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End-game memorandum

I was reading a reaction/review to something awful recently, I think it was the new Doritos Loco Taco or something, and one of the commenters said it was “Evil, but amazing.” I can’t help but think of that in relation to this story about a confidential memo regarding the global financial system and the nominal governments in its employ:

The year was 1997. US Treasury Secretary Robert Rubin was pushing hard to de-regulate banks. That required, first, repeal of the Glass-Steagall Act to dismantle the barrier between commercial banks and investment banks. It was like replacing bank vaults with roulette wheels.

Second, the banks wanted the right to play a new high-risk game: “derivatives trading”. JP Morgan alone would soon carry $88 trillion of these pseudo-securities on its books as “assets”.

Deputy Treasury Secretary Summers (soon to replace Rubin as Secretary) body-blocked any attempt to control derivatives.

But what was the use of turning US banks into derivatives casinos if money would flee to nations with safer banking laws?

The answer conceived by the Big Bank Five: eliminate controls on banks in every nation on the planet — in one single move. It was as brilliant as it was insanely dangerous.

How could they pull off this mad caper? The bankers’ and Summers’ game was to use the Financial Services Agreement (or FSA), an abstruse and benign addendum to the international trade agreements policed by the World Trade Organisation.

Until the bankers began their play, the WTO agreements dealt simply with trade in goods – that is, my cars for your bananas. The new rules devised by Summers and the banks would force all nations to accept trade in “bads” – toxic assets like financial derivatives.

Until the bankers’ re-draft of the FSA, each nation controlled and chartered the banks within their own borders. The new rules of the game would force every nation to open their markets to Citibank, JP Morgan and their derivatives “products”.

And all 156 nations in the WTO would have to smash down their own Glass-Steagall divisions between commercial savings banks and the investment banks that gamble with derivatives.

The job of turning the FSA into the bankers’ battering ram was given to Geithner, who was named Ambassador to the World Trade Organisation.

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Frickin’ Fracking

Via Juan Cole, Michael Klare at Tomdispatch on The Third Carbon Age:

When it comes to energy and economics in the climate-change era, nothing is what it seems.  Most of us believe (or want to believe) that the second carbon era, the Age of Oil, will soon be superseded by the Age of Renewables, just as oil had long since superseded the Age of Coal.  President Obama offered exactly this vision in a much-praised June address on climate change.  True, fossil fuels will be needed a little bit longer, he indicated, but soon enough they will be overtaken by renewable forms of energy.

Many other experts share this view, assuring us that increased reliance on “clean” natural gas combined with expanded investments in wind and solar power will permit a smooth transition to a green energy future in which humanity will no longer be pouring carbon dioxide and other greenhouse gases into the atmosphere.  All this sounds promising indeed.  There is only one fly in the ointment: it is not, in fact, the path we are presently headed down.  The energy industry is not investing in any significant way in renewables.  Instead, it is pouring its historic profits into new fossil-fuel projects, mainly involving the exploitation of what are called “unconventional” oil and gas reserves.

The result is indisputable: humanity is not entering a period that will be dominated by renewables.  Instead, it is pioneering the third great carbon era, the Age of Unconventional Oil and Gas.

That we are embarking on a new carbon era is increasingly evident and should unnerve us all. Hydro-fracking — the use of high-pressure water columns to shatter underground shale formations and liberate the oil and natural gas supplies trapped within them — is being undertaken in ever more regions of the United States and in a growing number of foreign countries.  In the meantime, the exploitation of carbon-dirty heavy oil and tar sands formations is accelerating in Canada, Venezuela, and elsewhere.

It’s true that ever more wind farms and solar arrays are being built, but here’s the kicker: investment in unconventional fossil-fuel extraction and distribution is now expected to outpace spending on renewables by a ratio of at least three-to-one in the decades ahead.

Read the rest at the link.

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12 Years Ago Today

Via Pierce, an ignominious anniversary of malfeasance. Everything that we have done to ourselves, and the world, in the time since to combat the catastrophic act it permitted is the legacy of this encompassing act of petulance.

That he won re-election after this was known is a tribute to treachery and deceit, not to mention an overwhelming fear of same-sex marriage and the depravity to stoke it.

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A Great American

James Arthur Baldwin, born today in 1924. He hit the jackpot all right, and handed the winnings directly over to us.

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Disconnect on Energy

Back from the sunny Med. Where to begin? There is all kinds of stuff, but K at BJ had a really good post on local municipal utilities, even in conservative areas, breaking away from the nationalized ALEC propaganda about alternative energy, doing their own thing, saving money and generally moving ahead smartly:

Just 10 weeks after breaking ground, construction of Bryan Municipal Utilities’ solar generation project has been completed, and power is being supplied to Bryan’s electrical grid.
BMU broke ground for the $7.42 million solar array in early December 2011. By mid-January 2012, all 23,530 solar modules were in place, and by the first week of February, the solar plant was fully operational.
“The solar arrays are producing just as expected, and we have seen them perform up to the maximum capacity of 1.8 megawatts on sunny days,” said Steve Casebere, director of utilities.
As of February 13, the solar field has produced 100 MWh, which means it has also produced 100 solar renewable energy credits. BMU sold 2,500 solar RECs produced in 2012 to American Electric Power and Duke Energy for $606,500.
In addition to the power and energy credits, what the solar plant does not produce is valuable. With the energy produced to date, the solar field has saved 76 tons of carbon dioxide and 3.6 tons of methane gas emissions.

