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.

Saturday, February 27, 2010

An 8.8 magnitude earthquake was recorded in Chile on Saturday, killing at least 214 people and causing significant structural damage. The earthquake was felt in Chillan, Talca, Concepcion, and the capital Santiago. Sea level recording triggered tsunami warnings for Chile, Peru, and Ecuador. The earthquake, which started at 06.34.14 UTC, was felt as far as Argentina.

This earthquake occurred at the boundary between the Nazca and South American tectonic plates. The two plates are converging at a rate of 80 millimeters per year.

The Pacific Tsunami Warning Center has announced that a tsunami warning is in effect for much of the Pacific Rim, including parts of Oceania and Central America.

According to the BBC, “large waves” have struck Chile’s Juan Fernández Islands, reaching halfway into one inhabited area. Three people are missing local media says. Reuters reported the Tsunami hit Tahiti at 16.50 UTC, where the BBC reports that the first waves were “smaller,” measuring only 36 centimeters.

According to the AFP, part of the Marquesas Islands in French Polynesia was hit by a 13 foot wave. No casualties have been reported.

The New Zealand Herald reported New Zealand evacuated coastal areas at 8:00 AM local time (18.00 UTC). Waves of 20 centimeters or less were reported at the Chatham Islands (400 miles from the New Zealand mainland) at 19.05 UTC. The Ministry of Civil Defense told the BBC that “the greatest wave heights will occur between six and 12 hours after the initial arrivals.”

Coastal waters in Hilo, Hawaii were reported as “visibly receding” at 11:30 AM local time (21.30 UTC) by Hawaii News Now.According to MSNBC, a 5 1/2 foot wave reportedly made land fall on Hilo Bay, Hawaii a short while after 12:00 P.M. local time (22.00 UTC).

Saturday, August 5, 2006

Three of Sweden’s ten nuclear reactors have been shut down due to safety concerns following an incident last week at the Forsmark Nuclear Power Plant, in which the reactor cooling systems failed. The reactor has since been shut down there. After the incident, the Swedish Nuclear Power Inspectorate, SKI asked all the nuclear power plants to demonstrate that the same failure could not happen in them. On Wednesday, two more reactors at Oskarshamn were shut down after the operator said their safety could not be guaranteed.

Last week’s incident at the Forsmark plant was triggered by a short circuit that cut power to the reactor cooling system. Two of the four backup generators also failed to start, but the remaining two worked and were sufficient to meet the plant’s needs. Greenpeace reports that the fault in the backup power systems were traced to new equipment installed in 1993.

The spokesman of the Swedish Nuclear Power Inspectorate Anders Bredfell denied that there was any danger of a meltdown, adding that there was also a backup gas turbine to power the cooling system in an emergency.

However, Lars-Olov Höglund, who was responsible for the nuclear plant Forsmark for many years, said the incident was the most dangerous one since Chernobyl and Three Mile island, and that a meltdown was avoided only by pure luck. His views have however been questioned as he is involved in litigation with the Swedish nuclear industry and is known as an outspoken nuclear critic. Researchers at the Royal Institute of Technology as well as the personnel at the power plant were critical of Höglunds’ view.

Speaking to BBC News, SKI spokesman Anders Bredfell said that the International Atomic Energy Agency (IAEA) was informed of the incident as required and that the incident classes as a ‘2’ in the 0-7 scale used by the IAEA to assess the severity of the incident.

Another reactor in Forsmark and a fifth at Ringhals nuclear power plant have been offline due to planned maintenance work. With five of its ten reactors down, Sweden’s power generation capacity is down by almost a fifth.

The environmental group Greenpeace called on the government to shut down all reactors and probe whether the fault was a generic one. The Green Party has called for an independent investigation of the incident. Sweden is scheduled to retire all its nuclear power plants in the next few decades, as decided by a referendum in 1980.

Thursday, August 25, 2005

The 30A network has said that it wants to create a carnival atmosphere while protesting at the Forbes Global CEO conference. The protest, which starts on August 30, is expected to attract up to 2,000 protesters. Similar events in the past often had instances of violent confrontations between police and some of the activists. The 30A network is a loose affiliation of groups and individuals co-ordinating the protest.

30A spokesman Bruce Knobloch, of the International Socialist Organisation, made the call for a peaceful protest in a press release last week.

“We want a safe community action showing that people in Sydney oppose Howard¹s plan for a US-style wages system, the war in Iraq and his kow-towing to global corporate chiefs. We pose no threat to the Opera House or the millionaire delegates, or to other users of east Circular Quay,” Mr Knobloch said.

The conference will be held at the Sydney Opera House. The Forbes website says that at the event “senior figures from the world’s leading companies and institutions will discuss the best ways to nurture and capitalize on innovation and reveal the latest global trends.” It was recently announced that George Bush Sr will be attending the conference, along with former New York mayor Rudolph Giuliani, Prime Minister John Howard, and former NSW Premier Bob Carr.

