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Oil rises supported by U.S.-China trade optimism, Middle East tensions - Reuters - 0 views

  • SEOUL (Reuters) - Oil prices kicked off the new year higher on Thursday as warming trade relations between the United States and China eased demand concerns, while rising tensions in the Middle East fueled worries about supply.
  • Both benchmarks ended higher in 2019, posting their biggest annual gains since 2016, buoyed at the end of the year by a thaw in the prolonged trade dispute between the United States and China - the world’s two largest economies - and a deeper output cut pledged by the Organization of Petroleum Exporting Countries (OPEC) and its allies.
  • A fall in U.S. crude inventories last week also supported prices. U.S. crude stocks fell 7.8 million barrels in the week ended Dec. 27, compared with analysts’ expectations for a decrease of 3.2 million barrels, according to data from the American Petroleum Institute (API) released on Tuesday. [API/S]
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In Dash to Finish, Biden and Trump Set Up Showdown in Pennsylvania - The New York Times - 0 views

  • As the national early vote climbs past a staggering 93 million and challenges to the electoral process intensify across states, President Trump and Joseph R. Biden Jr. are barreling into Pennsylvania and turning it into the top battleground in Tuesday’s election
  • Both campaigns see Pennsylvania as increasingly crucial to victory: Mr. Trump now appears more competitive here than in Michigan and Wisconsin, two other key northern states he hopes to win, and Mr. Biden’s clearest electoral path to the White House runs through the state.
  • Pennsylvania has more Electoral College votes, 20, than any other traditional battleground except Florida,
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  • Mr. Trump devoted Saturday to four rallies across the state, and he and Mr. Biden planned campaign events for the final 48 hours of the race as well, with a wave of prominent Democrats and celebrities slated to arrive
  • In Pennsylvania in particular, the possibility of extended court battles and confusion hangs over the race, with the state Republican Party hoping the Supreme Court will reconsider its decision last week to allow the state to continue receiving absentee ballots for three days after Election Day.
  • The Texas Supreme Court denied an effort by Republicans to throw out more than 120,000 votes that had been cast at drive-through locations in Harris County, an increasingly Democratic area anchored in Houston.
  • in Dubuque, Iowa, on Sunday, Mr. Trump claimed, inaccurately, that the result of the election was always determined on Election Day. “We should know the result of the election on Nov. 3,” he said. “The evening of Nov. 3. That’s the way it’s been and that’s the way it should be. What’s going on in this country?”
  • Mr. Trump entered the final hours of the race in a worse position here than he was four years ago, when Pennsylvania was seen as Hillary Clinton’s firewall. This time, Mr. Biden has a lead of six points, according to a new New York Times/Siena College poll released Sunday, and is working to create multiple pathways to 270 electoral votes.
  • Mr. Trump’s lagging position in the race was evident in his grueling travel schedule that had him shoring up votes in five states he won four years ago — Michigan, Iowa, North Carolina, Georgia and Florida.His final rally of the day was scheduled for 11 p.m., and risked violating a midnight curfew in Miami-Dade County.Mr. Biden, by contrast, set his sights squarely on Pennsylvania on Sunday, an approach he will repeat again Monday, along with a foray into Ohio, a state Mr. Trump won handily in 2016 but that polls show could be more competitive now.
  • Compared with other swing states, such as Florida, far fewer early ballots have already been cast in Pennsylvania and, according to the U.S. Elections Project, as of Sunday there were more than 350,000 absentee ballots that had been requested by Democratic voters that had yet to be returned.
  • Mr. Biden’s Philadelphia events kicked off a last push through the state over the final two days. On Monday, Mr. Biden, Senator Kamala Harris and their spouses are expected to campaign in five media markets, hoping to cement support across a sprawling coalition and to keep Mr. Trump’s margins down in parts of western Pennsylvania that propelled him to victory in 2016.“My message is simple,” Mr. Biden said Sunday. “Pennsylvania is critical in this election.”
  • Democrats are well aware of how devoted Mr. Trump’s core base remains. In Macomb County in Michigan, where the president held his first rally Sunday, Irwin Patterson was selling Trump merchandise at a makeshift roadside store.
  • He also embraced the actions of some of his supporters in Texas who had surrounded a Biden campaign bus with their vehicles on Saturday, in an apparent attempt to slow it down and run it off the road. Mr. Trump claimed the vehicles were “protecting his bus, yesterday, because they are nice.”
  • Mr. Biden countered with his own warning later Sunday, saying, “The president is not going to steal this election.”
  • That lead, however, isn’t enough to make Democrats and anti-Trump Republicans feel fully confident about the state of the race in Pennsylvania.
  • The Trump campaign ads running in Pennsylvania have been overwhelmingly centered on economic messages, mainly jobs and taxes.
  • Pennsylvania’s economy is emerging from the pandemic recession but still has a long road ahead to its pre-crisis state. Like the nation, it has seen a two-track recovery that has left small businesses and low-earning workers behind.
  • “That blue wall has to be re-established,” Mr. Biden said in another recent Pennsylvania campaign appearance. He said that winning the state meant a “great deal to me, personally as well as politically.”
  • Pennsylvania has long loomed large in the psyche of the Biden campaign. Mr. Biden, a Scranton native, gave his first speech of his presidential campaign in Pittsburgh, and he chose Philadelphia for his campaign headquarters, before the pandemic hit.
  • Pennsylvania saw its unemployment rate fall to 8.1 percent in September, according to the Labor Department, nearly identical to the national rate of 7.9 percent.
  • PHILADELPHIA — As the national early vote climbs past a staggering 93 million and challenges to the electoral process intensify across states, President Trump and Joseph R. Biden Jr. are barreling into Pennsylvania and turning it into the top battleground in Tuesday’s election, with Democrats flooding in with door-knockers and Republicans trying to parlay Mr. Trump’s rallies into big turnout once again.
  • Pennsylvania has more Electoral College votes, 20, than any other traditional battleground except Florida, and Mr. Trump won the state by less than one percentage point in 2016.
  • Mr. Biden is ahead with a modest margin in recent polls, and is trying to cut into the president’s turnout in rural counties. But Mr. Trump’s rallies have energized many Republican voters, and his team is already preparing legal challenges over the vote if it ends up being close.
  • “Every day is a new reminder of how high the stakes are, how far the other side will go to try to suppress the turnout,” Mr. Biden said as he campaigned here Sunday. “Especially here in Philadelphia. President Trump is terrified of what will happen in Pennsylvania.”
  • Some Trump supporters also turned disruptive on Sunday: Vehicles bearing Trump flags halted traffic on the Garden State Parkway in New Jersey; local officials said the motorcade backed up traffic for several miles. In Georgia, a rally for Democrats that had been scheduled was canceled, with organizers citing worries over what they feared was a “large militia presence” drawn by Mr. Trump’s own event nearby.
  • Throughout his final sprint of rallies, Mr. Trump has moved to baselessly sow doubt about the integrity of the electoral process.
  • Mr. Biden, by contrast, set his sights squarely on Pennsylvania on Sunday, an approach he will repeat again Monday, along with a foray into Ohio, a state Mr. Trump won handily in 2016 but that polls show could be more competitive now.
  • Democrats are well aware of how devoted Mr. Trump’s core base remains. In Macomb County in Michigan, where the president held his first rally Sunday, Irwin Patterson was selling Trump merchandise at a makeshift roadside store.
  • Later, he tweeted in response to the news that the F.B.I. was investigating the incident that “in my opinion, these patriots did nothing wrong,” adding that federal authorities should be scrutinizing antifa instead.
  • Of the three big Northern swing states Mr. Trump won by a hair four years ago, the once reliably blue state of Pennsylvania is the one his advisers believe is most likely within his reach. That’s in large part because of the support of rural voters and Mr. Biden’s call for eventually phasing out fossil fuels, an unpopular stance for many voters in a state with a large natural gas industry.
  • The Trump campaign ads running in Pennsylvania have been overwhelmingly centered on economic messages, mainly jobs and taxes. The campaign’s most aired ad in Pennsylvania over the past week has been a negative ad claiming Mr. Biden will raise taxes (he has said he will raise taxes for those making over $400,000).
  • But the Biden campaign has not ceded the subject to the president, with 14 different ads on air that touch on jobs and the economy. Its most aired ad in Pennsylvania over the past week featured a Biden speech outlining his plans for pandemic recovery, including jobs. Another ad directly rebuts the Trump campaign’s attacks on his tax plan.
  • Pennsylvania saw its unemployment rate fall to 8.1 percent in September, according to the Labor Department, nearly identical to the national rate of 7.9 percent. That is a significant improvement from the 16.1 percent unemployment it posted in April. But the state still had 380,000 fewer jobs in September than it did in September of 2019, and there are 18 percent fewer small businesses open here compared to a year ago, according to data compiled by the economists at Opportunity Insights.
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The age of fossil-fuel abundance is dead | The Economist - 0 views

