lwsimmons.org

Monday, April 6, 2009

Leaders and central banks in Russia, China, Malaysia, Indonesia, Thailand, and Kazakhstan have called for an international currency system.

Speaking on April 1 in advance of the G-20 summit in London, Russian president Dmitry Medvedev argued that the international finance system needed a “new construction” including “new currency systems”, saying that such a new system could be the purpose of a revamped IMF and World Bank. The IMF was originally founded in 1946 as the overseer of the Bretton Woods system, which from its founding until the 1970s tied the western world’s currencies to the US Dollar, which was in turn backed by gold. Russia’s proposal was for the new currency to serve as a reserve currency, one which would take the place of the dollar, euro, and other heavily-traded currencies as an international standard of exchange.

Medvedev’s comments are a reversal of Russian position from a lukewarm response following a looser outline for a worldwide currency by Kazakhstani president Nursultan Nazarbayev. On March 11, Nazarbayev suggested the establishment of the “acmetal”, a portmanteau of “acme” and “capital“, as a reserve currency replacing the ruble in international transactions, first for Central Asia and then worldwide. 1999 Economics Nobel laureate Robert Mundell, speaking to the Daily Telegraph, endorsed the idea, saying “It would be a very good idea if the G-20 took that idea up in London”.

2001 Nobel economics prize winner Joseph Stiglitz, meanwhile, said the new currency could come about quickly if it was based on an expansion of the IMF’s already established system of Special Drawing Rights, units of exchange used by the IMF which already have some of the features of currency. Stiglitz argued that, as the US dollar has become the standard global reserve currency, it has inadvertently created a system which hurts the world economy. “It’s a net transfer, in a sense, to the United States of foreign aid,” he argued, reasoning that when other countries purchase US dollars in order to use them on international markets (such as for the buying and selling of petroleum), they effectively give the US a zero-interest loan — sometimes at times when they can least afford it. Stiglitz made his comments as head of a United Nations panel of economists giving recommendations to address the global financial crisis.

In the weeks leading up to the G-20 conference, the People’s Republic of China also began discussing a new system for reserve currencies. In a March 23 speech, Zhou Xiaochuan, governor of the People’s Bank of China, endorsed a new reserve currency, saying “the desirable goal of reforming the international monetary system, therefore, is to create an international reserve currency that is disconnected from individual nations and is able to remain stable in the long run, thus removing the inherent deficiencies caused by using credit-based national currencies.” Zhou went on to endorse the expansion of the SDR system in the long-term creation of a reserve currency government by the IMF. While Zhou did not mention the US dollar specifically, analysis by Qu Hongbin, chief China economist for HSBC, for the Financial Times said that the speech “is a clear sign that China, as the largest holder of US dollar financial assets, is concerned about the potential inflationary risk of the US Federal Reserve printing money”.

China holds $740 billion as assets; inflation in the US economy, which has been low in recent years, would directly cause those assets to lose value.

While the Chinese government has engaged in currency swaps with several other growing economies, such as South Korea, Argentina, Malaysia and Indonesia, the Chinese Yuan cannot be used itself as a reserve currency as it cannot be freely traded on the global market.

The Chinese-Russian proposal was not entered onto the agenda at the G-20 meeting itself. Nonetheless, British Prime Minister Gordon Brown said that the G-20 was open to considering the proposal if and when a detailed one is presented. United States President Barack Obama, meanwhile, endorsed the continuation of dollar supremacy, saying that the US dollar is “extraordinarily strong” and arguing that its strength was the result of the intrinsic stability of the United States economic and political system; US treasury secretary Timothy Geithner had, the week before, made comments that while he supported an expansion in the SDR mechanism he rejected the idea of a global currency. Rather than change the role of SDRs, the G-20 meeting instead added $250 billion in support to the fund backing SDRs.

After the G-20 conference ended on Thursday, Malaysia’s The Star BizWeek reported that the central banks of Indonesia, Malaysia and Thailand had endorsed the Chinese proposal. All three countries have close economic ties with China and suffered heavily from the collapse of their currencies in the 1997 Asian Financial Crisis; the sudden growth in the value of the US dollar relative to those countries’ native currencies sharply increased debt in Southeast Asia’s economies, leading to a wave of bankruptcies.

International reaction from other economies has been mixed and guarded. Luiz Inacio Lula da Silva, President of Brazil, said that the currency proposal was important to discuss but did not give extensive comment. And while UPI reports that India supported the SDR proposal at the G-20 conference, the Indian Press Trust quotes Indian Prime Minister Manmohan Singh as saying last month, “It is too early to talk about common currency.”

