A growing number of states are seeking shiny new currencies made of silver and gold.

Worried that the Federal Reserve and the U.S. dollar are on the brink of collapse, lawmakers from 13 states, including Minnesota, Tennessee, Iowa, South Carolina and Georgia, are seeking approval from their state governments to either issue their own alternative currency or explore it as an option. Just three years ago, only three states had similar proposals in place.

“In the event of hyperinflation, depression, or other economic calamity related to the breakdown of the Federal Reserve System … the State’s governmental finances and private economy will be thrown into chaos,” said North Carolina Republican Representative Glen Bradley in a currency bill he introduced last year.

Unlike individual communities, which are allowed to create their own currency – as long as it is easily distinguishable from U.S. dollars — the Constitution bans states from printing their own paper money or issuing their own currency. But it allows the states to make “gold and silver Coin a Tender in Payment of Debts.”

To the state legislators who are proposing state-issued currencies, that means gold and silver are fair game, said Edwin Vieira, an alternative currency proponent and attorney specializing in Constitutional law. And since gold has grown exponentially more valuable, while the U.S. dollar continues to lose ground, the notion has become increasingly appealing to state lawmakers, he said.

The state gold rush: Utah became the first state to introduce its own alternative currency when Governor Gary Herbert signed a bill into law last March that recognized gold and silver coins issued by the U.S. Mint as an acceptable form of payment. Under the law, the coins — which include American Gold and Silver Eagles — are treated the same as U.S. dollars for tax purposes, eliminating capital gains taxes.

Since the face value of some U.S.-minted gold and silver coins — like the one-ounce, $50 American Gold Eagle coin — is so much less than the metal value (one ounce of gold is now worth more than $1,700), the new law allows the coins to be exchanged at their market value, based on weight and fineness.

Local currencies: In the U.S., we don’t trust

“A Utah citizen, for example, could contract with another to sell his car for 10 one-ounce gold coins (approximately $17,000), or an independent contractor could arrange to be compensated in gold coins,” said Rich Danker, a project director at the American Principles Project, a conservative public policy group in Washington, D.C.

South Carolina Republican Representative Mike Pitts proposed a currency system that would allow people to use any kind of silver or gold coin — whether it’s a Philippine Peso or a South African Krugerrand — based on weight and fineness. Pitts said in the bill, which currently has 12 co-sponsors, that the state is facing “an economic crisis of severe magnitude.”

Republican representatives from Washington State followed suit in January, introducing a bill that would also allow any gold and silver coins to be considered legal tender based on metal values. Minnesota, Iowa, Georgia, Idaho and Indiana are also considering similar proposals.

Many of the bills would make it possible for residents to exchange the physical coins for goods and services, so you could use coins to buy anything from groceries to a car as long as the store chooses to accept them.

However, most people aren’t going to walk around with such valuable coins in their pockets, said Vieira. Plus, calculating the value of the coins — especially if they come from different parts of the globe and are of different sizes and shapes — will get tricky.

It’s more likely that the states will create electronic depositories and accounts for the coins to make transactions easier, when and if the initial bills are passed, he said.

Utah Gold & Silver Depository is already developing a system where customers could use debit cards linked to their gold holdings. When customers swipe their debit cards to make transactions, physical gold and silver coins would be transferred between accounts in privately-owned depositories (or vaults) based on the market value of the metals.

Before deciding on a specific form of currency, some states — including Minnesota, Tennessee, Virginia and North Carolina — are considering proposals that would first require a committee to review their alternative currency plan.

The future of U.S. currency: The states’ proposals have been gaining steam among Tea Partyers and Republicans, many of whom also endorse a nationwide return to the gold standard, which would require the U.S. dollar to be backed by gold reserves.

Tea Party “father” Ron Paul is sponsoring the “Free Competition in Currency Act,” which would allow states to introduce their own currencies, and rivalNewt Gingrich is calling for a commission to look at how the country can get back to the gold standard.

But it will be the individual states that could really get the ball rolling, said Vieira. Even if several of the current proposals get killed, the introduction of so many bills at the state level is drawing national attention to the issue, he said.

Funny money: 11 local currencies

Of all the state proposals circulating right now, Republican-controlled states including South Carolina, Georgia, Idaho and Indiana have the best chance of passing their proposed bills this year, said American Principles Project’s Danker. If just one or two states implement an alternative currency, it could have a Domino effect, he said.

“I think we could get a couple passed in this legislative session, and that would show this is mainstream, popular and it would be a justification for more of the risk-averse states for doing this,” he said.

There are, of course, many people who think the recent push for alternative state currencies should be stopped in its tracks. David Parsley, a professor of economics and finance at Vanderbilt University, said he thinks state-issued currencies are a “terrible” idea.

