mathematics and real-world knowledge

RWER | Several articles on the misuse of mathematics in economics have already appeared in this journal. They all denounce this excess and list numerous weaknesses of liberal economics and theoretical economics that are due to, or at least related to, too much math.

This subject is worthy of further comment because it seems to me that these articles have mostly described symptoms, albeit a great many symptoms, but have barely begun to diagnose the causes and have given no hint of the kind of knowledge that would enable us to escape this no-man’s-land of using a little math but not too much.

The most recent contribution, by Michael Hudson (RWER No. 54), focuses on the important issues that escape mathematical models, such as the structural and historical evolution of societies, prevention of crises, psychological phenomena, long-term thinking. It emphasizes the normative nature of marginal analysis and equilibrium models, and denounces rough quantifications such as GNP and the staggering increase in debt. He acknowledges Marx’s openness to the big issues in society that are currently excluded from political debate by an economic philosophy that tries to impress its opponents with sophisticated mathematics. These questions are analyzed thoroughly. On several occasions, however, one feels that the criticism is that the math is being misused and should be developed in some other direction (e.g. a statistical analysis of the financial tendencies that polarize wealth and income, or a study of the positive feedback mechanisms, etc.). This leaves a certain dissatisfaction — on a philosophical level — a feeling that the problem of excess math has not been addressed in all its aspects.

My thesis is that economics adds its own particular difficulties to these issues (because of its status as “conseiller du prince”, and because through teaching it gives useful professional skills, etc.) and that things become clearer when we step back and frame the question in terms of knowledge in general. As the reader will see, this enables us to trace, with great epistemological force, the direction of a different type of knowledge. This allows us to escape from the addiction of mathematization while building a better quality knowledge.

We will take in a number of examples in economics and finance, but the fact remains that economics has many distinctive characteristics, as several authors have noted, which tend to prevent a reasoned consideration of its social function. Consequently there remain several points that will need to be developed further.

u.s. solar company bankruptcies a boon for china

NYTimes | The bankruptcies of three American solar power companies in the last month, including Solyndra of California on Wednesday, have left China’s industry with a dominant sales position — almost three-fifths of the world’s production capacity — and rapidly declining costs.

Some American, Japanese and European solar companies still have a technological edge over Chinese rivals, but seldom a cost advantage, according to industry analysts.

Loans at very low rates from state-owned banks in Beijing, cheap or free land from local and provincial governments across China, huge economies of scale and other cost advantages have transformed China from a minor player in the solar power industry just a few years ago into the main producer of an increasingly competitive source of electricity.

“The top-tier Chinese firms are kind of the benchmark now,” said Shayle Kann, a managing director of solar power studies at GTM Research, a renewable energy market analysis firm based in Boston. Pricing of solar equipment is determined by the Chinese industry, he said, “and everyone else prices at a premium or discount to them.”

Besides Solyndra, the other two American manufacturers that filed for bankruptcy in August were Evergreen Solar, of Massachusetts, and SpectraWatt, a New York company. Another company, BP Solar, halted manufacturing at its complex in Frederick, Md., last spring.

Those bankruptcies and closings represent almost one-fifth of the solar panel manufacturing capacity in the United States, according to GTM Research.

Solyndra and Evergreen in particular suffered because they pursued unusual technologies whose competitiveness depended on their using less polysilicon, the main material for solar panels. That has become less important because polysilicon prices have tumbled more than 80 percent in the last three years as output has caught up with demand.

Analysts say that two American companies remain strongly placed. One is First Solar, the largest American manufacturer, which uses a different technology but has its biggest factory in Malaysia. The other, SunPower, is much smaller but is an industry leader in the efficiency with which its panels convert sunlight into electricity, so that they sell at a premium to Chinese panels.

um..., I don't use'em for a dayyum thing anymore

Video - USPS fails and shuts down this winter.

FoxNews | The head of the U.S. Postal Service said in an interview that the organization will default -- perhaps as early as this winter -- unless Congress intervenes.

Postmaster General Patrick Donahoe's comments reflect a well-known reality that the Postal Service is in dire financial straits. The rise of email and online bill-paying has steadily eroded its profits over the years while labor costs soar. Donahoe is calling for a host of changes, including the elimination of Saturday delivery, to close a deficit projected to top $9 billion this year.

But he said Congress needs to step in to help keep the service alive.

"Our situation is extremely serious," he told The New York Times. "If Congress doesn't act, we will default."

According to The New York Times, the service will be unable to make a $5.5 billion retiree health care payment later this month and is expected to run out of money to pay workers and other expenses early next year. This could force a shutdown in delivery.

Averting that outcome doesn't necessarily mean a bailout. One thing the service wants from Congress is a law to effectively nullify a contract prohibition on layoffs -- part of Donahoe's plan involves laying off 120,000 workers, but he needs Congress' help.

Some in Congress are also looking at letting the organization recover billions in supposedly overpaid pension payments.

nato institutes a racialized eurafrican union

Video - Gaddafi was a stalwart against the eurafrican union

newamericanmedia | Rushing into the center of Tripoli, jubilant Libyan rebels shouted: "We've got kinky head!" The slur was directed at Seif Al-Islam, the dark-complexioned son of strongman Muammar Gaddafi, who as it turns out had evaded capture. Since the start of the rebellion in February, the Arab militants of the Benghazi-headquartered National Transitional Council (NTC) have repeatedly perpetrated overt acts of racial violence, including mob lynching and physical mutilation of unarmed black Libyans, indigenous Berbers and Tuareg nomads among them.

The NATO-led multinational intervention force, known as Operation Unified Protector, has tolerated heinous race crimes that would be severely prosecuted and punished if they had occurred in Paris, London, Washington D.C. and Ottawa. The unwillingness of NATO to stop or even acknowledge the racist terror tactics puts into question the underlying strategic objective behind the intervention - a geopolitical project known as the Mediterranean Union (MU).

The hate crimes bring an uneasy and practically unspeakable issue to the world's attention - Arab racism. It is simplistic and historically incorrect to attribute this variant of racism to Arab slave trading, even though most of the raiding groups who captured African villagers for colonial plantations in the Americas were comprised of Arabs. Europeans and white Americans were also enslaved by North African pirates, a practice that provoked the United States to wage the two Barbary Wars in the early 1800s. In contrast to the race-conscious European and American plantation owners, the Arab world then perceived bondage as simply a category of human capital, irregardless of the captives’ race.

At the level of household and community, intermarriage with persons of African ancestry has not been a major problem throughout most of the Arab world, so long as the spouse belongs to the Islamic faith and follows the customary rites and habits. Sharply contrasting with America's discriminatory segregation policy during his lifetime, this is the Islamic multi-racialism that Malcolm X observed in Mecca.

