Archive for the ‘CrashBlogging’ Category

What ISIS Really Wants

Monday, February 23rd, 2015

– I just read this long piece in the Atlantic Magazine and it is the clearest (and the most frightening) thing I’ve read on ISIS, who they are, why they are and what they want.

– It is a long but, I think, essential read to understand what ISIS is about.

– dennis

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The Islamic State is no mere collection of psychopaths. It is a religious group with carefully considered beliefs, among them that it is a key agent of the coming apocalypse. Here’s what that means for its strategy—and for how to stop it.

What is the Islamic State

Where did it come from, and what are its intentions? The simplicity of these questions can be deceiving, and few Western leaders seem to know the answers. In December, The New York Times published confidential comments by Major General Michael K. Nagata, the Special Operations commander for the United States in the Middle East, admitting that he had hardly begun figuring out the Islamic State’s appeal. “We have not defeated the idea,” he said. “We do not even understand the idea.” In the past year, President Obama has referred to the Islamic State, variously, as “not Islamic” and as al-Qaeda’s “jayvee team,” statements that reflected confusion about the group, and may have contributed to significant strategic errors.

The group seized Mosul, Iraq, last June, and already rules an area larger than the United Kingdom. Abu Bakr al-Baghdadi has been its leader since May 2010, but until last summer, his most recent known appearance on film was a grainy mug shot from a stay in U.S. captivity at Camp Bucca during the occupation of Iraq. Then, on July 5 of last year, he stepped into the pulpit of the Great Mosque of al-Nuri in Mosul, to deliver a Ramadan sermon as the first caliph in generations—upgrading his resolution from grainy to high-definition, and his position from hunted guerrilla to commander of all Muslims. The inflow of jihadists that followed, from around the world, was unprecedented in its pace and volume, and is continuing.

Our ignorance of the Islamic State is in some ways understandable: It is a hermit kingdom; few have gone there and returned. Baghdadi has spoken on camera only once. But his address, and the Islamic State’s countless other propaganda videos and encyclicals, are online, and the caliphate’s supporters have toiled mightily to make their project knowable. We can gather that their state rejects peace as a matter of principle; that it hungers for genocide; that its religious views make it constitutionally incapable of certain types of change, even if that change might ensure its survival; and that it considers itself a harbinger of—and headline player in—the imminent end of the world.

The Islamic State, also known as the Islamic State of Iraq and al-Sham (ISIS), follows a distinctive variety of Islam whose beliefs about the path to the Day of Judgment matter to its strategy, and can help the West know its enemy and predict its behavior. Its rise to power is less like the triumph of the Muslim Brotherhood in Egypt (a group whose leaders the Islamic State considers apostates) than like the realization of a dystopian alternate reality in which David Koresh or Jim Jones survived to wield absolute power over not just a few hundred people, but some 8 million.

We have misunderstood the nature of the Islamic State in at least two ways. First, we tend to see jihadism as monolithic, and to apply the logic of al?Qaeda to an organization that has decisively eclipsed it. The Islamic State supporters I spoke with still refer to Osama bin Laden as “Sheikh Osama,” a title of honor. But jihadism has evolved since al-Qaeda’s heyday, from about 1998 to 2003, and many jihadists disdain the group’s priorities and current leadership.

Bin Laden viewed his terrorism as a prologue to a caliphate he did not expect to see in his lifetime. His organization was flexible, operating as a geographically diffuse network of autonomous cells. The Islamic State, by contrast, requires territory to remain legitimate, and a top-down structure to rule it. (Its bureaucracy is divided into civil and military arms, and its territory into provinces.)

We are misled in a second way, by a well-intentioned but dishonest campaign to deny the Islamic State’s medieval religious nature. Peter Bergen, who produced the first interview with bin Laden in 1997, titled his first book Holy War, Inc. in part to acknowledge bin Laden as a creature of the modern secular world. Bin Laden corporatized terror and franchised it out. He requested specific political concessions, such as the withdrawal of U.S. forces from Saudi Arabia. His foot soldiers navigated the modern world confidently. On Mohammad Atta’s last full day of life, he shopped at Walmart and ate dinner at Pizza Hut.

There is a temptation to rehearse this observation—that jihadists are modern secular people, with modern political concerns, wearing medieval religious disguise—and make it fit the Islamic State. In fact, much of what the group does looks nonsensical except in light of a sincere, carefully considered commitment to returning civilization to a seventh-century legal environment, and ultimately to bringing about the apocalypse.

The most-articulate spokesmen for that position are the Islamic State’s officials and supporters themselves. They refer derisively to “moderns.” In conversation, they insist that they will not—cannot—waver from governing precepts that were embedded in Islam by the Prophet Muhammad and his earliest followers. They often speak in codes and allusions that sound odd or old-fashioned to non-Muslims, but refer to specific traditions and texts of early Islam.

To take one example: In September, Sheikh Abu Muhammad al-Adnani, the Islamic State’s chief spokesman, called on Muslims in Western countries such as France and Canada to find an infidel and “smash his head with a rock,” poison him, run him over with a car, or “destroy his crops.” To Western ears, the biblical-sounding punishments—the stoning and crop destruction—juxtaposed strangely with his more modern-sounding call to vehicular homicide. (As if to show that he could terrorize by imagery alone, Adnani also referred to Secretary of State John Kerry as an “uncircumcised geezer.”)

But Adnani was not merely talking trash. His speech was laced with theological and legal discussion, and his exhortation to attack crops directly echoed orders from Muhammad to leave well water and crops alone—unless the armies of Islam were in a defensive position, in which case Muslims in the lands of kuffar, or infidels, should be unmerciful, and poison away.

The reality is that the Islamic State is Islamic. Very Islamic. Yes, it has attracted psychopaths and adventure seekers, drawn largely from the disaffected populations of the Middle East and Europe. But the religion preached by its most ardent followers derives from coherent and even learned interpretations of Islam.