“Having 50 Feds” could debase the U.S. dollar and even potentially lead the country into default, he said. “The single currency in the United States is working just fine,” said Parsley. “I have no idea why anyone would want to destroy something so successful — unless they actually wanted to destroy the country.”

Source: CNN

To the disgust of some staff, bodies are piling up at the office of the Cook County Medical Examiner, stacked atop each other in blue plastic tarps against a wall of the storage cooler because of ongoing financial woes, the Sun-Times has learned.

All the storage trays are full, and many have a second body on them, according to sources in the office. Some 400 adults and about 100 babies are currently being kept in the cooler designed for under 300, one source said.

“There are so many bodies in there now, they can’t keep it cool enough. The stench is like nothing I’ve ever seen,” another source in the office said. “I think it’s sacrilegious.”

Medical Examiner Nancy Jones said “yes, we do” have a larger than normal number of bodies at the office.

“What we currently have in our cooler is somewhere around 300 bodies,” she said. “There is not twice that number.”

Jones said there is a backup in burials of babies because of a change in a county ordinance. Last year, critics raised questions about the remains of babies and fetuses — many who had died at birth or as a result of miscarriage — being combined for burial. So county commissioners changed the ordinance requiring the remains of babies and fetuses be placed in separate compartments.

“We haven’t been able to do any infant or fetal burials because we are waiting for some special boxes to be designed and built,” Jones said.

“There are some [adult] bodies stacked on top of boxes right now in the cooler. They’re not going to be there much longer because some of them should be put in burial ‘shells’ [wooden coffins] because there’s [an indigent] burial coming up.”

Typically after examination or autopsy, bodies remain at the office for a few days until funeral directors pick them up for burial or cremation.

But when grieving families can’t afford a burial, the county takes over. Last fall, the medical examiner’s office revealed a controversial plan to donate to science the remains that go unclaimed after only two weeks ­unless families object. Others were still to be buried in the pauper’s graves in Homewood, for which the county previously paid $300 each. But a source said delivery of the “burial boxes” has stopped because the medical examiner’s office hasn’t paid the company that builds the them ­— another reason for the bodies piling up.

While Jones said there is no average for the number of bodies kept in the morgue, she said the increase in the number of bodies is the result, in part, of state aid to help pay for burials of those who die without any assets being slashed.

“That is really the big part of it,” Jones said.

The state last summer cut $13 million from the program. Last week, Jones said, the county received word that the state had reinstated funding.

Source: chicago.cbslocal.com

Greece’s financial crisis has made some families so desperate they are giving up the most precious thing of all – their children.

One morning a few weeks before Christmas a kindergarten teacher in Athens found a note about one of her four-year-old pupils.

“I will not be coming to pick up Anna today because I cannot afford to look after her,” it read. “Please take good care of her. Sorry. Her mother.”

In the last two months Father Antonios, a young Orthodox priest who runs a youth centre for the city’s poor, has found four children on his doorstep – including a baby just days old.

Another charity was approached by a couple whose twin babies were in hospital being treated for malnutrition, because the mother herself was malnourished and unable to breastfeed.

Cases like this are shocking a country where family ties are strong, and failure to look after children is socially unacceptable – they feel to Greeks like stories from the Third World, rather than their own capital city.

One of the children cared for by Father Antonios is Natasha, a bright two-year-old brought to his centre by her mother a few weeks ago.

The woman said she was unemployed and homeless and needed help – but before staff could offer her support she had vanished, leaving her daughter behind.

“Over the last year we have hundreds of cases of parents who want to leave their children with us – they know us and trust us,” Father Antonios says.

“They say they do not have any money or shelter or food for their kids, so they hope we might be able to provide them with what they need.”

Requests of this kind were not unknown before the crisis – but Father Antonios has never until now come across children being simply abandoned.

Handouts
One woman driven by poverty to give up her child was Maria, a single mother who lost her job and was unemployed for more than a year.

“Every night I cry alone at home, but what can I do? It hurt my heart, but I didn’t have a choice,” she says.

She spent her days looking for work, sometimes well into the evening and that often meant leaving eight-year-old Anastasia alone for hours at a time. The two of them lived on food handouts from the church. Maria lost 25kg.

In the end she decided to put Anastasia into foster care with a charity called SOS Children’s Villages.

“I can suffer through it but why should she have to?” she asks.

She now has a job in a cafe, but makes just 20 euros (£16) a day. She sees Anastasia about once a month, and hopes to take her back when her economic situation improves – but when that might be she has no idea.

SOS Children’s Villages’ director of social work, Stergios Sifnyos, says the charity is not accustomed to taking children from families for economic reasons and does not want to.

“The relationship between Maria and Anastasia is very close. You can say you cannot see any problem, [any reason] why this child has to be far away from her mother,” he says.

“But it’s very difficult for her to feel comfortable to take back the child when she is not sure she will [still] have a job the next days.”

