Interview with investigative journalist Mark Schapiro author of "Exposed: The Toxic Chemistry of Everyday Products and What's at Stake for American Power"
Monday, March 31, 2008
Inside Story - Arab summit
The Damascus Arab League Summit was meant to be one of unity, but the growing rift between states sees the Arabs once again edging towards more division and polarisation.
The Clean Energy Scam
Go to Original
By Michael Grunwald
From his Cessna a mile above the southern Amazon, John Carter looks down on the destruction of the world's greatest ecological jewel. He watches men converting rain forest into cattle pastures and soybean fields with bulldozers and chains. He sees fires wiping out such gigantic swaths of jungle that scientists now debate the "savannization" of the Amazon. Brazil just announced that deforestation is on track to double this year; Carter, a Texas cowboy with all the subtlety of a chainsaw, says it's going to get worse fast. "It gives me goose bumps," says Carter, who founded a nonprofit to promote sustainable ranching on the Amazon frontier. "It's like witnessing a rape."
The Amazon was the chic eco-cause of the 1990s, revered as an incomparable storehouse of biodiversity. It's been overshadowed lately by global warming, but the Amazon rain forest happens also to be an incomparable storehouse of carbon, the very carbon that heats up the planet when it's released into the atmosphere. Brazil now ranks fourth in the world in carbon emissions, and most of its emissions come from deforestation. Carter is not a man who gets easily spooked - he led a reconnaissance unit in Desert Storm, and I watched him grab a small anaconda with his bare hands in Brazil - but he can sound downright panicky about the future of the forest. "You can't protect it. There's too much money to be made tearing it down," he says. "Out here on the frontier, you really see the market at work."
This land rush is being accelerated by an unlikely source: biofuels. An explosion in demand for farm-grown fuels has raised global crop prices to record highs, which is spurring a dramatic expansion of Brazilian agriculture, which is invading the Amazon at an increasingly alarming rate.
Propelled by mounting anxieties over soaring oil costs and climate change, biofuels have become the vanguard of the green-tech revolution, the trendy way for politicians and corporations to show they're serious about finding alternative sources of energy and in the process slowing global warming. The U.S. quintupled its production of ethanol - ethyl alcohol, a fuel distilled from plant matter - in the past decade, and Washington has just mandated another fivefold increase in renewable fuels over the next decade. Europe has similarly aggressive biofuel mandates and subsidies, and Brazil's filling stations no longer even offer plain gasoline. Worldwide investment in biofuels rose from $5 billion in 1995 to $38 billion in 2005 and is expected to top $100 billion by 2010, thanks to investors like Richard Branson and George Soros, GE and BP, Ford and Shell, Cargill and the Carlyle Group. Renewable fuels has become one of those motherhood-and-apple-pie catchphrases, as unobjectionable as the troops or the middle class.
But several new studies show the biofuel boom is doing exactly the opposite of what its proponents intended: it's dramatically accelerating global warming, imperiling the planet in the name of saving it. Corn ethanol, always environmentally suspect, turns out to be environmentally disastrous. Even cellulosic ethanol made from switchgrass, which has been promoted by eco-activists and eco-investors as well as by President Bush as the fuel of the future, looks less green than oil-derived gasoline.
Meanwhile, by diverting grain and oilseed crops from dinner plates to fuel tanks, biofuels are jacking up world food prices and endangering the hungry. The grain it takes to fill an SUV tank with ethanol could feed a person for a year. Harvests are being plucked to fuel our cars instead of ourselves. The U.N.'s World Food Program says it needs $500 million in additional funding and supplies, calling the rising costs for food nothing less than a global emergency. Soaring corn prices have sparked tortilla riots in Mexico City, and skyrocketing flour prices have destabilized Pakistan, which wasn't exactly tranquil when flour was affordable.
Biofuels do slightly reduce dependence on imported oil, and the ethanol boom has created rural jobs while enriching some farmers and agribusinesses. But the basic problem with most biofuels is amazingly simple, given that researchers have ignored it until now: using land to grow fuel leads to the destruction of forests, wetlands and grasslands that store enormous amounts of carbon.
Backed by billions in investment capital, this alarming phenomenon is replicating itself around the world. Indonesia has bulldozed and burned so much wilderness to grow palm oil trees for biodiesel that its ranking among the world's top carbon emitters has surged from 21st to third according to a report by Wetlands International. Malaysia is converting forests into palm oil farms so rapidly that it's running out of uncultivated land. But most of the damage created by biofuels will be less direct and less obvious. In Brazil, for instance, only a tiny portion of the Amazon is being torn down to grow the sugarcane that fuels most Brazilian cars. More deforestation results from a chain reaction so vast it's subtle: U.S. farmers are selling one-fifth of their corn to ethanol production, so U.S. soybean farmers are switching to corn, so Brazilian soybean farmers are expanding into cattle pastures, so Brazilian cattlemen are displaced to the Amazon. It's the remorseless economics of commodities markets. "The price of soybeans goes up," laments Sandro Menezes, a biologist with Conservation International in Brazil, "and the forest comes down."
Deforestation accounts for 20% of all current carbon emissions. So unless the world can eliminate emissions from all other sources - cars, power plants, factories, even flatulent cows - it needs to reduce deforestation or risk an environmental catastrophe. That means limiting the expansion of agriculture, a daunting task as the world's population keeps expanding. And saving forests is probably an impossibility so long as vast expanses of cropland are used to grow modest amounts of fuel. The biofuels boom, in short, is one that could haunt the planet for generations - and it's only getting started.
Why the Amazon Is on Fire
This destructive biofuel dynamic is on vivid display in Brazil, where a Rhode Island - size chunk of the Amazon was deforested in the second half of 2007 and even more was degraded by fire. Some scientists believe fires are now altering the local microclimate and could eventually reduce the Amazon to a savanna or even a desert. "It's approaching a tipping point," says ecologist Daniel Nepstad of the Woods Hole Research Center.
I spent a day in the Amazon with the Kamayura tribe, which has been forced by drought to replant its crops five times this year. The tribesmen I met all complained about hacking coughs and stinging eyes from the constant fires and the disappearance of the native plants they use for food, medicine and rituals. The Kamayura had virtually no contact with whites until the 1960s; now their forest is collapsing around them. Their chief, Kotok, a middle-aged man with an easy smile and Three Stooges hairdo that belie his fierce authority, believes that's no coincidence. "We are people of the forest, and the whites are destroying our home," says Kotok, who wore a ceremonial beaded belt, a digital watch, a pair of flip-flops and nothing else. "It's all because of money."
Kotok knows nothing about biofuels. He's more concerned about his tribe's recent tendency to waste its precious diesel-powered generator watching late-night soap operas. But he's right. Deforestation can be a complex process; for example, land reforms enacted by Brazilian President Luiz Inácio Lula da Silva have attracted slash-and-burn squatters to the forest, and "use it or lose it" incentives have spurred some landowners to deforest to avoid redistribution.
The basic problem is that the Amazon is worth more deforested than it is intact. Carter, who fell in love with the region after marrying a Brazilian and taking over her father's ranch, says the rate of deforestation closely tracks commodity prices on the Chicago Board of Trade. "It's just exponential right now because the economics are so good," he says. "Everything tillable or grazeable is gouged out and cleared."
That the destruction is taking place in Brazil is sadly ironic, given that the nation is also an exemplar of the allure of biofuels. Sugar growers here have a greener story to tell than do any other biofuel producers. They provide 45% of Brazil's fuel (all cars in the country are able to run on ethanol) on only 1% of its arable land. They've reduced fertilizer use while increasing yields, and they convert leftover biomass into electricity. Marcos Jank, the head of their trade group, urges me not to lump biofuels together: "Grain is good for bread, not for cars. But sugar is different." Jank expects production to double by 2015 with little effect on the Amazon. "You'll see the expansion on cattle pastures and the Cerrado," he says.
So far, he's right. There isn't much sugar in the Amazon. But my next stop was the Cerrado, south of the Amazon, an ecological jewel in its own right. The Amazon gets the ink, but the Cerrado is the world's most biodiverse savanna, with 10,000 species of plants, nearly half of which are found nowhere else on earth, and more mammals than the African bush. In the natural Cerrado, I saw toucans and macaws, puma tracks and a carnivorous flower that lures flies by smelling like manure. The Cerrado's trees aren't as tall or dense as the Amazon's, so they don't store as much carbon, but the region is three times the size of Texas, so it stores its share.
At least it did, before it was transformed by the march of progress - first into pastures, then into sugarcane and soybean fields. In one field I saw an array of ovens cooking trees into charcoal, spewing Cerrado's carbon into the atmosphere; those ovens used to be ubiquitous, but most of the trees are gone. I had to travel hours through converted Cerrado to see a 96-acre (39 hectare) sliver of intact Cerrado, where a former shopkeeper named Lauro Barbosa had spent his life savings for a nature preserve. "The land prices are going up, up, up," Barbosa told me. "My friends say I'm a fool, and my wife almost divorced me. But I wanted to save something before it's all gone."
The environmental cost of this cropland creep is now becoming apparent. One groundbreaking new study in Science concluded that when this deforestation effect is taken into account, corn ethanol and soy biodiesel produce about twice the emissions of gasoline. Sugarcane ethanol is much cleaner, and biofuels created from waste products that don't gobble up land have real potential, but even cellulosic ethanol increases overall emissions when its plant source is grown on good cropland. "People don't want to believe renewable fuels could be bad," says the lead author, Tim Searchinger, a Princeton scholar and former Environmental Defense attorney. "But when you realize we're tearing down rain forests that store loads of carbon to grow crops that store much less carbon, it becomes obvious."
The growing backlash against biofuels is a product of the law of unintended consequences. It may seem obvious now that when biofuels increase demand for crops, prices will rise and farms will expand into nature. But biofuel technology began on a small scale, and grain surpluses were common. Any ripples were inconsequential. When the scale becomes global, the outcome is entirely different, which is causing cheerleaders for biofuels to recalibrate. "We're all looking at the numbers in an entirely new way," says the Natural Resources Defense Council's Nathanael Greene, whose optimistic "Growing Energy" report in 2004 helped galvanize support for biofuels among green groups.
Several of the most widely cited experts on the environmental benefits of biofuels are warning about the environmental costs now that they've recognized the deforestation effect. "The situation is a lot more challenging than a lot of us thought," says University of California, Berkeley, professor Alexander Farrell, whose 2006 Science article calculating the emissions reductions of various ethanols used to be considered the definitive analysis. The experts haven't given up on biofuels; they're calling for better biofuels that won't trigger massive carbon releases by displacing wildland. Robert Watson, the top scientist at the U.K.'s Department for the Environment, recently warned that mandating more biofuel usage - as the European Union is proposing - would be "insane" if it increases greenhouse gases. But the forces that biofuels have unleashed - political, economic, social - may now be too powerful to constrain.
America the Bio-Foolish
The best place to see this is America's biofuel mecca: Iowa. Last year fewer than 2% of U.S. gas stations offered ethanol, and the country produced 7 billion gal. (26.5 billion L) of biofuel, which cost taxpayers at least $8 billion in subsidies. But on Nov. 6, at a biodiesel plant in Newton, Iowa, Hillary Rodham Clinton unveiled an eye-popping plan that would require all stations to offer ethanol by 2017 while mandating 60 billion gal. (227 billion L) by 2030. "This is the fuel for a much brighter future!" she declared. Barack Obama immediately criticized her - not for proposing such an expansive plan but for failing to support ethanol before she started trolling for votes in Iowa's caucuses.
If biofuels are the new dotcoms, Iowa is Silicon Valley, with 53,000 jobs and $1.8 billion in income dependent on the industry. The state has so many ethanol distilleries under construction that it's poised to become a net importer of corn. That's why biofuel-pandering has become virtually mandatory for presidential contenders. John McCain was the rare candidate who vehemently opposed ethanol as an outrageous agribusiness boondoggle, which is why he skipped Iowa in 2000. But McCain learned his lesson in time for this year's caucuses. By 2006 he was calling ethanol a "vital alternative energy source."
Members of Congress love biofuels too, not only because so many dream about future Iowa caucuses but also because so few want to offend the farm lobby, the most powerful force behind biofuels on Capitol Hill. Ethanol isn't about just Iowa or even the Midwest anymore. Plants are under construction in New York, Georgia, Oregon and Texas, and the ethanol boom's effect on prices has helped lift farm incomes to record levels nationwide.
Someone is paying to support these environmentally questionable industries: you. In December, President Bush signed a bipartisan energy bill that will dramatically increase support to the industry while mandating 36 billion gal. (136 billion L) of biofuel by 2022. This will provide a huge boost to grain markets.
Why is so much money still being poured into such a misguided enterprise? Like the scientists and environmentalists, many politicians genuinely believe biofuels can help decrease global warming. It makes intuitive sense: cars emit carbon no matter what fuel they burn, but the process of growing plants for fuel sucks some of that carbon out of the atmosphere. For years, the big question was whether those reductions from carbon sequestration outweighed the "life cycle" of carbon emissions from farming, converting the crops to fuel and transporting the fuel to market. Researchers eventually concluded that yes, biofuels were greener than gasoline. The improvements were only about 20% for corn ethanol because tractors, petroleum-based fertilizers and distilleries emitted lots of carbon. But the gains approached 90% for more efficient fuels, and advocates were confident that technology would progressively increase benefits.
There was just one flaw in the calculation: the studies all credited fuel crops for sequestering carbon, but no one checked whether the crops would ultimately replace vegetation and soils that sucked up even more carbon. It was as if the science world assumed biofuels would be grown in parking lots. The deforestation of Indonesia has shown that's not the case. It turns out that the carbon lost when wilderness is razed overwhelms the gains from cleaner-burning fuels. A study by University of Minnesota ecologist David Tilman concluded that it will take more than 400 years of biodiesel use to "pay back" the carbon emitted by directly clearing peat lands to grow palm oil; clearing grasslands to grow corn for ethanol has a payback period of 93 years. The result is that biofuels increase demand for crops, which boosts prices, which drives agricultural expansion, which eats forests. Searchinger's study concluded that overall, corn ethanol has a payback period of about 167 years because of the deforestation it triggers.
Not every kernel of corn diverted to fuel will be replaced. Diversions raise food prices, so the poor will eat less. That's the reason a U.N. food expert recently called agrofuels a "crime against humanity." Lester Brown of the Earth Policy Institute says that biofuels pit the 800 million people with cars against the 800 million people with hunger problems. Four years ago, two University of Minnesota researchers predicted the ranks of the hungry would drop to 625 million by 2025; last year, after adjusting for the inflationary effects of biofuels, they increased their prediction to 1.2 billion.
Industry advocates say that as farms increase crop yields, as has happened throughout history, they won't need as much land. They'll use less energy, and they'll use farm waste to generate electricity. To which Searchinger says: Wonderful! But growing fuel is still an inefficient use of good cropland. Strange as it sounds, we're better off growing food and drilling for oil. Sure, we should conserve fuel and buy efficient cars, but we should keep filling them with gas if the alternatives are dirtier.
The lesson behind the math is that on a warming planet, land is an incredibly precious commodity, and every acre used to generate fuel is an acre that can't be used to generate the food needed to feed us or the carbon storage needed to save us. Searchinger acknowledges that biofuels can be a godsend if they don't use arable land. Possible feedstocks include municipal trash, agricultural waste, algae and even carbon dioxide, although none of the technologies are yet economical on a large scale. Tilman even holds out hope for fuel crops - he's been experimenting with Midwestern prairie grasses - as long as they're grown on "degraded lands" that can no longer support food crops or cattle.
Changing the Incentives
That's certainly not what's going on in Brazil. There's a frontier feel to the southern Amazon right now. Gunmen go by names like Lizard and Messiah, and Carter tells harrowing stories about decapitations and castrations and hostages. Brazil has remarkably strict environmental laws - in the Amazon, landholders are permitted to deforest only 20% of their property - but there's not much law enforcement. I left Kotok to see Blairo Maggi, who is not only the soybean king of the world, with nearly half a million acres (200,000 hectares) in the province of Mato Grosso, but also the region's governor. "It's like your Wild West right now," Maggi says. "There's no money for enforcement, so people do what they want."
