noworldsystem.com


One quarter of US grain crops fed to cars – not people

One quarter of US grain crops fed to cars – not people


A grain elevator in Illinois, US. In 2009, 107m tonnes of grain was grown by US farmers to be blended with petrol. Photograph: AP

London Guardian
January 22, 2010

One-quarter of all the maize and other grain crops grown in the US now ends up as biofuel in cars rather than being used to feed people, according to new analysis which suggests that the biofuel revolution launched by former President George Bush in 2007 is impacting on world food supplies.

The 2009 figures from the US Department of Agriculture shows ethanol production rising to record levels driven by farm subsidies and laws which require vehicles to use increasing amounts of biofuels.

“The grain grown to produce fuel in the US [in 2009] was enough to feed 330 million people for one year at average world consumption levels,” said Lester Brown, the director of the Earth Policy Institute, a Washington thinktank ithat conducted the analysis.

Last year 107m tonnes of grain, mostly corn, was grown by US farmers to be blended with petrol. This was nearly twice as much as in 2007, when Bush challenged farmers to increase production by 500% by 2017 to save cut oil imports and reduce carbon emissions.

More than 80 new ethanol plants have been built since then, with more expected by 2015, by which time the US will need to produce a further 5bn gallons of ethanol if it is to meet its renewable fuel standard.

According to Brown, the growing demand for US ethanol derived from grains helped to push world grain prices to record highs between late 2006 and 2008. In 2008, the Guardian revealed a secret World Bank report that concluded that the drive for biofuels by American and European governments had pushed up food prices by 75%, in stark contrast to US claims that prices had risen only 2-3% as a result.

Since then, the number of hungry people in the world has increased to over 1 billion people, according to the UN’s World Food programme.

“Continuing to divert more food to fuel, as is now mandated by the US federal government in its renewable fuel standard, will likely only reinforce the disturbing rise in world hunger. By subsidising the production of ethanol to the tune of some $6bn each year, US taxpayers are in effect subsidising rising food bills at home and around the world,” said Brown.

“The worst economic crisis since the great depression has recently brought food prices down from their peak, but they still remain well above their long-term average levels.”

The US is by far the world’s leading grain exporter, exporting more than Argentina, Australia, Canada, and Russia combined. In 2008, the UN called for a comprehensive review of biofuel production from food crops.

“There is a direct link between biofuels and food prices. The needs of the hungry must come before the needs of cars,” said Meredith Alexander, biofuels campaigner at ActionAid in London. As well as the effect on food, campaigners also argue that many scientists question whether biofuels made from food crops actually save any greenhouse gas emissions.

But ethanol producers deny that their record production means less food. “Continued innovation in ethanol production and agricultural technology means that we don’t have to make a false choice between food and fuel. We can more than meet the demand for food and livestock feed while reducing our dependence on foreign oil through the production of homegrown renewable ethanol,” said Tom Buis, the chief executive of industry group Growth Energy.

Kissinger’s Plan For Food Control Genocide

Food Shortages in 2010

Biofuel Industry Destroying Amazon Rainforest

 



RBS and BIS Signal Economic Collapse

RBS issues global stock and credit crash alert

London Telegraph
June 18, 2008

The Royal Bank of Scotland has advised clients to brace for a full-fledged crash in global stock and credit markets over the next three months as inflation paralyses the major central banks.

“A very nasty period is soon to be upon us – be prepared,” said Bob Janjuah, the bank’s credit strategist.

A report by the bank’s research team warns that the S&P 500 index of Wall Street equities is likely to fall by more than 300 points to around 1050 by September as “all the chickens come home to roost” from the excesses of the global boom, with contagion spreading across Europe and emerging markets.

Read Full Article Here

 

BIS Warns Of Great Depression

Banking Times
June 11, 2008

The Bank for International Settlements (BIS), the organisation that fosters cooperation between central banks, has warned that the credit crisis could lead world economies into a crash on a scale not seen since the 1930s.

In its latest quarterly report, the body points out that the Great Depression of the 1930s was not foreseen and that commentators on the financial turmoil, instigated by the US sub-prime mortgage crisis, may not have grasped the level of exposure that lies at its heart.

