opposition the Rudd Government was very critical of the Howard Government not relieving the pressure on Fuel Price by easing Tax but simply are mute on the topic now they are in Power.

Obviously the oil companies do not want to do this as it threatens their very existence. CSR (and others) through their sugar interests has a very real interest through the production of ethanol. Vegetable Oil Manufacturers and recyclers surely must have an interest. The farmers surely also have an interest. The transport industry I would have thought are extremely interested in creating at least a competitive product to encourage OPEC to release more oil to bring down the price.

The Vehicle Manufacturer’s must be interested with the not insignificant developmental investment in diesel power.

I ask again why are we waiting or is this just some massive political conspiracy?

Thursday, May 15, 2008

Agrifuels to compete with Oil Price and battle inflation

I cannot believe how long it is taking the world to move to Agrifuels. Globally we are concerned about inflation and the major contributor to this cost is the price of oil.

Fuel outside of water is probably the most mission critical item we use in the world today. Every mode of transport relies on fuel. The manufacture and production of every item we use relies on fuel. Economies of the world are in total turmoil as we face the turmoil of dealing with inflation. We shift interest rates, we lay off staff, and we put the blame on the consumer. How well has the plot of the oil companies and the oil rich nations of the world brought us to our knees, and what do the economists do blame the consumer and penalise the consumer and make his/her life a bigger misery.

Oh we are extremely alarmed at the cost of food and the farmers of Australia are dieing because the farm gate prices barely justify their task. Having said that recently when trying to challenge the big retail buyer’s price control mechanisms the hearing begged the farmers to bring their evidence. Where are the advocacy groups when the hearing begs them to present their case?

Food prices, why are they so high? It is pretty obvious really, the primary producer uses fuel, transport to the processor uses fuel, transport to the market uses fuel, we use fuel to get to the market place the whole process uses fuel.

Ok my point! Oil prices have increased by 600% with the majority of that hike having occurred over the last five years. You would have to say it is absolutely amazing that inflation has been held in check to the degree of still being in the 3% to 4% range when this critical commodity price has jumped so emphatically. But oh know the economists in their doom and gloom set about belting up the consumer.

The answer really remains simple – Agrifuels. In a country where the canegrowers are hurting and ethanol is such a magnificent bi-product for them, where vegetable seed oil crops are readily grown (canola being a good example as it is an ideal rotational crop for our wheat growers – but there are many others worthy of consideration) bio-fuels, Agrifuels are an obvious solution. I will guarantee when a viable competitor for mineral oil is promoted the price will immediately reflect the competition.

So who is blocking the development? The car manufacturers of Europe sure are not. Mercedes Benz, BMW, Audi, Volkswagen just to name a couple of minor manufacturers all have diesel versions of their cars which today are performing exceedingly well. Even Holden in their non-anniversary anniversary announcement declared they are designing a new diesel engine for the Astra (funny what ever happened to the diesel Gemini of the ‘70’s). So we are being held to ransom by who OPEC? , the Oil Companies?, the Oil Producing Countries?

C’mon Aussie – lets get about producing Bio-fuels and take the market into a competitive product that will see Oil Prices tumble and a cleaner better environment. Someone please explain why is it taking so long?

Tax on Alcopops - just made the Bad Guys Smile

I cannot believe the lack of imagination amongst our politicians. Putting the price up on Alcopops, as we so happily call them does one thing, increases Government revenue and makes Drugs all the more attractive.
It is simple the drug dealers will be going flat out as the price on their form of poison just became more attractive.
The addict of binge Alcopops will simply change the vehicle of getting there.