U.S. to Raise 'Irregular War' Capabilities

Washington Post | The Pentagon this week approved a major policy directive that elevates the military's mission of "irregular warfare" -- the increasingly prevalent campaigns to battle insurgents and terrorists, often with foreign partners and sometimes clandestinely -- to an equal footing with traditional combat.

The directive, signed by Deputy Defense Secretary Gordon England on Monday, requires the Pentagon to step up its capabilities across the board to fight unconventionally, such as by working with foreign security forces, surrogates and indigenous resistance movements to shore up fragile states, extend the reach of U.S. forces into denied areas or battle hostile regimes.

The policy, a result of more than a year of debate in the defense establishment, is part of a broader overhaul of the U.S. military's role as the threat of large-scale combat against other nations' armies has waned and new dangers have arisen from shadowy non-state actors, such as terrorists that target civilian populations.

"The U.S. has considerable overmatch in traditional capabilities . . . and more and more adversaries have realized it's better to take us on in an asymmetric fashion," said Michael G. Vickers, assistant secretary of defense for special operations/low-intensity conflict and interdependent capabilities, and a chief architect of the policy.

Designed to institutionalize lessons the U.S. military has learned -- often painfully -- in Afghanistan and Iraq since 2001, the policy aims to prepare the military for the most likely future conflicts and to prevent the type of mistakes made in the post-Vietnam War era, when hard-won skills in counterinsurgency atrophied.

The Terrorist Within...,

Truthdig | Robert Pape in “Dying to Win: The Strategic Logic of Suicide Terrorism,” found that most suicide bombers are members of communities that feel humiliated by genuine or perceived occupation. Almost every major suicide-terrorist campaign—over 95 percent—carried out attacks to drive out an occupying power. This was true in Lebanon, Sri Lanka, Chechnya and Kashmir, as well as Israel and the Palestinian territories. The large number of Saudis among the 9/11 hijackers appears to support this finding.

Collective humiliation is also the driving force behind al-Qaida and most terrorist groups. Osama bin Laden cites the Sykes-Picot Agreement, which led to the carving up of the Ottoman Empire, as the beginning of Arab humiliation. He attacks the agreement for dividing the Muslim world into “fragments.” He rails against the presence of American troops on the soil of his native Saudi Arabia. The dark motivations of Islamic extremists mirror our own.

Roosevelt's Brain Trust vs. Obama's Brainiacs

truthout | Even if everyone is now using the Great Depression and the New Deal as benchmarks for what we're living through, Act I of the new script has already veered away from the original.

A suffocating political and intellectual provincialism has captured the new administration in embryo. Instead of embracing a sense of adventurousness, a readiness to break with the past so enthusiastically promoted during the campaign, Obama seems overcome with inhibitions and fears.

Practically without exception he has chosen to staff his government at its highest levels with refugees from the Clinton years. This is emphatically true in the realms of foreign and economic policy. It would, in fact, be hard to find an original idea among the new appointees being called to power in those realms - some way of looking at the American empire abroad or the structure of power and wealth at home that departs radically from views in circulation a decade or more ago. A team photo of Obama's key cabinet and other appointments at Treasury, Health and Human Services, Commerce, the President's Economic Recovery Advisory Board, the State Department, the Pentagon, the National Security Council, and in the U.S. Intelligence Community, not to speak of senior advisory posts around the President himself, could practically have been teleported from perhaps the year 1995.

Recycled Clintonism is recycled neo-liberalism. This is change only the brainiacs from Hyde Park and Harvard Square could believe in. Only the experts could get hot under the collar about the slight differences between "behavioral economics" (the latest academic fad that fascinates some high level Obama-ites) and straight-up neo-liberal deference to the market. And here's the sobering thing: despite the grotesque extremism of the Bush years, neo-liberalism also served as its ideological magnetic north.

Is this parochialism, this timorousness and lack of imagination, inevitable in a period like our own, when the unknown looms menacingly and one natural reaction is certainly to draw back, to find refuge in the familiar? Here, the New Deal years can be instructive.

Mumbai mayhem conspiracy

Pakistan Times | Former Inter Services Intelligence (ISI) ISI Chief General (Retd.) Hameed Gul has said that Mumbai incident is an international based conspiracy to deprive Pakistan of its atomic power. Taking to a private TV channel on Friday, he said that to involve Pakistan in the incident reflected that some forces wanted to declare Pakistan a failure state as somehow it had become necessary to make Pakistan knee down in order to snatch its atomic power away.

He said that the way militants entered into the hotels and executed their plan in extremist Hindus like Bal Thakrey and Narender Modi’s area it seemed impossible without internal support adding these people had grudge with Muslims and wanted to defame them all over the world.

He said that the militants were named as Dakan Mujahedeen and it was particularly ridicules when neither their demands were brought to surface nor their target was clear. He said that India is habitual to accuse Pakistan whenever any mishap takes place as in the case of Samjhota Express but it could not prove the allegations and in Maligaon incident Indian Col. Srikanth Proat was later found guilty.

He feared that India would deploy its army on the boarders, like 2002 when a bloody incident took place on December 13, 2001 out side Indian parliament, to curb Kashmiris’ freedom movement and deprive Pakistan of its atomic assets saying it would be in-competency of the government if India gets success in its plane.

To a question, he said that US wanted to see Indian army in Afghanistan to disintegrate the country as new maps used to publish form US showing divided Pakistan in different four parts. When asked, the blockage of water and make the country knee down before IMF was a part of pre-planned trick.-SANA

The Budgetary Implications of Drug Prohibition

(Full Report) December, 2008 Jeffrey A. Miron Department of Economics Harvard University

Executive Summary

• Government prohibition of drugs is the subject of ongoing debate.

• One issue in this debate is the effect of prohibition on government budgets. Prohibition entails direct enforcement costs and prevents taxation of drug production and sale.

• This report examines the budgetary implications of legalizing drugs.

• The report estimates that legalizing drugs would save roughly $44.1 billion per year in government expenditure on enforcement of prohibition. $30.3 billion of this savings would accrue to state and local governments, while $13.8 billion would accrue to the federal government. Approximately $12.9 billion of the savings would results from legalization of marijuana, $19.3 billion from legalization of cocaine and heroin, and $11.6 from legalization of other drugs.

• The report also estimates that drug legalization would yield tax revenue of $32.7 billion annually, assuming legal drugs are taxed at rates comparable to those on alcohol and tobacco. Approximately $6.7 of this revenue would result from legalization of marijuana, $22.5 billion from legalization of cocaine and heroin, and $3.5 from legalization of other drugs.

