ABC: 'Blame' Inflation on the 'Price of Wheat'
Donât expect the media to connect the dots between inflation, higher food prices and government mandated increases in the use of biofuels. ABC didnât.
âWorld News with Charles Gibsonâ 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 Decemberâs rise.
âBlame it on the price of wheat,â said ABC correspondent Sharon Alfonsi. âDemand 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
What Alfonsi didnât explain is that the âdemand for alternative energiesâ is an artificial demand created by government mandate. According to the February 12 USA Today, it is heavily-subsidized âgovernment-mandated biofuelsâ that are contributing to the higher commodity prices.
âSoaring demand, rising oil prices and government-mandated biofuel use have sent many commodity prices to their highest levels in history,â Sue Kirchhoff and John Waggoner wrote in USA Today.
To add insult to injury, biofuels â including corn-based ethanol â arenât 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.
âBut in recent months, scientists, private agencies and even the British government have said biofuels could do more harm than good,â AP reporter Michael Casey wrote. âRather 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
According to an editorial in the February 21 Investorâs Business Daily, our dependence on âforeign oilâ 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.
âSuppose you had a ton of money sitting in your bank account but you decided to max out your credit cards anyway,â the editorial said. âThatâs the energy policy of the