The Race Card

Arab racial attitudes, therefore, cannot be simplistically reduced to skin tone but are more an issue related to culture, especially the residual beliefs and customs of so-called "kaffir" or pagans. Ever since the Umayyad invasion that swept across North Africa in the 7th century, the Arabs encountered, subdued and incorporated an array of tribes in the Saharan region, or Magreb. Black Africans who adopted the totality of Arabic cultural behavior integrated with relative ease into the dominant society, many ascending to high rank. Those who stubbornly held to their "superstitious" beliefs in native deities and matriarchal customs, including many Berbers and the majority of the Tuareg, were deemed Africans and not Arabs.

These ill-defined racial divisions helped European colonizers promote institutional discrimination during the 19th and early 20th centuries. The biases of French, Italian and British colonial administrators were imposed on the Semitic peoples - Arabs and Jews of North Africa and the Levant. The stress on skin tone - white standing for civilization and black for savagery - was already well-established in Europe and North America. Color-based images were deeply ingrained, for example, in a long-haired Nordic Jesus of Nazareth, as opposed to the "kinky head" that he was likelier to have been, versus swarthy despots and tanned Saracen pirates. European scholars, writers and artists recast the history of North Africa into racial stereotypes, portraying light-skinned pharaohs when, in fact, most ancient statues reveal African facial and physical features.

Skin tone affected a Semitic individual’s chances of employment and career promotion under European colonialism. The lingering sense of insecurity is still reflected, for instance, when some - not all - of my Arab friends try to pass themselves off as whites inside posh lounges in Berlin or even Dubai, an understandable guise in our present context of the war on terrorism. Prejudices of the master are adopted by the servants, and "second-class whites" can often be more vicious and vulgar in their racism. Extreme examples can be seen in the propaganda posters of the Maronite Christian militias of Lebanon, presenting themselves as lily-white crusaders against the dark hordes.

Son of Africa

More than any other leader in the region, Colonel Muammar Gaddafi challenged this deplorable legacy of European colonialism and Arab conquest. Proudly adopting sub-Saharan- style robes and turbans and embracing the indigenous cultures of the continent of his birth, he declared Libya to be an inseparable part of Africa. The Libyan leader took the identity issue a giant step further, financing and arming Africans to fight European supremacy and, in Nimery's Sudan, against domination by the Gulf states.

If there is one thing that the second-tier "white" of Arab or Israeli descent disdains more than a black African it is, of course, the "kaffir lover," a charge often leveled against Gaddafi. The race hatred is so intense that even American diplomats have had to warn the Benghazi rebels against committing massacres. The warning is being scoffed at by the gathered clan of special-forces commandos, warships and air forces from 19 European, North American and Mideast nations, which are launching indiscriminate attacks on Libyan cities.

nato just destroyed africa's most developed country

Video - Watching NATO crimes against humanity

InformationClearinghouse | Some years ago, in the Indian site www.bharat-rakshak.com, this columnist had written of the NATO militaries as resembling an army of simians. Such a force - if let loose within a confined space – can create immense damage, but are unable to clean up the resultant mess. This is precisely what the world has witnessed in Iraq. Despite more than a decade of sanctions that directly resulted in nearly a million extra deaths during that period ( because of shortages created by the UN-approved measures), the regime of Saddam Hussein was able to provide food, energy and housing to the people of Iraq, whereas eight years after “liberation” by key NATO members, the country and its population are worse off than before the 2003 invasion that led to the execution of Saddam Hussein. As for Afghanistan, after a decade of the world’s most modern military force fighting against a ragtag band of insurgents, more than a third of the country is back in the hands of the Taliban, while a fifth of the rest is on the brink of a similar fate. As a consequence of its failure to subdue this force, NATO is desperately clutching at plans for engaging the “moderate Taliban”, an oxymoron if ever one was created.

Serbia has yet to recover from its brief burst of battle with NATO, and now Libya has joined the lengthening list of countries devastated by the attentions of NATO. Clearly, the top brass in a military alliance designed to do battle in Europe against the USSR were reluctant to close shop. They have therefore redesigned NATO as a military instrument with multiple uses, especially against “asymmetric threats”, a term which refers to countries that have ramshackle militaries. Both Saddam Hussein and Moammar Gaddafy followed the dictates of the NATO powers in surrendering whatever WMD was in their possession, unlike Syria and North Korea, two countries that have been left undisturbed by NATO as a consequence. Clearly, military planners within the alliance are ready for action only against those rivals that have had their conventional capabilities degraded to the point at which they do not represent any significant risk against the alliance. Had George W Bush and Tony Blair truly believed their own rhetoric about Saddam Hussein having WMD, they would never have sent their armies into Iraq the way they did.

As mentioned in these columns, Gaddafy’s fate got sealed when he accepted the advice of his Europe-dazzled sons to disarm and place the survival of his regime in the hands of NATO. Since 2003, Muammar Gaddafy dismantled his WMD program, synchronised his intelligence services with that of NATO and generally accepted each of the prescriptions handed over to him. Had NATO been an alliance that respects reciprocity, all this ought to have made NATO turn as blind an eye to his battle with sections of the population as we have seen in the case of Bahrain, where the ruling family has been given a free hand to sort out the situation. Instead, the situation changed when Nicholas Sarkozy was informed by French banks that Colonel Gaddafy may withdraw the immense bank deposits of Libya from them to institutions in China, and when he learnt that several contracts that French enterprises were expecting to come to them would vanish because Gaddafy wanted to spend less on French military and other toys and more on social services. Libya had to be made an example of, lest other Arab governments think of shifting their money elsewhere than within the NATO bloc as a consequence of the loss of $1.3 trillion by the GCC and its people alone because of the financial fraud perpetrated in 2008 by banks and other financial entities headquartered within the NATO bloc.

These days, companies based within NATO are finding it difficult to retain the monopoly position they have enjoyed, sometimes for generations. In particular, Chinese companies are challenging them in numerous markets, as are companies based elsewhere in Asia, including within South Korea and India. As a consequence, they now rely on military force to retain their privileges. This has been illustrated with commendable transparency in the case of Iraq and Libya. In the latter case, even though the fumes of battle have not ceased (and are unlikely to), oil companies such as ENI and Total are hard at work figuring out the assets they can seize because of the local victories of the Sarkozy-appointed “National Transitional Council”. Interestingly, even though the NTC is a creation of Paris, the UN has accepted it as the legitimate government of Iraq. Indeed,in the 21st century the UN seems to have regressed into the period between 1919 and 1939,when the League of Nations awarded “mandates” to dominant countries that permitted them to rule weaker ones. In the past decade, similar mandates have been proferred in the case of Iraq, Kosovo and Afghanistan. In the case of Libya, President Sarkozy’s takeover of the Libyan state via the creation of the NTC has been similarly legitimized by the UN in an astonishing abdication of principle.