• Whether drug legalization is a desirable policy depends on many factors other than the budgetary impacts discussed here. Rational debate about drug policy should nevertheless consider these budgetary effects.

• The estimates provided here are not definitive estimates of the budgetary implications of a legalized regime for currently illegal drugs. The analysis employs assumptions that plausibly err on the conservative side, but substantial uncertainty remains about the magnitude of the budgetary impacts.

Does Mr. O Know?

Kunstler | This raises the issue of what Mr. Obama and his team really know about our energy predicament. The president-elect has made some noises -- recently on the 60 Minutes show -- that he understands something about the current price dislocations in the oil markets resulting from the larger financial turmoil. He alluded to the public's erroneous notion that current low-ish oil prices mean the oil problem is over. But does the incoming president know some of the following details?

For instance, does Mr. O know that global oil production appears to have peaked at around 85 million barrels a day, with poor prospects of ever getting beyond that? This single naked fact has broad ramifications, above all whether we can continue to think in terms of industrial "growth" as the benchmark for economic health. There are many interpretations of the current financial fiasco. Some of them are based on long-term technical wave theories. A more down-to-earth view suggests the shock of peak oil -- though it doesn't exclude wave theories.

Does Mr. O know that world oil discovery has fallen to insignificant levels after peaking long ago in the 1960s. Does he know we are finding no more super-giant oil fields on the scale of Arabia's Ghawar or Mexico's Cantarell, which have supplied most of the world's oil for the past forty years and are now running down? Does he know that you can't produce oil that hasn't been discovered? Does Mr. O know that virtually all the oil-producing nations have entered production decline. Surely someone has whispered in his ear about the IEA's projection that global oil production would fall 9.1 percent in the coming year.

Does Mr. O know that oil exports have been trending to decline at a steeper rate than oil depletion? That is, the exporting nations are losing their ability to send oil to the importers (like us) at a rate mathematically greater than the run-down in their production.They are using more of their own oil even while their production is going down. For example, Mexico is depleting overall at more than 9 percent a year (with the Cantarell field alone running down at more than 15 percent annually). Does he know Mexico's net exports are crashing? Mexico has been our number three leading source of imports. In a very few years they will not be able to send us any oil. A deluded American public has no idea that this is happening. Will Mr. O explain it to them?

The Famine Of 2009?

Daily Kos | Last week I received a very concerned call from South Dakota farmer and agronomist Bryan Lutter. "Neal, we're out of propane!" I figured this was personal distress – he and his family farm over three square miles of land and I know this has been a tough year for many people. He promptly corrected my misconception when I tried to console him. "No, everybody is out, all three grain elevators, we can't get fuel for the bins, and we're coming in real wet this year."

There are equally dramatic issues due to the bankruptcy of Verasun and the apparent insolvency of the nation's largest private crop insurance program. Payments that would have come in June or July of a normal year are still not dispersed at the end of November and this has grim implications for next year's crop.

I started digging into the details and unless I'm badly mistaken people are going to be starving in 2009 over causes and conditions being set down right now. It's a complex, interlocking issue, and I hope I've done a good job explaining it below the fold ...

Propane Shortage Hampers Drying...,

Grand Forks Herald | Farmers in eastern North Dakota and beyond are desperately trying to bring in the high-moisture corn crop in the region, but are running into a liquid propane fuel shortage. Mike Rud, executive director of the North Dakota Propane Gas Association, said the recent sudden resumption in the corn drying activity after freeze-up is causing demand to exceed supplies.

His association has reactivated requests to Gov. John Hoeven’s office, asking for a waiver that would allow truckers to work more than 11 hours in a day — as many as 15 hours or more — to deliver propane. But the problem is bigger than that.

“For the guy that’s trying to get corn dried and can’t get propane when he wants it, it’s a huge deal,” Astrup said. He said he’s been taking care of his own propane customers. Most farmers he has talked to have been reasonable, but some — those who might purchase fertilizer, chemical and refined fuels, but get their propane elsewhere — have not understood that they can’t get propane from him on the spur-of-the-moment.

Astrup said suppliers sometimes simply can’t keep up with demands for trucking, as they might use the same tractors to haul different trailers with petroleum products, anhydrous ammonia and liquid propane. “It could be their growers are using more than they thought they would.”

"Inflation" deflated

Automatic Earth | Thanks to a credit boom that dates back to at least the early 1980s, and which accelerated rapidly after the millennium, the vast majority of the effective money supply is credit. A credit boom can mimic currency inflation in important ways, as credit acts as a money equivalent during the expansion phase. There are, however, important differences. Whereas currency inflation divides the real wealth pie into smaller and smaller pieces, devaluing each one in a form of forced loss sharing, credit expansion creates multiple and mutually exclusive claims to the same pieces of pie. This generates the appearance of a substantial increase in real wealth through leverage, but is an illusion. The apparent wealth is virtual, and once expansion morphs into contraction, the excess claims are rapidly extinguished in a chaotic real wealth grab. It is this prospect that we are currently facing today, as credit destruction is already well underway, and the destruction of credit is hugely deflationary. As money is the lubricant in the economic engine, a shortage will cause that engine to seize up, as happened in the 1930s. An important point to remember is that demand is not what people want, it is what they are ready, willing and able to pay for. The fall in aggregate demand that characterizes a depression reflects a lack of purchasing power, not a lack of want. With very little money and no access to credit, people can starve amid plenty.

Attempts by governments and central bankers to reinflate the money supply are doomed to fail as debt monetization cannot keep pace with credit destruction, and liquidity injected into the system is being hoarded by nervous banks rather than being used to initiate new lending, as was the stated intent of the various bailout schemes. Bailouts only ever benefit a few insiders. Available credit is already being squeezed across the board, although we are still far closer to the beginning of the contraction than the end of it. Further attempts at reinflation may eventually cause a crisis of confidence among international lenders, which could lead to a serious dislocation in the treasury bond market at some point.

Credit Crunch's Impact on the Energy Industries

Oil Drum | I recently looked through news articles to see which energy sectors were being affected by the credit crisis. I was amazed at how widespread and how devastating the impact is.

There are really two closely related problems. One is reduced access to credit, making new borrowing difficult for nearly every business that requires debt. Prices for all commodities have been dropping as well. At least part of the reason for this price decline is the lack of availability of credit—many of the less credit-worth buyers drop out of the market. This leaves fewer buyers and almost the same number of sellers, so the price drops.