Maggi has been a leading pioneer on the Brazilian frontier, and it irks him that critics in the U.S. - which cleared its forests and settled its frontier 125 years ago but still provides generous subsidies to its farmers - attack him for doing the same thing except without subsidies and with severe restrictions on deforestation. Imagine Iowa farmers agreeing to keep 80% - or even 20% - of their land in native prairie grass. "You make us sound like bandits," Maggi tells me. "But we want to achieve what you achieved in America. We have the same dreams for our families. Are you afraid of the competition?"
Maggi got in trouble recently for saying he'd rather feed a child than save a tree, but he's come to recognize the importance of the forest. "Now I want to feed a child and save a tree," he says with a grin. But can he do all that and grow fuel for the world as well? "Ah, now you've hit the nail on the head." Maggi says the biofuel boom is making him richer, but it's also making it harder to feed children and save trees. "There are many mouths to feed, and nobody's invented a chip to create protein without growing crops," says his pal Homero Pereira, a congressman who is also the head of Mato Grosso's farm bureau. "If you don't want us to tear down the forest, you better pay us to leave it up!"
Everyone I interviewed in Brazil agreed: the market drives behavior, so without incentives to prevent deforestation, the Amazon is doomed. It's unfair to ask developing countries not to develop natural areas without compensation. Anyway, laws aren't enough. Carter tried confronting ranchers who didn't obey deforestation laws and nearly got killed; now his nonprofit is developing certification programs to reward eco-sensitive ranchers. "People see the forest as junk," he says. "If you want to save it, you better open your pocketbook. Plus, you might not get shot."
The trouble is that even if there were enough financial incentives to keep the Amazon intact, high commodity prices would encourage deforestation elsewhere. And government mandates to increase biofuel production are going to boost commodity prices, which will only attract more investment. Until someone invents that protein chip, it's going to mean the worst of everything: higher food prices, more deforestation and more emissions.
Advocates are always careful to point out that biofuels are only part of the solution to global warming, that the world also needs more energy-efficient lightbulbs and homes and factories and lifestyles. And the world does need all those things. But the world is still going to be fighting an uphill battle until it realizes that right now, biofuels aren't part of the solution at all. They're part of the problem.
By Michael Grunwald
From his Cessna a mile above the southern Amazon, John Carter looks down on the destruction of the world's greatest ecological jewel. He watches men converting rain forest into cattle pastures and soybean fields with bulldozers and chains. He sees fires wiping out such gigantic swaths of jungle that scientists now debate the "savannization" of the Amazon. Brazil just announced that deforestation is on track to double this year; Carter, a Texas cowboy with all the subtlety of a chainsaw, says it's going to get worse fast. "It gives me goose bumps," says Carter, who founded a nonprofit to promote sustainable ranching on the Amazon frontier. "It's like witnessing a rape."
The Amazon was the chic eco-cause of the 1990s, revered as an incomparable storehouse of biodiversity. It's been overshadowed lately by global warming, but the Amazon rain forest happens also to be an incomparable storehouse of carbon, the very carbon that heats up the planet when it's released into the atmosphere. Brazil now ranks fourth in the world in carbon emissions, and most of its emissions come from deforestation. Carter is not a man who gets easily spooked - he led a reconnaissance unit in Desert Storm, and I watched him grab a small anaconda with his bare hands in Brazil - but he can sound downright panicky about the future of the forest. "You can't protect it. There's too much money to be made tearing it down," he says. "Out here on the frontier, you really see the market at work."
This land rush is being accelerated by an unlikely source: biofuels. An explosion in demand for farm-grown fuels has raised global crop prices to record highs, which is spurring a dramatic expansion of Brazilian agriculture, which is invading the Amazon at an increasingly alarming rate.
Propelled by mounting anxieties over soaring oil costs and climate change, biofuels have become the vanguard of the green-tech revolution, the trendy way for politicians and corporations to show they're serious about finding alternative sources of energy and in the process slowing global warming. The U.S. quintupled its production of ethanol - ethyl alcohol, a fuel distilled from plant matter - in the past decade, and Washington has just mandated another fivefold increase in renewable fuels over the next decade. Europe has similarly aggressive biofuel mandates and subsidies, and Brazil's filling stations no longer even offer plain gasoline. Worldwide investment in biofuels rose from $5 billion in 1995 to $38 billion in 2005 and is expected to top $100 billion by 2010, thanks to investors like Richard Branson and George Soros, GE and BP, Ford and Shell, Cargill and the Carlyle Group. Renewable fuels has become one of those motherhood-and-apple-pie catchphrases, as unobjectionable as the troops or the middle class.
But several new studies show the biofuel boom is doing exactly the opposite of what its proponents intended: it's dramatically accelerating global warming, imperiling the planet in the name of saving it. Corn ethanol, always environmentally suspect, turns out to be environmentally disastrous. Even cellulosic ethanol made from switchgrass, which has been promoted by eco-activists and eco-investors as well as by President Bush as the fuel of the future, looks less green than oil-derived gasoline.
Meanwhile, by diverting grain and oilseed crops from dinner plates to fuel tanks, biofuels are jacking up world food prices and endangering the hungry. The grain it takes to fill an SUV tank with ethanol could feed a person for a year. Harvests are being plucked to fuel our cars instead of ourselves. The U.N.'s World Food Program says it needs $500 million in additional funding and supplies, calling the rising costs for food nothing less than a global emergency. Soaring corn prices have sparked tortilla riots in Mexico City, and skyrocketing flour prices have destabilized Pakistan, which wasn't exactly tranquil when flour was affordable.
Biofuels do slightly reduce dependence on imported oil, and the ethanol boom has created rural jobs while enriching some farmers and agribusinesses. But the basic problem with most biofuels is amazingly simple, given that researchers have ignored it until now: using land to grow fuel leads to the destruction of forests, wetlands and grasslands that store enormous amounts of carbon.
Backed by billions in investment capital, this alarming phenomenon is replicating itself around the world. Indonesia has bulldozed and burned so much wilderness to grow palm oil trees for biodiesel that its ranking among the world's top carbon emitters has surged from 21st to third according to a report by Wetlands International. Malaysia is converting forests into palm oil farms so rapidly that it's running out of uncultivated land. But most of the damage created by biofuels will be less direct and less obvious. In Brazil, for instance, only a tiny portion of the Amazon is being torn down to grow the sugarcane that fuels most Brazilian cars. More deforestation results from a chain reaction so vast it's subtle: U.S. farmers are selling one-fifth of their corn to ethanol production, so U.S. soybean farmers are switching to corn, so Brazilian soybean farmers are expanding into cattle pastures, so Brazilian cattlemen are displaced to the Amazon. It's the remorseless economics of commodities markets. "The price of soybeans goes up," laments Sandro Menezes, a biologist with Conservation International in Brazil, "and the forest comes down."
Deforestation accounts for 20% of all current carbon emissions. So unless the world can eliminate emissions from all other sources - cars, power plants, factories, even flatulent cows - it needs to reduce deforestation or risk an environmental catastrophe. That means limiting the expansion of agriculture, a daunting task as the world's population keeps expanding. And saving forests is probably an impossibility so long as vast expanses of cropland are used to grow modest amounts of fuel. The biofuels boom, in short, is one that could haunt the planet for generations - and it's only getting started.
Why the Amazon Is on Fire
This destructive biofuel dynamic is on vivid display in Brazil, where a Rhode Island - size chunk of the Amazon was deforested in the second half of 2007 and even more was degraded by fire. Some scientists believe fires are now altering the local microclimate and could eventually reduce the Amazon to a savanna or even a desert. "It's approaching a tipping point," says ecologist Daniel Nepstad of the Woods Hole Research Center.
I spent a day in the Amazon with the Kamayura tribe, which has been forced by drought to replant its crops five times this year. The tribesmen I met all complained about hacking coughs and stinging eyes from the constant fires and the disappearance of the native plants they use for food, medicine and rituals. The Kamayura had virtually no contact with whites until the 1960s; now their forest is collapsing around them. Their chief, Kotok, a middle-aged man with an easy smile and Three Stooges hairdo that belie his fierce authority, believes that's no coincidence. "We are people of the forest, and the whites are destroying our home," says Kotok, who wore a ceremonial beaded belt, a digital watch, a pair of flip-flops and nothing else. "It's all because of money."
Kotok knows nothing about biofuels. He's more concerned about his tribe's recent tendency to waste its precious diesel-powered generator watching late-night soap operas. But he's right. Deforestation can be a complex process; for example, land reforms enacted by Brazilian President Luiz Inácio Lula da Silva have attracted slash-and-burn squatters to the forest, and "use it or lose it" incentives have spurred some landowners to deforest to avoid redistribution.
The basic problem is that the Amazon is worth more deforested than it is intact. Carter, who fell in love with the region after marrying a Brazilian and taking over her father's ranch, says the rate of deforestation closely tracks commodity prices on the Chicago Board of Trade. "It's just exponential right now because the economics are so good," he says. "Everything tillable or grazeable is gouged out and cleared."
That the destruction is taking place in Brazil is sadly ironic, given that the nation is also an exemplar of the allure of biofuels. Sugar growers here have a greener story to tell than do any other biofuel producers. They provide 45% of Brazil's fuel (all cars in the country are able to run on ethanol) on only 1% of its arable land. They've reduced fertilizer use while increasing yields, and they convert leftover biomass into electricity. Marcos Jank, the head of their trade group, urges me not to lump biofuels together: "Grain is good for bread, not for cars. But sugar is different." Jank expects production to double by 2015 with little effect on the Amazon. "You'll see the expansion on cattle pastures and the Cerrado," he says.
So far, he's right. There isn't much sugar in the Amazon. But my next stop was the Cerrado, south of the Amazon, an ecological jewel in its own right. The Amazon gets the ink, but the Cerrado is the world's most biodiverse savanna, with 10,000 species of plants, nearly half of which are found nowhere else on earth, and more mammals than the African bush. In the natural Cerrado, I saw toucans and macaws, puma tracks and a carnivorous flower that lures flies by smelling like manure. The Cerrado's trees aren't as tall or dense as the Amazon's, so they don't store as much carbon, but the region is three times the size of Texas, so it stores its share.
At least it did, before it was transformed by the march of progress - first into pastures, then into sugarcane and soybean fields. In one field I saw an array of ovens cooking trees into charcoal, spewing Cerrado's carbon into the atmosphere; those ovens used to be ubiquitous, but most of the trees are gone. I had to travel hours through converted Cerrado to see a 96-acre (39 hectare) sliver of intact Cerrado, where a former shopkeeper named Lauro Barbosa had spent his life savings for a nature preserve. "The land prices are going up, up, up," Barbosa told me. "My friends say I'm a fool, and my wife almost divorced me. But I wanted to save something before it's all gone."
The environmental cost of this cropland creep is now becoming apparent. One groundbreaking new study in Science concluded that when this deforestation effect is taken into account, corn ethanol and soy biodiesel produce about twice the emissions of gasoline. Sugarcane ethanol is much cleaner, and biofuels created from waste products that don't gobble up land have real potential, but even cellulosic ethanol increases overall emissions when its plant source is grown on good cropland. "People don't want to believe renewable fuels could be bad," says the lead author, Tim Searchinger, a Princeton scholar and former Environmental Defense attorney. "But when you realize we're tearing down rain forests that store loads of carbon to grow crops that store much less carbon, it becomes obvious."
The growing backlash against biofuels is a product of the law of unintended consequences. It may seem obvious now that when biofuels increase demand for crops, prices will rise and farms will expand into nature. But biofuel technology began on a small scale, and grain surpluses were common. Any ripples were inconsequential. When the scale becomes global, the outcome is entirely different, which is causing cheerleaders for biofuels to recalibrate. "We're all looking at the numbers in an entirely new way," says the Natural Resources Defense Council's Nathanael Greene, whose optimistic "Growing Energy" report in 2004 helped galvanize support for biofuels among green groups.
Several of the most widely cited experts on the environmental benefits of biofuels are warning about the environmental costs now that they've recognized the deforestation effect. "The situation is a lot more challenging than a lot of us thought," says University of California, Berkeley, professor Alexander Farrell, whose 2006 Science article calculating the emissions reductions of various ethanols used to be considered the definitive analysis. The experts haven't given up on biofuels; they're calling for better biofuels that won't trigger massive carbon releases by displacing wildland. Robert Watson, the top scientist at the U.K.'s Department for the Environment, recently warned that mandating more biofuel usage - as the European Union is proposing - would be "insane" if it increases greenhouse gases. But the forces that biofuels have unleashed - political, economic, social - may now be too powerful to constrain.
America the Bio-Foolish
The best place to see this is America's biofuel mecca: Iowa. Last year fewer than 2% of U.S. gas stations offered ethanol, and the country produced 7 billion gal. (26.5 billion L) of biofuel, which cost taxpayers at least $8 billion in subsidies. But on Nov. 6, at a biodiesel plant in Newton, Iowa, Hillary Rodham Clinton unveiled an eye-popping plan that would require all stations to offer ethanol by 2017 while mandating 60 billion gal. (227 billion L) by 2030. "This is the fuel for a much brighter future!" she declared. Barack Obama immediately criticized her - not for proposing such an expansive plan but for failing to support ethanol before she started trolling for votes in Iowa's caucuses.
If biofuels are the new dotcoms, Iowa is Silicon Valley, with 53,000 jobs and $1.8 billion in income dependent on the industry. The state has so many ethanol distilleries under construction that it's poised to become a net importer of corn. That's why biofuel-pandering has become virtually mandatory for presidential contenders. John McCain was the rare candidate who vehemently opposed ethanol as an outrageous agribusiness boondoggle, which is why he skipped Iowa in 2000. But McCain learned his lesson in time for this year's caucuses. By 2006 he was calling ethanol a "vital alternative energy source."
Members of Congress love biofuels too, not only because so many dream about future Iowa caucuses but also because so few want to offend the farm lobby, the most powerful force behind biofuels on Capitol Hill. Ethanol isn't about just Iowa or even the Midwest anymore. Plants are under construction in New York, Georgia, Oregon and Texas, and the ethanol boom's effect on prices has helped lift farm incomes to record levels nationwide.
Someone is paying to support these environmentally questionable industries: you. In December, President Bush signed a bipartisan energy bill that will dramatically increase support to the industry while mandating 36 billion gal. (136 billion L) of biofuel by 2022. This will provide a huge boost to grain markets.
Why is so much money still being poured into such a misguided enterprise? Like the scientists and environmentalists, many politicians genuinely believe biofuels can help decrease global warming. It makes intuitive sense: cars emit carbon no matter what fuel they burn, but the process of growing plants for fuel sucks some of that carbon out of the atmosphere. For years, the big question was whether those reductions from carbon sequestration outweighed the "life cycle" of carbon emissions from farming, converting the crops to fuel and transporting the fuel to market. Researchers eventually concluded that yes, biofuels were greener than gasoline. The improvements were only about 20% for corn ethanol because tractors, petroleum-based fertilizers and distilleries emitted lots of carbon. But the gains approached 90% for more efficient fuels, and advocates were confident that technology would progressively increase benefits.
There was just one flaw in the calculation: the studies all credited fuel crops for sequestering carbon, but no one checked whether the crops would ultimately replace vegetation and soils that sucked up even more carbon. It was as if the science world assumed biofuels would be grown in parking lots. The deforestation of Indonesia has shown that's not the case. It turns out that the carbon lost when wilderness is razed overwhelms the gains from cleaner-burning fuels. A study by University of Minnesota ecologist David Tilman concluded that it will take more than 400 years of biodiesel use to "pay back" the carbon emitted by directly clearing peat lands to grow palm oil; clearing grasslands to grow corn for ethanol has a payback period of 93 years. The result is that biofuels increase demand for crops, which boosts prices, which drives agricultural expansion, which eats forests. Searchinger's study concluded that overall, corn ethanol has a payback period of about 167 years because of the deforestation it triggers.
