Category: Education

Make a difference – now!

A plea to sign a global call not to delay action on global warming

How many of you in Europe watched the final episode of Sir Peter Attenborough’s Frozen Planet series, entitled On Thin Ice?

Did you watch the short video in last week’s post, The power of truth?  If not, it’s below.

Here’s a piece from a BBC news item from yesterday,

A hungry polar bear

It is an image that is sure to shock many people.

An adult polar bear is seen dragging the body of a cub that it has just killed across the Arctic sea ice.

Polar bears normally hunt seals but if these are not available, the big predators will seek out other sources of food – even their own kind.

The picture was taken by environmental photojournalist Jenny Ross in Olgastretet, a stretch of water in the Svalbard archipelago.

“This type of intraspecific predation has always occurred to some extent,” she told BBC News.

“However, there are increasing numbers of observations of it occurring, particularly on land where polar bears are trapped ashore, completely food-deprived for extended periods of time due to the loss of sea ice as a result of climate change.”

Re-read that last segment of that last sentence, “completely food-deprived for extended periods of time due to the loss of sea ice as a result of climate change.

So with all that in mind, please read on.

Friends,

What if someone told you we should abandon all hope for global climate action until 2020? Well, that’s exactly the proposal that the United States is pushing at the UN Climate Talks taking place this week in Durban, South Africa. The 2020 delay might well be the worst idea ever.

Waiting nine years for climate action isn’t just a delay, it’s a death sentence for communities on the front lines of the climate crisis — and it could slam the door on ever getting carbon pollution levels below the safe upper limit of 350 parts per million.

It’s not too late to stop this delay from going through. Over the next three days, our team of 350.org activists in Durban will be working with our partners at Avaaz and allies from around the world to isolate the United States — and build support for the African nations that are fighting for real climate action. But it will take a massive grassroots outcry to demonstrate that people everywhere are taking a stand to prevent the United States negotiators from signing away our future.

If we raise an international alarm before the talks end on Friday, we can convince the US to get out of way of progress and help unlock the global process that can lead to bold climate action all around the world.

Click here to add your voice to a global call to action we’re delivering in Durban: www.350.org/durban

The climate talks in South Africa end in just 48 hours, and it’s vital that we ramp up the pressure now. To make sure the US gets the message, our team on the ground here in Durban will deliver your messages directly to the US negotiating team at a high-impact event we’re helping to pull together on Friday. We can’t say much more about it now, but suffice to say our message will be unavoidable.

This year, the 350 network has shown that people power can truly move the planet in the right direction. We mobilized hundreds of thousands of people to push for climate action in nearly every country on earth. We beat back the Keystone XL pipeline when no one said it was possible. We took over the radio waves to spread a message of hope and action on the climate crisis. And through our actions, we helped keep the hope of saving our planet — and reaching 350 ppm — alive.

The UN Climate Talks here in Durban aren’t going to get us back to 350 by themselves, but they can keep the option open by making progress on a legally binding, international framework to help nations make serious cuts in carbon emissions. In 2012, we’re going to need to do all we can to challenge the fossil fuel companies that are the real obstacles to progress. Breaking their stranglehold on our governments is the only way to really unlock these negotiations.

But right now, the most important thing we can do is keep the possibility of a strong international climate deal alive by pushing back on the United States negotiating team. In recent months, President Obama has shown that he’ll stand up for the climate, but only if he’s got a movement to back him up. On the Keystone pipeline, he’s been doing the right thing by blocking Republican efforts to push it through — now we need him to do the right thing on the international stage.

There’s no guarantee that we’ll be successful, but we owe it to our allies across the planet — many of whom are already feeling the impacts of climate change — to resist the chorus of cynics and keep hope alive. As Nelson Mandela said, “It always seems impossible until it’s done.” The 350 network has pulled off the impossible before — now’s the time to step up the pressure again.

Please add your voice today: www.350.org/durban

Let’s do this,

Jamie Henn for the whole 350.org team

P.S. We have just 48 hours to build a huge groundswell of pressure. Please help make it go viral with a few clicks on Twitterand Facebook — tag your popular friends, and post it again and again.

William deBuys, The Parching of the West

Once again, a powerful essay from the TomDispatch blog.

Quick introduction.  Tom Engelhardt, of TomDispatch, has given me a blanket permission to reproduce his essays.  As always, I am indebted to his generosity.  This particular essay is extremely timely coming after my Post yesterday about extreme weather.

Tomgram: William deBuys, The Parching of the West

Posted by William deBuys at 6:02pm, December 4, 2011.

The good news? While 2010 tied for the warmest year on record, 2011 — according to the U.N.’s World Meteorological Organization (WMO) — is likely to come in 10th once November and December temperatures are tallied. In part, this is evidently due to an especially strong La Niña cooling event in the Pacific.  On the other hand, with 2011 in the top ten despite La Niña, 13 of the warmest years since such record-keeping began have occurred in the last 15 years.  Think of that as an uncomfortably hot cluster.

And other climate news is no better.  A recent study indicates that Arctic ice is now melting at rates unprecedented in the last 1,450 years (as far back, that is, as reasonably accurate reconstructions of such an environment can be modeled).  As the Arctic warms and temperatures rise in surrounding northern lands — someday, Finland may have to construct artificial ski trails and ice rinks for its future winter tourists — a report on yet another study is bringing more lousy news.  Appearing in the prestigious science journal Nature, it indicates that the melting permafrost of the tundra may soon begin releasing global-warming gases into the atmosphere in massive quantities.  We’re talking the equivalent of 300 billion metric tons of carbon over the next nine decades.

