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noble Evo faces Allende’s fate

Roger Burbach, at Thomas Paines Corner, gives some insight into the troubles facing Bolivia’s pro-democracy leader Evo Morales.

Day after day, the crisis deepens in Bolivia, where a rightwing insurgency, supported by the usual suspects, is threatening to shut down the Evo Morales presidency and produce an “Allende” outcome. We all know that Washington, mired in Iraq/Afghanistan, and now with some headaches of its own due to its impertinence in Russia’s sphere of influence, has not been able to intervene in the usual manner to stem the leftwing drift in Latin America. But rest assured that this monster nation has plenty of well-paid, well-trained personnel — above ground and under—in and out of uniform, watching and meddling in such events, even if the distractions elsewhere have prevented a more forceful and effective response.

Now, however, in the defiant insurrectionist stance of Eastern elites who control most of the nation;s riches, Washington planners have bumped into something promising: a native rightwing power base to roll back the long overdue reforms that President Morales is struggling to secure. We must always keep in mind that what is cigarette money at the Pentagon is big money in Latin America and other parts of the Third World, so even a few dollars and resources from the US can easily complicate matters enormously for the growing Latin revolution. And Washington, of course (Obama or McCain won’t be different in this area) wants to bag the big prize: to isolate and then bring down Venezuela’s Chavez and possibly even the Fidelistas. This report by Latin America expert Roger Burbach outlines clearly the high stakes in Bolivia and the rest of the Southern Hemisphere.

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Oil and the Credit Crunch

Today the investment bank Lehman Brothers, the fourth largest in the US, filed for bankruptacy. The effects are being felt around the world already

* Stock markets and the US dollar have tumbled in reaction to Lehman’s collapse, with banking shares hardest hit. UK bank HBOS closed 17.6% lower.
* Central banks have moved to reassure markets. The US Federal Reserve has broadened its emergency lending scheme and the UK and European central banks have injected a total of about $50bn (£28bn; 35bn euros) into the financial system.
* There are fears AIG, once the world’s largest insurer, could also face collapse. It is taking steps to raise money after reportedly seeking a $40bn emergency loan from the Fed.
* Bank of America’s move to buy Merrill in a $50bn deal means that three of the top five US investment banks have fallen prey to the sub-prime crisis within six months.
* In the UK, accountants PricewaterhouseCoopers (PWC) have been appointed as administrators for Lehman.

The whole web of debt based economics that stretches across the globe is beginning to unravel, with even major institutions being threatened with collapse. To many economists this is simply an ‘adjustment’, a simple bubble collapsing for a short while until the market stabilises and then growth can continue unabated. But what if it isn’t just an adjustment? What if the limits to oil supply is helping to, and will in ever greater amounts, continue the credit crunch and take it further than a simple collapsing of a bubble?

Some may be asking how all of this is tied to oil and energy. There are quite a number of relationships:

(1) Some of the organizations with problems were no doubt speculating in oil futures. Once the prices started to drop, the balance sheets of the organizations were affected, and they suddenly needed more capital.

(2) As the companies who speculated in the oil market (all of them, not just the particular ones having problems today) try to unwind their positions because of margin calls, they drive down the price of oil in the futures market. That is likely why we are seeing declining oil prices, at a time when fundamentals would say they should be rising.

(3) As the price of oil and food rises, people have less money to pay debt of all kinds. This has contributed to the rising mortgages defaults, and is helping to drive down home prices. This is very closely tied to problems of banks and other financial institutions.

(4) Structured securities based on sliced and diced mortgages and other debt depend on assumptions regarding “independence of defaults”. Once a shortage of oil and higher food and energy prices start causing mortgage defaults, the defaults are no longer independent (as they would be if they were caused by an illness of a particular homeowner, for example). Instead, there is a systematic bias in the pricing the risk, and the structuring doesn’t work as planned.

(5) Energy companies need well-functioning credit markets to expand their exploration and production, and to pursue alternative energy approaches. For example, expanding the use of wind energy, or electric-powered vehicles, is likely to need a huge amount of debt financing.

