Using the same rules and methods of 1980 to determine inflation. It ran 9.6% last year. The Obama adiminstration said it was 2-3%. Current rules include home prices, but do not include fuel and groceries because they are too "volitile" and "subject to seasonal changes". 87% of Americans drive to work and to buy what they need. Only 13% walk, ride a bike, or use public transportation, and that is mostly in large cities. Everyone has to eat. Food prices take a double wammy. Transporting food to market is one because of high fuel prices. MANDATED use of ETHYNOL made from ANIMAL FEED corn is another. 90% of all corn was used for animal feed, 10% was for human consumption. So, using corn for fuel drives up the cost of MEAT and EGGS before they are even transported. Big agriculture corporations like this, just like big oil. We need to be using more natural gas for fuel, drilling more here, building pipelines, etc, to bring down fuel prices, and no mandated ethynol. Everything would go down and stabilise. More people would go back to work.
Algae oil is more productive per acre than corn, but it costs $4 per gallon to make into fuel, BEFORE the road taxes. WHEN oil gets higher to drill and sell and algae becomes less expensive, THEN we can make algae oil. Free market will switch on its on eventually. I think it costs about that much to make coal into fuel also. We have an 800 year supply, but not cost effective to coal gasify yet. Oil companies will be the ones making the fuel anyways when it becomes cost effective. Still cheaper to drill and/or buy from overseas. Natural gas is $1.85 per gallon equivelant, so it is already in the ball park if oil prices don't come down.
