Author: Serkadis

  • Teaching Earth Science with Children’s Literature: Arctic Lights, Arctic Nights

    images-1.jpg

     

    Arctic Lights, Arctic Nights is a story written by Debbie S. Miller and illustrated by Jon Van Zyle.  Miller, a resident of Fairbanks, chronicles the seasonal changes that occur throughout the Alaskan wilderness.  The book starts and begins on June 21st, the summer solstice, and provides descriptions of how the animals that live in Alaska survive in the quickly changing environment.  With each page the author provides how many hours of daylight Fairbanks receives and the sunrise and sunset times for the 21st of each month.  Some of the animals that are included in the book are the bear, wolf, moose, rabbit and sandhill crane.  The important role the sun plays in the ecosystem of Alaska is highlighted throughout the book.  The aurora borealis are mentioned but there is also another phenomenon that is discussed that may not be as popular as the northern lights. That phenomenon is known as sun dogs, sun dogs are refracted light halos that form in ice crystals of cirrus clouds and are easily seen during the day.  This book is easy to read yet provides a wealth of information about the Land of the Midnight Sun.

    Curriculum Connections
    Arctic Lights, Arctic Nights is appropriate for instruction in a number of different lessons and activities. It can be used in the instruction of weather observations, the sun as a source of energy and warm, seasonal changes and how they affect animals, weather phenomena and the motions of the Earth and sun.  Arctic Lights, Arctic Nights is an excellent book to explain that the length of a day or night is closely related to your location on our planet. (SOL K.9a, 1.6a, 1.7a, 2.7a, 4.6a)

    Additional Resources

    • Fog in a Jar this activity is easy and related to weather and can be used to teach students about the atmopshere.
    • Cloudscapes this lesson plan is about the four types of clouds and allows students to make clouds using cotton balls.
    • Digital model of Earth rotating around the sun, this can be used to explain why the days in Alaska are so much longer in the summer and why the nights are long in the winter.

    Book: Arctic Lights, Arctic Nights
    Author: Debbie S. Miller
    Illustrator: Jon Van Zyle
    Publisher: Walker Publishing Company
    Publication Date: 2003
    Pages: 28
    Grade Range: 1-4
    ISBN: 0-8027-9636-2

  • Tip:Watch Amazon Unboxed videos on your Windows Mobile phone

    It seems most people do not know their Windows Mobile phones are supported by Amazon’s unboxed video service. image_thumb15The key is to select in the  Amazon Unbox Player to automatically download the portable file by going into Settings | Preferences and choose the option “Also download portable video files when downloading videos”.image4_thumb Individual mobile videos can also be downloaded by right clicking on the video and select “Download portable file to this PC”.

    image25_thumbThe last step is to connect your device, click on the devices tab and click on the transfer button.

    Read the tutorial in more detail at Simplemobilereview.com here.

    Has anyone given this a try?  Let us know how well it works below.

    Via WindowsPhoneThoughts.com

    Share/Bookmark

  • Deadlock between PPP, MQM ends

    areview.co.cc: Most of the issues have been settled down between PPP and MQM after day-long talks in Karachi after the interference of parties top leadership. MQM members will participate in todays Sindh Assembly meeting. Federal Interior Minister met with Governor Sindh Dr. Ishratul Ebad in which both the leaders contacted the President, the Prime Minister, the Chief Minister and MQM leadership in London and Rabta Committee. According to sources, most of the issues have been settled down between both the parties after the interference of top leadership and MQM members will participate in Sindh Assembly meeting today. After reaching Karachi this morning, Redman Mali met with Governor Ishratul Ebad and afterwards he held a meeting with MQM delegation. The Interior Minister also met with PPP Core Committee and ANP delegation while he held a meeting with MQM delegation again. However, it produced no results. Then top leadership of both the parties interfered to end this deadlock. President Zardari directed Redman Mali to remain in Karachi till the end of deadlock.