According to the BIS, complex credit instruments, a strong appetite for risk, rising levels of household debt and long-term imbalances in the world currency system, all form part of the loose monetarist policy that could result in another Great Depression.

The report points out that between March and May of this year, interbank lending continued to show signs of extreme stress and that this could be set to continue well into the future.

It also raises concerns about the Chinese economy and questions whether China may be repeating mistakes made by Japan, with its so called bubble economy of the late 1980s.

 

Notional Value Of Derivatives Hits One Quadrillion

Jim Sinclair
JS Mineset
June 11, 2008

The notional value of all outstanding derivatives now totals approximately $1.144 QUADRILLION.

This appears to be Bank of International Settlement Spin to announce the largest gain in derivatives outstanding since they started to report. As of the last report it appeared that both listed and OTC derivatives was under $600 trillion. Now listed credit derivatives alone stood at $548 Trillion. The OTC derivatives are shown as $596 trillion notional value, as of December 2007. One can only imagine what number they are at now.

Well we hit a QUADRILLION. We have more than $1000 trillion dollars in all derivatives outstanding. That is simply NUTS because notional value becomes real value when either counterparty to the OTC derivative goes bankrupt. $548 trillion plus $596 trillion means $1.144 quadrillion.

It would be an interesting piece of research to see what the breakdown is of listed derivatives according to exchange to see if it adds up to the reported number. Spin is now everywhere.

This means that no OTC derivative house can be allowed to go broke. This means that whatever funds are required to rescue failing international investment banks, banks and financial entities will be provided.

Keep this economic law in mind. Monetary inflation proceeds price inflation and is its primary cause in economic history from Rome to present.

Nothing can stop the juggernaut of price inflation heading towards every nation like a runaway freight train down a mountain.

Gold is going to at least $1650. I am probably way too low with that estimate.

The US dollar will trade down to at least .5200 as measured by the USDX.

Policy-makers around the globe declared soaring inflation a top threat on Monday, with pressure rising for central banks to raise interest rates amid protests against higher costs of living.

Gold is the easiest market to trade for the aggressive investor. Sell 1/3 when the market looks like a Rhino Horn which you will see with your French Curves at the point of the rollover.

Buy 1/3 back when the price of gold looks like a fishing line hanging off a fishing rod. Your maximum power down trend line will give you this.

Related News:

European Central Bank may raise interest rates by 25 basis points
http://news.yahoo.com/s/nm/20080616/b..3n0dX.bIygjaM4as0NUE

Morgan Stanley warns of ’catastrophic event’ as ECB fights Federal Reserve
http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2008/06/16/bcnecb116.xml

Washington Post says Bernanke will not raise rates
http://www.reuters.com/article/ousiv/idUSN1647075820080616

Bank Robberies Up Around USA
http://www.usatoday.com/news/nation..ankrobberies_N.htm?csp=1

IMF Economist Calls For World Currency
http://www.atimes.com/atimes/Global_Economy/JF06Dj04.html

Corn Jumps To Record
http://biz.yahoo.com/ap/080612/commodities_review.html?.v=3&printer=1

Inflation jumps by biggest amount in 6 months
http://news.yahoo.com/s/ap/2..CNtc5x1gy4CWdv24cA

US trade deficit jumps to 60.9 billion dollars
http://rawstory.com/news/afp/US_trad.._06102008.html

Zimbabwe faces worst harvest on record
Global food supply is a growing problem
NY Fed Chief Urges Global Bank Framework
Food Scarcity ’Creating New World Order’
AFGHANISTAN: Over 3.5 million at” high risk” of food insecurity – ministry
Water Crisis To Be World’s Big Risk
U.S. Banks Hiding $5 Trillion

U.S. Economic Collapse News Archive

 



Food prices put fight against poverty back 7 years

World Bank: rocketing food prices have put fight against poverty back 7 years

London Guardian
April 10, 2008

Rocketing global food prices are causing acute problems of hunger in poor countries and have put back the fight against poverty by seven years, the World Bank said today.

Robert Zoellick, the Bank’s president, said that while consumers in rich countries were worried about the cost of filling the fuel tanks in their cars, people in poor countries were “struggling to fill their stomachs. And it’s getting more and more difficult every day.”

Zoellick said the price of wheat has risen by 120% in the past year, more than doubling the cost of a loaf of bread. Rice prices were up by 75%.