Virtually every major decision and law promulgated by the Islamic State adheres to what it calls, in its press and pronouncements, and on its billboards, license plates, stationery, and coins, “the Prophetic methodology,” which means following the prophecy and example of Muhammad, in punctilious detail. Muslims can reject the Islamic State; nearly all do. But pretending that it isn’t actually a religious, millenarian group, with theology that must be understood to be combatted, has already led the United States to underestimate it and back foolish schemes to counter it. We’ll need to get acquainted with the Islamic State’s intellectual genealogy if we are to react in a way that will not strengthen it, but instead help it self-immolate in its own excessive zeal.

– More:  

 

How Trade Deals Boost the Top 1% and Bust the Rest

Saturday, February 21st, 2015

by Robert Reich – Chancellor’s Professor of Public Policy, University of California at Berkeley

Suppose that by enacting a particular law we’d increase the U.S. Gross Domestic Product. But almost all that growth would go to the richest 1 percent.

The rest of us could buy some products cheaper than before. But those gains would be offset by losses of jobs and wages.

This is pretty much what “free trade” has brought us over the last two decades.

I used to believe in trade agreements. That was before the wages of most Americans stagnated and a relative few at the top captured just about all the economic gains.

Recent trade agreements have been wins for big corporations and Wall Street, along with their executives and major shareholders. They get better access to foreign markets and billions of consumers.

They also get better protection for their intellectual property — patents, trademarks, and copyrights. And for their overseas factories, equipment, and financial assets.

But those deals haven’t been wins for most Americans.

The fact is, trade agreements are no longer really about trade. Worldwide tariffs are already low. Big American corporations no longer make many products in the United States for export abroad.

The biggest things big American corporations sell overseas are ideas, designs, franchises, brands, engineering solutions, instructions, and software.

Google, Apple, Uber, Facebook, Walmart, McDonalds, Microsoft, and Pfizer, for example, are making huge profits all over the world.

But those profits don’t depend on American labor — apart from a tiny group of managers, designers, and researchers in the U.S.

To the extent big American-based corporations any longer make stuff for export, they make most of it abroad and then export it from there, for sale all over the world — including for sale back here in the United States.

The Apple iPhone is assembled in China from components made in Japan, Singapore and a half-dozen other locales. The only things coming from the U.S. are designs and instructions from a handful of engineers and managers in California.

Apple even stows most of its profits outside the U.S. so it doesn’t have to pay American taxes on them.

This is why big American companies are less interested than they once were in opening other countries to goods exported from the United States and made by American workers.

They’re more interested in making sure other countries don’t run off with their patented designs and trademarks. Or restrict where they can put and shift their profits.

In fact, today’s “trade agreements” should really be called “global corporate agreements” because they’re mostly about protecting the assets and profits of these global corporations rather than increasing American jobs and wages. The deals don’t even guard against currency manipulation by other nations.

According to Economic Policy Institute, the North American Free Trade Act cost U.S. workers almost 700,000 jobs, thereby pushing down American wages.

Since the passage of the Korea-U.S. Free Trade Agreement, America’s trade deficit with Korea has grown more than 80 percent, equivalent to a loss of more than 70,000 additional U.S. jobs.

Since China’s admission to the World Trade Organization, the U.S. goods trade deficit with China increased $23.9 billion (7.5 percent) to $342.6 billion. Again, the ultimate result has been to keep U.S. wages down.

The old-style trade agreements of the 1960s and 1970s increased worldwide demand for products made by American workers, and thereby helped push up American wages.

The new-style global corporate agreements mainly enhance corporate and financial profits, and push down wages.

That’s why big corporations and Wall Street are so enthusiastic about the upcoming Trans Pacific Partnership — the giant deal among countries responsible for 40 percent of the global economy.

That deal would give giant corporations even more patent protection overseas. It would also guard their overseas profits.

And it would allow them to challenge any nation’s health, safety and environmental laws that stand in the way of their profits — including our own.

The Administration calls the Trans Pacific Partnership a key part of its “strategy to make U.S. engagement in the Asia-Pacific region a top priority.”

Translated: The White House thinks it will help the U.S. contain China’s power and influence.

But it will make giant U.S. global corporations even more powerful and influential.

White House strategists seem to think such corporations are accountable to the U.S. government. Wrong. At most, they’re answerable to their shareholders, who demand high share prices whatever that requires.

I’ve seen first-hand how effective Wall Street and big corporations are at wielding influence — using lobbyists, campaign donations, and subtle promises of future jobs to get the global deals they want.

Global deals like the Trans Pacific Partnership will boost the profits of Wall Street and big corporations, and make the richest 1 percent even richer.

But they’ll bust the rest of America.

– To the Original:  

 

 

NSA hiding Equation spy program on hard drives

Wednesday, February 18th, 2015

– In 1999, Motorola, at my request, sent me to Silicon Valley for a week-long course in advanced Windows Win32 programming.  

– During this course, I remember talking with another participant; a young computer whiz who was from the NSA.  

– He talked about how they (the NSA computer guys) conducted red-team green-team battles to see who could infiltrate the other’s team’s computer systems.

– But the thing he talked about, that caught my interest the most, was when he said the hot new frontier was getting into firmware as a way of exerting control over computers remotely.  It was a new idea that immediately fascinated me but once he saw my interest, I think he realized that he might be talking too much and clammed up.  He avoided me for the rest of the week.

– The story, below, says that the technique of firmware infiltration may have been around since 2001.  I’m sure I heard the sound of the other shoe dropping when I read that.

– The article says:

It is not clear how the NSA may have obtained the hard drives’ source code. Western Digital spokesman Steve Shattuck said the company “has not provided its source code to government agencies.” The other hard drive makers would not say if they had shared their source code with the NSA.

– I don’t find it all that mysterous.  How hard would it be for the NSA to field computer-savvy agents directed to seek employment in these companies?  Or, as the article says, to require the companies to provide their source code to the NSA for security reviews before the U.S. Government will allow it to be used in U.S. facilities?

– Once the NSA has the firmware’s source code, they can modify it and then intercept the firm’s drives in shipment and refresh the firmware on the intercepted drives with the NSA’s new stuff …  that does everything the old firmware does … and a bit more.  

– The interception-during-shipment technique was outed over a year ago as being one of their favorite techniques though in that case it had to do with routers.

– dennis

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The US National Security Agency has figured out how to hide spying software deep within hard drives made by Western Digital, Seagate, Toshiba and other top manufacturers, giving the agency the means to eavesdrop on the majority of the world’s computers, according to cyber researchers and former operatives.