In this post, I examine how reduced access to credit and the concomitant decline in commodity prices is affecting energy companies. The impact I am seeing across a wide range of energy companies is a decline in new investment and a stretched-out timeframe for new projects. In addition, many of the weaker companies in the energy supply chain are likely to be forced out of business by the credit crisis.

When energy production is viewed for all companies combined, the below analysis suggests the credit crisis will cause the production of virtually all fuels to be in decline, relative to what they otherwise would have been. I expect production of oil will decline (in absolute terms, not just relative terms) in the years ahead. Since oil production was already on a plateau, this decline is expected to bring about "peak oil". Because of long lead times, uranium production seems likely to fall short of what is needed by nuclear power plants, within the next few years.

The long-term implications of declines in energy production are very serious. Research shows that standards of living are closely tied to energy consumption. With less energy available, standards of living are likely to decline.

Making sure your home is not an energy sink - III

Science Alert | This time, we’ll look at space heating. In Melbourne you need it, if you don’t want to be the bad guy who goes around telling everybody to put on jumpers instead of heating the house. Our house is heated by gas, and occasionally by a wood fire. Space heating, as you can imagine, is one of the big energy users and also a big CO2 producer.

In the pre-green ‘business as usual’ scenario, the central heating accounted for about one-quarter of our home’s CO2 production. We were using around 55 000 MJ (megajoules) per year.

Gas is sold in MJ, electricity in kWh (kilowatthours). Both MJ and kWh are units of energy. You can convert MJ to tonnes of CO2 produced by dividing MJ by 16 000. Our central heating unit was producing (55 000/16 000) 3.4 tonnes of CO2 a year. It was an older type with a pilot light which, I discovered, was using more gas than the cooktop! We replaced the unit with a 5-star model with electronic ignition. At the same time we added insulation to the ceiling. The combined effect is that we are now using about 39 000 MJ per year – a saving of 1 tonne of CO2 per year.

After the various energy modifications we made (Figure 1), we are producing about one-quarter of the CO2 that we produced under the ‘business as usual’ scenario. Overall, the result is quite satisfying.

Our journey
In the first part of this series, I talked about how much energy various domestic appliances use and how we could reduce it. Some surprises included:

* A normal hot shower uses the energy equivalent of 240 light bulbs.
* Leaving a light on every night for a year uses as much energy as driving from Melbourne to Sydney.
* Electrically boosted solar water heating can be worse than gas.
* Fluorescent lights are not necessarily low energy.
* Leaving fluorescent lights on does not save energy.
* Low-voltage downlights use a lot of energy.

After giving you the bad news on the energy consumed by domestic fittings and appliances, we saw how we could do a lot better, by making the right choices and spending a bit of money. By using a combination of tactics, our household managed to get its CO2 emissions down to one-quarter of its ‘business as usual’ scenario.

Making sure your home is not an energy sink - II

Science Alert | In the first part, I mentioned how some appliances use a considerable amount of energy when not in use. For example, my son recently installed a 5-star split-system air-conditioner. It draws 10 watts on standby.

If we do the calculations, 10 W (watts) for 24 hours a day, 365 days a year comes to 88 kWh (kilowatt hours) per year.

Now let’s work out its likely usage when operating. Say we have 20 hot days a year when the system is running flat out for 8 hours. Let’s conservatively assume that running flat out, it draws 550 watts. The sum of 550 watts for 8 hours for 20 days comes to 88 kWh per year.

This 5-star-rated appliance uses as much energy on standby as doing its job. Systems like this should be installed with a switch so they can be turned off completely for most of the year.

One last point. I have only considered domestic hot water, lighting, cooking and domestic appliances. I have not mentioned space heating, transport, holidays, the workplace and the energy in all the goods and services we buy.

That comes in the next exciting episode!

Making sure your home is not an energy sink - I

Science Alert | It makes no sense to turn off a light when you leave a room in which an electric heater has been left on. The power used by the light is 100 watts (W), while a heater typically draws 2000 W.

How big a yardstick is 100 W? Let’s assume that we leave a 100 W light globe on every night for six hours, which adds up to 2200 hours a year.

To calculate the energy used – measured in watthours – over the year, we simply multiply the hours by watts, which in this case is 220 000 watt-hours (Wh). As we know, ‘kilo’ means ‘thousand’, so a more manageable way of expressing this figure is 220 kilowatt-hours (kWh).

To most people, including me, a number like 220 kWh doesn’t mean much, so let’s convert it into something familiar – say litres of petrol – as an energy equivalent.

The best efficiency that can be achieved by burning brown coal to generate electricity is 25 per cent. This means four times the energy that comes through your electricity meter or power point is required to produce the energy you use in your home.

Taking the above example: 4 x 220 kWh, or 880 kWh, is required to produce that amount of electricity. If we go a step further, a litre of petrol contains about 10 kWh of energy. Thus, the 880 kWh equates to 88 litres – enough for the average car to drive 880 km, or from Melbourne to Sydney. That’s just to run one light globe each night for a year!

new mortgage crisis looms

Associated Press | Black Friday's retail shoppers hunting for holiday bargains won't be enough to stave off what's likely to become the next economic crisis. Malls from Michigan to Georgia are entering foreclosure, commercial victims of the same events poisoning the housing market.

Hotels in Tucson, Ariz., and Hilton Head, S.C., also are about to default on their mortgages.

That pace is expected to quicken. The number of late payments and defaults will double, if not triple, by the end of next year, according to analysts from Fitch Ratings Ltd., which evaluates companies' credit.

"We're probably in the first inning of the commercial mortgage problem," said Scott Tross, a real estate lawyer with Herrick Feinstein in New Jersey.

That's bad news for more than just property owners. When businesses go dark, employees lose jobs. Towns lose tax revenue. School budgets and social services feel the pinch.

Companies have survived plenty of downturns, but economists see this one playing out like never before. In the past, when businesses hit rough patches, owners negotiated with banks or refinanced their loans.

But many banks no longer hold the loans they made. Over the past decade, banks have increasingly bundled mortgages and sold them to investors. Pension funds, insurance companies, and hedge funds bought the seemingly safe securities and are now bracing for losses that could ripple through the financial system.

"It's a toxic drug and nobody knows how bad it's going to be," said Paul Miller, an analyst with Friedman, Billings, Ramsey, who was among the first to sound alarm bells in the residential market.

