NO TURNING BACK FOR ECONOMY

There is no “riding out” the current economic crisis. If you follow the news you hear comments like: we can ride this downturn out, things have been worse, it won’t last too long, and the economy will turn around and other similar non-reassuring commentaries. These people have their heads in the sand; things will not return to “normal.” The follow report from CNN is revealing
NEW YORK (CNNMoney.com) -- Americans are feeling a lot more economic pain than the government's official statistics would lead you to believe, according to a growing number of experts.
They argue that figures for unemployment and inflation are being understated by the government.
Unemployment and inflation are typically added together to come up with a so-called "Misery Index."
The "Misery Index" was often cited during periods of high unemployment and inflation, such as the mid 1970s and late 1970s to early 1980s.
And some fear the economy may be approaching those levels again.
The official numbers produce a current Misery Index of only 8.9 - inflation of 3.9% plus unemployment of 5%. That's not far from the Misery Index's low of 6.1 seen in 1998.
But using the estimates on CPI and unemployment from economists skeptical of the government numbers, the Misery Index is actually in the teens. Some worry it could even approach the post-World War II record of 20.6 in 1980.
"We're looking at government numbers that are really out of whack," said Kevin Phillips, author of the book "Bad Money."

Remember the recent reports concerning the government cover-up of key climate change data? The White House was concerned with data that did not back their views on climate change and subsequently censored data that contradicted that view. While it is understandable that the government would be concerned over economic panic, one recalls the Great Panic of 1929, it is nevertheless worse to lead the public down a primrose economic path.

The economy will not return to the way it was and this is a positive thing. Gas prices will not go down. Food will not get cheaper. Drilling for new oil will solve nothing. People have got to realize that we have reached a “planetary carrying capacity” with respect to our “normal” way of living. In other words, the planet cannot sustain life as we have known it at higher levels. Unless we fundamentally alter the way we live, problems will only worsen and accelerate.

Oil has reached its peak. Drilling for more will make little difference as demand has already exceeded supply, both current and future. The time is now, actually past due, to invest massive amounts of resources into a totally new supply of renewable, non-polluting form of energy. Just “Google” water powered cars and see the potential. On the food front, climate change has altered the way agriculture will do business. Large corporate farming is not the answer. When they are hit by floods and drought we are all too familiar with the outcome. It is way past time to support local, small scale agriculture. Just like the stock market, put all of your money in one fund and you are wiped out if it crashes. Diversity is the key and the same holds true with farming. Stop wasting money on the “junk food,” eat natural and support local.

No matter what aspect of society is examined, it is clear that change is here to stay. There is no turning back and trying to do so would not be very smart anyway. The past is not sustainable. These and many related issues are being discussed in thousands of forums on the internet. From the social network sites,” Humanity on Trail” and “Powerful Intentions” to blog and chat rooms, people are beginning to understand that we will not “ride out” the current crisis, rather we need to create a new world that makes some sense if we are to survive as a species. Rather than trying to cover things up, it is time for the government to recognize and admit to what is really happening and work with the people to chart a new direction for the sake of survival.

$4.90/GALLON!

We just received our contract price for fuel oil for next heating season and the price was $4.90/gallon. Our contract price for the 2007-2008 heating was $2.79/gallon. We used around 1,000 gallons to heat our home. We are not going to pay it! We have purchased a wood pellet furnace and bought 5 tons of pellets which should cover the majority of the heating season. Our pellet furnace, which is listed as carbon free, will be paid for in savings in one season! The pellets, at current prices, will save us some $3700/year. Assuming costs will rise proportionately, the pellets will always save us thousands of heating dollars every year while at the same time adding basically 0 carbon to the atmosphere.

Consumers are going to have to change their spending habits. Since the pellets are produced in Maine, it makes sense to alter our spending and use what makes sense for our region. This same approach would be wise to follow elsewhere. We have become so accustomed to mega-solutions that we have ignored a more rational regional approach to meeting our energy needs. While solar is certainly viable just about anywhere, at least as back-up power, it would seem to make sense to use it as a primary power source in sunnier regions. Wind turbine generators may be more viable in certain regions as would hydro in others.