  • FOR MUCH of the past half-decade, the operative word in the energy sector was “abundance”. An industry that had long sought to ration the production of fossil fuels to keep prices high suddenly found itself swamped with oversupply, as America’s shale boom lowered the price of oil around the world and clean-energy sources, such as wind and solar, competed with other fuels used for power generation, such as coal and natural gas.
  • In recent weeks, however, it is a shortage of energy, rather than an abundance of it, that has caught the world’s attention.
  • Britain’s miffed motorists are suffering from a shortage of lorry drivers to deliver petrol. Power cuts in parts of China partly stem from the country’s attempts to curb emissions. Dwindling coal stocks at power stations in India are linked to a surge in the price of imports of the commodity.
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  • a slump in investment in oil wells, natural-gas hubs and coal mines. This is partly a hangover from the period of abundance, with years of overinvestment giving rise to more capital discipline.
  • A rule of thumb is that oil companies are supposed to allocate about four-fifths of their capital expenditure each year just to stopping their level of reserves from being depleted. Yet annual industry capex has fallen from $750bn in 2014 (when oil prices exceeded $100 a barrel) to an estimated $350bn this year
  • Oil crossed $81 a barrel after the Organisation of the Petroleum Exporting Countries (OPEC), and allies such as Russia who are part of the OPEC+ alliance, resisted calls to increase output at a meeting on October 4th.
  • But it may at least accelerate the shift to greener—and cheaper—sources of energy.
  • result of growing pressures to decarbonise.
  • over the same period, the number of years’ worth of current production held in reserves in some of the world’s biggest projects has fallen from 50 to about 25
  • The industry would usually respond to robust demand and higher prices by investing to drill more oil. But that is harder in an era of decarbonisation.
  • big private-sector oil companies, such as ExxonMobil and Royal Dutch Shell, are being pressed by investors to treat oil and gas investments like week-old fish
  • shareholders reckon that demand for oil will eventually peak, making long-term projects uneconomic, or because they prefer to hold stakes in companies that support the transition to clean energy
  • Another factor inhibiting oil investment is the behaviour of OPEC+ countries. The half-decade of relatively low prices during the “age of abundance”, which reached its nadir with a price collapse at the start of the pandemic, g
  • utted state coffers. That cut funding for investment. As prices recover, governments’ priority is not to ex
  • pand oil-production capacity but to shore up national budgets.
  • Investment in thermal coal is weakest of all. Even in China and India, which have big pipelines of new coal-fired power plants, the mood has swung against the dirtiest fossil fuel.
  • All this places fossil-fuel producers in something of a bind. A slump in investment could enable some oil, gas and coal investors to make out like bandits. But the longer prices stay high, the more likely it becomes that the transition to clean energy ultimately buries the fossil-fuel industry. Consumers, in the meantime, must brace for more shortages.
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A New World Energy Order Is Emerging From Putin's War on Ukraine - Bloomberg - 0 views

  • blocs start to align in what looks like a new world energy order. 
  • “This represents the biggest re-drawing of the energy and geopolitical map in Europe — and possibly the world — since the collapse of the Soviet Union, if not the end of World War II,
  • The outcome, he said, could be “a sequel to the Cold War.”
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  • For Berlin, loosening its energy dependence on Russia is not simply about hitting Moscow’s main revenue stream. It’s a threat to roll back “Ostpolitik,” a totemic post-World War II policy of rapprochement with the Soviet Union, and by extension later Russia, that involved economic and political engagement, notably through oil and gas links.
  • Yet as customers desert Russia, its partnership with the oil titans of the Middle East, with which it jointly leads the OPEC+ coalition, has so far stayed intact. Russia and Saudi Arabia are the world’s top oil exporters, accounting for 29% of the global total. 
  • “The U.S. can try to make Saudi Arabia increase production, but why would they accept a break in the alliance, which is key for them?”
  • Riyadh’s OPEC+ partnership with Moscow calmed years of distrust between the two oil rivals, and saved the kingdom from relying exclusively on Washington.
  • “Saudi Arabia doesn’t want to switch horses mid-race when they do not know if the other horse is actually going to show up,”
  • Gulf Arab nations accused the U.S. of a lack of support in the face of repeated attacks by Iranian-backed militia on Saudi oil facilities and Gulf tanker traffic, and on Abu Dhabi this year. In a measure of the discord, the United Arab Emirates abstained in a U.S.-led United Nations Security Council vote to condemn Russia’s invasion.
  • “Now that we are in a crisis moment, we’re reaping the effect of that lack of trust that’s been building over the years,” said Karen Young, senior fellow at the Middle East Institute in Washington. 
  • Another source of friction lies in U.S. efforts to reinstate the nuclear agreement with Iran, Saudi Arabia’s regional rival.
  • Demonstrating just how exceptional the times are, a U.S. delegation traveled to Russian ally Venezuela last weekend in an overture to a country that holds the largest known crude reserves in the world.
  • Venezuela has been subject to international sanctions since the Trump era that have crippled its ability to sell oil. While there is not yet talk of allowing exports to resume, President Nicolas Maduro responded by offering to turn on the taps anyway, saying that state oil company PDVSA is prepared to raise output to as many three million barrels a day “for the world.”
  • the U.S. visit was “unexpected, surprising, a complete change in policy orientation,” with energy as the strategic catalyst.
  • “But I think there is a more important geopolitical move that is redefining the West,” he added. The U.S. is looking to confine the spheres of influence enjoyed by Russia and especially China, and for Venezuela that means a gradual process “to reincorporate with the West, through energy.” 
  • China will continue to carry on “normal trade cooperation” with Russia, including in oil and gas, said Zhao Lijian, a foreign ministry spokesperson. China is considering buying or increasing stakes in Russian companies such as Gazprom PJSC,
  • Even assuming a discount on the price per barrel, state-owned importers would weigh very carefully the impact on their global business of large purchases from a country that’s subject to so many sanctions, according to Qin Yan, an analyst with research house Refinitiv.
  • Neither would buying energy from Moscow be an easy solution, even if it meant less pollution, said Li Shuo, a climate analyst at Greenpeace East Asia. “To change China’s current energy structure, to replace a lot of coal it uses now with Russia’s oil and gas, would be a huge project for China, and it would take time,”
  • In Europe, the EU is refusing to budge on its climate commitments as it seeks to slash imports from its biggest supplier this year and replace flows from Russia completely by 2027. Those efforts were given a jolt by a suggestion that Moscow might shut off gas supplies through the Nord Stream 1 pipeline to Europe.
  • “We simply cannot rely on a supplier who explicitly threatens us,” EU Commission President Ursula von der Leyen said as she unveiled the bloc’s plans this week. 
  • as Scholz told the Bundestag, Russia’s attack on Ukraine means “we are in a new era.” The world today “is no longer the same world that it was before.”
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Europe's Russian Oil Ban Could Mean a New World Order for Energy - The New York Times - 0 views