Mr Knobloch described the attendees as “a few hundred neo-conservative corporate chiefs”.

The protesters have been denied access to the Opera House forecourt for the duration of the conference. Mr Knobloch believes that this decision is unjustified. He also accused the police of deliberately creating the conditions for confrontation.

“The police seem intent on creating chaos and confrontation, which is the last thing we need. We’ve urged police to build a barrier in front of the Opera House proper and to allow us to use the public space in the forecourt. By pushing us out into the CBD the police are going to create problems for commuters and business owners,” he said.

30A protestors this week organised a media conference outside Surry Hills Police Station, requesting a meeting to negotiate an agreement. According to an article on Sydney Indymedia, police at the station were unable to discuss the issue, but told 30a representatives that they would be contacted to organise a meeting.

“Minimising the protesters right to peacefully rally dramatically increases police powers and strikes at the heart of protesters’ democratic right to peaceful assembly,” the article said.

ASIO has assessed the conference to be “medium risk”, and this has been used by the police and government to justify the increased security.

Thursday, April 28, 2005

Friday, March 16, 2007

The European Space Agency‘s Mars Express spacecraft has discovered ice deposits in the south pole of Mars that are larger than the state of Texas.

Scientists say that there is enough water in the deposits to cover the entire planet with up to 36 feet of water if the ice was to melt. Some sections of the ice deposits are up to 2.3 – 2.5 miles deep. The ice is composed of carbon dioxide, a little bit of dust, and water (90 percent of the water is estimated to be frozen).

What has caught the attention of the scientists working on the Mars Express project is that this may help reveal whether or not there is any (microbial) life within the ice.

Another perplexing question that scientists are trying to solve is what happened to all the water that produced all the channels on the surface of Mars.

Jeffrey Plaut, who is from NASA’s Jet Propulsion Laboratory in Pasadena, California and who is also leading the study, noted that, “We have this continuing question facing us in studies of Mars, which is: where did all the water go? Even if you took the water in these two (polar) ice caps and added it all up, it’s still not nearly enough to do all of the work that we’ve seen that the water has done across the surface of Mars in its history.”

Currently, only 10 percent of the water is remaining and is located at the poles of Mars. It has been suggested that some of the remaining 90 percent of the water that disappeared could either be underground or could have simply left the atmosphere into space.

Monday, April 11, 2005

Anna Ayala, the Las Vegas woman who claims to have found the notorious “chili finger” at a Wendy’s outlet in San Jose, California, has filed lawsuits against other businesses, according to researchers at the Associated Press. Her previous court battles included the national El Pollo Loco chicken-chain, a previous employer, and even General Motors.

Ayala successfully won her suit for medical expenses against El Pollo Loco, after her daughter Genesis contracted salmonella poisoning from eating at the restaurant. However, Ayala lost another suit in 2000 claiming that a wheel fell off her car.

Ayala’s original account of the incident spoke “emotionally and with disgust” to the San Jose Mercury News when she described it to the paper.

“Lies, lies, lies, that’s all I am hearing. They should look at Wendy’s. What are they hiding? Why are we being victimized again and again?” Ayala recently told The Associated Press. Ayala is now in her Las Vegas home, avoiding reporters.

“It doesn’t prove anything,” family spokesman Ken Bono told the San Francisco Chronicle. “My mom has 10 lawsuits. A lot of people have lawsuits. Why would she sue for money? She has plenty of money,” he said.

Nick Muyo, a spokesman for the San Jose Police department, said not to expect new information in the case for at least a week.

“We just want to step back and take a deep breath,” Muyo told Knight Ridder Newspapers. “From a law enforcement point of view, once you establish it is a human finger, you have to wonder is this a case of industrial accident or is this a case of unreported homicide,” he said.

Las Vegas police searched Anna Ayala’s home on Wednesday, retrieving a cooler and other effects from her home, such as a makeup case.

Despite the incident, which has dramatically reduced sales at Northern California Wendy’s outlets, die-hard Wendy’s fans are still turning up for lunch, even at the outlet where the finger was found, at 1405 Monterey Highway, just south of downtown San Jose.

“We’ve eaten here for years,” a police officer told the San Francisco Chronicle under the condition that he remain anonymous. “They’re very nice people. When we work Spartan Stadium, we always eat here,” he said.

San Jose City Council candidate Andrew Diaz still eats the chili. And he witnessed the finger discovery.

“I walked away real slow,” Diaz told the San Francisco Chronicle. “I didn’t want any commotion,” he said.

