[Terrapreta] Net Present Value vs. Net Future Value of Terra

[Jim Joyner]

I also agree with Kevin's approach to making terra preta or charcoal 
sequestration economical. First, we need to find TP's real efficacy in 
the soil and then we need to sell farmers on that efficacy. Without 
either of these steps terra perta is just an academic curiosity.

I would warn those, however, who are depending on governments for 
hand-outs to make TP economical (I know, the discussion uses the term 
"carbon credits" but these are government subsidies no matter what you 
call them.) that such subsidies always end in tears for legitimate 
farmers (I do not include the huge American Agri-businesses as 
"legitimate farmers". They are farmers of privilege, of gov't largess). 
It drives them out of business. It has happened over and over again.

Typical  gov't economics goes something like this: If the price is too 
high, the gov't caps it; that nips any incentive to make more in order 
to get the price lower; If the price is too low, they subsidize it; 
then, market will simply increase the excess creating a larger glut. No 
matter what a gun does in the market, it makes things worse.
 
As the write this, the US Federal Reserve, with money it doesn't have 
(or money it dilutes [or steals] from everyone owning a dollar), much 
like the gambling hedge funds and banks, the Fed is gambling resources 
to support the worst of businesses (banks mostly) and the worst of 
borrowers. And, at the same time, it is sacrificing the welfare of the 
best and most efficient businesses and individual savers. Just the way 
the gov't works. The government has nothing it doesn't take from others. 
Economically, it can only make things worse on balance.

Jim