That long-sought and closely guarded ability was part of a cluster of spying programs discovered by Kaspersky Lab, the Moscow-based security software maker that has exposed a series of Western cyberespionage operations.

Kaspersky said it found personal computers in 30 countries infected with one or more of the spying programs, with the most infections seen in Iran, followed by Russia, Pakistan, Afghanistan, China, Mali, Syria, Yemen and Algeria. The targets included government and military institutions, telecommunication companies, banks, energy companies, nuclear researchers, media, and Islamic activists, Kaspersky said.

The firm declined to publicly name the country behind the spying campaign, but said it was closely linked to Stuxnet, the NSA-led cyberweapon that was used to attack Iran’s uranium enrichment facility. The NSA is the agency responsible for gathering electronic intelligence on behalf of the United States.

A former NSA employee told Reuters that Kaspersky’s analysis was correct, and that people still in the intelligence agency valued these spying programs as highly as Stuxnet. Another former intelligence operative confirmed that the NSA had developed the prized technique of concealing spyware in hard drives, but said he did not know which spy efforts relied on it.

NSA spokeswoman Vanee Vines declined to comment.

Kaspersky published the technical details of its research on Monday, which should help infected institutions detect the spying programs, some of which trace back as far as 2001.

The disclosure could further hurt the NSA’s surveillance abilities, already damaged by massive leaks by former contractor Edward Snowden. Snowden’s revelations have hurt the United States’ relations with some allies and slowed the sales of US technology products abroad.

The exposure of these new spying tools could lead to greater backlash against Western technology, particularly in countries such as China, which is already drafting regulations that would require most bank technology suppliers to proffer copies of their software code for inspection.

TECHNOLOGICAL BREAKTHROUGH

According to Kaspersky, the spies made a technological breakthrough by figuring out how to lodge malicious software in the obscure code called firmware that launches every time a computer is turned on.

Disk drive firmware is viewed by spies and cybersecurity experts as the second-most valuable real estate on a PC for a hacker, second only to the BIOS code invoked automatically as a computer boots up.

“The hardware will be able to infect the computer over and over,” lead Kaspersky researcher Costin Raiu said in an interview.

Though the leaders of the still-active espionage campaign could have taken control of thousands of PCs, giving them the ability to steal files or eavesdrop on anything they wanted, the spies were selective and only established full remote control over machines belonging to the most desirable foreign targets, according to Raiu. He said Kaspersky found only a few especially high-value computers with the hard-drive infections.

Kaspersky’s reconstructions of the spying programs show that they could work in disk drives sold by more than a dozen companies, comprising essentially the entire market. They include Western Digital, Seagate, Toshiba, IBM, Micron Technology and Samsung.

Western Digital, Seagate and Micron said they had no knowledge of these spying programs. Toshiba and Samsung declined to comment. IBM did not respond to requests for comment.

GETTING THE SOURCE CODE

Raiu said the authors of the spying programs must have had access to the proprietary source code that directs the actions of the hard drives. That code can serve as a roadmap to vulnerabilities, allowing those who study it to launch attacks much more easily.

“There is zero chance that someone could rewrite the [hard drive] operating system using public information,” Raiu said.

Concerns about access to source code flared after a series of high-profile cyberattacks on Google Inc and other US companies in 2009 that were blamed on China. Investigators have said they found evidence that the hackers gained access to source code from several big US tech and defense companies.

It is not clear how the NSA may have obtained the hard drives’ source code. Western Digital spokesman Steve Shattuck said the company “has not provided its source code to government agencies.” The other hard drive makers would not say if they had shared their source code with the NSA.

Seagate spokesman Clive Over said it has “secure measures to prevent tampering or reverse engineering of its firmware and other technologies.” Micron spokesman Daniel Francisco said the company took the security of its products seriously and “we are not aware of any instances of foreign code.”

According to former intelligence operatives, the NSA has multiple ways of obtaining source code from tech companies, including asking directly and posing as a software developer. If a company wants to sell products to the Pentagon or another sensitive US agency, the government can request a security audit to make sure the source code is safe.

“They don’t admit it, but they do say, ‘We’re going to do an evaluation, we need the source code,'” said Vincent Liu, a partner at security consulting firm Bishop Fox and former NSA analyst. “It’s usually the NSA doing the evaluation, and it’s a pretty small leap to say they’re going to keep that source code.”

Kaspersky called the authors of the spying program “the Equation group,” named after their embrace of complex encryption formulas.

The group used a variety of means to spread other spying programs, such as by compromising jihadist websites, infecting USB sticks and CDs, and developing a self-spreading computer worm called Fanny, Kasperky said.

Fanny was like Stuxnet in that it exploited two of the same undisclosed software flaws, known as “zero days,” which strongly suggested collaboration by the authors, Raiu said. He added that it was “quite possible” that the Equation group used Fanny to scout out targets for Stuxnet in Iran and spread the virus.

– To the Original:  

The 1847 lecture that predicted human-induced climate change

Monday, February 16th, 2015

“The thing that hath been, it is that which shall be; and that which is done is that which shall be done: and there is no new thing under the sun.”

Ecclesiastes 1:9

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A near-forgotten speech made by a US congressman warned of global warming and the mismanagement of natural resources

When we think of the birth of the conservation movement in the 19th century, the names that usually spring to mind are the likes of John Muir and Henry David Thoreau, men who wrote about the need to protect wilderness areas in an age when the notion of mankind’s “manifest destiny” was all the rage.

But a far less remembered American – a contemporary of Muir and Thoreau – can claim to be the person who first publicised the now largely unchallenged idea that humans can negatively influence the environment that supports them.

George Perkins Marsh (1801-1882) certainly had a varied career. Here’s how Clark University in Massachusetts, which has named an institute in his memory, describes him:

Throughout his 80 years Marsh had many careers as a lawyer (though, by his own words, “an indifferent practitioner”), newspaper editor, sheep farmer, mill owner, lecturer, politician and diplomat. He also tried his hand at various businesses, but failed miserably in all – marble quarrying, railroad investment and woolen manufacturing. He studied linguistics, knew 20 languages, wrote a definitive book on the origin of the English language, and was known as the foremost Scandinavian scholar in North America. He invented tools and designed buildings including the Washington Monument. As a congressman in Washington (1843-49) Marsh helped to found and guide the Smithsonian Institution. He served as US Minister to Turkey for five years where he aided revolutionary refugees and advocated for religious freedom. He spent the last 21 years of his life (1861-82) as US Minister to the newly United Kingdom of Italy.