  • HOUSTON — The European Union’s embargo on most Russian oil imports could deliver a fresh jolt to the world economy, propelling a realignment of global energy trading that leaves Russia economically weaker, gives China and India bargaining power and enriches producers like Saudi Arabia.
  • Europe’s hunt for new oil supplies — and Russia’s quest to find new buyers of its oil — will leave no part of the world untouched, energy experts said. But figuring out the impact on each country or business is difficult because leaders, energy executives and traders will respond in varying ways.
  • China and India could be protected from some of the burden of higher oil prices because Russia is offering them discounted oil. In the last couple of months, Russia has become the second-biggest oil supplier to India, leapfrogging other big producers like Saudi Arabia and the United Arab Emirates. India has several large refineries that could earn rich profits by refining Russian oil into diesel and other fuels in high demand around the world.
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  • “It’s a historic, big deal,” said Robert McNally, an energy adviser to President George W. Bush. “This will reshape not only commercial relationships but political and geopolitical ones as well.”E.U. officials have yet to release all the details of their effort to squelch Russian oil exports but have said those policies will go into effect over months. That is meant to give Europeans time to prepare, but it will also give Russia and its partners time to devise workarounds. Who will adapt
  • Russian natural gas for some time, possibly years. That could preserve some of Mr. Putin’s leverage, especially if gas demand spikes during a cold winter. European leaders have fewer alternatives to Russian gas because the world’s other major suppliers of that fuel — the United States, Australia and Qatar — can’t quickly expand exports substantially.Russia also has other cards to play, which could undermine the effectiveness of the European embargo.
  • Another hope of Western leaders is that their moves will reduce Russia’s position in the global energy industry. The idea is that despite its efforts to find new buyers in China, India and elsewhere, Russia will export less oil overall. As a result, Russian producers will need to shut wells, which they will not be able to easily restart because of the difficulties of drilling and producing oil in inhospitable Arctic fields.
  • “Why wait six months?” asked David Goldwyn, a top State Department energy official in the Obama administration. “As the sanctions are configured now, all that will happen is you will see more Russian crude and product flow to other destinations,” he said. But he added, “It’s a necessary first step.”
  • In addition, Germany and Poland have pledged to stop importing oil from Russia by pipeline, which means Europeans could reduce Russian imports by 3.3 million barrels a day by the end of the year.And the union has said European companies will no longer be allowed to insure tankers carrying Russian oil anywhere. That ban will also be phased in over several months. Because many of the world’s largest insurers are based in Europe, that move could significantly raise the cost of shipping Russian energy, though insurers in China, India and Russia itself might now pick up some of that business.Before the invasion of Ukraine, roughly half of Russia’s oil exports went to Europe, representing $10 billion in transactions a month. Sales of Russian oil to E.U. members have declined somewhat in the last few months, and those to the United States and Britain have been eliminated.
  • India is getting about 600,000 barrels a day from Russia, up from 90,000 a day last year, when Russia was a relatively minor supplier. It is now India’s second-biggest supplier after Iraq.But India could find it difficult to keep buying from Russia if the European Union’s restrictions on European companies insuring Russian oil shipments raise costs too much.“India is a winner,” said Helima Croft, RBC’s head of commodity strategy, “as long as they are not hit with secondary sanctions.”
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Climate Change - Lessons From Ronald Reagan - NYTimes.com - 1 views

  • with respect to protection of the ozone layer, Reagan was an environmentalist hero. Under his leadership, the United States became the prime mover behind the Montreal Protocol, which required the phasing out of ozone-depleting chemicals.
  • How did Ronald Reagan, of all people, come to favor aggressive regulatory steps and lead the world toward a strong and historic international agreement?
  • A large part of the answer lies in a tool disliked by many progressives but embraced by Reagan (and Mr. Obama): cost-benefit analysis. Reagan’s economists found that the costs of phasing out ozone-depleting chemicals were a lot lower than the costs of not doing so — largely measured in terms of avoiding cancers that would otherwise occur. Presented with that analysis, Reagan decided that the issue was pretty clear.
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  • Recent reports suggest that the economic cost of Hurricane Sandy could reach $50 billion and that in the current quarter, the hurricane could remove as much as half a percentage point from the nation’s economic growth. The cost of that single hurricane may well be more than five times greater than that of a usual full year’s worth of the most expensive regulations, which ordinarily cost well under $10 billion annually
  • climate change is increasing the risk of costly harm from hurricanes and other natural disasters. Economists of diverse viewpoints concur that if the international community entered into a sensible agreement to reduce greenhouse gas emissions, the economic benefits would greatly outweigh the costs.
  • some of the best recent steps serve to save money, promote energy security and reduce air pollution. A good model is provided by rules from the Department of Transportation and the Environmental Protection Agency, widely supported by the automobile industry, which will increase the fuel economy of cars to more than 54 miles per gallon by 2025. The fuel economy rules will eventually save consumers more than $1.7 trillion, cut United States oil consumption by 12 billion barrels and reduce greenhouse gas emissions by six billion metric tons — more than the total amount of carbon dioxide emitted by the United States in 2010. The monetary benefits of these rules exceed the monetary costs by billions of dollars annually.
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The Extraordinary Science of Addictive Junk Food - NYTimes.com - 0 views