Not every kernel of corn diverted to fuel will be replaced. Diversions raise food prices, so the poor will eat less. That's the reason a U.N. food expert recently called agrofuels a "crime against humanity." Lester Brown of the Earth Policy Institute says that biofuels pit the 800 million people with cars against the 800 million people with hunger problems. Four years ago, two University of Minnesota researchers predicted the ranks of the hungry would drop to 625 million by 2025; last year, after adjusting for the inflationary effects of biofuels, they increased their prediction to 1.2 billion.
Industry advocates say that as farms increase crop yields, as has happened throughout history, they won't need as much land. They'll use less energy, and they'll use farm waste to generate electricity. To which Searchinger says: Wonderful! But growing fuel is still an inefficient use of good cropland. Strange as it sounds, we're better off growing food and drilling for oil. Sure, we should conserve fuel and buy efficient cars, but we should keep filling them with gas if the alternatives are dirtier.
The lesson behind the math is that on a warming planet, land is an incredibly precious commodity, and every acre used to generate fuel is an acre that can't be used to generate the food needed to feed us or the carbon storage needed to save us. Searchinger acknowledges that biofuels can be a godsend if they don't use arable land. Possible feedstocks include municipal trash, agricultural waste, algae and even carbon dioxide, although none of the technologies are yet economical on a large scale. Tilman even holds out hope for fuel crops - he's been experimenting with Midwestern prairie grasses - as long as they're grown on "degraded lands" that can no longer support food crops or cattle.
Changing the Incentives
That's certainly not what's going on in Brazil. There's a frontier feel to the southern Amazon right now. Gunmen go by names like Lizard and Messiah, and Carter tells harrowing stories about decapitations and castrations and hostages. Brazil has remarkably strict environmental laws - in the Amazon, landholders are permitted to deforest only 20% of their property - but there's not much law enforcement. I left Kotok to see Blairo Maggi, who is not only the soybean king of the world, with nearly half a million acres (200,000 hectares) in the province of Mato Grosso, but also the region's governor. "It's like your Wild West right now," Maggi says. "There's no money for enforcement, so people do what they want."
Maggi has been a leading pioneer on the Brazilian frontier, and it irks him that critics in the U.S. - which cleared its forests and settled its frontier 125 years ago but still provides generous subsidies to its farmers - attack him for doing the same thing except without subsidies and with severe restrictions on deforestation. Imagine Iowa farmers agreeing to keep 80% - or even 20% - of their land in native prairie grass. "You make us sound like bandits," Maggi tells me. "But we want to achieve what you achieved in America. We have the same dreams for our families. Are you afraid of the competition?"
Maggi got in trouble recently for saying he'd rather feed a child than save a tree, but he's come to recognize the importance of the forest. "Now I want to feed a child and save a tree," he says with a grin. But can he do all that and grow fuel for the world as well? "Ah, now you've hit the nail on the head." Maggi says the biofuel boom is making him richer, but it's also making it harder to feed children and save trees. "There are many mouths to feed, and nobody's invented a chip to create protein without growing crops," says his pal Homero Pereira, a congressman who is also the head of Mato Grosso's farm bureau. "If you don't want us to tear down the forest, you better pay us to leave it up!"
Everyone I interviewed in Brazil agreed: the market drives behavior, so without incentives to prevent deforestation, the Amazon is doomed. It's unfair to ask developing countries not to develop natural areas without compensation. Anyway, laws aren't enough. Carter tried confronting ranchers who didn't obey deforestation laws and nearly got killed; now his nonprofit is developing certification programs to reward eco-sensitive ranchers. "People see the forest as junk," he says. "If you want to save it, you better open your pocketbook. Plus, you might not get shot."
The trouble is that even if there were enough financial incentives to keep the Amazon intact, high commodity prices would encourage deforestation elsewhere. And government mandates to increase biofuel production are going to boost commodity prices, which will only attract more investment. Until someone invents that protein chip, it's going to mean the worst of everything: higher food prices, more deforestation and more emissions.
Advocates are always careful to point out that biofuels are only part of the solution to global warming, that the world also needs more energy-efficient lightbulbs and homes and factories and lifestyles. And the world does need all those things. But the world is still going to be fighting an uphill battle until it realizes that right now, biofuels aren't part of the solution at all. They're part of the problem.
States Are Hit Hard by Economic Downturn
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By Keith B. Richburg and Ashley Surdin
Many cutbacks felt by most needy.
New York - In Illinois' Cook County, women in poor neighborhoods no longer have access to free mammograms from two mobile vans testing for breast cancer.
In Michigan, hikers will find about 20 campgrounds closed, and scientists are ending their studies of fish populations in the Great Lakes.
In New Jersey, state workers are being laid off, and at least one town is canceling its traditional Fourth of July fireworks.
And in California's San Fernando Valley, Everardo Orozco, 53, who has AIDS, exhausted his medical benefits and can no longer afford the drugs that are keeping him alive.
"I don't know which ones I can afford every month," Orozco said, explaining how his supply is dwindling and his share of the payments has skyrocketed from $400 to $3,200 per month. He now injects himself with some medications once a day instead of twice - not enough to keep his T-cell count from dropping or to prevent his body from becoming resistant to treatment. And he fears that there will be more cuts.
State budgets have been hit hard by a worsening national economy, including rising costs for energy and health care. In addition, fallout from the subprime mortgage crisis - declining home sales, deflated property values and mounting foreclosures - has caused a slide in states' anticipated tax receipts. Revenue from property taxes, sales taxes and real estate transfer taxes is affected.
At least half of the nation's states are facing budget shortfalls, some of them severe, and policymakers in most of the states affected are proposing and passing often-painful measures to trim costs and close the gaps. Spending on schools is being slashed, after-school programs are being curtailed and teachers are being notified of potential layoffs. Health-care assistance is being cut for the elderly, the disabled and the poor. Some government offices, such as motor vehicle department locations, will start closing on weekends, and some state workers are receiving pink slips.
Some analysts worry that the impact is being felt disproportionately by the most needy.
"It's disappointing, the extent they tend to focus their cuts on the most vulnerable," said Iris J. Lav, deputy director of the Washington-based Center on Budget and Policy Priorities, a liberal think tank that monitors state budget issues. "It does appear to disproportionately affect low-income people."
Unlike the federal government, which can run deficits, almost all states are required by their own laws and constitutions to balance their budgets. Many states are just now hammering out their budgets, so some targeted programs could still be saved in last-minute negotiations.
In most states, talk of raising taxes has become politically perilous, particularly with residents already hurting from falling housing values and a worsening economy.
Only half a dozen states have approved, or are considering, tax increases, including Maryland and Michigan, both of which raised taxes in 2007. In New Jersey, which has a $3 billion deficit, Gov. Jon S. Corzine (D) has proposed eliminating or reducing most property tax rebates. In New York, facing a $5 billion shortfall, an idea in the General Assembly for a new income tax for people making more than $1 million per year died last week after the Republican-controlled Senate, and Gov. David A. Paterson (D), strongly opposed it.
Instead of raising taxes, most states with shortfalls are curtailing services, and the effects are already being felt nationwide. Some of the most dramatic cuts are being made in California, Maine and Rhode Island, according to budget experts, with New Jersey not far behind.
California is facing the worst budget crisis, with a $16 billion shortfall, and Gov. Arnold Schwarzenegger (R) has proposed a $4.8 billion cut in education services. About 20,000 teachers, counselors, librarians, nurses and other support staff members have received notice of potential layoffs, according to the state's Education Department.
Los Angeles, which has the state's largest school district and a $6 billion budget, faces a $460 million cut for the next school year - the dollar equivalent of shutting down the entire district for two weeks.
In Thousand Oaks, Calif., the Conejo Valley Unified School District, home to 30 schools and 22,000 students, has already closed two elementary schools for next year. Superintendent Mario Contini said layoffs could be next. "School districts have been making cuts every year, and there isn't much left to cut," he said. "We've already cut the flesh to the bone, and now we're removing the skeletal parts. It's that severe."
Schwarzenegger has also proposed $650 million in cuts to the Healthy Families Program and Medi-Cal, which together provide health-care services to more than 7 million senior citizens, disabled people and children in the state. Adults under the Medi-Cal program would lose their dental benefits, as well as optometry and psychology services.
The California Department of Public Health is also facing an $11 million cut to AIDS services, with the bulk of that - $7 million - coming from a program that helps low-income Californians, such as Orozco, obtain lifesaving antiretroviral medicine.
Orozco had been paying $400 per month for the 15 daily medications he needs. But when his allotment under the program ran out, his share jumped to $3,200, and he could no longer afford five of the drugs.
"We want to continue to live, you know," he said. "We need to continue fighting what this is. I've been dealing with this since 1983. Every day, it's a fight. It's not easy. Either they help us do something to fight this, or we're going to die."
A recent 50-state survey by the Associated Press showed that hundreds of thousands of poor children, the disabled and the elderly stand to have their health coverage eliminated as a result of budget cuts, and more than 10 million people would lose access to dental care, specialists and name-brand prescription drugs.
Budget experts said they see a repeat of the pattern that happened during the recession of 2001: States generally cut health services and medical benefits first, because these costs are often rising more rapidly than others, and the savings tend to be immediate.
Subsidies to higher education are also a favored target for budget cuts - mainly because policymakers often believe that universities can find money from other sources, such as private donations or higher tuition.
Budgets for parks and recreation, and for natural resources and science, also stand to take a hit.
In cash-strapped Michigan, dealing with the struggles of the automobile industry, the Department of Natural Resources is closing 20 campgrounds, including the highly popular and rustic Pinney Bridge State Forest Campground, considered one of the most beautiful in the Lower Peninsula. The department also plans to end its studies of fish populations in the Great Lakes, and 14 conservation officials are being laid off.
Hunters in Michigan will also find their license fees increased.
In Illinois, Gov. Rod Blagojevich (D) has proposed ending a popular controlled pheasant-hunting program at state sites. Outraged hunters have said that among those affected will be the young and the handicapped, who have access to special hunts under the state program.
By Keith B. Richburg and Ashley Surdin
Many cutbacks felt by most needy.
New York - In Illinois' Cook County, women in poor neighborhoods no longer have access to free mammograms from two mobile vans testing for breast cancer.
In Michigan, hikers will find about 20 campgrounds closed, and scientists are ending their studies of fish populations in the Great Lakes.
In New Jersey, state workers are being laid off, and at least one town is canceling its traditional Fourth of July fireworks.
And in California's San Fernando Valley, Everardo Orozco, 53, who has AIDS, exhausted his medical benefits and can no longer afford the drugs that are keeping him alive.
"I don't know which ones I can afford every month," Orozco said, explaining how his supply is dwindling and his share of the payments has skyrocketed from $400 to $3,200 per month. He now injects himself with some medications once a day instead of twice - not enough to keep his T-cell count from dropping or to prevent his body from becoming resistant to treatment. And he fears that there will be more cuts.
State budgets have been hit hard by a worsening national economy, including rising costs for energy and health care. In addition, fallout from the subprime mortgage crisis - declining home sales, deflated property values and mounting foreclosures - has caused a slide in states' anticipated tax receipts. Revenue from property taxes, sales taxes and real estate transfer taxes is affected.
At least half of the nation's states are facing budget shortfalls, some of them severe, and policymakers in most of the states affected are proposing and passing often-painful measures to trim costs and close the gaps. Spending on schools is being slashed, after-school programs are being curtailed and teachers are being notified of potential layoffs. Health-care assistance is being cut for the elderly, the disabled and the poor. Some government offices, such as motor vehicle department locations, will start closing on weekends, and some state workers are receiving pink slips.
Some analysts worry that the impact is being felt disproportionately by the most needy.
"It's disappointing, the extent they tend to focus their cuts on the most vulnerable," said Iris J. Lav, deputy director of the Washington-based Center on Budget and Policy Priorities, a liberal think tank that monitors state budget issues. "It does appear to disproportionately affect low-income people."
Unlike the federal government, which can run deficits, almost all states are required by their own laws and constitutions to balance their budgets. Many states are just now hammering out their budgets, so some targeted programs could still be saved in last-minute negotiations.
In most states, talk of raising taxes has become politically perilous, particularly with residents already hurting from falling housing values and a worsening economy.
Only half a dozen states have approved, or are considering, tax increases, including Maryland and Michigan, both of which raised taxes in 2007. In New Jersey, which has a $3 billion deficit, Gov. Jon S. Corzine (D) has proposed eliminating or reducing most property tax rebates. In New York, facing a $5 billion shortfall, an idea in the General Assembly for a new income tax for people making more than $1 million per year died last week after the Republican-controlled Senate, and Gov. David A. Paterson (D), strongly opposed it.
Instead of raising taxes, most states with shortfalls are curtailing services, and the effects are already being felt nationwide. Some of the most dramatic cuts are being made in California, Maine and Rhode Island, according to budget experts, with New Jersey not far behind.
California is facing the worst budget crisis, with a $16 billion shortfall, and Gov. Arnold Schwarzenegger (R) has proposed a $4.8 billion cut in education services. About 20,000 teachers, counselors, librarians, nurses and other support staff members have received notice of potential layoffs, according to the state's Education Department.
Los Angeles, which has the state's largest school district and a $6 billion budget, faces a $460 million cut for the next school year - the dollar equivalent of shutting down the entire district for two weeks.
In Thousand Oaks, Calif., the Conejo Valley Unified School District, home to 30 schools and 22,000 students, has already closed two elementary schools for next year. Superintendent Mario Contini said layoffs could be next. "School districts have been making cuts every year, and there isn't much left to cut," he said. "We've already cut the flesh to the bone, and now we're removing the skeletal parts. It's that severe."
Schwarzenegger has also proposed $650 million in cuts to the Healthy Families Program and Medi-Cal, which together provide health-care services to more than 7 million senior citizens, disabled people and children in the state. Adults under the Medi-Cal program would lose their dental benefits, as well as optometry and psychology services.
The California Department of Public Health is also facing an $11 million cut to AIDS services, with the bulk of that - $7 million - coming from a program that helps low-income Californians, such as Orozco, obtain lifesaving antiretroviral medicine.
Orozco had been paying $400 per month for the 15 daily medications he needs. But when his allotment under the program ran out, his share jumped to $3,200, and he could no longer afford five of the drugs.
"We want to continue to live, you know," he said. "We need to continue fighting what this is. I've been dealing with this since 1983. Every day, it's a fight. It's not easy. Either they help us do something to fight this, or we're going to die."
A recent 50-state survey by the Associated Press showed that hundreds of thousands of poor children, the disabled and the elderly stand to have their health coverage eliminated as a result of budget cuts, and more than 10 million people would lose access to dental care, specialists and name-brand prescription drugs.
Budget experts said they see a repeat of the pattern that happened during the recession of 2001: States generally cut health services and medical benefits first, because these costs are often rising more rapidly than others, and the savings tend to be immediate.
Subsidies to higher education are also a favored target for budget cuts - mainly because policymakers often believe that universities can find money from other sources, such as private donations or higher tuition.
Budgets for parks and recreation, and for natural resources and science, also stand to take a hit.
In cash-strapped Michigan, dealing with the struggles of the automobile industry, the Department of Natural Resources is closing 20 campgrounds, including the highly popular and rustic Pinney Bridge State Forest Campground, considered one of the most beautiful in the Lower Peninsula. The department also plans to end its studies of fish populations in the Great Lakes, and 14 conservation officials are being laid off.
Hunters in Michigan will also find their license fees increased.
In Illinois, Gov. Rod Blagojevich (D) has proposed ending a popular controlled pheasant-hunting program at state sites. Outraged hunters have said that among those affected will be the young and the handicapped, who have access to special hunts under the state program.
Gore Unveils $300 Million Climate Ads
Go to Original
By Suzanne Goldenberg
Washington - Al Gore, elevated to almost prophetic status for his campaign against global warming, on Sunday night unveiled a new $300m advertising blitz intended to force a debate on climate change during the presidential elections.
