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Ethanol Hype Finally Waning, We Hope

Only in the upside-down world of government bureaucracy could you have a situation where you pay one group 51-cents a gallon to grow crops for fuel (instead of, you know, to eat) all in the name of environmental goodness, yet turn around and charge another group a 54-cents a gallon penalty for wanting to bring U.S customers the very same product.

It doesn’t take a genius to figure out the end result. Higher food prices for everyone, more deficit spending and a willing supplier (Brazil) that can’t enter the market because of this stupidity.

But, always more a product of taxpayer handouts and an archaic presidential election calendar than any actual environmental savings or reduced carbon footprint, the great purported energy savior, corn ethanol, might actually be on the ropes.

With food prices rising and more and more crop fields being planted strictly for ethanol production (not for environmental altruism mind you, but for the above-mentioned subsidy), support for this political boondoggle may finally be waning. While we’d like to say it is coming to an end, when has any government subsidy actually subsided?

If Congress is finally ready to do something about ethanol, then they need to look at what really is fleecing American taxpayers on numerous fronts — tariffs.

For decades the government has gifted domestic sugar farmers with steep tariffs on imports that have artificially inflated the cost to U.S. consumers. And with sugar-derived ethanol being far more efficient than corn, eliminating import barriers would allow the industry to switch its prime ingredient.

And as long as we’re dropping trade barriers, let’s eliminate that 54-cent penalty and start importing Brazilian ethanol. If it truly is about cleaner air, lower fuel costs and lessening dependence on foreign oil (which, unfortunately, is mostly found in unstable political regions) then this really is a no-brainer.

But if it’s more because one small Midwestern state is first every couple years in picking a President, then maybe this can be one more reason to dump Iowa from its perch.

The ethanol backlash:

Coalition presses Congress over ethanol — Financial Times
Backing for ethanol boost evaporates — The Globe and Mail
Lawmakers turn up the heat on ethanol in response to rising food prices — L.A. Times
Rethinking Ethanol — New York Times
Market Spotlight: Once-trendy ethanol struggles — CNN/Money
The Many Myths of Ethanol — John Stossel
The Clean Energy Scam — Time
How Biofuels Could Starve the Poor — CFR

Is Reno That Hard Up For Decent Italian Food?

Craving carnitas, I decided to make my way over to La Michoacana on South Virginia and Kietzke. With 99-cent tacos and burritos weighing in at over a pound for just $3.75, it’s a popular place with good reason.

So when I pulled into the strip mall, it wasn’t that surprising to find it packed all the way to Big 5 at the south end. But when I went into Michi I was only third in line and the restaurant was only about a quarter full. What gives, I thought?

The answer, as I would soon find out, truly boggles the culinary mind. All those cars were there for the Olive Garden! Yes, the McDonald’s of linguine had about 30 people waiting outside for seats at 4:55 p.m. on a Saturday!

Does that mean the king of Italian food in the Biggest Little City is a chain restaurant owned by the same company as Red Lobster? Are the bread sticks really that good?

Here’s MAD TV’s take on this culinary institution.

Obama Girl Jumps The Shark

Let’s face it, Amber Lee Ettinger and Barely Political have had a pretty good run with the ubiquitous “Obama Girl” videos.

Ettinger’s managed to turn her lip-syncing odes and gyrations for Barack into appearances in Maxim, FHM, SNL and even Playboy (though not the type of layout most fans were hoping for), while Barely Political went from being barely noticed to, well, something YouTubers like.

But when you end up doing a Mike Gravel video, it’s safe to say the good times are officially over.

Where The Average American’s Money Goes

Ever wonder what percentage of your money goes where? And how much more certain items are taking from your wallet?

Check out this nifty chart over at the Times that details almost everything, including the odd fact that spending on tomatoes are up 18% over 2007.

Another STAR Fleecing of Nevadans

That Great Nevadan corporate giveaway, otherwise know as the Sales Tax Anticipated Revenue (STAR) bond, is once again preparing to fleece taxpayers and shaft local businesses who play by the rules. And, as an added bonus this time, we have the Reno Gazette-Journal’s editorial board supporting the move, albeit grudgingly, with the asinine “well, 25% of something is better than 100% of nothing” argument.

