Category: Capitalism

The BBC

A remarkably fine institution

Having now been living in Arizona for 18 months, I can say with some degree of certainty that there are few British things that I miss.  One of them is draft English beer, of course, but another one is the BBC.  Luckily modern internet technology means that quite a few of the great BBC television programmes ‘leak’ outside the UK.

The BBC Horizon science series has been one such example of a really well-produced programme.

Recently, a BBC Horizon programme about genetically modified (GM) foods aired by the BBC found its way onto YouTube and thence to the website Top Documentary Films.  Not only is it an interesting programme but it also reveals how the facts of new advances in science are often difficult to understand by us; the general public.

The link to the film on the TDF website is here but if you want to watch it directly from YouTube then here it is.

Solar Impulse

Just enjoy this.

Solar Impulse

From Wired Magazine,

“In a world dependent on fossil energies, Solar Impulse is a paradox, almost a provocation.”

Press release gobbledygook? Absolutely. But you’ve got to give it up for any company with the guts to try designing and building a true solar airplane.

We’ve written about Solar Impulse — it’s a consortium of European financial and technology parters led by the Federal Institute of Technology in Lausanne, Switzerland. The group is working on a solar-powered plane that can take off under its own power without generating any emissions at all. The general idea is that sunlight would not only power the plane during the day but would also charge its lithium batteries, allowing it to fly around the clock pollution free.

That was written May 12th, 2008.  This is now!  Landing at Brussels International Airport, May 2011.

And here’s the Solar Impulse website.

More on Bill McKibben’s book, eaarth.

Some very telling points.

I first mentioned this book on the 13th May when I was about a third of the way in.  Because I thought there might be material useful to the course that has been running here in Payson, I did skip around the book looking for ‘attention-grabbing’ points.  It wasn’t difficult to find numerous extracts.

Try this on page 214 from the Chapter Afterword.

As it turns out, however, the BP spill was not the most dangerous thing that happened in the months after this book was first published.  In fact, in the spring and summer of 2101, the list of startling events in the natural world included:

  • Nineteen nations setting new all-time high temperature records, which in itself is a record.  Some of those records were for entire regions – [then some of the details]
  • Scientists reported that the earth had just come through the warmest six months, the warmest year, and the warmest decade for which we have records; it appears 2010 will be the warmest calendar year on record.
  • The most protracted and extreme heat wave in a thousand years of Russian history (it had never before topped 100 degrees in Moscow) led to a siege of peat fires that shrouded the capital in ghostly, deadly smoke.  [Then goes on to mention the effect of this heat on global grain prices.]
  • Since warm air holds more water vapour that cold air, scientists were not surprised to see steady increases in flooding.  Still, the spring and summer of 2010 were off the charts.  We saw “thousand-year storms” across the globe [goes into details]
  • Meanwhile, in the far north, the Petermann Glacier on Greenland calved an iceberg four times the size of Manhattan.
  • And the most ominous news of all might have come from the pages of the eminent scientific journal Nature, which published an enormous study of the productivity of the earth’s seas. [More details follow – not good news!]
That last point can be read in more detail from Nature‘s website.  It’s here.
The book closes thus (referring to how the BP oil spill was, ultimately, an accident),
But the greatest danger we face, climate change, is no accident.  It’s what happens when everything goes the way it’s supposed to go.  It’s not a function of bad technology, it’s a function of a bad business model: of the fact that Exxon Mobil and BP and Peabody Coal are allowed to use the atmosphere, free of charge, as an open sewer for the inevitable waste from their products.  They’ll fight to the end to defend that business model, for it produces greater profits that any industry has ever known.  We won’t match them dollar for dollar: To fight back, we need a different currency, our bodies and our spirit and our creativity.  That’s what a movement looks like; let’s hope we can rally one in time to make a difference.
Powerful stuff from a powerful book.
Fired up?  Then go and join:  350.org

Greece, or grease?

The agony of watching a country (and a planet) slip.

Readers will be aware that I very rarely stroll through the tangled pastures of international politics and finance.  The only reason that I do so today is on the back of a very impressive letter published in the German newspaper  Handelsblatt.  That was brought to my attention by my subscription to Mike Shedlock’s (Mish) Blog Mish’s Global Economic Trend Analysis.  You will see that I muse at two levels about where we are today.

Earlier, I had read in last Saturday’s, The Economist a leader on Greece’s debt crisis, entitled Trichet the intransigent.   That started thus,

The European Central Bank’s refusal to consider a restructuring of Greek debt could wreck the euro zone
May 12th 2011 | from the print edition

IF THE stakes were not so high, Europeans’ incompetence in the euro-zone debt crisis would be comic.

and concluded thus,

It is time for the Germans and the IMF to call the ECB’s bluff. Together they should demand, and instigate, a restructuring of Greek debt. Germany should push other European governments to cough up money to support Greek banks and, if necessary, to make whole the ECB. The fund, which knows how to restructure debt, must ensure the process is run in a competent manner. The ECB will then be faced with a choice: go along with an orderly restructuring, or trigger a much greater mess by in effect forcing Greece out of the euro zone. Surely Mr Trichet does not want that to be his legacy.

So with that as background, the letter to Georgios Papandreou, Prime Minister of Greece written by Gabor Steingart is powerful and hard hitting.  Here it is in full.

Mr. Prime Minister,

Dear Mr. Papandreou,

With the greatest respect, the Western world is monitoring your efforts to master your country’s debt crisis. No other democratic country has ever managed anything like that in peacetime. You are shrinking the state apparatus; you are fighting corruption; you are teaching your fellow countrymen how to become honest tax-payers.