However, just as in other locations, facts on the ground may not follow the script favoured by NATO. In the case of Libya, this columnist has warned for five months that the NATO intervention would only result in civil war and in the steady destruction of the infrastructure that made Libya one of the more prosperous countries in the region. All this is at risk today, as chaos descends in the form of armed gangs set loose by NATO across the country. Not that there is ever any chance of those responsible for such a catastrophe being held accountable by so-called “international” bodies, most of which are now firmly in the control of the NATO powers in a way that their own economies are not. Over the past decade, tens of thousands of civilian deaths have resulted from NATO operations, without even a mild protest from the International Court or the Human Rights Council. Such inaction is leading to the same loss of respect for the UN system as took place in the past with the League of Nations, which became seen as being controlled by a small group for their own purposes.

Whether it is Libya or any other country, each has the right to develop its societal dynamic in its own way. Unless a country poses a threat to others, the way Talban-controlled Afghanistan did, it is not legitimate target for international action. In the case of Libya, since 2003 Colonel Gaddafy disarmed his military of WMD and fully cooperated with the US-led War on Terror. His fate has become a lesson to others who may have been tempted to follow in his path of conciliation with NATO. Small wonder that the other regimes in the sights of NATO - Syria and Iran in particular - are in no hurry to follow the Libyan example. Rather than seek to finish off a leader who buried the hatchet publicly and fully the way Gaddafy did, NATO would have been better advised to show its magnanimity and its willingness to keep agreements in good faith. That would have acted as an incentive for Syria, Iran and even North Korea to follow suit, thereby making the globe a safer place. Today, all three states - understandably – have zero faith in the bona fides of the NATO powers, and as a consequence are each going their own way. Combine this with the economic desolation seen within NATO ( much of which has been caused by the huge spike in military spending caused by foreign adventures), and overall even the medium-term prognosis for NATO is dim, despite the smiles of congratulation at the advance of NATO proxies into Tripoli.

Unlike during the Vietnam war, when the Pentagon extensively sourced its procurement from Asia, the Bush-Cheney team sought to give US entities a monopoly over the supply of the items needed, even items as militarily inconsequential as toothpaste. The result of such an autarchic policy has been a big increase in spending, with the US alone spending more than a trillion dollars in its wars with Iraq and Afghanistan. Indeed, we have seen this use of the state machinery to block competition across several sectors. The EU, for example, has banned Indian pharmaceuticals from its market, despite the low cost and high quality of medicines produced in India. Just now, the EU has banned Samsung hi-tech products. A time will come when Asia bans German cars and French defense equipment in retaliation for the frequent bans on Asian products on specious grounds. The US and the EU cannot protect their way out of economic trouble. They need to give their citizens access to the benefits of a global market, rather than break every canon that they have been preaching for decades. As for NATO, it will soon become clear that while it may be possible to defeat a ramshackle force with the massive use of airpower, that may not translate into monopoly privileges over Libyan oil reserves. Should China or India come up with better terms than Italian or French companies, the people of Libya will ensure that their government act in a way that protects their interests, rather than only those of NATO. The use of military power for commercial advantage ought to have vanished when the 19th century did. Its reappearance in Iraq and Libya is a worrisome sign that NATO has not learnt the lessons of history.

the decade's biggest scam

commondreams | The Los Angeles Times examines the staggering sums of money expended on patently absurd domestic "homeland security" projects: $75 billion per year for things such as a Zodiac boat with side-scan sonar to respond to a potential attack on a lake in tiny Keith County, Nebraska, and hundreds of "9-ton BearCat armored vehicles, complete with turret" to guard against things like an attack on DreamWorks in Los Angeles. All of that -- which is independent of the exponentially greater sums spent on foreign wars, occupations, bombings, and the vast array of weaponry and private contractors to support it all -- is in response to this mammoth, existential, the-single-greatest-challenge-of-our-generation threat: ["The key to sustaining this Security State bonanza," writes Greenwald, "is keeping fear levels among the citizenry as high as possible... and that is accomplished by fixating even on minor and failed attacks, each one of which is immediately seized upon to justify greater expenditures, expansion of security measures, and a further erosion of rights." (Wikipedia)] "The key to sustaining this Security State bonanza," writes Greenwald, "is keeping fear levels among the citizenry as high as possible... and that is accomplished by fixating even on minor and failed attacks, each one of which is immediately seized upon to justify greater expenditures, expansion of security measures, and a further erosion of rights." (Wikipedia)

"The number of people worldwide who are killed by Muslim-type terrorists, Al Qaeda wannabes, is maybe a few hundred outside of war zones. It's basically the same number of people who die drowning in the bathtub each year," said John Mueller, an Ohio State University professor who has written extensively about the balance between threat and expenditures in fighting terrorism.

Last year, McClatchy characterized this threat in similar terms: "undoubtedly more American citizens died overseas from traffic accidents or intestinal illnesses than from terrorism." The March, 2011, Harper's Index expressed the point this way: "Number of American civilians who died worldwide in terrorist attacks last year: 8 -- Minimum number who died after being struck by lightning: 29." That's the threat in the name of which a vast domestic Security State is constructed, wars and other attacks are and continue to be launched, and trillions of dollars are transferred to the private security and defense contracting industry at exactly the time that Americans -- even as they face massive wealth inequality -- are told that they must sacrifice basic economic security because of budgetary constraints.

colonial libyan carve-up council met in paris...,

uruknet | The "Friends of Libya" conference held in Paris Thursday signaled the beginning of the imperialist carve-up of the oil-rich North African country.

Jointly chaired by French President Nicolas Sarkozy and British Prime Minister David Cameron, the conference included participation by those countries which provided the fire-power under the umbrella of NATO and using a United Nations resolution as a cover to bring down the government of Colonel Muammar Gaddafi in a six-month war for "regime change." These include the US, France, Britain, Italy and Qatar. All of them are jockeying to reap the greatest possible return on their "investment" of bombs and missiles that have claimed thousands of lives and left much of Libya’s infrastructure in ruins.

Also attending will be Germany, Russia, China, India and Brazil, which abstained on the UN Security Council resolution utilized as a legal fig leaf for the colonial-style war. These countries all fear that their significant investments and deals in Libya will be lost to the intervening Western powers.