In other words, he kept himself busy. But I would argue his defining moment came on 30 September, 1847, when, as a congressman for the Whig party (a forerunner of the Republican party), he gave a lecture to the Agricultural Society of Rutland County, Vermont. (The speech was published a year later.) It proved to be the intellectual spark that led him to go on and publish in 1864 his best-known work, Man and Nature: Physical Geography as Modified by Human Action.

More than 160 years on, it really does pay to re-read his speech as it seems remarkably prescient today. It also shows that he was decades ahead of most other thinkers on this subject. After all, he delivered his lecture a decade or more before John Tyndall began to explore the thesis that slight changes in the atmosphere’s composition could cause climatic variations. And it was a full half a century before Svante Arrhenius proposed that carbon dioxide emitted by the “enormous combustion of coal by our industrial establishments” might warm the world (something he thought would be beneficial).

Yes, in his speech, Marsh talks about “civilised man” and “savages” – and the language is turgid in places – but let’s cut him a little slack: this was 1847, after all. It’s about half way through he gets to the bit that matters most to us today:

Man cannot at his pleasure command the rain and the sunshine, the wind and frost and snow, yet it is certain that climate itself has in many instances been gradually changed and ameliorated or deteriorated by human action. The draining of swamps and the clearing of forests perceptibly effect the evaporation from the earth, and of course the mean quantity of moisture suspended in the air. The same causes modify the electrical condition of the atmosphere and the power of the surface to reflect, absorb and radiate the rays of the sun, and consequently influence the distribution of light and heat, and the force and direction of the winds. Within narrow limits too, domestic fires and artificial structures create and diffuse increased warmth, to an extent that may effect vegetation. The mean temperature of London is a degree or two higher than that of the surrounding country, and Pallas believed, that the climate of even so thinly a peopled country as Russia was sensibly modified by similar causes.

Some of the terminology he uses is clearly a little archaic to our ears today, but, broadly speaking, his hunch has subsequently proved to be correct. You can see him grappling with concepts that we now know as the urban heat island effectand greenhouse effect.

But in the speech he also called for a more thoughtful approach to consuming natural resources, despite the apparent near-limitless abundance on offer across the vast expanses of northern America. As the Clark University biography notes, he wasn’t an environmental sentimentalist. Rather, he believed that all consumption must be reasoned and considered, with the impact on future generations always kept in mind: he was making the case for what we now call “sustainable development”. In particular, he argued that his audience should re-evaluate the worth of trees:

The increasing value of timber and fuel ought to teach us that trees are no longer what they were in our fathers’ time, an incumbrance. We have undoubtedly already a larger proportion of cleared land in Vermont than would be required, with proper culture, for the support of a much greater population than we now possess, and every additional acre both lessens our means for thorough husbandry, by disproportionately extending its area, and deprives succeeding generations of what, though comparatively worthless to us, would be of great value to them.
The functions of the forest, besides supplying timber and fuel, are very various. The conducting powers of trees render them highly useful in restoring the disturbed equilibrium of the electric fluid; they are of great value in sheltering and protecting more tender vegetables against the destructive effects of bleak or parching winds, and the annual deposit of the foliage of deciduous trees, and the decomposition of their decaying trunks, form an accumulation of vegetable mould, which gives the greatest fertility to the often originally barren soils on which they grow, and enriches lower grounds by the wash from rains and the melting snows.
The inconveniences resulting from a want of foresight in the economy of the forest are already severely felt in many parts of New England, and even in some of the older towns in Vermont. Steep hill-sides and rocky ledges are well suited to the permanent growth of wood, but when in the rage for improvement they are improvidently stripped of this protection, the action of sun and wind and rain soon deprives them of their thin coating of vegetable mould, and this, when exhausted, cannot be restored by ordinary husbandry. They remain therefore barren and unsightly blots, producing neither grain nor grass, and yielding no crop but a harvest of noxious weeds, to infest with their scattered seeds the richer arable grounds below.
But this is by no means the only evil resulting from the injudicious destruction of the woods. Forests serve as reservoirs and equalizers of humidity. In wet seasons, the decayed leaves and spongy soil of woodlands retain a large proportion of the falling rains, and give back the moisture in time of drought, by evaporation or through the medium of springs. They thus both check the sudden flow of water from the surface into the streams and low grounds, and prevent the droughts of summer from parching our pastures and drying up the rivulets which water them.
On the other hand, where too large a proportion of the surface is bared of wood, the action of the summer sun and wind scorches the hills which are no longer shaded or sheltered by trees, the springs and rivulets that found their supply in the bibulous soil of the forest disappear, and the farmer is obliged to surrender his meadows to his cattle, which can no longer find food in his pastures, and sometime even to drive them miles for water.
Again, the vernal and autumnal rains, and the melting snows of winter, no longer intercepted and absorbed by the leaves or the open soil of the woods, but falling everywhere upon a comparatively hard and even surface, flow swiftly over the smooth ground, washing away the vegetable mould as they seek their natural outlets, fill every ravine with a torrent, and convert every river into an ocean. The suddenness and violence of our freshets increases in proportion as the soil is cleared; bridges are washed away, meadows swept of their crops and fences, and covered with barren sand, or themselves abraded by the fury of the current, and there is reason to fear that the valleys of many of our streams will soon be converted from smiling meadows into broad wastes of shingle and gravel and pebbles, deserts in summer, and seas in autumn and spring.
The changes, which these causes have wrought in the physical geography of Vermont, within a single generation, are too striking to have escaped the attention of any observing person, and every middle-aged man, who revisits his birth-place after a few years of absence, looks upon another landscape than that which formed the theatre of his youthful toils and pleasures. The signs of artificial improvement are mingled with the tokens of improvident waste, and the bald and barren hills, the dry beds of the smaller streams, the ravines furrowed out by the torrents of spring, and the diminished thread of interval that skirts the widened channel of the rivers, seem sad substitutes for the pleasant groves and brooks and broad meadows of his ancient paternal domain.
If the present value of timber and land will not justify the artificial re-planting of grounds injudiciously cleared, at least nature ought to be allowed to reclothe them with a spontaneous growth of wood, and in our future husbandry a more careful selection should be made of land for permanent improvement. It has long been a practice in many parts of Europe, as well as in our older settlements, to cut the forests reserved for timber and fuel at stated intervals. It is quite time that this practice should be introduced among us.
After the first felling of the original forest it is indeed a long time before its place is supplied, because the roots of old and full grown trees seldom throw up shoots, but when the second growth is once established, it may be cut with great advantage, at periods of about twenty-five years, and yields a material, in every respect but size, far superior to the wood of the primitive tree. In many European countries, the economy of the forest is regulated by law; but here, where public opinion determines, or rather in practice constitutes law, we can only appeal to an enlightened self-interest to introduce the reforms, check the abuses, and preserve us from an increase of the evils I have mentioned.

