Archive for the ‘The Perfect Storm’ Category

New Blogroll entries

Tuesday, December 16th, 2008

For those of you who might occasionally take a look at the other Blogs and Websites I like and recommend, you should be aware that I’ve added two new ones to my Blogroll today.

The first is The Automatic Earth which is written by Stoneleigh and Ilargi.   They describe their site as, “…a daily overview of Debt, Diesel and Dämmerung“.   Dämmerung being the German word for twilight.   An interesting combination.   This site I added based on how impressed I was with an entry I found on their site that I Blogged about earlier here.  It was excellent piece and I’m thinking that where there is smoke, there’s likely to be fire.

And the second is Canadian Paul Cherfurka’s Blog which he entitle’s “Approaching the Limits to Growth“. I could try here to say a lot of nice things about Paul’s thinking and his approach the what I call The Perfect Storm but there’s no need. If you follow the link to his Blog, he’ll lay it all out for you on the opening page. If you’re not hooked after that, you never will be.

– Research thanks to Kael for connecting me to both of these fine sites.

Thinking about a thousand-year depression

Tuesday, December 16th, 2008

– An excellent piece from The Automatic Earth; a Blog I’ve just started following.

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Cyclical terms like “recession” and “depression” are looking less appropriate by the day. It’s like calling the period between the fall of Rome and the Renaissance a “depression”.

I know the our situation is vastly different from the state of the world in Roman times, but the idea that we could be on the brink of a fundamental reset of civilization is intriguing, to say the least.

I’ve been convinced for several years that we are looking at the convergence of a set of wicked interlocking global problems — ecological problems (climate chaos, the death of the oceans, fresh water shortages etc.), energy shortages due to fossil fuel depletion, and overpopulation with the resulting pressure on the global food supply. This convergence is happening under the umbrella of the current global financial collapse that constrains our ability to respond to any of these problems individually, let alone any further problems that might emerge from interactions between them.

This unfortunate collision makes the future of our civilization very murky indeed. Writers like James Howard Kunstler, John Michael Greer, Carolyn Baker and Sharon Astyk (along with people like Stoneleigh and Ilargi at The Automatic Earth) have been warning about the possibility of a generalized, unrecoverable collapse of modern civilization for a while now. They have generally been derided by the mainstream as millennialist prophets of doom — driven more by their own subconscious fears and dark desires, their research full of confirmation bias.

The events unfolding around us now, however, cast their optimistic mainstream critics in a somewhat different light. None of them — even the Roubinis and Krugmans – have fully appreciated the severity of the world’s financial predicament. Their comforting bromides (and even their more pessimistic utterances) have been overwhelmed by events on a weekly basis. It has become clear that for all their careful analysis of trunks and tails, nobody truly understood the shape of the entire elephant.

This evident failure of comprehension brings their entire analysis into disrepute. And that should make us ask – if they failed to comprehend the underpinnings of a calamity in their own domain, what does that say about the possibility that they also failed to understand the dangers being trumpeted by the doomers they have derided?

After all, we are seeing the same outcome in the climate crisis as in the financial one – the trends are uniformly negative, and are unfolding much faster than the professionals in either field predicted. There are new signs from world bodies like the International Energy Agency that the same situation is developing with respect to the world’s oil supply – the more pessimistic members of the Peak Oil crowd appear to be heading for vindication.

So, following a “major, rapid contraction” (aka collapse), could our civilization end up staying on the mat, unable to rise from the ashes of our former glory? That’s unknowable of course, but hardly inconceivable. Several factors give that speculation some foundation.

The first confounding factor is the spectre of irreversible climate change. That could irreparably damage the world’s food production capacity through shifts in rainfall and the reduction of snow and glacial cover that supplies much of the world’s fresh water for agriculture.