You are a modern hero. You are attempting the impossible. As the son of a persecuted and ostracized politician who was chased by the military junta you grew up close to danger. When the officers were looking for your father who was hiding in the attic, they threatened you by putting an unlocked pistol to your forehead and challenged you to betray your father. You denied your father’s presence until he, worried about his son’s life, left his hiding place.Later you fled with him to America where you spent your adolescence. You are alarger-than-life-character.

Preceding governments almost ruined your country. Debts amounting to 340 billion Euros are burdening the Greek state,equaling 155 times the profit of the 60 largest companies of your country and 1.5 times the amount of debts the Maastricht Treaty allows. A year ago, this newspaper, Germany’s biggest Business Daily, appealed to the public to buy Greek government bonds in order to give to the country what Greece needs just as urgently as money: confidence. We also wanted to assist in breaking through the negative spiral of growing doubt and increasing interest rates. Everyone who granted you guarantees and loans wanted it, the European Union, the International Monetary Fund, the heads of state and government.

But since then, the spiral has picked up in speed instead of slowing down. In May 2010 the interest rate at which your country was given money on a ten year basis was at eight per cent. Today, it is at 16 per cent. And in all probability, it will be going up further. The bitter truth to which you and all parties who wanted to help Greece have to admit is that the help doesn’t help. Your country is getting deeper and deeper into the mess. Debts are growing, the gross national product will decrease by at least three per cent in 2011. But it would have to grow by three per cent instead if you were to lower your debt to the allowedlimit until 2040. This is becoming more and more unrealistic. You can’t starve and build up your muscles at the same time.

The truth that Greece has to cut back and save has turned into an untruth. The right thing has turned into the wrong thing. You already cut pensions, lowered the salaries of civil servants by 30 per cent and raised the prices of gas by almost 50 per cent. You can’t restore the health of your country by saving. And the European Union can’t restore your country’s health by again and again injecting new loans.

Soon, the day will come when the tortured body will surrender. The Greek construction industry already shrank by 70 per cent. Sales of car dealers sank by half. A daily export volume of 50 million Euros Greece is achieving  far too little.  Soon the day will come which investors fear in their nightmares. Then the word “insolvency” will be on everyone’s lips.

But it is also the day when a new truth will be born: Don’t save but invest, they will tell you – so that the Greek economy will grow again. Do not service debt with debt, you then will be recommended, but spread out the debt service, cut it and maybe even completely suspend it for a while. It will be a day of impositions, especially for those who lendmoney to you and your people. Financial markets will grind to a halt in horror – and then they will turn to embrace the future. Because Argentina in 2001, Mexico at the beginning of the eighties and Germany after World War II taught us that there is a life after death – at least, in the case of highly indebted states.

Mr. Papandreou, so far, you attempted the impossible. Now you should do the possible. Just as you deceived the officers as a boy and denied to know where your father was hiding you now must repudiate the pride of the Greeks – in order to save your country. Come to meet the new uncomfortable truth before it knocks at your door. It’s already on its way.

Respectfully yours,

Gabor Steingart

The author is an award winning Journalist, the former White House Correspondent of “Der Spiegel” and now Handelsblatt’s  Editor-in-Chief.  His book “The war for wealth. The true story of globalization or while the flat world is broken” was  published in the US, GB, China and several other countries by McGraw Hill, New York, in 2008.

You may contact him at

steingart@handelsblatt.com


Powerful, as I said.

In a sense, in a very real sense, this illustration of the end game of our love affair with debt is symptomatic of the end game in terms of mankind’s love affair with, well with mankind.  The following was written by an inmate of Oklahoma Prison in 1998.

At the root of my humanity lies a potentially insatiable self-centredness.  Given its way, it can become unquenchable. Nothing, not even the richest of imagination, will put out its fire.

This ‘what’s in it for me’ mindset is at the root of all my problems and is where my fears live.  From those fears come anger, greed, intolerance, and a host of other shortcomings.

It is no accident that all religions point to the forgetting of self, because all religions know salvation lies in self-forgetting.

As we head relentlessly towards a level of 400 parts per million (PPM) of carbon dioxide in the atmosphere, 50 PPM above the highest safe limit determined by climate scientists, the time for mankind to move on from the debt-laden, over-leveraged, disconnected life from Planet Earth, is now.

That’s now!

eaarth, the book.

The latest edition of Bill McKibben’s book.

I’m about a third of the way through McKibben’s book eaarth.  To say that it is disturbing is an understatement.  I’ll tell you why.

eaarth

Most people when they think about it have, at the very least, feelings of guilt or denial in terms of what humans are doing to the planet’s environment that humans require for survival.  Many of us know in our hearts that it is probably not good news but maybe really thinking about it can be put off for a little longer!

It’s almost as though we know that those aches and pains are a sign of something potentially dangerous to our health but, hey ho, I’ll put off seeing the doctor for a little bit longer.

Then the day comes when one goes to the doctor and he confirms your worst fears; what you really knew deep in your heart.

Thus it is with the planet.  Most of us know that we have been treating the planet as an inexhaustible resource for the sole benefit of mankind and to hell with the future.  The you read a book such as eaarth from Bill McKibben and realise the extreme folly of denial, self-delusion, and the rest.  Here’s the preface of the book,

PREFACE

I’m writing these words on a gorgeous spring afternoon, perched on the bank of a brook high along the spine of the Green Mountains, a mile or so from my home in the Vermont mountain town of Ripton. The creek burbles along, the picture of a placid mountain stream, but a few feet away there’s a scene of real violence a deep gash through the woods where a flood last summer ripped away many cubic feet of tree and rock and soil and drove it downstream through the center of the village. Before the afternoon was out, the only paved road into town had been demolished by the rushing water, a string of bridges lay in ruins, and the governor was trying to reach the area by helicopter.