The Nobel laureate, who appeared with his wife, Tipper, on the CBS programme 60 Minutes to roll out the effort, is to donate a share of his personal fortune to the campaign.
The couple told 60 Minutes that they would donate his Nobel prize money as well as a matching sum in addition to their profits from the book and the movie of An Inconvenient Truth. The movie brought the issue of global warming home to millions of Americans, as well as winning Gore an Oscar.
In this latest campaign, Gore said he hopes to persuade Americans that protecting the planet transcends the usual political divisions.
"We all share the exact same interest in doing the right thing on this," he told CBS. "Are we destined to destroy this place that we call home, planet earth? I can't believe that that's our destiny. It is not our destiny. But we have to awaken to the moral duty that we have to do the right thing and get out of this silly political game-playing about it. This is about survival."
The first television advertisements, which are to begin airing on broadcast networks as well as cable starting on Wednesday, will pair up the most unlikely partners in the movement to address global warming.
A clip aired on CBS showed the Reverend Al Sharpton sharing a sofa with the conservative preacher Pat Robertson. The two men acknowledge they agree on almost nothing - barring the need to deal with global warming.
Other spots will feature the Democratic Speaker of the House of Representatives, Nancy Pelosi, alongside New Gingrich, the conservative Republican who once held the same post.
The support from such conservative figures as Gingrich and Robertson marks a victory for Gore in his efforts to make global warming a cause for all Americans: evangelical Christians and fiscal conservatives as well as those on the left.
The recognition for his work in the Nobel prize and the Oscar had helped overcome scepticism about whether climate change is man-made.
By this point, Gore argued, the doubters - which include the vice-president, Dick Cheney - had been isolated as a fringe group.
"I think that those people are in such a tiny, tiny minority now with their point of view," he told CBS. "They're almost like the ones who still believe that the moon landing was staged in a movie lot in Arizona and those who believe the earth is flat. That demeans them a little bit, but it's not that far off."
The 60 Minutes segment marked a rare appearance from Gore in the presidential race. After the crushing experience of losing the White House to George Bush despite winning the popular vote in the 2000 elections, Gore has become a cult hero for his passionate advocacy on the environment.
A swathe of Democrats continue to hope that Gore will return to politics - despite his protestations - or that he will weigh in to bring an end to the bruising contest between Hillary Clinton and Barack Obama.
Gore, despite his eight years as Bill Clinton's vice-president, has so far remained neutral in the race.
He also made it clear he has no intention of intervening to bring the contest to a close. "I'm not applying for the job of broker," he told CBS.
The advertising campaign is being created by an advertising agency whose work is familiar to American television viewers. The same agency produced advertisements for Geico car insurance using talking lizards and spoof of Planet of the Apes.
Gore acknowledged that so far Clinton and Obama have devoted relatively little time to discussing their platforms on climate change. But, as he told CBS: "I'm not finished yet."
By Suzanne Goldenberg
Washington - Al Gore, elevated to almost prophetic status for his campaign against global warming, on Sunday night unveiled a new $300m advertising blitz intended to force a debate on climate change during the presidential elections.
The Nobel laureate, who appeared with his wife, Tipper, on the CBS programme 60 Minutes to roll out the effort, is to donate a share of his personal fortune to the campaign.
The couple told 60 Minutes that they would donate his Nobel prize money as well as a matching sum in addition to their profits from the book and the movie of An Inconvenient Truth. The movie brought the issue of global warming home to millions of Americans, as well as winning Gore an Oscar.
In this latest campaign, Gore said he hopes to persuade Americans that protecting the planet transcends the usual political divisions.
"We all share the exact same interest in doing the right thing on this," he told CBS. "Are we destined to destroy this place that we call home, planet earth? I can't believe that that's our destiny. It is not our destiny. But we have to awaken to the moral duty that we have to do the right thing and get out of this silly political game-playing about it. This is about survival."
The first television advertisements, which are to begin airing on broadcast networks as well as cable starting on Wednesday, will pair up the most unlikely partners in the movement to address global warming.
A clip aired on CBS showed the Reverend Al Sharpton sharing a sofa with the conservative preacher Pat Robertson. The two men acknowledge they agree on almost nothing - barring the need to deal with global warming.
Other spots will feature the Democratic Speaker of the House of Representatives, Nancy Pelosi, alongside New Gingrich, the conservative Republican who once held the same post.
The support from such conservative figures as Gingrich and Robertson marks a victory for Gore in his efforts to make global warming a cause for all Americans: evangelical Christians and fiscal conservatives as well as those on the left.
The recognition for his work in the Nobel prize and the Oscar had helped overcome scepticism about whether climate change is man-made.
By this point, Gore argued, the doubters - which include the vice-president, Dick Cheney - had been isolated as a fringe group.
"I think that those people are in such a tiny, tiny minority now with their point of view," he told CBS. "They're almost like the ones who still believe that the moon landing was staged in a movie lot in Arizona and those who believe the earth is flat. That demeans them a little bit, but it's not that far off."
The 60 Minutes segment marked a rare appearance from Gore in the presidential race. After the crushing experience of losing the White House to George Bush despite winning the popular vote in the 2000 elections, Gore has become a cult hero for his passionate advocacy on the environment.
A swathe of Democrats continue to hope that Gore will return to politics - despite his protestations - or that he will weigh in to bring an end to the bruising contest between Hillary Clinton and Barack Obama.
Gore, despite his eight years as Bill Clinton's vice-president, has so far remained neutral in the race.
He also made it clear he has no intention of intervening to bring the contest to a close. "I'm not applying for the job of broker," he told CBS.
The advertising campaign is being created by an advertising agency whose work is familiar to American television viewers. The same agency produced advertisements for Geico car insurance using talking lizards and spoof of Planet of the Apes.
Gore acknowledged that so far Clinton and Obama have devoted relatively little time to discussing their platforms on climate change. But, as he told CBS: "I'm not finished yet."
Top US Housing Official Resigns
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By Rachel L. Swarns
Washington - Housing secretary Alphonso R. Jackson resigned on Monday, saying that he needed to devote more time to his family. The announcement came as federal authorities were investigating whether he had given lucrative housing contracts in the Virgin Islands and New Orleans to friends.
His resignation, effective April 18, also comes as the Bush administration is increasingly relying on the department's Federal Housing Administration to help stanch the widening foreclosures.
In recent weeks, Mr. Jackson had faced mounting pressure to leave his post. The FBI has interviewed several of his employees, and two senior Democratic senators called on him to resign, saying the allegations of wrongdoing had undermined his leadership. Lawmakers have also raised concerns about accusations that Mr. Jackson had threatened to withdraw federal aid from the Philadelphia Housing Authority after its president refused to turn over a $2 million property to a politically connected developer.
Mr. Jackson, who assumed his post as secretary in 2004, did not address those allegations during his brief statement in the 10th floor briefing room of the U.S. Department of Housing and Urban Development.
"There comes a time when one most attend more diligently to personal and family matters," Mr. Jackson said. "Now is such a time for me."
"Seven years ago, President Bush gave me an extraordinary opportunity to serve HUD and the nation," said Mr. Jackson, who first joined the department as deputy secretary in 2001. "As the son of a lead smelter and nurse midwife, and as the last of 12 children, never did I imagine I'd serve America in such a way. I am truly grateful for the opportunity."
Mr. Jackson said that he had worked hard to keep families in their homes, to revitalize public housing and to preserve affordable housing. "During my time here, I have sought to make America a better place to live, work and raise a family," he said.
He left the room without taking any questions.
Before Mr. Jackson's resignation, federal officials had said that 130,000 vulnerable homeowners have refinanced to FHA loans, and they expect that number to increase to 300,000 by the end of the year. Critics have said much more needs to be done.
Senator Patty Murray, Democrat of Washington, called on President Bush to nominate a successor with experience and credibility.
"Hopefully, with new leadership at HUD, we can negotiate a bipartisan plan with the Bush administration to spare the maximum number of families the devastating consequences of losing their home," said Ms. Murray, who had called on Mr. Jackson to resign, along with Senator Christopher Dodd, Democrat of Connecticut.
"I hope this resignation is more than a move to simply save face," Ms. Murray said. "I hope this signals an end to the neglect of needy tenants and struggling homeowners and the beginning of an administration policy that responds meaningfully to the needs of both."
By Rachel L. Swarns
Washington - Housing secretary Alphonso R. Jackson resigned on Monday, saying that he needed to devote more time to his family. The announcement came as federal authorities were investigating whether he had given lucrative housing contracts in the Virgin Islands and New Orleans to friends.
His resignation, effective April 18, also comes as the Bush administration is increasingly relying on the department's Federal Housing Administration to help stanch the widening foreclosures.
In recent weeks, Mr. Jackson had faced mounting pressure to leave his post. The FBI has interviewed several of his employees, and two senior Democratic senators called on him to resign, saying the allegations of wrongdoing had undermined his leadership. Lawmakers have also raised concerns about accusations that Mr. Jackson had threatened to withdraw federal aid from the Philadelphia Housing Authority after its president refused to turn over a $2 million property to a politically connected developer.
Mr. Jackson, who assumed his post as secretary in 2004, did not address those allegations during his brief statement in the 10th floor briefing room of the U.S. Department of Housing and Urban Development.
"There comes a time when one most attend more diligently to personal and family matters," Mr. Jackson said. "Now is such a time for me."
"Seven years ago, President Bush gave me an extraordinary opportunity to serve HUD and the nation," said Mr. Jackson, who first joined the department as deputy secretary in 2001. "As the son of a lead smelter and nurse midwife, and as the last of 12 children, never did I imagine I'd serve America in such a way. I am truly grateful for the opportunity."
Mr. Jackson said that he had worked hard to keep families in their homes, to revitalize public housing and to preserve affordable housing. "During my time here, I have sought to make America a better place to live, work and raise a family," he said.
He left the room without taking any questions.
Before Mr. Jackson's resignation, federal officials had said that 130,000 vulnerable homeowners have refinanced to FHA loans, and they expect that number to increase to 300,000 by the end of the year. Critics have said much more needs to be done.
Senator Patty Murray, Democrat of Washington, called on President Bush to nominate a successor with experience and credibility.
"Hopefully, with new leadership at HUD, we can negotiate a bipartisan plan with the Bush administration to spare the maximum number of families the devastating consequences of losing their home," said Ms. Murray, who had called on Mr. Jackson to resign, along with Senator Christopher Dodd, Democrat of Connecticut.
"I hope this resignation is more than a move to simply save face," Ms. Murray said. "I hope this signals an end to the neglect of needy tenants and struggling homeowners and the beginning of an administration policy that responds meaningfully to the needs of both."
As Jobs Vanish and Prices Rise, Food Stamp Use Nears Record
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By ERIK ECKHOLM
Driven by a painful mix of layoffs and rising food and fuel prices, the number of Americans receiving food stamps is projected to reach 28 million in the coming year, the highest level since the aid program began in the 1960s.
The number of recipients, who must have near-poverty incomes to qualify for benefits averaging $100 a month per family member, has fluctuated over the years along with economic conditions, eligibility rules, enlistment drives and natural disasters like Hurricane Katrina, which led to a spike in the South.
But recent rises in many states appear to be resulting mainly from the economic slowdown, officials and experts say, as well as inflation in prices of basic goods that leave more families feeling pinched. Citing expected growth in unemployment, the Congressional Budget Office this month projected a continued increase in the monthly number of recipients in the next fiscal year, starting Oct. 1 — to 28 million, up from 27.8 million in 2008, and 26.5 million in 2007.
The percentage of Americans receiving food stamps was higher after a recession in the 1990s, but actual numbers are expected to be higher this year.
Federal benefit costs are projected to rise to $36 billion in the 2009 fiscal year from $34 billion this year.
“People sign up for food stamps when they lose their jobs, or their wages go down because their hours are cut,” said Stacy Dean, director of food stamp policy at the Center on Budget and Policy Priorities in Washington, who noted that 14 states saw their rolls reach record numbers by last December.
One example is Michigan, where one in eight residents now receives food stamps. “Our caseload has more than doubled since 2000, and we’re at an all-time record level,” said Maureen Sorbet, spokeswoman for the Michigan Department of Human Services.
The climb in food stamp recipients there has been relentless, through economic upturns and downturns, reflecting a steady loss of industrial jobs that has pushed recipient levels to new highs in Ohio and Illinois as well.
“We’ve had poverty here for a good while,” Ms. Sorbet said. Contributing to the rise, she added, Michigan, like many other states, has also worked to make more low-end workers aware of their eligibility, and a switch from coupons to electronic debit cards has reduced the stigma.
Some states have experienced more recent surges. From December 2006 to December 2007, more than 40 states saw recipient numbers rise, and in several — Arizona, Florida, Maryland, Nevada, North Dakota and Rhode Island — the one-year growth was 10 percent or more.
In Rhode Island, the number of recipients climbed by 18 percent over the last two years, to more than 84,000 as of February, or about 8.4 percent of the population. This is the highest total in the last dozen years or more, said Bob McDonough, the state’s administrator of family and adult services, and reflects both a strong enlistment effort and an upward creep in unemployment.
In New York, a program to promote enrollment increased food stamp rolls earlier in the decade, but the current climb in applications appears in part to reflect economic hardship, said Michael Hayes, spokesman for the Office of Temporary and Disability Assistance. The additional 67,000 clients added from July 2007 to January of this year brought total recipients to 1.86 million, about one in 10 New Yorkers.
Nutrition and poverty experts praise food stamps as a vital safety net that helped eliminate the severe malnutrition seen in the country as recently as the 1960s. But they also express concern about what they called the gradual erosion of their value.
Food stamps are an entitlement program, with eligibility guidelines set by Congress and the federal government paying for benefits while states pay most administrative costs.
Eligibility is determined by a complex formula, but basically recipients must have few assets and incomes below 130 percent of the poverty line, or less than $27,560 for a family of four.
As a share of the national population, food stamp use was highest in 1994, after several years of poor economic growth, with an average of 27.5 million recipients per month from a lower total of residents. The numbers plummeted in the late 1990s as the economy grew and legal immigrants and certain others were excluded.
But access by legal immigrants has been partly restored and, in the current decade, the federal and state governments have used advertising and other measures to inform people of their eligibility and have often simplified application procedures.
Because they spend a higher share of their incomes on basic needs like food and fuel, low-income Americans have been hit hard by soaring gasoline and heating costs and jumps in the prices of staples like milk, eggs and bread.
At the same time, average family incomes among the bottom fifth of the population have been stagnant or have declined in recent years at levels around $15,500, said Jared Bernstein, an economist at the Economic Policy Institute in Washington.
The benefit levels, which can amount to many hundreds of dollars for families with several children, are adjusted each June according to the price of a bare-bones “thrifty food plan,” as calculated by the Department of Agriculture. Because food prices have risen by about 5 percent this year, benefit levels will rise similarly in June — months after the increase in costs for consumers.
Advocates worry more about the small but steady decline in real benefits since 1996, when the “standard deduction” for living costs, which is subtracted from family income to determine eligibility and benefit levels, was frozen. If that deduction had continued to rise with inflation, the average mother with two children would be receiving an additional $37 a month, according to the private Center on Budget and Policy Priorities.
Both houses of Congress have passed bills that would index the deduction to the cost of living, but the measures are part of broader agriculture bills that appear unlikely to pass this year because of disagreements with the White House over farm policy.
Another important federal nutrition program known as WIC, for women, infants and children, is struggling with rising prices of milk and cheese, and growing enrollment.
The program, for households with incomes no higher than 185 percent of the federal poverty level, provides healthy food and nutrition counseling to 8.5 million pregnant women, and children through the age of 4. WIC is not an entitlement like food stamps, and for the fiscal year starting in October, Congress may have to approve a large increase over its current budget of $6 billion if states are to avoid waiting lists for needy mothers and babies.
By ERIK ECKHOLM
Driven by a painful mix of layoffs and rising food and fuel prices, the number of Americans receiving food stamps is projected to reach 28 million in the coming year, the highest level since the aid program began in the 1960s.
