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A Year Later, The Bundesbank Has Repatriated Only 37 Tons Of Gold (Of 700 Total) | Zero Hedge

A Year Later, The Bundesbank Has Repatriated Only 37 Tons Of Gold (Of 700 Total) | Zero Hedge.

The Colorado River flows through the town of Rifle in Garfield County, Colorado. Photo (taken 1972) by David Hiser,courtesy of U.S. National Archives, Flickr/Creative Commons.
The Colorado River flows through the town of Rifle in Garfield County, Colorado. Photo (taken 1972) by David Hiser, courtesy of U.S. National Archives, Flickr/Creative Commons.

This week, more evidence came in that hydraulic fracturing (or fracking) poses potentially serious risks to drinking water quality and human health.
A team of researchers from the University of Missouri found evidence of hormone-disrupting activity in water located near fracking sites – including samples taken from the Colorado River near a dense drilling region of western Colorado.
The Colorado River is a source of drinking water for more than 30 million people.
The peer-reviewed study was published this week in the journal Endocrinology.
Fracking is the controversial process of blasting water mixed with sand and chemicals deep underground at high pressure so as to fracture rock and release the oil and gas it holds. It has made previously inaccessible fossil fuel reserves economical to tap, and drilling operations have spread rapidly across the country.
The University of Missouri team found that 11 chemicals commonly used in the fracking process are “endocrine disrupters” – compounds that can affect the human hormonal system and have been linked to cancer, birth defects, and infertility.
“More than 700 chemicals are used in the fracking process, and many of them disturb hormone function,” said Dr. Susan Nagel, associate professor of obstetrics, gynecology, and women’s health at the University of Missouri School of Medicine and a co-author of the study, in a news release.
“With fracking on the rise, populations may face greater health risks from increased endocrine-disrupting chemical exposure.”
The research team collected samples from ground water and surface water from sites in Garfield County, Colorado, where fracking fluids had accidentally spilled, as well as from the nearby Colorado River, into which local streams and groundwater drain. They also took samples from other areas of Garfield County where little drilling has taken place, as well as from a county in Missouri where there had been no drilling at all.
They found that the samples from the spill site had moderate-to-high levels of endocrine-disrupting activity, and the Colorado River samples had moderate levels.  The other two samples, taken from areas with little or no drilling activity, showed low levels of endocrine-disrupting activity.
The new findings add urgency to calls for moratoriums on fracking until the risks have been fully assessed and regulations and monitoring put in place to safeguard water supplies and public health.
Due to the so-called “Halliburton loophole,” the oil and gas industry is exempt from important requirements under the federal Safe Drinking Water Act, and states have been slow to fill the regulatory gap.
Colorado, in particular, should exercise the utmost caution.
According to a report by Ceres, a Boston-based non-profit organization that educates investors about corporate environmental risks, 92 percent of Colorado’s shale gas and oil wells are located in “extremely high” water stress regions, defined as areas in which cities, industries and farms are already using 80 percent or more of available water.
Adding contamination risks to the high volume of water fracking wells require – typically 4-6 million gallons per well – argues strongly for a precautionary approach to future development and a pause in existing production until the full range of environmental health risks can be assessed.
But Colorado Governor John Hickenlooper has said the state will sue any city that bans fracking within its borders.  Indeed, in July 2012, the state sued the front-range town of Longmont, which had issued such a ban.
A statement about the new findings of endocrine-disrupting chemicals (EDCs) in waters near fracking sites issued by Concerned Health Professionals of New York, and posted here, concludes with this warning:
“These results, which are based on validated cell cultures, demonstrate that public health concerns about fracking are well-founded and extend to our hormone systems. The stakes could not be higher. Exposure to EDCs has been variously linked to breast cancer, infertility, birth defects, and learning disabilities. Scientists have identified no safe threshold of exposure for EDCs, especially for pregnant women, infants, and children.”
And environmental health expert Sandra Steingraber writes in a letter posted at the same site:
“[I]t seems to me, the ethical response on the part of the environmental health community is to reissue a call that many have made already:  hit the pause button via a national moratorium on high volume, horizontal drilling and fracking and commence a comprehensive Health Impact Assessment with full public participation.”

 

After the Taper: The Fed’s Non-Plan Is Unchanged – Frank Hollenbeck – Mises Daily

After the Taper: The Fed’s Non-Plan Is Unchanged – Frank Hollenbeck – Mises Daily.

As an economist, it is getting more difficult to understand the logic underlying current monetary policy in the U.S. There are two main channels by which economists think monetary policy can influence growth and employment. The first is to lower interest rates to spur investment and consumption spending. The second is to induce inflation so real wages drop, spurring output and employment.