In all, the conference included 31 heads of state, 11 foreign ministers and the leaders of the United Nations, NATO and the Arab League, along with the chief figures in the NTC, Justafa Abdul-Jalil, who until February was Gaddafi’s justice minister, and Mahmoud Jibril, a free-market economist who was the Gaddafi regime’s point man on attracting foreign investment.

On the eve of the conference, President Sarkozy cast the meeting in lofty terms, telling a gathering of French ambassadors in Paris that it would "turn the page on dictatorship and combat to open a new era of cooperation with a democratic Libya."

As Sarkozy spoke, however, combat was very much continuing in Libya, with NATO warplanes carrying out fresh bombardments of the coastal city of Sirte, a stronghold of Gaddafi loyalists, and Bani Walid, a desert town to the west, which is also under control of forces supporting the ousted regime. As the NATO-led rebels continued their siege of the two cities, the NTC extended until September 10 the deadline for its ultimatum for the residents of Sirte to surrender or face an all-out military assault. NATO’s strategy may be to starve the city into submission.

Meanwhile, reports of massacres and atrocities carried out by the guardians of the new "democratic Libya" continue to mount, many of them directed against the large numbers of sub-Saharan African migrant workers who have been killed, abused and detained solely on the basis of the color of their skin.

The "friends" came to Paris not to discuss aid to Libya, but rather the lifting of economic sanctions imposed under the Gaddafi regime and the unfreezing of Libyan assets in foreign banks, measures designed to get money and resources flowing out of the North African country

On the day of the summit, the French daily Liberation published the copy of a letter written in Arabic, purportedly from a representative of the Benghazi-based National Transitional Council, promising to cede to France 35 percent of its oil in return for its support. The Sarkozy government played the leading role in securing the UN resolution last March and got the jump on its NATO allies by ordering French air strikes before the Western alliance as a whole began bombarding the country.

The letter, dated April 3, states: "With regard to the oil agreement struck with France as a token of this Council’s gratitude, at the London summit, we, in our capacity as legitimate representative of Libya, have delegated to brother Mahmud [Shammam, the NTC’s media minister] the power to sign this agreement allocating 35 percent of total crude oil to the French in exchange for its total, permanent backing for our Council."

The letter, which also asked for France to expedite arms deliveries, was addressed to the emir of Qatar, the Persian Gulf sheikdom that has acted as a liaison between the NTC and the Western powers, with a copy to Amr Moussa, the Arab League secretary general.

Quoting an earlier statement of Sarkozy insisting that France was acting in accordance with a "universal conscience" simply to "protect the civilian population," Liberation comments: "Be that as it may, the French oil corporations might benefit amply from the military campaign."

selective colonial wars for control of key resources..,

craigmurray | There is no cause to doubt that, for whatever reason, the support of the people of Sirte for Gadaffi is genuine. That this means they deserve to be pounded into submission is less obvious to me. The disconnect between the UN mandate to protect civilians while facilitating negotiation, and NATO’s actual actions as the anti-Gadaffi forces’ air force and special forces, is startling.

There is something so shocking in the Orwellian doublespeak of NATO on this point that I am severely dismayed. I suffer from that old springing eternal of hope, and am therefore always in a state of disappointment. I had hoped that the general population in Europe is so educated now that obvious outright lies would be rejected. I even hoped some journalists would seek to expose lies.

I was wrong, wrong, wrong.

The “rebels” are actively hitting Sirte with heavy artillery and Stalin’s organs; they are transporting tanks openly to attack Sirte. Yet any movement of tanks or artillery by the population of Sirte brings immediate death from NATO air strike.

What exactly is the reason that Sirte’s defenders are threatening civilians but the artillery of their attackers – and the bombings themselves – are not? Plainly this is a nonsense. People in foreign ministries, NATO, the BBC and other media are well aware that it is the starkest lie and propaganda, to say the assault on Sirte is protecting civilians. But does knowledge of the truth prevent them from peddling a lie? No.

It is worth reminding everyone something never mentioned, that UNSCR 1973 which established the no fly zone and mandate to protect civilians had

“the aim of facilitating dialogue to lead to the political reforms necessary to find a peaceful and sustainable solution;”

That is in Operative Para 2 of the Resolution

Plainly the people of Sirte hold a different view to the “rebels” as to who should run the country. NATO have in effect declared being in Gadaffi’s political camp a capital offence. There is no way the massive assault on Sirte is “facilitating dialogue”. it is rather killing those who do not hold the NATO approved opinion. That is the actual truth. It is extremely plain.

I have no time for Gadaffi. I have actually met him, and he really is nuts, and dangerous. There were aspects of his rule in terms of social development which were good, but much more that was bad and tyrannical. But if NATO is attacking him because he is a dictator, why is it not attacking Dubai, Bahrain, Syria, Burma, Zimbabwe, or Uzbekistan, to name a random selection of badly governed countries?

“Liberal intervention” does not exist. What we have is the opposite; highly selective neo-imperial wars aimed at ensuring politically client control of key physical resources.

Wars kill people. Women and children are dying now in Libya, whatever the sanitised media tells you. The BBC have reported it will take a decade to repair Libya’s infrastructure from the damage of war. That in an underestimate. Iraq is still decades away from returning its utilities to their condition in 2000.

I strongly support the revolutions of the Arab Spring. But NATO intervention does not bring freedom, it brings destruction, degradation and permanent enslavement to the neo-colonial yoke. From now on, Libyans like us will be toiling to enrich western bankers. That, apparently, is worth to NATO the reduction of Sirte to rubble.

taxpayers bent-over big-time in solyndra bankruptcy...,

Bloomberg | The Obama administration let $385 million in taxpayer support for Solyndra Inc. take a back seat to funds from new investors in an unsuccessful effort to keep the solar-panel manufacturer operating.

The Energy Department decided the January refinancing represented the “highest probable net benefit” for the government, according to a government document obtained by Bloomberg News. Investors provided the company $75 million that became senior debt, ahead of all but $150 million of the federal government’s stake.

Solyndra said on Aug. 31 that it will file for bankruptcy reorganization next week in Wilmington, Delaware. The administration’s agreement to subordinate the government aid to new investment may add fuel to criticism by Republicans who have said President Barack Obama spent too much money pushing a favored company in the name of green energy.

“Solyndra is just the latest casualty of the Obama administration’s failed stimulus,” Republican Representatives Fred Upton of Michigan, chairman of the House Energy and Commerce Committee, and Cliff Stearns of Florida said in an Aug. 31 statement. “We smelled a rat from the onset,” they said of the backing for Solyndra.