Twenty years ago, in 1989, I wrote the first book for a general audience about global warming, which in those days we called the “greenhouse effect.” That book, The End of Nature, was mainly a philosophical argument. It was too early to see the practical effects of climate change but not too early to feel them; in the most widely excerpted passage of the book, I described walking down a different river, near my then-home sixty miles away, in New York’s Adirondack Mountains. Merely knowing that we’d begun to alter the climate meant that the water fl owing in that creek had a different, lesser meaning. “Instead of a world where rain had an independent and mysterious existence, the rain had become a subset of human activity,” I wrote. “The rain bore a brand; it was a steer, not a deer.”

Now, that sadness has turned into a sharper-edged fear. Walking along this river today, you don’t need to imagine a damned thing the evidence of destruction is all too obvious. Much more quickly than we would have guessed in the late 1980s, global warming has dramatically altered, among many other things, hydrological cycles. One of the key facts of the twenty- first century turns out to be that warm air holds more water vapor than cold: in arid areas this means increased evaporation and hence drought. And once that water is in the atmosphere, it will come down, which in moist areas like Vermont means increased deluge and flood. Total rainfall across our continent is up 7 percent,1 and that huge change is accelerating. Worse, more and more of it comes in downpours.2 Not gentle rain but damaging gully washers: across the planet, flood damage is increasing by 5 percent a year.3 Data show dramatic increases 20 percent or more in the most extreme weather events across the eastern United States, the kind of storms that drop many inches of rain in a single day.4Vermont saw three flood emergencies in the 1960s, two in the 1970s, three in the 1980s and ten in the 1990s and ten so far in the first decade of the new century.

In our Vermont town, in the summer of 2008, we had what may have been the two largest rainstorms in our history about six weeks apart. The second and worse storm, on the morning of August 6, dropped at least six inches of rain in three hours up on the steep slopes of the mountains. Those forests are mostly intact, with only light logging to disturb them but that was far too much water for the woods to absorb. One of my neighbors, Amy Sheldon, is a river researcher, and she was walking through the mountains with me one recent day, imagining the floods on that August morning. “You would have seen streams changing violently like that,” she said, snapping her fingers. “A matter of minutes.” A year later the signs persisted: streambeds gouged down to bedrock, culverts obliterated, groves of trees laid to jackstraws.

Our town of barely more than five hundred people has been coping with the damage ever since. We passed a $400,000 bond to pay for our share of the damage to town roads and culverts. (The total cost was in the millions, most of it paid by the state and federal governments.) Now we’re paying more to line the creek with a seven-hundred-foot-long wall of huge boulders riprap, it’s called where it passes through the center of town, a scheme that may save a few houses for a few years, but which will speed up the water and cause even more erosion downstream. There’s a complicated equation for how wide a stream will be, given its grade and geology; Sheldon showed it to me as we reclined on rocks by the riverbank. It mathematically defines streams as we have known them, sets an upper limit to their size. You could use it to plan for the future, so you could know where to build and where to let well enough alone. But none of that planning works if it suddenly rains harder and faster than it has ever rained before, and that’s exactly what’s now happening. It’s raining harder and evaporating faster; seas are rising and ice is melting, melting far more quickly than we once expected. The first point of this book is simple: global warming is no longer a philosophical threat, no longer a future threat, no longer a threat at all. It’s our reality. We’ve changed the planet, changed it in large and fundamental ways. And these changes are far, far more evident in the toughest parts of the globe, where climate change is already wrecking thousands of lives daily. In July 2009, Oxfam released an epic report, “Suffering the Science,” which concluded that even if we now adapted “the smartest possible curbs” on carbon emissions, “the prospects are very bleak for hundreds of millions of people, most of them among the world’s poorest.”5

And so this book will be, by necessity, less philosophical than its predecessor. We need now to understand the world we’ve created, and consider urgently how to live in it. We can’t simply keep stacking boulders against the change that’s coming on every front; we’ll need to figure out what parts of our lives and our ideologies we must abandon so that we can protect the core of our societies and civilizations. There’s nothing airy or speculative about this conversation; it’s got to be uncomfortable, staccato, direct.

Which doesn’t mean that the change we must make or the world on the other side will be without its comforts or beauties. Reality always comes with beauty, sometimes more than fantasy, and the end of this book will suggest where those beauties lie. But hope has to be real. It can’t be a hope that the scientists will turn out to be wrong, or that President Barack Obama can somehow fix everything. Obama can help but precisely to the degree he’s willing to embrace reality, to understand that we live on the world we live on, not the one we might wish for. Maturity is not the opposite of hope; it’s what makes hope possible.

The need for that kind of maturity became painfully clear in the last days of 2009, as I was doing the final revisions for this book. Many people had invested great hope that the Copenhagen conference would mark a turning point in the climate change debate. If it did, it was a turning point for the worse, with the richest and most powerful countries making it abundantly clear that they weren’t going to take strong steps to address the crisis before us. They looked the poorest and most vulnerable nations straight in the eye, and then they looked away and concluded a face- saving accord with no targets or timetables. To see hope dashed is never pleasant. In the early morning hours after President Obama jetted back to Washington, a group of young protesters gathered at the metro station outside the conference hall in Copenhagen.It’s our future you decide, they chanted.