Sunday, May 4, 2014

The Central Narcotics Bureau (CNB) of Singapore announced yesterday the first arrests made following the listing of New Psychoactive Substances (NPS) as Class A controlled drugs on Thursday, under the First Schedule of the Misuse of Drugs Act. The suspects, two unnamed male Singaporeans, aged 22 and 23, were reportedly arrested at a shopping center in Tampines on Friday evening for possession of synthetic cannabis, also known as “K2”. Authorities recovered 71.7 g of the drug from the suspects.

Under suspicion from the CNB that the 22-year-old suspect was engaged in trafficking of the illegal substance, a further search of his home yielded an additional 22.3 g of synthetic cannabis, raising the total amount of the drug confiscated following the arrests to 94 g.

Synthetic cannabis, listed as an NPS, and known as a “legal high”, is one of a group of designer drugs created to stimulate the effects of controlled drugs including cocaine, Ecstasy, methamphetamine, and heroin. The CNB has linked NPS abuse to symptoms including severe intoxication, hallucinations, paranoia, seizures, cadiovascular problems, renal failure, and death.

Typically having chemical structure very similar but slightly different from controlled drugs, these substances have been illegalized, and their possession, consumption, trafficking, and manufacturing now carry penalties comparable to that of controlled drugs. Last year, under the Fifth Schedule of the Misuse of Drugs Act, designed to study NPSs before their illegalization, they could be confiscated by authorities, but no further penalty would be levied.

The changes to NPS status follow increases over the past year in NPS trafficking and consumption, according to the CNB. Commenting on the move, a spokesperson for the CNB revealed the organization has reported at least thirty NPS seizures in the period from last May through this February. “Thus far,” the spokesperson noted, “synthetic cannabinoids and synthetic cathinones are the two more commonly detected NPS”.

Termed an “alarming new drug problem” by the United Nations Office on Drugs and Crime, its World Drug Report 2013 indicated an increase to 348 NPSs in 2013, up from 251 in 2012. Capitalizing on their legality — which no longer holds in Singapore — NPSs have been known as “legal highs”, “research chemicals”, “plant food”, and “bath salts”.

Commenting on the illegalization of NPSs, Ng Ser Song, the director of the CNB, had this to say. “The drug situation is challenging and the number of repeat drug abusers and young drug abusers remains a concern. With the abuse and trafficking of NPS on the rise, listing these new psychoactive substances as Class A controlled drugs signals our unequivocal stance that these substances are illegal and no different from other controlled drugs.”

Under the recently enacted First Schedule of the Misuse of Drugs Act, if found guilty of drug trafficking, the 22-year-old suspect may be penalized with a minimum of five years in prison and five strokes of the cane. The act also allows the possession or consumption of New Psychoactive Substances to be punished with a maximum of 10 years imprisonment and/or a $20,000 fine.

Wednesday, April 18, 2007

The Supreme Court of the United States on Wednesday April 18 has upheld the federal Partial-Birth Abortion Ban Act of 2003. The 5-4 vote reflected the change in vote count resulting from the retirement of Justice O’Connor and the confirmation of Chief Justice Roberts and Justice Alito.

The Intact dilation and extraction procedure, also known as partial birth abortion, involves removing an intact late-term fetus from the womb via the cervix. While it is a relatively rare operation – 0.17% of all abortions in the US in 2000, it has become a focal point in the abortion debate.

The Partial-Birth Abortion Ban Act bans the procedure in cases where the fetus is terminated during the operation, unless it is performed to to save the life of the mother.

Justice Kennedy wrote in the opinion of the court: “respondents have not demonstrated that the Act would be unconstitutional in a large fraction of relevant cases.” Further, he said, “Respondents have not demonstrated that the Act, as a facial matter, is void for vagueness, or that it imposes an undue burden on a woman’s right to abortion based on its overbreadth or lack of a health exception. For these reasons the judgments of the Courts of Appeals for the Eighth and Ninth Circuits are reversed.”

In a concurring opinion, Justice Thomas stated that he joins “the Court’s opinion because it accurately applies current jurisprudence, including Planned Parenthood of Southeastern Pa. v. Casey, 505 U. S. 833 (1992).”

In dissent Judge Ginsburg wrote: “Today’s decision is alarming. It refuses to take Casey and Stenberg seriously. It tolerates, indeed applauds, federal intervention to ban nationwide a procedure found necessary and proper in certain cases by the American College of Obstetricians and Gynecologists.”

Justice Kennedy’s words also recall the complicated issues of standing related to such cases. An issue in Roe v. Wade was the impossibility of any individual having standing in a court proceeding regarding abortion rights, since court proceedings take more than the 9 months of pregnancy, retiring any individual plaintiff’s standing before an appeals process can take place. The criterion of “a large fraction of relevant cases” may effectively deny standing to any plaintiffs who wish to litigate particular restrictions in some relevant future cases.