Foolish us, we always thought STAR bonds, which allow developers to keep 75% of the sales tax generated for 20 years, were originally designed for projects that actually promoted real tourism, not oversized shopping malls. But much like Cabela’s managed to snooker Reno with its ludicrous claim of drawing millions of completely new visitors solely because they could now, we guess, buy a duck blind in person, Sparks is falling for the same spiel from the Legend’s project.

What’s so laughable about this special treatment is how little economic thought apparently goes into government’s decision.

First off, the main argument (perpetuated by the RGJ’s board) is that somehow every dime spent in these retail projects is newfound money. Money, and tax dollars, that wouldn’t exist because, you know, there aren’t any other retail stores or restaurants in town. This is the same story always put forward by sports teams whenever owners want the public to foot the bill for a new stadium. They come up with some huge economic benefit, calculated on ticket sales and surrounding expenditures, and say “See all that what we bring you.”

But the dirty little secret is this is just a reallocation of money. When a family decides to spend their Friday night out at the game, it’s almost always at the expense of going to the movies or a Chuck E. Cheese, this isn’t new money generated by the stadium. It is just entertainment dollars spent somewhere else.

In any given population there is a finite amount of money to be spent. Adding more choices, doesn’t increase the amount spent. Trust us, with personal savings in the negative, consumers aren’t hoarding cash just so they can spend it at a new designer store in town. Nor will a multitude of monied Sacramento and Bay Area denizens be making a special trip to visit stores they already have. Increases in sales figures have more to do with population growth and economic conditions than choice (especially in a market this size). If those elements are positive, a company is going to move in no matter what because of the profit motive.

The other factor is just plain old fairness. Why should Cabela’s, Legend’s, etc. be allowed to retain sales tax for their own expenditures when it is illegal for every other business in Nevada? This is equivalent to a 5.5% price advantage for STAR projects. An advantage that, safe to say, probably isn’t passed along to consumers.

How do you think small business owners like Todd and Jeanine Morgan, who have sunk everything into running Big Apple Pizza and Subs (and were featured in a Sunday RGJ article on how local restaurants are suffering), feel turning over every cent of sales tax when a huge corporation gets to use three-quarters of it for themselves? Or the Sportsman’s Warehouse on Kietzke that played by the rules.

Finally, there is the other economic benefit that is always touted — job creation. While true, there will be hundreds of new jobs with these projects, what kind are we really talking about? It’s not manufacturing, skilled services or professional salaries, it’s that low man on the totem pole — retail sales. Twenty hours a week at $8.50 per isn’t going to put someone in a Reno house or make a hill of beans in the region’s overall economic outlook. Plus, one needs to factor in any possible job losses by like businesses unable to compete with the special STAR treatment.

Yet somehow with our roads crumbling, budgets exploding and revenues dropping the good folks in our government see fit to say goodbye to millions of sales tax dollars (which area consumers still have to pay) all so the Truckee Meadows can have another Chili’s, Lane Bryant and Sunglass Station (yes, those are actual Legend’s tenants). But, hey, there will be a Hot Dog Hall of Fame.

Smile, You’re Subsidizing TRPA’s Power Bill

It’s hardly news that the average Joe tends to get the shaft while special interests get, well, special treatment. But when the average Joe has to foot the bill for someone else, who can well afford it, that’s something else.

Monday’s Reno Gazette-Journal was especially rich with irony on a pair of stories regarding the cost of energy. First you had a front-page article on the pinch many customers are feeling these days in making their monthly payments to Sierra Pacific. A pinch that will only get a little harder if a proposed 16% increase in electricity rates is approved.

So after sympathizing with the woes of people facing the prospect of their lights being turned off, we flipped the page and found the following gem — Tahoe Regional Planning Agency goes green with solar energy.

And while the article is horribly written (Is the TRPA selling some of this power back on the grid or is it just supplying a portion of its own needs? And, if so, how much?), your first reaction is “good for them.” Until, of course, you read the rest of the story.