It is no longer a question of being weaned off of oil imports. That option has passed. We have been hit upside the head by the oil rig 2x4 and the consumers must respond accordingly. While we can hope that a new administration will help our transition to more viable and environmentally friendly power supplies, don’t hold your breath. It could take years before the politicians, regardless of who is elected November, to make any kind of transitional financial support available. The power of oil is too entrenched to think that all will be right when we have a new president. Time is not on our side. If we wait for Washington to act, we will have lost the planet to the cockroaches. Smart money says bite the bullet and find alternative energy sources now. Buy high fuel efficient cars now-unfortunately they will probably have to be foreign since Detroit is still in its own dream world. And, while auto-makers are cutting back on making the big gas eaters, along with job losses, they do not get high marks for coming out with an affordable line of fuel efficient cars. Some of their hybrids to not get as good fuel economy as regular foreign imports and as usual; they will lag behind in innovation. Not sure what will come of it but the BBC had a report of a British auto-maker producing a gas vehicle that gets 80mpg. Apparently this is done by drastically reducing weight by using carbon fibers for the body work. Perhaps this is what we can do with all of the excess carbon, make cars with it.

On another front, the soaring cost of food has at least partly been attributed to the rise in the use of bio-fuels. “The food price index of the UN's Food and Agriculture Organization (FAO) rose by a steep but manageable 8% in 2006, but then much more sharply - by 24% - in 2007, and 53% in the first three months of this year alone - an unprecedented rise.” If you have shopped recently it is clear that prices are going up and as you know, once they are up, they tend not to come down too far. With gasoline basically at $4.00/gallon and a forecast of $5.00/gallon by September, it is clear that the consumer must act now to head off their own demise.

According to Michigan Business (5/31/08) “The steepest run-ups in food prices since 1990 are hurting grocery shoppers, restaurants and school cafeterias, but they're making others rich.
The winners in the new food economy include crop farmers selling corn and wheat for near-record highs after years of crushingly low prices. Ingredient makers like Cargill and ADM are rife with profits. Fertilizer and tractor companies are cashing in. Hedge funds who made big bets on rising wheat, soy and corn were spectacularly correct. Oil and gas companies, too - it takes natural gas to cook those Wheaties and diesel to haul them around the country.” Rising food and fuel prices are here to stay and there may even be spells of shortages. The American consumer will feel the bite, but they do not have to take the pain. Prudent and wise spending decisions now can soften the economic blow that lurks very large around the corner. Australian wheat is suffering under drought conditions and who knows what calamities are in store this summer.

Remember, you cannot rely on government to deal with these issues effectively. Just look at Louisiana and the toxic homes FEMA gave to those poor residents as housing. The recent NPR report about formaldehyde poisoning in the FEMA trailers should be a heads up regarding reliance on government. In my book, RAPING LOUISIANA: A DIARY OF DECEIT, government incompetence in dealing with disaster is well documented. Between energy and food issues, it would be wise to plan on how you will get through a not so short term period of economic contraction and transformation. With the power of the purse, the consumer can drive the changes in a way that makes sense. Time to wake up, read the signs of the times and take control of your life.

EAT AMERICAN MADE, OR...!

China has become an exporter of poisons and the poisons are in everything from toothpaste, eggs, teas, medicines, baby foods, herbs, vitamins, pet foods, fish, wheat, rice and who dares do guess what else? Given that the FDA inspects only 1% of food imports and tests only 0.5%, how safe do you think our food supply is?

China is one of the world’s leading producers of rice, corn, wheat, soybeans, vegetables, soybeans and pork. China is also the world’s leading producer of vitamin “C” and B12. Almost all of China’s food exports have come under close scrutiny by their trade partners. There have been bans by the EU, Japan and the U.S. What is unknown is what ingredients from China have made their way into the food production process. Even within China there have been reports of massive food poisonings including adults and babies.

According to the China Economic review, “The US rejects more food shipments from China than from any other country, AFP reported. The Food and Drug Administration (FDA) rejected some 257 Chinese food shipments last month, with at least 137 labeled "filthy" after testing positive for salmonella or for containing banned ingredients. The FDA seized more than 1,000 shipments of tainted cosmetics, food supplements and counterfeit medicine from China last month. Earlier this month, 4,000 pets died in the US from eating tainted pet food imported from China.”(5/21/07).

On Friday, May 25th, officials in Costa Rica seized more than 350 tubes of toothpaste that contained chemicals found in brake fluid and antifreeze. The toothpaste was made in China. There have been reported deaths from the use of such products in other countries.