The Peak Oil Crisis: Electrical Efficiency

FCNP | Last week the Virginia Commission on Energy and the Environment held a day long meeting to hear testimony on the future role of electricity in the commonwealth.

Representatives of the various power companies serving the state testified as to their plans and their commitment to reaching the state's goal of reducing electricity consumption by 10 percent by 2022. As it turns out, this goal turns out to be murky as nobody ever said what the 10 percent should be based on - 10 percent of current consumption so that the state is actually using 10 percent less 14 years from now, or 10 percent less than what 2022 consumption would be if no efforts to conserve electricity were undertaken. In the latter case the state could actually be burning considerably more electricity in 2022 as the state's population is expected to grow and it is likely that a lot of electric or plug-in hybrid cars will be refueling off the electric grid by then.

The most interesting presentation of the day, however, was made by a non-profit group called the American Council for an Energy Efficient Economy (ACEEE). This group believes that making the most efficient use of the electricity we already generate is the best and cheapest way to gain more electricity. While converting over to more efficient electricity consuming devices (such as compact fluorescent bulbs) is not free, the Council cites studies that replacing end user equipment, adding insulation, etc. can cost anywhere from one half to one quarter the cost of installing and fueling new electricity generating capacity. This includes wind generated electricity which gets its energy for free.

The Problem with Powerdown Planning

Archdruid Report |There are two widely held beliefs these days about how we can deal with the end of the age of petroleum. The first claims that we simply need to find another energy source as cheap, abundant, and concentrated as petroleum, and run our society on that instead. The second claims that we simply need to replace those parts of our society that depend on cheap, abundant, concentrated energy with others that lack that dependence, and run our society with them instead. Most people in the peak oil scene, I think, have caught onto the problem with the first belief: there is no other energy source available to us that is as cheap, abundant, and concentrated as petroleum; the fact that we want one does not oblige the universe to provide us with one, and so we might as well plan to power our society by harnessing unicorns to treadmills.

The problem with the second belief is of the same order, but it’s much less widely recognized. Toss aside the parts of our society that depend on cheap, abundant, concentrated energy, and there’s nothing left. Nor are the components needed for a new low-energy society sitting on a shelf somewhere, waiting to be used; we’ve got some things that worked tolerably well in simpler agrarian societies, and some promising new developments that have been tested on a very small scale and seem to work so far, but we have nothing like a complete kit. Thus we can’t simply swap out a few parts and keep going; everything has to change, and we have no way of knowing in advance what changes will be required.

This last point is often missed. One of the people who commented on last week’s post, a software designer by trade, pointed out that he starts work on a project by envisioning what the new software is going to do, and then figures out a way to do it; he argued that it makes just as much sense to do the same thing with human society. A software designer, though, knows the capabilities of the computers, operating systems, and computer languages his programs will use; he also knows how similar tasks have been done by other designers in the past. We don’t have any of those advantages in trying to envision a sustainable future society.

Rather, we’re in the position of a hapless engineer tasked in 1947 with drafting a plan to develop word processing software. At that time, nobody knew whether digital or analog computers were the wave of the future; the handful of experimental computer prototypes that existed then used relays, mechanical linkages, vacuum tubes, and other soon-to-be-outmoded technologies, while the devices that would actually make it possible to build computers that could handle word processing had not yet been invented, or even imagined. Under those conditions, the only plan that would have yielded any results would consist of a single sentence: “Invest heavily in basic research, and see what you can do with the results.” Any other plan would have been wasted breath, and the more detailed the plan, the more useless it would have been.

Enough of 'Barbiturate' Left Cynicism

AlterNet | What the 60s freedom struggle took for granted, but which the cynical barbiturate left refuses to concede, is the basic goodness of the people of this nation, and the ability of the nation, for all of its faults (and they are legion) to change. Look at pictures of the freedom riders in 1961, or the volunteers during Freedom Summer of 1964 and notice the dramatic difference between them and some of the seething radicals of today -- whose radicalism is almost entirely about style and image more than actual analysis and movement building. In the case of the former, even as they stared down mobs intent on injuring or killing them, and even as they knew they might be murdered, they smiled, they laughed, they sang, they found joy. In the case of the latter, one most often notices an almost permanent scowl, a dour and depressing affect devoid of happiness, unable to appreciate life until the state is smashed altogether and everyone is subsisting on a diet of wheatgrass, bean curd and tempeh.

Hell, maybe I'm just missing the strategic value of calling people "useful idiots," or likening them to members of a cult, the way some leftists have done recently with regard to Obama supporters. Or maybe it's just that being a father, I have to temper my contempt for this system and its managers with hope. After all, as a dad (for me at least), it's hard to look at my children every day and think, "Gee, it sucks that the world is so screwed up, and will probably end in a few years from resource exploitation...Oh well, I sure hope my daughters have a great day at school!"

Fatherhood hasn't made me any less radical in my analysis or desire to see change. In fact, if anything, it has made me more so. I am as angry now as I've ever been about injustice, because I can see how it affects these children I helped to create, and for whom I am now responsible. But anger and cynicism do not make good dance partners. Anger without hope, without a certain faith in the capacity of we the people to change our world is a sickness unto death. It is consuming, like a flesh-eating disease, and whose first victim is human compassion. While I would never counsel too much confidence in far-right types to join the struggle for justice -- and there, I think skepticism is well-warranted -- if we can't conjure at least a little optimism for the ability of liberals and Democrats to come along for the ride and to do the work, then what is the point? Under such a weighty and pessimistic load as this, life simply becomes unbearable. And if there is one thing we cannot afford to do now -- especially now -- it is to give up the will to live and to fight, another day.

Seven self-sabotaging 'growth' scenarios

Market Watch | What is next? If the "Great Depression 2" scenario plays out, what's after 2011? Recovery? A new bull? How can you protect your money? Or are we all helpless victims of the raging winds of fate and Wall Street's self-serving brand of capitalism.

Let's review several scenarios in the bright lens of Akira Kurosawa's classic 1950 film, "Rashomon," at once an ancient Kabuki morality play, a tense modern courtroom drama, and a revealing documentary on human psychology. In "Rashomon" we witness the murder of a Samurai warrior and a rape through the eyes of several witnesses, each swearing they saw what "really happened."