‘Act of violence’
In the past when SOS Children’s Villages took children into its care, the cause was mostly drug and alcohol addiction in the family. Now the main factor is poverty.

Another charity, The Smile of a Child, also focused in the past on cases involving child abuse and neglect. It too is now catering for the destitute of Athens.

Its chief psychologist Stefanos Alevizos, says that when a parent puts a child into care, the child feels its entire foundations have been shaken.

“They experience the separation as an act of violence because they cannot understand the reasons for it,” he says.

But The Smile of a Child’s Sofia Kouhi says the biggest tragedy, in her eyes, is that those parents who ask for their kids to be taken into care may be the ones who love their children the most.

“It is very sad to see the pain in their heart that they will leave their children, but they know it is for the best, at least for this period,” she says.

Father Antonios disagrees.

He believes that no matter how poor parents may be, the child is always better off with its family.

“These families will be judged for abandoning their children,” he says.

“We can provide a child with food and shelter, but the truth is that the biggest need any child has is to feel the love of its parents.”

The names of children in this report have been changed to protect their identities.

Source: BBC

See also: Children dumped streets by Greek parents who can’t afford them

High in the hills of Arcadia, in a big stone house on the edge of this village overlooking verdant pastures and a valley beyond, a group of young Athenians are busy rebuilding their lives.

Until recently Andritsaina was not much of a prospect for urban Greeks. “But that,” said Yiannis Dikiakos, “was before Athens turned into the explosive cauldron that it has become. We woke up one day and thought we’ve had enough. We want to live the real Greece and we want to live it somewhere else.”

Piling his possessions into a Land Rover and trailer, the businessman made the 170-mile journey to Andritsaina last month. As he drove past villages full of derelict buildings and empty homes, along roads that wound their way around rivers and ravines, he did not look back.

“Athens has failed its young people. It has nothing to offer them any more. Our politicians are idiots … they have disappointed us greatly,” said Dikiakos, who will soon be joined by 10 friends who have also decided to escape the capital.

They are part of an internal migration, thousands of Greeks seeking solace in rural areas as the debt-stricken country grapples with its gravest economic crisis since the second world war.

“It’s a big decision but people are making it,” said Giorgos Galos, a teacher in Proti Serron on the great plains of Macedonia, in northern Greece. “We’ve had two couples come here and I know lots in Thessaloniki [Greece's second biggest city] who want to go back to their villages. The crisis is eating away at them and they’re finding it hard to cope. If they had just a little bit of support, a little bit of official encouragement, the stream would turn into a wave because everything is just so much cheaper here.”

The trickle into Proti Serron might have gone unnoticed had the village not also been the birthplace of the late Konstantinos Karamanlis who oversaw the nation’s entry into the then European Economic Community in 1981. An alabaster white statue of the statesman in the village square is adorned with the words: “I believe that Greece can change shape and its people their fate.”

Nearly sixty years after they were uttered, a growing number of Greeks, at least, are beginning to wonder whether the old man was right. The drift towards the bright lights of the big cities were by Karamanlis’ own admission one of the great barometers of the country’s transition from a primarily agricultural society into an advanced western economy.This week, as the IMF and EU debated ways of trying to re-rescue Greece and observers openly wondered whether the country would have to leave the euro, Greece appeared more adrift than ever, tossed on a high sea of mounting anger and civil disobedience from people who have lost trust in their politicians, and at the mercy of markets that refuse to believe it can pull itself back from the brink of bankruptcy. “The reality is that these people, they are in deep shit,” the managing director of the IMF, Dominique Strauss-Kahn said recently. “If we had not come they would have fallen into the abyss. Two weeks later the government would not have been able to pay civil servants’ wages.”

Ironically, it is the medicine doled out under last year’s draconian EU-IMF €110bn (£96bn) rescue programme, implemented to modernise a sclerotic economy, that has made their lot worse. Twelve months of sweeping public sector pay and pension cuts, massive job losses, tax increases and galloping inflation have begun to have a brutal effect. GDP is predicted to contract by 3% this year – making Greece’s the deepest recession in Europe.

In Athens, home to almost half of Greece’s 11 million-strong population, the signs of austerity – and poverty – are everywhere: in the homeless and hungry who forage through municipal rubbish bins late at night; in the cash-strapped pensioners who pick up rejects at the street markets that sell fruit and vegetables; in the shops now boarded and closed and in the thousands of ordinary Greeks who can no longer afford to take family outings or regularly eat meat.

“We’ve had to give up tavernas, give up buying new clothes and give up eating meat more than once a week,” said Vasso Vitalis, a mother-of-two who struggles with her civil servant husband to make ends meet on a joint monthly income of €2,000.

“With all the cuts we estimate we’ve lost around €450 a month. We’re down to the last cent and, still, we’re lucky. We’ve both got jobs. I know people who are unemployed and are going hungry. They ask family and friends for food,” she sighed. “What makes us mad is that everybody knew the state was a mess but none of our politicians had the guts to mend it. It was like a ship heading for the rocks and now the rocks are very near.”

