Saturday, November 24, 2012

High-Fructose Corn Syrup Linked to Autism

By Anna Hunt, BLN

A recent study published in the journal Clinical Epigenetics reveals that high-fructose corn syrup (HFCS), which is a highly-processed chemical sweetener used in many processed foods and beverages, has been identified as a major factor in the rise of autism in the United States.

The rise of autism spectrum disorders in the United States has been staggering.
“The number of children ages 6 to 21 in the United States receiving special education services under the autism disability category increased 91% between 2005 to 2010 while the number of children receiving special education services overall declined by 5%.” – Dufault et al. Clinical Epigenetics, 2012
The ingestion of heavy metals, such as mercury (Hg), into the body is having a profound effect on the neurodevelopment of children. HFCS is not only exposing children’s bodies to mercury, but it is also responsible for inhibiting the elimination of toxins and heavy metals due to how it depletes the body of the natural mineral zinc.
“…the HFCS characteristics most likely contributing to autism include the zinc depleting effect that comes from consuming HFCS and certain food colors found in processed foods, and the additional Hg exposure that may occur from the low Hg concentrations sometimes found in HFCS as a result of the manufacturing process [4,17].” – Dufault et al. Clinical Epigenetics, 2012

FIGURE 1. The consumption of HFCS has increased substantially in the US over the 1980’s and 90’s.






(Source: http://www.clinicalepigeneticsjournal.com/content/4/1/6/figure/F3)

The study concludes:
Consumption of HFCS may lead to mineral imbalances, including Zn [Zinc], Ca [Calcium] and P [Phosphorus] loss and Cu [Copper] gain and is a potential source of inorganic mercury exposure. These mineral imbalances create multiple pathways for oxidative stress in the brain from exposure to OP [organophosphate] pesticides and heavy metals, such as Pb [Lead] or Hg [Mercury].” - Dufault et al. Clinical Epigenetics, 2012
As health authorities and the FDA continue to pay little attention to ingredients such as HFCS, it is up to us to educate ourselves, other parents and our children. The importance of eating organic, pesticide-free fruits and vegetables, as well as whole foods rich in vitamins, minerals and nutrients such as Omega-3 Fatty acids, while eliminating processed foods from our diets, has never been more clear as public health epidemics skyrocket.

The study also identified the presence of mercury in vaccines and the overuse of agricultural pesticides, as potential causal factors for the increase in the rise of Autism in the United States.

Sources: http://www.clinicalepigeneticsjournal.com/content/pdf/1868-7083-4-6.pdf

Battle Looms with the UN Over Pot Legalization

November 21, 2012
A couple of weeks ago, following Colorado and Washington’s historic vote to become the first states to legalize marijuana for recreational use, a piece titled Colorado Legalizes Marijuana: Your Move Eric Holder subsequently went viral.  Now the most useless and corrupt organization on the planet has weighed in – the United Nations.

The head of the UN drug watchdog (the International Narcotics Control Board or INCB), Raymond Yans, has come out in a press release essentially instructing the Attorney General of the United States to enforce Federal Prohibition of pot against the rights of the states to implement a law that is not only Constitutional, but a perfect example of a free people deciding what they want for themselves.

Perhaps that is why the United Nations is so panicky about the legislation in Colorado and Washington.  The organization consists of a bunch of global government-craving, control-freak bureaucrats, and as such some welcome this battle as an opportunity to marginalize it further and expose them for the undemocratic creeps they really are.  Anyone remember the massive corruption within the UN’s Oil for Food Program?  Who would let these creeps decide what every citizen in every corner of the planet can put into their own bodies.

From the UN press release:
VIENNA, 15 November (UN Information Service) – The President of the International Narcotics Control Board (INCB), Raymond Yans, has voiced grave concern about the outcome of recent referenda in the United States of America that would allow the non-medical use of cannabis by adults in the states of Colorado and Washington, and in some cities in the states of Michigan and Vermont. Mr. Yans stated that “these developments are in violation of the international drug control treaties, and pose a great threat to public health and the well-being of society far beyond those states”.

He went on to further state that for the international drug control system to function effectively, to achieve its aim of ensuring availability of drugs for medical purposes while preventing their abuse, the conventions must be universally adhered to and implemented by all States. In this regard, Mr. Yans stressed that national laws, policies and practices in drug abuse prevention and control should be fully aligned with the conventions.
The INCB President requested the Government of the United States to take the necessary measures to ensure full compliance with the international drug control treaties within the entire territory of the United States, in order to protect the health and well-being of its citizens.