We "see" these tragedies in a forest through the eyes of a Woodcutter, Priest, Samurai's Wife, the accused Bandit, and the Samurai, speaking through a Medium. But as "the facts" unfold, the lies and contractions of biased minds are exposed and the truth becomes increasingly blurred. In the end, we are still wondering: What really happened?

Similarly, today we're asking; "What really happened to America, so fast?" With Bush, Paulson, Bernanke and their Reaganomics ideology? To my 401(k), my CDs, my kid's college fund, my retirement nest egg. To the great American dream? What happened?

The Neo-Yeltsin Administration?

CounterPunch | Reality had to raise its ugly head. Barack Obama was elected with overwhelming approval to inaugurate an era of change. And at his November 25 press conference, he said that his decisive victory gave him a mandate to change the direction in which America is moving. But his recent economic and foreign policy appointments make it clear that when he chose “change” as his campaign slogan, he was NOT referring to the financial, insurance and real estate (FIRE) sectors, nor to foreign policy. These are where the vested interests concentrate their wealth and power. And change already has been accelerating here. Unfortunately, its direction has been for the top 1% of America’s population to raise their share of in the returns to wealth from 37% ten years ago to 57% five years ago and an estimated nearly 70% today.

The change that Mr. Obama is talking about is largely marginal to this wealth, not touching its economic substance – or its direction. No doubt he will bring about a welcome change in race relations, environmental regulations, and a more civil rule of law. And he probably will give wage earners an income-tax break (thereby enabling them to keep on paying their bank debts, incidentally). As for the rich, they prefer not to earn income in the first place. Taxes need to be paid on income, so they take their returns in the form of capital gains. And simply avoiding losses is the order of the day in the present meltdown.

Where losses cannot be avoided, the government will bail out the rich on their financial investments, but not wage earners on their debts. On that Friday night last October when Mr. Obama and Mr. McCain held their final debate, Mr. Obama was fully on board with the bailouts. And this week’s appointment of the “Yeltsin” team who sponsored Russia’s privatization giveaways in the mid-1990s – Larry Summers and his protégés from the Clinton’s notorious Robert Rubin regime – shows that he knows his place when it comes to the proper relationship between a political candidate and his major backers. It is to protect the vested interests first of all, while focusing voters’ attention on policies whose main appeal is their ability to distract attention from the fact that no real change is being made at the economic core and its power relationships.

a frenzy over free food

Denver Post | Want one more palpable sign of a desperate economy?

An estimated 40,000 people came to a Weld County farm Saturday to collect free potatoes, carrots and leeks.

Cars snaked around cornfields and parallel parked along Colorado 66 and 119 early in the morning to get free food from the Miller family, who farm 600 acres outside of Platteville, about 37 miles north of Denver.

As this prolonged Indian summer continued, the Millers had decided to give away produce because so much was left over at the end of their annual fall festival. Any day now, a few deep freezes would kill it off.

They expected between 5,000 and 10,000 people spread out over a couple of days. Instead, they found themselves on Saturday morning inundated with cars and people with sacks and wagons and barrels ready to harvest whatever was available.

The Millers canceled the second day of the giveaway originally planned for today because, as Chris Miller put it, "the pickins' are very slim now."

At one point, 30 acres of family farmland had become a parking lot. Their crowd estimate of 40,000 plus was based on the number of cars. Sheriff's officials said they "wouldn't be surprised" if that count was accurate.

Traffic was backed up almost to Interstate 25, and police ticketed people who had illegally abandoned their cars in the frenzy.

"Overwhelmed is putting it mildly," Miller said. "People obviously need food."

China and the Congo Wars

Global Research | The Democratic Republic of the Congo contains more than half the world’s cobalt. It holds one-third of its diamonds, and, extremely significantly, fully three-quarters of the world resources of columbite-tantalite or "coltan" -- a primary component of computer microchips and printed circuit boards, essential for mobile telephones, laptops and other modern electronic devices.

America Minerals Fields, Inc., a company heavily involved in promoting the 1996 accession to power of Laurent Kabila, was, at the time of its involvement in the Congo’s civil war, headquartered in Hope, Arkansas. Major stockholders included long-time associates of former President Clinton going back to his days as Governor of Arkansas. Several months before the downfall of Zaire’s French-backed dictator, Mobutu, Laurent Desire Kabila based in Goma, Eastern Zaire had renegotiated the mining contracts with several US and British mining companies including American Mineral Fields. Mobutu’s corrupt rule was brought to a bloody end with the help of the US-directed International Monetary Fund.

Just weeks after President George W. Bush signed the Order creating a new US military command dedicated to Africa, AFRICOM, events on the mineral-rich continent have erupted which suggest a major agenda of the incoming Obama Presidency will be for the son of a black Kenyan to focus US resources, military and other, on dealing with the Republic of Congo, the oil-rich Gulf of Guinea, the oil-rich Darfur region of southern Sudan and increasingly the Somali ‘pirate threat’ to sea lanes in the Red Sea and Indian Ocean. The legitimate question is whether it is mere coincidence that Africa appears just at this time to become a new geopolitical ‘hot spot’ or whether it has a direct link to the formal creation of AFRICOM.

What is striking is the timing. No sooner had AFRICOM become operational than major new crises broke out in both the Indian Ocean-Gulf of Aden regarding spectacular incidents of alleged Somali piracy, as well as eruption of bloody new wars in Kivu Province in the Republic of Congo. The common thread connecting both is their importance, as with Darfur in southern Sudan, for China’s future strategic raw materials flow.

Africa: A war on terror's hidden front

Chicago Tribune | U.S. Army Staff Sgt. Cynthia Ramirez roared through it in an unmarked Land Cruiser, projecting the awesome might of the U.S. military into a wasteland little seen, much less penetrated, by outsiders. The landscape was like a slap—an eye-stinging waste of salt pans and glass-blue mountains that was still inhabited by Muslim warrior-nomads, the Afar, tough customers who long ago had swapped their traditional spears for Kalashnikovs.

Behind Ramirez, in an expanding cone of dust, bucked three more Toyotas, an Army truck loaded with corrugated metal sheeting, and 14 armed, sweating American soldiers and sailors. Their improbable objective: reroof a school at a fly-speck nomad camp called Lahossa.

The bad guys were potential Islamic extremists. But anywhere, at this jaded stage in the global war on terror, was literally and metaphorically off the map: a remote African laboratory for the long anti-terror struggles of the future.

As the Bush administration draws to a close and prepares to hand the job of ending the conflicts in Iraq and Afghanistan to President-elect Barack Obama, few Americans may realize that another major U.S. military campaign is taking shape elsewhere on the globe—this time in the most obscure, lawless reaches of Africa.