  • Today, one in three adults is considered clinically obese, along with one in five kids, and 24 million Americans are afflicted by type 2 diabetes, often caused by poor diet, with another 79 million people having pre-diabetes. Even gout, a painful form of arthritis once known as “the rich man’s disease” for its associations with gluttony, now afflicts eight million Americans.
  • The public and the food companies have known for decades now — or at the very least since this meeting — that sugary, salty, fatty foods are not good for us in the quantities that we consume them. So why are the diabetes and obesity and hypertension numbers still spiraling out of control? It’s not just a matter of poor willpower on the part of the consumer and a give-the-people-what-they-want attitude on the part of the food manufacturers. What I found, over four years of research and reporting, was a conscious effort — taking place in labs and marketing meetings and grocery-store aisles — to get people hooked on foods that are convenient and inexpensive
  • the powerful sensory force that food scientists call “mouth feel.” This is the way a product interacts with the mouth, as defined more specifically by a host of related sensations, from dryness to gumminess to moisture release.
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  • the mouth feel of soda and many other food items, especially those high in fat, is second only to the bliss point in its ability to predict how much craving a product will induce.
  • He organized focus-group sessions with the people most responsible for buying bologna — mothers — and as they talked, he realized the most pressing issue for them was time. Working moms strove to provide healthful food, of course, but they spoke with real passion and at length about the morning crush, that nightmarish dash to get breakfast on the table and lunch packed and kids out the door.
  • as the focus swung toward kids, Saturday-morning cartoons started carrying an ad that offered a different message: “All day, you gotta do what they say,” the ads said. “But lunchtime is all yours.”
  • When it came to Lunchables, they did try to add more healthful ingredients. Back at the start, Drane experimented with fresh carrots but quickly gave up on that, since fresh components didn’t work within the constraints of the processed-food system, which typically required weeks or months of transport and storage before the food arrived at the grocery store. Later, a low-fat version of the trays was developed, using meats and cheese and crackers that were formulated with less fat, but it tasted inferior, sold poorly and was quickly scrapped.
  • One of the company’s responses to criticism is that kids don’t eat the Lunchables every day — on top of which, when it came to trying to feed them more healthful foods, kids themselves were unreliable. When their parents packed fresh carrots, apples and water, they couldn’t be trusted to eat them. Once in school, they often trashed the healthful stuff in their brown bags to get right to the sweets.
  • This idea — that kids are in control — would become a key concept in the evolving marketing campaigns for the trays. In what would prove to be their greatest achievement of all, the Lunchables team would delve into adolescent psychology to discover that it wasn’t the food in the trays that excited the kids; it was the feeling of power it brought to their lives.
  • The prevailing attitude among the company’s food managers — through the 1990s, at least, before obesity became a more pressing concern — was one of supply and demand. “People could point to these things and say, ‘They’ve got too much sugar, they’ve got too much salt,’ ” Bible said. “Well, that’s what the consumer wants, and we’re not putting a gun to their head to eat it. That’s what they want. If we give them less, they’ll buy less, and the competitor will get our market. So you’re sort of trapped.”
  • at last count, including sales in Britain, they were approaching the $1 billion mark. Lunchables was more than a hit; it was now its own category
  • he holds the entire industry accountable. “What do University of Wisconsin M.B.A.’s learn about how to succeed in marketing?” his presentation to the med students asks. “Discover what consumers want to buy and give it to them with both barrels. Sell more, keep your job! How do marketers often translate these ‘rules’ into action on food? Our limbic brains love sugar, fat, salt. . . . So formulate products to deliver these. Perhaps add low-cost ingredients to boost profit margins. Then ‘supersize’ to sell more. . . . And advertise/promote to lock in ‘heavy users.’ Plenty of guilt to go around here!”
  • men in the eastern part of Finland had the highest rate of fatal cardiovascular disease in the world. Research showed that this plague was not just a quirk of genetics or a result of a sedentary lifestyle — it was also owing to processed foods. So when Finnish authorities moved to address the problem, they went right after the manufacturers. (The Finnish response worked. Every grocery item that was heavy in salt would come to be marked prominently with the warning “High Salt Content.” By 2007, Finland’s per capita consumption of salt had dropped by a third, and this shift — along with improved medical care — was accompanied by a 75 percent to 80 percent decline in the number of deaths from strokes and heart disease.)
  • I tracked Lin down in Irvine, Calif., where we spent several days going through the internal company memos, strategy papers and handwritten notes he had kept. The documents were evidence of the concern that Lin had for consumers and of the company’s intent on using science not to address the health concerns but to thwart them. While at Frito-Lay, Lin and other company scientists spoke openly about the country’s excessive consumption of sodium and the fact that, as Lin said to me on more than one occasion, “people get addicted to salt
  • the marketing team was joined by Dwight Riskey, an expert on cravings who had been a fellow at the Monell Chemical Senses Center in Philadelphia, where he was part of a team of scientists that found that people could beat their salt habits simply by refraining from salty foods long enough for their taste buds to return to a normal level of sensitivity. He had also done work on the bliss point, showing how a product’s allure is contextual, shaped partly by the other foods a person is eating, and that it changes as people age. This seemed to help explain why Frito-Lay was having so much trouble selling new snacks. The largest single block of customers, the baby boomers, had begun hitting middle age. According to the research, this suggested that their liking for salty snacks — both in the concentration of salt and how much they ate — would be tapering off.
  • Riskey realized that he and his colleagues had been misreading things all along. They had been measuring the snacking habits of different age groups and were seeing what they expected to see, that older consumers ate less than those in their 20s. But what they weren’t measuring, Riskey realized, is how those snacking habits of the boomers compared to themselves when they were in their 20s. When he called up a new set of sales data and performed what’s called a cohort study, following a single group over time, a far more encouraging picture — for Frito-Lay, anyway — emerged. The baby boomers were not eating fewer salty snacks as they aged. “In fact, as those people aged, their consumption of all those segments — the cookies, the crackers, the candy, the chips — was going up,” Riskey said. “They were not only eating what they ate when they were younger, they were eating more of it.” In fact, everyone in the country, on average, was eating more salty snacks than they used to. The rate of consumption was edging up about one-third of a pound every year, with the average intake of snacks like chips and cheese crackers pushing past 12 pounds a year
  • Riskey had a theory about what caused this surge: Eating real meals had become a thing of the past.
  • “We looked at this behavior, and said, ‘Oh, my gosh, people were skipping meals right and left,’ ” Riskey told me. “It was amazing.” This led to the next realization, that baby boomers did not represent “a category that is mature, with no growth. This is a category that has huge growth potential.”
  • The food technicians stopped worrying about inventing new products and instead embraced the industry’s most reliable method for getting consumers to buy more: the line extension.
  • He zeroed right in on the Cheetos. “This,” Witherly said, “is one of the most marvelously constructed foods on the planet, in terms of pure pleasure.” He ticked off a dozen attributes of the Cheetos that make the brain say more. But the one he focused on most was the puff’s uncanny ability to melt in the mouth. “It’s called vanishing caloric density,” Witherly said. “If something melts down quickly, your brain thinks that there’s no calories in it . . . you can just keep eating it forever.”
  • Frito-Lay acquired Stacy’s Pita Chip Company, which was started by a Massachusetts couple who made food-cart sandwiches and started serving pita chips to their customers in the mid-1990s. In Frito-Lay’s hands, the pita chips averaged 270 milligrams of sodium — nearly one-fifth a whole day’s recommended maximum for most American adults — and were a huge hit among boomers.
  • There’s a paradox at work here. On the one hand, reduction of sodium in snack foods is commendable. On the other, these changes may well result in consumers eating more. “The big thing that will happen here is removing the barriers for boomers and giving them permission to snack,” Carey said. The prospects for lower-salt snacks were so amazing, he added, that the company had set its sights on using the designer salt to conquer the toughest market of all for snacks: schools
  • The company’s chips, he wrote, were not selling as well as they could for one simple reason: “While people like and enjoy potato chips, they feel guilty about liking them. . . . Unconsciously, people expect to be punished for ‘letting themselves go’ and enjoying them.” Dichter listed seven “fears and resistances” to the chips: “You can’t stop eating them; they’re fattening; they’re not good for you; they’re greasy and messy to eat; they’re too expensive; it’s hard to store the leftovers; and they’re bad for children.” He spent the rest of his memo laying out his prescriptions, which in time would become widely used not just by Frito-Lay but also by the entire industry.
  • Dichter advised Frito-Lay to move its chips out of the realm of between-meals snacking and turn them into an ever-present item in the American diet. “The increased use of potato chips and other Lay’s products as a part of the regular fare served by restaurants and sandwich bars should be encouraged in a concentrated way,”
  • the largest weight-inducing food was the potato chip. The coating of salt, the fat content that rewards the brain with instant feelings of pleasure, the sugar that exists not as an additive but in the starch of the potato itself — all of this combines to make it the perfect addictive food. “The starch is readily absorbed,” Eric Rimm, an associate professor of epidemiology and nutrition at the Harvard School of Public Health and one of the study’s authors, told me. “More quickly even than a similar amount of sugar. The starch, in turn, causes the glucose levels in the blood to spike” — which can result in a craving for more.
  • If Americans snacked only occasionally, and in small amounts, this would not present the enormous problem that it does. But because so much money and effort has been invested over decades in engineering and then relentlessly selling these products, the effects are seemingly impossible to unwind.
  • Todd Putman, who worked at Coca-Cola from 1997 to 2001, said the goal became much larger than merely beating the rival brands; Coca-Cola strove to outsell every other thing people drank, including milk and water. The marketing division’s efforts boiled down to one question, Putman said: “How can we drive more ounces into more bodies more often?”
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Obama's Best-Kept Secrets - NYTimes.com - 0 views