I have warned in the past about the possibility of a debt implosion. There is a significant possibility that what we are seeing now is beginning of such an implosion. There are a number of institutions that have problems. Systemic risk (caused in part by counter-party failures) can cause these problems to spread to other institutions.

As Peak Oil increasingly affect the global economy, the current financial crisis will only get worse. An economic system based completely on exponential growth and debt is vulnerable and unsustainable, and was doomed to collapse from its conception. We need to seize back the means to everyday life by fostering and strengthening our local economies, economies based on zero growth and sustainability. Through LETs, credit unions and local currencies, we can take back control of the economy and make it a force for good in rewilding the planet.

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a matter of morals, not morales: respect Bolivia’s democracy!

Yet again, the United States appears to be siding with violent right-wing elements to undermine a Latin American democracy.

By Olivia Burlingame Goumbri, on Alternet

As an American and an expert on US-Venezuela relations, the events unfolding in Bolivia are simply too familiar to escape my notice. The tactics used by opponents of President Chavez during Venezuela’s short-lived coup in 2002 are currently being replicated in a “civic coup” in neighboring Bolivia that is designed to undermine the democratic government of Evo Morales. That nation, though different from Venezuela in so many ways, seems to be travelling down a strikingly similar road, not least in terms of the role of the media in encouraging right-wing, anti-democratic opposition groups and the active support of that process by US officials.Just over a month ago, on August 10th, Morales won a recall referendum with over 67% of the popular vote. This successful electoral process served as a check on his mandate, and was a powerful reaffirmation of the legitimacy of his democratic administration. Bolivians turned out at the polls in even higher numbers for that referendum than during the last presidential race in 2005, when Morales won 53% of votes.Nine days after the peaceful referendum, opposition governors in the eastern states of Tarija, Bani, Pando, and Santa Cruz mobilized protests around their secessionist agenda and desire to exert total control over local natural gas reserves. With those disturbances barely in the past, a new bout of violence is again threatening national unity. Two days of mayhem and violence have wracked the city of Santa Cruz, spurred on by calls broadcast over the national media to join in “civil disobedience” against the government. Journalists considered sympathetic to the government were also harassed and injured.

OAS Secretary General José Miguel Insulza quickly called for the violent actions of opposition groups to end. Calls to dialogue with the government were issued and the destruction and illegal seizures of government buildings, a human rights NGO, and a gas pipeline were condemned. The violence was not merely symbolic, but also carried with it economic consequences; damage to the pipeline slowed exports to Brazil, and repairs to the pipeline could cost an estimated $100 million.

The US Ambassador to Bolivia, Phillip Goldberg, remained astonishingly silent in the lead-up to the unfolding coup. He did, however, attend a meeting with opposition leaders a week earlier, causing great concern to many, including the Bolivian government who declared him persona non grata.

Goldberg is known by Bolivians and many in the policy world as “the Ambassador of Ethnic Cleansing” for his previous role as Special Assistant to Ambassador Richard Holbrooke, one of the architects of the breakup of Yugoslavia. He also promoted the separation of Serbia and Montenegro, and helped foment conflict between Serbian and Albanian forces in Kosovo. It would seem that Goldberg has a particular knack for promoting racial and ethnic divisions, and that doing so has been central to his political career. Among Goldberg’s closest friends are Croatian businessmen in Santa Cruz, who happen to be leaders of the opposition’s “Nación Camba” movement and the local “Civic Committee,” one of the main proponents of destabilization in Bolivia.

In response to the turmoil, President Evo Morales has called for non-violence and ordered the police and military not to use force against the opposition. Instead, the government hopes to uphold the rule of law and wait for opposition actors to abide by calls from the international community to put down their weapons and talk with the government.

So far, this has not happened. On September 10th, after most of the destructive acts had already been carried out, Santa Cruz opposition senator Óscar Ortiz threatened more violence if President Morales continued with a new constitution. Despite the fact that he represents the majority of Bolivians, refusals to recognize President Morales and his legitimate policy initiatives since he was first elected in 2005 have been a growing problem, and one that reflects racism. In Bolivia, the Indigenous majority has often been targeted by violent mobs and paramilitary activity.