Recently, Fatih Birol, the chief economist for the International Energy Agency, suggested that, by century’s end, the planet’s temperature could rise by a staggering 6º Celsius (almost 11º Fahrenheit).  International climate-change negotiators had been trying to keep that rise to a “mere” 2º C.  “Everybody, even the schoolchildren, knows this is a catastrophe for all of us,” was the way Birol summed the situation up.  If only it were so, but here in the U.S., none of the above news was even considered front-page worthy.  Nor was the news that, in 2010, humans had pumped more carbon dioxide into the atmosphere than at any time since the industrial revolution began: 564 million more tons than in 2009 to be exact.  We’re living today with just less than a degree of those six degrees to come, and the results in extreme weather this year should have made us all stop and think.

If you want to focus in on damage here in the U.S., consider Rick Perry’s Texas, where, according to scientists, “daily temperatures averaged 86.7° in June through August — a staggering 5.4°F above normal.”  According to the WMO, that’s the highest such average “ever recorded for any American state.”  And still global politicians yammer on and do little; still, the U.S. shuffles its political feet, while Canada’s government has announced that it will make no new commitments and may even be preparing to withdraw from the Kyoto protocol, and countries with booming developing economies like China, India, and Brazil hedge their bets when it comes to action.

In the meantime, nature doesn’t care whether or not we do anything.  It’s on its own schedule.  And when it comes to the American Southwest, that schedule looks daunting indeed as William deBuys makes clear.  His new book, A Great Aridness: Climate Change and the Future of the American Southwest, is the definitive work on the subject of water and the West (and, as with all of his work, a pleasure to read). So get yourself a glass of water while you still can and settle in for a dose of the Age of Thirst. (To catch Timothy MacBain’s latest Tomcast audio interview in which deBuys discusses the water politics of the American West, click here or download it to your iPod here.) Tom

The Age of Thirst in the American West
Coming to a Theater Near You: The Greatest Water Crisis in the History of Civilization 

By William deBuys

Consider it a taste of the future: the fire, smoke, drought, dust, and heat that have made life unpleasant, if not dangerous, from Louisiana to Los Angeles. New records tell the tale: biggest wildfire ever recorded in Arizona (538,049 acres),biggest fire ever in New Mexico (156,600 acres), all-time worst fire year in Texas history (3,697,000 acres).

The fires were a function of drought.  As of summer’s end, 2011 was the driest year in 117 years of record keeping for New Mexico, Texas, and Louisiana, and the second driest for Oklahoma. Those fires also resulted from record heat.  It was the hottest summer ever recorded for New Mexico, Texas, Oklahoma, and Louisiana, as well as the hottest August ever for those states, plus Arizona and Colorado.

Virtually every city in the region experienced unprecedented temperatures, with Phoenix, as usual, leading the march toward unlivability. This past summer, the so-called Valley of the Sun set a new record of 33 days when the mercury reached a shoe-melting 110º F or higher. (The previous record of 32 days was set in 2007.)

And here’s the bad news in a nutshell: if you live in the Southwest or just about anywhere in the American West, you or your children and grandchildren could soon enough be facing the Age of Thirst, which may also prove to be the greatest water crisis in the history of civilization.  No kidding.

If that gets you down, here’s a little cheer-up note: the end is not yet nigh.

In fact, this year the weather elsewhere rode to the rescue, and the news for the Southwest was good where it really mattered.  Since January, the biggest reservoir in the United States, Lake Mead, backed up by the Hoover Dam and just 30 miles southwest of Las Vegas, has risen almost 40 feet. That lake is crucial when it comes to watering lawns or taking showers from Arizona to California.  And the near 40-foot surge of extra water offered a significant upward nudge to the Southwest’s water reserves.

The Colorado River, which the reservoir impounds, supplies all or part of the water on which nearly 30 million people depend, most of them living downstream of Lake Mead in Los Angeles, San Diego, Phoenix, Tucson, Tijuana, and scores of smaller communities in the United States and Mexico.

Back in 1999, the lake was full. Patricia Mulroy, who heads the water utility serving Las Vegas, rues the optimism of those bygone days.  “We had a fifty-year, reliable water supply,” she says. “By 2002, we had no water supply. We were out. We were done. I swore to myself we’d never do that again.”

In 2000, the lake began to fall — like a boulder off a cliff, bouncing a couple of times on the way down. Its water level dropped a staggering 130 feet, stopping less than seven feet above the stage that would have triggered reductions in downstream deliveries. Then — and here’s the good news, just in case you were wondering — last winter, it snowed prodigiously up north in Colorado, Utah, and Wyoming.

The spring and summer run-off from those snowpacks brought enormous relief. It renewed what we in the Southwest like to call the Hydro-Illogic cycle: when drought comes, everybody wrings their hands and promises to institute needed reform, if only it would rain a little. Then the drought breaks or eases and we all return to business as usual, until the cycle comes around to drought again.

So don’t be fooled.  One day, perhaps soon, Lake Mead will renew its downward plunge.  That’s a certainty, the experts tell us.  And here’s the thing: the next time, a sudden rescue by heavy snows in the northern Rockies might not come. If the snowpacks of the future are merely ordinary, let alone puny, then you’ll know that we really are entering a new age.

And climate change will be a major reason, but we’ll have done a good job of aiding and abetting it. The states of the so-called Lower Basin of the Colorado River — California, Arizona, and Nevada — have been living beyond their water means for years. Any departure from recent decades of hydrological abundance, even a return to long-term average flows in the Colorado River, would produce a painful reckoning for the Lower Basin states.  And even worse is surely on the way.