The second factor is the permanent depletion of the compact, high-density, transportable energy supply represented by fossil fuels. We’re putting a lot of effort into developing electrical alternatives, of course. There are two major challenges in the way, though. The first is the relative infancy of the industry, and the fact that it will require both capital and fossil fuels to enable its continued growth. The second longer term problem is that the use of electricity requires a higher level of technology in the infrastructure needed to manufacture, distribute, store and convert it into work. This may not seem like much of a a problem today, but if our global industrial civilization goes into a decline, growing parts of the world may find the maintenance of such infrastructure increasingly difficult.

A third factor that may get in the way of recovery is the depletion of easily-recoverable resources such as metals. The decline in the average quality of various ores being mined today is well documented, and is likely to continue. While recycling can recover much of the metal currently discarded as waste, recycling facilities capable of producing enough output to feed our civilization’s needs do not yet exist. They would face the same hurdles as the build-out of electrical supplies I described above.

You might think that such a situation will take so long to develop that we will be able to address the situation before it gets quite that dire.

One consideration that works against that hope is that human beings are not, for all their cleverness, fully rational creatures. Research has shown that most of our “rational” decisions are made at a deeply unconscious level, to be dressed up with rational justifications only upon their emergence into the conscious mind some time later. The truth of this proposition can be seen all around us in the competition between environmental remediation and economic imperatives, in the obstruction of alternative energy development, in our repeated creation of financial bubbles — in all the myriad ways in which we as a society work tirelessly against our own best interests as individuals and as a species.

Even worse, events have recently shown a terrifying ability to outstrip our expectations, in both speed and severity. We may not have nearly as much time left as we think. A lack of time coupled with an inability to respond rationally (or even to accept the evidence of our eyes) does not bode well for the future of this civilization.

It’s conceivable that our current civilization will never regain its feet after this storm has burst upon us. We will endure as a species no matter what happens, of course, and it’s even probable that we will rise to new heights. It’s also quite possible that the rebirth of this Phoenix will take a long, long time and that those new heights will be unrecognizable to someone raised in today’s world of 401(k)’s, Credit Default Swaps, automobiles and gigantic concrete cities.

– To the original:

– Research thanks to Kael for this.

Top investors ‘hit by $50bn con’

Saturday, December 13th, 2008

Zowie!Some of the world’s wealthiest private and corporate investors are reported to be victims of an alleged $50bn fraud by Wall Street broker Bernard Madoff.

Mr Madoff is alleged to have confessed to a huge Ponzi scheme (pyramid fraud).

Reports say the main owner of the New York Mets baseball team, Fred Wilpon, and former American football team owner Norman Braman are among the victims.

Others facing losses reportedly include French bank BNP Paribas, Japan’s Nomura Holdings and Zurich’s Neue Privat Bank.

Prosecutors say Mr Madoff, ex-head of the Nasdaq stock market, has described the fraud as “one big lie”.

A federal judge has appointed a receiver to oversee Mr Madoff firm’s assets and customer accounts, while the 70-year-old banker has been released on $10m bail.

More…

– do you want more of this same stuff, Sweetpea? Look no farther. Just follow this next link for another fine story of financial integrity.

And more…

– This second article is from the NY Times and they insist that folks have an ID and a PW in order to read their stuff. You can get these for free just by signing up. However, a friend of mine suggests the website bugmenot.com :arrow: as an alternative to having to do these annoying sign ups. Check it out. Thx Bruce S. for the tip.

* Environment * Food Qatar looks to grow food in Kenya

Sunday, December 7th, 2008

I wrote about this back in September.   This is a new trend and I believe it will become a new form of economic colonialism.

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The Gulf state has joined a growing list of rich countries that want to grow food in poor countries

Qatar has asked Kenya to lease it 40,000 hectares of land to grow crops as part of a proposed package that would also see the Gulf state fund a new £2.4bn port on the popular tourist island of Lamu off the east African country.

The deal is the latest example of wealthy countries and companies trying to secure food supplies from the developing world.

Other Gulf states, including Saudi Arabia and the United Arab Emirates, have also been negotiating leases of large tracts of farmland in countries such as Sudan and Senegal since the global food shortages and price rises earlier this year.

