Wednesday, October 2, 2013

The Government Buys Sugar For 20.3 Cents A Pound And Then Sells For 4.1 Cents a Pound

Thank goodness we have the government shutdown.  This government that guys like Mr. Huffman run has gone absolutely insane.    Today Pacific Ethanol a company that produces ethanol for our gasoline announced a deal with the USDA to buy 167 million pounds of beet sugar from our government for 4.1 cents a pound in a deal worth almost  $6.85 million.

Less than a month ago the USDA took 85,000 tons (170 million pounds of sugar) as payment to cover a $34.5 million loan.  The price paid by the US for the sugar was 20.3 cents per pound.  Note the amount of sugar bought and sold are almost identical.  Therefore no one can claim these were different sized transactions requiring prices that differ almost five fold.

Yeah Mr. Huffman you guys buy high sell low all in the name of green fuels.   At least with government now shut these “sweet” deals will not happen for a few days.  All this cotton candy for the bio-ethanol industry is going to make the paper tiger lose its teeth.  Mr. Huffman is a champ at sweet deals.  For a meager $10,000 in campaign donations he let AT&T get over $40 million of SGIP money when he was an Assemblyman in California.    That was a 400 to 1 deal so to Huffy a 5 to 1 deal is something he thinks the government should be proud of doing.   I look at it as a bad deal for those who gave up on $34.5 million loan.  Wait a second it is we the American population who gave up $27.6 million is less than a month so Huffy friends at Pacific Ethanol could have a sweet deal to make bioethanol. 

The chemical reaction of one sucrose plus one water yields 4 ethanols and 4 carbon dioxides is well known.  Now the reaction of 5 tax dollars yielding 1 tax dollar will be written in the green chemistry texts.  Al Gore will help write those texts as he invented sweet lime chemistry.  Huffman will be a coauthor of the book.  Gore is Dr. Evil and Huffman is Number 2.  A Real Number 2!!!


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