Since 2008, the central bank has reduced interest rates to almost zero with little to show for it. You can bring a horse to water in a trough, pond, or lake, but you cannot make him drink. Most of the added liquidity has found its way into excess reserves. Banks are not lending because they have few creditworthy customers who want to borrow. The household sector is still deleveraging and has less appetite for more debt, and the business sector is careful about making future investments in a financial and economic environment on unstable footing. Businesses are keenly aware of the malinvestments never cleaned up after the last bubble and of the price distortions of current monetary policy. Why would businesses stick their necks out if they suspect a painful adjustment is around the corner?

Since the first channel has failed, only the second channel remains. Economists are generally in agreement, however, that there is no long-run trade-off between inflation and unemployment. The Keynesians and monetarists believe that there may be a short-run trade-off. If people have adaptive expectations, (based on the recent past) then monetary policy that creates inflation will reduce unemployment by lowering a worker’s real wages. Of course, once a worker realizes he has been fooled, he will demand an increase in nominal wages to bring his real wages back up to previous levels. The gain in employment is only temporary. If, instead, people base their expectations rationally and are not fooled, the neo-classical position, there is no short- or long-run trade-offs between inflation and unemployment.

In a capitalist economy, relative prices play a crucial role in sending information to producers about what society wants. When one price goes up and another goes down, these are signals that tell producers to make more of the first good and less of the second. It is a complex system of signals with price changes reflecting the urgency of the needs within the reality of the law of scarcity. The most important aspect of a price system is the information it conveys to guide production.

Inflation causes an “information extraction” problem. When all prices are going up by different degrees, it is very difficult for an entrepreneur to distinguish between a relative and an absolute price change. Is a rising price a reflection of greater demand or inflationary pressure? That is, does it reflect a society’s changing needs or simply reflects a changed measuring stick (i.e., the value of money)? The same information extraction problem holds true with the prices of resources and labor. We have different labor markets with a wage gradient established along the production process. The printing of money interferes with this wage gradient and the information it conveys about the right proportion of capital and consumption goods to produce. Overall employment may initially improve but the gain is not worth the cost from the adjustment that must occur once the printing stops.

Looking at historical evidence, inflation leads to higher, not lower, unemployment. This should not be surprising. Inflation is like a wrench thrown into the workings of a capitalist system.

If economists agree that there is no long-term trade-off between inflation and unemployment, and the current Fed strategy to lower interest rates has failed miserably to boost growth, then we must ask, why is the Fed, even after this week’s taper, in effect printing $75 billion a month? It’s likely the goal is to induce inflation for a short-term gain in employment. Things are no better if the Fed’s strategy is to raise asset prices to induce an imaginary wealth effect. Yet multiple bubbles may pop before any wealth effect takes place. The Fed should not be playing the economy as a stake in a poker game.

Through multiple bubbles, Alan Greenspan’s monetary policy was responsible for massive human suffering worldwide. Yet Greenspan is living high on the hog with a comfy government pension, spending his spare time penning op-ed articles and dispensing his expert advice on the lecture circuit. He informs us that he was only human and that no one saw the bubble coming. This is less than ingenuous. If you play with fire, and you burn down the forest, it is criminal to say “I did not realize that playing with matches was dangerous.” The sad situation is that we recently replaced him with even bigger arsonists!

One can be certain that interest rates will shoot up once inflation picks up. Since most of the U.S. debt is short term, it is going to be very difficult to inflate prices to reduce the real value of the debt. How will the U.S. government react if it has to refinance at interest rates of 12 percent or more, like in 1981? Yellen is no Volker; will she be able to tame the inflation beast as Volcker did? The independent German central bank was powerless to stop the German government from using the printing presses during 1921-23.

Napoleon and Hitler, both responsible for millions of deaths, rode to power on a wave of discontent that followed periods of excessive monetary printing. Why are we taking such risks?

 

9 Mind-Blowing Facts About Money | Washington’s Blog

9 Mind-Blowing Facts About Money | Washington’s Blog. (FULL ARTICLE)

China Invented Every Form of Money

China:

  • Seized gold six centuries before Franklin Roosevelt, in order to prop up its fiat currency and prevent runaway inflation

Debt Forgiveness Is The Basis of Modern Civilization

Religions were founded on the concept of debt forgiveness.

For example, Matthew 6:12 says:

And forgive us our debts, as we forgive our debtors.

Periodic times of debt forgiveness – or debt “jubilees” – were a basic part of the early Jewish and Christian religions, as well as Babylonian culture.

David Graeber, author of “Debt: The First 5,000 Years” told Democracy Now:

If you look at the history of world religions, of social movements what you find is for much of world history what is sacred is not debt, but the ability to make debt disappear to forgive it and that’s where concepts of redemption originally come from.

Ambrose Evans-Pritchard wrote in 2009:

 

Bundesbank Warns China’s Currency “On Its Way To Becoming Global Reserve Currency” | Zero Hedge

Bundesbank Warns China’s Currency “On Its Way To Becoming Global Reserve Currency” | Zero Hedge.

 

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