My only real fear is that the reality described in this book, and increasingly evident in the world around us, will be for some an excuse to give up. We need just the opposite increased engagement. Some of that engagement will be local: building the kind of communities and economies that can withstand what’s coming. And some of it must be global: we must step up the fight to keep climate change from getting even more powerfully out of control, and to try to protect those people most at risk, who are almost always those who have done the least to cause the problem. I’ve spent much of the last two de cades in that fight, most recently helping lead 350.org, a huge grassroots global effort to force dramatic action. It’s true that we’ve lost that fight, insofar as our goal was to preserve the world we were born into. That’s not the world we live on any longer, and there’s no use pretending otherwise.

But damage is always relative. So far we’ve increased global temperatures about a degree, and it’s caused the massive change chronicled in chapter 1. That’s not going to go away. But if we don’t stop pouring more carbon into the atmosphere, the temperature will simply keep rising, right past the point where any kind of adaptation will prove impossible. I have dedicated this book to my closest colleagues in this battle, my crew at 350.org, with the pledge that we’ll keep battling. We have no other choice.

Nature, big business and the future

Just maybe, economic activity and financial capital could align itself with the planetary demands!

A collection of items crossed my screen in the last few days that reinforced the interconnectedness of all life on Planet Earth.

First I saw an item on the BBC News website that demonstrated that climate change, global warming, or however one wants to describe man’s relationship with the planet, is not some crazy, fuzzy idea of a few liberal environmentalists.  This was a report of the significant drop in global wheat yields.

The report was entitled, Climate shifts ‘hit global wheat yields’ and was written by Mark Kinver, Science and environment reporter, BBC News.  Here’s a taste of what was written.

Shifts in the climate over the past three decades have been linked to a 5.5% decline in global wheat production, a study has suggested.

A team of US scientists assessed the impact of changes to rainfall and temperature on four major food crops: wheat, rice, corn and soybeans.

Climate trends in some countries were big enough to wipe out gains from other factors, such as technology, they said.

Professor David Lobell from Stanford University went on to say,

“In particular, you have to assume how non-linear the response will be and how different the crops of tomorrow will be from the crops of today,” he said.

He added that the study focused on historical data in order to strengthen confidence in the existing projections.

“I think it is very clear that climate is not the predominant driver of change over long periods of time in crop production.

“Across the board, you see crop yields going up over the past 30 years, but the question is how much is climate modified (and) what would have happened if the climate was not changing.

“In some countries, we see that climate has only affected things by a few percent. In other countries, we see that yields would have been rising twice as fast.

“On a global average, we see that wheat production would be about 5% higher if we had not seen the warming since 1980. We see about the same for maize or corn.

“Yet for rice and soybean, we actually find that production is about the same as if climate had not been trending.”

The report may be accessed here.

Sort of moving on, most people, when they stop and think about it, must realise that 6.9 billion people living (i.e. depending) on Planet Earth have to be causing changes.  The Inside Science News Service published a reminder from last December of a calculation that,

By Mary Caperton Morton, ISNS Contributor
Inside Science News Service

STRASBURG, Pa. — Next month, representatives from more than 190 nations will gather in Japan at the Nagoya Biodiversity Summit to develop a global strategy for staunching habitat and biodiversity loss around the world.

The statistics are sobering: Every 20 minutes a species goes extinct. At that rate — estimated to be a thousand times faster than pre-human impact background levels – in 300 years, half of all living species of mammals, birds, fish, reptiles and plants will be gone. [My italics]

This alarming decline has not gone unnoticed. In 1992, the United Nations Convention on Biological Diversity — or CBD — one of the most widely ratified treaties in the world, established lofty conservation goals to be met by 2010. But since then the decline in biodiversity has not slowed. Nearly 16,000 species are still listed as threatened, with more than 200 of them described as “possibly extinct.”

What we need, some might ask, is for big business to get behind and push!  Perhaps not so far fetched.

Last October, the British Guardian newspaper, published a very telling reminder that nothing ever in life stays the same.

The article was presented thus,

Biodiversity loss seen as greater financial risk than terrorism, says UN

Loss of ecosystems perceived by banks and insurance companies to be a greater economic risk than terrorism, finds UN report.

Written by Jonathan Watts in Nagoya.

A controlled burn of oil from the Deepwater Horizon well in the Gulf of Mexico. The report cites the Gulf of Mexico oil spill as an extreme example of the potential impact of inadequate environmental controls. Photograph: Ann Heisenfelt/EPA

The financial risks posed by the loss of species and ecosystems have risen sharply and are becoming a greater concern for businesses than international terrorism, according to a United Nations report released today.

From over-depletion of fish stocks and soil degradation caused by agricultural chemicals to water shortages and mining pollution, the paper – commissioned by the UN Environment Programme and partners – said the likelihood has climbed sharply that declines in biodiversity would have a “severe” $10bn (£6bn) to $50bn impact on business.

With the European Union and other regions increasingly holding companies liable for impacts on ecosystem services, it suggests banks, investors and insurance companies are starting to calculate the losses that could arise from diminishing supplies, tightened conservationcontrols and the reputational damage caused by involvement in an unsound project.

Achim Steiner, UN under-secretary general and Unep executive director, said: “The kinds of emerging concerns and rising perception of risks underlines a fundamental sea change in the way some financial institutions, alongside natural resource-dependent companies, are now starting to glimpse and to factor in the economic importance of biodiversity and ecosystems”.