  • While I don’t know how Obamacare will turn out, I’m certain that my two favorite Obama initiatives will be transformative.
  • His Race to the Top program in education has already set off a nationwide wave of school reform, and his Race to the Top in vehicles — raising the mileage standards for American-made car and truck fleets from 27.5 miles per gallon to 54.5 m.p.g. between now and 2025 — is already spurring a wave of innovation in auto materials, engines and software.
  • they are the future of progressive politics in this age of austerity: government using its limited funds and steadily rising performance standards to stimulate states and businesses to innovate better economic, educational and environmental practices.
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  • his races to the top in schools and cars are both based on one brutal fact: “The high-wage, medium-skilled job is over,” as Stefanie Sanford, a senior education expert at the Gates Foundation, puts it. The only high-wage jobs, whether in manufacturing or services, will be high-skilled ones, requiring more and better education, and Obama’s two races to the top aim to produce both more high-skill jobs and more high-skilled workers.
  • Though never perfect, No Child Left Behind was still a game-changer for education reform because it gave us the data to see not only how individual schools were doing but how the most at-risk students were doing within those schools. Without that, educational reform based on accountability of teachers and principals could never start.
  • 46 states submitted reform blueprints — and only the 12 best won grants from $70 million to $700 million, depending on the size of their student populations — even states that did not win have been implementing their proposals anyway.
  • because 45 states and the District of Columbia adopted similar higher academic standards (known as the “common core”) for reading and math, “for the first time in our history a kid in Massachusetts and a kid in Mississippi are now being measured by the same yardstick,” said Duncan
  • Obama’s doubling of vehicle mileage by 2025, led by his Environmental Protection Agency and Department of Transportation, it’s already driving more innovation in Detroit, as each car company figures out how it will improve mileage by 5 percent every year.
  • Yes, the costs for cars with higher miles per gallon will rise a touch, but the savings will be manyfold that amount. The Environmental Protection Agency projects families will save $1.8 trillion in fuel costs and reduce oil consumption by 2.1 million barrels per day by 2025, which is equivalent to one-half of the oil that we currently import from OPEC countries every day
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Facebook will start telling you when a story may be fake - The Washington Post - 0 views

  • The social network is going to partner with the Poynter International Fact-Checking Network, which includes groups such as Snopes and the Associated Press, to evaluate articles flagged by Facebook users. If those articles do not pass the smell test for the fact-checkers, Facebook will label that evaluation whenever they are posted or shared, along with a link to the organization that debunked the story.
  • Mosseri said the social network still wants to be a place where people with all kinds of opinions can express themselves but has no interest in being the arbiter of what’s true and what's not for its 1 billion users.
  • The new system will work like this: If a story on Facebook is patently false — saying that a celebrity is dead when they are still alive, for example — then users will see a notice that the story has been disputed or debunked. People who try to share stories that have been found false will also see an alert before they post. Flagged stories will appear lower in the news feed than unflagged stories.
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  • Users will also be able to report potentially false stories to Facebook or send messages directly to the person posting a questionable article.
  • The company is focusing, for now, on what Mosseri called the “bottom of the barrel” websites that are purposefully set up to deceive and spread fake news, as well as those that are impersonating other news organizations. “We are not looking to flag legitimate organizations,” Mosseri said. “We’re looking for pages posing as legitimate organizations.” Articles from legitimate sites that are controversial or even wrong should not get flagged, he said.
  • The company will also prioritize checking stories that are getting lots of flags from users and are being shared widely, to go after the biggest targets possible.
  • "From a journalistic side, is it enough? It’s a little late.”
  • Facebook is fine to filter out other content -- such as pornography -- for which the definition is unclear. There's no clear explanation for why Facebook hasn't decided to apply similar filters to fake news. “I think that’s a little weak,” Tu said. “If you recognize that it’s bad and journalists at the AP say it’s bad, you shouldn’t have it on your site.”
  • Others said Facebook's careful approach may be warranted. "I think we'll have to wait and see early results to determine how effective the strategy is," said Alexios Mantzarlis, of Poynter's International Fact-Checking Network. "In my eyes, erring on the side of caution is not a bad idea with something so complicated," he said
  • Facebook is also trying to crack down on people who have made a business in fake news by tweaking the social network's advertising practices. Any article that has been disputed, for example, cannot be used in an ad. Facebook is also playing around with ways to limit links from publishers with landing pages that are mostly ads — a common tactic for fake-news websites
  • With those measures in place, “we’re hoping financially motivated spammers might move away from fake news,” Mosseri said
  • Paul Horner, a fake news writer who makes a living writing viral hoaxes, said he wasn't immediately worried about Facebook's new crackdown on fake news sites. "It's really easy to start a new site. I have 50 domain names. I have a dedicated server. I can start up a new site within 48 hours," he said, shortly after Facebook announced its new anti-hoax programs.  If his sites, which he describes as "satire"-focused, do end up getting hit too hard, Horner says he has "backup plans."
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The Limits of American Realism - The New York Times - 0 views