The company is evaluating options including selling itself or licensing its technology, David Miller, a spokesman for the closely held company, said this week. The company suspended operations, and about 1,100 full-time and temporary employees have been dismissed.
Mounting Troubles

Should the company be liquidated, $385 million owed to the U.S. will be subordinated to the $75 million invested this year, according to the document dated Jan. 3.

Miller didn’t return a call and e-mail sent outside business hours seeking comment on the refinancing agreement.

At the time of the January refinancing, the government had already advanced $460 million in loan guarantees and decided to continue investing in an effort to fend off threatened bankruptcy.

The document traces Solyndra’s mounting financial troubles and the Obama administration’s decision to maintain its bet on the future of the Fremont, California-based company.

By December 2010, “Solyndra had only about a month of cash on hand and faced bankruptcy absent continued funding” from the department, according to the papers.

After “a due-diligence effort” to “determine if the company still had a viable business,” the Energy Department concluded it “believes that the restructuring plan represents the best possible course of action to achieve the highest return on its invested capital.”
Liquidation Value

The company’s liquidation value of its collateral was $91 million to $99 million in December, before the refinancing, which would have provided less than a 22 percent return to the government, the document shows.

By subordinating $385 million of the government loan to $75 million from investors, the government calculated that Solyndra’s conservative enterprise value this year would be $240 million to $360 million. At what it considered a more traditional valuation multiple, the government saw the value as $480 million.

The company had tapped into the loan guarantees offered by the Energy Department to build a photovoltaic panel facility and help add 1,000 jobs, according to the papers.

three things that must happen...,

Video - Bob Marley Revolution

Alternet | Transforming the United States into something closer to a democracy requires: 1) knowledge of how we are getting screwed; 2) pragmatic tactics, strategies, and solutions; and 3) the “energy to do battle.”

The majority of Americans oppose the corporatocracy (rule by giant corporations, the extremely wealthy elite, and corporate-collaborator government officials); however, many of us have given up hope that this tyranny can be defeated. Among those of us who continue to be politically engaged, many focus on only one of the requirements—knowledge of how we are getting screwed. And this singular focus can result in helplessness. It is the two other requirements that can empower, energize, and activate Team Democracy— a team that is currently at the bottom of the standings in the American Political League.

1. Knowledge of How We are Getting Screwed
Harriet Tubman conducted multiple missions as an Underground Railroad conductor, and she also participated in the Union Army’s Combahee River raid that freed more than 700 slaves. Looking back on her career as a freedom fighter, Tubman noted, “I freed a thousand slaves. I could have freed a thousand more if only they knew they were slaves.” While awareness of the truth of corporatocracy oppression is by itself not sufficient to win freedom and justice, it is absolutely necessary.

We are ruled by so many “industrial complexes”—military, financial, energy, food, pharmaceutical, prison, and so on—that it is almost impossible to stay on top of every way we are getting screwed. The good news is that—either through independent media or our basic common sense—polls show that the majority of Americans know enough about the Afghanistan and Iraq wars, Wall Street bailouts, and other corporate welfare to oppose these corporatocracy policies. In the case of the military-industrial complex, most Iraq War polls and Afghanistan War polls show that the majority of Americans know enough to oppose these wars. And when Americans were asked in a CBS New /New York Times survey in January 2011 which of three programs—the military, Medicare or Social Security—to cut so as to deal with the deficit, fully 55 percent chose the military, while only 21 percent chose Medicare and 13 percent chose Social Security.

In the words of Leonard Cohen, “Everybody knows that the deal is rotten.” Well, maybe not everybody, but damn near everybody.

But what doesn’t everybody know?

2. Pragmatic Tactics, Strategies and Solutions
In addition to awareness of economic and social injustices created by corporatocracy rule, it is also necessary to have knowledge of strategies and tactics that oppressed people have historically used to overcome tyranny and to gain their fair share of power.

Even before the Democratic-Republican bipartisan educational policies (such as “no child left behind” and “race to the top”) that cut back on civics being taught in schools, few Americans were exposed in their schooling to “street-smart civics”—tactics and strategies that oppressed peoples have historically utilized to gain power.

For a comprehensive guide of tactics and strategies that have been effective transforming regimes more oppressive than the current U.S. one, read political theorist and sociologist Gene Sharp’s From Dictatorship to Democracy, which includes nearly 200 “Methods of Nonviolent Actions.” Among Sharp’s 49 “Methods of Economic Noncooperation,” he lists over 20 different kinds of strikes. And among his 38 “Methods of Political Noncooperation,” he lists 10 tactics of “citizens’ noncooperation with government,” nine “citizens’ alternatives to obedience,” and seven “actions by government personnel.” Yes, nothing was more powerful in ending the Vietnam War and saving American and Vietnamese lives than the brave actions by critically thinking U.S. soldiers who refused to cooperate with the U.S. military establishment. Check out David Zeigler’s documentary Sir! No Sir! for details.

For a quick history lesson on “the nature of disruptive power” in the United States and the use of disruptive tactics in fomenting the American Revolution, the abolitionist movement, the labor movement, and other democratic movements, check out sociologist Frances Fox Piven’s Challenging Authority: How Ordinary People Change America. Piven describes how “ordinary people exercise power in American politics mainly at those extraordinary moments when they rise up in anger and hope, defy the rules that ordinarily govern their daily lives, and, by doing so, disrupt the workings of the institutions in which they are enmeshed.” In the midst of the Great Depression when U.S unemployment was over 25 percent, working people conducted an exceptional number of large labor strikes, including the Flint, Michigan sit-down strike, which began at the end of 1936 when auto workers occupied a General Motors factory so as to earn recognition for the United Auto Workers union as a bargaining agent. That famous victory was preceded and inspired by other less well-known major battles fought and won by working people. Check out the intelligent tactics (and guts and solidarity) in the 1934 Minneapolis Truckers Strike.

For an example of “the nature of creative power” that scared the hell out of—and almost triumphed—over the moneyed elite, read The Populist Moment by historian Lawrence Goodwyn. The Populist movement, the late-19th-century farmers’ insurgency, according to Goodwyn, was the largest democratic movement in American history. These Populists and their major organization, commonly called the “Alliance,” created worker cooperatives that resulted in empowering economic self-sufficiency. They came close to successfully transforming a good part of the United States into something a lot closer to a democracy. As Goodwyn notes, “Their efforts, halting and disjointed at first, gathered form and force until they grew into a coordinated mass movement that stretched across the American continent ... Millions of people came to believe fervently that the wholesale overhauling of their society was going to happen in their lifetimes.”