Just think of the coming Age of Thirst in the American Southwest and West as a three-act tragedy of Shakespearean dimensions.

The Age of Thirst: Act I

The curtain in this play would surely rise on the Colorado River Compact of 1922, which divided the river’s water equally between the Upper and Lower Basins, allocating to each annually 7.5 million acre-feet, also known by its acronym “maf.” (An acre-foot suffices to support three or four families for a year.) Unfortunately, the architects of the compact, drawing on data from an anomalously wet historical period, assumed the river’s average annual flow to be about 17 maf per year.  Based on reconstructions that now stretch back more than 1,000 years, the river’s long-term average is closer to 14.7 maf.  Factor in evaporation from reservoirs (1.5 maf per year) and our treaty obligation to Mexico (another 1.5 maf), and the math doesn’t favor a water-guzzling society.

Nonetheless, the states of the Lower Basin have been taking their allotment as if nothing were wrong and consequently overdrafting their account by up to 1.3 maf annually.  At this rate, even under unrealistically favorable scenarios, the Lower Basin will eventually drain Lake Mead and cutbacks will begin, possibly as soon as in the next few years.  And then things will get dicier because California, the water behemoth of the West, won’t have to absorb any of those cutbacks.

Here’s one of the screwiest quirks in western water law: to win Congressional approval for the building of a monumental aqueduct, the Central Arizona Project (CAP), which would bring Colorado River water to Phoenix and Tucson, Arizona agreed to subordinate its Colorado River water rights to California’s.  In that way, the $4 billion, 336-mile-long CAP was born, and for it Arizona paid a heavy price. The state obliged itself to absorb not just its own losses in a cutback situation, but California’s as well.

Worst case scenario: the CAP aqueduct, now a lifeline for millions, could become as dry as the desert it runs through, while California continues to bathe. Imagine Phoenix curling and cracking around the edges, while lawn sprinklers hiss in Malibu. The contrast will upset a lot of Arizonans.

Worse yet, the prospective schedule of cutbacks now in place for the coming bad times is too puny to save Lake Mead.

The Age of Thirst: Act II

While that Arizona-California relationship guarantees full employment for battalions of water lawyers, a far bigger problem looms: climate change. Models for the Southwest have been predicting a 4ºC (7.2ºF) increase in mean temperature by century’s end, and events seem to be outpacing the predictions.

We have already experienced close to 1º C of that increase, which accounts, at least in part, for last summer’s colossal fires and record-setting temperatures — and it’s now clear that we’re just getting started.

The simple rule of thumb for climate change is that wet places will get wetter and dry places drier. One reason the dry places will dry is that higher temperatures mean more evaporation. In other words, there will be ever less water in the rivers that keep the region’s cities (and much else) alive. Modeling already suggests that by mid-century surface stream-flow will decline by 10% to 30%.

Independent studies at the Scripps Oceanographic Institute in California and the University of Colorado evaluated the viability of Lake Mead and eventually arrived at similar conclusions: after about 2026, the risk of “failure” at Lake Mead, according to a member of the Colorado group, “just skyrockets.” Failure in this context would mean water levels lower than the dam’s lowest intake, no water heading downstream, and the lake becoming a “dead pool.”

If — perhaps “when” is the more appropriate word — that happens, California’s Colorado River Aqueduct, which supplies water to Los Angeles, San Diego, and the All-American Canal, which sustains the Imperial and Coachella Valleys, will go just as dry as the Central Arizona Project aqueduct. Meanwhile, if climate change is affecting the Colorado River’s watershed that harshly, it will undoubtedly also be hitting the Sierra Nevada mountain range.

The aptly named Lester Snow, a recent director of California’s Department of Water Resources, understood this. His future water planning assumed a 40% decline in runoff from the Sierras, which feeds the California Aqueduct. None of his contemplated scenarios were happy ones. The Colorado River Aqueduct and the California Aqueduct make the urban conglomerations of southern California possible. If both fail at once, the result will be, as promised, the greatest water crisis in the history of civilization.

Only Patricia Mulroy has an endgame strategy for the demise of Lake Mead. The Southern Nevada Water Authority is, even now, tunneling under the lake to install the equivalent of a bathtub drain at close to its lowest point. At a cost of more than $800 million, it will drain the dregs of Lake Mead for Las Vegas.

Admittedly, water quality will be a problem, as the dead pool will concentrate pollutants. The good news, according to the standard joke among those who chronicle Sin City’s improbable history, is that the hard-partying residents and over-stimulated tourists who sip from Lake Mead’s last waters will no longer need to purchase anti-depressants. They’ll get all the Zoloft and Xanax they need from their tap water.

And only now do we arrive at the third act of this expanding tragedy.

The Age of Thirst: Act III

Those who believe in American exceptionalism hold that the historical patterns shaping the fate of other empires and nations don’t apply to the United States. Be that as it may, we are certainly on track to test whether the U.S. is similarly inoculated against the patterns of environmental history.

Because tree rings record growing conditions year by year, the people who study them have been able to reconstruct climate over very long spans of time. One of their biggest discoveries is that droughts more severe and far longer than anything known in recent centuries have occurred repeatedly in the American Southwest. The droughts of the Dust Bowl in the 1930s, of the 1950s, and of the period from 1998 to 2004 are remembered in the region, yet none lasted a full decade.

By contrast, the drought that brought the civilization of the ancestral Puebloans, or Anasazi, centered at Chaco Canyon, to its knees in the twelfth century, by contrast,lasted more than 30 years. The one that finished off Mesa Verdean culture in the thirteenth century was similarly a “megadrought.”