Calls for an independent global reserve currency are not new. In 1944, John Maynard Keynes proposed the “bancor“, a unit like the SDR supported by a basket of commodities. Keynes’ idea was rejected and the US dollar took the equivalent role under the Bretton Woods system. Keynes proposed that the bancor system would be reinforced by a tax on participating countries’ current accounts, the difference between their exports and their imports, in order to encourage balanced trade. Meanwhile, monetary unions have become more popular since the end of the gold standard, with most of the European Union now trading the euro, and several countries outside the EU using it as a de facto currency; five West African countries adopting the eco at the end of this year; and the African Union planning to introduce the afro in 2028. Proposals for a North American currency union based around the so-called “amero” have been frequently discussed as the focus of conspiracy theories in the United States, but none of the US, Canada or Mexico have actively pursued the establishment of any such monetary union, however the dollar is the currency of several Latin American countries.

Wednesday, December 5, 2012

With the Australian Para-alpine ski team set to arrive in Vail today (Wednesday) for the start of the IPC Nor-Am Cup to be held on Copper Mountain this coming Sunday, both areas are dealing with unseasonably warm weather that adversely effects skiing conditions.

An inch of snow fell on Copper Mountain and Vail Sunday night, one–two inches less than forecast. The weather conditions are not expected to improve to bring snow bearing conditions for a while as the area experiences day time temperatures in the 50s °F/10s °C.

The lack of snow delayed the opening of a number of ski resorts in the area, with only six open by November 16. Copper Mountain required use of snow machines to keep snow on their ski runs. The lack of quality snow was a factor in a downturn by about 12% in visitors to Colorado’s ski resorts. Currently, the snow is machine groomed and the majority of ski lifts and trails are not open.

Wednesday, November 21, 2007

A former accountant for Oral Roberts University (ORU) has filed a lawsuit against ORU and its Board of Regents claiming he was told by Richard Roberts and his wife Lindsay to “cook the books”, hiding financial wrongdoing from authorities and the public. Trent Huddleston, the accountant, has filed suit against the school and the Robertses claiming he “was improperly and unlawfully directed to perform functions and duties in violation of state and federal law in an effort by the defendants to ‘cook the books’ and hide from the appropriate authorities and the public the continued wrongdoing, improper and illegal conduct of the defendants, and in particular, of Richard and Lindsay Roberts.”

Huddleston said that nearly $123,000 in remodeling fees for their home was paid by Oral Roberts University and Oral Roberts Ministries. In addition the lawsuit alleges $4,000 was spent on a pool table for the Robertses. Previously the Roberts were accused of illegal political and financial wrongdoing, which forced the president to step down from his positison.

Last week at a meeting called by Oral Roberts, founder of the University and former faith healer, a majority of the faculty voted against allowing Richard to serve as president.

An ORU spokesman declined to comment on latest lawsuit and the faculty meeting.

In other news, Tulsa World released emails between Richard and his political adviser and sister-in-law, Stephanie Cantees. The emails given by an anonymous source, show the two plan to gain political influence using ORU students.

Thursday, November 2, 2006

Winter Haven, Florida police chief Paul Goward was tired of seeing fat hanging out over the belts of some of his officers. So he posted a memo to encourage the so-called ‘jelly bellies’ to get in shape.

The memo, entitled ‘Are You A Jelly Belly?’ didn’t single anyone out, and, apart from the title, didn’t call anyone names.

Goward, a former deputy police chief in Wichita, wrote “If you are unfit, do yourself and everyone else a favor. See a professional about a proper diet and a fitness training program, quit smoking, limit alcohol intake…Don’t mean to offend, this is just straight talk. I owe it to you.”

It provided a list of 10 reasons cops should get fit. Goward said that overweight cops poorly represent the profession, are liable to ‘poop out’ when chasing suspects, and may have to use a higher degree of force.

In the end, Goward resigned from his position as police chief.

Thursday, December 13, 2007

Victoria Wyndham was one of the most seasoned and accomplished actresses in daytime soap opera television. She played Rachel Cory, the maven of Another World‘s fictional town, Bay City, from 1972 to 1999 when the show went off the air. Wyndham talks about how she was seen as the anchor of a show, and the political infighting to keep it on the air as NBC wanted to wrest control of the long-running soap from Procter & Gamble. Wyndham fought to keep it on the air, but eventually succumbed to the inevitable. She discusses life on the soap opera, and the seven years she spent wandering “in the woods” of Los Angeles seeking direction, now divorced from a character who had come to define her professional career. Happy, healthy and with a family she is proud of, Wyndham has found life after the death of Another World in painting and animals. Below is David Shankbone’s interview with the soap diva.

Monday, June 16, 2008

The gas crisis in Western Australia continues to deepen with more businesses standing people down without pay. Businesses have been instructed to turn off non-essential items including limiting the number of lifts and reduced lighting; domestic customers are also urged to reduce energy use.