The full press release is here.  It’s one page, I suggest you read it.  Such an intense concentration of hyperbole, panic and propaganda could only be created by the United Nations.

Are the Feds Preparing for a Civil War? Infographic


Visualizing the World's Wealthiest Humans

Brown Friday: Why do people poop in retail stores?

By David Ferguson - RAW Story
Friday, November 23, 2012

Unless you’ve worked in retail, you’ve probably never heard of it. If you have worked in retail, then you know that sometimes, if you will, shit gets real. For some unfathomable reason, people poop in retail clothing stores, particularly in fitting rooms and inside the circular clothing racks called “rounders,” but other times they’ll just do it in a corner or, perversely, on the floor right next to the toilet.

As a former employee of Gap, Inc. and Borders Books, this reporter can confirm that the phenomenon exists. With depressing frequency, often during the busiest and most hectic times of the year — Black Friday weekend and the weeks before Christmas — sales employees or managers will open a fitting room door, or brush aside a pile of clothes to find that some shopper, large or small, has defecated and left the results behind.

Amanda Atkinson of Athens, Georgia worked in retail for nine holiday seasons as an Old Navy sales associate. She found messes in fitting rooms and in the store’s public restrooms, some of which were truly staggering.

“Obviously you had the ones in the bathroom,” she said, where people would miss the toilet entirely, clog the toilets and walk away, “or they would go out of their way to smear their poop on the walls.”

The worst thing she said she encountered was on the Saturday night of one Black Friday weekend. “There were clothes on the ground everywhere” in one of the store’s “Clearance” areas. Hundreds, if not thousands of shoppers had come through, many trying on items right in the section and then just flinging them to the floor.

“There was a pile of clothes that, like, three people could have slept on, it was so big,” she said. As she dug deeper into the pile, the first thing that hit her was the smell.

“Somebody had gone out of their way to stuff into the very center of the pile, not the bottom, mind you, but the dead center of the pile, a shitty diaper,” she said. “To the point that we couldn’t do anything with the clothes, we had to throw it all out. We couldn’t even go through the clothes and see what we were throwing out because it was just too much of a biohazard. We just threw it all in trash bags and took it outside.”

Alison, who works at an independent bookstore in Lexington, Kentucky, declined to give her last name, but told of an event that occurred in her store, recently, in which an older gentleman “who bought no fewer than ten copies of Shit My Dad Says — and not at the same time,” disappeared into the store bathroom, then departed without her knowing.

“So about ten minutes later, I go back there to check things out,” she said, “Bathroom’s empty, but there’s an odor, for sure. I walk in and I look in the toilet, and it’s completely clean.”

Then, she looked down.

“And all of a sudden I realized there was shit all over the floor. Not only did the guy shit on the floor, but he stepped in it and tracked it through as he left,” she said.

She and her manager tackled the mess. They haven’t seen the customer since.

Raw Story contacted psychologist Jeanne Dugas to find out if perhaps this phenomenon is among the panoply of recognized human fetishes, if maybe the desire to shit undetected in a public place is akin to the thrill that some people get from having sex in a location where they might get caught. In fact, it was the first time she had ever heard of the practice.

“They do what?” she asked. “Really?”

When asked if there might be a particular psychological motivation involved, Dugas replied, “I tell you, I’m at a loss. A, I’ve never heard of that before and B, Holy cow!”

She said that the most charitable explanation she could offer would be that they were unable to make it to the rest room in time to get back for a particular sale item, or maybe they just weren’t up to the fight through the throng of holiday shoppers. To her, however, the acts sound more like aggression.

“I mean, it is, literally, ‘dumping’ on the store,” she said.

“Really, though?” she asked, still grappling with the notion. “People really do that? It’s, like, a thing?”

Indeed it is, and for thousands of retail workers across the country and perhaps around the world, it’s just one more element of the abiding joy that is the holiday sales season. If it’s not the top of the list, then it’s certainly there at Number 2.
++++

Ah, humanity...what a wonder you are...