  • The Limits of American Realism
  • Realists had a field day with that carnage, beginning with former Secretary of State James Baker’s early assessment that, “We don’t have a dog in that fight.” This view was echoed by various self-serving assessments from the Clinton White House that justified inaction through the portrayal of the Balkans as the locus of millennial feuds neither comprehensible nor resolvable.
  • The moral case was, however, overwhelming, beginning with the Serbian use in 1992 of concentration camps to kill Bosnian Muslim men deemed threatening, and expel Muslim women and children.
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  • Realists tend to dismiss human suffering; it’s just the way of the world.
  • utin has created havoc precisely in the no man’s lands — Georgia and Ukraine — rather than in the NATO lands. Russia’s interest, post-1990, was in the dismemberment of the European-American bond, most potently expressed in NATO. That was the real problem
  • Syria has illustrated the limits of White House realism. Realism has dictated nonintervention as hundreds of thousands were killed, millions displaced, and Islamic State emerged. Realism has been behind acquiescence to Assad’s barrel-bomb brutality. If Iraq illustrated disastrous American pursuit of an “ideological blueprint,” Syria has demonstrated a disastrous vacuum of American ideas.
  • But this is more a time to acknowledge the limits of realism — as a means to deal with the evil of ISIS, the debacle of Syria, or the desperate European refugee crisis — than to cry out for more, or suggest that it is underrepresented in American discourse.
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Break in Siege Is Little Relief to Syrian City - NYTimes.com - 0 views

  • A three-day humanitarian cease-fire in the Syrian city of Homs was supposed to be a small breakthrough, a moment of relief for civilians trapped in a grim civil war.
  • Though few expect the international peace talks that resume in Geneva on Monday to end the war, many hope they will make life less brutal for ordinary Syrians by creating local cease-fires and opening up access to aid.But what took place in Homs highlights the tremendous difficulties plaguing even modest humanitarian efforts, making it unlikely that the episode will emerge as a model to be repeated elsewhere.
  • The United Nations estimates that almost a third of the nine million Syrians in need are in hard-to-reach areas and that access to many of them has been deliberately obstructed. While human rights groups say the government is responsible for most of the sieges, rebels, too, have tried to starve out their enemies.
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  • But the cease-fire was shaky from the start. Some residents refused to leave, fearing their departure would prompt the killing of the remaining rebels. Pro-government Facebook pages also criticized the deal and began a campaign called “No to feeding the gunmen.”
  • More mortars struck on Sunday as crowds of civilians rushed to meet the convoy, killing at least six people, according to activists and videos posted online. (adsbygoogle = window.adsbygoogle || []).push({}); Later, hundreds of civilians ran between two lines of United Nations vehicles as gunfire crackled nearby. Some civilians discarded their bags as they ran.
  • A leaked draft calls for the evacuation of all civilians who wish to leave besieged areas, not just women, children and the elderly, as the Syrian government stipulated in Homs. It also calls on President Bashar al-Assad’s government to stop using so-called barrel bombs — crude explosives that opposition groups say have killed hundreds of civilians in recent weeks.It is unlikely that the council will pass a resolution that calls for those who violate international law to be held accountable, largely because Syria’s strongest international backer, Russia, would most likely veto it.
  • Others said the limited success of the Homs operation was unlikely to build support for similar plans at the Geneva talks.Some suggested the Syrian government had agreed to the deal only to improve its image before the talks.“This regime has a very long history of using these humanitarian gestures to strengthen their own position,” said Steven Heydemann, the director of Syria programs at the United States Institute of Peace.
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At least 14 killed in Aleppo bombing - 0 views

  • "EXPLOSIVE barrels killed eight civilians including five children from one family in the town of Hayan in the northern countryside," the Syrian Observatory Human Rights reported.
  • At the same time "six civilians including two children and a woman were killed by aerial bombardment on Der Jamal town in the northern countryside," the NGO added.
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Can Jeremy Grantham Profit From Ecological Mayhem? - NYTimes.com - 0 views

  • Energy “will give us serious and sustained problems” over the next 50 years as we make the transition from hydrocarbons — oil, coal, gas — to solar, wind, nuclear and other sources, but we’ll muddle through to a solution to Peak Oil and related challenges. Peak Everything Else will prove more intractable for humanity. Metals, for instance, “are entropy at work . . . from wonderful metal ores to scattered waste,” and scarcity and higher prices “will slowly increase forever,” but if we scrimp and recycle, we can make do for another century before tight constraint kicks in.
  • Agriculture is more worrisome. Local water shortages will cause “persistent irritation” — wars, famines. Of the three essential macro nutrient fertilizers, nitrogen is relatively plentiful and recoverable, but we’re running out of potassium and phosphorus, finite mined resources that are “necessary for all life.” Canada has large reserves of potash (the source of potassium), which is good news for Americans, but 50 to 75 percent of the known reserves of phosphate (the source of phosphorus) are located in Morocco and the western Sahara. Assuming a 2 percent annual increase in phosphorus consumption, Grantham believes the rest of the world’s reserves won’t last more than 50 years, so he expects “gamesmanship” from the phosphate-rich.
  • he rates soil erosion as the biggest threat of all. The world’s population could reach 10 billion within half a century — perhaps twice as many human beings as the planet’s overtaxed resources can sustainably support, perhaps six times too many.
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  • most economists see global trade as a win-win proposition, but resource limitation turns it into a win-lose, zero-sum contest. “The faster China grows, the higher grain prices go, the more people in China or India who upgrade to meat, the higher the tendency for Africa to starve,” he said.
  • Grantham argues that the late-18th-century doomsayer Thomas Malthus pretty much got it right but just had the bad timing to make his predictions about unsustainable population growth on the eve of the hydrocarbon-fueled Industrial Revolution, which “partially removed the barriers to rapid population growth, wealth and scientific progress.” That put off the inevitable for a couple of centuries, but now, ready or not, the age of cheap hydrocarbons is ending. Grantham’s July letter concludes: “We humans have the brains and the means to reach real planetary sustainability. The problem is with us and our focus on short-term growth and profits, which is likely to cause suffering on a vast scale. With foresight and thoughtful planning, this suffering is completely avoidable.”
  • “E.D.F. is educating people that dealing with climate change will be good for the economy and job creation. One of Jeremy’s insights is that we can make headway on the market side because higher commodity prices will enforce greater efficiency.”
  • When he reminds us that modern capitalism isn’t equipped to handle long-range problems or tragedies of the commons (situations like overfishing or global warming, in which acting rationally in your own self-interest only deepens the harm to all), when he urges us to outgrow our touching faith in the efficiency of markets and boundless human ingenuity, and especially when he says that a wise investor can prosper in the coming hard times, his bad news and its silver lining come with a built-in answer to the skeptical question that Americans traditionally pose to egghead Cassandras: If you’re so smart, how come you’re not rich?
  • Grantham believes that the best approach may be to recast global warming, which depresses crop yields and worsens soil erosion, as a factor contributing to resource depletion. “People are naturally much more responsive to finite resources than they are to climate change,” he said. “Global warming is bad news. Finite resources is investment advice.”
  • “Americans are just about the worst at dealing with long-term problems, down there with Uzbekistan,” he said, “but they respond to a market signal better than almost anyone. They roll the dice bigger and quicker than most.”
  • Grantham, the public face of a company that manages more than $100 billion in assets, the very embodiment of a high-finance insider in blue blazer and yellow tie, has serious doubts about capitalism’s ability to address the biggest problems facing humanity.
  • Grantham says that corporations respond well to this message because they are “persuaded by data,” but American public opinion is harder to move, and contemporary American political culture is practically dataproof. “The politicians are the worst,” he said. “An Indian economist once said to me, ‘We have 28 political parties, and they all think climate change is important.’ ” Whatever the precise number of parties in India, and it depends on how you count, his point was that the U.S. has just two that matter, one that dismisses global warming as a hoax and one that now avoids the subject.
  • Grantham, who says that “this time it’s different are the four most dangerous words in the English language,” has become a connoisseur of bubbles. His historical study of more than 300 of them shows the same pattern occurring again and again. A bump in sales or some other impressive development causes people to get excited. When they do, the price of that asset class — South Sea company shares, dot-coms — goes up, and human nature and the financial industry conspire to push it higher. People want to hear good news; they tend to be bad with numbers and uncertainty, and to assume that present conditions will persist. In the financial industry, the imperative to minimize career risk produces herd behavior.
  • So it’s news when Grantham, who has built his career on the conviction that peaks and troughs will even out as prices inevitably revert to their historical mean, says that this time it really is different, and not in a good way. In his April letter, “Time to Wake Up: Days of Abundant Resources and Falling Prices Are Over Forever,” he argued that “we are in the midst of one of the giant inflection points in economic history.” The market is “sending us the Mother of all price signals,” warning us that “if we maintain our desperate focus on growth, we will run out of everything and crash.”
  • here’s the short version: “The prices of all important commodities except oil declined for 100 years until 2002, by an average of 70 percent. From 2002 until now, this entire decline was erased by a bigger price surge than occurred during World War II. Statistically, most commodities are now so far away from their former downward trend that it makes it very probable that the old trend has changed — that there is in fact a Paradigm Shift — perhaps the most important economic event since the Industrial Revolution.”
  • When prices go up and stay up, it’s not a bubble. Prices may always revert to the mean, but the mean can change; that’s a paradigm shift. As Grantham tells it, oil went first. For a century it steadily returned to about $16 a barrel in today’s currency, then in 1974 the mean shifted to about $35, and Grantham believes it has recently doubled again. Metals and nearly everything else — coal, corn, palm oil, soybeans, sugar, cotton — appear to be following suit. “From now on, price pressure and shortages of resources will be a permanent feature of our lives,” he argues. “The world is using up its natural resources at an alarming rate, and this has caused a permanent shift in their value. We all need to adjust our behavior to this new environment. It would help if we did it quickly.”
  • Grantham is taking the Malthusian side in an ongoing debate about growth and commodity prices­. The argument often circles back to the bet made in 1980 between the biologist Paul Ehrlich, who foretold catastrophic scarcity caused by overpopulation, and the economist Julian Simon, who argued that any short-term increase in resource prices caused by population growth will stimulate inventors and entrepreneurs to find new ways to exploit those resources, lowering prices in the long run. The two men picked five commodities and wagered on whether their prices, taken as an indicator of scarcity, would be higher or lower in 1990. Simon won, 5-0, even though the world’s population grew by 800 million during that decade. Malthusians have been trying to live down that defeat ever since, but, as Grantham points out in his July letter, if we extend the original bet past its arbitrary 10-year limit to the present day, Ehrlich wins the five-commodity bet 4-1, and he wins big if the bet is further extended to all important commodities.
  • He’s an impassioned environmentalist not only for the usual reasons but also because he believes humanity’s vexed relationship with the planet is the great economic story of our time. “This commodities thing may turn out to be the most interesting call of my career,” he told me. “I have no doubt we’re going to have a bad hundred years. We have the resources to gracefully handle the transition, but we won’t. We apparently can’t.”
  • “Whether the stable population will be 1.5 billion or 5 billion,” he said to me, “the question is: How do we get there?”
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To Cure the Economy - Joseph E. Stiglitz - Project Syndicate - 0 views