Jonathan Overpeck, a climate scientist at the University of Arizona who played a major role in the Nobel-Prize-winning work of the Intergovernmental Panel on Climate Change, tells me that the prospect of 130° F days in Phoenix worries him far less than the prospect of decades of acute dryness. “If anything is scary, the scariest is that we could trip across a transition into a megadrought.” He adds, “You can probably bet your house that, unless we do something about these greenhouse gas emissions, the megadroughts of the future are going to be a lot hotter than the ones of the past.”

Other scientists believe that the Southwest is already making the transition to a“new climatology,” a new normal that will at least bring to mind the aridity of theDust Bowl years. Richard Seager of Columbia University, for instance, suggests that “the cycle of natural dry periods and wet periods will continue, but… around a mean that gets drier. So the depths — the dry parts of the naturally occurring droughts — will be drier than we’re used to, and the wet parts won’t be as wet.”

Drought affects people differently from other disasters. After something terrible happens — tornados, earthquakes, hurricanes — people regularly come together in memorable ways, rising above the things that divide them. In a drought, however, what is terrible is that nothing happens. By the time you know you’re in one, you’ve already had an extended opportunity to meditate on the shortcomings of your neighbors. You wait for what does not arrive. You thirst. You never experience the rush of compassion that helps you behave well. Drought brings out the worst in us.

After the Chacoan drought, corn-farming ancestral Puebloans still remained in the Four Corners area of the Southwest. They hung on, even if at lower population densities. After the Mesa Verdean drought, everybody left.

By the number of smashed crania and other broken bones in the ruins of the region’s beautiful stone villages, archaeologists judge that the aridifying world of the Mesa Verdeans was fatally afflicted by violence. Warfare and societal breakdown, evidently driven by the changing climate, helped end that culture.

So it matters what we do. Within the limits imposed by the environment, the history we make is contingent, not fated. But we are not exactly off to a good start in dealing with the challenges ahead. The problem of water consumption in the Southwest is remarkably similar to the problem of greenhouse gas pollution. First, people haggle to exhaustion over the need to take action; then, they haggle over inadequate and largely symbolic reductions. For a host of well-considered, eminently understandable, and ultimately erroneous reasons, inaction becomes the main achievement. For this drama, think Hamlet. Or if the lobbyists who argue for business as usual out west and in Congress spring to mind first, think Iago.

We know at least one big thing about how this particular tragedy will turn out: the so-called civilization of the Southwest will not survive the present century, not at its present scale anyway. The question yet to be answered is how much it will have to shrink, and at what cost. Stay tuned. It will be one of the greatest, if grimmest, shows on Earth.

William deBuys is the author of seven books, including the just published A Great Aridness: Climate Change and the Future of the American Southwest (a Pulitzer Prize finalist), and The Walk (an excerpt of which won a Pushcart Prize). He has long been involved in environmental affairs in the Southwest, including service as founding chairman of the Valles Caldera Trust, which administers the 87,000-acre Valles Caldera National Preserve in New Mexico. To listen to Timothy MacBain’s latest Tomcast audio interview in which deBuys discusses the water politics of the American West click here, or download it to your iPod here

Copyright 2011 William deBuys

Second message in a bottle

Continuing the advice you might offer to the next generation?

On the 1st December I published the first message.  It had been inspired by a conversation with Peter McCarthy, who lives and works in Bristol, England.  Here’s a little of what I wrote,

Anyway, Peter and I were talking about the sorts of qualities that enable some young people to take a risk-based entrepreneurial approach to life.  Peter gave me the links to three videos that he thought were especially relevant to the notion of achieving success in life.  So over the next few days I want to share those videos with you, dear reader.  To me, these videos are, indeed, the essence of the messages that any person, especially those the wrong side of 60, would wish to leave in a bottle floating down the river of life.

So to the second message which is a recording of the talk that Sir Ken Robinson gave to the TED Talks conference in Monterey in February, 2006.  It has been widely seen for all the right reasons; Sir Ken offers some powerful common-sense and a wonderful message for all the young people out there.  As Sir Ken’s website says,

Sir Ken Robinson, PhD is an internationally recognized leader in the development of education, creativity and innovation.  He is also one of the world’s leading speakers with a profound impact on audiences everywhere.  The videos of his famous 2006 and 2010 talks to the prestigious TED Conference have been seen by an estimated 200 million people in over 150 countries.

Read the rest of Sir Ken’s background here.

So with no more ado, here’s the film, watched by nearly 3 million people!

 

Too late to be a pessimist

A life-changing film

Last Friday I published a Post under the title of The power of truth.  Just 5 minutes long, the YouTube video was powerful, starkly so.  I wrote at the end of that article, “The principal source for the footage was Yann Arthus-Bertrand’s incredible film HOME.”

Jean and I watched Yann Arthus-Bertrand’s film last Friday night and to say that we were moved would be pitiful compared to the emotional impact it really had.  Take a look at the film trailer; it’s a little over 3 1/2 minutes long.  (But please don’t use that as a substitute for watching the full film, see below!)

Home is a 2009 documentary by Yann Arthus-Bertrand. The film is entirely composed of aerial shots of various places around Earth. It shows the diversity of life on Earth and how humanity is threatening the ecological balance of the planet. The movie was released simultaneously on June 5th in cinemas all over the world, on DVD and on YouTube. Released on the same date in 50 countries is a world record for any film release in history. The film is 100% free, and no profits will be made from its release or future showings.