The briefing paper cites the 55% crash of BP’s share price and the decline of its credit rating in the wake of the Gulf of Mexico oil spill as an extreme example of the potential impact of inadequate environmental controls.

Read the full article in the Guardian here.

The United Nations Environment Programme report may be found here.  The cover page says this,

“ As the global financial sector recovers and moves into the post financial crisis era,
there is one notion that crystallises before our eyes more acutely than ever: we need
to understand systemic risk in a much more holistic way. This CEO Briefing underscores
the critical natural capital that underpins our economic activity and financial capital.”
Richard Burrett, Partner in Earth Capital Partners
Co-Chair, UNEP Finance Initiative

Well put!

As I wrote at the very start, just maybe, economic activity and financial capital could align itself with the planetary demands!

Blood and Oil

Continuing the thoughts of Michael Klare.

(My apologies, this is a difficult week for me as I prepare for a course that starts on the 11th May.  So posts may be a little thinner than usual.)

Yesterday, I wrote about an article by Michael Klare on the theme of the avenging planet.  While researching for that piece, I came across a film that Klare has produced called Blood and Oil.  It seemed worth mentioning it on Learning from Dogs.

Here’s the synopsis,

The notion that oil motivates America’s military engagements in the Middle East has long been dismissed as nonsense or mere conspiracy theory. Blood and Oil, a new documentary based on the critically-acclaimed work of Nation magazine defense correspondent Michael T. Klare, challenges this conventional wisdom to correct the historical record. The film unearths declassified documents and highlights forgotten passages in prominent presidential doctrines to show how concerns about oil have been at the core of American foreign policy for more than 60 years – rendering our contemporary energy and military policies virtually indistinguishable. In the end, Blood and Oil calls for a radical re-thinking of US energy policy, warning that unless we change direction, we stand to be drawn into one oil war after another as the global hunt for diminishing world petroleum supplies accelerates.

Here’s a trailer for the film.

Musings about Planet Earth

Could Planet Earth really be avenging the disregard shown by man?

This is such a meaty subject that, frankly, all this article can do is to set the scene for further muses.  The trigger for the theme was a piece written by Michael Klare that I read on the Tom Dispatch blogsite.  But before going to that piece by Michael Klare, let’s step back for a moment.

Planet Earth from Apollo 8

The idea that the Planet is not a piece of rock covered in a thin layer of air, water and life but something much more deeply connected with all living organisms including the ‘higher order’ forms of life is not new.  But it was Professor James Lovelock who catapulted the idea of the living, breathing planet into the psyche of modern man as in his Gaia hypothesis.  Here’s a link to Lovelock’s original explanation of that idea.  From which is quoted,

Most of us sense that the Earth is more than a sphere of rock with a thin layer of air, ocean and life covering the surface. We feel that we belong here as if this planet were indeed our home. Long ago the Greeks, thinking this way, gave to the Earth the name Gaia or, for short, Ge. In those days, science and theology were one and science, although less precise, had soul. As time passed this warm relationship faded and was replaced by the frigidity of the schoolmen. The life sciences, no longer concerned with life, fell to classifying dead things and even to vivisection. Ge was stolen from theology to become no more the root from which the disciplines of geography and geology were named. Now at last there are signs of a change. Science becomes holistic again and rediscovers soul, and theology, moved by ecumenical forces, begins to realise that Gaia is not to be subdivided for academic convenience and that Ge is much more than just a prefix.

That article concludes thus,

If we are “all creatures great and small,” from bacteria to whales, part of Gaia then we are all of us potentially important to her well being. We knew in our hearts that the destruction of a whole range of other species was wrong but now we know why. No longer can we merely regret the passing of one of the great whales, or the blue butterfly, nor even the smallpox virus. When we eliminate one of these from Earth, we may have destroyed a part of ourselves, for we also are a part of Gaia.

There are many possibilities for comfort as there are for dismay in contemplating the consequences of our membership in this great commonwealth of living things. It may be that one role we play is as the senses and nervous system for Gaia. Through our eyes she has for the first time seen her very fair face and in our minds become aware of herself. We do indeed belong here. The earth is more than just a home, it’s a living system and we are part of it.

So back to Michael Klare.

On the 14th April, Tom Engelhardt wrote a piece on Tom Dispatch that opened as follows:

Last Monday, Yukio Edano, chief cabinet secretary, defended the Japanese government’s response to the nuclear disaster at Fukushima, insisting that the plant complex is in “a stable situation,relatively speaking.”  That’s somewhat like the official description of 11,500 tons of water purposely dumped into the ocean waters off Fukushima as “low-level radioactive” or “lightly radioactive.”  It is, of course, only “lightly” so in comparison to the even more radioactive water being stored at the plant in its place.  But that’s the thing with descriptive words: they can leave so much to the eye of the beholder — and the Japanese government hasn’t been significantly more eager than the Tokyo Electric Power Company (Tepco), which runs the complex, to behold all that much when it comes to Fukushima.

Engelhardt then sets the scene for the guest post by Michael Klare.

The Planet Strikes Back
Why We Underestimate the Earth and Overestimate Ourselves 

By Michael T. Klare

In his 2010 book, Eaarth: Making a Life on a Tough New Planet, environmental scholar and activist Bill McKibben writes of a planet so devastated by global warming that it’s no longer recognizable as the Earth we once inhabited.  This is a planet, he predicts, of “melting poles and dying forests and a heaving, corrosive sea, raked by winds, strafed by storms, scorched by heat.”  Altered as it is from the world in which human civilization was born and thrived, it needs a new name — so he gave it that extra “a” in “Eaarth.”