Of interest here are many lessons from Venezuela, where opposition elites have been known to mock President Chavez’s mulatto features by calling him a “monkey.” The dangers of an unbridled anti-government media were on display during the 2002 coup, which was advertised by television stations that committed the serious crime of inciting political violence. After advocating the overthrow of the president, these channels conducted news blackouts as the pro-Chavez rallies grew and demanded the return of the democratic order. Also, as in Bolivia, US officials from the Bush administration were quick to lend their support to the opposition.

Let us hope that things do not go this far — or further — in Bolivia. For all of us Americans who espouse democratic ideals here at home, it is important to demand the same standards for Bolivia. Support for democracy cannot be selective. We must respect the right of Bolivians to live in a country that remains peaceful and united, not ransacked and bitterly divided.

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putting nature in Ecuador’s constitution

Ecuador: Nature has rights.

On July 7, the 130-member Ecuadorian constitutional assembly, elected to rewrite the country’s constitution, voted to approve articles that recognise rights for nature and ecosystems.

“If adopted in the final constitution by the people, Ecuador would become the first country in the world to codify a new system of environmental protection based on rights”, says Thomas Linzey, executive director of the Community Environmental Legal Defense Fund.

The environmental clauses that form part of the constitution that will be submitted to a countrywide vote, include a chapter on the “rights for nature”

And from Climate and Capitalism.

Chapter: Rights for Nature

Art. 1. Nature or Pachamama, where life is reproduced and exists, has the right to exist, persist, maintain and regenerate its vital cycles, structure, functions and its processes in evolution.

Every person, people, community or nationality, will be able to demand the recognitions of rights for nature before the public organisms. The application and interpretation of these rights will follow the related principles established in the Constitution.

Art. 2. Nature has the right to an integral restoration. This integral restoration is independent of the obligation on natural and juridical persons or the State to indemnify the people and the collectives that depend on the natural systems.

In the cases of severe or permanent environmental impact, including the ones caused by the exploitation on non renewable natural resources, the State will establish the most efficient mechanisms for the restoration, and will adopt the adequate measures to eliminate or mitigate the harmful environmental consequences.

Art. 3. The State will motivate natural and juridical persons as well as collectives to protect nature; it will promote respect towards all the elements that form an ecosystem.

Art. 4. The State will apply precaution and restriction measures in all the activities that can lead to the extinction of species, the destruction of the ecosystems or the permanent alteration of the natural cycles.

The introduction of organisms and organic and inorganic material that can alter in a definitive way the national genetic patrimony is prohibited.

Art. 5. The persons, people, communities and nationalities will have the right to benefit from the environment and form natural wealth that will allow wellbeing.

The environmental services are cannot be appropriated; its production, provision, use and exploitation, will be regulated by the State.

“Public organisms” in Article 1 means the courts and government agencies, i.e., the people of Ecuador would be able to take action to enforce nature rights if the government did not do so.

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world water crisis underlies world food crisis

Environment News Service

The world’s supplies of clean, fresh water cannot sustain today’s “profligate” use and inadequate management, which have brought shrinking food supplies and rising food costs to most countries, WWF Director General James Leape told the opening session of World Water Week in Stockholm today.

“Behind the world food crisis is a global freshwater crisis, expected to rapidly worsen as climate change impacts intensify,” Leape said. “Irrigation-fed agriculture provides 45 percent of the world’s food supplies, and without it, we could not feed our planet’s population of six billion people.”

Leape warns that many of the world’s irrigation areas are highly stressed and drawing more water than rivers and groundwater reserves can sustain, especially in view of climate change. At the same time, he said, freshwater food reserves are declining in the face of the quickening pace of dam construction and
The World Water Week fountain in Stockholm (Photo by Alex de Sousa) unsustainable water extractions from rivers.

Experts seem to be telling us what many of us already know, but at least the issue is being looked at! No industry should be allowed to contaminate fresh water, and maybe if people lived closer to the land and had more idea of where things came from, they’d care more!

