Biodiesel: The Fuel for today

With the high cost of gasoline around the country, and the fact it is constantly climbing with no view of stabilizing, the world needs to start looking at alternative fuels. During this phase of the economy its a good investment. One of the alternative fuels that has started to become popular is called “Biodiesel”. A fuel that is run on vegetable oils. Biodiesel engines can be created or converted from petroleum diesel engines easily and cost-effectively. Biodiesel comes from renewable plant resources such as the oils from vegetables, soy, beans, canola, rape seeds, hemp seeds, and various grains. Through the process of transesterification, a chemical modifical of ordinary vegetable oil, creates a fuel that meets the high industry standards for usage in diesel engines that prevents it from solidifying at colder temperatures. You can get various biodiesels already at the pumps that might be labelled “biodiesel” but in reality are mixed with petroleum and its biodiesel content could be as low as only 5%. These are labelled B5, B20, B50, and B100 to show the mix composition. SVO - Straight vegetable oil is that which has not yet been optimized through transesterification for use in diesel engines - but suffers from freezing and solidifying easier in colder temperatures - needing some source to preheat it before starting the engine. You can use cooking oil straight from the bottle (expensive) or use WVO - Waste vegetable oil, usually for free, from fast food restaurants that usually dump it. However, WVO has to be filtered, and that is a messy and timely event. Vegetable oil conversion kits for diesel engines usually include a heating system and a second gas tank to circumvent the solidification issues. SVO produces very low emissions and is one of the better alternatives for the environment. Biodisel is the only alternative fuel that has completed the health effects testing requirements of the Clean Air Act, creating a substantial reduction in hydrocarbons, carbon monoxide, and other noxious fumes caused by most fuels. SVO is better for diesel engines as the inventor of the Diesel engine (Rudolph Diesel) originally intended the diesel engine for peanut oil. Biodiesel saves money on fuel costs, reduces emissions, recycles waste oils from restaurants, is a fuel made from renewable crops which in effect keeps farmers employed, and is good for the environment. The cons to using biodiesel can void your current warranties if you install a conversion kit and use biodiesel; collecting and converting WVO is a messy job and also very time consuming; there is mixed data on how SVO affects engine life span. Conversion kits can be obtained from various merchants for as low as $500 from greasecar.com. More information can be found online at www.biodiesel.org, goodgrease.com, localb100.com, journeytoforever.org, biodieselblog.com, wvofuels.com, calcars.org, oil_press.com, or a typical google search.

Biodiesel, a wave of recycling for the future, a new fuel that’s starting to get popular, that is based on recycling or using vegetable or food oil for fuel. Many at-home-labs and conversion projects will go and pick up used vegetable oil from fast food places like Mc Donalds for free, take it home, filter it, and process it for their biodiesel engines. The result? a consumable cost of 25-50 cents/gallon, and an engine that can get upwards plus of 75 miles to the gallon. Sound fabulous? it is conceptually, but its alot of work to clean the oil at home. Biodiesel pumps however are being installed in many states and available at the pump. A bit cheaper than petrol, you still get the maximizing effect of miles to the gallon. How to convert your engine over to biodiesel? There are kits as cheap as $200. However, you have to already have a diesel engine to start the conversion. An amazing new investment strategy? Invest in biodiesel companies to maximize your profit … there’s growth there too, more miles for your dollars, in many more ways than one. Just google “biodiesel” and you’ll be amazed by this new technology. If I already had diesel engines in my car and RV, you can bet I’d already be converted. Just wish there was a way to convert my regular engine over. :: sigh :: someday.

Are you a fan of long-term investing?

If so, Morningstar is suggesting you take a look at stocks in the media sector.

Media stocks have performed poorly over the past few years, but don’t let that deter you:

We suspect that future returns for media stocks will be much better than those of the recent past … and we’re not just saying this because the past several years have been so bad.

In fact, 40% of the 60 media stocks Morningstar covers have ratings of either 4 stars or 5 stars, and the media sector overall includes more undervalued stocks than any of the other 12 sectors Morningstar analyzes.

Where should you start? How about Washington Post Co., one of Morningstar’s favorites. And don’t forget The New York Times Co. and The Wall Street Journal. Finally, remember to take a look at local options: firms — like Journal Register, McClatchy and Lee Enterprises — that “own scores of small, community-based newspapers … are much less vulnerable to changes in technology.”

The Federal Reserve’s new beige book report, which offers a glance at economic conditions in all 12 Fed districts, showed that the American eceonmy grew at a “moderate” pace in January and February in most parts of the country.

High prices for fuel and raw materials continued, and both business and consumer spending grew.

Based on this information, the Fed will decide when and by how much to raise the overnight lending rate, which is the amount of interest banks charge to each other and forms the basis for determining the interest rate you pay for everyhitng from credit cards to mortgages and car loans.

Analysts expect two more quarter-point increases, one later this month and one in May, to bring the prime rate to 5 percent. The Fed has raised the rate 14 times since June 2004. It is expected the rate will stay at 5 percent for the second half of the year.

Unemployment fell slightly in February as the economy grew almost 5 percent between January and March.