    Share/Bookmark

  • Santa Anita Park Race 3 Horse Racing Betting Pick Wednesday 2-3-09

    With our free horse racing selection on Wednesday for our forum audience we will select from Race 3 at Santa Anita. These four year old and up horses will be going 6 ½ furlongs on the turf in Allowance company. It is scheduled for 5:03PM Eastern Time and you can watch it on TVG. With our free pick we will play on #1 Cherokee Heaven to win.

    Cherokee Heaven will have the services of Joe Talamo in the irons and is trained by Martin Jones. This 6 year old is coming off a nice winning effort over the 6 ½ furlong downhill turf course as he posted a 100 Brisnet number in a non graded stakes event at Santa Anita on January 2nd. This huge form improvement came with the jockey switch to Joe Talamo. Cherokee Heaven has 4 lifetime wins in 11 turf races. This one is by Cherokee Run. Martin Jones is off to a good start at the meet saddling 6 winners in 15 starts with an impressive 14 in the money finishes.

    Play #1 Cherokee Heaven to win race 3 at Santa Anita 9-2 on the Morning Line.

    Post Time at 5:03PM Eastern Time televised by TVG

    Courtesy of Tonys Picks

  • Baby gray whale ‘putting on quite a show’ off Malibu Pier

    Whale Play

    Sightseers are gathering on the Malibu Pier and TV helicopters are hovering overhead to catch a glimpse of a baby gray whale that’s been swimming just off the coast for the last 24 hours.

    The 20- to 30-foot-long whale showed up around 10 a.m. Tuesday, moving close to shore and within several feet of the beach near the Beachcomber restaurant. Although whales frequently travel through Malibu, they rarely make extended stopovers, said Joann Waugh, assistant manager at Malibu Outfitters on the pier.

    "For Malibu pier specifically, it’s a rare thing to see," Waugh said.

    Onlookers say the baby gray has been playful, swimming under the pier and popping its head out of the water vertically and then sinking back down, a move called spyhopping.

    "He’s putting on quite a show, with all the helicopters flying around him," Waugh said.

    She said mother whales may travel closer to shore so their babies do not have to hold their breath as long in the shallower waters. But the mother was nowhere to be seen, onlookers said.

    — Amina Khan

    Photo: Baby gray whale cavorting near Malibu Pier. Credit: David Iino,  Beachcomber chef