Grand Theft Wall Street

by MIKE WHITNEY
 
The Federal Housing Administration (FHA) needs a bailout, but don’t expect the media to tell you why. Instead, they’ll give you some baloney about how the agency was used to “stabilize the housing market” following the government takeover of mortgage giants Fannie Mae and Freddie Mac in September of ’08. While there’s some truth to this, it misses the larger point, which is that FHA was used to generate as many toxic mortgages as possible to keep the money flowing into the big Wall Street banks and to prevent housing prices from plunging even further leaving bank balance sheets deeper in the red. That’s what really happened; the FHA was looted to save the banks. It’s another example of grand theft Wall Street. Now take a look at this from Bussinessweek:
“The agency’s financial report last year projected that loans issued before 2009 would result in $26 billion in losses, $14 billion of that from a subset of loans in which sellers were allowed to cover the down payment on behalf of the buyer, often by inflating the price of the house. Congress banned seller-funded down payment loans beginning in 2009.
Still, the risk of many of those mortgages has been transferred to the agency’s more recent books of business because they have been refinanced under FHA’s streamline program, which waives many underwriting requirements to enable borrowers to take advantage of low interest rates. More than 17 percent of all FHA loans were delinquent in September.” (“FHA Said to Set Stage for Treasury Draw as Losses Mount”, Businessweek)
$26 billion here, $26 billion there; pretty soon you’re talking real money.

Explain to me why would anyone in their right mind would allow the seller to pay the down payment? A down payment is intended to prove that the loan applicant is capable of saving money which is a traditional way of determining creditworthiness. Letting the seller put up the down-payment turns the entire process on its head. It’s completely self defeating. It just shows the extent to which the FHA was bending the rules to prop up housing prices to accommodate their Wall Street overlords.

And did you catch that bit about “More than 17 percent of all FHA loans being delinquent in September?” That’s just more proof of fraud, isn’t it? Typically, banks only see delinquency rates of about 1 or 2 percent. The only way you get 17 percent delinquency rate is you’re grabbing people off the streets and signing them up for 30-year loans without checking their credit history. It’s such an obvious scam, it’s laughable. I assure you, even a cursory investigation of loan applications during this period would expose widespread fraud in the mortgage origination process. But, of course, we don’t do criminal investigations anymore because –as Mr Obama says, “I want to look forward, not backward.”

Of course no one in the media would dare to suggest that the FHA was involved in a vast criminal conspiracy to rip off taxpayers. Heaven forbid! But that’s what it amounts to when you issue mortgages to people who YOU KNOW will never be able to repay the debt. It’s premeditated robbery. The FHA was allowing the banks to report record profits and take hefty bonuses on loans that they knew would eventually blow up and be charged to taxpayers. The media calls that “stabilizing the housing market”. I call it raping the public.

Is that too harsh? Maybe there are some skeptics reading this who think that the folks who were in charge at the time (Treasury Secretary Henry Paulson and Fed chairman Ben Bernanke) were doing the best they could under very difficult circumstances? Maybe they think that using FHA to guarantee junk mortgages was the only way to keep the ailing housing market on life support, after all, the country was in the throes of the worst financial crisis since the Great Depression, wasn’t it?

