A Tale of 2 OILies?

So much has been written about how biodiesel from OILY palms will deforest the world and create environmental disasters. Want to share a document I found on the web by greenergy. Pretty up to date also, data from as recent as 2006. http://www.greenergy.com/perspectives/Palm.pdf

ONLY 2% of ALL OILY palm is "expected" to go to biodiesel. Where are all the others going?? mostly FOOD!! others will go to soap and detergent and what not. OILY palm is actually good for your heart according to research done.

So, dear extreme environmentalists, do u want to EAT and stay alive? OR u don't want to EAT and let the rainforest thrive? hehehe.... pick your choice.

Wah... more dirt to dig up on OILY palms. Biodiesel is NOT the reason for the run up in OILY palm. SO much misconception! It is an added bonus but NOT the reason. Human population growth and higher disposal income is the reason lah. As long as human want to have sex and populate, as long as Benny and Mr. SEX continue to put employment before everything else, hehehe.... I stupid now expect OILY palm to stay buoyant. hehehe...

Money Trees Revisited

Grace brought our attention to OILY counters once again. So, I decided to dig deeper into the OILY palms! To my surprised, I found something new: 93% of all OILY palms goes to food processing! Biodiesel (a fuel that can be extracted from OILY palm) is INsignificant.

This struck me like lightning. It means that the run up of this OIL palms was due to food demand more than the much hyped alternative fuel demand. Also, from my research, Cheena is only consuming about 21kg per capita compared to HungKees of 44kg or so. I suspect India also quite low still. Meaning that 2 BILLION more people will still need quite a few more million tonnes of OILY palms.

All this talk about alternative fuel is not likely to happen so soon since at current OILY palms prices, biodiesel is a loss making business. Biodiesel is only feasible when OILY palms drop to US$700 (RM 2,200 at 3.15 FX). OR when price of BLACK OIL is much more expensive. This gets me thinking.... will BLACK oil go up to US$200 or more as some Leeches & Sexes (L&S) claims? I don't know when that will happen but I am quite sure that that price will be reached and breached some day, 50 years? 100 years later? I don't know, but I do know that hydrocarbon like BLACK OIL is limited in supply and one day it will be exhausted! BLACK oil is not renewable, unless u can wait for a few million years to use the carbon matters that u bury today... hahahaha.... so wat is the implication for OILY palm then?

Well, I suspect that OILY palm will be use to feed automobiles and humans after the BLACK oil is gone. hehehe... so many more automobiles are place on the roads everyday in Cheena and India. So many more hungry "mouths" to feed these OILY palm to.

Then, the negative news all over the internet, deforestation. Many greenpeace of friends of earth, etc claims that the clearing of rainforest do more harm than the good of using OILY palm. hehehe... What I want to know is that when BLACK oil runs out, will these environmentalist ride bicycles and walk on feet to buy n carry things? IF they want to drive an automobile to reach their destinations, OILY palm is probably their best alternative. Because OIL palm is the most effective oil producer per hectare planted compared to soybean or corn. This brings me to the next question that has been bugging me in my mind. Y are the Ang Moh so against OIL palm growing in Malaysia (MY) and Indonesia (ID)???

Do you know that MY and ID together controlled over 85% of all OILY palm produced! Y? The climate just suitable lor. hehehe... They are probably afraid that after the middle east they have to deal with another group of islams! hehehe...

For wat is worth, I got back into some OILY palm today. hehehehe....

Markets want HIGHER rates

Mr. Spanny may find it quite a conundrum that mortgage rates are not coming down with such DRASTIC cut in FED funds rate. But, when has the market started to take orders from the regulators? It is normally the other way around - regulators (such as FED) taking orders from the markets. Since LIBOR and mortgage rates are not responding to the cuts, I suspect the markets are signaling to the regulators that they are missing the point (INFLATION) in their efforts to save the world by trying to prop up the employment rate. However, it should be noted that previous rate cuts, in the aftermath of 911, the markets DID respond. How come markets are not responding this time around? I would argue that in 911, inflation was NOT an issue. That was why the rate cuts achieved what the regulators want.

HIGHER market rates SHOULD discourage businesses to invest in low internal rate of returns projects, which in turn should lower the demand for commodities, which in turn should deflate the current boom in commodities prices. Current Market rate seems to be WANTING that scenario because it will lower future INFLATION. HOWEVER, in their effort to secure jobs for everyone, the central banGers are LOWERING rates.

Something is wrong! Policies are now set like a socialist economy! And these central banGers are all from the so call FREE capital markets of the world. Capitalists becoming more socialists, while the socialists/communists are becoming more like capitalists. They will meet somewhere in between.

But, if history is of any guide, central banGers usually give in to the markets demand. hehehe... I stupid for one expect much higher interest rate on my deposit with all the banGs. heheheh...