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update on georgia

Mike Ruppert tells us what is happening, on his blog, including a rough idea of what Russia is thinking/saying. We think he is pretty spot on, the US has really messed up by encouraging Georgia’s annexation of Ossetia.

Dear George Bush and Dick Cheney:

So, you do not wish to accept the genrous terms we offered. OK, then. We will destroy the bridge over which Tbilisi receives most of its supplies from the west. There will be food shortages in the capital and plenty of other shortages as well. The capital city will soon be functioning only at maybe 1/2 to 2/3 of its pre-invasion state. Try to plan and execute something in that environment. It will also cut travel and communication between key areas of the country and it will lock refugees out of less-”stressed” areas. It will not hinder our movements at all but displaced persons will cripple yours. Should the BTC pipeline need repair for any future damages you will not be able to get the materiel and equipment to it. Only we will, and BP will come begging to us for assistance.

We will start forest fires in regions where you or your puppet Saakashvili might like to hide troops, tanks and anti-aircraft artillery. And if Turkey or any other NATO country tries to send aid we will block it, thus proving that NATO is ineffective for the protection of Georgia or any other part of Europe east of Gdansk in the North and Sofia in the South. We will leave Georgia in our own time and in our own way. And when we do leave, we will leave behind an invalid, incapapble of funtcioning without billions of dollars of your aid. You have so much money to spend now don’t you? Your own bridges are falling down because you cannot afford to repair them. You are broke and your nation is tired of war after seven years. We are happy to sign your paper so that you may tell your people and your allies that you are doing something but you are only fashioning the noose with which you are hanging yourselves. We are happy to give you all the rope you need for this purpose. It is good, strong Russian rope. You talk — and we will continue to act in a Russian way that has been feared and respected throughout Europe since the Tsars.

You threaten to kick us out of the G8? We are terrified! Britain, France, Germany and Italy depend upon our natural gas to keep from freezing. And Japan buys oil from us as well. The winter is fast approaching and it could be very cold this year. Very cold. We shut down gas exports to the Ukraine a few years ago and this proved that we could shut down all of Europe.

It is no secret that our military doctrine calls for the deployment of tactical nuclear weapons in a potential confrontation with you. This is how we protect against your oh-so-expensive precision guided munitions. You know and we know that we have them in South Ossetia andAbkhasia now.

So what are you doing America? Keep aggravating us and we will continue to punish those countries in the region who support you. You are backing yourselves and, unfortunately us too, into a corner where we both will have to dust off our launch codes. We do not think you really want to do this. We, on the other hand, are Russian.

Perhaps Vice President Cheney will have a heart attack on his way to push the button. We doubt that President Bush can find it.

Have a nice day,

This is insane. But then so are our ‘leaders’.

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“capitalism is literally consuming itself”

The Role of Speculators in the Global Food Crisis

By Beat Balzli and Frank Hornig

Biofuels and global warming have been blamed for shortages driving up the price of food, and both trends have played their role. The planet’s grain reserves are almost empty for a number of reasons, including global population growth and greater prosperity in some countries like India. Feed corn is in short supply because industrialized nations have used it for ethanol. Droughts — in Australia, for example — have devastated rice and wheat harvests. Wheat reserves worldwide are only sufficient right now to cover about 60 days of demand.

This helps to explain why commodity prices have rallied since early 2006, with the price of rice ballooning 217 percent, wheat 136 percent, corn 125 percent and soybeans 107 percent.

But classic supply and demand theory offers only a partial explanation. Sudden price hikes since last January have been alarming. The UN estimates that at least $500 million (€312 million) in immediate aid will be needed by May 1 to avoid serious famines. Agricultural scientists at the world body’s Educational, Scientific and Cultural Organization (UNESCO) have presented a report on the world food crisis. And criticism is growing that hedge funds, index funds, pension funds and investment banks bear part of the blame.

Obvious really. Allowing our food supply to be manipulated by investors is insane – a few people are getting very rich speculating on the price of food, while millions starve. This is capitalism doing what it is best at.

But now speculators are taking advantage of this mechanism. They can buy futures contracts for wheat, for example, at a low price, betting that the price will go up. If the price of the grain rises by the agreed delivery date, they profit.