  • As the economic slump that began in 2007 persists, the question on everyone’s minds is obvious: Why? Unless we have a better understanding of the causes of the crisis, we can’t implement an effective recovery strategy. And, so far, we have neither.
  • To understand what needs to be done, we have to understand the economy’s problems before the crisis hit.
  • America and the world were victims of their own success. Rapid productivity increases in manufacturing had outpaced growth in demand, which meant that manufacturing employment decreased. Labor had to shift to services.
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  • not only is the total number of manufacturing jobs limited globally, but a smaller share of those jobs will be local.
  • Shifting income from those who would spend it to those who won’t lowers aggregate demand. By the same token, soaring energy prices shifted purchasing power from the United States and Europe to oil exporters, who, recognizing the volatility of energy prices, rightly saved much of this income.
  • while the buildup of reserves – currently around $7.6 trillion in emerging and developing economies – protected them, money going into reserves was money not spent.
  • ith oil prices back above $100 a barrel this summer – and still high – money is once again being transferred to the oil-exporting countries. And the structural transformation of the advanced economies, implied by the need to move labor out of traditional manufacturing branches, is occurring very slowly.
  • Government plays a central role in financing the services that people want, like education and health care. And government-financed education and training, in particular, will be critical in restoring competitiveness in Europe and the US. But both have chosen fiscal austerity, all but ensuring that their economies’ transitions will be slow.
  • The prescription for what ails the global economy follows directly from the diagnosis: strong government expenditures, aimed at facilitating restructuring, promoting energy conservation, and reducing inequality, and a reform of the global financial system that creates an alternative to the buildup of reserves.
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BP's maximum fine for Gulf of Mexico oil spill is cut by billions | Business | The Guar... - 0 views

  • BP will face a maximum fine of $13.7bn under the Clean Water Act for its Gulf of Mexico oil spill in 2010, several billion less than feared.
  • Federal magistrate Carl Barbier ruled on Thursday that the size of the spill from the Deepwater Horizon drilling rig, the worst offshore spill in US history, was smaller than the government had claimed.
  • A simple negligence ruling, which BP sought, caps the maximum fine at $1,100 per barrel.
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'Doomsday Vault' opens to retrieve seeds for Syria - CNN.com - 0 views

  • Humanity has had to cash in on its insurance policy earlier than expected.
  • Known as the "Doomsday Vault," this seed bank -- operated by the Norwegian government and containing a seed of just about every known crop in the world -- is meant to be humanity's backup in the event of a catastrophe that devastates crops.
  • The bloody conflict in Syria has left scientists at an important gene bank in Aleppo -- where new strains of drought- and heat-resistant wheat have been developed over time -- unable to continue their work in recent years.
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  • The seeds are being planted at new facilities in Lebanon and Morocco, allowing scientists to resume the important research they've been doing for decades, away from the barrel bombs of Aleppo.
  • The gene bank in Aleppo, run by the International Center for Agricultural Research in the Dry Areas, is one of the most important in the world and includes more than 135,000 varieties of wheat, fava bean, lentil and chickpea crops, as well as the world's most valuable barley collection.
  • ICARDA representative Thanos Tsivelikas, who is overseeing the withdrawal from the vault, describes the operation as "a rescue mission; these seeds cannot be replaced.
  • Relocated to Lebanon, Solh opens the door to a vault on the Agricultural Research and Educational Center of the American University of Beirut campus in the Bekaa Valley. This is where the seeds ICARDA received back from Svalbard are housed.
  • It is the plant from which the wheat we eat today originated 10 millennia ago.
  • A 10-minute drive away and just across the mountain range from Syria, a new vault is being built by ICARDA.
  • parallel project is being set up in Morocco to ensure that humanity always has access to this irreplaceable cache of genetic material.
  • Researchers are looking at ways to improve food crops with existing and extinct-in-nature genetic lines that are more adapted to the challenges that may lie ahead with global warming.
  • "You know that climate change is a reality and climate change is changing the whole environment in terms of more drought, hotter environments and even new diseases."
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Obama budget rejected by House Republicans - CNNPolitics.com - 0 views

