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Gene Ellis

The Internationalist » The BRICS India Summit: Beyond Bricolage? - 0 views

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    BRICS
Gene Ellis

Switch to Natural Gas Won't Reduce Carbon Emissions Much, Study Finds - 0 views

  • Switch to Natural Gas Won't Reduce Carbon Emissions Much, Study Finds
Gene Ellis

Monarch Migration Plunges to Lowest Level in Decades - NYTimes.com - 0 views

  • But an equally alarming source of the decline, both Mr. Taylor and Mr. Vidal said, is the explosive increase in American farmland planted in soybean and corn genetically modified to tolerate herbicides. The American Midwest’s corn belt is a critical feeding ground for monarchs, which once found a ready source of milkweed growing between the rows of millions of acres of soybean and corn. But the ubiquitous use of herbicide-tolerant crops has enabled farmers to wipe out the milkweed, and with it much of the butterflies’ food supply.
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    unintended consequences of GM crops
Gene Ellis

"A Centerless Euro Cannot Hold" by Kenneth Rogoff | Project Syndicate - 0 views

  • The bad news is that it has become increasingly clear that, at least for large countries, currency areas will be highly unstable unless they follow national borders.
  • With youth unemployment touching 50% in eurozone countries such as Spain and Greece, is a generation being sacrificed for the sake of a single currency that encompasses too diverse a group of countries to be sustainable?
  • What of Nobel Prize winner Robert Mundell’s famous 1961 conjecture that national and currency borders need not significantly overlap? In his provocative American Economic Review paper “A Theory of Optimum Currency Areas,” Mundell argued that as long as workers could move within a currency region to where the jobs were, the region could afford to forgo the equilibrating mechanism of exchange-rate adjustment.
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  • if intra-eurozone mobility were anything like Mundell’s ideal, today we would not be seeing 25% unemployment in Spain while Germany’s unemployment rate is below 7%.CommentsView/Create comment on this paragraph
  • Peter Kenen argued in the late 1960’s that without exchange-rate movements as a shock absorber, a currency union requires fiscal transfers as a way to share risk.
  • Europe, of course, has no significant centralized tax authority, so this key automatic stabilizer is essentially absent.
  • Many Germans today rightly feel that any system of fiscal transfers will morph into a permanent feeding tube, much the way that northern Italy has been propping up southern Italy for the last century. Indeed, more than 20 years on, Western Germans still see no end in sight for the bills from German unification.
  • Later, Maurice Obstfeld pointed out that, in addition to fiscal transfers, a currency union needs clearly defined rules for the lender of last resort. Otherwise, bank runs and debt panics will be rampant. Obstfeld had in mind a bailout mechanism for banks, but it is now abundantly clear that one also needs a lender of last resort and a bankruptcy mechanism for states and municipalities.
  • A logical corollary of the criteria set forth by Kenen and Obstfeld, and even of Mundell’s labor-mobility criterion, is that currency unions cannot survive without political legitimacy,
  • European policymakers today often complain that, were it not for the US financial crisis, the eurozone would be doing just fine. Perhaps they are right. But any financial system must be able to withstand shocks, including big ones.
Gene Ellis

Should You Eat Chicken? - NYTimes.com - 0 views

  • U.S.D.A. does not stand alone. The Food and Drug Administration (F.D.A.), knowing that manufacturers grow animals under conditions virtually guaranteed to breed disease, allows them to attempt to ward off disease by feeding them antibiotics from birth until death. (This despite the stated intention of the agency to change that, and a court order requiring it to.)
  • About a quarter of all chicken parts are contaminated,
  • The F.D.A. must disallow the use of prophylactic antibiotics in animal production.
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  • The U.S.D.A. must consider salmonella that’s been linked to illness an “adulterant” (as it does strains of E. coli), which would mean that its very presence on foods would be sufficient to take them off the market. Again, it’s almost as simple as that. (Sweden produces chicken with zero levels of salmonella. Are they that much smarter than us?)
Gene Ellis