Sure, it was, but that’s what makes the FHA swindle so grotesque, because even in the middle of an economic meltdown, the people in charge only pursued the policies that further enriched their thieving friends. In order to prove that point, we only need to browse the archive at Bussinessweek, where a 2008 article titled “FHA-Backed Loans: The New Subprime”, lays out the basic facts in black and white. Here’s an excerpt:
“The same people whose reckless practices triggered the global financial crisis are onto a similar scheme that could cost taxpayers tons more.
As if they haven’t done enough damage. Thousands of subprime mortgage lenders and brokers—many of them the very sorts of firms that helped create the current financial crisis—are going strong. Their new strategy: taking advantage of a long-standing federal program designed to encourage homeownership by insuring mortgages for buyers of modest means.
You read that correctly. Some of the same people who propelled us toward the housing market calamity are now seeking to profit by exploiting billions in federally insured mortgages. Washington, meanwhile, has vastly expanded the availability of such taxpayer-backed loans as part of the emergency campaign to rescue the country’s swooning economy.
For generations, these loans, backed by the Federal Housing Administration, have offered working-class families a legitimate means to purchase their own homes. But now there’s a severe danger that aggressive lenders and brokers schooled in the rash ways of the subprime industry will overwhelm the FHA with loans for people unlikely to make their payments. Exacerbating matters, FHA officials seem oblivious to what’s happening—or incapable of stopping it. They’re giving mortgage firms licenses to dole out 100%-insured loans despite lender records blotted by state sanctions, bankruptcy filings, civil lawsuits, and even criminal convictions.
As a result, the nation could soon suffer a fresh wave of defaults and foreclosures, with Washington obliged to respond with yet another gargantuan bailout. Inside Mortgage Finance, a research and newsletter firm in Bethesda, Md., estimates that over the next five years fresh loans backed by the FHA that go sour will cost taxpayers $100 billion or more. That’s on top of the $700 billion financial-system rescue Congress has already approved. Gary E. Lacefield, a former federal mortgage investigator who now runs Risk Mitigation Group, a consultancy in Arlington, Tex., predicts: “Within the next 12 to 18 months, there is going to be FHA-insurance Armageddon.” (“FHA-Backed Loans: The New Subprime”, Businessweek)
How do you like that? And that was written back in November 2008, so a lot of people knew what was going on even then. Our point is that the FHA was NOT used to “stabilize the housing market”, that’s complete industry-fabricated PR hogwash. It was used to turbo-charge asset prices and to shovel more money to crooked bankers. Here’s more on the story from CNBC’s Realty Check:
“The FHA losses stem from business it did between 2007 and 2009, when the rest of the mortgage market retreated dramatically. $70 billion in claims are attributable to just those three years when seller-funded downpayment assistance was still allowed. That was prohibited in 2009.
The FHA, which requires just 3.5 percent down payment on a loan and which had lower relative credit score requirements, went from just 2 percent of the market during the height of the housing boom to nearly 40 percent at the height of the crash, insuring $330 billion worth of mortgages in 2009 alone.” (“To Stem Losses, FHA Mortgages Get More Expensive”, CNBC)
Same old, same old, right? The FHA rubber stamped hundreds of billions in mortgages even though they knew the underwriting was shoddy and that the losses would eventually be dumped on Uncle Sam. And who was the primary regulator when all this hanky panky was going on?

Why, none other than Ben Bernanke. The very same Ben Bernanke who just last week said we need to loosen lending standards so the banks can issue more bad loans. It’s true. Check out this clip from a speech that the Fed chairman gave last week in Atlanta:
“It seems likely at this point that the pendulum has swung too far the other way, and that overly tight lending standards may now be preventing creditworthy borrowers from buying homes, thereby slowing the revival in housing and impeding the economic recovery…” (“Challenges in Housing and Mortgage Markets”, Federal Reserve)
Sure, let’s return the Golden Era of Crappy Lending circa 2006. Let’s get those subprime boiler rooms up-and-running again so we can blow the system to Kingdom Come one more time. Can you believe this man is still Fed chairman?

Congress should ignore Bernanke’s blabbering and standardize mortgage applications requiring 10 percent down, proof of employment, and minimum 620 credit scores. These should be the ironclad rules of lending from which the banks may not veer one iota from or face criminal penalties and a revoking of their license. Enough of the bubbles, already!

According to a recent audit, the FHA has a $16.3 billion deficit, which doesn’t sound too bad considering that agency has grown by 30 percent since 2009 and presently insures $1.1 trillion in mortgages. But then if you read the fine-print, you discover that–just this year–the agency “introduced the claim-type prediction model to separate REO claims and pre-foreclosure claims”.

What does that mean? It means they’re fudging the numbers to make things look rosier than they really are. The fact is, this is just Phase 1 of multi-phase bailout that could run into hundreds of billions of dollars, mainly because the FHA is STILL slapping its seal of approval on high-risk loans. Just get a load of this clip from The Atlantic:
“Today, the agency is still targeting low-income borrowers, pushing them into mortgages with ruinous consequences. For example, in the first quarter of FY 2012, an estimated 40 percent of FHA’s business consists of loans with either one or two subprime attributes — a FICO score below 660 or a debt ratio greater than or equal to 50 percent. These subprime loans are overwhelmingly risk layered with a loan to value ratio (excluding financed mortgage insurance premium) of equal to or greater than 95 percent and a loan term of 30 years.
As these delinquencies from 2008-2010 turn into foreclosures — a kind of post-bubble second wave — they’ll put downward price pressure on already-battered neighborhoods, and the nascent housing recovery could quickly reverse course, dragging the economy.” (“The Next Housing Bailout? Big Trouble Brewing at the FHA”, The Atlantic)
Can you see what’s going on here? The banks can’t make money by lending because too many people are still broke from the housing bubble and aren’t interested in borrowing more money. So they’ve focused on weasaling the government instead, using their agents inside the system to pull the right levers so more public money is diverted to Wall Street. And it’s all done via bad loans, that’s the strategy in a nutshell. Once they get the government to underwrite their garbage mortgages, they crank out as much funny money (credit) as possible and dump the bill on John Q. Public. So far, the plan has worked like a charm, and it will probably continue to work for some time to come. After all, who’s going to stop them? Obama?

