ABC: 'Blame' Inflation on the 'Price of Wheat'
Donâ€™t expect the media to connect the dots between inflation, higher food prices and government mandated increases in the use of biofuels. ABC didnâ€™t.
â€śWorld News with Charles Gibsonâ€ť explained on February 20 that biofuels are driving up food prices, which is driving up inflation. The Consumer Price Index (CPI), a key inflation reading, rose 0.4 percent in January according to the Labor Department, matching Decemberâ€™s rise.
â€śBlame it on the price of wheat,â€ť said ABC correspondent Sharon Alfonsi. â€śDemand for alternative energy has farmers planting less wheat and more corn â€“ the key ingredient of ethanol. Add the growing appetite for wheat from developing countries and the supply is strained.
Alfonsi continued, â€ś
What Alfonsi didnâ€™t explain is that the â€śdemand for alternative energiesâ€ť is an artificial demand created by government mandate. According to the February 12 USA Today, it is heavily-subsidized â€śgovernment-mandated biofuelsâ€ť that are contributing to the higher commodity prices.
â€śSoaring demand, rising oil prices and government-mandated biofuel use have sent many commodity prices to their highest levels in history,â€ť Sue Kirchhoff and John Waggoner wrote in USA Today.
To add insult to injury, biofuels â€“ including corn-based ethanol â€“ arenâ€™t even environmentally friendly, according to experts. A January 23 story by the Associated Press reported that biofuels do more harm than good to the environment.
â€śBut in recent months, scientists, private agencies and even the British government have said biofuels could do more harm than good,â€ť AP reporter Michael Casey wrote. â€śRather than protecting the environment, they say energy crops destroy natural forests that actually store carbon and thus are a key tool in the fight to reduce global warming.â€ť
According to an editorial in the February 21 Investorâ€™s Business Daily, our dependence on â€śforeign oilâ€ť in a global oil market would be solved if Democrats in Congress would stop restricting the supply and open up part of Arctic National Wildlife Refuge (ANWR) for oil drilling.
â€śSuppose you had a ton of money sitting in your bank account but you decided to max out your credit cards anyway,â€ť the editorial said. â€śThatâ€™s the energy policy of the