The number of recipients, who must have near-poverty incomes to qualify for benefits averaging $100 a month per family member, has fluctuated over the years along with economic conditions, eligibility rules, enlistment drives and natural disasters like Hurricane Katrina, which led to a spike in the South.
But recent rises in many states appear to be resulting mainly from the economic slowdown, officials and experts say, as well as inflation in prices of basic goods that leave more families feeling pinched. Citing expected growth in unemployment, the Congressional Budget Office this month projected a continued increase in the monthly number of recipients in the next fiscal year, starting Oct. 1 — to 28 million, up from 27.8 million in 2008, and 26.5 million in 2007.
The percentage of Americans receiving food stamps was higher after a recession in the 1990s, but actual numbers are expected to be higher this year.
Federal benefit costs are projected to rise to $36 billion in the 2009 fiscal year from $34 billion this year.
“People sign up for food stamps when they lose their jobs, or their wages go down because their hours are cut,” said Stacy Dean, director of food stamp policy at the Center on Budget and Policy Priorities in Washington, who noted that 14 states saw their rolls reach record numbers by last December.
One example is Michigan, where one in eight residents now receives food stamps. “Our caseload has more than doubled since 2000, and we’re at an all-time record level,” said Maureen Sorbet, spokeswoman for the Michigan Department of Human Services.
The climb in food stamp recipients there has been relentless, through economic upturns and downturns, reflecting a steady loss of industrial jobs that has pushed recipient levels to new highs in Ohio and Illinois as well.
“We’ve had poverty here for a good while,” Ms. Sorbet said. Contributing to the rise, she added, Michigan, like many other states, has also worked to make more low-end workers aware of their eligibility, and a switch from coupons to electronic debit cards has reduced the stigma.
Some states have experienced more recent surges. From December 2006 to December 2007, more than 40 states saw recipient numbers rise, and in several — Arizona, Florida, Maryland, Nevada, North Dakota and Rhode Island — the one-year growth was 10 percent or more.
In Rhode Island, the number of recipients climbed by 18 percent over the last two years, to more than 84,000 as of February, or about 8.4 percent of the population. This is the highest total in the last dozen years or more, said Bob McDonough, the state’s administrator of family and adult services, and reflects both a strong enlistment effort and an upward creep in unemployment.
In New York, a program to promote enrollment increased food stamp rolls earlier in the decade, but the current climb in applications appears in part to reflect economic hardship, said Michael Hayes, spokesman for the Office of Temporary and Disability Assistance. The additional 67,000 clients added from July 2007 to January of this year brought total recipients to 1.86 million, about one in 10 New Yorkers.
Nutrition and poverty experts praise food stamps as a vital safety net that helped eliminate the severe malnutrition seen in the country as recently as the 1960s. But they also express concern about what they called the gradual erosion of their value.
Food stamps are an entitlement program, with eligibility guidelines set by Congress and the federal government paying for benefits while states pay most administrative costs.
Eligibility is determined by a complex formula, but basically recipients must have few assets and incomes below 130 percent of the poverty line, or less than $27,560 for a family of four.
As a share of the national population, food stamp use was highest in 1994, after several years of poor economic growth, with an average of 27.5 million recipients per month from a lower total of residents. The numbers plummeted in the late 1990s as the economy grew and legal immigrants and certain others were excluded.
But access by legal immigrants has been partly restored and, in the current decade, the federal and state governments have used advertising and other measures to inform people of their eligibility and have often simplified application procedures.
Because they spend a higher share of their incomes on basic needs like food and fuel, low-income Americans have been hit hard by soaring gasoline and heating costs and jumps in the prices of staples like milk, eggs and bread.
At the same time, average family incomes among the bottom fifth of the population have been stagnant or have declined in recent years at levels around $15,500, said Jared Bernstein, an economist at the Economic Policy Institute in Washington.
The benefit levels, which can amount to many hundreds of dollars for families with several children, are adjusted each June according to the price of a bare-bones “thrifty food plan,” as calculated by the Department of Agriculture. Because food prices have risen by about 5 percent this year, benefit levels will rise similarly in June — months after the increase in costs for consumers.
Advocates worry more about the small but steady decline in real benefits since 1996, when the “standard deduction” for living costs, which is subtracted from family income to determine eligibility and benefit levels, was frozen. If that deduction had continued to rise with inflation, the average mother with two children would be receiving an additional $37 a month, according to the private Center on Budget and Policy Priorities.
Both houses of Congress have passed bills that would index the deduction to the cost of living, but the measures are part of broader agriculture bills that appear unlikely to pass this year because of disagreements with the White House over farm policy.
Another important federal nutrition program known as WIC, for women, infants and children, is struggling with rising prices of milk and cheese, and growing enrollment.
The program, for households with incomes no higher than 185 percent of the federal poverty level, provides healthy food and nutrition counseling to 8.5 million pregnant women, and children through the age of 4. WIC is not an entitlement like food stamps, and for the fiscal year starting in October, Congress may have to approve a large increase over its current budget of $6 billion if states are to avoid waiting lists for needy mothers and babies.
Those Who Control Oil And Water Will Control The World
Go to Original
By John Gray
New superpowers are competing for diminishing resources as Britain becomes a bit-player. The outcome could be deadly
History may not repeat itself, but, as Mark Twain observed, it can sometimes rhyme. The crises and conflicts of the past recur, recognisably similar even when altered by new conditions. At present, a race for the world's resources is underway that resembles the Great Game that was played in the decades leading up to the First World War. Now, as then, the most coveted prize is oil and the risk is that as the contest heats up it will not always be peaceful. But this is no simple rerun of the late 19th and early 20th centuries. Today, there are powerful new players and it is not only oil that is at stake.
It was Rudyard Kipling who brought the idea of the Great Game into the public mind in Kim, his cloak-and-dagger novel of espionage and imperial geopolitics in the time of the Raj. Then, the main players were Britain and Russia and the object of the game was control of central Asia's oil. Now, Britain hardly matters and India and China, which were subjugated countries during the last round of the game, have emerged as key players. The struggle is no longer focused mainly on central Asian oil. It stretches from the Persian Gulf to Africa, Latin America, even the polar caps, and it is also a struggle for water and depleting supplies of vital minerals. Above all, global warming is increasing the scarcity of natural resources. The Great Game that is afoot today is more intractable and more dangerous than the last.
The biggest new player in the game is China and it is there that the emerging pattern is clearest. China's rulers have staked everything on economic growth. Without improving living standards, there would be large-scale unrest, which could pose a threat to their power. Moreover, China is in the middle of the largest and fastest move from the countryside to the city in history, a process that cannot be stopped.
There is no alternative to continuing growth, but it comes with deadly side-effects. Overused in industry and agriculture, and under threat from the retreat of the Himalayan glaciers, water is becoming a non-renewable resource. Two-thirds of China's cities face shortages, while deserts are eating up arable land. Breakneck industrialisation is worsening this environmental breakdown, as many more power plants are being built and run on high-polluting coal that accelerates global warming. There is a vicious circle at work here and not only in China. Because ongoing growth requires massive inputs of energy and minerals, Chinese companies are scouring the world for supplies. The result is unstoppable rising demand for resources that are unalterably finite.
Although oil reserves may not have peaked in any literal sense, the days when conventional oil was cheap have gone forever. Countries are reacting by trying to secure the remaining reserves, not least those that are being opened up by climate change. Canada is building bases to counter Russian claims on the melting Arctic icecap, parts of which are also claimed by Norway, Denmark and the US. Britain is staking out claims on areas around the South Pole.
The scramble for energy is shaping many of the conflicts we can expect in the present century. The danger is not just another oil shock that impacts on industrial production, but a threat of famine. Without a drip feed of petroleum to highly mechanised farms, many of the food shelves in the supermarkets would be empty. Far from the world weaning itself off oil, it is more addicted to the stuff than ever. It is hardly surprising that powerful states are gearing up to seize their share.
This new round of the Great Game did not start yesterday. It began with the last big conflict of the 20th century, which was an oil war and nothing else. No one pretended the first Gulf War was fought to combat terrorism or spread democracy. As George Bush Snr and John Major admitted at the time, it was aimed at securing global oil supplies, pure and simple. Despite the denials of a less honest generation of politicians, there can be no doubt that controlling the country's oil was one of the objectives of the later invasion of Iraq.
Oil remains at the heart of the game and, if anything, it is even more important than before. With their complex logistics and heavy reliance on air power, high-tech armies are extremely energy-intensive. According to a Pentagon report, the amount of petroleum needed for each soldier each day increased four times between the Second World War and the Gulf War and quadrupled again when the US invaded Iraq. Recent estimates suggest the amount used per soldier has jumped again in the five years since the invasion.
Whereas Western countries dominated the last round of the Great Game, this time they rely on increasingly self-assertive producer countries. Mr Putin's well-honed contempt for world opinion might grate on European ears, but Europe is heavily dependent on his energy. Hugo Chávez might be an object of hate for George W Bush, but Venezuela still supplies around 10 per cent of America's imported oil. President Ahmadinejad is seen by some as the devil incarnate, but with oil at more than a $100 a barrel, any Western attempt to topple him would be horrendously risky.
While Western power declines, the rising powers are at odds with each other. China and India are rivals for oil and natural gas in central Asia. Taiwan, Vietnam, Malaysia and Indonesia have clashed over underwater oil reserves in the South China Sea. Saudi Arabia and Iran are rivals in the Gulf, while Iran and Turkey are eyeing Iraq. Greater international co-operation seems the obvious solution, but the reality is that as the resources crunch bites more deeply, the world is becoming steadily more fragmented and divided.
We are a long way from the fantasy world of only a decade ago, when fashionable gurus were talking sagely of the knowledge economy. Then, we were told material resources did not matter any more - it was ideas that drove economic development. The business cycle had been left behind and an era of endless growth had arrived. Actually, the knowledge economy was an illusion created by cheap oil and cheap money and everlasting booms always end in tears. This is not the end of the world or of global capitalism, just history as usual.
What is different this time is climate change. Rising sea levels reduce food and fresh-water supplies, which may trigger large-scale movements of refugees from Africa and Asia into Europe. Global warming threatens energy supplies. As the fossil fuels of the past become more expensive, others, such as tar sands, are becoming more economically viable, but these alternative fuels are also dirtier than conventional oil.
In this round of the Great Game, energy shortage and global warming are reinforcing each another. The result can only be a growing risk of conflict. There were around 1.65 billion people in the world when the last round was played out. At the start of the 21st century, there are four times as many, struggling to secure their future in a world being changed out of recognition by climate change. It would be wise to plan for some more of history's rhymes.
By John Gray
New superpowers are competing for diminishing resources as Britain becomes a bit-player. The outcome could be deadly
History may not repeat itself, but, as Mark Twain observed, it can sometimes rhyme. The crises and conflicts of the past recur, recognisably similar even when altered by new conditions. At present, a race for the world's resources is underway that resembles the Great Game that was played in the decades leading up to the First World War. Now, as then, the most coveted prize is oil and the risk is that as the contest heats up it will not always be peaceful. But this is no simple rerun of the late 19th and early 20th centuries. Today, there are powerful new players and it is not only oil that is at stake.
It was Rudyard Kipling who brought the idea of the Great Game into the public mind in Kim, his cloak-and-dagger novel of espionage and imperial geopolitics in the time of the Raj. Then, the main players were Britain and Russia and the object of the game was control of central Asia's oil. Now, Britain hardly matters and India and China, which were subjugated countries during the last round of the game, have emerged as key players. The struggle is no longer focused mainly on central Asian oil. It stretches from the Persian Gulf to Africa, Latin America, even the polar caps, and it is also a struggle for water and depleting supplies of vital minerals. Above all, global warming is increasing the scarcity of natural resources. The Great Game that is afoot today is more intractable and more dangerous than the last.
The biggest new player in the game is China and it is there that the emerging pattern is clearest. China's rulers have staked everything on economic growth. Without improving living standards, there would be large-scale unrest, which could pose a threat to their power. Moreover, China is in the middle of the largest and fastest move from the countryside to the city in history, a process that cannot be stopped.
There is no alternative to continuing growth, but it comes with deadly side-effects. Overused in industry and agriculture, and under threat from the retreat of the Himalayan glaciers, water is becoming a non-renewable resource. Two-thirds of China's cities face shortages, while deserts are eating up arable land. Breakneck industrialisation is worsening this environmental breakdown, as many more power plants are being built and run on high-polluting coal that accelerates global warming. There is a vicious circle at work here and not only in China. Because ongoing growth requires massive inputs of energy and minerals, Chinese companies are scouring the world for supplies. The result is unstoppable rising demand for resources that are unalterably finite.
Although oil reserves may not have peaked in any literal sense, the days when conventional oil was cheap have gone forever. Countries are reacting by trying to secure the remaining reserves, not least those that are being opened up by climate change. Canada is building bases to counter Russian claims on the melting Arctic icecap, parts of which are also claimed by Norway, Denmark and the US. Britain is staking out claims on areas around the South Pole.
The scramble for energy is shaping many of the conflicts we can expect in the present century. The danger is not just another oil shock that impacts on industrial production, but a threat of famine. Without a drip feed of petroleum to highly mechanised farms, many of the food shelves in the supermarkets would be empty. Far from the world weaning itself off oil, it is more addicted to the stuff than ever. It is hardly surprising that powerful states are gearing up to seize their share.
This new round of the Great Game did not start yesterday. It began with the last big conflict of the 20th century, which was an oil war and nothing else. No one pretended the first Gulf War was fought to combat terrorism or spread democracy. As George Bush Snr and John Major admitted at the time, it was aimed at securing global oil supplies, pure and simple. Despite the denials of a less honest generation of politicians, there can be no doubt that controlling the country's oil was one of the objectives of the later invasion of Iraq.
Oil remains at the heart of the game and, if anything, it is even more important than before. With their complex logistics and heavy reliance on air power, high-tech armies are extremely energy-intensive. According to a Pentagon report, the amount of petroleum needed for each soldier each day increased four times between the Second World War and the Gulf War and quadrupled again when the US invaded Iraq. Recent estimates suggest the amount used per soldier has jumped again in the five years since the invasion.
Whereas Western countries dominated the last round of the Great Game, this time they rely on increasingly self-assertive producer countries. Mr Putin's well-honed contempt for world opinion might grate on European ears, but Europe is heavily dependent on his energy. Hugo Chávez might be an object of hate for George W Bush, but Venezuela still supplies around 10 per cent of America's imported oil. President Ahmadinejad is seen by some as the devil incarnate, but with oil at more than a $100 a barrel, any Western attempt to topple him would be horrendously risky.
While Western power declines, the rising powers are at odds with each other. China and India are rivals for oil and natural gas in central Asia. Taiwan, Vietnam, Malaysia and Indonesia have clashed over underwater oil reserves in the South China Sea. Saudi Arabia and Iran are rivals in the Gulf, while Iran and Turkey are eyeing Iraq. Greater international co-operation seems the obvious solution, but the reality is that as the resources crunch bites more deeply, the world is becoming steadily more fragmented and divided.
We are a long way from the fantasy world of only a decade ago, when fashionable gurus were talking sagely of the knowledge economy. Then, we were told material resources did not matter any more - it was ideas that drove economic development. The business cycle had been left behind and an era of endless growth had arrived. Actually, the knowledge economy was an illusion created by cheap oil and cheap money and everlasting booms always end in tears. This is not the end of the world or of global capitalism, just history as usual.
What is different this time is climate change. Rising sea levels reduce food and fresh-water supplies, which may trigger large-scale movements of refugees from Africa and Asia into Europe. Global warming threatens energy supplies. As the fossil fuels of the past become more expensive, others, such as tar sands, are becoming more economically viable, but these alternative fuels are also dirtier than conventional oil.
In this round of the Great Game, energy shortage and global warming are reinforcing each another. The result can only be a growing risk of conflict. There were around 1.65 billion people in the world when the last round was played out. At the start of the 21st century, there are four times as many, struggling to secure their future in a world being changed out of recognition by climate change. It would be wise to plan for some more of history's rhymes.