Some experts now believe these investors have taken over the market, buying futures at unprecedented levels and driving up short-term prices. Since last August, this mechanism has led to a doubling in the price of rice — including the 500,000 tons that the Philippine government plans to buy in early May to address its own shortage.

Greg Warner has worked in the grain wholesaling business for more than two decades. His office sits a block away from the Chicago Futures Exchange. He’s an analyst with the firm AgResource, and he says what is happening now in the wheat market is unprecedented.

“What we normally have is a predictable group of sellers and buyers — mainly farmers and silo operators,” he says. But the landscape has changed since the influx of large index funds. Fund managers seek to maximize their profits using futures contracts, and prices, says Warner, “keep climbing up and up.”

He’s calculated that financial investors now hold the rights to two complete annual harvests of a type of grain traded in Chicago called “soft red winter wheat.”

Wagner is stunned by such developments. He sees them as evidence that capitalism is literally consuming itself.

A recent post from Little Blog in the Woods is calling us all to ACT now. The media is pretty much ignoring the role that speculation in the food markets is having on the price of foodstuffs. We can change this, if enough people draw attention to the immoral activities of investors, making huge profits from betting that food will increase in price (and therefore pushing up those prices).

So. For the first time, I’m going to ask the readers of this blog to DO something. For us all.

Many of the causes of the world food crisis are beyond our immediate reach; we can’t fix global warming this morning.

But one cause is NOT beyond reach. It’s HUGE- and virtually UNRECOGNIZED.

It’s Food “Investment” – otherwise known as- SPECULATION.

Blog reader DC sent in a comment with this link; International Herald Tribune. Even some insiders know it.

The politically engaged population of the US – and the WORLD – does not know it’s there; and do not know that potentially- it could be OUTLAWED. Next week.

It could. Life-critical resources have always been protected from speculation (theoretically!) – it’s an absolute obscenity to sell water to people dying of thirst- the whole species feels that way.

That’s the anger we need to stir; and this post has been written as an introduction to the situation.

So: PLEASE DO THIS:

Do you have a blog? Link to this post. Write about it. Spread it to other blogs. Tell them to read the previous several posts here, too.

In 15 minutes: Email this post to 10 of your contacts who may think as you do. Ask them to pass it on.

Email this post to your legislators; if you know some, personally, send it personally, and ask to talk to them about launching legislation.

Do you have friends in hungry countries? Email them this post- ask them to pass it on. Get them to put it in the hands of their government.

Get this post to your pastor, rabbi, or imam- ask them to turn it into a sermon- and get your congregation RILED.

Do you have contacts in universities? Get this post to activist groups on campuses- get them to work on… DEMONSTRATIONS. There should be THOUSANDS marching down Wall Street, with banners saying-

“MURDERERS!!”

Please join us in bringing this obscene situation into the spotlight. Access to food is a human right, and rich investors should not be allowed to profit from the misery of other people. The internet is a great medium for enabling ordinary people to spread information – do you have a blog or a website? Please publish something about the role speculation is having on world food prices. Spread the word.

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peak clothing and peak water

A BBC article warning that consumers should prepare for the price of clothing to increase.

“It all comes down to energy,” explains Bradley George, head of commodities and resources at Investec Asset Management. “We are basically short of power in the world right now.”

Hence, it is not only a question of whether land should be used to grow crops for food or cotton. It is also a question of how much energy should be used to produce clothes in factories.

Fertiliser costs are also soaring, adding to raw material costs, and the credit crunch is adding to the squeeze as low-margin clothes manufacturers are finding it harder to raise finance.

More worrying, an article in Wired explains how aquifers and rivers are running dry.

That the news is familiar makes it no less alarming: 1.1 billion people, about one-sixth of the world’s population, lack access to safe drinking water. Aquifers under Beijing, Delhi, Bangkok, and dozens of other rapidly growing urban areas are drying up. The rivers Ganges, Jordan, Nile, and Yangtze — all dwindle to a trickle for much of the year. In the former Soviet Union, the Aral Sea has shrunk to a quarter of its former size, leaving behind a salt-crusted waste.