  • President Barack Obama checked off another "last" of his White House tenure Tuesday, submitting his final budget proposal to Congress amid the growing din from the campaign trail.
  • The $4.1 trillion annual budget plan -- nearly always deemed "dead on arrival" to the Republican-controlled Congress -- appeared particularly lifeless this year: Republicans said before the document even arrived they would break the long precedent of hearing from the President's budget chief as they draft their own fiscal blueprint.
  • Like lame-duck presidents before him, Obama submitted a final budget that includes funding for his top legacy priorities, including combating climate change and expanding health insurance coverage. The plan seeks to increase revenue from taxes by $2.6 trillion over the next decade, largely by changing tax laws.
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  • Obama's budget drafters said the deficit would decrease in the next fiscal year, which begins in October, going from $616 billion to $503 billion. Over the next decade, though, they said the deficit would increase amid increased spending on older Americans' health care.
  • "The budget is a road map to a future that embodies America's values and aspirations: a future of opportunity and security for all of our families; a rising standard of living; and a sustainable, peaceful planet for our kids," Obama wrote in a message to lawmakers. "This future is within our reach. But just as it took the collective efforts of the American people to rise from the recession and rebuild an even stronger economy, so will it take all of us working together to meet the challenges that lie ahead."
  • "It is clear that this President will not put forth the budget effort that our times and our country require. Instead of hearing from an administration unconcerned with our $19 trillion in debt, we should focus on how to reform America's broken budget process and restore the trust of hardworking taxpayers," the Senate Budget Chairman Sen. Mike Enzi wrote.
  • $1 billion in new funding for treating opioid addiction, a national epidemic that's taken prominence on the presidential campaign trail, and another billion for cancer research as part of Vice President Joe Biden's "moonshot" initiative.
  • also includes bolstering spending on national security priorities, including $7.5 billion in new spending to combat ISIS and $3.4 billion to step up military presence in Europe in a bid to counter Russian President Vladimir Putin. Another $19 billion would go toward bolstering the country's cybersecurity through updating information technology systems.
  • The Republican chairmen of the Senate and House budget committees said last week they were forgoing the decades-long tradition of hearing testimony from the director of the Office of Management and Budget, claiming they expected Obama's budget to offer little in debt reduction.
  • In parts, the document reads like a "good riddance" letter to a GOP-led Congress that's offered Obama little in terms of bipartisan compromise. A $10.25-per-barrel fee on oil, meant to pay for needed infrastructure projects and a transition to green transportation systems, only enraged Republicans when it was announced last week. An increase in funding to Wall Street regulators is also unlikely to meet approval from the GOP, as is a $1.3 billion request for accelerating the use of clean energy sources.
  • The decision enraged Democrats, who said the decision broke four decades of precedent. Democrats on the Senate Budget panel noted that a hearing on the President's budget request was held even in 2004, when toxic ricin was found in a Senate office mail room."Even under those extraordinary circumstances, the committee carried out its duties," the panel's Democrats said. "The year, with no unusual circumstances to prevent us from doing our work, we have been provided with no reasonable explanation for the decision not to hold a hearing," wrote Democratic members of the House Budget panel.
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Iran billionaire Babak Zanjani sentenced to death - BBC News - 0 views

  • Iran billionaire Babak Zanjani sentenced to death
  • He was arrested in December 2013 after accusations that he withheld billions in oil revenue channelled through his companies. He denies the allegations.
  • One of Iran's richest men, Zanjani was blacklisted by the US and EU for helping Iran evade oil sanctions.
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  • Two others were sentenced to death along with him and all were ordered to repay embezzled funds. The ruling can be appealed.
  • Before the oil embargo imposed by the EU in 2012, one in every five barrels of crude Iran exported was sold to refineries in Europe.
  • "We believe that Babak Zanjani in this case is just a debtor," the lawyer said.
  • Played a key role in helping Iran get around sanctions to sell oil abroad during the presidency of Mahmoud Ahmadinejad
  • Born in Tehran, attended a Turkish university and became a driver for Iran's central bank head in 1999, when he started out in currency exchange
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If It Owns a Well or a Mine, It's Probably in Trouble - The New York Times - 0 views

  • The pain among energy and mining producers worsened again on Tuesday, as one of the industry’s largest players cut its work force by nearly two-thirds and Chinese trade data amplified concerns about the country’s appetite for commodities.
  • The full extent of the shakeout will depend on whether commodities prices have further to fall. And the outlook is shaky, with a swirl of forces battering the markets.
  • The world’s biggest buyer of commodities, China, has pulled back sharply during its economic slowdown. But the world is dealing with gluts in oil, gas, copper and even some grains.
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  • The pressure on prices has been significant. Continue reading the main story Related Coverage China’s Slowdown Tarnishes Economic Boom in Copper-Rich ZambiaDEC. 2, 2015 A Global Chill in Commodity Demand Hits America’s HeartlandOCT. 23, 2015 Glencore Isn’t Out of the Woods YetOCT. 1, 2015 Prices for iron ore, the crucial steelmaking ingredient, have fallen by about 40 percent this year. The Brent crude oil benchmark is now hovering around $40 a barrel, down from more than a $110 since the summer of 2014.
  • Companies are caught in the downdraft.A number of commodity-related businesses have either declared bankruptcy or fallen behind in their debt payments
  • Even more common are the cutbacks. Nearly 1,200 oil rigs, or two-thirds of the American total, have been decommissioned since late last year. More than 250,000 workers in the oil and gas industry worldwide have been laid off, with more than a third coming in the United States.
  • The international mining company Anglo American is pulling back broadly, with a goal to reduce the company’s size by 60 percent. Along with the layoffs announced on Tuesday, the company is suspending its dividend, halving its business units, as well as unloading mines and smelters.
  • China looms large in the commodities equation.Between 2000 and last year, companies invested hundreds of billions of dollars to expand their production capacity to satisfy China in a period of rapid economic expansion. Much of the corporate growth was fueled by debt.
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WWI cannon swiped from outside Veterans of Foreign Wars post - Business Insider - 0 views

  • A World War I cannon was stolen from outside a Veterans of Foreign Wars building in Michigan, and an official is concerned it could be sold for scrap metal.
  • The vintage piece of military hardware was hauled away earlier this week from outside VFW Post 1137 in Benton Township in southwestern Michigan, The Herald-Palladium of St. Joseph reported (http://bit.ly/1NXqHgd ) Thursday.
  • The 12- to 14-foot-long cannon has a heavy metal barrel, wooden wheel spokes and sat on a concrete slab. It had been displayed since 1976 at the post. The non-working cannon doesn't have a firing pin.
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  • The post building has been closed since October but is regularly checked by patrolling police. Williams said the cannon was in place Tuesday morning and noticed missing around 11:30 a.m. Wednesday.
  • Recycling and scrap yards will be notified to look out for the cannon in case anyone tries to sell it, said Benton Township police officer Scott Scalf, adding: "This is the first time I have come across someone stealing a cannon."
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