The Kenyan president, Mwai Kibaki, returned from a visit to Qatar on Monday. His spokesman said the request for land in the Tana river delta, south of Lamu, in north-east Kenya was being seriously considered.

“Nothing comes for free,” said Isaiah Kabira. “If you want people to invest in your country then you have to make concessions.”

But the deal is likely to cause concern in Kenya where fertile land is unequally distributed. Several prominent political families own huge tracts of farmland, while millions of people live in densely packed slums.

More…

– Hat tip to Cryptogon for the story

On Gay Marriage

Sunday, December 7th, 2008

– I’ve been blessed during most of my adult life in having gay friends. Their strong presence in my life has helped to desensitize me to that nascent homophobia that was an inevitable part of my growing up in a blue-collar neighborhood in the 50’s and 60’s.

– Their attractions towards members of their own sex and their practices in the bedroom may be different than mine, but I simply don’t care. They respect my practices and feelings just as I do theirs. How else in an enlightened world should it be?

– Some of us (both gays and straights) have discussed this topic a lot in recent weeks with a special emphasis on California’s recent vote on Proposition 8.

– Undeniably, prejudices still run deep here in our American society. But, progress is being made – albeit, over decades. Women’s rights have improved much as has racial equality though there is still a ways to go on both. But, thus far, gay rights have been trailing behind.

– These situations are generally deplored in polite civic conversations and essays but silently condoned in far too many private hearts. I, for one, think we should each speak our minds on these things publicly and let those who are timid and on the fence, as to what they believe, see that there are many of us willing to speak up.

– As a white heterosexual male, I don’t, as they say, have a dog in this fight. But that’s all the more reason to speak up. We should not, in good conscious, leave the work of struggling for social improvement to those who are oppressed.

– So, dear readers, be clear then. I support full equality for women, all racial groups and for gays. It may not be the world we live in today, God help us, but it is what the better world of the future should look like.

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Our Mutual Joy

– from Newsweek Magazine – Dec 6, 2008

Opponents of gay marriage often cite Scripture. But what the Bible teaches about love argues for the other side.

Let’s try for a minute to take the religious conservatives at their word and define marriage as the Bible does. Shall we look to Abraham, the great patriarch, who slept with his servant when he discovered his beloved wife Sarah was infertile? Or to Jacob, who fathered children with four different women (two sisters and their servants)? Abraham, Jacob, David, Solomon and the kings of Judah and Israel—all these fathers and heroes were polygamists. The New Testament model of marriage is hardly better. Jesus himself was single and preached an indifference to earthly attachments—especially family. The apostle Paul (also single) regarded marriage as an act of last resort for those unable to contain their animal lust. “It is better to marry than to burn with passion,” says the apostle, in one of the most lukewarm endorsements of a treasured institution ever uttered. Would any contemporary heterosexual married couple—who likely woke up on their wedding day harboring some optimistic and newfangled ideas about gender equality and romantic love—turn to the Bible as a how-to script?

Of course not, yet the religious opponents of gay marriage would have it be so.

The battle over gay marriage has been waged for more than a decade, but within the last six months—since California legalized gay marriage and then, with a ballot initiative in November, amended its Constitution to prohibit it—the debate has grown into a full-scale war, with religious-rhetoric slinging to match. Not since 1860, when the country’s pulpits were full of preachers pronouncing on slavery, pro and con, has one of our basic social (and economic) institutions been so subject to biblical scrutiny. But whereas in the Civil War the traditionalists had their James Henley Thornwell—and the advocates for change, their Henry Ward Beecher—this time the sides are unevenly matched. All the religious rhetoric, it seems, has been on the side of the gay-marriage opponents, who use Scripture as the foundation for their objections.

The argument goes something like this statement, which the Rev. Richard A. Hunter, a United Methodist minister, gave to the Atlanta Journal-Constitution in June: “The Bible and Jesus define marriage as between one man and one woman. The church cannot condone or bless same-sex marriages because this stands in opposition to Scripture and our tradition.”