A Third American War Crime in the Making
Go to Original
By Paul Craig Roberts
The US Congress, the US media, the American people, and the United Nations, are looking the other way as Cheney prepares his attack on Iran.
If only America had an independent media and an opposition party. If there were a shred of integrity left in American political life, perhaps a third act of naked aggression--a third war crime under the Nuremberg standard--by the Bush Regime could be prevented.
On March 30, the Russian News & Information Agency, Novosti, cited “a high-ranking security source: “The latest military intelligence data point to heightened US military preparations for both an air and ground operation against Iran.” http://en.rian.ru/russia/20070327/62697703.html
According to Novosti, Russian Colonel General Leonid Ivashov said “that the Pentagon is planning to deliver a massive air strike on Iran’s military infrastructure in the near future.”
The chief of Russia’s general staff, Yuri Baluyevsky, said last November that Russia was beefing up its military in response to US aggression, but that the Russian military is not “obliged to defend the world from the evil Americans.” http://www.mnweekly.ru/national/20071115/55289883.html
On March 29, OpEdNews cited a report by the Saudi Arabian newspaper Okaz, which was picked up by the German news service, DPA. The Saudi newspaper reported on March 22, the day following Cheney’s visit with the kingdom’s rulers, that the Saudi Shura Council is preparing “national plans to deal with any sudden nuclear and radioactive hazards that may affect the kingdom following experts’ warnings of possible attacks on Iran’s Bushehr nuclear reactors.” http://empireburlesquenow.blogspot.com/2008/03/worried-yet-saudis-prepare-for-sudden.html
And Admiral William “there will be no attack on Iran on my watch” Fallon has been removed as US chief of Central Command, thus clearing the way for Cheney’s planned attack on Iran.
The Iranians don’t seem to believe it, despite the dispatch of US nuclear submarines and another aircraft carrier attack group to the Persian Gulf. To counter any Iranian missiles launched in response to an attack, the US is deploying anti-missile defenses to protect US bases and Saudi oil fields.
Two massive failures by the American media, the Democratic Party, and the American people have paved the way for Cheney’s long planned attack on Iran. One failure is the lack of skepticism about the US government’s explanation of 9/11. The other failure is the Democrats’ refusal to begin impeachment proceedings against President Bush for lying to the Congress, the American people, and the world and launching an invasion of Iraq based on deception and fabricated evidence.
If an American president can start a war exactly as Adolf Hitler did with pure lies and not be held accountable, he can get away with anything. And Bush and his evil regime have.
Hitler launched World War II with his invasion of Poland after staging a “Polish attack” on a German radio station. On the night of August 31, 1939, a group of Nazis disguised in Polish uniforms seized a radio station in Germany. Hitler announced that “last night Polish troops crossed the frontier and attacked Germany,” a claim no more true than the Bush Regime’s claim that “Saddam Hussein has weapons of mass destruction.” Hitler’s lie failed, because his invasion of Poland, which began the next day allegedly in reprisal for the Polish attack, had obviously been planned for many months.
Iran is a beautiful and developed country. It is an ancient civilization. It has attacked no one. Iran is a signatory to the Nuclear Non-proliferation Treaty. Iran is permitted by the treaty to have a nuclear energy program. The Bush Regime’s case against Iran is based on the Bush Regime’s desire to deny Iran its rights under the treaty.
The International Atomic Energy Agency inspectors have repeatedly reported that they have found no evidence of an Iranian nuclear weapons program. Despite all the disinformation from US Gen. Petraeus and other Bush Regime military lackeys, Iran is not arming the Iraqis who are resisting the American occupation.
If Iran were arming insurgents, the insurgents would have two weapons that would neutralize the US advantage in the Iraqi conflict: missiles to knock down US helicopter gunships and rocket-propelled grenades that knock out American tanks. The insurgents do not have these weapons and must construct clumsy anti-tank weapons out of artillery shells. The insurgents are helpless against US air power and cannot mass forces to take on the American troops.
Indiscriminate American violence has reduced Iraq to rubble. The civilian infrastructure is essentially destroyed--electricity, water and sewer systems, medical care and schools. Depleted uranium is everywhere poisoning everyone, including US troops. There is no economy, and half or more of Iraqis are unemployed. Literally no Iraqi family has escaped an injury or a death as a consequence of the US invasion. Millions of Iraqis have become displaced persons. A developed country with a professional middle class has been destroyed because of lies told by the President and Vice President of the US. The Bush Regime’s lies are echoed by a neoconservative media, and have gone unchallenged by the opposition party and an indifferent American public.
In Afghanistan, death and destruction rains on even the smallest village from the air. America’s wars in Iraq and Afghanistan are wars against the civilian populations.
Just as the world could not believe Hitler’s next horror and thus was always unprepared, the Iranians despite all the evidence cannot believe that even the Great Satan would gratuitously attack Iran based on nothing but lies about non-existent nuclear weapons.
Iran’s only chance would be to strike before the US delivers the first blow. Instead of using its missiles to take out the Saudi oil fields and to sink the US aircraft carriers, instead of closing the Strait of Hormuz, instead of arming the Iraqi Shi’ites and moving them to insurgency, Iran is perched like a sitting duck in denial even as the US and its Iraqi puppet Maliki move to eliminate Al Sadr’s Iraqi Shi’ite militia in order to avoid supply disruptions and a Shi’ite rebellion in Iraq when the US attack on Iran comes.
It is important to emphasize that Iran is making no moves toward war. Having tamed, blackmailed, and purchased Congress, the US media, and US allies and puppets, Cheney might delight in the arrogance with which he can now attack Iran free of any restraint or fabricated provocation. On the other hand, he might cover himself by orchestrating an “Iranian provocation” to justify his attack as a response. But like Hitler’s planned attack against Poland, Cheney’s attack on Iran has long been in the works.
On March 29 the Associated Press reported that Libyan leader Moammar Gadhafi “poured contempt on fellow Arab leaders” at the Arab summit that day. Gadhafi told the Arab “leaders,” many of whom are on the American payroll, that their American masters would turn on them all, just as America turned on Saddam Hussein after using him to fight a proxy war against Iran.
Saddam had once been an ally of Washington, Gadhafi reminded the Arabs, “but they sold him out.” Gadhafi told the American puppets, “Your turn is next.”
Gadhafi asked, “Where is the Arabs’ dignity, their future, their very existence?” If Arabs remain disunited, he predicted, “they will turn themselves into protectorates. They will be marginalized and turn into garbage dumps.”
Indeed, it is this disunity that permits the US to bomb and murder at will in the Middle East.
By Paul Craig Roberts
The US Congress, the US media, the American people, and the United Nations, are looking the other way as Cheney prepares his attack on Iran.
If only America had an independent media and an opposition party. If there were a shred of integrity left in American political life, perhaps a third act of naked aggression--a third war crime under the Nuremberg standard--by the Bush Regime could be prevented.
On March 30, the Russian News & Information Agency, Novosti, cited “a high-ranking security source: “The latest military intelligence data point to heightened US military preparations for both an air and ground operation against Iran.” http://en.rian.ru/russia/20070327/62697703.html
According to Novosti, Russian Colonel General Leonid Ivashov said “that the Pentagon is planning to deliver a massive air strike on Iran’s military infrastructure in the near future.”
The chief of Russia’s general staff, Yuri Baluyevsky, said last November that Russia was beefing up its military in response to US aggression, but that the Russian military is not “obliged to defend the world from the evil Americans.” http://www.mnweekly.ru/national/20071115/55289883.html
On March 29, OpEdNews cited a report by the Saudi Arabian newspaper Okaz, which was picked up by the German news service, DPA. The Saudi newspaper reported on March 22, the day following Cheney’s visit with the kingdom’s rulers, that the Saudi Shura Council is preparing “national plans to deal with any sudden nuclear and radioactive hazards that may affect the kingdom following experts’ warnings of possible attacks on Iran’s Bushehr nuclear reactors.” http://empireburlesquenow.blogspot.com/2008/03/worried-yet-saudis-prepare-for-sudden.html
And Admiral William “there will be no attack on Iran on my watch” Fallon has been removed as US chief of Central Command, thus clearing the way for Cheney’s planned attack on Iran.
The Iranians don’t seem to believe it, despite the dispatch of US nuclear submarines and another aircraft carrier attack group to the Persian Gulf. To counter any Iranian missiles launched in response to an attack, the US is deploying anti-missile defenses to protect US bases and Saudi oil fields.
Two massive failures by the American media, the Democratic Party, and the American people have paved the way for Cheney’s long planned attack on Iran. One failure is the lack of skepticism about the US government’s explanation of 9/11. The other failure is the Democrats’ refusal to begin impeachment proceedings against President Bush for lying to the Congress, the American people, and the world and launching an invasion of Iraq based on deception and fabricated evidence.
If an American president can start a war exactly as Adolf Hitler did with pure lies and not be held accountable, he can get away with anything. And Bush and his evil regime have.
Hitler launched World War II with his invasion of Poland after staging a “Polish attack” on a German radio station. On the night of August 31, 1939, a group of Nazis disguised in Polish uniforms seized a radio station in Germany. Hitler announced that “last night Polish troops crossed the frontier and attacked Germany,” a claim no more true than the Bush Regime’s claim that “Saddam Hussein has weapons of mass destruction.” Hitler’s lie failed, because his invasion of Poland, which began the next day allegedly in reprisal for the Polish attack, had obviously been planned for many months.
Iran is a beautiful and developed country. It is an ancient civilization. It has attacked no one. Iran is a signatory to the Nuclear Non-proliferation Treaty. Iran is permitted by the treaty to have a nuclear energy program. The Bush Regime’s case against Iran is based on the Bush Regime’s desire to deny Iran its rights under the treaty.
The International Atomic Energy Agency inspectors have repeatedly reported that they have found no evidence of an Iranian nuclear weapons program. Despite all the disinformation from US Gen. Petraeus and other Bush Regime military lackeys, Iran is not arming the Iraqis who are resisting the American occupation.
If Iran were arming insurgents, the insurgents would have two weapons that would neutralize the US advantage in the Iraqi conflict: missiles to knock down US helicopter gunships and rocket-propelled grenades that knock out American tanks. The insurgents do not have these weapons and must construct clumsy anti-tank weapons out of artillery shells. The insurgents are helpless against US air power and cannot mass forces to take on the American troops.
Indiscriminate American violence has reduced Iraq to rubble. The civilian infrastructure is essentially destroyed--electricity, water and sewer systems, medical care and schools. Depleted uranium is everywhere poisoning everyone, including US troops. There is no economy, and half or more of Iraqis are unemployed. Literally no Iraqi family has escaped an injury or a death as a consequence of the US invasion. Millions of Iraqis have become displaced persons. A developed country with a professional middle class has been destroyed because of lies told by the President and Vice President of the US. The Bush Regime’s lies are echoed by a neoconservative media, and have gone unchallenged by the opposition party and an indifferent American public.
In Afghanistan, death and destruction rains on even the smallest village from the air. America’s wars in Iraq and Afghanistan are wars against the civilian populations.
Just as the world could not believe Hitler’s next horror and thus was always unprepared, the Iranians despite all the evidence cannot believe that even the Great Satan would gratuitously attack Iran based on nothing but lies about non-existent nuclear weapons.
Iran’s only chance would be to strike before the US delivers the first blow. Instead of using its missiles to take out the Saudi oil fields and to sink the US aircraft carriers, instead of closing the Strait of Hormuz, instead of arming the Iraqi Shi’ites and moving them to insurgency, Iran is perched like a sitting duck in denial even as the US and its Iraqi puppet Maliki move to eliminate Al Sadr’s Iraqi Shi’ite militia in order to avoid supply disruptions and a Shi’ite rebellion in Iraq when the US attack on Iran comes.
It is important to emphasize that Iran is making no moves toward war. Having tamed, blackmailed, and purchased Congress, the US media, and US allies and puppets, Cheney might delight in the arrogance with which he can now attack Iran free of any restraint or fabricated provocation. On the other hand, he might cover himself by orchestrating an “Iranian provocation” to justify his attack as a response. But like Hitler’s planned attack against Poland, Cheney’s attack on Iran has long been in the works.
On March 29 the Associated Press reported that Libyan leader Moammar Gadhafi “poured contempt on fellow Arab leaders” at the Arab summit that day. Gadhafi told the Arab “leaders,” many of whom are on the American payroll, that their American masters would turn on them all, just as America turned on Saddam Hussein after using him to fight a proxy war against Iran.
Saddam had once been an ally of Washington, Gadhafi reminded the Arabs, “but they sold him out.” Gadhafi told the American puppets, “Your turn is next.”
Gadhafi asked, “Where is the Arabs’ dignity, their future, their very existence?” If Arabs remain disunited, he predicted, “they will turn themselves into protectorates. They will be marginalized and turn into garbage dumps.”
Indeed, it is this disunity that permits the US to bomb and murder at will in the Middle East.
Will Wheat-Killer Fungus be used to spread GMO wheat?
Go to Original
By F. William Engdahl
By F. William Engdahl
A deadly fungus, known as Ug99, which kills wheat, has likely spread to Pakistan from Africa according to reports in the British New Scientist magazine. If true, that threatens the vital Asian Bread Basket including the Punjab region. The spread of the deadly virus, stem rust, against which an effective fungicide does not exist, comes as world grain stocks reach the lowest in four decades and government subsidized bio-ethanol production, especially in the USA, Brazil and EU are taking land out of food production at alarming rates. The deadly fungus is being used by Monsanto and the US Government to spread patented GMO seeds.
Stem rust is the worst of three rusts that afflict wheat plants. The fungus grows primarily in the stems, plugging the vascular system so carbohydrates can’t get from the leaves to the grain, which shrivels. In the 1950s, the last major outbreak destroyed 40% of the spring wheat crop in North America. At that time governments started a major effort to breed resistant wheat plants, led by Norman Borlaug of the Rockefeller Foundation. That was the misnamed Green Revolution. The result today is far fewer varieties of wheat that might resist such a new fungus outbreak.
The first strains of Ug99 were detected in 1999 in Uganda. It spread to Kenya by 2001, to Ethiopia by 2003 and to Yemen when the cyclone Gonu spread its spores in 2007. Now the deadly fungus has been found in Iran and according to British scientists may already be as far as Pakistan.
Pakistan and India account for 20 percent of the annual world wheat production. It is possible as the fungus spreads that large movements could take place almost overnight if certain wind conditions prevail at the right time. In 2007 a three-day wind event recorded by Mexico’s CIMMYT (International Maize and Wheat Improvement Center), had strong wind currents moving from Yemen, where Ug99 is present, across Pakistan and India, going all the way to China. CIMMYT estimates that from two-thirds to three-quarters of the wheat now planted in India and Pakistan are highly susceptible to this new strain of stem rust. One billion people who live in this region and they are highly dependent on wheat for their food supply.
These are all areas where the agricultural infrastructure to contain such problems is either extremely weak or non-existent. It threatens to spread into other wheat producing regions of Asia and eventually the entire world if not checked.
FAO World Grain Forecast
The 2007 World Agriculture Forecast of the United Nations’ Food and Agriculture Organization (FAO) in Rome, projects an alarming trend in world food supply in the absence of any devastation from Ug99. The report states, “countries in the non-OECD region are expected to continue to experience a much stronger increase in consumption of agricultural products than countries in the OECD area. This trend is driven by population and, above all, income growth – underpinned by rural migration to higher income urban areas...OECD countries as a group are projected to lose production and export shares in many commodities…Growth in the use of agricultural commodities as feedstock to a rapidly increasing biofuel industry is one of the main drivers in the outlook and one of the reasons for international commodity prices to attain a significantly higher plateau over the outlook period than has been reported in the previous reports.” (my emphasis—w.e.).
The FAO warns that the explosive growth in acreage used to grow fuels and not food in the past three years is dramatically changing the outlook for food supply globally and forcing food prices sharply higher for all foods from cereals to sugar to meat and dairy products. The use of cereals, sugar, oilseeds and vegetable oils to satisfy the needs of a rapidly
increasing bio-fuel industry, is one of the main drivers, most especially the large volumes of maize in the US, wheat and rapeseed in the EU and sugar in Brazil for ethanol and bio-diesel production. This is already causing dramatically higher crop prices, higher feed costs and sharply higher prices for livestock products.