Greeks also know that with their economy needing another financial lifeline, and few willing to lend to a country in such a parlous state, it will also get much worse before it gets better.

“In the past, the future always implied hope for Greeks but now it implies fear,” said Nikos Filis, editor of the leftwing Avgi newspaper. “Until this week people thought that with all the measures the crisis would be over in a year or two. Now with the prospect of yet more austerity for more aid, they can’t see an end in sight.”

With unemployment officially nudging 790,000 – although believed to be far bigger with the closure of some 150,000 small and medium-sized businesses over the past year – there are fears that Greece, the country at the centre of Europe’s worst financial debacle in decades, is slipping inexorably into political and social crisis, too. Rising racist tensions and lawlessness on the streets this week spurred the softly spoken mayor of Athens, Giorgos Kaminis, to describe the city as “beginning to resemble Beirut”.

Yannis Caloghirou, an economics professor at the National Technical University of Athens, said: “Greece has become a battleground, at the EU level where policymakers have made the crisis worse with their lack of strategy and piecemeal approach, and among its own people who no longer have trust in institutions and the ability of the political system to solve the situation. My concern is that the country is slipping into ungovernability, that ultra-right groups and others will grab the moment.”

Nineteen months into office the ruling socialists, riven by dissent and increasingly disgust over policies that ideologically many oppose, are likewise beginning to show the strain of containing the crisis, with the prime minister, George Papandreou, being forced publicly to whip truculent ministers into line.

A mass exodus of the nation’s brightest and best has added to fears that in addition to failing one or perhaps two generations, near-bankrupt Greece stands as never before to lose its intellectual class. “Nobody is speaking openly about this but the prospects for the Greek economy are going to get much worse as the brain drain accelerates and the country loses its best minds,” said Professor Lois Lambrianidis, who teaches regional economics at the University of Macedonia.

“Around 135,000, or 9% of tertiary educated Greeks, were living abroad and that was before the crisis began. They simply cannot find jobs in a service-oriented economy that depends on low-paid cheap labour.”

Just as in Arcadia where the young are choosing to start anew, Greece, he says, needs to rebuild itself if it is to survive its worst crisis in modern times.

Source: www.guardian.co.uk

ON a sunny Sunday just before the vernal equinox, Rich Ciotola set out to clear a pasture strewn with fallen wood. The just-thawed field was spongy, with grass sprouting under tangled branches. Late March and early April are farm-prep time here in the Berkshires, time to gear up for the growing season. But while many farms were oiling and gassing up tractors, Mr. Ciotola was setting out to prepare a pasture using a tool so old it seems almost revolutionary: a team of oxen.

Standing just inside the paddock at Moon in the Pond Farm, where he works, he put a rope around Lucas and Larson, his pair of Brown Swiss steer. He led them to the 20-pound maple yoke he had bought secondhand from another ox farmer, hoisted it over their necks and led them trundling through the fence so they could begin hauling fallen logs.

Mr. Ciotola, 32, is one of a number of small farmers who are turning — or rather returning — to animal labor to help with farming. Before the humble ox was relegated to the role of historical re-enactor, driven by men in period garb for child-friendly festivals like pioneer days, it was a central beast of burden. After the Civil War, many farms switched from oxen to horses. Although Amish and Mennonite communities continue to use horses, by World War II most draft animals had been supplanted by machines that allowed for ever-faster production on bigger fields.

Now, as diesel prices skyrocket, some farmers who have rejected many of the past century’s advances in agriculture have found a renewed logic in draft power. Partisans argue that animals can be cheaper to board and feed than any tractor. They also run on the ultimate renewable resource: grass.

“Ox don’t need spare parts, and they don’t run on fossil fuels,” Mr. Ciotola said.

Animals are literally lighter on the land than machines.

“A tractor would have left ruts a foot deep in this road,” Mr. Ciotola noted.

In contrast, oxen or horses aerate the soil with their hooves as they go, preserving its fertile microbial layers. And as an added benefit, animals leave behind free fertilizer.

David Fisher, whose Natural Roots Community Supported Agriculture program in Conway, Mass., sells vegetables grown exclusively with horsepower, said he is getting record numbers of applicants for his apprentice program. “There’s an incredible hunger for this kind of education,” he said.

Mr. Fisher discovered farming with horses more than a decade ago as an intern on a farm in Blue Hill, Me. It stuck.

“Using animals is just really appealing to the senses,” he said, adding that he found it philosophically appealing as well. “There’s a deep environmental crisis right now, and live power is also about creating an alternative to petroleum. Grass is a solar powered resource — and you don’t need manufacturing plants or an engineering degree to make a horse go.”