You see, despite the solar panels allegedly saving the agency over half a million dollars ($540K to be exact) in the next 30 years, they aren’t paying full freight on the project. Heck, they aren’t even paying half the $270,000 it will cost. No, their part of the bill is just $120K. Sierra Pacific is giving the agency a whopping $150K rebate. A rebate that, naturally, you, I and the poor slobs in the first story are paying for.

And if that’s not enough, the TRPA was also given a reduced, and locked in for three decades(!), rate of just 7 cents a KW instead of the 12 everybody else currently pays. (Although, in fairness, the article is so poorly constructed we can’t tell if this is for all the power they use or if it is a part of the rebate, which we don’t think, or whatever.)

So next time you pay your Sierra Pacific bill, if you are able, just remember that thanks to you TRPA is paying a hell of a lot less.

Do Clinton and Obama Even Know What a Gun Is?

Cyber Bullies, Stupid Bills and Just How Long Has This Presidential Campaign Been Going

Cyber bullying isn’t just posting gossip on Juicy Campus, it can also involve blowhard lawyers threatening the little guy.

• How to close down a blogger — The local version of the flipside to cyber bullying. We would mention names, but not sure how strong Google fights lame DMCA threats.
• How to talk to a blogger — John McCain earns raves for his straight talk with bloggers.
• How long has the Barack Obama vs. Hillary Clinton battle gone on? — How about before there was the iPhone, when gas was just $2.20 a gallon, Elliot Spitzer was the man and, yes, even before both Manning brothers won Super Bowls. Yikes.
• Stupid Bills and California — They do kind of go together don’t they. This one, which would require caterers to have a system in place to donate all unused food , mercifully was tabled.

Ron Paul and the Nevada Republican Convention Fiasco

Traditionally, Nevada’s political conventions have been a relatively staid and sparsely attended affair. Since the results are usually a formality, as the nominee is almost always anointed by the time the Silver State comes together, these meetings are mainly for the party faithful who do the heavy lifting during the year. In other words, a small minority.

But whenever you have the combination of low attendance and a rabid base, funny things can happen. That’s what occurred Saturday in Reno with the Nevada GOP convention when Ron Paul supporters swamped the Peppermill and forced a a vote that gave them a chance to snare a good number of national delegates. In the end, though, the convention was cancelled before the final selection of delegates was completed.

Here’s a wrap up of what actually happened from a variety of local sources, including the much-maligned, at least in some circles, Bob Beers:

• Chaos Over Paul Cuts Short Gathering — Reno Gazette Journal’s Anjeanette Damon’s in-print account of the day. A good story, but for the real blow-by-blow scoop see next.
• Inside Nevada Politics — Damon’s political blog has 14 entries on what happened.
• NEVADA POLITICS: GOP Convention Cut Short “Some supporters of Ron Paul riled after time runs out at state party event.” — Molly Ball with the Las Vegas Review-Journal weighs in.
• Ron Paul Supporters Make Mark — Carson City’s Nevada Appeal’s account, including threats made towards convention chairman, and state senator, Beers.
• Ron Paul Backers Outmaneuver Nevada GOP Establishment — Reno’s KOLO-8’s coverage, including video.
• GOP State Convention — Beers own account of what happened. And for the Paul supporters gunning for him in some conspiracy theory, let me just say two things. 1) Beers was a Fred Thompson supporter, not a McCain one. 2) If there is one straight-shooter in Nevada’s legislature who isn’t afraid of answering a tough question or talking (twice) to a lowly blogger (as well as run one himself) it is Beers.

And some non-Nevadan impressions:

• Wacky Paultards Ruin Nevada GOP Convention — The Wonkette’s take.
• Blue Moon or the day I sided with the Paulites — Liberal in support of Paul’s fans.
• Just got off the phone with Bob Beers… — Daily Paul blogger interviews Beers and actually seems respectful.
• (BREAKING NEWS) Robert Mugabe hires Bob Beers as election Chair in Zimbabwe — Perhaps more representative of Daily Paul posters (i.e., an out-of-state wanker who helps continue the “fringe” tag that surrounds Paul.)

The Big MacChicken

Granted, this has nothing to do with politics, unless you want to try and use it as a metaphor for a candidate pandering to two distinct constituencies (in this case, the great chicken vs. beef debate).