The Pentagon recently unveiled AFRICOM, its historic new military command devoted exclusively to Africa—a sprawling continent of 1 billion people, roughly half of whom are Muslim, that has long been overlooked by Washington's strategic planners.

Disposable Youth in a Suspect Society

Truthout | President-elect Obama raised the issue of what kind of country young people would inherit if they lived to see the next century. The question provides an opening for taking the Obama administration seriously with regard to its commitment to young people. Young people need access to decent schools with more teachers; they need universal health care; they need food, decent housing, job training programs, and guaranteed employment. In other words, we need social movements that take seriously the challenge of dismantling the punishing state and reviving the social state so as to be able to provide young people not with incarceration and contempt, but with dignity and those economic, political, and social conditions that ensure they have a decent future. Surely, this is an issue that the Obama administration should be pushed to recognize and address. Dietrich Bonhoeffer, the great Protestant theologian, believed that the ultimate test of morality resided in what a society did for its children. If we take this standard seriously, American society has deeply failed its children and its commitment to democracy. The politics and culture of neoliberalism rest on the denial both of youth as a marker of the future and of the social responsibility entailed by an acceptance of this principle. In other words, the current crisis of American democracy can be measured in part by the fact that too many young people are poor, lack decent housing and health care, and attend decrepit schools filled with overworked and underpaid teachers. These youth, by all standards, deserve more in a country that historically prided itself on its level of democracy, liberty, and alleged equality for all citizens. We live in a historic moment of both crisis and possibility, one that presents educators, parents, artists, and others with the opportunity to take up the challenge of re-imagining civic engagement and social transformation, but these activities only have a chance of succeeding if we also defend and create those social, economic, and cultural conditions that enable the current generation of young people to nurture thoughtfulness, critical agency, compassion, and democracy itself.

Energy efficiency is the low-hanging fruit of the clean-energy revolution

McKinsey | The first step in the clean-energy revolution is to dramatically improve energy efficiency. Through a variety of measures ranging from better building efficiency and low-energy lighting to more fuel-efficient vehicles, we have the potential to cut world energy-demand growth by more than 64 million barrels of oil a day—equivalent to one and a half times current annual U.S. energy consumption.

Best of all, improvements in energy efficiency more than pay for themselves. We estimate that dramatically increasing energy efficiency would require annual investments of $170 billion over the next 13 years. But these investments would generate a return of well over $900 billion annually by 2020 through lower energy costs.

Just as one can measure labor productivity—the amount of output created per hour worked—one can measure the “carbon productivity” of an economy as the amount of output produced per metric ton of carbon dioxide and other equivalent greenhouse gases emitted into the atmosphere. If we are to meet the twin goals of reviving the economy and tackling climate change, then we need to dramatically boost the world's carbon productivity.

Today, carbon productivity is at $740 of gross domestic product (GDP) per metric ton of emissions. But if we are to continue to reduce poverty in the developing world, maintain growth in the developed world, and accommodate three billion more people on the planet by 2050, then world GDP will need to grow by at least 3 percent per year. Likewise, to avoid the potential nightmares of global warming, such as mass migrations from flooded cities and starvation due to drought, the scientific consensus is we need to cut carbon emissions by at least 50 percent from 1990 levels by 2050. Combining these targets means carbon productivity must reach $7,300 by 2050—a tenfold increase over today.

To make this more personal, the average citizen of a developed country emits 27 to 63 kilograms of carbon equivalents per day depending on where he or she lives. In order to minimize climate damage, that number needs to come down to less than 6 kilograms per day. To live on such a budget at today's levels of carbon productivity, one would be forced to choose between a taking 40-kilometer car ride, using air conditioning for the day, purchasing two new T-shirts (without driving to the shop), or eating two meals that included meat. In short, without a major boost in carbon productivity, stabilizing the climate would require a painful change in lifestyles in the developed world and the loss of hope for greater prosperity in the developing world.

A tenfold increase in carbon productivity sounds daunting, but it is a type of challenge that humankind has met before. U.S. labor productivity increased tenfold over a 125-year period from 1830 to 1955. We now need a clean-energy revolution on the same scale as the Industrial Revolution. But we probably have less than 40 years before emissions lead to irreversible damage. The clean-energy revolution has to happen three times faster than the Industrial Revolution did.

Decline and Breakup of U.S.

RIA Novosti | - A leading Russian political analyst has said the economic turmoil in the United States has confirmed his long-held view that the country is heading for collapse, and will divide into separate parts.

Professor Igor Panarin said in an interview with the respected daily Izvestia published on Monday: "The dollar is not secured by anything. The country's foreign debt has grown like an avalanche, even though in the early 1980s there was no debt. By 1998, when I first made my prediction, it had exceeded $2 trillion. Now it is more than 11 trillion. This is a pyramid that can only collapse."

The paper said Panarin's dire predictions for the U.S. economy, initially made at an international conference in Australia 10 years ago at a time when the economy appeared strong, have been given more credence by this year's events.

When asked when the U.S. economy would collapse, Panarin said: "It is already collapsing. Due to the financial crisis, three of the largest and oldest five banks on Wall Street have already ceased to exist, and two are barely surviving. Their losses are the biggest in history. Now what we will see is a change in the regulatory system on a global financial scale: America will no longer be the world's financial regulator."

When asked who would replace the U.S. in regulating world markets, he said: "Two countries could assume this role: China, with its vast reserves, and Russia, which could play the role of a regulator in Eurasia."

Asked why he expected the U.S. to break up into separate parts, he said: "A whole range of reasons. Firstly, the financial problems in the U.S. will get worse. Millions of citizens there have lost their savings. Prices and unemployment are on the rise. General Motors and Ford are on the verge of collapse, and this means that whole cities will be left without work. Governors are already insistently demanding money from the federal center. Dissatisfaction is growing, and at the moment it is only being held back by the elections and the hope that Obama can work miracles. But by spring, it will be clear that there are no miracles."

He also cited the "vulnerable political setup", "lack of unified national laws", and "divisions among the elite, which have become clear in these crisis conditions."

He predicted that the U.S. will break up into six parts - the Pacific coast, with its growing Chinese population; the South, with its Hispanics; Texas, where independence movements are on the rise; the Atlantic coast, with its distinct and separate mentality; five of the poorer central states with their large Native American populations; and the northern states, where the influence from Canada is strong.