Drew Conroy, a professor of applied animal science at the University of New Hampshire, Durham, who is known in draft-power circles as “the ox guru,” notes that horses and even mules are seeing a comeback. Each animal has its niche.

“Ox are cheap and easy to train but they’re essentially bovine, which is to say, smart but slow,” he said. Horses are faster, more spirited, trickier to train and more expensive to buy and to keep. Professor Conroy notes that mules are better suited to Southern weather. “In the heat, an ox will just stop,” he said.

Even their most ardent supporters concede that draft animals are likely to remain minor features of the rural landscape. For starters, they are cost effective only on small farms. They are also time intensive, performing well only when they can be worked every day, and becoming temperamental when neglected.

On Mr. Ciotola’s first day out with his oxen, he had to struggle with the fact that the long winter had left them rusty. At one point they pulled over and came to a full stop in the bushes. He walked in front of them and tapped them gently.

“They’ve been cooped up all winter, so they get restless,” he said. Indeed, getting Lucas and Larson to go is a much more involved process than turning a key, and even at top speed they are far slower than a tractor. They plod, and Mr. Ciotola must plod along with them.

“You still have to walk nine miles for every planted acre,” said Dick Roosenberg, the founder of Tillers International, a 430-acre farm learning center in Scotts, Mich. A former Peace Corps volunteer, Mr. Roosenberg helped farmers who practiced hand cultivation in third world countries learn about oxen. Eventually, he also taught ox techniques to interpreters at historic communities like Plimouth Plantation.

But now Mr. Roosenberg’s plowing workshops fill with a new demographic: farmers from Wisconsin, Minnesota and even Alaska who hope to use animal power in their fields. Last year, about 320 signed up.

“It’s suddenly not just historic replication, it’s reinvention,” he said. “A new generation wants to do this again, now.”

Oxen are also cheap, at least compared to a tractor, and can work for 10 to 14 years. Since the dairy industry relies on keeping cows pregnant so they lactate, millions of baby bulls are born each year. A pair of calves start at $150 and range up to $1,500, depending on their breed and how much training they have.

Some dairies even give their young males away. Mr. Ciotola got Lucas and Larson, now 2 ½, as wobbly-kneed babies from a nearby raw-milk dairy, bartering for them with his own labor. “I just had to buy or make the yokes and cart,” he said.

Farmers who want to learn the old art of draft power sometimes find their education in odd places. Dominic Palumbo, Moon in the Pond’s owner and chief farmer, learned to plow with an oxen team by way of an intern from Hancock Shaker Village in Pittsfield, Mass., which replicates an 18th-century Shaker community. Mr. Ciotola first learned to work his team from Mr. Palumbo, then later refined his skills by studying a DVD called “Training Oxen,” made in 2003 by Dr. Conroy.

The film is something of a cult classic in the draft-power community, and in sections covering topics from “the yoke” to “stall etiquette,” the movie pictures Dr. Conroy and his partner, Tim Huppe, working with New Hampshire farmers who raise oxen from their cute baby phases through their slightly belligerent adolescence. It also features each of Mr. Huppe’s four daughters leading her own team around the farm.

Interest in ox-farming became so strong that in 2005 Dr. Conroy and Mr. Huppe began hosting three-day workshops at Sanborn Mills Farm in Loudon, N.H.. At first they were surprised to find themselves emerging as minor celebrities on the draft-power circuit. After all, they had learned ox-pulling as teenagers in 4-H clubs at a time when the activity was mostly seen in shows. “It used to be kind of a cultural thing, a county fair thing,” Dr. Conroy said.

But Mr. Huppe, who sells yokes, oxbows, carts, goads and other gear at his store, BerryBrook Ox Supply, in Farmington, N.H., said his clientele is changing.

“It used to be 15 percent small farmers,” he said. “Now the farmers are more like 60 percent.” About his workshops, Mr. Huppe said, “I feel like the Johnny Appleseed of oxen.”

As draft power spreads, a 7,000-year-old technology is being looked at in different ways.. Some young farmers are developing a hybrid practice, using oxen to supplement, rather than replace, tractors. Some use them just to log and plow, while others have their teams haul machines with engines. Even this can be energy efficient.

“If you use animals to pull a motorized hay-baler,” Mr. Roosenberg said, “you can bale hay pretty fast with about one-third the gas.”

Mr. Ciotola, who does not yet own his own land but who makes his living doing jobs at Moon in the Pond and other Berkshire farms, does have a lightweight tractor, a 1949 Farmall Cub that is particularly suited to small acreages. Some of its accessories — the manure spreader, stone rake and disc harrow — can also be fitted to the ox-drawn forecart he bought from Mr. Huppe’s store.

As the spring morning passed, he continued breaking his team into their third season, walking alongside Lucas’s left side, talking softly. About three hours in, after Lucas pulled into the bushes, Mr. Ciotola turned to head out for one more load, and Lucas pulled back toward the paddock. Mr. Ciotola decided to let him go.