To which there are two obvious responses: First, while the Bible and Jesus say many important things about love and family, neither explicitly defines marriage as between one man and one woman. And second, as the examples above illustrate, no sensible modern person wants marriage—theirs or anyone else’s —to look in its particulars anything like what the Bible describes. “Marriage” in America refers to two separate things, a religious institution and a civil one, though it is most often enacted as a messy conflation of the two. As a civil institution, marriage offers practical benefits to both partners: contractual rights having to do with taxes; insurance; the care and custody of children; visitation rights; and inheritance. As a religious institution, marriage offers something else: a commitment of both partners before God to love, honor and cherish each other—in sickness and in health, for richer and poorer—in accordance with God’s will. In a religious marriage, two people promise to take care of each other, profoundly, the way they believe God cares for them. Biblical literalists will disagree, but the Bible is a living document, powerful for more than 2,000 years because its truths speak to us even as we change through history. In that light, Scripture gives us no good reason why gays and lesbians should not be (civilly and religiously) married—and a number of excellent reasons why they should.

More…

– Research thanks to John P.

FHA-Backed Loans: The New Subprime

Thursday, December 4th, 2008

– So, are you hopeful that we’ll pull out of the economic crisis we’re in? Hopeful that we’ve seen where the problems lie? And that while it may still take us awhile to dig our way out from under them, we eventually will?

– Is that what you think, Sweetpea? Well, read on – you’ve got news incoming.

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The same people whose reckless practices triggered the global financial crisis are onto a similar scheme that could cost taxpayers tons more

As if they haven’t done enough damage. Thousands of subprime mortgage lenders and brokers—many of them the very sorts of firms that helped create the current financial crisis—are going strong. Their new strategy: taking advantage of a long-standing federal program designed to encourage homeownership by insuring mortgages for buyers of modest means.

You read that correctly. Some of the same people who propelled us toward the housing market calamity are now seeking to profit by exploiting billions in federally insured mortgages, securing their initial leads through short-term loans online. Washington, meanwhile, has vastly expanded the availability of such taxpayer-backed loans as part of the emergency campaign to rescue the country’s swooning economy.

For generations, these loans, backed by the Federal Housing Administration, have offered working-class families a legitimate means to purchase their own homes. But now there’s a severe danger that aggressive lenders and brokers schooled in the rash ways of the subprime industry will overwhelm the FHA with loans for people unlikely to make their payments. Exacerbating matters, FHA officials seem oblivious to what’s happening—or incapable of stopping it. They’re giving mortgage firms licenses to dole out 100%-insured loans despite lender records blotted by state sanctions, bankruptcy filings, civil lawsuits, and even criminal convictions.

More Bad Debt

As a result, the nation could soon suffer a fresh wave of defaults and foreclosures, with Washington obliged to respond with yet another gargantuan bailout. Inside Mortgage Finance, a research and newsletter firm in Bethesda, Md., estimates that over the next five years fresh loans backed by the FHA that go sour will cost taxpayers $100 billion or more. That’s on top of the $700 billion financial-system rescue Congress has already approved. Gary E. Lacefield, a former federal mortgage investigator who now runs Risk Mitigation Group, a consultancy in Arlington, Tex., predicts: “Within the next 12 to 18 months, there is going to be FHA-insurance Armageddon.”

The resilient entrepreneurs who populate this dubious field are often obscure, but not puny. Jerry Cugno started Premier Mortgage Funding in Clearwater, on the Gulf Coast of Florida, in 2002. Over the next four years, it became one of the country’s largest subprime lenders, with 750 branches and 5,000 brokers across the U.S. Cugno, now 59, took home millions of dollars and rewarded top salesmen with Caribbean cruises and shiny Hummers, according to court records and interviews with former employees. But along the way, Premier accumulated a dismal regulatory record. Five states—Florida, Georgia, North Carolina, Ohio, and Wisconsin—revoked its license for various abuses; four others disciplined the company for using unlicensed brokers or similar violations. The crash of the subprime market and a barrage of lawsuits prompted Premier to file for U.S. bankruptcy court protection in Tampa in July 2007. Then, in March, a Premier unit in Cleveland and its manager pleaded guilty to felony charges related to fraudulent mortgage schemes.