In Get Up, Stand Up, I include the section “Winning the Battle: Solutions, Strategies, and Tactics.” However, a major point of the book is that, currently in the United States, even more ignored than street-smart strategies and tactics is the issue of morale, which is necessary for implementing these strategies and tactics. So, I also have a section “Energy to Do Battle: Liberation Psychology, Individual Self-Respect, and Collective Self-Confidence.”

3. The Energy to Do Battle
The elite’s money—and the influence it buys—is an extremely powerful weapon. So it is understandable that so many people who are defeated and demoralized focus on their lack of money rather than on their lack of morale. However, we must keep in mind that in war, especially in a class war when one’s side lacks financial resources, morale becomes even more crucial.

Activists routinely become frustrated when truths about lies, victimization and oppression don’t set people free to take action. But having worked with abused people for more than 25 years, it doesn’t surprise me to see that when we as individuals or a society eat crap for too long, we become psychologically too weak to take action. There are a great many Americans who have been so worn down by decades of personal and political defeats, financial struggles, social isolation and daily interaction with impersonal and inhuman institutions that they no longer have the energy for political actions.

Other observers of subjugated societies have recognized this phenomenon of subjugation resulting in demoralization and fatalism. Paulo Freire, the Brazilian educator and author of Pedagogy of the Oppressed, and Ignacio Martin-Baró, the El Salvadoran social psychologist and popularizer of “liberation psychology,” understood this psychological phenomenon. So did Bob Marley, the poet laureate of oppressed people around the world. Many Americans are embarrassed to accept that we, too, after years of domestic corporatocracy subjugation, have developed what Marley called “mental slavery.” Unless we acknowledge that reality, we won’t begin to heal from what I call “battered people’s syndrome” and “corporatocracy abuse” and to, as Marley urges, “emancipate yourself from mental slavery.”

food prices and humans rioting...,

TechnologyReview | What causes riots? That's not a question you would expect to have a simple answer.

But today, Marco Lagi and buddies at the New England Complex Systems Institute in Cambridge, say they've found a single factor that seems to trigger riots around the world.

This single factor is the price of food. Lagi and co say that when it rises above a certain threshold, social unrest sweeps the planet.

The evidence comes from two sources. The first is data gathered by the United Nations that plots the price of food against time, the so-called food price index of the Food and Agriculture Organisation of the UN. The second is the date of riots around the world, whatever their cause. Both these sources are plotted on the same graph above.

This clearly seems to show that when the food price index rises above a certain threshold, the result is trouble around the world.

This isn't rocket science. It stands to reason that people become desperate when food is unobtainable. It's often said that any society is three square meals from anarchy.

But what's interesting about this analysis is that Lagi and co say that high food prices don't necessarily trigger riots themselves, they simply create the conditions in which social unrest can flourish. "These observations are consistent with a hypothesis that high global food prices are a precipitating condition for social unrest," say Lagi and co.

In other words, high food prices lead to a kind of tipping point when almost anything can trigger a riot, like a lighted match in a dry forest.

On 13 December last year, the group wrote to the US government pointing out that global food prices were about to cross the threshold they had identified. Four days later, Mohamed Bouazizi set himself on fire in Tunisia in protest at government policies, an event that triggered a wave of social unrest that continues to spread throughout the middle east today.

That leads to an obvious thought. If high food prices condition the world for social unrest, then reducing the prices should stabilise the planet.

But what can be done to reverse the increases. Lagi and co say that two main factors have driven the increase in the food price index. The first is traders speculating on the price of food, a problem that has been exacerbated in recent years by the deregulation of the commodities markets and the removal of trading limits for buyers and sellers.

The second is the conversion of corn into ethanol, a practice directly encouraged by subsidies.

Those are both factors that the western world and the US in particular could change.

Today, the food price index remains above the threshold but the long term trend is still below. But it is rising. Lagi and co say that if the trend continues, the index is likely to cross the threshold in August 2013.

If their model has the predictive power they suggest, when that happens, the world will become a tinderbox waiting for a match.

educate, organize, resist, and agitate

Video - cows with guns...,

u.n.: small-scale farming could double the world's food production

Slashfood | The United Nations released a whopper of a report today. In the midst of soaring global food and oil prices, the agency let loose a public stunner: World hunger and climate change cannot be solved with industrial farming. So much for seed-giant Pioneer Hi-Bred's "We Feed The World" slogan. Yowch.

The U.N. study makes it clear -- small-scale farmers can double food production in 10-years by using simple farming methods. According the The Guardian, insect-trapping plants in Kenya or weed-eating ducks in Bangladesh's rice paddies may be the way to feed the world's burgeoning population.

"To feed 9 billion people in 2050, we urgently need to adopt the most efficient farming techniques available. Today's scientific evidence demonstrates that agroecological methods outperform the use of chemical fertilizers in boosting food production in regions where the hungry live," says Olivier De Schutter, U.N. Special Rapporteur on the right to food and author of the report.

De Schutter told the Wall Street Journal that promoting natural farming techniques is the only sustainable way to guard against future food crisis.

"We set up our farming techniques in the 1920s when we thought there would be a never-ending supply of cheap oil," he said. "Developing farming in a way which makes it less addicted to fossil energy is much more promising."

For more global stories that affect us all, check out the AOL News United Nations site.


The agroecological methods mentioned throughout the report sure sound like organic farming to us, but ag writer Jill Richards says there are subtle differences separating the two terms. Agroecology increases soil quality, biodiversity and can make farms more resilient to climate change, but it also values indigenous farming methods, she says.

"A net global increase in food production alone will not guarantee the end of hunger (as the poor cannot access food even when it is available), and increase in productivity for poor farmers will make a dent in global hunger. Potentially, gains in productivity by smallholder farmers will provide an income to farmers as well, if they grow a surplus of food that they can sell," she writes.

So are we on the verge of an agricultural sea change? asks WSJ reporter Caroline Henshaw.

"As leaders debate how to combat record food prices and producers struggle to meet rapidly growing demand, the world is looking for a new agricultural revolution," Henshaw writes.

We think today's U.N. report might give that revolution the mighty shove it needs.

simply try and understand....,

The Imminent Crash of Oil Supply

Countercurrents | Look at the graph below and worry. It was drawn by the United States Department of Energy (Energy Information Administration) in 2009.

What does it imply? The supply of the world's most essential energy source is going off a cliff. Not in the distant future, but within two years. Production of all liquid fuels, including oil, will drop within 20 years to half what it is today . And the difference needs to be made up with "unidentified projects" – in other words, we face a potential ‘rank shortage'. According to this graph, we stand on the edge of a precipice, with no prior warning from either the industry or governments, which ostensibly protect the public interest.