There can be no doubt that all food imports from China must receive closer scrutiny. Is China the only country with tainted agricultural products? The answer is no and, in fact, the U.S. has had its share of banned agricultural products. The issue is the scope and the nature of the problem. Reports that Chinese tea is dried by using hot exhausts of trucks that run on leaded gasoline is very disturbing. And, the issue seems widespread across the total array of products from China from wheat to toothpaste.

The U.S. must put more money into its food safety and inspection programs. Aside from the immediate threat of poisoned imported foods, who knows what long term effects might emerge from hidden chemicals that have found there way into our food supply? Is it worth the risk to our children and grandchildren to allow them to ingest low level toxins?

The U.S. must alter its food policy. There is no reason to import food into this country. We have been the twentieth century food basket of the world and if we are not careful, we will become the 21st Century “death basket” of the world. Food is one item where we do not need to globalize. Impending climate changes will threaten food imports and if we are dependent on those imports, many will needlessly suffer. Once we lose agricultural lands to development, it will be hard to retrieve. Our goal must be to regain our food independence and to strongly support ag-land preservation. We should be thinking along the lines of regionalizing our food production system in the U.S., and not globalization. With fears of spreading contaminations brought on by global warming, the U.S. must give top priority to stabilizing and enhancing our own food production and position ourselves to help others who will definitely be in need. And, while our food system in not perfect; I would eat American any day over imports from who knows where?

THE POISONING OF AMERICA

First the dogs, then the cats and now the people! We are being poisoned by imported food. As dogs and cats were dying an outcry went out concerning the import of wheat and rice from China. We then found that the contaminated food, containing melamine, was fed to hogs and over three thousand were scheduled to be euthanized. We are now told that the contaminated food is in our poultry but the FDA says not to worry. Here is a portion of a warning that was just released by the FDA:

“IA #99-29, 4/27/07, IMPORT ALERT #99-29, "DETENTION WITHOUT PHYSICAL EXAMINATION OF ALL VEGETABLE PROTEIN PRODUCTS FROM CHINA FOR ANIMAL OR HUMANFOOD USE DUE TO THE PRESENCE OF MELAMINE AND/OR MELAMINE ANALOGS"TYPE OF ALERT: Detention Without Physical Examination (Countrywide)(Note: This import alert represents the Agency's current guidance to FDA field personnel regarding the manufacturer(s) and/or products(s) at issue. It does not create or confer any rights for or on any person, and does not operate to bind FDA or the public).PRODUCTS: Wheat Gluten Rice Gluten Rice Protein Rice Protein Concentrate Corn Gluten Corn Gluten Meal Corn By-Products Soy Protein Soy Gluten Proteins (includes amino acids and protein hydrosylates) Mung Bean ProteinPROBLEM: Poisonous or Deleterious Substance Unfit For Food Unsafe Food Additive.”

A very simple question that comes to mind is why do we import these things from China? We have the best agricultural land in the world and our farmers have fed millions outside of U.S. borders. Do we not produce enough wheat, corn, soy and rice to feed our nation? Why have we put the American citizens at risk by importing these products from a foreign land? The FDA says that only 1% of imported food is inspected. In this “age of terrorism” does this make any sense? With all of our imported food, inspection should be a top national priority. It is in our food supply that we are most vulnerable. Most foreign countries from which we import food do not have adequate food safety and inspection programs. Further, are there really tests that can detect bacteria, viruses or poison in our food supply? While there may be such tests, if only 1% of the imports are inspected, where does that leave the American public?While globalism may have its place some in some industries, food may not be one of them. Americans are getting increasingly ill through tainted foods. A whole new battery of food related illnesses and allergies have arisen from food that is not local, nor is not even grown in this country. We are no longer able to develop natural immunities by consuming foods that are natural to our environment.It is time to rethink our national food policies and support our local farmers and stop importing foods that we can easily grow here. The contaminated food from China is but one example of what may happen if someone is really serious about killing Americans without having to blow up buildings or highjack airplanes. And shame on the FDA for not getting this food off of the market. How can they even have the gall to say that the little bit of poison will not hurt us? What effect might this food have on our children? How much more food contamination has gone undetected?It seems that the Bush Administration is more concerned about putting corn in the gas tank than ensuring that Americans are not exposed to the deplorable scandal impacting what all of must do, eat.