Water has been a serious issue in the developing world for so long that dire reports of shortages in Cairo or Karachi barely register. But the scarcity of freshwater is no longer a problem restricted to poor countries. Shortages are reaching crisis proportions in even the most highly developed regions, and they’re quickly becoming commonplace in our own backyard, from the bleached-white bathtub ring around the Southwest’s half-empty Lake Mead to the parched state of Georgia, where the governor prays for rain. Crops are collapsing, groundwater is disappearing, rivers are failing to reach the sea. Call it peak water, the point at which the renewable supply is forever outstripped by unquenchable demand.

This is not to say the world is running out of water. The same amount exists on Earth today as millions of years ago — roughly 360 quintillion gallons. It evaporates, coalesces in clouds, falls as rain, seeps into the earth, and emerges in springs to feed rivers and lakes, an endless hydrologic cycle ordained by immutable laws of chemistry. But 97 percent of it is in the oceans, where it’s useless unless the salt can be removed — a process that consumes enormous quantities of energy. Water fit for drinking, irrigation, husbandry, and other human uses can’t always be found where people need it, and it’s heavy and expensive to transport. Like oil, water is not equitably distributed or respectful of political boundaries; about 50 percent of the world’s freshwater lies in a half-dozen lucky countries.

And of course, water supplies require energy. As peak oil hits harder, peak water is an inevitable consequence, along with peak everything else. And climate change adds to the problem.

Australia has always been dry. It’s the most arid continent after Antarctica. Covering an area roughly the size of the lower 48 states, it supports less than one-tenth the US population, and even that is an enormous strain on water supplies. The country was founded during the second-worst drought in its history, but the worst dry spell is unfolding right now. Rainfall, which has declined to 25 percent of the long-term average, is projected to plummet another 40 percent by 2050.

Three factors are working to desiccate the landscape. One is simple overexploitation of existing resources. More water is withdrawn to support agriculture, industry, and cities than the system can handle. Another is El Niño, a weather pattern that periodically alters rainfall, further drying the continent. The third is climate change. Australia is growing hotter, which compounds the other two problems by boosting both consumption and evaporation.

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price increases, food shortages and riots

In between the reports of economic downturn, recession, depression and the usual banality of the mainstream media, more and more reports are appearing related to food problems. Worlwide grain harvests are down, grain stocks are at an all time low, poor people are struggling to buy food – some are blaming their governments and protesting/rioting, governments are restricting food exports, the west is using food as biofuels (outpricing those who simply seek to eat), and petrol prices are skyrocketing, pushing the price of practically everything up, up, up.
Because the media is almost entirely owned and controlled by those who gain the most from the status quo, you still have to be paying pretty close attention to notice that there is even a problem, but the news is filtering through. Globalisation and the centralisation of the world’s food and seed supply may be a stupid idea, making a few people very rich and powerful, while engineering a world where most of us are reduced to consumers with little or no control over our food supply, but unfortunately those same few people also own and control most of the news media.

A recent counterpunch article tells us of rioting in Haiti, Egypt and potentially 33 other countries, as well as touching on the plight of poor US citizens.

But just as agribusiness wiped out small U.S. farmers in the 1980s, it has repeated this pattern around the world ever since. As global justice activist Vandana Shiva wrote in 2006, in India “without market regulation agribusiness corporations will make profits selling costly seeds, buying cheap farm produce, and locking farmers in debt. This has been the process by which the small family farmer has disappeared in U.S.A, Argentina, Europe.”

Another article, ‘not so quiet food riots’ from the daily reckoning, talks about food price increases and riots.

The big problem with inflation is that people get low blood sugar when they are hungry, and soon their moods turn sour. I know this for a fact because if breakfast or brunch or lunch or coffee break or dinner or any snack is five minutes late, I involuntarily turn into a screaming monster from hell demanding to know who stole my food and vowing bloody revenge. I can only imagine the anger when hunger is caused because someone can’t afford to buy food!