Meanwhile, as she says, conservative and libertarian lobbyists dig in against these and other success stories.

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Away ’13

Tried to upload a photo, but we’re so far away WP doesn’t want to play along.

Just take my word for it, we’re away.

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Every Man is aware

On the 99th anniversary of the assassination of Archduke Franz Ferdinand of Austria, an excerpt from Erich Maria Remarque’s All Quiet on the Western Front:

We wake up in the middle of the night. The earth booms. Heavy fire is falling on us. We crouch into corners. We distinguish shells of every calibre.

Each man lays hold of his things and looks again every minute to reassure himself that they are still there. The dug-out heaves, the night roars and flashes. We look at each other in the momentary flashes of light, and with pale faces and pressed lips shake our heads.

Every man is aware of the heavy shells tearing down the parapet, rooting up the embankment and demolishing the upper layers of concrete. When a shell lands in the trench we note bow the hollow, furious blast is like a blow from the paw of a raging beast of prey. Already by morning a few of the recruits are green and vomiting. They are too inexperienced….

The bombardment does not diminish. It is falling in the rear too. As far as one can see spout fountains of mud and iron. A wide belt is being raked.

The attack does not come, but the bombardment continues. We are gradually benumbed. Hardly a man speaks. We cannot make ourselves understood.

Our trench is almost gone. At many places it is only eighteen inches high, it is broken by holes, and craters, and mountains of earth. A shell lands square in front of our post. At once it is dark. We are buried and must dig ourselves out….

Towards morning, while it is still dark, there is some excitement. Through the entrance rushes in a swarm of fleeing rats that try to storm the walls. Torches light up the confusion. Everyone yells and curses and slaughters. The madness and despair of many hours unloads itself in this outburst. Faces are distorted, arms strike out, the beasts scream; we just stop in time to avoid attacking one another….

Suddenly it howls and flashes terrifically, the dug-out cracks in all its joints under a direct hit, fortunately only a light one that the concrete blocks are able to withstand. It rings metallically, the walls reel, rifles, helmets, earth, mud, and dust fly everywhere. Sulphur fumes pour in.

If we were in one of those light dug-outs that they have been building lately instead of this deeper one, none of us would be alive.

But the effect is bad enough even so. The recruit starts to rave again and two others follow suit. One jumps up and rushes out, we have trouble with the other two. I start after the one who escapes and wonder whether to shoot him in the leg-then it shrieks again, I fling myself down and when I stand up the wall of the trench is plastered with smoking splinters, lumps of flesh, and bits of uniform. I scramble back.

The first recruit seems actually to have gone insane. He butts his head against the wall like a goat. We must try to-night to take him to the rear. Meanwhile we bind him, but in such a way that in case of attack he can be released at once….

Suddenly the nearer explosions cease. The shelling continues but it has lifted and falls behind us, our trench is free. We seize the hand-grenades, pitch them out in front of the dug-out and jump after them. The bombardment has stopped and a heavy barrage now falls behind us. The attack has come.
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EPA Rolls [over]

There’s one thing about electing a progressive president, well there are many, actually. But one is that, even though media narratives coalesce around ‘a political savior’ or whatever, no one actually thinks that. It’s just a great relief not have a C-plus Augustus at the helm for a while. Otherwise, all other caveats about agitation, feet and fire hold true. You keep your expectations high, no matter what. Obama can disappoint, as can his agencies; that doesn’t mean I don’t like him or what he’s said he stands for or that his progressive stance was all a ploy all along. But some things may make you wonder.

Residents of Pavillion, Wyoming, had been complaining for years that their well water started smelling and looking foul after the oil and gas company EnCana began drilling in a previously drilled field near their homes. Some contracted weird health problems, including neurological disorders and rashes, after drinking or bathing in the stuff.

After their concerns were essentially passed over by both EnCana and the state of Wyoming, the EPA stepped in to conduct its own tests in 2008. As ProPublica and High Country News reported, the agency found suspicious quantities of hydrocarbons and trace contaminants in residents’ wells that could be linked to gas development. Then, after drilling two 1,000-foot-deep monitoring wells, the agency found high levels of benzene and other carcinogens in the deep groundwater underlying Pavillion. An EPA report released late in 2011, concluded that:

(P)ollution from 33 abandoned oil and gas waste pits – which are the subject of a separate cleanup program – (was) indeed responsible for some degree of shallow groundwater pollution in the area. Those pits may be the source of contamination affecting at least 42 private water wells in Pavillion. But the (deep) contamination, the agency concluded, had to have been caused by fracking.

Then:

On June 20, though, after vigorous complaints from industry and Wyoming that the agency flubbed its study, as well as years of delays, the EPA announced that it is abandoning the project completely.

I remember JamesWatt. And if you don’t look him up. THAT was a travesty. But this is serious. We can do better. We have to.

Via LGM.