“In Bangladesh a two kilogram bag of rice now consumes almost half of the daily income of a poor family. With little margin for survival, rising prices too often means fewer meals.”

Poor people in Yemen, he said, were now spending more than a quarter of their income on bread.

“This is not just about meals foregone today, or about increasing social unrest, it is about lost learning potential for children and adults in the future, stunted intellectual and physical growth. Even more, we estimate that the effect of this food crisis on poverty reduction worldwide is in the order of seven lost years.”

The Bank’s analysis chimes with research from the International Monetary Fund showing that Africa will be the hardest hit continent from rising food prices. More than 20 African countries will see their trade balance worsen by more than 1% of GDP as a result of having to pay more for food.

Read Full Article Here

 

World Bank expects more high food prices

AP News
April 8, 2008

Rising food prices, which have caused social unrest in several countries, are not a temporary phenomenon, but are likely to persist for several years, World Bank President Robert Zoellick says.

Strong demand, change in diet and the use of biofuels as an alternative source of energy have reduced world food stocks to a level bordering on an emergency, he says.

Speaking to reporters Monday before the bank’s spring meeting this coming weekend, Zoellick said the 185-member World Bank would work with other organizations to deal with the crisis by seeking ways to help farmers, especially in Africa, to increase productivity and improve access to food through schools or workplaces.

“This is not a this-year phenomenon,” he said, referring to the price spike. “I think it is going to continue for some time.”

Zoellick said bank forecasters looking at food prices have concluded that a serious risk exists of a significant increase in poverty, which for some countries will reverse gains made over the past five to 10 years.

Read Full Article Here

Food as a Weapon: The Rape of Iraq
http://mparent7777-1.blogspot.com/2008/04/food-as-weapon-rape-of-iraq.html

UN Chief: Food riots are already being reported across the globe
http://www.guardian.co.uk/environment/2008/apr/09/food.unitednations

Grains Gone Wild
http://www.nytimes.com/2008.._r=1&oref=slogin&pagewanted=print

Food Haitians storm palace in food price riots
http://www.boston.com/news/world/la..rm_palace_in_food_price_riots/

Rice Jumps to Record, Corn Near High as Demand Outpaces Supply
http://www.bloomberg.com/apps/new..&sid=aBPFBEmOgnh8&refer=home

Food riots fear after rice price hits a high
http://www.guardian.co.uk/environ..r/06/food.foodanddrink

Food prices to rise for years, biofuel firms say
http://www.reuters.com/article/reutersEdge/idUSL0324014220080403

Rush to restrict trade in basic foods
http://www.ft.com/cms/s/0/7a4c2b98..77b07658.html?nclick_check=1

 



Destroying the Rainforest to Fight Global Warming

Destroying the Amazon Rainforest to Fight Global Warming
Biofuel industry to destroy valuble wetlands, grasslands and forests to cash-in on the global warming trend

Time
March 30, 2008

From his Cessna a mile above the southern Amazon, John Carter looks down on the destruction of the world’s greatest ecological jewel. He watches men converting rain forest into cattle pastures and soybean fields with bulldozers and chains. He sees fires wiping out such gigantic swaths of jungle that scientists now debate the “savannization” of the Amazon. Brazil just announced that deforestation is on track to double this year; Carter, a Texas cowboy with all the subtlety of a chainsaw, says it’s going to get worse fast. “It gives me goose bumps,” says Carter, who founded a nonprofit to promote sustainable ranching on the Amazon frontier. “It’s like witnessing a rape.”

The Amazon was the chic eco-cause of the 1990s, revered as an incomparable storehouse of biodiversity. It’s been overshadowed lately by global warming, but the Amazon rain forest happens also to be an incomparable storehouse of carbon, the very carbon that heats up the planet when it’s released into the atmosphere. Brazil now ranks fourth in the world in carbon emissions, and most of its emissions come from deforestation. Carter is not a man who gets easily spooked–he led a reconnaissance unit in Desert Storm, and I watched him grab a small anaconda with his bare hands in Brazil–but he can sound downright panicky about the future of the forest. “You can’t protect it. There’s too much money to be made tearing it down,” he says. “Out here on the frontier, you really see the market at work.”