“Lucas is always the troublemaker,” he noted, patting the blond steer. “He’s been restless all winter, but then he gets stubborn.”

For Mr. Ciotola, the most challenging aspect of working with his oxen is finding the time it takes to break them in.

“The best pairs need to get worked every day, and that’s hard for me because I have to do other work during the winters,” he said.

Even though Lucas and Larson now stand 5 feet tall and weigh 1,500 pounds each, they are not yet fully grown. Over the next two years, they will each gain 500 pounds and grow two feet. At that point, they will easily be able to pull 4,000 pounds. Mr. Ciotola wants to have them in prime shape for logging, plowing and haying.

After this season’s first expedition, they stood calmly in the dung-scented paddock, rolling their eyes and flicking their tails as Mr. Ciotola brushed them. Larson ambled off to eat some hay.

“Even when it’s tough with them, it’s better than spending a day with a tractor,” he said.

Then again, there was that time when he nearly took a horn to the groin.

“A tractor doesn’t do that either,” he said.

Source: New York Times

World Bank President Robert Zoellick said the global economy is “one shock away” from a crisis in food supplies and prices.

Zoellick estimated 44 million people have fallen into poverty due to rising food prices in the past year, and a 10 percent increase in the food price index would send 10 million more people into poverty. The United Nations FAO Food Price index jumped 25 percent last year, the second-steepest increase since at least 1991, and surged to a record in February.

Food price inflation is “the biggest threat today to the world’s poor,” Zoellick said at a press conference following meetings of the World Bank and the International Monetary Fund. “We are one shock away from a full-blown crisis.”

“For most commodities, stocks are relatively low,” he said. “You have one other weather event in some of these areas and you really take a danger zone and start to push people over the edge.”

Zoellick said he opposes export bans that nations use to depress local commodity prices for their citizens, lifting costs for consumers in other countries.

Farmers in Russia, once the second-biggest wheat exporter, are planting the fewest acres in four years, in part because a government export ban kept prices low, a Bloomberg survey of producers, traders and analysts showed last month. India, the largest grower after China, is mulling lifting an export ban in place since 2007 as harvests may reach a record for a fourth straight year, Agriculture Minister Sharad Pawar said this month.

Economic growth “is leveling off after a post-crisis recovery,” Zoellick said. “The question now is whether it’s strong enough to reduce unemployment, particularly in developed countries. Inflation is up in developing countries, and this could lead to overheating or asset price bubbles.”

Source: Bloomberg

Swimming pools are one way of surviving Arizona’s sky-high temperatures, which hit triple digits in a recent uncharacteristically early burst of heat. But Dennis McClung’s pool, in the Phoenix suburb of Mesa, has been redesigned into a survivalist refuge of an entirely different sort.

Mr. McClung has installed a subterranean garden in his pool along with a fish pond and chicken coop. The chicken droppings feed the tilapia, which swim in water that is pumped up through the blackberry, cherry tomato, bell pepper and chili plants. The ecosystem is designed to feed his family with minimal trips to the supermarket.

Mr. McClung’s desire to become self-sufficient does not end there. One room of his modest one-story home has been transformed into a storage facility, in case something dire happens in the world outside. He has radiation suits, batteries, bleach to disinfect water, medical supplies, gas masks and a Geiger counter, as well as freeze-dried food.

Mr. McClung, married with two young children, is not certain exactly what he is bracing for, but being ready for the unexpected has become an essential part of his life.

It all began in 1999, when many predicted dire consequences once the year 2000 arrived and computers the world over went haywire. Mr. McClung, who worked at Home Depot at the time, saw firsthand the run on generators, flashlights, tarps and other supplies and vowed to be in position to make a profit the next time anything similar occurred.

That time may be now, as 2012 nears and Mr. McClung and his wife, Danielle, sell survivalist gear on their Web site, 2012Supplies.com, to those who believe the world will end on Dec. 21, 2012 — 12/21/12.

Mr. McClung said he had not decided what to do with the name of his site once, in all likelihood, 2013 arrives without any doomsday predictions playing out. He is already planning his next home-improvement project, though, which involves solar panels on the roof and a water system that captures rainwater and recycled shower water to irrigate fruit trees. He hopes to finish that project by the end of next year.

“I hope 2013 rolls around and everyone laughs at me,” he said. “That would be fantastic.”

Source: New York Times

Why Is Gardening So Important Now?

There are at least five reasons why more of us should take up spade, rake and hoe, make compost and raise good soil and garden beds with a vengeance, starting this spring and with an eye toward forever.