And, if you really wanted to know, it’s called the beige book because of the color of its cover (See, I did learn something working at newspapers all those years!).

(Source: Bloomberg)

Denver Airport
Denver Colorado
http://www.flydenver.com/
Out on the east side of Denver, in the middle of nowhere, surrounded by Toll roads with the exception of I-70, this airport is easy to access with very little congestion. They have alternative parking spots with shuttle for $5/night. Easy drop off, Easy check in to the airport, and a massive foodcourt. Unfortunately the wireless internet is not free - you have to be a cingular wireless subscriber, though T-mobile roam service is available for $5/24 hours. Shuttle trains to the concourse and a bit of artsy decoration and building structures. 4 1/2 stars out of 5.

I just recently completed a book entitled Naked Economics: Undressing the Dismal Science, by Charles Wheelan. It was great. If you are like me, the only economics that you know is from highschool or the cranky rants of your father. I really wanted to know more about economics without reading a dull, thick textbook. This book was awesome!

The book offers a pretty comprehesive survey of the general facets of economics, and it does it in a humorous but very informative manner. The book is for intelligent readers who don’t have much of a background in economics. It offers tremendous amounts of real world examples to illustrate its points, and the concepts really stick with you.

It talks about the importance of human capital: “Why Bill Gates is Richer than You”. It talks about how the economics of information can be very lucrative: “McDonalds Didn’t Make a Better Hamburger”. It discussed the basics of the Federal Reserve, which is something I previously knew very little about…why are interest rates important, and how do they relate to inflation and unemployment? The book answers these questions thoroughly.

I loved the book, and I would read it again. If I had children at this point, I might break this out as bed time reading since it is so engaging. An interesting note, this book contains no math; although I am a math major and appreciate math as much as the next guy, it made the book go a lot quicker.

To buy the book, find more reviews here is the link to Amazon.com

Or I also recommend checking the book out at your local library (A lower cost alternative.)

Will the appointment of Ben Bernanke to the Chairman of the Federal Reserve mean a continued deficit-running economy, but lower inflation?

That’s what seems to be the consensus on WallStreet following the announcement.

Financial Times: Bernanke likely to be tough on inflation, relaxed on deficit

MarketWatch: Getting a read on Bernanke

CNN Money: Bernanke hearing may come next month.

CNN Money reports:

The Senate Banking Committee could hold a hearing on Ben Bernanke’s nomination to be chairman of the Federal Reserve as early as Nov. 14, a senior Democratic aide said Wednesday.

WaPo: Bernanke’s Learning Curve

It’s clear Bernanke has some rather large shoes to fill. Greenspan left an impressive record that will be tough to match, especially without another dot-com Bubble or similar bull run that the US economy saw in the ’90s.

If only, there was a way for investors and corporations to understand what motivates people to buy and sell stocks. If only, the brain could signal when certain stocks like Enron or Tyco were not the viable stocks they were touted to be. With the advancements in neurology, scientists may discover what motivates buying, selling and holding behavior.

A novel science is exploring the link between the brain and personal financial behavior. The new field is referred to as neuro- economics. It seeks to demystify the biology underlying economic behavior. Across the nation, research trials and universities are probing cerebral cortexes for the connection between the brain and investing decisions.

Researchers are trying to learn how the neural networks impact buying behavior. From buying to selling, the study is evaluating the way humans splurge and save. The studies are evaluating how the financial mind works. Scientists are working to demystify how neural circuits formulate the decision process. “We have started looking for pieces of economic theory in the brain,” states New York University neuroscientist Paul Glimcher.

The data is all over the board these days when it comes to the US economy. Reuters is reporting:

NEW YORK (Reuters) - Industrial production and consumer sentiment reports came in on the weak side on Friday, the latest data to support the view that higher oil prices could lead to slower U.S. growth in the second quarter.

The Federal Reserve said U.S. industrial production rose 0.3 percent in March, as expected, but February’s output was revised down to a 0.2 percent increase from the 0.3 percent gain previously reported.

The latest measure of April consumer confidence also bespoke a more uncertain economic outlook as energy costs soared. The University of Michigan’s consumer sentiment index slid to 88.7 from 92.6 in March, according to market sources who saw the subscription-only report.

Read more here

Another great piece from Capital Spectator:

The U.S. balance of trade slipped to another all-time deficit in February–$61 billion vs. $59 billion in January, reports the U.S. Census Bureau. If you thought the news would take a hefty bite out of the dollar, you were mistaken. By the close of Wall Street trading today, the dollar gained ground against the euro and yen.

If that counters forex logic, think again, say the buck’s bulls. The catalyst for that corner of optimism stems from trade between U.S. and China, goes one school of thought. Although America’s trade deficit with China remains firmly negative, February’s level of red ink with the Middle Kingdom actually slipped in February from January, reports CBC.

In another instance of China’s sway over the markets, the International Energy Agency advised that demand growth for oil recently took a breather in the world’s most-populous nation. “Chinese demand growth slowed to 5.4% in the first two months of 2005, well below the 20.8% growth seen a year ago,” IEA reports. The news helped slash the price of a barrel of crude in New York today by almost $2.

Read more here