I wasn’t going to add anything other than a brief introduction to the main film.  However, an article in The Economist The World in 2012 caught my eye and seemed especially relevant to promoting the message carried by the film. Sheryl Sandberg, chief operating officer of Facebook, wrote about the power of social media and how it would be even more evident in 2012.  This is the paragraph that caught my eye,

Expressing our authentic identity will become even more pervasive in the coming year. Profiles will no longer be outlines, but detailed self-portraits of who we really are, including the books we read, the music we listen to, the distances we run, the places we travel, the causes we support, the videos of cats we laugh at, our likes and our links. And, yes, this shift to authenticity will take getting used to and will elicit cries about lost privacy. But people will increasingly recognise the benefits of such expression. Because the strength of social media is that it empowers individuals to amplify and broadcast their voices. The truer that voice, the louder it will sound and the farther it will reach.

That last sentence jumped out at me, “The truer that voice, the louder it will sound and the farther it will reach.” Mull on that as you watch the film and, please, please, please if you support the need to return to a harmonious relationship with the planet spread the word as far and wide as you can.

Please promise yourself to sit down quietly and watch it uninterrupted.  And if you feel so minded to add comments to this Post please do – would be delighted to have your feedback.

HOME

We are living in exceptional times. Scientists tell us that we have 10 years to change the way we live, avert the depletion of natural resources and the catastrophic evolution of the Earth’s climate.

The stakes are high for us and our children. Everyone should take part in the effort, and HOME has been conceived to take a message of mobilization out to every human being.

For this purpose, HOME needs to be free. A patron, the PPR Group, made this possible. EuropaCorp, the distributor, also pledged not to make any profit because Home is a non-profit film.

HOME has been made for you : share it! And act for the planet.

Yann Arthus-Bertrand

HOME official website
http://www.home-2009.com

PPR is proud to support HOME
http://www.ppr.com

HOME is a carbon offset movie
http://www.actioncarbone.org

More information about the Planet
http://www.goodplanet.info

So settle down and watch what may be one of the most important films of your life.

The power of truth

Three things cannot be long hidden: the sun, the moon, and the truth.

The above is a quote attributed to the Buddha.  It is perfect as an introduction to today’s piece.

When I sat down at my PC yesterday afternoon I was planning to finish off a Post about the BBC’s fabulous Frozen Planet TV series.  But a check of my email changed all that.  Because there was an email from Merci O., someone in Payson that Jean and I know well.  Merci had sent me an email with a link to the following YouYube video.

Watch and be moved.

This is a non-commercial attempt to highlight the fact that world leaders, irresponsible corporates and mindless ‘consumers’ are combining to destroy life on earth. It is dedicated to all who died fighting for the planet and those whose lives are on the line today. The cut was put together by Vivek Chauhan, a young film maker, together with naturalists working with the Sanctuary Asia network (www.sanctuaryasia.com).

Content credit: The principal source for the footage was Yann Arthus-Bertrand’s incredible film HOME http://www.homethemovie.org/. The music was by Armand Amar. Thank you too Greenpeace and http://timescapes.org/

First message in a bottle

So what advice would you offer to the next generation?

One of the biggest differences between Homo sapiens and Canis lupus familiaris is that the latter is such a master of living in the present that, one assumes, the issue of worrying about the next generation is largely irrelevant.  Definitely not so with us humans.

A few weeks back I was chatting to a good friend of mine, Peter McCarthy, whom I first met when I undertook a sales and marketing project for one his companies.  That was many years ago but Peter and I have stayed in touch.  One of the many attributes about Peter that I have admired over the years is his instinctive and thoughtful approach to entrepreneurism.  Peter is still an active entrepreneur.

Anyway, Peter and I were talking about the sorts of qualities that enable some young people to take a risk-based entrepreneurial approach to life.  Peter gave me the links to three videos that he thought were especially relevant to the notion of achieving success in life.  So over the next few days I want to share those videos with you, dear reader.  To me, these videos are, indeed, the essence of the messages that any person, especially those the wrong side of 60, would wish to leave in a bottle floating down the river of life.

So to the first.  The address by Steve Jobs to the University of Stanford’s 114th Commencement on June 12, 2005.  Already watched at the time of writing this by 12,690,731 persons!

The Greatest Crash – footnote

The story that could run for an awfully long time!

I rather revealed my newness as a US resident by posting my review of David Kauders’ book The Greatest Crash over 2 days last week,  one of them being Thanksgiving Day.  Despite that 1,895 people viewed my review which was entitled The end of an era.

A week has now passed since that review.  I was curious to see what sorts of headlines had been making the news in the last 7 days.  It’s just a random trawl through those items that have captured my attention.

Let’s start with the Financial Times, November 27th,

The eurozone really has only days to avoid collapse

By Wolfgang Münchau

In virtually all the debates about the eurozone I have been engaged in, someone usually makes the point that it is only when things get bad enough, the politicians finally act – eurobond, debt monetisation, quantitative easing, whatever. I am not so sure. The argument ignores the problem of acute collective action.

Last week, the crisis reached a new qualitative stage. With the spectacular flop of the German bond auction and the alarming rise in short-term rates in Spain and Italy, the government bond market across the eurozone has ceased to function.

Wolfgang concludes his article thus,

Italy’s disastrous bond auction on Friday tells us time is running out. The eurozone has 10 days at most.