1) Peak oil. Most petroleum experts agree that we shot past peak oil in the U.S. around 1971. Lest you’ve missed the raging, that’s the point at which more than half the readily, affordably retrievable oil in reserves has been used up, what remains is more expensive to retrieve, and the dregs are irretrievable. We’ve shot or are about to shoot past peak worldwide, estimates of when ranging from 2007 to 2013, with many oil company execs agreeing to at least the latter. There are no new cheap-easy oil fields coming on line. Any new fields you hear about or new methods, like tar sands drilling are expensive, water guzzling, dangerous, environmentally disastrous and unlikely to produce more than a few years worth of oil, and that a decade or more down the line. That means abundant, cheap oil is about to be history. What difference does that make?

For one thing, there is no replacement for oil that can do all that oil has done as cheaply and universally as oil has done it. I offer an exercise in Life Rules, “The ABC’s of Peak Oil” which helps readers imaginatively subtract from their lives everything that depends in one way or another on cheap easy oil. It doesn’t leave much. (See Beth Terry’s Web site, for example, for what subtracting plastics may entail.)

The global economy that presently supplies us with our food, runs on cheap oil and lots of it. It runs slower and less predictably on expensive oil that’s hard to get because it’s located in hard-to-reach or high-risk conflict-ridden zones. Cheap, abundant food on the shelves of grocery and big box stores and food banks, on our tables and in our bellies depends on cheap abundant oil for fertilizers, pesticides, and herbicides, and to power farm machinery and transport food from fields to processors and packagers and then to purveyors and consumers, around the world. Past peak, that system’s going to have the half-life of the strontium 90 that’s escaping the Fukushimi Dai-ichi reactor: 29 years, or thereabouts. One good global crisis, and not that long.

2) Peak soil & space. A couple of links between peak oil and peak soil: First, it matters that one of the proposed alternatives to oil is biofuels. Acreage around the world is being converted from production of corn, wheat and soy for human and animal consumption — i.e. food — to production of ethanol and biofuels to put in trucks and cars and … which makes remaining corn, et al., more expensive. Some energy economy geniuses are proposing that Afghans, for example, convert the fields of opium poppies that are their primary agricultural export, not to growing grains or legumes or other staple foods, but to biofuel, which would, not coincidentally, make the gasoline that goes in American military equipment much cheaper and provide Afghans with a profitable market item rather than food.

According to a 2009 National Geographic staff report, “The corn used to make a 25-gallon tank of ethanol would feed one person for a year.” Tell that to Archer-Daniels-Midland, Al Gore’s deep-pockets friend and mega-ethanol and corn products producer. Second, the huge oil-gluttonous machinery that has made factory farming possible has compacted soils, literally crushing the life out of them.

Arable land in the developing or so-called Third World has been at a premium since time immemorial, thanks to geographic location and/or persistent plundering by empires old and new. Revolutions in North Africa and the Middle East are occurring not just to obtain more democratic governments but also to obtain more food and more affordable food. Revolutionaries are barking up a tree that’s seen better days.

In the United States and elsewhere in the developed, read “First” world, arable land has reached peak production. All those petroleum-based products that fueled the Green Revolution of the last century, also produce so many crops, constantly, with support from toxic chemicals and without concern for the microbes that make soil a live, self-regenerating system, that most American farmland — if its farmers didn’t go organic a while back — is comprised of dead soils. Peak oil makes a repeat of the petroleum-driven 20th century Green Revolution impossible, which is good for soil and other living things, not so much for food prices and supplies.

After peak, in soil like in oil, comes descent. Adding insult to injury, every year farmers lose thousands of acres of arable land to urban and suburban sprawl and more tons of topsoil than they produce of grain and other field crops to attrition. Half the Earth’s original trove of topsoil, like that which once permitted the American Midwest to feed the world, has been lost to wind and erosion. Millions of years in the making, it has been depleted and degraded by industrialized agriculture in only a couple of centuries. China’s soils ride easterly winds across the Pacific to settle out on cars and rooftops in California while the American Bread Basket’s soils are building deltas and dead zones at the mouth of the Mississippi. Like oil, that soil isn’t coming back. We can only build it, help it to build itself and wait.

3) Monoculture. We can cut to the chase on this one. The food we eat is produced on industrial-strength, fossil-fuel-driven super farms. Those farms practice monoculture: the planting one crop, often of one genetic strain of that crop, at a time and sometimes year after year over vast landscapes of plowed field. When thousands of acres of farmland are sown with the same genetic strain of grain, uncongenial bout of weather, disease or pest to which that strain is susceptible can wipe out the whole crop.

At present the Ug99 fungus, called stem rust, which emerged a decade ago in Africa, could wipe out more than 80 percent of the world’s wheat crops as it spreads, according to a 2009 article in the L. A. Times. Recent studies follow its appearance in other countries downwind of eastern Africa where it originated, including Yemen and Iran (where revolutionaries are already protesting rising prices and shortages), which opens the possibility of its emergence further downwind in Central and Eastern Asia. The race is on to breed resistant plants before it reaches Canada or the U.S. But it can take a decade or more to create a universally adaptable new genetic line that is resistant to a new disease like stem rust that can travel much faster than that. The current spike in the price of wheat is due in part to Ug99 which might properly be renamed “Ugh.”