A footnote: it is 150 years ago this year since Marsh was personally appointed by Abraham Lincoln to be the US’s first ambassador to Italy. (Marsh was buried in Rome.) Just three years later, Lincoln approved the legislation which would lead to the creation of Yosemite National Park in California. This acted as a precedent across the world for federal and state governments to purchase or secure wilderness areas so they could be protected in perpetuity from development or exploitation. It’s speculation, of course, but I’ve always wondered whether Marsh and Lincoln ever discussed such matters, be it in person or in correspondence. Perhaps, there’s a keen historian out there who knows the answer?

– To the Original:  

– Research thanks to:  Piers L.

Warming Pushes Western U.S. Toward Driest Period in 1,000 Years

Friday, February 13th, 2015

Study Warns of Unprecedented Risk of Drought in 21st Century

During the second half of the 21st century, the U.S. Southwest and Great Plains will face persistent drought worse than anything seen in times ancient or modern, with the drying conditions “driven primarily” by human-induced global warming, a new study predicts.

The research says the drying would surpass in severity any of the decades-long “megadroughts” that occurred much earlier during the past 1,000 years—one of which has been tied by some researchers to the decline of the Anasazi or Ancient Pueblo Peoples in the Colorado Plateau in the late 13th century. Many studies have already predicted that the Southwest could dry due to global warming, but this is the first to say that such drying could exceed the worst conditions of the distant past. The impacts today would be devastating, given the region’s much larger population and use of resources.

“We are the first to do this kind of quantitative comparison between the projections and the distant past, and the story is a bit bleak,” said Jason E. Smerdon, a co-author and climate scientist at the Lamont-Doherty Earth Observatory, part of the Earth Institute at Columbia University. “Even when selecting for the worst megadrought-dominated period, the 21st century projections make the megadroughts seem like quaint walks through the Garden of Eden.”

“The surprising thing to us was really how consistent the response was over these regions, nearly regardless of what model we used or what soil moisture metric we looked at,” said lead author Benjamin I. Cook of the NASA Goddard Institute for Space Studies and the Lamont-Doherty Earth Observatory. “It all showed this really, really significant drying.”

The new study, “Unprecedented 21st-Century Drought Risk in the American Southwest and Central Plains,” will be featured in the inaugural edition of the new online journal Science Advances, produced by the American Association for the Advancement of Science, which also publishes the leading journal Science.

Today, 11 of the past 14 years have been drought years in much of the American West, including California, Nevada, New Mexico and Arizona and across the Southern Plains to Texas and Oklahoma, according to the U.S. Drought Monitor, a collaboration of U.S. government agencies.

The current drought directly affects more than 64 million people in the Southwest and Southern Plains, according to NASA, and many more are indirectly affected because of the impacts on agricultural regions.

Shrinking water supplies have forced western states to impose water use restrictions; aquifers are being drawn down to unsustainable levels, and major surface reservoirs such as Lake Mead and Lake Powell are at historically low levels. This winter’s snowpack in the Sierras, a major water source for Los Angeles and other cities, is less than a quarter of what authorities call a “normal” level, according to a February report from the Los Angeles Department of Water and Power. California water officials last year cut off the flow of water from the northern part of the state to the south, forcing farmers in the Central Valley to leave hundreds of thousands of acres unplanted.

“Changes in precipitation, temperature and drought, and the consequences it has for our society—which is critically dependent on our freshwater resources for food, electricity and industry—are likely to be the most immediate climate impacts we experience as a result of greenhouse gas emissions,” said Kevin Anchukaitis, a climate researcher at the Woods Hole Oceanographic Institution. Anchukaitis said the findings “require us to think rather immediately about how we could and would adapt.”

Much of our knowledge about past droughts comes from extensive study of tree rings conducted by Lamont-Doherty scientist Edward Cook (Benjamin’s father) and others, who in 2009 created the North American Drought Atlas. The atlas recreates the history of drought over the previous 2,005 years, based on hundreds of tree-ring chronologies, gleaned in turn from tens of thousands of tree samples across the United States, Mexico and parts of Canada.

For the current study, researchers used data from the atlas to represent past climate, and applied three different measures for drought—two soil moisture measurements at varying depths, and a version of the Palmer Drought Severity Index, which gauges precipitation and evaporation and transpiration—the net input of water into the land. While some have questioned how accurately the Palmer drought index truly reflects soil moisture, the researchers found it matched well with other measures, and that it “provides a bridge between the [climate] models and drought in observations,” Cook said.

The researchers applied 17 different climate models to analyze the future impact of rising average temperatures on the regions. And, they compared two different global warming scenarios—one with “business as usual,” projecting a continued rise in emissions of the greenhouse gases that contribute to global warming; and a second scenario in which emissions are moderated.

By most of those measures, they came to the same conclusions.

“The results … are extremely unfavorable for the continuation of agricultural and water resource management as they are currently practiced in the Great Plains and southwestern United States,” said David Stahle, professor in the Department of Geosciences at the University of Arkansas and director of the Tree-Ring Laboratory there. Stahle was not involved in the study, though he worked on the North American Drought Atlas.