Then my print copy of The Economist that arrived on the 26th had this lurid cover page,

Unless Germany and the ECB move quickly, the single currency’s collapse is looming

The leader article contains this paragraph,

Past financial crises show that this downward spiral can be arrested only by bold policies to regain market confidence. But Europe’s policymakers seem unable or unwilling to be bold enough. The much-ballyhooed leveraging of the euro-zone rescue fund agreed on in October is going nowhere. Euro-zone leaders have become adept at talking up grand long-term plans to safeguard their currency—more intrusive fiscal supervision, new treaties to advance political integration. But they offer almost no ideas for containing today’s conflagration.

and a few paragraphs later, this,

This cannot go on for much longer. Without a dramatic change of heart by the ECB and by European leaders, the single currency could break up within weeks. Any number of events, from the failure of a big bank to the collapse of a government to more dud bond auctions, could cause its demise. In the last week of January, Italy must refinance more than €30 billion ($40 billion) of bonds. If the markets balk, and the ECB refuses to blink, the world’s third-biggest sovereign borrower could be pushed into default.

Then on Sunday, 27th, MISH’s Trend Analysis blogsite reveals,

ICAP Plc, the world’s largest inter-dealer broker (one that carries out transactions for financial institutions rather than private individuals), is now Testing Trades In Greek Drachma Against Dollar, Euro

ICAP Plc is preparing its electronic trading platforms for Greece’s potential exit from the euro and a return to the drachma, senior executives at the inter-dealer broker said Sunday.

ICAP is the latest firm to disclose such preparations, joining the growing ranks of banks, governments and other key players in the global financial system whose officials are worried enough about the stability of the common currency to be making contingency plans for a possible break-up.

Then Bloomberg published an article by Peter Boone and Simon Johnson, the latter of Baseline Scenario fame, that opened as follows,

Investors sent Europe’s politicians a painful message last week whenGermany had a seriously disappointing government bond auction. It was unable to sell more than a third of the benchmark 10-year bonds it had sought to auction off on Nov. 23, and interest rates on 30-year German debt rose from 2.61 percent to 2.83 percent. The message? Germany is no longer a safe haven.

and concluded,

Ultimately, an integrated currency area may remain in Europe, albeit with fewer countries and more fiscal centralization. The Germans will force the weaker countries out of the euro area or, more likely, Germany and some others will leave the euro to form their own currency. The euro zone could be expanded again later, but only after much deeper political, economic and fiscal integration.

Tragedy awaits. European politicians are likely to stall until markets force a chaotic end upon them. Let’s hope they are planning quietly to keep disorder from turning into chaos.

Finally, on the 29th the BBC News website carried details of the Autumn Statement made by British Chancellor, George Osborne, to Parliament.

Osborne confirms pay and jobs pain as growth slows

Chancellor George Osborne has said public sector pay rises will be capped at 1% for two years, as he lowered growth forecasts for the UK economy.

The number of public sector jobs set to be lost by 2017 has also been revised up from 400,000 to 710,000.

Borrowing and unemployment are set to be higher than forecast and spending cuts to carry on to 2017, he admitted.

Just look at that figure of public sector job losses – 710,000!

Well that’s more than enough from me but it does surely endorse the opening views that David Kauders expounded in his book, as carried in my review, and reproduced here,

Starting with the first sentence, David sets out the core problem;

This book argues that it is impossible to expand the financial system much further.

expanding this a few paragraphs later,

This is the financial system limit: lack of new borrowing plus excessive weight of debt obligations from past borrowing combine to slow economies down. This is the barrier whichever way policy makers turn. It is like the lid on a boiling kettle. Enough steam can lift it for a while but it always snaps back into place. The financial system limit is a roadblock preventing growth.

A few pages later in this opening chapter ‘The roadblock preventing growth‘ this limit is explained thus,

Policy contradictions also show us that the financial system has reached a roadblock. The glaring conflict between bailout and austerity is at the core. Each bailout or stimulus requires creation of more credit, leading to false financial speculation, and for a short while markets recover their poise. The threat of inflation returns. Later, bad debts rise, the markets tumble again and a new crisis emerges. Austerity, the alternative policy, cuts spending thereby cutting the immediate level of economic activity and bringing economic decline more quickly than the stimulus alternative. Whichever way they turn, the authorities are damned.

You can understand why I called this Post a ‘footnote’ not an endnote.

More on this new era

Some reflections from Herbert Marshall McLuhan

In a sense this piece today connects with the conclusions from my review of David Kauders’ new book The Greatest Crash; that we are transitioning into a new era.

That’s why I was fascinated to come across a long essay about Herbert Marshall McLuhan written by Michael Valpy and published in the The Globe and Mail last July.

Marshall McLuhan in the 1970s

WikiPedia has a comprehensive description of Mr. McLuhan.

Let me quote some extracts from that article to illustrate why I made the connection with my book review.

The University of Toronto professor of English credited with foreseeing the Internet 30 years before it was invented and broadcasting scores of ideas about how electronic communications media was changing the way humans think has been redeemed from labels of McLuhanacy and psuedo-scientific charlatanism.

His work no longer is described, as it was in one erudite journal of the 1970s, as “a hoax so gigantic that it shows every sign of becoming an international intellectual scandal.”

Later on in the article,

Deciding recently to pay a visit to the McLuhan coach house, she wrote: “To be perfectly honest, I had never heard of McLuhan until I moved into residence at SMC, and accidentally stumbled into the book and media studies program. But as I quickly learned, Marshall McLuhan is kind of a big deal. You know that phrase that you hear everywhere: ‘The medium is the message?’ Yeah, that was McLuhan.”

And McLuhan’s problem – one of his problems – is that his message couldn’t escape his medium. As Douglas Coupland points out in a 2009 McLuhan biography, the wonderful, whimsical, boundlessly optimistic and imaginative sixties society that embraced him and lapped up his ideas morphed into the gloom of a change-fatigued seventies society that tired of hearing from him. Yet the brand remained strong. “You know that phrase that you hear everywhere: ‘The medium is the message?’” Ms. Kellogg asks us. “Yeah, that was McLuhan.”