Ironically, the current bio-ethanol industry is being driven by US government subsidies and a scientifically false argument in the EU and USA that bio-ethanol is less harmful to the environment than petroleum fuels and can reduce CO2 emissions. The arguments have been demonstrated in every respect to be false. The huge expansion of global acreage now planted to produce bio-fuels is creating ecological problems and demanding use of far heavier pesticide spraying while use of bio-fuels in autos releases even deadlier emissions than imagined. The political effect, however, has been a catastrophic shift in world grain stocks at the same time the EU and USA have enacted policies which drastically cut traditional emergency grain reserves. In short, it is a scenario pre-programmed for catastrophe, one which has been clear to policymakers in the EU and USA for several years. That can only suggest that such a dramatic crisis in global food supply is intentional.
Ug99 is a race of stem rust that blocks the vascular tissues in cereal grains including wheat, oats and barley. Unlike other rusts that may reduce crop yields, Ug99-infected plants may suffer up to 100 percent loss.
A plan to spread GMO?
One of the consequences of the spread of Ug99 is a campaign by Monsanto Corporation and other major producers of genetically manipulated plant seeds to promote wholesale introduction of GMO wheat varieties said to be resistant to the Ug99 fungus. Biologists at Monsanto and at the various GMO laboratories around the world are working to patent such strains.
Norman Borlaug, the former Rockefeller Foundation head of the Green Revolution is active in funding the research to develop a fungus resistant variety against Ug99 working with his former center in Mexico, the CIMMYT and ICARDA in Kenya, where the pathogen is now endemic. So far, about 90% of the 12,000 lines tested are susceptible to Ug99. That includes all the major wheat cultivars of the Middle East and west Asia. At least 80% of the 200 varieties sent from the United States can’t cope with infection. The situation is even more dire for Egypt, Iran, and other countries in immediate peril.
Even if a new resistant variety was ready to be released today it would take two or three years’ seed increase in order to have just enough wheat seed for 20 percent of the acres planted to wheat in the world.
Work is also being done by the USDA’s Agricultural Research Service (ARS), the same agency which co-developed Monsanto’s Terminator seed technology. In my book, Seeds of Destruction I document the insidious role of Borlaug and the Rockefeller Foundation in promoting patents on food seeds to reduce global population. The spreading alarm over the Ug99 fungus is being used by Monsanto and other GMO agribusiness companies to demand that the current ban on GMO wheat be lifted to allow spread of GMO patented wheat seeds on the argument they are Ug99 stem rust resistant.
F. William Engdahl is a Research Associate of the Centre for Research on Globalization and the author of Seeds of Destruction: the Hidden Agenda of Genetic Manipulation published by Global Research and A Century of War: Anglo-American Oil Politics and the New World Order (Pluto Press). He may be contacted at www.engdahl.oilgeopolitics.net.
Chaos on Wall Street
Go to Original
By Allan Sloan
The big banks' fear of big losses is threatening to bring down the entire system, with dire consequences for all of us. Here's what's going on, and what we can do about it.
What in the world is going on here? Why is Washington spending billions to bail out Wall Street titans while leaving struggling homeowners to fend for themselves? Why are the Federal Reserve and the Treasury acting as if they're afraid the world may come to an end, while the stock market seems much less concerned? And finally, what does all this mean to those of us who aren't financial professionals?
Okay, take a few breaths, pour yourself a beverage of your choice, and I'll tell you what's happening - and what I think is going to happen. Although I expect these problems will resolve themselves without a catastrophic meltdown, I'll also tell you why I'm more nervous about the world financial system now than I've ever been in my 40 years of covering business and markets.
Finally, I'll tell you why I fear that the Wall Street enablers of the biggest financial mess of my lifetime will escape with relatively light damage, leaving the rest of us - and our children and grandchildren - to pay for their misdeeds.
We're suffering the aftereffects of the collapse of a Tinker Bell financial market, one that depended heavily on borrowed money that has now vanished like pixie dust. Like Tink, the famous fairy from Peter Pan, this market could exist only as long as everyone agreed to believe in it.
So because it was convenient - and oh, so profitable! - players embraced fantasies like U.S. house prices never falling and cheap short-term money always being available. They created, bought, and sold, for huge profits, securities that almost no one understood. And they goosed their returns by borrowing vast amounts of money.
The first shoe
The fantasies began to fade last June when Bear Stearns (BSC, Fortune 500) let two of its hedge funds collapse because of mortgage-backed-securities problems. Debt market - both here and abroad - went sour big-time. That, in turn, became a huge drag on the U.S. economy, bringing on the current economic slowdown.
And before you ask: It's irrelevant whether or not we're in a recession, which National Bureau of Economic Research experts define as "a significant decline in economic activity spread across the economy, lasting more than a few months." What matters is that we're in a dangerous and messy situation that has produced an economic slowdown unlike those we're used to seeing.
How is this slowdown different from other slowdowns? Normally the economy goes bad first, creating financial problems. In this slowdown the markets are dragging down the economy - a crucial distinction, because markets are harder to fix than the economy.
A leading political economist, Allan Meltzer of Carnegie Mellon, calls it "an unusual situation, but not unprecedented." When was the last time it happened in the U.S.? "In 1929," he says. And it touched off the Great Depression.
No, Meltzer isn't saying that a Great Depression - 25% unemployment, social unrest, mass hunger, millions of people's savings wiped out in bank collapses - is upon us. Nor, for that matter, am I. But the precedent is unsettling, to say the least. You can only imagine how unsettling it is to Federal Reserve chairman Ben Bernanke, a former economics professor who made his academic bones writing about the Great Depression.
Academics now feel that the 1929 slowdown morphed into a Great Depression in large part because the Fed tightened credit rather than loosening it. With that precedent in mind, you can see why Bernanke's Fed is cutting rates rapidly and throwing everything but the kitchen sink at today's problems. (Bernanke will probably throw that in too, if the Fed's plumbers can unbolt it.) None of this Alan Greenspan (remember him?) quarter-point-at-a-time stuff for him.
Fear is the culprit
So why hasn't the cure worked? The problem is that vital markets that most people never see - the constant borrowing and lending and trading among huge institutions - have been paralyzed by losses, fear, and uncertainty. And you can't get rid of losses, fear, and uncertainty by cutting rates.
Giant institutions are, to use the technical term, scared to death. They've had to come back time after time and report additional losses on their securities holdings after telling the market that they had cleaned everything up. It's whack-a-mole finance - the problems keep appearing in unexpected places. Since the Tink market began tanking, so many shoes have dropped that it looks like Imelda Marcos's closet.
We've had problems with mortgage-backed securities, collateralized debt obligations, collateralized loan obligations, financial insurers, structured investment vehicles, asset-backed commercial paper, auction rate securities, liquidity puts. By the time you read this, something else - my bet's on credit default swaps - may have become the disaster du jour.
To paraphrase what a top Fednik told me in a moment of candor last fall: You realize that you don't know what's in your own portfolio, so how can you know what's in the portfolio of people who want to borrow from you?
Combine that with the fact that big firms are short of capital because of their losses (some of which have to do with accounting rules I won't inflict on you today) and that they're afraid of not being able to borrow enough short-term money to fund their obligations, and you can see why credit has dried up.
The fear - a justifiable one - is that if one big financial firm fails, it will lead to cascading failures throughout the world. Big firms are so interlinked with one another and with other market players that the failure of one large counterparty, as they're called, can drag down counterparties all over the globe. And if the counterparties fail, it could drag down the counterparties' counterparties, and so on. Meltdown City.
The long-term view
In 1998 the Fed orchestrated a bailout of the Long-Term Capital Management hedge fund because it had $1.25 trillion in transactions with other institutions. These days that's almost small beer, because Wall Street has created a parallel banking system in which hedge funds, investment banks, and other essentially unregulated entities took over much of what regulated commercial banks used to do.
But there's a vital difference. Conventional banks have reason to take something of a long-term view: Mess up and you have no reputation, no bank, no job, no one talking to you at the country club.
In the parallel system a different ethos prevails. If you take big, even reckless, bets and win, you have a great year and you get a great bonus - or in the case of hedge funds, 20% of the profits. If you lose money the following year, you lose your investors' money rather than your own - and you don't have to give back last year's bonus. Heads, you win; tails, you lose someone else's money.
Bernanke and his point man on Wall Street, New York Fed president Tim Geithner, know everything I've said, of course. As does Treasury Secretary Hank Paulson, former head of Goldman Sachs (GS, Fortune 500).
They know a lot more too - such as which specific institutions are running out of the ability to borrow and have huge obligations they need to refinance day in and day out. Walk by Fed facilities in New York City or Washington, and you can feel the fear emanating from the building.
Because these aren't normal times, the Fed has tried to reassure the markets by inventing three new ways to inundate the financial system with staggering amounts of short-term money. This is in addition to the Fed's existing mechanisms, which are vast.
By Allan Sloan
The big banks' fear of big losses is threatening to bring down the entire system, with dire consequences for all of us. Here's what's going on, and what we can do about it.
What in the world is going on here? Why is Washington spending billions to bail out Wall Street titans while leaving struggling homeowners to fend for themselves? Why are the Federal Reserve and the Treasury acting as if they're afraid the world may come to an end, while the stock market seems much less concerned? And finally, what does all this mean to those of us who aren't financial professionals?
Okay, take a few breaths, pour yourself a beverage of your choice, and I'll tell you what's happening - and what I think is going to happen. Although I expect these problems will resolve themselves without a catastrophic meltdown, I'll also tell you why I'm more nervous about the world financial system now than I've ever been in my 40 years of covering business and markets.
Finally, I'll tell you why I fear that the Wall Street enablers of the biggest financial mess of my lifetime will escape with relatively light damage, leaving the rest of us - and our children and grandchildren - to pay for their misdeeds.
We're suffering the aftereffects of the collapse of a Tinker Bell financial market, one that depended heavily on borrowed money that has now vanished like pixie dust. Like Tink, the famous fairy from Peter Pan, this market could exist only as long as everyone agreed to believe in it.
So because it was convenient - and oh, so profitable! - players embraced fantasies like U.S. house prices never falling and cheap short-term money always being available. They created, bought, and sold, for huge profits, securities that almost no one understood. And they goosed their returns by borrowing vast amounts of money.
The first shoe
The fantasies began to fade last June when Bear Stearns (BSC, Fortune 500) let two of its hedge funds collapse because of mortgage-backed-securities problems. Debt market - both here and abroad - went sour big-time. That, in turn, became a huge drag on the U.S. economy, bringing on the current economic slowdown.
And before you ask: It's irrelevant whether or not we're in a recession, which National Bureau of Economic Research experts define as "a significant decline in economic activity spread across the economy, lasting more than a few months." What matters is that we're in a dangerous and messy situation that has produced an economic slowdown unlike those we're used to seeing.
How is this slowdown different from other slowdowns? Normally the economy goes bad first, creating financial problems. In this slowdown the markets are dragging down the economy - a crucial distinction, because markets are harder to fix than the economy.
A leading political economist, Allan Meltzer of Carnegie Mellon, calls it "an unusual situation, but not unprecedented." When was the last time it happened in the U.S.? "In 1929," he says. And it touched off the Great Depression.
No, Meltzer isn't saying that a Great Depression - 25% unemployment, social unrest, mass hunger, millions of people's savings wiped out in bank collapses - is upon us. Nor, for that matter, am I. But the precedent is unsettling, to say the least. You can only imagine how unsettling it is to Federal Reserve chairman Ben Bernanke, a former economics professor who made his academic bones writing about the Great Depression.
Academics now feel that the 1929 slowdown morphed into a Great Depression in large part because the Fed tightened credit rather than loosening it. With that precedent in mind, you can see why Bernanke's Fed is cutting rates rapidly and throwing everything but the kitchen sink at today's problems. (Bernanke will probably throw that in too, if the Fed's plumbers can unbolt it.) None of this Alan Greenspan (remember him?) quarter-point-at-a-time stuff for him.
Fear is the culprit
So why hasn't the cure worked? The problem is that vital markets that most people never see - the constant borrowing and lending and trading among huge institutions - have been paralyzed by losses, fear, and uncertainty. And you can't get rid of losses, fear, and uncertainty by cutting rates.
Giant institutions are, to use the technical term, scared to death. They've had to come back time after time and report additional losses on their securities holdings after telling the market that they had cleaned everything up. It's whack-a-mole finance - the problems keep appearing in unexpected places. Since the Tink market began tanking, so many shoes have dropped that it looks like Imelda Marcos's closet.
We've had problems with mortgage-backed securities, collateralized debt obligations, collateralized loan obligations, financial insurers, structured investment vehicles, asset-backed commercial paper, auction rate securities, liquidity puts. By the time you read this, something else - my bet's on credit default swaps - may have become the disaster du jour.
To paraphrase what a top Fednik told me in a moment of candor last fall: You realize that you don't know what's in your own portfolio, so how can you know what's in the portfolio of people who want to borrow from you?
Combine that with the fact that big firms are short of capital because of their losses (some of which have to do with accounting rules I won't inflict on you today) and that they're afraid of not being able to borrow enough short-term money to fund their obligations, and you can see why credit has dried up.
The fear - a justifiable one - is that if one big financial firm fails, it will lead to cascading failures throughout the world. Big firms are so interlinked with one another and with other market players that the failure of one large counterparty, as they're called, can drag down counterparties all over the globe. And if the counterparties fail, it could drag down the counterparties' counterparties, and so on. Meltdown City.
The long-term view
In 1998 the Fed orchestrated a bailout of the Long-Term Capital Management hedge fund because it had $1.25 trillion in transactions with other institutions. These days that's almost small beer, because Wall Street has created a parallel banking system in which hedge funds, investment banks, and other essentially unregulated entities took over much of what regulated commercial banks used to do.
But there's a vital difference. Conventional banks have reason to take something of a long-term view: Mess up and you have no reputation, no bank, no job, no one talking to you at the country club.
In the parallel system a different ethos prevails. If you take big, even reckless, bets and win, you have a great year and you get a great bonus - or in the case of hedge funds, 20% of the profits. If you lose money the following year, you lose your investors' money rather than your own - and you don't have to give back last year's bonus. Heads, you win; tails, you lose someone else's money.
Bernanke and his point man on Wall Street, New York Fed president Tim Geithner, know everything I've said, of course. As does Treasury Secretary Hank Paulson, former head of Goldman Sachs (GS, Fortune 500).
They know a lot more too - such as which specific institutions are running out of the ability to borrow and have huge obligations they need to refinance day in and day out. Walk by Fed facilities in New York City or Washington, and you can feel the fear emanating from the building.
Because these aren't normal times, the Fed has tried to reassure the markets by inventing three new ways to inundate the financial system with staggering amounts of short-term money. This is in addition to the Fed's existing mechanisms, which are vast.
Brace for $1 Trillion Writedown of `Yertle the Turtle' Debt
Go to Original
By James Pressley
Be it ever so devalued, $1 trillion is a lot of dough.
By James Pressley
Be it ever so devalued, $1 trillion is a lot of dough.
That’s roughly on a par with the Russian economy. More than double the market value of Exxon Mobil Corp. About nine times the combined wealth of Warren Buffett and Bill Gates.
Yet $1 trillion is the amount of defaults and writedowns Americans will likely witness before they emerge at the far side of the bursting credit bubble, estimates Charles R. Morris in his shrewd primer, ``The Trillion Dollar Meltdown.’’ That calculation assumes an orderly unwinding, which he doesn’t expect.
``The sad truth,’’ he writes, ``is that subprime is just the first big boulder in an avalanche of asset writedowns that will rattle on through much of 2008.’’
Expect the landslide to cascade through high-yield bonds, commercial mortgages, leveraged loans, credit cards and -- the big unknown -- credit-default swaps, Morris says. The notional value for those swaps, which are meant to insure bondholders against default, covered about $45 trillion in portfolios as of mid-2007, up from some $1 trillion in 2001, he writes.