The original graph was prepared for a US Department of Energy meeting in spring, 2009.

Take a good look at what it says:

• We are past the peak of oil production and there are maybe 750 billion barrels of conventional oil left. Conventional oil will be substantially gone in 20 years, and there is nothing secure to replace it;

• Total petroleum production from all presently known sources, conventional and unconventional, will remain "flat" at approximately 83 mbpd for the next two years and then will proceed to drop for the foreseeable future, at first slowly but by 4% per year after 2015.

• Demand will begin to outstrip supply in 2012, and will already be 10 million barrels per day above supply in only five years. The United States Joint Forces Command concurs with these findings.

• 10 million bpd is equivalent to half the United States ' entire consumption. To make up the difference, the world would have to find another Saudi Arabia and get it into full production in five years, an impossibility. See The Oil Drum

the seige on gaddafi's fuel supply

BBCNews | The BBC has learned that David Cameron set up a secret unit within Whitehall to mount covert economic operations against Colonel Gaddafi.

The so-called "Libya oil cell" helped block fuel supplies to Tripoli while ensuring that petrol and diesel continued to get through to the rebels in the east.

Whitehall officials said the unit - made up of a handful of civil servants, ministers and military figures - played a crucial role in starving the regime's war effort of fuel while making sure that the rebels could continue taking the fight to Gaddafi.

The unit was the brain child of the international development minister, Alan Duncan.
Discreet operation

The former oil trader convinced the prime minister in April that part of the solution to the conflict lay in oil. He persuaded the national security council that Gaddafi would defeat the rebels unless they got access to fuel and he was deprived of it.

So the secret cell was established in two discreet operations rooms in the Foreign Office where intelligence about oil and fuel movements was gathered and information and advice provided to the government and Nato.

The unit was headed up initially by a senior admiral, and then later by a senior government official, both of whom attended national security council meetings.

The cell advised Nato to blockade the port of Zawiya to prevent smugglers bringing in tankers full of fuel for Gaddafi's war effort.

They helped identify which oil tankers that Nato should interdict. They also helped locate other routes the smugglers were using to get fuel into Libya overland from Tunisia and Algeria.

The cell also provided intelligence to the rebels so they could cut off the supply of crude oil from the Nafusa mountains to Gaddafi's refinery at Zawiya.
'Tap turned off'

It also ensured that the sanctions regime against Libya was redrawn so that the rebels could get access to fuel from overseas.

And it encouraged London-based oil traders to sell fuel to the rebels in Benghazi by trying to minimise the risk they would take by having to wait for payment. It also ensured that the oil traders knew who to contact within the rebel hierarchy.

One Whitehall source said: "If you didn't have the fuel, you couldn't win the war. So our aim was to starve the west of fuel and make sure the rebels could keep going.

"Gaddafi had lots of crude but he couldn't refine it. So he had to rely on imported fuel. And we turned off that tap."

It emerged last night that Mr Duncan had once worked with Vitol, the oil company that provided fuel to the rebels. But Whitehall sources said there was no conflict of interest because the Libya oil cell had no commercial relationship with the company.

the siege of leningrad

DailyMail | The German siege of Leningrad lasted 900 days from September, 1941 to January, 1944. During that time 800,000 people, nearly a third of the population at the siege’s beginning, starved to death. Roughly one in three. Many of them in the streets.
Terrible times: Citizens of Leningrad after the German bombing in the winter of 1941

Terrible times: Citizens of Leningrad after the German bombing in the winter of 1941

Twenty years later I visited Leningrad. They took me to see the front line - a canyon gashed out of the landscape lined with shattered ruins of houses - as if a giant excavator had taken a mouthful of the city. Because we were still in the city, that was the shock. The Germans got that close.

The Leningraders still bore the signs. Here were so many old and shrivelled faces. Often you saw the flash of steel teeth. Dentists’ amalgam had run out early. The city’s stunning architecture (after all, it was, and now again is, St Petersburg) looked sadly worn except for certain restored cathedrals and palaces.

Few people outside realised what the siege was like. For years afterwards Stalin kept it dark. Deaths were underestimated. Its party leaders were purged. There were to be no other heroes of the war besides himself.

After the Khrushchev thaw, a new legend was propagated of a Leningrad whose heroic citizens unflinchingly disregarded the bombs and shells and starved quietly as willing sacrifices to defend the cradle of the Revolution.

Then, with the collapse of communism, archives began to open with their police records and siege diaries. This book seeks to tell objectively what really happened. It is a stark shocking tale.

The toll of that first winter is staggering. Leningrad was totally unprepared for siege - as Russia was for the German attack. It took only 12 weeks for the German and Finnish armies to cut off the city. In that time the evacuation of civilians and obtaining of food supplies were hugely bungled.

Andrei Zhdanov, the city’s Communist Party chief, actually telephoned Stalin to tell him that their warehouses were full - in order that he should look prepared. So several relief food trains were diverted elsewhere.

Over a million children and dependants were still in the city when the ring closed. In all there were 3.3 million mouths to feed.

Quite soon the bread ration had to be halved. By mid-November manual workers received 250 grams a day, the rest only half of that. But the bread had been adulterated with pine shavings. So people were existing (or failing to) on 400, even 300 calories.

Pet owners swapped cats in order to avoid eating their own. There wasn’t a dog to be seen. Only the zoo preserved its star attractions, like ‘Beauty’ the hippopotamus, with special rations of hay.

People searched desperately for substitute food. Cottonseed cake (usually burned in ships’ boilers), ‘macaroni’ made from flax seed for cattle, ‘meat jelly’ produced from boiling bones and calf skins, ‘yeast soup’ from fermented sawdust, joiners’ glue boiled and jellified, toothpaste, cough mixture and cold cream - anything that contained calories. They even licked the dried paste off the wallpaper.

The Black Market flourished openly on street stalls with ever rising prices. A fur coat fetched fewer and fewer kilograms of flour. Meanwhile the Party chiefs and their friends and connections, continued to look well fed to general resentment.

The first news that people had died from starvation met with incredulity: ‘Not the one I know? In broad daylight? With a Masters Degree?’

But before long people were concealing deaths in the family, hiding the bodies so that the deceased’s ration card could be used until it expired. Husbands and fathers helped to feed their families posthumously.