Smerdon said he and his colleagues are confident in their results. The effects of CO2 on higher average temperature and the subsequent connection to drying in the Southwest and Great Plains emerge as a “strong signal” across the majority of the models, regardless of the drought metrics that are used, he said. And, he added, they are consistent with many previous studies.

Anchukaitis said the paper “provides an elegant and convincing connection” between reconstructions of past climate and the models pointing to the risk of future drought.

Toby R. Ault of Cornell University is a co-author of the study. Funding was provided by the NASA Modeling, Analysis and Prediction Program, NASA Strategic Science, and the U.S. National Science Foundation.

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High Risk Investment That Brought Down The U.S. Economy Returns, With A New Name

Tuesday, February 10th, 2015

When a restaurant fails a health code inspection, sometimes the easiest thing to do is to close up shop, let people forget what happened, then slap a new sign on the door and reopen under a new name. That’s essentially what the world’s biggest banks are doing with a complex, high-risk investment product that helped destroy the global economy less than eight years ago.

Goodbye, “collateralized debt obligations.” Hello, “bespoke tranche opportunities.” Banks including Goldman Sachs are marketing that newfangled product, according to Bloomberg, and total sales of “bespoke tranche opportunities” leaped from under $5 billion in 2013 to $20 billion last year.

Like other derivatives, these “BTOs” allow investors to place wagers on the outcome of various loans, bonds, and securities in which they are not directly invested. Hedge funds and other sophisticated financial industry actors use derivatives both as a form of insurance to manage the total risk they are exposed to across their whole investment portfolio, and to gamble on real-world economic events such as mortgage payments, municipal bonds, and the price of physical commodities. The resulting web of complicated contracts can be very difficult to untangle, and can involve impossible-sounding amounts of money. The Financial Crisis Inquiry Commission concluded that derivatives “were at the center of the storm” and “amplified the losses from the collapse of the housing bubble by allowing multiple bets on the same securities.” In 2010, the total on-paper value of every derivative contract worldwide was $1.4 quadrillion, or 23 times the total economic output of the entire planet.

Collateralized debt obligations (CDOs) are a form of derivative that breaks one pool of financial assets — either direct loans or securities that are based on groups of loans — into multiple layers of riskiness. Those layers care called tranches, and investors who buy the least-risky tranche of the derivative will get paid before those who buy the second tranche, and so on. Banks selling traditional CDOs had to create these multiple risk tranches based on a given set of loans or securities, and then hope that someone would buy each of them.

The new “bespoke” version of the idea flips that business dynamic around. An investor tells a bank what specific mixture of derivatives bets it wants to make, and the bank builds a customized product with just one tranche that meets the investor’s needs. Like a bespoke suit, the products are tailored to fit precisely, and only one copy is ever produced. The new products are a symptom of the larger phenomenon of banks taking complex risks in pursuit of higher investment returns, Americans for Financial Reform’s Marcus Stanley said in an email, and BTOs “could be automatically exempt” from some Dodd-Frank rules.

This is not the first time that large banks have tried to reboot the CDO machine since the financial crisis made those products a much-reviled household name. In early 2013, JP Morgan Chase and Morgan Stanley tried and failed to find buyers for a new set of CDOs. The nature of that failure helps illuminate the rationale behind the new version of the product. Finding buyers for the various different layers of risk was “like trying to line up boxcars,” one investor told the Financial Times after the 2013 reboot effort fizzled. Many of the firms that used to buy such products prior to the crisis “no longer exist, and those that survive have very bad memories” of the experience, another analyst said.

Since then, those same old characters seem to have found a way to get back into the business. In addition to Goldman, which narrowly avoided criminal chargesafter a Senate investigation revealed its shady pre-crisis mortgage dealings, sellers of “bespoke tranche obligations” now include Citigroup and the french banking giant BNP Paribas. BNP’s recent notoriety doesn’t relate to the financial crisis, but rather to the bank’s violation of various U.S. sanctions against Iran, Cuba, and Sudan. And while Citigroup’s past leadership now says financial deregulation was a mistake and that megabanks like Citi should be broken up to protect the economy, its current leadership is chipping away at key Dodd-Frank reforms. Citi was also heavily involved in the “robosigning” scandal that lead to hundreds of thousands or even millions of unjust foreclosures.

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No, climate models aren’t exaggerating global warming

Tuesday, February 10th, 2015

Weather and climate agencies around the world have been almost unanimous in declaring 2014 the hottest year on record — something that has promoted considerable chagrin among climate change doubters. That’s because these “skeptics” have long sought to cast doubt on man-made global warming by pointing to an alleged global warming “pause” or “slowdown” — going on to suggest that the computerized climate models that scientists use to project future temperatures are flawed, and overestimate carbon dioxide’s warming effect.

So, is that true? Do the models consistently overestimate the warming effects of greenhouse gases like CO2?

As a recent study suggests, the answer is no. While many models didn’t predict the relatively modest surface-warming “hiatus,” it’s not because they’re biased in favor of greenhouse-gas emissions’ warming effects. Rather, researchers report in Nature, these computer simulations just struggle to predict “chaotic” (or random) short-term changes in the climate system that can temporarily add or subtract from CO2 emissions’ warming effects.

It’s true that air temperatures have increased slower in the past 15 years or so, and climate models on average instead predicted much more warming. And scientists are slowly beginning to figure out why temperatures didn’t rise quite as much as expected.

One probable contributor is pure natural variability: Cyclical processes in the Earth’s climate and temporary changes in the amount of solar radiation that reach the Earth’s surface can introduce “blips” into the Earth’s warming trend. Right now, oceans may be temporarily sucking up more heat from the atmosphere than they normally do. Moreover, a temporary downturn in solar output and an increase in light-reflecting aerosol pollution (acting like a chemical sunblock of sorts) could also have partially masked CO2-driven warming.

But researchers Jochem Marotzke of the Max Planck Institute of Meteorology and Piers M. Forster of the University of Leeds also wanted to check whether climate models are biased, by testing how their temperature predictions stack up against reality. So the researchers tested how 114 model simulations that underpin last year’s assessment report of the U.N. Intergovernmental Panel on Climate Change (IPCC) performed — not just for the 15-year period from 1998-2012 but for all 15-year periods stretching back to 1900. If this analysis were to show that models consistently overestimated or underestimated the amount of warming that actually occurred, then they must have some sort of systematic bias.