4) Climate instability. Bad — uncongenial — weather has lately devastated crops in the upper Midwest, Florida, Mexico, Russia, China, Australia, parts of Africa and elsewhere. Many climate scientists believe we’ve passed the equivalent of peak friendly and familiar weather, too. And while increasing heat will bedevilharvests, intense cold, downpours and flooding, drought and destructive storm systems will make farming an increasingly hellish occupation if profit is what’s being farmed for.

The transitional climate will be unpredictable from season to season and will produce more extremes of weather and weather-related disasters, which means farmers will not be able to assume much about growing seasons, rainfall patterns and getting crops through to harvest. If the past is precedent, the transition from the climate we’ve been used to for 10,000 years to whatever stable climate emerges out of climate chaos next, could take decades, centuries or even millennia. Especially if we keep messing with it. When a whole nation’s or region’s staple crops, especially grains, are lost or on-again-off-again, everything down the line from the crops themselves become more expensive, from meat, poultry and dairy to every kind of processed food. I.e., the food we shop for as if supermarkets were actually where food comes from.

5) The roller-coaster economy. This isn’t the place for me to offer my explanation for the probability of global economic collapse. (More on that here.) No pundits, talking-heads or economic analysts (well, very few) deny there are rough economic times ahead. Even many of the cautious among them acknowledge that we may be looking at five or six years of high unemployment and many of the lost jobs won’t be coming back. The less cautious, like me, predict the collapse of the whole fossil-fueled, funny-money, inequitable, overly complicated global economic system in the lifetimes of anyone under 50. Well, at the rate we’re going in all the wrong directions politically and economically, I hazard the guess, anyone under 80.

Clearly, depending on the present system to provide us with most or all of our food reliably or long-term, is unwise in the extreme. Which is how we get back to why we need to garden as if our lives depended on it. Bringing food production processes and systems closer to home is going to prove vital to our survival. We need to take producing our own and each other’s food as seriously as we’ve taken producing a money income because growing numbers of us won’t have enough money to buy food in the conventional ways and there will be less of it to buy. So what’s our recourse?

Gardening Like Everybody’s Business

Under the influence and auspices of the prevailing economy, most Americans have forgotten how to provide for themselves. We’ve become accustomed to earning money with which we buy provisions. That process is about to have the legs kicked out from under it. Instead of earning money (or its funny-money kin like credit cards) to buy the things we need, we’ll need to start providing more of those things for ourselves and each other locally and (bio)regionally. Gardening — and small-scale farming — while they will need to be undertaken in a businesslike fashion will be less about doing business than about everyone’s having something to eat and more people being busy providing it. And while not everyone will be able to garden or farm, we are all able to get up close and personal with those who do.

Source: AlterNet

High residential vacancies are killing many housing markets, as foreclosed homes sit on the market and depress sale prices and property values.

The national vacancy rate at 11.4% according to a release Tuesday from the Census Bureau.

“Vacant homes equal more downward pressure on home prices,” said Brad Hunter, chief economist for Metrostudy, a real estate information provider.

Maine had the highest proportion of empty housing stock, at 22.8%. Other states with gluts of empty houses included Vermont (20.5%), Florida (17.5%), Arizona (16.3%) and Alaska (15.9%).

The way the census calculates the vacancy rates, however, is problematic. It includes properties such as ski lodges, beach houses and pied-à-terres that many real estate statisticians would not.

These are often summer homes or second homes, but census lumps them together with homes that have been sold but not occupied, empty homes for sale or rent, and homes used by migrant workers. Basically, anything other than a primary residence is considered vacant.

“You can only live in one home,” said William Chapin of the Census Bureau’s Housing Statistics Branch. “If you own five homes that you occasionally live in, four of them will be counted as vacant.”

But Paul Bishop, the vice president for research for the National Association of Realtors, countered that these properties aren’t vacant in the usual sense of the term. “A vacation home is hardly the same situation as a foreclosed home that has been taken back by the bank,” he said.

In Maine, more than two-thirds of the 160,000 vacancies were vacation homes in 2009; Vermont had a similarly high concentration.

Compare them with Connecticut, which has a vacancy rate of just 7.9%, the lowest of all the states. If you back out the vacation properties from the statistics, the states have very similar vacancy rates: 6.1% for Connecticut and 7% for Maine.

Some states have high vacancy rates even after backing out the second homes: Florida’s is about 10%; Arizona’s is 10.7%; and Nevada’s 11.4%.

Besides Connecticut, the other states with lowest vacancy rates are California, Iowa, Illinois, Virginia and Washington, all at 9.2% or lower.\

Source: CNN