Don’t make me laugh.

Monday, November 19, 2012

The Lousiest Recovery of All Time--If It Can Really Be Called a Recovery at All

by MIKE WHITNEY
 
Is this the lousiest recovery of all time?

Check it out: The number of people currently on food stamps in the US is at a record-high of 47.1 million. That’s more than twice as many recipients than in 2007 when the crisis began. And the percent of Americans living below the poverty line has skyrocketed, too. It’s gone from 12.3 percent in 2006 to 16.1 percent today. According to the Census Bureau, nearly 50 million people in America are now living below the poverty line. In other words, if you’re poor in America your numbers are growing and things are getting worse. Some recovery, eh?

And it’s not just the poor who are hurting either. The middle class is getting clobbered, too.

Unemployment is still way too high (U3 7.9%, U6 14.3%) and, according to the Fed’s Survey of Consumer Finances, middle income families have seen nearly 40 percent of their net worth go up in smoke since 2007. The bulk of the losses are attributable to the giant housing bust of ’07 which wiped out $8 trillion in home equity leaving the majority of baby boomers unprepared for retirement. It’s a desperate situation that no one seems to want to talk about, but the reality is that millions of people are going to have to figure out how to scrape by on next-to-nothing or work until they’re too senile to punch a clock. As far as these folks are concerned, the recovery is just a big joke.

So who’s really benefited from the so called recovery?

Well, that’s a no brainer: Wall Street and the 1 percenters, that’s who. Fed chairman Ben Bernanke has pumped enough uber-cheap money into financial markets to fill a small ocean, all with the clear intention of keeping stocks bubbly so his fatcat speculator friends can cream the system and take home even bigger bonus checks. The Fed’s quantitative easing program has sent stocks into the stratosphere, in fact, all three major US indices have more than doubled since the program was first launched in 2008. There’s only one drawback; it doesn’t do jack for the real economy. Oh, and another thing, its effect on stocks is only temporary, the equivalent of a sugar rush. Check out this post by Charles Biderman at TrimTabs and you’ll see what I mean:
“On September 14 the day of the most recent Fed easing, the S&P 500 peaked at 1466. And ever since then stocks have been selling off and opened today down about 6%.
On previous videos I predicted that the current QE would have very little impact on both the stock market and the economy. And that is what happened. Why did I predict that? Short term interest rates are already at zero and it has been five months now since mortgage rates reached current record low levels. So yes, as a result of Operation Twist after tax income rose to a $300 billion in annualized growth this past June through September. That was up from a $200 billion growth rate over the first five months of 2012. Since October, after tax income – remember this is a before inflation number – has dropped back to a $200 billion growth rate. In other words, the Fed this year will in essence print half a trillion dollars that will not improve after tax income nor help stock prices grow……
So the US economy is currently barely growing despite huge amounts of deficit spending and money printing.” (“Bernanke Put Dead and Very Little Chance Stocks Avoid Year End Sell Off”, Trim Tabs Money Blog)
This is Bernanke’s worst nightmare. Stocks are looking wobbly and his nutcase monetary theories are no longer working. But rather than change directions and admit his error, Bernanke has decided to double-down and throw the printing presses into high-gear. But how can he do that, you may wonder, after all, hasn’t the Fed already committed to purchasing $40 billion mortgage-backed securities per month for “as long as it takes” (QEternity) to lift GDP rises and reduce unemployment?