This land rush is being accelerated by an unlikely source: biofuels. An explosion in demand for farm-grown fuels has raised global crop prices to record highs, which is spurring a dramatic expansion of Brazilian agriculture, which is invading the Amazon at an increasingly alarming rate.

Propelled by mounting anxieties over soaring oil costs and climate change, biofuels have become the vanguard of the green-tech revolution, the trendy way for politicians and corporations to show they’re serious about finding alternative sources of energy and in the process slowing global warming. The U.S. quintupled its production of ethanol–ethyl alcohol, a fuel distilled from plant matter–in the past decade, and Washington has just mandated another fivefold increase in renewable fuels over the next decade. Europe has similarly aggressive biofuel mandates and subsidies, and Brazil’s filling stations no longer even offer plain gasoline. Worldwide investment in biofuels rose from $5 billion in 1995 to $38 billion in 2005 and is expected to top $100 billion by 2010, thanks to investors like Richard Branson and George Soros, GE and BP, Ford and Shell, Cargill and the Carlyle Group. Renewable fuels has become one of those motherhood-and-apple-pie catchphrases, as unobjectionable as the troops or the middle class.

But several new studies show the biofuel boom is doing exactly the opposite of what its proponents intended: it’s dramatically accelerating global warming, imperiling the planet in the name of saving it. Corn ethanol, always environmentally suspect, turns out to be environmentally disastrous. Even cellulosic ethanol made from switchgrass, which has been promoted by eco-activists and eco-investors as well as by President Bush as the fuel of the future, looks less green than oil-derived gasoline.

Meanwhile, by diverting grain and oilseed crops from dinner plates to fuel tanks, biofuels are jacking up world food prices and endangering the hungry. The grain it takes to fill an SUV tank with ethanol could feed a person for a year. Harvests are being plucked to fuel our cars instead of ourselves. The U.N.’s World Food Program says it needs $500 million in additional funding and supplies, calling the rising costs for food nothing less than a global emergency. Soaring corn prices have sparked tortilla riots in Mexico City, and skyrocketing flour prices have destabilized Pakistan, which wasn’t exactly tranquil when flour was affordable.

Biofuels do slightly reduce dependence on imported oil, and the ethanol boom has created rural jobs while enriching some farmers and agribusinesses. But the basic problem with most biofuels is amazingly simple, given that researchers have ignored it until now: using land to grow fuel leads to the destruction of forests, wetlands and grasslands that store enormous amounts of carbon.

Backed by billions in investment capital, this alarming phenomenon is replicating itself around the world. Indonesia has bulldozed and burned so much wilderness to grow palm oil trees for biodiesel that its ranking among the world’s top carbon emitters has surged from 21st to third according to a report by Wetlands International. Malaysia is converting forests into palm oil farms so rapidly that it’s running out of uncultivated land. But most of the damage created by biofuels will be less direct and less obvious. In Brazil, for instance, only a tiny portion of the Amazon is being torn down to grow the sugarcane that fuels most Brazilian cars. More deforestation results from a chain reaction so vast it’s subtle: U.S. farmers are selling one-fifth of their corn to ethanol production, so U.S. soybean farmers are switching to corn, so Brazilian soybean farmers are expanding into cattle pastures, so Brazilian cattlemen are displaced to the Amazon. It’s the remorseless economics of commodities markets. “The price of soybeans goes up,” laments Sandro Menezes, a biologist with Conservation International in Brazil, “and the forest comes down.”

Deforestation accounts for 20% of all current carbon emissions. So unless the world can eliminate emissions from all other sources–cars, power plants, factories, even flatulent cows–it needs to reduce deforestation or risk an environmental catastrophe. That means limiting the expansion of agriculture, a daunting task as the world’s population keeps expanding. And saving forests is probably an impossibility so long as vast expanses of cropland are used to grow modest amounts of fuel. The biofuels boom, in short, is one that could haunt the planet for generations–and it’s only getting started.

Read Full Article Here

Biofuel Scam: Ship fuel over the Atlantic twice, pocket US subsidies, undercut local vendors
http://www.guardian.co.uk/environment/2008/apr/01/biofuels.energy

Analyst Predicts Corn Rationing In 2008
http://www.chron.com/disp/story.mpl/ap/fn/5662307.html