POSTED: Tuesday, February 15, 2011 - 7:03pm
UPDATED: Friday, February 18, 2011 - 11:59pm
The debate continues in Washington D.C. about what to cut.
But, while they fight in the sandbox, have you been noticing that the price of a lot of things are going up? Cotton has gone sky high. We'll pay more for clothes. Look at gasoline, even the most skeptical still say by this summer
we'll be paying $4 a gallon, maybe $5 the next year.
Remember when gas got tp $3 when Bush was president? There was outrage.
Right now, no outrage?
Something else to be watching- the price of food.
Since last month, the price of a bushel of corn has gone up from roughly $6.50 a bushel to $7.50.
The Telegraph newspaper is reporting despite the recent surge, the rise in agricultural commodity prices shows no sign of easing.
In fact, it looks like the situation is going to get worse with corn leading the charge ahead. Corn futures on the Chicago Board of Trade have almost doubled since June last year.
But a combination of relatively low stockpiles, a bad growing season and demand for corn-based ethanol, look set to propel them even higher.
On Friday, the Washington Post published an article accusing the biofuels industry of contributing to rising food prices and "doubling the challenge of producing more food." The article said that since 2004, for every additional ton of grain needed to feed a growing world population, rising government requirements for ethanol from grain had demanded a matching ton.
The U.S. biofuels industry says that's not true. But keep your eye on the price tag of everything.
And is this ethanol thing is a good idea?