Yes, he has, but that doesn’t mean the Moneymaker in Chief doesn’t have more arrows in his quiver. He does. Here’s the story from Bloomberg:
“The Federal Reserve is embarking on the next step in Chairman Ben S. Bernanke’s journey toward greater transparency — tying its outlook for borrowing costs to measures of employment and inflation.
Policy makers “generally favored the use of economic variables” to provide guidance on the when they are likely to approve their first interest-rate increase since 2008, according to minutes of their Oct. 23-24 meeting released yesterday. Such measures might replace or supplement a calendar date, currently set at mid-2015.
A number of officials also said the Fed may need to expand its monthly purchases of bonds next year after the expiration of a program to extend the maturities of assets on its balance sheet, known as Operation Twist. The discussion indicates that Fed officials judge the economy still needs record stimulus to reduce an unemployment rate stuck near 8 percent.” (“Fed Moves Toward Tying Interest-Rate Decisions to Economic Data”, Bloomberg)
So what does it all mean? It means that Bernanke and his Merry Pranksters are ratcheting it up to the next level. It means they’re going to keep flooding the financial markets with liquidity until the jobless rate comes down. It doesn’t matter that QE hasn’t moved the dial on unemployment at all or that the Fed has already expanded its balance sheet by $2.5 trillion and that no one has any idea of how Bernanke is going get rid of his stockpile of junk assets without sending the markets into an Armageddon death-spiral. None of that matters. They’re just going to put their foot on the gas and let ‘er rip! Doesn’t that sound a tad reckless?
Here’s an excerpt from the FOMC statement on September 13 that helps to connect the dots:
“If the outlook for the labor market does not improve substantially, the Committee will continue its purchases of agency mortgage-backed securities, undertake additional asset purchases, and employ its other policy tools as appropriate until such improvement is achieved in a context of price stability.”
In short: “We’re not done yet, guys, not by a long-shot.”

This is supply side arrogance in the extreme. Bernanke continues to believe that the entire economy can be effectively run by moving levers at the Central Bank. He thinks that if you plop enough money into the top of the system, (financial markets) it will eventually dribble downwards to the worker bees. Fat chance. It hasn’t happened yet, but not from want of trying.
Bernanke is right about one thing though, inflation expectations are beginning to fade which means that disinflation or outright deflation are a growing threat to the economy. Take a look at this blurb from The Economist:
“….since mid-October, there has been an unmistakable reversal in the inflation-expectations trend. Based on 5-year breakevens, all of the September spurt has been erased. And 2-year breakevens are back at July levels. Given my optimism over the Fed’s September moves and the apparent strength of underlying fundamentals in the economy, I would like to disregard this trend, but one should be very reluctant to abandon guideposts that have served one well just because they’ve moved in an inconvenient way.” (“Monetarypolicy—Is there a problem?”, The Economist)
This is why Bernanke is wheeling out the heavy artillery, because QE3 hasn’t boosted spending or borrowing at all. Business investment is still in the doldrums and earnings have hit the skids in a big way. So where are all the green shoots? The only difference between 2008 and today is a steroid-inflated stock market and a few more multi-billionaire 1 percenters. Everything else is about the same, only worse.

If Bernanke was serious about fixing the economy, he’d stop all the monetary chicanery and let stocks nosedive by a couple thousand points. That would wake up Congress and force them to do their damn job. Zero rates and boatloads of liquidity just aren’t doing the trick, anyone can see that. In fact, all the hocus pocus and crackpot “accomodative” policies are just making people nervous and adding to the uncertainty. It’s time to get back to basics, fiscal stimulus.

Bernanke should follow the advice of Nomura’s chief economist Richard Koo. Koo has done extensive research on Japan’s 20 year running-battle with deflation and explained in excruciating detail what needs to be done to emerge from, what he calls, a balance sheet recession. Here’s a sample of his work:
“The most important lesson of the last 20 years in Japan and of the last four years in western economies is that monetary policy is ineffective when there is no private demand for funds…
“In Japan, there has been little or no private loan demand since 1995, when the BOJ brought interest rates down to near-zero levels. And neither the economy nor asset prices have recovered, even though, as BOJ Governor Masaaki Shirakawa has noted, the BOJ embarked on quantitative easing fully eight years before its counterparts in Europe and the U.S…..
When businesses and households not only stop borrowing money but start to work off their debt, the resulting absence of borrowers effectively traps central bank-supplied liquidity in the financial system, and as a consequence the funds neither stimulate the economy nor spark inflation……”
Sound familiar? And here’s more from the Financial Times via Economist’s View:
“Today, the US private sector is saving a staggering 8 per cent of gross domestic product – at zero interest rates, when households and businesses would ordinarily be borrowing and spending money. … This is the result of the bursting of debt-financed housing bubbles, which left the private sector with huge debt overhangs … giving it no choice but to pay down debt or increase savings, even at zero interest rates.
However, if someone is saving money or paying down debt, someone else must be borrowing and spending that money to keep the economy going. … With monetary policy largely ineffective and the private sector forced to repair its balance sheet, the only way to avoid a deflationary spiral is for the government to borrow and spend the unborrowed savings in the private sector….
The challenge now is to maintain fiscal stimuli until private sector deleveraging is completed.” (“Explain the disease to help US citizens”, Richard Koo, Financial Times)
Bernanke’s smart enough to know that more-of-the-same (QE) won’t get the economy back on track. He knows that Koo is right. But that doesn’t mean there will be a change in policy. There won’t be, mainly because QE reinforces the caste system where all the goodies go to the silk-stocking hotshots at the top and everyone else gets table scraps. It’s just plain old class warfare. And, guess what: their class is winning.