In the Federal parliament today Resources Minister Martin Ferguson raised the prospect of activating the Liquid Fuel Emergency Act. “During such a situation, I can control the production, transfer and stock levels of crude and liquid fuel…While I sincerely hope that this will not be required, the Liquid Fuel Emergency Act provides authority for the Australian Government to prepare for and manage a national liquid fuel supply emergency,” he said.

Western Australian Premier Alan Carpenter called on all Western Australians to reduce energy usage, saying that the situation could be managed with on going co-operation, while reassuring everyone that the crisis will be short, with the Apache Corporation expected to begin partial operations in two months. Supplies were interrupted after a fire at Apache’s Vanarus Island refinery, which supplied 30% of the state’s natural gas requirements.

An Alinta spokesman has said that with the expected cold weather during the next week demand will put further pressure on supplies, advising that it is critical that all consumers limit energy usage.

Alinta requests that residential customers;

• use only essential heating and limit it to one room
• turn down hot water system by 10 degrees
• reduce shower times
• wash in cold water.

While suggesting small businesses;

• shift production schedules
• bring forward maintenance and shut down schedules
• turn off equipment not essential to the business.

Saturday, May 20, 2006

The People’s Republic of China has announced the completion of an enormous dam across the Yangtze River, an important milestone for the world’s largest hydroelectric project. The official Xinhua News Agency reports the event as a “landmark in the construction of the project.”

Launched in 1993, the Three Gorges Project, including the 2,300 metre long, 185 metre high dam with 26 power generators, is being built in three phases on the middle reaches of the Yangtze River – China’s longest river. Built with over 16 million m³ of concrete, the Three Gorges Dam is considered the biggest reinforced concrete dam in the world.

The Three Gorges Reservoir is capable of holding nearly 40 billion m³ of water, including a space of 22.15 billion m³ for extra flooded water. With a length of more than 6,300 km and a natural fall of 5,400 metres from the west to the east, the flood-prone Yangtze River is the third largest in the world.

The gigantic project is expected to generate around 15 million megawatts of electricity, 84.7 billion kWh annually when the entire project is completed in 2008. But whilst proponents of the world’s largest hydropower project laud the increased electricity generation and improved flood control as benefits to China, opponents claim destruction of the environment, ruin to China’s cultural heritage – disaffecting millions of local residents.

“In my view, building the Three Gorges dam is a ridiculous and evil farce,” says dam opponent Dai Qing. “Many people have known something is wrong with the project, but few have dared to speak up,” she said. After it becomes operational, the 660km reservoir created by the dam will drown 13 towns, 4500 villages and 162 archaeological sites.

Friends of the Earth (FoE) are also strident vocal critics. “The dam is having a titanic social and environment impact,” the group said this week. “Sometimes people are being moved out by truncheon and bulldozer because they refuse to leave their home for fear of not being rehoused. Human rights violations are massive and brutal,” it said. FoE pointed to evidence that the dam was already having a serious environment impact.

FoE points to a scientific study by the East China Normal University in Shanghai, published in March in Geophysical Research, which said that in 2004, the Three Gorges dam has reduced the supply of sediment to the Yangtze delta to just 35 per cent of the norm.

Millions of tonnes of silt are drawn along the Yangtze river every year, and critics argue the dam will intercept much of it – with potentially disastrous consequences. They say the lack of sediment further downstream would lead to soil erosion, and the accumulation of sediment in the reservoir could raise the dam level, submerging even more land.

Opponents say the reservoir could fill with the accumulated garbage from tens of millions of households. The China Yangtze River Three Gorges Project Development Corp. has spent $2.5 million on a vessel to collect as much as 7 million cubic feet of garbage that accumulates at the dam each year, according to Xinhua. Some argue that the impact of the dam project will contribute to the extinction of the rare Yangtze river dolphin.

The dam project will force the relocation of a total of 1.13 million people, and communities that have lived in the area for millennia will disappear. Researchers warn sedimentation and rising water levels in the reservoir will lead to the evacuation of tens of thousands more people.

But as the waters rise, that which can not be saved will disappear along with some world famous natural scenery. Critics say the dam is under threat from earthquakes, with two geological fault lines nearby. Officials working on the project counter this by saying the worst that can happen is a tremor measuring 6.0 on the Richter scale, while the dam is built to withstand force 7.0.

“Although the dam is now complete, we still have a long way to go and cannot become self-satisfied or relax our efforts in the least,” Li Yongan, general manager of the Three Gorges Project Development Corp, said. The official China Daily in an editorial called for people to remember the more than 100 workers whom died during the dam’s construction. “The best possible way to repay such a debt of gratitude is to make sure the highest safety and quality standards are observed up till the very end of the entire building process,” the editorial said.