Europe Haggles Over New Rules Aimed at Saving Fish Stocks - WSJ.com - 0 views

  • Fishermen currently discard nearly a quarter of Europe's total catch on average, and as much as 70% of the hauls in some areas, European Commission data show
  • "The law has been made by someone who doesn't know fisheries," said fisherman Geert Luickx as he painted his boat here in this North Sea port. Without financial assistance, more crew, and a bigger boat, he said, he won't be able to comply with the new law.
  • Commission data show 80% of stocks in the Mediterranean, including swordfish, and 47% of stocks in the Atlantic, including whiting off Scotland's western coast, are being exploited at levels that will lead to extinction.
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  • Much of this unwanted catch will likely be sold to fish farmers to feed high-value fish like salmon.
  • though there are no legally binding targets for rebuilding fishing stocks.
  • How to enforce the new discards law is also under debate. Installing video cameras on all vessels or employing observers to ensure fisherman follow the law has been proposed, but nothing yet has been settled. "We do not have the resources for this kind of enforcement,
  • Organizations notes that Norway—which, along with Iceland, is one of two non-EU nations to ban discards—took 20 years to eliminate them.
Gene Ellis

IRIN Africa | GUINEA: Winners and losers in Guinea's bauxite industry | Guine... - 0 views

  • GUINEA: Winners and losers in Guinea’s bauxite industry
  • “Rather than making people richer, mining has made them poorer,” said Akoumba Diallo, a mining sector researcher. “It polluted their environments so they can’t grow crops or let animals feed near mining sites. And it is hard to get water anywhere because it’s contaminated.” With mining contributing to 85 percent of the country’s external revenue, and the World Bank estimating investments of up to US$20 billion in bauxite mining in Guinea over the next decade, the government is currently rewriting and renegotiating its mining contracts - unchanged for 25 years - with 15 companies to ensure Guineans are more likely to benefit from the wealth they spawn.
  • Mining companies are legally obliged to pay taxes to owners of the land they mine,
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  • “We have been paying US$100,000 in annual taxes directly to the Kindia prefecture,” he told IRIN. “The distribution of the money rests with them according to the needs they have identified in Mambia.”
  • Seeing this for themselves, the CBK became concerned that the money was not being well spent, according to Cirra Dieng, communications officer at the CBK, and withdrew its payments in 2007 awaiting some explanation. They are still waiting.
  • The EITI has set up a monitoring committee made up of government representatives, mining companies and civil society to push mining companies to publish what they pay and the government to disclose what it receives at the state, prefecture and CRD level. So far it has done so for six mining companies, including the CBK.
Gene Ellis

The Economist explains: Why airlines make such meagre profits | The Economist - 0 views

  • Why airlines make such meagre profits
  • In those six decades passenger kilometres (the number of flyers multiplied by the distance they travel) have gone from almost zero to more than 5 trillion a year. But though the industry has done much to connect the world, it has done little to line the pockets of the airlines themselves. Despite incredible growth, airlines have not come close to returning the cost of capital, with profit margins of less than 1% on average over that period. In 2012 they made profits of only $4 for every passenger carried. Why has a booming business failed to prosper?
  • Airlines were state-owned beasts in receipt of juicy handouts from state coffers. These “flag carriers” were regarded as important strategic businesses with monopoly powers that conferred national pride and international prestige. But they rapidly turned into bloated nationalised industries that regarded profit as a dirty word.
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  • Air travel was governed by inter-governmental deals that dictated which airlines could fly where, how many seats they could offer and, in many cases, what fares they could charge. The result was inefficiency and losses.
  • Low-cost carriers, such as SouthWest and Ryanair, introduced cut-throat rivalry on short-haul routes. Former flag-carriers struggled with the legacy of older fleets, large networks, uppity unionised workforces and vast pension liabilities. Low-cost carriers devastated their model of feeding short-haul passengers onto more lucrative long-haul services.
  • As well as stiff competition from their rivals, airlines face the problem that there is little competition in the industries that supply them. Two firms—Airbus and Boeing—provide the majority of the planes, and airports and air-traffic control are monopolies
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