This “inability to buy food” is one of the problems with inflation, and that ugliness is now here, as we read from Bloomberg.com that “The World Bank in Washington says 33 nations from Mexico to Yemen may face ‘social unrest’ after food and energy costs increased for six straight years.” Hahaha! No kidding?

Even the NY Times is talking about the world food crisis (under ‘opinion’), suggesting that biofuels are a bad idea.

Washington provides a subsidy of 51 cents a gallon to ethanol blenders and slaps a tariff of 54 cents a gallon on imports. In the European Union, most countries exempt biofuels from some gas taxes and slap an average tariff equal to more than 70 cents a gallon of imported ethanol. There are several reasons to put an end to these interventions. At best, corn ethanol delivers only a small reduction in greenhouse gases compared with gasoline. And it could make things far worse if it leads to more farming in forests and grasslands. Rising food prices provide an urgent argument to nix ethanol’s supports.

Commondreams.org talks about global hunger hotspots, and has some analysis of the causes:

“What is not being mentioned is that in the last few decades liberalisation of agriculture, dismantling of state-run institutions like marketing boards, and specialisation of developing countries in exportable cash crops such as coffee, cocoa, cotton, and even flowers has been encouraged by international financial institutions backed by rich countries like the United States, and also by the European Union,” she pointed out.

Mittal said these reforms have driven the poorest countries into a downward spiral. “Removal of tariff barriers has allowed a handful of Northern countries to capture Third World markets by dumping heavily subsidised commodities while undermining local food production,” she said.

The Wall St Journal, again under ‘opinion’ attempts to look at the situation, but does not recognise the huge impact that climate change is having on harvests.

And the New York Times tells us that ‘Finance Ministers Emphasize Food Crisis Over Credit Crisis‘ – at least someone is paying attention!

The world’s economic ministers declared on Sunday that shortages and skyrocketing prices for food posed a potentially greater threat to economic and political stability than the turmoil in capital markets.

The ministers, conferring in the shadow of a slumping American economy that threatens to pull down the economies of other countries, turned their attention to the food crisis and called on the wealthiest countries to fulfill pledges to help prevent starvation and disorder in Asia, Africa and Latin America.

Things are pretty damn bad in many parts of the world, and getting worse – it is imperative that we start accepting that the days of cheap abundant fuel are over (we cant afford to keep dumping CO2 into the atmosphere, and polluting/poisoning our world anyway) and each and every one of us start changing our lives. Forget supermarkets – start learning how to grow veg, co-operate with your neighbours, and preserve your produce for the winter months. Lets face it – we have been conned into dependency, and encouraged to overshoot the earths carrying capacity by many times. A lot of people are going to die. Its a fact, hard to swallow, but fact. But our actions now will define what kind of future the survivors and our decendants will live in.

Biofuels, bigger monoculture farms, and all the rest of the rubbish sold to us as solutions so we can carry on living wasteful, toxic lifestyles as wage slaves, are not the answer. Local solutions, to local problems, local people providing their local needs in a responsible way with local resources.

What are you doing? We’d love to here from you, and share your ideas and your local projects with our readers. Many people are no doubt, after reading this website, very scared for the future – if you are taking practical action in your community, drop us a line. We’d love to hear from you any news or information to help inspire others to start making a better world.

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american refugees are flooding into canada

Report from the BBC, reporting that tens of thousands of US citizens are fleeing to Canada as economic refugees. Also a report on www.chycho.com

Canadians will also need to be prepared for this influx, especially considering that the average processing time for a refugee claim in Canada is currently 14.2 months, “a period during which the applicant is eligible for financial and other support. A failed claimant then also has the right to seek leave to appeal his or her rejection to federal court.” If the American refugee crisis continues to grow as analysts predict, then the cost to Canadians will be astronomical.

Aside from tens of thousands of Americans becoming refugees in their own country, there is another problem. As The Atlantic is reporting, “the subprime crisis is just the tip of the iceberg. Fundamental changes in American life may turn today’s McMansions into tomorrow’s tenements.” Over 60% of the homes in certain communities “were in foreclosure as of late last year. Vandals have kicked in doors and stripped the copper wire from vacant houses; drug users and homeless people have furtively moved in.”

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