He even suggested that "we could claim Alaska - it was only granted on lease, after all."

Is Obama's Energy Plan Enough?

Time | With the possible exception of Barack Obama's puppy-anticipating daughters, no one is more eagerly awaiting the incoming Administration than the leaders of the renewable-energy industries. President-elect Obama campaigned on the promise to spend $150 billion over the next 10 years to support alternative energy, like wind and solar, as well as the green jobs that the sector has the potential to create. At California Gov. Arnold Schwarzenegger's climate summit on Nov. 18, Obama, in taped remarks, reaffirmed that he would hold fast to those campaign promises, starting with mandatory caps on greenhouse gas emissions. "This is a crucial step forward," says Linda Church Ciocci, the executive director of the National Hydropower Association.

The problem is, it won't be enough. As ambitious as Obama's campaign promises were — at least compared to his predecessor's — the future state of global energy will demand government policies with a much longer reach, according to alternative-energy leaders. The International Energy Agency's (IEA) annual World Energy Outlook, released Nov. 12, projects that global energy demand will increase by 45% between 2006 and 2030 — and that $26 trillion in power-supply investments will be necessary simply to meet those needs. Barring radical changes in our energy policy — beyond what Obama has pledged — greenhouse gas emissions will rise 45% by 2030, and extreme global warming would be virtually unavoidable.

uh, quoting the IEA as authoritative in any manner, form, or fashion qualifies this entire article as a puff piece. Overall, it smacks of a special interest in search of a pre-emptive bailout, er, ah, I mean subsidy. This is NOT where the U.S. should invest its scant remaining capital to yield maximum return on energy investment.

Climate Change and British Politics

The Economist | Britain decides that climate change is too important to leave to the politicians. “GIVE me chastity and continence, but not yet,” Saint Augustine besought God more than a millennium ago. Those worried by global warming but unwilling to change their behaviour take a similar approach. Evidence of the damage that economic activity does to the planet is mounting, but given the cheapness and convenience of fossil fuels, the temptation to avoid tackling climate change for just another year (and another and another) is hard to resist. This is even truer as economic woes mount.

Britain’s government thinks it has a solution, and it is one that so far no other country has adopted. The approach is rather like that of a desperate dieter padlocking his pantry. If all goes according to plan, a climate-change bill will be passed next week that takes the power to set carbon-reduction goals away from politicians and enshrines them in law. A climate-change committee will recommend five-year carbon budgets for different parts of the economy, such as power generation, transport and manufacturing, with the ultimate goal of cutting emissions by 80% from their 1990 levels by the time 2050 rolls around.

Modelled partly on the Bank of England’s Monetary-Policy Committee, which was set up in 1997 to take interest-rate decisions out of the hands of ministers, the new Committee on Climate Change (now headed by Lord Turner, the head of Britain’s financial regulator and before that the author of important pension reforms) will publish on December 1st the first three carbon budgets, covering the period until 2022. Other countries may have more eye-catching ambitions than Britain (Sweden, for instance, aspires to phase out fossil-fuel use entirely), but nowhere else will the pledges have the force of law. Foreign governments and green groups are watching the British experiment with interest.

Is Natural Gas Drilling Endangering US Water Supplies?

Propublica | In July, a hydrologist dropped a plastic sampling pipe 300 feet down a water well in rural Sublette County, Wyo., and pulled up a load of brown oily water with a foul smell. Tests showed it contained benzene, a chemical believed to cause aplastic anemia and leukemia, in a concentration 1,500 times the level safe for people.

The results sent shockwaves through the energy industry and state and federal regulatory agencies.

Sublette County is the home of one of the nation's largest natural gas fields, and many of its 6,000 wells have undergone a process pioneered by Halliburton called hydraulic fracturing, which shoots vast amounts of water, sand and chemicals several miles underground to break apart rock and release the gas. The process has been considered safe since a 2004 study (PDF) by the Environmental Protection Agency found that it posed no risk to drinking water. After that study, Congress even exempted hydraulic fracturing from the Safe Drinking Water Act. Today fracturing is used in nine out of 10 natural gas wells in the United States.

Over the last few years, however, a series of contamination incidents have raised questions about that EPA study and ignited a debate over whether the chemicals used in hydraulic fracturing may threaten the nation's increasingly precious drinking water supply.

If Only Life Would Imitate Art.....,

What would happen if companies stopped hiding problems from customers and government stopped hiding problems from citizens? What if customers and citizens were tapped to become resources for problem solving?

"EVE Online tries the World of Democracycraft experiment

"A recent insider-meddling scandal inside the space-merchant game EVE Online prompted the creation of a democratically elected player council called the Council of Stellar Management (CSM). This newly constituted democratic institution is charged with helping the game developers balance out fun with fairness. I've often wondered whether democratic player-groups can vote for more fun, even when "fun" includes making the game harder and more frustrating at times. .. "

Sadly, open source design is still regarded by power-holders with fear and contempt, but these goings-on in virtual nerd world compel one to wonder How much decision making can be democratized? The comment thread spawned by this post on American illiteracy got me thinking about this topic.

U.S. car companies lobbied the government to give large vehicles tax advantages for business use. The car companies "engineered" (or would that be gerrymandered?) the demand for SUVs that has proven to be their undoing. Would car buying consumers have voted for such lobbying?

Competitive advantage would depend on transparency, accountability, and accurate information rather than propaganda. If these virtual world methods were adopted by one successful business, how long before the public would move to have them applied to functions of government?

Decision Neuroscience

This will not be the first time you've heard this from me, I've variously addressed it hereabouts under the rubrics neuroeconomics or dopamine hegemony - but this morning my very good friend Arnach hit me up back channel with a morsel supportive of the theory that global human governance boils down to the science of stimulating and controlling dopaminergy in the individual brain.

From the Stanford Storybank we have This is Your Brain on Bargains.

Scientific inspiration can derive from the most mundane experience. Archimedes was said to have figured out how to compute volume in his bathtub. When Uzma Khan had her eureka moment, she was sprawled on her couch, just back from a shopping mall where she had gone to avoid working on her dissertation.

Khan—then at Yale, now an assistant professor of marketing at the Graduate School of Business—knew all about the supposed levers of consumer behavior: supply, demand, advertising, discounting. Traditionally, business theorists described consumer behavior as being based on rational decisions about value and price. But as Khan looked at the shopping bags strewn around her apartment she realized that the conventional wisdom was, well, bankrupt. She was sure that her buying decisions had much less to do with price than they did her frayed nerves. She had gone shopping to feel better. Once home, the thrill was gone. “I looked at all that stuff, all those bags, and I thought, 'I don't need this stuff. I'm going to take most of it back. What was I thinking?'”