Think of his intellectual history as a journey between two mountain peaks passing through a shadowed valley.

When one thinks of the power of the many new tools we lump under the title ‘social media’ then it’s easy to think that the way that humans are now communicating will have profound implications.  Even this humble Blog was read by over 31,000 in the month of October.  Back to the article,

McLuhan believed that each new technology created a new human environment and thus a new way of thinking. The medium-is-the-message meant that the content of electronic media is insignificant; it is the medium itself that has the greater impact on the environment. In other words, it wasn’t what we were seeing on TV that was important; it was the fact that we were watching TV (and not doing other things) that altered our brains.

And because, as Prof. Francis points out, McLuhan saw humans as essentially communicative animals, he believed it was the technologies of communication that were primary in shaping who we were, what we thought, and how we acted, with effects that often were subliminal and therefore not recognized.

Finally, the article concludes thus,

To truly understand McLuhan and his ideas, says Prof. Scheffel-Dunand, students have to read him.

Most students of McLuhan today, she says, read scholars who write about McLuhan rather than read McLuhan himself. Which is a mistake, she says, because McLuhan wrote as a poet: he wrote metaphorically, aphoristically, he wrote in what he called “mosaics.”

Biographer Philip Marchand agrees. “My suggestion for students is to begin with the articles written by McLuhan – ‘Acoustic Space’ and ‘The Effect of the Printed Book on the language of the 16th century’ and a couple others that appear in the anthology entitled Explorations in Communication. These articles are lucid, comprehensible introductions to McLuhan’s thought.”

To rejoin UpbeaT blogger Emily Kellogg on her coach house tour: “I don’t want to bore you, dear readers, but I just can’t help gushing. I dig this stuff. These kind of conversations, are the things that make an undergraduate degree worth pursuing. They’re the ones that give you an adrenalin rush because you’re thinking so quickly – and your brain kind of feels like a trapeze artist jumping from idea to idea.

There’s also something innately cool about having an intellectual conversation that ranges from iPhones to Heidegger in five seconds flat in the place that housed Marshall McLuhan as he wrote the books that revolutionized the field of media research.”

Ms. Kellogg: 2011 medium of McLuhan’s message.

Michael Valpy is a freelance writer based in Toronto.

The end of an era, part two.

A review of David Kauder’s recently published book, The Greatest Crash.

Details of the availability of the book are included at the end of the review.

Extracts from the book included are with grateful thanks to Sparkling Books.

Part One of this review was published yesterday which needs to be read before Part Two.

——————-

Chapter 5 continues by examining the over-bearing consequences of excessive public spending, excessive Government regulations, substitute taxation, weakness of Treasury forecasts, and so on. While these are UK issues, there is no doubt that similar restraints of free enterprise exist in many other western nations.

In Chapter 6, ‘Group Think‘, David looks at the strange ways in which we form opinions.  It’s a topic that has been discussed and written about widely but the point behind this chapter is that people have in great part lost the ability to discern truth from fiction, with terrible implications when it comes to understanding how individuals are affected by government and bureaucratic institutions.

The chapter closes;

One of the remarkable points that I have found in writing this book is that many of the detailed errors, incorrect policies et al, have already been amply documented by others. But we never learn. The delegated society, the strength of lobby groups and vulnerability of our political system to pressure, the sheer volume of noise in the media and on the Internet, the immediacy of the demands of daily life, all combine to make our collective memory rather short.

Amen to that!

Chapter 7, ‘Academic differences of opinion‘, was surprisingly short at just 6 1/2 pages. One would have thought the subject worthy of a much longer review especially as David was exploring the fundamental differences between Keynesian and Ricardian economic theories and opportunities for alternative theories. Must say that that I laughed out loud (David’s book is a little short on humour!) at the sentence on p.127 that ran, “One correspondent writing to the Financial Times proposed that economics should be declared a failing discipline, economists as not fit for purpose, and a physicist put in charge of sorting their theories out.

Chapter 8, ‘The dark side of capital markets‘, is the penultimate chapter and quite a technical one at that. But David manages to trip through esoteric aspects, well esoteric to the lay reader, in a manner that keeps one involved.   Here’s an example from early on in the chapter.

Capital markets follow a long cycle beyond the experience of most practitioners, detectable only by understanding history and then applying this understanding to contemporary conditions.

It didn’t mean much to me. Then the next sentence;

The principles are identical for any market where prices depend on the supply of credit: equities, bonds, property and commodities are all markets where the prices must relate to the availability of credit.

That, at least, was understood but still the penny hadn’t dropped. Then came;

Bond prices prosper when credit is lacking while the other three prosper when credit is abundant.

That then made sense to me but still only at some academic level. David then followed those sentences with these two paragraphs;

The whole market cycle consists of bull market followed by bear market, as surely as night follows day. The bull market in assets is driven by an increasing supply of credit and economic expansion, since more credit leads to higher prices. The bear market in assets is driven by less credit and economic contraction; there is no purchasing power to keep asset prices high. Only fixed interest bonds are contra-cyclical, declining in price as credit expands and rising in price as credit sinks.

There are two useful theories for analysing the whole market cycle: conversion flow and Dow theory.

So in half-a-page of text, the book effectively educated me and then showed the relevance of that learning to the world I was living in. Cleverly done!