But, in reality, we just wanted to draw attention to this monstrosity and the man who not only created it, but actually attempted to eat the Big MacChicken.

Take three McDonald’s McChickens, one Big Mac, ditch the bread and prepare for a saturated fat (but low carb!) assault on your digestive tract.

But how did it taste? We’ll let him describe the experience.

With the first bite I found myself going through a crunchy/juicy layer after layer and the texture was to die for. Everything just worked. Clouds split as a bright ray of sunshine beamed down to my table. The elderly couple a few tables over started playing a harp as a unicorn walked by during my second bite. I was in heaven for a few seconds then the guilt hit me. Was I really doing this? 4 sandwiches at once? I had to stop. There was no way I could finish this monster.

Of course, 35 minutes later there was this reaction:

Thoughts of running to the restroom to vomit are racing through my head … Is it really my stomach that is aching or am I psychologically telling myself to vomit. All I know is that my mind is telling me that the sandwich was absolutely delicious but my body is rejecting it.

Ron Paul Rally and Convention Speech

Will Ron Paul devotees manage to successfully crash Nevada’s GOP convention this weekend?

A combination of a Paul visit, his hyper-enthusiastic base and the fact that caucus-winner Mitt Romney is no more, could make for some surprises this Saturday at the Peppermill in Reno. Especially since Paul supporters seem to be the only ones actually planning for the event.

Besides a scheduled convention speech by the Texas congressman, the lone presidential candidate slated to appear, Paul also will attend a pre-convention rally/party Friday night at Wooster High.

Ken Layne and Blogads Take Over Wonkette

Gawker Media dumped a trio of underperforming, at least ad revenue wise, blogs with the Wonkette topping the list.

Current editor, and former Renoite, Ken Layne is the new owner along with Blogads. Layne is hoping the political site will do better in the online ad market with Blogads handling the sales end.

Here’s hoping they do better for him then they did us.

Obama Girl, Elton John and Legal Bullies

Sexy videos, tax cheats, sleazy lawyers and a cussing Elton John.

• YouTube videos and the presidential campaign. Yes, the ubiquitous and busty Obama Girl is featured.
• Can Obama fever change the usual red state/blue state political map? The Politico doesn’t think so.
• If shaming hookers’ johns work, why not tax cheats asks USA Today.
• Elton John on Hillary-haters, “to hell with them.” Adds $2.5 million to Clinton coffers.
• And in honor of Mr. Jerz’s battle, John Stossel on “legal bullies.”

Banks Collapse As DM Cashes In Campaign Ad Booty

With the predicted gold rush of online campaign Blogads cash coming to an apparent close, the accountants at Dullard Mush rolled up their sleeves, broke out their spreadsheets and prepared for a long night of number crunching.

30 seconds later, they were done.

The bank-busting haul? After Blogads’ 30% commission, a whopping $10.50.

Even sadder than the actual figure, was when it was earned. It wasn’t in the throes of Nevada’s January caucus. Instead it was last March. Yes, 2007!

When that Hillary Clinton spot crossed our transom over a year ago, visions of fistfuls of cash (or, at least, the possibility of easily passing the $75 threshold needed for actual payment) danced in our heads. If they were buying spots this early imagine what will happen as we get even closer to an actual caucus we thought. But, alas, that “Dump Gonzales” banner not only was the highpoint of the advertising season, but the lone point.

So when Blogads did their annual sweeping of accounts that earned a tad more than squat, Dullard Mush sadly qualified. Even sadder, was the sight of our CFO shuffling off into the early evening vowing to use the ATM as he was too embarrassed to face an actual bank teller.

Roger Stone Does It Again and Again

The dapper don of dirty deeds, Roger Stone, has been a busy bee of late. Besides founding one of the more creatively named 527s, Stone has also been credited by some as having tipped off authorities to Eliot Spitzer’s hankering for prostitutes (and the Governor’s preference to keep his socks on) last year.

But now comes word he was the one behind the recent controversy surrounding Clinton pollster Mark Penn. Apparently Stone was the source for the leak on Penn’s Colombian deal and his firm’s alleged kiting of polling bills.

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