Obama’s Biggest Environmental ‘Victory’ Was A Huge Win for Frackers

by Joshua Frank
 
Greenhouse gas emissions are hot news these days — especially in the lead up to an election when candidates, at least those who claim to believe in climate science, vow to do something about the biggest environmental crisis facing our little blue planet: climate change.

In early March of this year, while campaigning in New Hampshire, Obama vowed to end $4 billion in Big Oil and Gas subsidies. “You can either stand up for the oil companies, or you can stand up for the American people,” Obama said to an applauding audience. “You can keep subsidizing a fossil fuel that’s been getting taxpayer dollars for a century, or you can place your bets on a clean-energy future.”

That sounds dandy, but ending subsidies to polluters is only half the battle, and Obama’s idea of a “clean-energy future” is tenuous at best. In an attempt to round up the green vote, which he successfully accomplished, President Obama trumpeted his half-hearted attempt to put the breaks on climate change by tapping energy sources here at home and regulating the industry that’s doing most of the damage. Only days after the president announced he was looking to fast-track the southern portion of the Keystone XL tar sands pipeline, his administration released the first-ever federal standards to limit greenhouse gas emissions from new power plants.

In what’s now become typical Obama fashion, the move was meant to appease environmental critics while at the same time ensure the fossil fuel industry that the so-called New Source Performance Standard would not actually hurt its bottom lines.

Here’s why: the EPA rule would only impact new coal-fired power plants, but only those that break ground in later next year. In all, 15 proposed coal plants in 10 states could be potentially impacted by the rule, even though most are already hung up in court battles. As such, no coal-fired power plants in the United States have broke ground over the past three years and tenacious environmentalists have seen far more victories than defeats when it comes to battling King Coal.

The new greenhouse rule will require fossil fuel-fired electricity generating units to restrict their emissions to 1,000 pounds of carbon dioxide (CO2) per megawatt-hour of electricity produced; a strict standard to be sure, but one that doesn’t come without caveats. All old power plants, some well over 50 years in age, will be exempt entirely from Obama’s greenhouse rule when it comes into effect, despite the fact that these archaic facilities alone account for over 40 percent of carbon emissions in the country. In a nutshell, the biggest coal polluters are being let off the hook altogether.

Five years ago a staggering 151 new coal plants were slated for construction, but with one of the greatest environmental achievements in our history, grassroots activists across the country stopped their development.

Obama is still riding on the coat-tails of these victories, but what’s underlying the greenhouse gas rule is a bit more sinister. As concerns about the impacts of fracking continue to grow, the power plants that burn natural gas extracted through this process of pumping a mix of water, chemicals and sand deep into the earth’s crust, won’t be covered by the rule. Generally, natural gas plants produce less than 900 pounds of CO2 per megawatt-hour. Indeed the limit set by the EPA was not arbitrary; it directly aids and abets the natural gas industry. Obama knows quite well that natural gas is poised to be the fossil fuel of the future and his administration and the EPA are not going to stand in the way of the big boom.

This isn’t to say the effect of natural gas on climate change is benign — far from it. While still producing a large amount of carbon emissions (albeit less than coal), natural gas also spews a whole bunch of methane (natural gas is methane), which is far more potent than CO2 when it comes to the immediate warming of our planet. In fact, it is estimated that methane gas has a global warming potential 25 times that of CO2 (averaged over 100 years). So, in absolute terms, natural gas does contribute substantially to greenhouse gas emissions, and with more production in the works, this contribution is going to grow a lot more in the years to come.