As it turns out, however, the models did pretty well. In each 15-year period, the model simulations produced a range of predictions. But each 15-year interval’s actual temperature trend always fell somewhere in the models’ prediction range. Moreover, even when 15-year actual temperature trends did fall toward the edges of the corresponding predicted ranges, they weren’t consistently at the higher or lower edges. Basically, when the models were missing the mark, they weren’t doing so consistently in one direction.

So, it’s true that the IPCC model runs didn’t predict the recent warming slowdown. But as these findings show, they didn’t accurately predict certain other 15-year periods of warming accelerations or slowdowns in the past either, and it’s not because they were always overestimating warming. Indeed, in some 15-year periods, the models underestimated warming. Essentially, that means climate skeptics are cherry-picking when they point out that climate models didn’t predict the recent 15-year hiatus.

That doesn’t entirely explain why the model simulations in a given year produced varying results to begin with, though. Was it due to differences in the underlying physics coded into the models? (The models differ slightly in terms of how much light they assume hits the Earth, how “sensitive” temperatures are to changes in CO2, and how much heat the oceans suck up.) Or was it just random fluctuations in the climate system? Or a combination? The researchers did a statistical analysis to answer that question.

In the end, none of those physical reasons was a major factor. Random fluctuations had 2.5 times the impact on the model predictions’ variations as all those physical factors together did, the researchers found. Only when the researchers used longer-term intervals (of more than 60 years) did differences in sunlight amount, ocean heat trapping or climate sensitivity start to make a big difference.

So climate models may not provide the perfect picture of what will happen to temperatures in a given short-term period (on 10- or 20-year scales). But maybe they simply can’t, due to the random ways in which climate can temporarily fluctuate. That doesn’t mean that climate models aren’t valuable to us. They still give us good sense of the long-term picture, the one that is more important for us to worry about anyway: that temperatures are increasing, and that natural factors can’t explain this increase.

As the researchers argue, then, their findings ought to put to rest assertions by climate “skeptics” that climate models overestimate how much warming we’re going to get.

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The Davos oligarchs are right to fear the world they’ve made

Tuesday, January 27th, 2015

Escalating inequality is the work of a global elite that will resist every challenge to its vested interests

The billionaires and corporate oligarchs meeting in Davos this week are getting worried about inequality. It might be hard to stomach that the overlords of a system that has delivered the widest global economic gulf in human history should be handwringing about the consequences of their own actions.

But even the architects of the crisis-ridden international economic order are starting to see the dangers. It’s not just the maverick hedge-funder George Soros, who likes to describe himself as a class traitor. Paul Polman, Unilever chief executive, frets about the “capitalist threat to capitalism”. Christine Lagarde, the IMF managing director, fears capitalism might indeed carry Marx’s “seeds of its own destruction” and warns that something needs to be done.

The scale of the crisis has been laid out for them by the charity Oxfam. Just 80 individuals now have the same net wealth as 3.5 billion people – half the entire global population. Last year, the best-off 1% owned 48% of the world’s wealth, up from 44% five years ago. On current trends, the richest 1% will have pocketed more than the other 99% put together next year. The 0.1% have been doing even better, quadrupling their share of US income since the 1980s.

This is a wealth grab on a grotesque scale. For 30 years, under the rule of what Mark Carney, the Bank of England governor, calls “market fundamentalism”, inequality in income and wealth has ballooned, both between and within the large majority of countries. In Africa, the absolute number living on less than $2 a day has doubled since 1981 as the rollcall of billionaires has swelled.

In most of the world, labour’s share of national income has fallen continuously and wages have stagnated under this regime of privatisation, deregulation and low taxes on the rich. At the same time finance has sucked wealth from the public realm into the hands of a small minority, even as it has laid waste the rest of the economy. Now the evidence has piled up that not only is such appropriation of wealth a moral and social outrage, but it is fuelling social and climate conflict, wars, mass migration and political corruption, stunting health and life chances, increasing poverty, and widening gender and ethnic divides.

Escalating inequality has also been a crucial factor in the economic crisis of the past seven years, squeezing demand and fuelling the credit boom. We don’t just know that from the research of the French economist Thomas Piketty or the British authors of the social study The Spirit Level. After years of promoting Washington orthodoxy, even the western-dominated OECD and IMF argue that the widening income and wealth gap has been key to the slow growth of the past two neoliberal decades. The British economy would have been almost 10% larger if inequality hadn’t mushroomed. Now the richest are using austerity to help themselves to an even larger share of the cake.

The big exception to the tide of inequality in recent years has been Latin America. Progressive governments across the region turned their back on a disastrous economic model, took back resources from corporate control and slashed inequality. The numbers living on less than $2 a day have fallen from 108 million to 53 million in little over a decade. China, which also rejected much of the neoliberal catechism, has seen sharply rising inequality at home but also lifted more people out of poverty than the rest of the world combined, offsetting the growing global income gap.

These two cases underline that increasing inequality and poverty are very far from inevitable. They’re the result of political and economic decisions. The thinking person’s Davos oligarch realises that allowing things to carry on as they are is dangerous. So some want a more “inclusive capitalism” – including more progressive taxes – to save the system from itself.

But it certainly won’t come about as a result of Swiss mountain musings or anxious Guildhall lunches. Whatever the feelings of some corporate barons, vested corporate and elite interests – including the organisations they run and the political structures they have colonised – have shown they will fight even modest reforms tooth and nail. To get the idea, you only have to listen to the squeals of protest, including from some in his own party, at Ed Miliband’s plans to tax homes worth over £2m to fund the health service, or the demand from the one-time reformist Fabian Society that the Labour leader be more pro-business (for which read pro-corporate), or the wall of congressional resistance to Barack Obama’s mild redistributive taxation proposals.

Perhaps a section of the worried elite might be prepared to pay a bit more tax. What they won’t accept is any change in the balance of social power – which is why, in one country after another, they resist any attempt to strengthen trade unions, even though weaker unions have been a crucial factor in the rise of inequality in the industrialised world.