More…

– research thanks to Fitz

The Minimal Impact of a Big Hypertension Study

Sunday, November 30th, 2008

– I take a blood pressure medicine because my doctor told me that even though I only have borderline high blood pressure, I’ll probably live a bit longer if I take this stuff.   OK, makes sense to me.   I take Diovan and it is fairly expensive stuff.   Well, this article makes the point that Big Pharma has been stacking the deck for years to keep us buying their expensive solutions when there are much cheaper alternatives out there.  

– Corporations and their profit motives – enough already!

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The surprising news made headlines in December 2002. Generic pills for high blood pressure, which had been in use since the 1950s and cost only pennies a day, worked better than newer drugs that were up to 20 times as expensive.

The findings, from one of the biggest clinical trials ever organized by the federal government, promised to save the nation billions of dollars in treating the tens of millions of Americans with hypertension — even if the conclusions did seem to threaten pharmaceutical giants like Pfizer that were making big money on blockbuster hypertension drugs.

Six years later, though, the use of the inexpensive pills, called diuretics, is far smaller than some of the trial’s organizers had hoped.

“It should have more than doubled,” said Dr. Curt D. Furberg, a public health sciences professor at Wake Forest University who was the first chairman of the steering committee for the study, which was known by the acronym Allhat. “The impact was disappointing.”

The percentage of hypertension patients receiving a diuretic rose to around 40 percent in the year after the Allhat results were announced, up from 30 to 35 percent beforehand, according to some studies. But use of diuretics has since stayed at that plateau. And over all, use of newer hypertension drugs has grown faster than the use of diuretics since 2002, according to Medco Health Solutions, a pharmacy benefits manager.

The Allhat experience is worth remembering now, as some policy experts and government officials call for more such studies to directly compare drugs or other treatments, as a way to stem runaway medical costs and improve care.

The aftereffects of the study show how hard it is to change medical practice, even after a government-sanctioned trial costing $130 million produced what appeared to be solid evidence.

More…

– This article is from the NY Times and they insist that folks have an ID and a PW in order to read their stuff. You can get these for free just by signing up. However, a friend of mine suggests the website bugmenot.com :arrow: as an alternative to having to do these annoying sign ups. Check it out. Thx Bruce S. for the tip.

1st commercial ship sails through Northwest Passage

Sunday, November 30th, 2008

– Humanity has attempted to traverse across the top of Canada and Alaska via the Northwest Passage for hundreds of years and many men lost their lives in the attempts until is was first successfully done in 1906.   The ice has always made it nearly impossible – until Global Climate Change.  

– Folks down in the more temperate climes may think Global Climate Change is just a rumor.   But, up in the far north, it is anything but.   And it’ll be coming to your neighborhood soon as well.

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The Canadian Coast Guard has confirmed that in a major first, a commercial ship travelled through the Northwest Passage this fall to deliver supplies to communities in western Nunavut.

The MV Camilla Desgagnés, owned by Desgagnés Transarctik Inc., transported cargo from Montreal to the hamlets of Cambridge Bay, Kugluktuk, Gjoa Haven and Taloyoak in September.

“We did have a commercial cargo vessel that did the first scheduled run from Montreal, up through the eastern Arctic, through the Northwest Passage to deliver cargo to communities in the west,” Brian LeBlanc of the Canadian Coast Guard told CBC News.

“That was the first — that I’m aware of anyway — commercial cargo delivery from the east through the Northwest Passage.”

More…

One Shot Left

Friday, November 28th, 2008

The latest science suggests that preventing runaway climate change means total decarbonisation.

By George Monbiot. Published in the Guardian 25th November 2008

George Bush is behaving like a furious defaulter whose home is about to be repossessed. Smashing the porcelain, ripping the doors off their hinges, he is determined that there will be nothing worth owning by the time the bastards kick him out. His midnight regulations, opening America’s wilderness to logging and mining, trashing pollution controls, tearing up conservation laws, will do almost as much damage in the last 60 days of his presidency as he achieved in the foregoing 3000(1).