It would be wrong to do more that selectively offer extracts but here’s how Klare sets the scene,

It’s not enough to think of Eaarth as an impotent casualty of humanity’s predations.  It is also a complex organic system with many potent defenses against alien intervention — defenses it is already wielding to devastating effect when it comes to human societies.  And keep this in mind: we are only at the beginning of this process.

To grasp our present situation, however, it’s necessary to distinguish between naturally recurring planetary disturbances and the planetary responses to human intervention.  Both need a fresh look, so let’s start with what Earth has always been capable of before we turn to the responses of Eaarth, the avenger.

Michael Klare conclude thus,

Bill McKibben is right: we no longer live on the “cozy, taken-for-granted” planet formerly known as Earth.  We inhabit a new place, already changed dramatically by the intervention of humankind.  But we are not acting upon a passive, impotent entity unable to defend itself against human transgression.  Sad to say, we will learn to our dismay of the immense powers available to Eaarth, the Avenger.

Michael T. Klare is a professor of peace and world security studies at Hampshire College, a TomDispatch regular, and the author, most recently, ofRising Powers, Shrinking Planet. A documentary movie version of his previous book, Blood and Oil, is available from the Media Education Foundation.

To close, here’s an interview of Michael Klare by Tom Engelhardt.

Who is kidding who, conclusion.

A frank and honest assessment of the reality of the present economic situation, Part Two.

Yesterday, I wrote about publishing, in two parts, a recent article from the Blogsite, Washington’s Blog.  If you missed the first part that was here.  As I wrote yesterday, it is detailed and comprehensive, which is why I think it will be more easily digested as two parts presented on Learning from Dogs over this week-end.

So on to Part Two.

The particular post that appeared on Washington’s Blog on the 28th April was entitled Gallup Poll Shows that More Americans Believe the U.S. is in a Depression than is Growing … Are They Right? You can link to it here.

Blytic calculates that the current average duration of unemployment is some 32 weeks, the median duration is around 20 weeks, and there are approximately 6 million people unemployed for 27 weeks or longer.

Moreover, employers are discriminating against job applicants who are currently unemployed, which will almost certainly prolong the duration of joblessness.

As I noted in January 2009:

In 1930, there were 123 million Americans.

At the height of the Depression in 1933, 24.9% of the total work force or 11,385,000 people, were unemployed.

Will unemployment reach 25% during this current crisis?

I don’t know. But the number of people unemployed will be higher than during the Depression.

Specifically, there are currently some 300 million Americans,154.4 million of whom are in the work force.

Unemployment is expected to exceed 10% by many economists, and Obama “has warned that the unemployment rate will explode to at least 10% in 2009”.

10 percent of 154 million is 15 million people out of work – more than during the Great Depression.

Given that the broader U-6 measure of unemployment is currently around 17% (ShadowStats.com puts the figure at 22%, and some put iteven higher), the current numbers are that much worse.

But it is important to look at some details.

For example, official Bureau of Labor Statistics numbers put U-6 above 20% in several states:

  • California: 21.9
  • Nevada: 21.5
  • Michigan 21.6
  • Oregon 20.1

In the past year, unemployment has grown the fastest in the mountain West.

And certain races and age groups have gotten hit hard.

According to Congress’ Joint Economic Committee:

By February 2010, the U-6 rate for African Americans rose to 24.9 percent.

34.5% of young African American men were unemployed in October 2009.As the Center for Immigration Studies noted last December:

Unemployment rates for less-educated and younger workers:

  • As of the third quarter of 2009, the overall unemployment rate for native-born Americans is 9.5 percent; the U-6 measure shows it as 15.9 percent.
  • The unemployment rate for natives with a high school degree or less is 13.1 percent. Their U-6 measure is 21.9 percent.
  • The unemployment rate for natives with less than a high school education is 20.5 percent. Their U-6 measure is 32.4 percent.
  • The unemployment rate for young native-born Americans (18-29) who have only a high school education is 19 percent. Their U-6 measure is 31.2 percent.
  • The unemployment rate for native-born blacks with less than a high school education is 28.8 percent. Their U-6 measure is 42.2 percent.
  • The unemployment rate for young native-born blacks (18-29) with only a high school education is 27.1 percent. Their U-6 measure is 39.8 percent.
  • The unemployment rate for native-born Hispanics with less than a high school education is 23.2 percent. Their U-6 measure is 35.6 percent.
  • The unemployment rate for young native-born Hispanics (18-29) with only a high school degree is 20.9 percent. Their U-6 measure is 33.9 percent.

No wonder Chris Tilly – director of the Institute for Research on Labor and Employment at UCLA – says that African-Americans and high school dropouts are experiencing depression-level unemployment.

And as I have previously noted, unemployment for those who earn $150,000 or more is only 3%, while unemployment for the poor is 31%.

The bottom line is that it is difficult to compare current unemployment with what occurred during the Great Depression. In some ways things seem better now. In other ways, they don’t.

Factors like where you live, race, income and age greatly effect one’s experience of the severity of unemployment in America.

In addition, wages have plummeted for those who are employed. As Pulitzer Prize-winning tax reporter David Cay Johnston notes:

Every 34th wage earner in America in 2008 went all of 2009 without earning a single dollar, new data from the Social Security Administration show. Total wages, median wages, and average wages all declined ….

And see this, this, and this.

Food Stamps Replace Soup Kitchens

1 out of every 7 Americans now rely on food stamps.