Chapter 9, ‘The attitude change‘, is, without doubt, a clincher of a close to this fascinating book. The sentiments conveyed in this chapter are so unexpected that, forgive me, it would be wrong to explicitly refer to them.  Buy the book!

Let me just say that the last chapter fully endorsed me calling this review The End of an Era.

Overall conclusions

This is an important book from a writer who has both the academic and professional experience to enable him to form the views that he expresses. Only time will tell if the whole scenario that is envisaged by Mr. Kauders will play out as he expects. My personal view is that it will.

For individuals and business alike, reading The Greatest Crash will inform you in a manner that I would argue is critical when one notes the precarious and potentially unstable period we are living through. The decisions readers make after reading the book are beyond the remit of this review and, of course, David Kauders, but, at least, read the book!

Prof. Myddelton in the book’s introduction wrote, “But one of the things we need now is new thinking on the fundamentals.” Perhaps not new thinking on fundamentals, as the Prof. puts it, but a reinstatement of core fundamental values.

I am not alone from sensing that the world, especially the western world, is transitioning from an era of greed and materialism, seeing a world of unlimited resources, to a different societal relationship with planet Earth, the only planet we have. A transition across all layers of society towards the values of truth, integrity and compassion; values whose day has come.

The Greatest Crash reinforces immensely my notion that this truly is the end of an era.

——————

Want to buy The Greatest Crash?  The ebook was published in October worldwide, the  paperback published in the UK on the 1st November UK, the hardcover being released any day now in the UK.  For North America both the paperback and hardcover versions are being published on 1st February, 2012.

Full details from the Sparkling Books webpage here.

Copyright © 2011 Paul Handover

The end of an era, part one.

A review of David Kauder’s recently published book, The Greatest Crash.

Details of the availability of the book are included at the end of both parts of my review, part two is published tomorrow.

Extracts from the book included are with grateful thanks to Sparkling Books.

Personal introduction.

Back in the late 90s, when I was living in England, I attempted to bolster my self-employed income by investing and trading in equities. It was a frustrating game, game being the right word! One day I was lamenting this to a close friend and he gave me the name of David Kauders at Kauders Portfolio Management and suggested I might like to contact him.

I followed my friend’s recommendation and met with David. What he outlined at that meeting all those years ago was mind-blowing, no other way of putting it. Essentially, David predicted a financial and economic crisis of huge proportions. He convinced me of the likelihood of that crisis and in November 2001 I became a fee-paying client. As the world now knows that prediction came to fruition. My anticipated residency in the USA meant continuing to be a client was not possible, and I ceased being a client of Kauders Portfolio Management in June 2010.

Thus not only am I deeply indebted to my friend for referring me to David but also unable to write this review from an unprejudiced point of view.

The Greatest Crash

The book, released in paperback in England in October 2011, published by Sparkling Books, is subtitled ‘How contradictory policies are sinking the global economy‘. Frankly, that subtitle doesn’t do much for me. A clearer message that comes from the book is this: the economic world has reached a ‘systems limit’. Indeed, the term systems limit is used widely throughout the book.

In his introduction to the book, Professor D. R. Myddelton, Chairman of the Institute of Economic Affairs, writes,

Adam Smith said ‘There’s a deal of ruin in a nation’, and it would be a mistake to despair. But one of the things we need now is new thinking on the fundamentals. That is what David Kauders provides in his book ‘The Greatest Crash’.

Without doubt, David achieves that.

Starting with the first sentence, David sets out the core problem;

This book argues that it is impossible to expand the financial system much further.

expanding this a few paragraphs later,

This is the financial system limit: lack of new borrowing plus excessive weight of debt obligations from past borrowing combine to slow economies down. This is the barrier whichever way policy makers turn. It is like the lid on a boiling kettle. Enough steam can lift it for a while but it always snaps back into place. The financial system limit is a roadblock preventing growth.

A few pages later in this opening chapter ‘The roadblock preventing growth‘ this limit is explained thus,

Policy contradictions also show us that the financial system has reached a roadblock. The glaring conflict between bailout and austerity is at the core. Each bailout or stimulus requires creation of more credit, leading to false financial speculation, and for a short while markets recover their poise. The threat of inflation returns. Later, bad debts rise, the markets tumble again and a new crisis emerges. Austerity, the alternative policy, cuts spending thereby cutting the immediate level of economic activity and bringing economic decline more quickly than the stimulus alternative. Whichever way they turn, the authorities are damned.

In the next chapter, ‘Evolution by trial and error‘, David writes about economic cycles and reminds his readers that the long economic cycle is often “beyond the practical experiences of our working lifetimes“.  Then later suggesting that because we have seen the greatest period of inflation ever since the end of World War Two, ergo “the unwelcome lesson from history is that the greatest deflation should follow.

In Chapter 4, ‘An Era of Wishful Thinking‘, the spotlight is put on the horrific policy errors that have been made for decades, try these three examples (there is a longer list in the book),

  • Policy makers believed that debt could expand indefinitely, at no cost.
  • Nobody realised that interest rate rises would make existing borrowing unaffordable and cause a wave of defaults.
  • The world was swamped with so many detailed requirements and standards that nobody could understand how they all fitted together. It was assumed that ‘transparency’, i.e. extensive detail, would solve the inability to comprehend how the parts made the whole.

Part Two of the review, continuing with Chapter 5 is tomorrow.

Want to buy The Greatest Crash?  The ebook was published in October worldwide, the  paperback published in the UK on the 1st November UK, the hardcover being released any day now in the UK.  For North America both the paperback and hardcover versions are being published on 1st February, 2012.

Full details from the Sparkling Books webpage here.

Copyright © 2011 Paul Handover