It’s only through a challenge to the entrenched interests that have dined off a dysfunctional economic order that the tide of inequality will be reversed. The anti-austerity Syriza party, favourite to win the Greek elections this weekend, is attempting to do just that – as the Latin American left has succeeded in doing over the past decade and a half. Even to get to that point demands stronger social and political movements to break down or bypass the blockage in a colonised political mainstream. Crocodile tears about inequality are a symptom of a fearful elite. But change will only come from unrelenting social pressure and political challenge.

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As inequality soars, the nervous super rich are already planning their escapes

Monday, January 26th, 2015

Hedge fund managers are preparing getaways by buying airstrips and farms in remote areas, former hedge fund partner tells Davos during session on inequality

With growing inequality and the civil unrest from Ferguson and the Occupy protests fresh in people’s mind, the world’s super rich are already preparing for the consequences. At a packed session in Davos, former hedge fund director Robert Johnson revealed that worried hedge fund managers were already planning their escapes. “I know hedge fund managers all over the world who are buying airstrips and farms in places like New Zealand because they think they need a getaway,” he said.

Johnson, who heads the Institute of New Economic Thinking and was previously managing director at Soros, said societies can tolerate income inequality if the income floor is high enough. But with an existing system encouraging chief executives to take decisions solely on their profitability, even in the richest countries inequality is increasing.

Johnson added: “People need to know there are possibilities for their children – that they will have the same opportunity as anyone else. There is a wicked feedback loop. Politicians who get more money tend to use it to get more even money.”

Global warming and social media are among the trends the 600 super-smart World Economic Forum staffers told its members to watch out for long before they became ubiquitous. This year, income inequality is fast moving up the Davos agenda – a sure sign of it is poised to burst into the public consciousness.

Jim Wallis, founder of Sojourners and a Davos star attraction after giving the closing address in 2014, said he had spent a lot of time learning from the leaders behind recent social unrest in Ferguson. He believes that will prove “a catalytic event” which has already changed the conversation in the US, bringing a message from those who previously “didn’t matter”.

So what is the solution to having the new voices being sufficiently recognised to actually change the status quo into one where those with power realise they do matter?

Clarke said: “Solutions are there. What’s been lacking is political will. Politicians do not respond to those who don’t have a voice In the end this is all about redistributing income and power.”

She added: “Seventy five percent of people in developing countries live in places that are less equal than they were in 1990.”

The panellists were scathing about politicians, Wallis describing them as people who held up wet fingers “to see which way the money is blowing in from.”

Author, philosopher and former academic Rebecca Newberger-Goldstein saw the glass half full, drawing on history to prove society does eventually change for the better. She said Martin Luther King was correct in his view that the arch of history might be long, but it bends towards justice.

In ancient Greece, she noted, even the greatest moralists like Plato and Aristotle never criticised slavery. Newberger-Goldstein said: “We’ve come a long way as a species. The truth is now dawning that everybody matters because the concept of mattering is at the core of every human being.” Knowing you matter, she added, is often as simple as having others “acknowledge the pathos and reality of your stories. To listen.”

Mexican micro-lending entrepreneur Carlos Danel expanded on the theme. His business, Gentera, has thrived by working out that “those excluded are not the problem but realising there’s an opportunity to serve them.”

He added: “Technology provides advantages that can lower costs and enable us to provide products and services that matter to the people who don’t seem to matter to society. And that’s beyond financial services – into education and elsewhere.”

Which, Danel believes, is why business was created in the first place – to serve. A message that seemed to get lost somewhere in the worship of profit.

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– Research thanks to Kierin M.

‘It is profitable to let the world go to hell’

Thursday, January 22nd, 2015

As politicians and business leaders gather in Davos, climate expert Jørgen Randers argues that democracy will continue to hamper climate action

How depressed would you be if you had spent more than 40 years warning of an impending global catastrophe, only to be continually ignored even as you watch the disaster unfolding?

So spare a thought for Jørgen Randers, who back in 1972 co-authored the seminal work Limits to Growth (pdf), which highlighted the devastating impacts of exponential economic and population growth on a planet with finite resources.

As politicians and business leaders gather in Davos to look at ways to breathe new life into the global battle to address climate change, they would do well to listen to Randers’ sobering perspective.

The professor of climate strategy at the Norwegian Business School has been pretty close to giving up his struggle to wake us up to our unsustainable ways, and in 2004 published a pessimistic update of his 1972 report showing the predictions made at the time are turning out to be largely accurate.

What he cannot bear is how politicians of all persuasions have failed to act even as the scientific evidence of climate change mounts up, and as a result he has largely lost faith in the democratic process to handle complex issues.

In a newly published paper in the Swedish magazine Extrakt he writes:

It is cost-effective to postpone global climate action. It is profitable to let the world go to hell.

I believe that the tyranny of the short term will prevail over the decades to come. As a result, a number of long-term problems will not be solved, even if they could have been, and even as they cause gradually increasing difficulties for all voters.

Randers says the reason for inaction is that there will be little observable benefit during the first 20 years of any fiscal sacrifice, even though tougher regulations and taxes will guarantee a better climate for our children and grandchildren.

He has personal experience of this, having chaired a commission in Norway that in 2006 came up with a 15-point plan to solve the climate problem if every Norwegian was willing to pay €250 (£191) in extra taxes every year for the next generation or so.

If the plan had been given the green light, it would have allowed the country to cut its greenhouse gas emissions by two-thirds by 2050 and provide a case study other rich countries could learn from.

He says:

In my mind, the cost was ridiculously low, equivalent to an increase in income taxes from 36% to 37%, given that this plan would eliminate the most serious threat to the rich world in this century.

In spite of this, a vast majority of Norwegians were against this sacrifice. To be frank, most voters preferred to use the money for other causes – like yet another weekend trip to London or Sweden for shopping.

When it comes to more regulation or higher taxes, Randers says voters tend to revolt and, as a result, politicians will continue to refuse to take courageous steps for fear of being thrown out of office at the next election.

“The capitalist system does not help,” says Randers. “Capitalism is carefully designed to allocate capital to the most profitable projects. And this is exactly what we don’t need today.

– More:

– research thanks to Kael L.