While we don’t see soup kitchens, it may only be because so many Americans are receiving food stamps.

Indeed, despite the dramatic photographs we’ve all seen of the 1930s, the 43 million Americans relying on food stamps to get by may actually be much greater than the number who relied on soup kitchens during the Great Depression.

In addition, according to Chaz Valenza (a small business owner in New Jersey who earned his MBA from New York University’s Stern School of Business)millions of Americans are heading to foodbanks for the first time in their lives.

***

The War Isn’t Working

Given the above facts, it would seem that the government hasn’t been doingmuch. But the scary thing is that the government has done more than during the Great Depression, but the economy is still stuck a pit.

***

The amount spent in emergency bailouts, loans and subsidies during this financial crisis arguably dwarfs the amount which the government spent during the New Deal.

For example, Casey Research wrote in 2008:

Paulson and Bernanke have embarked on the largest bailout program ever conceived …. a program which so far will cost taxpayers $8.5 trillion.

[The updated, exact number can be disputed. But as shown below, the exact number of trillions of dollars is not that important.]

So how does $8.5 trillion dollars compare with the cost of some of the major conflicts and programs initiated by the US government since its inception? To try and grasp the enormity of this figure, let’s look at some other financial commitments undertaken by our government in the past:

As illustrated above, one can see that in today’s dollar, we have already committed to spending levels that surpass the cumulative cost of all of the major wars and government initiatives since the American Revolution.

Recently, the Congressional Research Service estimated the cost of all of the major wars our country has fought in 2008 dollars. The chart above shows that the entire cost of WWII over four to five years was less than half the current pledges made by Paulson and Bernanke in the last three months!

In spite of years of conflict, the Vietnam and the Iraq wars have each cost less than the bailout package that was approved by Congress in two weeks. The Civil War that devastated our country had a total price tag (for both the Union and Confederacy) of $60.4 billion, while the Revolutionary War was fought for a mere $1.8 billion.

In its fifty or so years of existence, NASA has only managed to spend $885 billion – a figure which got us to the moon and beyond.

The New Deal had a price tag of only $500 billion. The Marshall Plan that enabled the reconstruction of Europe following WWII for $13 billion, comes out to approximately $125 billion in 2008 dollars. The cost of fixing the S&L crisis was $235 billion.

CNBC confirms that the New Deal cost about $500 billion (and the S&L crisis cost around $256 billion) in inflation adjusted dollars.

So even though the government’s spending on the “war” on the economic crisis dwarfs the amount spent on the New Deal, our economy is still stuck in the mud.

Why Haven’t Things Gotten Better for the Little Guy?

Government leaders make happy talk about how things are improving, but happy talk cannot fix the economy.

Two fundamental causes of the Great Depression, and of our current economic problems, are fraud and inequality:

There are, of course, other reasons the economy is still stuck in a ditch for most Americans, such as encouraging too much leverage, bailing out the big speculators, failing to break up the mammoth banks, and failing to spend wisely, where it will do some good. See this and this. But fraud and inequality were core causes of the Depression, and our failure to address them will only prolong our misery.

Who is kidding who?

A frank and honest assessment of the reality of the present economic situation.

The next two days see me publishing, in two parts, a recent article from the Blogsite, Washington’s Blog.  Perhaps one can’t blame the efforts of so many of the western governments’ leaders to talk up the economy but at street level the vast majority of people feel pain about their circumstances.

The particular post that appeared on Washington’s Blog on the 28th April was entitled Gallup Poll Shows that More Americans Believe the U.S. is in a Depression than is Growing … Are They Right? You can link to it here. It is detailed and comprehensive, which is why I think it will be more easily digested as two parts presented on Learning from Dogs over this week-end.

Here’s the first part.

Consumer confidence is, well … in somewhat of a depression.

Reuters reports today:

The April 20-23 Gallup survey of 1,013 U.S. adults found that only 27 percent said the economy is growing. Twenty-nine percent said the economy is in a depression and 26 percent said it is in a recession, with another 16 percent saying it is “slowing down,” Gallup said.

Tyler Durden notes:

That means that more Americans think the country is in a Depression, let alone recession, than growing.

How can so many Americans believe that we’re in a depression, when the stock market and commodity prices have been booming?

As I noted last week:

Instead of directly helping the American people, the government threwtrillions at the giant banks (including foreign banks; and see this) . The big banks have – in turn – used a lot of that money to speculate in commodities, including food and other items which are now driving up the price of consumer necessities [as well as stocks]. Instead of using the money to hire Americans, they’re hiring abroad (and getting tax refunds from the government).

But don’t rising stock prices help create wealth?

Not really. As I pointed out in January:

A rising stock market doesn’t help the average American as much as you might assume.

For example, Robert Shiller noted in 2001:

We have examined the wealth effect with a cross-sectional time-series data sets that are more comprehensive than any applied to the wealth effect before and with a number of different econometric specifications. The statistical results are variable depending on econometric specification, and so any conclusion must be tentative. Nevertheless, the evidence of a stock market wealth effect is weak; the common presumption that there is strong evidence for the wealth effect is not supported in our results. However, we do find strong evidence that variations in housing market wealth have important effects upon consumption. This evidence arises consistently using panels of U.S. states and individual countries and is robust to differences in model specification. The housing market appears to be more important than the stock market in influencing consumption in developed countries.

I pointed out in March:

Even Alan Greenspan recently called the recovery “extremely unbalanced,” driven largely by high earners benefiting from recovering stock markets and large corporations.