Morris can’t be dismissed as a crank. A lawyer, former banker and author of 10 other books, he knows a thing or two about the complex instruments that have spread toxic debt throughout the credit system. He once ran a company that made software for creating and analyzing securitized asset pools. Yet he writes with tight clarity and blistering pace.
The financial innovations of the past 25 years have done some good, Morris notes. Collateralized mortgage obligations, invented in 1983, saved homeowners $17 billion a year by the mid-1990s, according to one study.
Slicing and Dicing
CMOs transformed the business by slicing pools of mortgages into different bonds for different risk appetites. Top-tier bonds had the first claim on all cash flows and paid commensurately low yields. The bottom tier was the first to absorb all the losses; it paid yields resembling those on junk bonds.
What began as a good thing, though, soon spawned a bewildering array of new asset classes that spread throughout the financial system, marbling balance sheets with what Morris calls inflated valuations, hidden debt and ``phony triple-A ratings.’’ The more the quants fine-tuned the upper tranches of CMOs and other collateralized debt obligations, the more dangerous the bottom slices grew. Bankers began calling it ``toxic waste.’’
Guess where the toxins wound up? That’s right: Credit hedge funds are now the weakest link in the chain, Morris says. Their equity stands at some $750 billion and is so massively leveraged that ``most funds could not survive even a 1 percent to 2 percent payoff demand on their default swap guarantees,’’ he writes.
`Utter Thrombosis’
Morris sketches a scenario in which hedge fund counterparty defaults would ripple through default swap markets, triggering writedowns of insured portfolios, demands for collateral, and a rush to grab cash from defaulting guarantors. The credit system would suffer ``an utter thrombosis,’’ he says, making the subprime crisis ``look like a walk in the park.’’
As bankers and regulators try to prop up the ``Yertle the Turtle-like unstable tower of debt,’’ Morris points to two previous episodes of lost market confidence.
The first was the 1970s inflationary trauma that prompted investors to suck money out of the stocks and bonds that finance business. Confidence returned only after Fed chief Paul Volcker slew runaway inflation by ratcheting up interest rates.
The other precedent is the popped 1980s Japanese asset bubble. In that case, politicians and finance executives tried to paper over their troubles. Two decades later, Japan still hasn’t recovered, Morris writes.
We should be as bold as Volcker, he suggests: Face the scale of the mess, take a $1 trillion writedown and shore up regulatory measures. His recommendations include forcing loan originators to retain the first losses; requiring prime brokers to stop lending to hedge funds that don’t disclose their balance sheets; and bringing the trading of credit derivatives onto exchanges.
What he fears is that the U.S. will instead follow the Japanese precedent, seeking to ``downplay and to conceal. Continuing on that course will be a path to disaster.’’
``The Trillion Dollar Meltdown: Easy Money, High Rollers and the Great Credit Crash’’ is from PublicAffairs (194 pages, $22.95).
Divided Arabs Deliver Little To Iraqis
Go to Original
By Maki al-Nazzal and Dahr Jamail
By Maki al-Nazzal and Dahr Jamail
DAMASCUS - The Arab summit held in Damascus over this weekend has convinced many Iraqis that Arab leaders do not speak for them.
More than anything done or not, the very absence of many Arab leaders at the summit has left displaced Iraqis here angry.
“It was a disappointment to us that some Arab leaders decided not to attend the summit in Damascus,” Dr. Zeki al-Khazraji, an Iraqi refugee in Syria told IPS. “We were looking forward to the summit thinking it might discuss our agonies that have lasted too long without any sign of improvement. If not the Arab leaders, who will think of us?”
Many Iraqi refugees say Arab leaders are cut off from their own people.
“The Iraqi fire is spreading to the Arab world and our leaders must think of their own positions,” Salim Mahmood, an Iraqi freelance journalist in Damascus told IPS. “We cannot understand why Iraqis are left alone to face daily death while Arabs just watch in silence.
“We are trying to understand the pressures applied on our brothers, but meanwhile we demand real intervention from our brothers to stop our government and the Americans from spilling our blood like water in Iraq.”
The Arab summit kicked off Saturday with a fiery speech from Libyan President Muammar Gaddafi attacking fellow Arab leaders for doing nothing while the U.S. invaded Iraq in 2003.
“How can we accept that a foreign power comes to topple an Arab leader while we stand watching,” said Gaddafi. Saddam Hussein, he said, had once been an ally of Washington. “But they sold him out.” He then pointed to Arab officials at the conference to say, “Your turn is next.”
The Libyan leader added: “Where is the Arabs’ dignity, their future, their very existence? Everything has disappeared.”
The United Nations High Commissioner for Refugees says there are at least 1.5 million displaced Iraqis in Syria alone.
“Five years now, and things are getting worse in Iraq while only two poor Arab countries (Syria and Jordan) are taking the load of Iraqis who fled their country for safety,” Malek Sabeeh from the Iraqi Centre for Human Rights told IPS.
“Syria was our first safe haven, but how long can this country that has limited resources stand the high cost of hosting such a huge number of refugees while other countries are paying billions of dollars for building separation walls between them and Iraq, and now boycotting such an important summit.” Sabeeh was referring to Saudi Arabia and Kuwait who are building protection walls along their borders with Iraq.
Leaders from Saudi Arabia, Egypt and Jordan stayed away from the summit after Washington urged its allies to think twice before attending.
Many Iraqi refugees also expressed anger over the lack of support from the Gulf countries. Gulf countries such as the United Arab Emirates do not allow Iraqis in, and their contributions to Iraqi refugees have been modest.
Many Iraqis say the absence of many Arab leaders highlighted the deep divisions caused by the U.S.-led occupation of Iraq across the Middle East. “This nation will never be united as long as Americans have their fingers in the area,” Sheikh Faris Ahmed, an Iraqi cleric who brought his son for medical treatment in Syria told IPS.
Egypt and some Gulf countries have recently signed arms deals with the U.S. worth several billion dollars.
Maki, our correspondent in Syria, works in close collaboration with Dahr Jamail, our U.S.-based specialist writer on Iraq who has reported from the region for more than four years.
British Human Rights Watchdog Questions 42-day Terror Law
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By Alan Travis
By Alan Travis
The government’s own human rights watchdog threatened last night to launch a legal challenge to Labour’s plan to introduce a law that would let police detain terror suspects without charge for 42 days.
The Equality and Human Rights Commission says the key part of the counter-terrorism bill goes against human rights law and may breach the Race Relations Act.
As the home secretary, Jacqui Smith, renewed her appeal to Labour backbenchers to support the measure - amid growing international criticism - the EHRC prepared to brief MPs before the bill’s second reading in the Commons tomorrow. The commission makes clear it will mount a legal challenge if the 42-day limit wins parliamentary backing.
“If adopted, we may seek to use our legal powers to challenge the lawfulness of the provisions and to establish clear legal principles on the use of pre-trial detention,” it says in a briefing note to MPs.
The threat of a legal challenge from the EHRC, which has powers to take judicial review on legislation it considers may be in breach of the European Convention on Human Rights, is another setback to a government determined to increase the time terrorism suspects can be held without charge from 28 to 42 days.
Archbishop Desmond Tutu, Noam Chomsky and the American Civil Liberties Union have led an international outcry against the plan, which is opposed at home by the Tories and Liberal Democrats.
The government receives a further blow today when Lord Dear, the former chief inspector of constabulary, says a change in law would be a “propaganda coup” for al-Qaida. In a Guardian article, Dear writes that every chief constable he has spoken to regards the change as unnecessary.
Dear writes: “Make no mistake, extending pre-charge detention would most certainly be a propaganda coup for al-Qaida and its ilk. When I was an undergraduate reading law at university in the 60s, every self-respecting student had a poster of Che Guevara on their wall and knew something of the writings of [Herbert] Marcuse. Both of those terrorist luminaries said repeatedly that the best course for a terrorist was to provoke a government to overreact to a threat by eroding civil liberties, increasing executive powers and diminishing due process by the denial of justice.”
The deep unease about the new measures was underlined by the EHRC. Set up last October under the chairman Trevor Phillips, it has specific power to take legal action over potential breaches of the Race Relations Act. The commission says it accepts that circumstances might arise which make an increase in the 28 day limit on pre-charge detention helpful to the police in obtaining evidence but this should not be at the expense of fundamental human rights.
It has told the Home Office that a “positive and compelling case” must be made before the maximum limit on pre-charge detention is raised, given its potential impact on liberty, the likelihood of its disproportionate impact on the Muslim community, and the risk of operational error.
“We consider that despite being restricted to particular and specific contingencies, the provisions set out by the Home Office are unlikely to meet threshold tests of public interest, justification or fairness,” the commission adds.
It says the proposed safeguard of parliamentary scrutiny of each order will be meaningless without giving MPs detailed information on each suspect. Yet that would raise constitutional issues.
The commission says the proposed change also raises “very difficult issues” under race equality laws as it is being established to deal with a particular religious and racial minority. The EHRC believes it carries a high risk of damaging community relations, as Muslims are more likely to be regarded with suspicion.
The government is expected to win a Commons majority tomorrow for the bill’s second reading. But Smith faces the prospect of defeat when detailed votes are held on the 42 days issue at the report stage in May after the local elections.
She said yesterday she believed the 42-day extension would be passed. But she told the BBC: “I hope parliamentarians will take their responsibility seriously to give those that we task with keeping us safe from terrorism the tools that we need to do it. I need to make the argument to parliament. As home secretary my responsibility is to do what I believe … it is necessary to protect this country from the serious, sustained, and in some ways growing threat from international terrorism.”
Smith stressed that the government was only taking a precautionary “reserve power” to increase the maximum period for detention without charge to be used in the exceptional circumstances of the country facing multiple terror plots.
Google partners with NSA, CIA on intelligence database
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By Eric Mayes
By Eric Mayes
Google is selling storage and data searching equipment to U.S. Intelligence agencies giving them the power to create internal searches of government data.
The CIA, FBI and National Security Agency have all reportedly banded together to create an internal government intranet – sharing data on a system called Intellipedia.
"Each analyst, for lack of a better term, has a shoe box with their knowledge," Sean Dennehy, chief of Intellipedia development for the CIA, told the San Francisco Chronicle Sunday. "They maintained it in a shared drive or a Word document, but we’re encouraging them to move those platforms so that everyone can benefit."
There are three levels of information available to users: Top secret, secret and sensitive but unclassified. According to numbers provided by the CIA, 37,000 accounts have been established providing access to 200,000 pages of information.
Google supplies the software, hardware and tech support. The software and browsing giant is also licensing its mapping data to government agencies.
"We are a very small group, and even a lot of people in the federal government don’t know that we exist," said Mike Bradshaw, who leads Google’s federal government sales team and its 18 employees, yesterday to the Chronicle.
Federal agencies are not the only government groups lining up for the Google’s know how. The U.S. Coast Guard, The National Oceanographic and Atmospheric Administration, National Highway Safety Administration and the states of Washington and Alabama have also signed up for similar Google systems.
Google’s transactions with the intelligence community have raised privacy concerns.
Questioned by CNET earlier this year, both Google and Microsoft declined to say if they have provided their users private data to federal authorities under the Foreign Intelligence Surveillance Act -- President Bush’s warrantless wiretapping program. In general email and Internet data are not subject to the same privacy rules that wire, telephone and radio transmissions are.
Google told CNET: "As our privacy policy states, we comply with law enforcement requests made with proper service. We do not discuss specific law enforcement requests and generally do not share aggregate information about them. There are also some legal restrictions on what information we can share about law enforcement requests."
Mobile Phones "More Dangerous Than Smoking"
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By Geoffrey Lean
Brain expert warns of huge rise in tumours and calls on industry to take immediate steps to reduce radiation.
Mobile phones could kill far more people than smoking or asbestos, a study by an award-winning cancer expert has concluded. He says people should avoid using them wherever possible and that governments and the mobile phone industry must take "immediate steps" to reduce exposure to their radiation.
The study, by Dr Vini Khurana, is the most devastating indictment yet published of the health risks.
It draws on growing evidence - exclusively reported in the IoS in October - that using handsets for 10 years or more can double the risk of brain cancer. Cancers take at least a decade to develop, invalidating official safety assurances based on earlier studies which included few, if any, people who had used the phones for that long.
Earlier this year, the French government warned against the use of mobile phones, especially by children. Germany also advises its people to minimise handset use, and the European Environment Agency has called for exposures to be reduced.
Professor Khurana - a top neurosurgeon who has received 14 awards over the past 16 years, has published more than three dozen scientific papers - reviewed more than 100 studies on the effects of mobile phones. He has put the results on a brain surgery website, and a paper based on the research is currently being peer-reviewed for publication in a scientific journal.
He admits that mobiles can save lives in emergencies, but concludes that "there is a significant and increasing body of evidence for a link between mobile phone usage and certain brain tumours". He believes this will be "definitively proven" in the next decade.
Noting that malignant brain tumours represent "a life-ending diagnosis", he adds: "We are currently experiencing a reactively unchecked and dangerous situation." He fears that "unless the industry and governments take immediate and decisive steps", the incidence of malignant brain tumours and associated death rate will be observed to rise globally within a decade from now, by which time it may be far too late to intervene medically.
"It is anticipated that this danger has far broader public health ramifications than asbestos and smoking," says Professor Khurana, who told the IoS his assessment is partly based on the fact that three billion people now use the phones worldwide, three times as many as smoke. Smoking kills some five million worldwide each year, and exposure to asbestos is responsible for as many deaths in Britain as road accidents.
Late last week, the Mobile Operators Association dismissed Khurana's study as "a selective discussion of scientific literature by one individual". It believes he "does not present a balanced analysis" of the published science, and "reaches opposite conclusions to the WHO and more than 30 other independent expert scientific reviews".
By Geoffrey Lean
Brain expert warns of huge rise in tumours and calls on industry to take immediate steps to reduce radiation.
Mobile phones could kill far more people than smoking or asbestos, a study by an award-winning cancer expert has concluded. He says people should avoid using them wherever possible and that governments and the mobile phone industry must take "immediate steps" to reduce exposure to their radiation.
The study, by Dr Vini Khurana, is the most devastating indictment yet published of the health risks.
It draws on growing evidence - exclusively reported in the IoS in October - that using handsets for 10 years or more can double the risk of brain cancer. Cancers take at least a decade to develop, invalidating official safety assurances based on earlier studies which included few, if any, people who had used the phones for that long.
Earlier this year, the French government warned against the use of mobile phones, especially by children. Germany also advises its people to minimise handset use, and the European Environment Agency has called for exposures to be reduced.
Professor Khurana - a top neurosurgeon who has received 14 awards over the past 16 years, has published more than three dozen scientific papers - reviewed more than 100 studies on the effects of mobile phones. He has put the results on a brain surgery website, and a paper based on the research is currently being peer-reviewed for publication in a scientific journal.
He admits that mobiles can save lives in emergencies, but concludes that "there is a significant and increasing body of evidence for a link between mobile phone usage and certain brain tumours". He believes this will be "definitively proven" in the next decade.
Noting that malignant brain tumours represent "a life-ending diagnosis", he adds: "We are currently experiencing a reactively unchecked and dangerous situation." He fears that "unless the industry and governments take immediate and decisive steps", the incidence of malignant brain tumours and associated death rate will be observed to rise globally within a decade from now, by which time it may be far too late to intervene medically.
"It is anticipated that this danger has far broader public health ramifications than asbestos and smoking," says Professor Khurana, who told the IoS his assessment is partly based on the fact that three billion people now use the phones worldwide, three times as many as smoke. Smoking kills some five million worldwide each year, and exposure to asbestos is responsible for as many deaths in Britain as road accidents.
Late last week, the Mobile Operators Association dismissed Khurana's study as "a selective discussion of scientific literature by one individual". It believes he "does not present a balanced analysis" of the published science, and "reaches opposite conclusions to the WHO and more than 30 other independent expert scientific reviews".
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