Khan's professional focus today is answering that question—what are we thinking when we go shopping? She is one of a growing number of researchers at Stanford and elsewhere working on consumer mysteries: Why are our needs and wants so disconnected? Why do people dig themselves into debt from foolish spending? Why do our brains perceive expensive products as superior? And what are the biological bases for the pleasures that shopping or even the anticipation of shopping can unleash?

So simple, elegant, and obvious. Selective governance via the natural tendency of the brain's neuronal circuits to Do What They Do..., what could be easier, more powerful, and more durable than that? The basic fact is that humans are routinely exploited by those with the wherewithal to "engineer" values in the outside world and a little knowledge of the workings of the "inside" world.

Pakistanis Fear the U.S., Too

NYTimes | A redrawn map of South Asia has been making the rounds among Pakistani elites. It shows their country truncated, reduced to an elongated sliver of land with the big bulk of India to the east, and an enlarged Afghanistan to the west.

That the map was first circulated as a theoretical exercise in some American neoconservative circles matters little here. It has fueled a belief among Pakistanis, including members of the armed forces, that what the United States really wants is the breakup of Pakistan, the only Muslim country with nuclear arms.

“One of the biggest fears of the Pakistani military planners is the collaboration between India and Afghanistan to destroy Pakistan,” said a senior Pakistani government official involved in strategic planning, who insisted on anonymity as per diplomatic custom. “Some people feel the United States is colluding in this.”

That notion may strike Americans as strange coming from an ally of 50 years. But as the incoming Obama administration tries to coax greater cooperation from Pakistan in the fight against militancy, it can hardly be ignored.

This is a country where years of weak governance have left ample room for conspiracy theories of every kind. But like much such thinking anywhere, what is said frequently reveals the tender spots of a nation’s psyche. Educated Pakistanis sometimes say that they are paranoid, but add that they believe they have good reason.

Pakistan, a 61-year-old country marbled by ethnic fault lines, is a collection of just four provinces, which often seem to have little in common. Virtually every one of its borders, drawn almost arbitrarily in the last gasps of the British Empire, is disputed with its neighbors, not least Pakistan’s bitter and much larger rival, India.

These facts and the insecurities that flow from them inform many of Pakistan’s disagreements with the United States, including differences over the need to rein in militancy in the form of Al Qaeda and the Taliban.

Flux in the BRIC

NYTimes | “Russia’s elites, including President Medvedev, look on China’s rising diplomatic and economic successes in Latin America and in Africa with envy,” said Stephen Kotkin, the director of Russia studies at Princeton University. “They also perceive an opportunity, much exaggerated, to send the U.S. a message in its supposed backyard.”

But Mr. Medvedev faces a hard sell in the region. In Cuba there are lingering suspicions over Russian intentions, as the Cuban economy collapsed when the Soviets withdrew in the 1990s, as well as a reluctance to alienate an incoming Obama administration that might push to end the trade embargo.

Brazil, Latin America’s largest country, which also places a high priority on relations with an Obama administration, wants to engage Russia not as a source of weapons or military assistance, but as an equal partner.

“We are not interested in buying defense products off the shelf,” said Roberto Mangabeira Unger, Brazil’s minister of strategic affairs and the architect of a new military strategy set to be officially unveiled in December.

“Unlike other South American countries we don’t go around buying things, and we are not interested in some kind of balance-of-power politics to contain the United States,” said Mr. Mangabeira Unger, a former Harvard law professor who taught Mr. Obama when he was at Harvard Law School. “We have friendly relations with the United States, and with the incoming administration intend to make them even more friendly.”

By contrast in Venezuela, itself battered by falling oil prices, Mr. Medvedev can expect a warm welcome. President Hugo Chávez has long sought closer ties, traveling to Russia seven times and forging deals to buy more than $4 billion in arms. Until recently, however, Russia showed little interest in expanding ties with Venezuela beyond weapons sales and a handful of energy deals.

The Pakistan Test

NYTimes | While there are no easy solutions for the interlinked catastrophes unfolding in Pakistan and Afghanistan, there are several useful steps that we in the West can take to reduce the risk of the region turning into the next Somalia.

First, we should slow the financial flow to Pakistan’s government and military. If the government wants to stop the Talibanization of Pakistan, its greatest need isn’t money but the political will to stop sheltering Taliban leaders in the city of Quetta.

Second, we should cut tariffs on Pakistani agricultural and manufactured products to boost the economy and provide jobs. We should also support China on its planned export-processing zone to create manufacturing jobs in Pakistan.

Third, we should push much harder for a peace deal in Kashmir — including far more pressure on India — because Kashmir grievances empower Pakistani militants.

Fourth, let’s focus on education. One reason the country is such a mess today is that half of all Pakistanis are illiterate.

Pennyland - Echoes of the Great Depression

Up from the comments, a poignant movie by Frank Thomas inspired by "Pennyland" a song written by his brother, Eddie Thomas featuring Depression Era photographs from the Library of Congress and audio excerpts from Franklin D. Roosevelt's 1933 inaugural address. Thanks for stopping by Frank.

World's Biggest Loser.....,

Shape of Things to Come?

John Maynard Keynes had the answer to the crisis we’re now facing; but it was blocked and then forgotten. Poor old Lord Keynes. The world’s press has spent the past week blackening his name. Not intentionally: most of the dunderheads reporting the G20 summit which took place over the weekend really do believe that he proposed and founded the International Monetary Fund. It’s one of those stories that passes unchecked from one journalist to another.

The truth is more interesting. At the Bretton Woods conference in 1944, John Maynard Keynes put forward a much better idea. After it was thrown out, Geoffrey Crowther - then the editor of the Economist magazine - warned that “Lord Keynes was right … the world will bitterly regret the fact that his arguments were rejected.”(1) But the world does not regret it, for almost everyone - the Economist included - has forgotten what he proposed.

He proposed a global bank, which he called the International Clearing Union. The bank would issue its own currency - the bancor - which was exchangeable with national currencies at fixed rates of exchange. The bancor would become the unit of account between nations, which means it would be used to measure a country’s trade deficit or trade surplus.

By George Monbiot. Published in the Guardian 18th November 2008