It was a very severe winter - temperatures of minus 35 degrees. Trams froze in their tracks. Buildings burned for days - fire services ceased to function. Factories closed, hospitals were overwhelmed, cemeteries could not keep pace. Bodies, shrouded but uncoffined, were dragged through the streets on sleds. At one cemetery gate a corpse propped upright with a cigarette in its mouth extended a frozen arm and finger as a sign post to the newest mass graves.
Commemoration: A Russian guard of honour marches at a ceremony for the 61st anniversary of the end of the siege

Commemoration: A Russian guard of honour marches at a ceremony for the 61st anniversary of the end of the siege

Of course there was a crime wave, mainly of adolescent muggers thieving food and ration cards. One 18-year-old killed his two younger brothers for their cards. Another murdered his granny with an axe and boiled her liver. A 17-year-old stole a corpse from a cemetery and put it through a mincer.

Rumours of cannibalism abounded. Amputated limbs disappeared from hospital theatres. Police records released years later showed that 2,000 people were arrested for cannibalism; 586 of them were executed for murdering their victims. Most people arrested however were women. Mothers smothered very young children to feed their older ones.

The spring of 1942 brought a thaw and with it edible dandelions and nettles. The population, now much reduced, set about raising vegetables.

what price kindness?

TheScientist | Here is the mystery: if evolution is a game of survival of the fittest, how to explain the persistence of traits which reduce individuals’ success at passing on their genes? Behold the stinging bee, the toilsome ant, the nurturing sterile mole rat. Consider the social amoeba, Dictyostelium discoideum, in which altruistic stalk cells give their lives so their brothers can climb them to the tip of the cooperative spire and be carried away to better fortunes by a felicitous wind. Darwin was mesmerized by the apparent paradox of altruism in a nature “red in tooth and claw,” and proclaimed that absent a solution, his entire theory was suspect. Ever since, field biologists, mathematicians, geneticists, game theorists, psychologists, and of course philosophers have been trying to crack the mystery of the origins of kindness.

Price was one of them, and a man who came to the problem late in his career. He had worked as a chemist on the Manhattan Project, as an engineer at Bell Labs, as a systems analyst at IBM, and as a writer living in Greenwich Village. In 1967 he left his job, family, and country behind and moved to England to try to solve the altruism conundrum. Within less than six months, untrained in the field and working entirely alone, he wrote an equation that would come to bear his name. Where science had offered either the narrowness of nepotism (kin selection) or the clannishness of the tribe (group selection) as possible explanations for the evolution of altruism, the “Price equation” would provide a multilevel selection approach that would allow for both, and more. By partitioning selection into its different components—particularly for traits like altruism where interests apparently conflict between different levels of biological organization—the equation would ultimately find a central role in social evolution theory. Altruism could come about in different ways and via different routes.

But of course this was biological “kindness,” measured by the result of an action rather than its intention, so was there any true bearing on humans? It was this question that would ultimately lead Price to the streets of London, where, like a guardian angel, he tended to the homeless. And this question remains a challenge today, as we use neurogenetics, endocrinology, mathematical modeling, and fMRI to try to “find” kindness, empathy, and altruism in humans. The Price of Altruism puts this lofty quest in historical context, going back to Darwin and a cast of colorful characters—the Russian anarchist Prince Peter Kropotkin, the behaviorist B.F. Skinner, the mathematical genius John von Neumann, and many others—who also sought the origins of altruism. Ultimately, Price’s suicide, among the unfortunate homeless of London whom he had striven to save, sheds more light on how difficult it is to find scientific solutions to deep human mysteries. A window onto the majesty of the scientific method alongside its limitations is the legacy that this entirely unique and dramatic life leaves behind.

america's big step back...,

NYTimes | A Silicon Valley maker of solar power arrays that was started with high hopes and $527 million in loans from the federal government said on Wednesday that it would cease operations. The failure of the company — and the loss to taxpayers — is likely to renew the debate in Washington about the wisdom of clean energy subsidies and loan guarantees.

President Obama praised the company, Solyndra, for its advanced technology during a visit last year. But in a statement on Wednesday, Solyndra said its business had run into trouble because of difficult global business conditions, including slowing demand for solar panels, and stiff competition.

The Energy Department, which approved the funding, said China’s subsidies to its solar industry were threatening the ability of Solyndra and other American manufacturers to compete. The price of a solar array, measured by cost per watt of capacity, has fallen 42 percent since December 2010, the agency said.

Two other American solar companies, Evergreen Solar and SpectraWatt, also sought bankruptcy protection in August, and both said competition from Chinese companies had contributed to their financial problems.

In the case of Solyndra, some experts said that regardless of the competition, the company’s unique designs, which were expensive to manufacture, were to blame for its failure.

Solyndra was promised loans of up to $535 million under a guarantee program authorized by Congress as part of the 2009 stimulus package. The Energy Department has made more than 40 promises of guarantees, of which Solyndra was the first. It has committed $18 billion in guarantees and expects to allocate several billion dollars more by the time the program finishes at the end of September. Fist tap brotherbrown.

a giant step forward for china...,

Technology Review | To see the future of solar power, take an hour-long train ride inland from Shanghai and then a horn-blaring cab trek through the smog of Wuxi, a fast-growing Chinese city of five million. After winding through an industrial park, you will arrive at the front door of Suntech Power, a company that in the few years since its founding has become the world's largest maker of crystalline-silicon solar panels.

Solar panels cover the entire front face of the sprawling eight-story headquarters. Nearly 2,600 two-meter-long panels form the largest grid-connected solar façade in the world. Together with an array of 1,800 smaller panels on the roof, it can generate a megawatt of power on a sunny day. It's expected to produce over a million kilowatt-hours of electricity in a year--enough for more than 300 people in China.

In 2001, when Suntech was founded, all the solar-panel factories in China operating at full capacity would have taken six months to build enough panels for such a massive array. Suntech's first factory, which opened in 2002, cut that time to a little more than a month. Today, the company can make that many panels in less than one 12-hour shift. By the end of this year, the workers could be done by lunchtime. Suntech's production capacity has increased from 10 megawatts a year in 2002 to well over 1,000 megawatts today. Chinese solar manufacturing as a whole has increased its capacity from two megawatts in 2001 to over 4,000 megawatts.

That rapid growth, fueled by relentless cost cutting, has allowed Chinese manufacturers to overtake those in the United States, Japan, and Germany in less than a decade to become the biggest source of solar panels in the world. Worldwide, Chinese solar panels accounted for about half of total shipments in 2009. And that share is expected to grow this year. Of the 10 largest solar-panel manufacturers, half are based in China. In 2007, U.S. manufacturers supplied 43 percent of the panels for a solar rebate program in California. The rest came almost exclusively from Japan and Germany; only 2 percent came from China. Now Chinese companies supply 42 percent of the panels, and the U.S. share has dropped to 15 percent according to an analysis by Nathaniel Bullard of Bloomberg New Energy Finance.