His backers – among them the nastiest pollutocrats in America – are calling in their favours. But this last binge of vandalism is also the Bush presidency reduced to its essentials. Destruction is not an accidental product of its ideology. Destruction is the ideology. Neoconservatism is power expressed by showing that you can reduce any part of the world to rubble.

If it is now too late to prevent runaway climate change, the Bush team must carry much of the blame. His wilful trashing of the Middle Climate – the interlude of benign temperatures which allowed human civilisation to flourish – makes the mass murder he engineered in Iraq only the second of his crimes against humanity. Bush has waged his war on science with the same obtuse determination with which he has waged his war on terror.

Is it too late? To say so is to make it true. To suggest that there is nothing that can now be done is to ensure that nothing is done. But even a resolute optimist like me finds hope ever harder to summon. A new summary of the science published since last year’s Intergovernmental Panel report suggests that – almost a century ahead of schedule – the critical climate processes might have begun(2).

Just a year ago the Intergovernmental Panel warned that the Arctic’s “late-summer sea ice is projected to disappear almost completely towards the end of the 21st century … in some models.”(3) But, as the new report by the Public Interest Research Centre (PIRC) shows, climate scientists are now predicting the end of late-summer sea ice within three to seven years. The trajectory of current melting plummets through the graphs like a meteorite falling to earth.

More…

The Perils of Efficiency

Sunday, November 23rd, 2008

– This story, from The New Yorker, says that we were saved from the high and rising food prices recently because they were followed closely by the economic collapse which, lucky for us, drove the food prices back down.   Lovely.

 – I’d say one could be forgiven if they suspect we might be getting into a zone of general instability; gas prices rising and then falling, the stock market up and down 400 and 500 points at a whack, the governments dumping billions of dollars into market stabilization efforts.  Ya think?

– Oh and I agree with this author so much  on his comments about the consequences of globalization.   All those highly touted greater efficiencies of the markets – carry, as the back side of the same coin, the fact that whether or not people can feed themselves is no longer a local matter.   Now a problem half way across the world can lead to local food shortages.   Welcome to the ‘improved’ globalized world.

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This spring, disaster loomed in the global food market. Precipitous increases in the prices of staples like rice (up more than a hundred and fifty per cent in a few months) and maize provoked food riots, toppled governments, and threatened the lives of tens of millions. But the bursting of the commodity bubble eased those pressures, and food prices, while still high, have come well off the astronomical levels they hit in April. For Americans, the drop in commodity prices has put a few more bucks in people’s pockets; in much of the developing world, it may have saved many from actually starving. So did the global financial crisis solve the global food crisis?

Temporarily, perhaps. But the recent price drop doesn’t provide any long-term respite from the threat of food shortages or future price spikes. Nor has it reassured anyone about the health of the global agricultural system, which the crisis revealed as dangerously unstable. Four decades after the Green Revolution, and after waves of market reforms intended to transform agricultural production, we’re still having a hard time insuring that people simply get enough to eat, and we seem to be more vulnerable to supply shocks than ever.

It wasn’t supposed to be this way. Over the past two decades, countries around the world have moved away from their focus on “food security” and handed market forces a greater role in shaping agricultural policy. Before the nineteen-eighties, developing countries had so-called “agricultural marketing boards,” which would buy commodities from farmers at fixed prices (prices high enough to keep farmers farming), and then store them in strategic reserves that could be used in the event of bad harvests or soaring import prices. But in the eighties and nineties, often as part of structural-adjustment programs imposed by the I.M.F. or the World Bank, many marketing boards were eliminated or cut back, and grain reserves, deemed inefficient and unnecessary, were sold off. In the same way, structural-adjustment programs often did away with government investment in and subsidies to agriculture—most notably, subsidies for things like fertilizers and high-yield seeds.

More…

– Research thanks to LA