***

As economics professor and former Secretary of Labor Robert Reichwrites today in an outstanding piece:

Some cheerleaders say rising stock prices make consumers feel wealthier and therefore readier to spend. But to the extent most Americans have any assets at all their net worth is mostly in their homes, and those homes are still worth less than they were in 2007. The “wealth effect” is relevant mainly to the richest 10 percent of Americans, most of whose net worth is in stocks and bonds.

I noted in May:

As of 2007, the bottom 50% of the U.S. population owned only one-half of one percent of all stocks, bonds and mutual funds in the U.S. On the other hand, the top 1% owned owned 50.9%.

***

(Of course, the divergence between the wealthiest and the rest has only increased since 2007.)

And last month Professor G. William Domhoff updated his “Who Rules America” study, showing that the richest 10% own 98.5% of all financial securities, and that:

The top 10% have 80% to 90% of stocks, bonds, trust funds, and business equity, and over 75% of non-home real estate. Since financial wealth is what counts as far as the control of income-producing assets, we can say that just 10% of the people own the United States of America.

Indeed, most stocks are held for only a couple of moments – and aren’t held by mom and pop investors.

How Bad?

How bad are things for the little guy?

Well, as I noted in January, the housing slump is worse than during the Great Depression.

As CNN Money points out today:

Wal-Mart’s core shoppers are running out of money much faster than a year ago due to rising gasoline prices, and the retail giant is worried, CEO Mike Duke said Wednesday.

“We’re seeing core consumers under a lot of pressure,” Duke said at an event in New York. “There’s no doubt that rising fuel prices are having an impact.”

Wal-Mart shoppers, many of whom live paycheck to paycheck, typically shop in bulk at the beginning of the month when their paychecks come in.

Lately, they’re “running out of money” at a faster clip, he said.

“Purchases are really dropping off by the end of the month even more than last year,” Duke said. “This end-of-month [purchases] cycle is growing to be a concern.

And – in case you still think that the 29% of Americans who think we’re in a depression are unduly pessimistic – take a look at what I wrote last December:

The following experts have – at some point during the last 2 years – said that the economic crisis could be worse than the Great Depression:

***

States and Cities In Worst Shape Since the Great Depression

States and cities are in dire financial straits, and many may default in 2011.

California is issuing IOUs for only the second time since the Great Depression.

Things haven’t been this bad for state and local governments since the 30s.

Loan Loss Rate Higher than During the Great Depression

In October 2009, I reported:

In May, analyst Mike Mayo predicted that the bank loan loss rate would be higher than during the Great Depression.

In a new report, Moody’s has just confirmed (as summarized by Zero Hedge):

The most recent rate of bank charge offs, which hit $45 billion in the past quarter, and have now reached a total of $116 billion, is at 3.4%, which is substantially higher than the 2.25% hit in 1932, before peaking at at 3.4% rate by 1934.

And see this.

Here’s a chart summarizing the findings:

(click here for full chart).

Indeed, top economists such as Anna Schwartz, James Galbraith, Nouriel Roubini and others have pointed out that while banks faced a liquidity crisis during the Great Depression, today they are wholly insolvent. See this, this,this and this. Insolvency is much more severe than a shortage of liquidity.
Unemployment at or Near Depression Levels

USA Today reports today:

So many Americans have been jobless for so long that the government is changing how it records long-term unemployment.

Citing what it calls “an unprecedented rise” in long-term unemployment, the federal Bureau of Labor Statistics (BLS), beginning Saturday, will raise from two years to five years the upper limit on how long someone can be listed as having been jobless.

***

The change is a sign that bureau officials “are afraid that a cap of two years may be ‘understating the true average duration’ — but they won’t know by how much until they raise the upper limit,” says Linda Barrington, an economist who directs the Institute for Compensation Studies at Cornell University’s School of Industrial and Labor Relations.

***

“The BLS doesn’t make such changes lightly,” Barrington says. Stacey Standish, a bureau assistant press officer, says the two-year limit has been used for 33 years.

***

Although “this feels like something we’ve not experienced” since the Great Depression, she says, economists need more information to be sure.

The following chart from Calculated Risk shows that this is not a normal spike in unemployment:

As does this chart from Clusterstock:


As I noted in October:

It is difficult to compare current unemployment with that during the Great Depression. In the Depression, unemployment numbers weren’t tracked very consistently, and the U-3 and U-6 statistics we use today weren’t used back then. And statistical “adjustments” such as the “birth-death model” are being used today that weren’t used in the 1930s.

But let’s discuss the facts we do know.

The Wall Street Journal noted in July 2009:

The average length of unemployment is higher than it’s been since government began tracking the data in 1948.

***

The job losses are also now equal to the net job gains over the previous nine years, making this the only recession since the Great Depression to wipe out all job growth from the previous expansion.

The Christian Science Monitor wrote an article in June entitled, “Length of unemployment reaches Great Depression levels“.

60 Minutes – in a must-watch segment – notes that our current situation tops the Great Depression in one respect: never have we had a recession this deep with a recovery this flat. 60 Minutes points out that unemployment has been at 9.5% or above for 14 months:

Pulitzer Prize-winning historian David M. Kennedy notes in Freedom From Fear: The American People in Depression and War, 1929-1945(Oxford, 1999) that – during Herbert Hoover’s presidency, more than 13 million Americans lost their jobs. Of those, 62% found themselves out of work for longer than a year; 44% longer than two years; 24%longer than three years; and 11% longer than four years.

Part Two tomorrow.