The EPA certainly understands methane is a big contributor to global warming. In an analysis released last year the agency doubled its earlier estimate for the amount of methane that leaks from natural gas wells and pipelines. This leaking is so extensive that it is equal to the annual emissions from over 35 million automobiles. In addition, the EPA reported that the levels of methane release during the fracking of shale gas were actually 9,000 times higher than previously thought.

Methane, unfortunately, is not covered by Obama’s proposed greenhouse gas rule. Perhaps that’s because Obama supports the expansion of natural gas exploration as well as the notion of “safe” fracking — an oxymoron akin to “clean” coal.

“We have a supply of natural gas that can last America nearly one hundred years, and my administration will take every possible action to safely develop this energy,” said President Obama in his last State of the Union address. “The development of natural gas will create jobs and power trucks and factories that are cleaner and cheaper, proving that we don’t have to choose between our environment and our economy … it was public research dollars, over the course of thirty years, that helped develop the technologies to extract all this natural gas out of shale rock.”

The process Obama is touting is the fracking of natural gas and oil from underground geological formations, like the Marcellus Shale on the East Coast. The procedure has been documented in a draft report by the EPA as causing groundwater pollution in Wyoming, yet fracking remains exempt from the Clean Water Act.

As coal becomes a relic of the past in the U.S., natural gas, with fracking as its main source of extraction, is being set up as the fossil fuel of the future, thanks in large part to Obama’s embrace and the EPA’s blind eye. In 2008 the Obama campaign amassed $884,000 from the oil and gas industry. In 2012 that number topped $2 million.

Often seen as a “bridge fuel” from coal toward renewables, natural gas has not come under the same scrutiny as other fossil fuels. Instead natural gas has been seen as a safer, cleaner burning fuel — an improvement over dirty coal. Hence why the EPA continues to punt on proposing regulations on the industry, as it did for a second at the beginning of last April when it delayed the release of rules for the oil and gas industry. If the EPA caves to the natural gas industry, as it will likely continue to do, the majority of existing fracking wells will be exempt from regulation.

Yet, even if fracking wells begin to receive the regulatory oversight they so gravely deserve, the burning of natural gas is not about to come under intensified scrutiny any time soon. On the contrary, as long as the EPA’s attention remains on curbing coal’s carbon footprint, the natural gas industry is sure to benefit and more methane is sure to seep from the depths of Earth. A recent study by tech billionaire Nathan Myhrvold and climate scientist Ken Caldeira argues that shifting to natural gas “cannot substantially reduce the climate risk in the next 100 years.”

Those fighting the frackers ought to expand their focus from fracking’s immediate dangers, which are very real, to natural gas’ long-term impacts on climate change. Even if fracking were to one day be outlawed, as long as natural gas continues to be burned the planet will continue to heat up. In short, natural gas is not a bridge to renewable energy; it’s a bridge to an even more toxic planet.

Armyworms Develop Resistance to Genetically Modified Corn




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By Aviva Shen on Nov 19, 2012 Think Progress

 A second species of worm has evolved to withstand pesticides in genetically modified crops, the latest escalation of the natural arms race spurred on by GMOs.  Armyworms” — so called because their infestation of fields resembles a military onslaught — were able to eat DuPont-Dow corn containing a pesticide protein without adverse effects, according to a field trial conducted in Florida this year.

Rootworms in the Midwest have already developed resistance to a different GM corn produced by Monsanto the devil. This latest breed of armyworms adds to the mounting evidence that insects are following the evolutionary path of “super weeds,” which are now immune to herbicides in GMO crops and present a serious problem for farmers.

Monsanto the devil and DuPont marketed their products as a way to reduce toxic chemical use on plants. These new findings contradict that claim, as these superweeds and superworms force farmers to deploy even heavier doses of potent chemicals — as much as 527 million pounds of herbicides alone since 1996. Bloomberg reports:
“This is most likely field resistance,” Fangneng Huang, an assistant professor at Louisiana State University in Baton Rouge, said at the annual meeting of the Entomological Society of America. [...] Concern that the insecticides are failing is prompting farmers to apply more chemicals, unwinding the primary environmental benefit of pest-fighting crops, Michael Gray, an entomologist at the University of Illinois in Urbana, said in a Nov. 14 presentation at the conference.
Monsanto and DuPont led a multi-million dollar campaign against California’s GMO labeling proposition, helping to ensure its defeat earlier this month. California is the 21st state that has tried and failed to pass GMO labeling legislation within the past year.