  • Biochar Production for Industrial Agriculture





    In my last post on biochar we discussed the best way to accumulate a sufficient inventory of corn stover.  It must be kept dry in a large bulk storage shed and allowed to continue air drying to produce a uniform and predictable feedstock.  The next challenge is to produce the biochar itself.
    My suggestion is to build a modified incineration device that is rigged for top down charging unto a well raised grill.  The maximum temperature will be 600 degrees.  The idea is to allow the heat to break down the organics allowing the produced carbon to crumble and fall through the grill.  The operating temperature brings this about.  Some ignition may occur but it is minimized by a lack of oxygen.
    As the charge roasts off, it dramatically compresses on a one for ten ratio and is easily shaken through the grill allowing recharging through the top loading device.  One can envisage a ten ton charge, been recharged five tons at a time as the produced carbon passes the grill. Thus once established, the process becomes fairly continuous although there will be variation in the produced gases.  We are avoiding significant ignition within the chamber as much as possible and using heat to reduce the plant waste.  This will be a slow process taking some time and may be as much as half a day, though The nature of the plant waste suggests that it may be much quicker.
    The produced carbon can be built up in the chamber underneath the grill and should be designed to store a fair amount.  The lower portion of the carbon will cool down, perhaps with an assist from a little water or steam.  However the lower layers of carbon powder should naturally cool to allow an auger to remove the lowest layers.  The main danger is that if the temperature is too hot, it is capable of spontaneously igniting.  Thus removal must be monitored and preferably kept in an airless environment during the process.
    The heat is produced by the process gas itself which contains all the produced volatiles and is passed into a second chamber for combustion at high temperature at around 2000 degrees.  This is high enough to reduce all the components safely and produce a hot flow of CO2 loaded air that is partially fed back into the main chamber under the grill.  This delivers high quality process heat into the charge from the bottom up.  Once established, I see no reason to introduce oxygen at this stage.  Even it the charge climbs well past the 600 degree mark, the lack of oxygen will keep it under control.
    I suspect that operating experience will suggest lower temperatures closer to 400 degrees as sufficient and even preferable in terms of product quality.  This design allows such experimentation.
    Also such a system might be operated automatically after final charging and allowed to cool down over night in order discharge the carbon in the morning.  After all it will simply run out of fuel in the form of process gas.
    This becomes a simple system.  The first chamber handles the bulk and operates at a fairly low temperature range so it can be constructed with low cost fire bricks and ordinary sheet steel.  It is really a large wood stove.  The main thing is to keep it fairly air tight.  This prevents any of the produced carbon from burning unnecessarily.
    The second chamber receives production gases at a temperature of 600 degrees.  It is blended with air and burned immediately bringing the temperature to 2000 degrees.  Some of this well oxygenated output gas to fed back into the first chamber to deliver heat.  The remainder is sent through a boiler to strip the excess heat out of the gas before it is vented.  That heat may be used then to produce power or operate a greenhouse.
    In fact, the needs of green house operations suggest that this can be best integrated with biochar production.  Green houses need hot water during the fall, winter and early spring.  The corn stover is delivered during September and October, and its consumption is easily fitted into the winter schedule of the greenhouse.  The system can then be left idle during the growing season when plant waste is not available, temperatures are high and no biochar is needed for planting.
    Greenhouses are always looking for energy sources that are outside the hydrocarbon regime, and most never quite solve the problem.  I think that this is a solution in corn growing country.
    I have not discussed the possibility of developing a cash economy around this whole process.  I first had to make it internally profitable for each participant.  For the farmer, he trucks his ten tons of chopped and gathered corn stover to the biochar facility in exchange for at least a ton of biochar in the winter in preparation for spring sowing.  He solves a disposal problem and way more importantly, he receives a powerful soil amendment in sufficient quantity to do some good and encourage repetition.
    The operator has the capital cost of the plant and storage shed.  He does not have the cost of building up inventory.  He gains a revenue stream from power production and that should be significant and also attract financing support.  If the heat is additionally fed into a greenhouse operation, it is reasonable that the whole process will turn out to be profitable.  Again, it is all working regardless of the biochar market itself.
    The operator will also produce a surplus of biochar depending on his terms of trade.  It could be as much as is handed back to the farmer.  There is presently no market, but one should evolve rather quickly as farmers see the value of blending it with fertilizer.  Farmers not producing corn will quickly begin buying up the surplus for their fields.  Thus we develop a biochar market.
  • Silent Hill composer/producer joins Grasshopper Manufacture

    After leaving suddenly Konami in December of last year, longtime Silent Hill producer and composer Akira Yamaoka has found a new home the Goichi Suda-led Grasshopper Manufacture. Japanese magazine Famitsu recently talked to both Yamaoka and

  • Virgin Racing presenta el VR-01, su nuevo monoplaza

    Buenas noticias nos llegan desde las escuderías novatas de esta nueva temporada de la Fórmula 1. Virgin Racing ha sido la primera de ellas que ha presentado su nuevo monoplaza. El encargado de diseñarlo ha sido Nick Wirth y ha recibido el nombre de VR-01.

    Virgin Racing - VR-01

    El propio Wirth afirma que el diseño por ordenador es “el diseño del futuro” ya que no han empleado el tunel de viento. Tras esto, el VR-01 será el primer monoplaza de la historia de la máxima categoría del motor que es diseñado de esta manera, veremos que tal funciona sobre la pista.

    Estoy seguro que se nos medirá según como de rápido vaya el coche en Jerez la semana que viene, pero espero que, vaya como vaya, ello no desmerezca el gran logro que es construir un equipo desde cero, con el valor y convencimiento que ello requiere. En muchos sentidos esto es una exploraciónm pero dada la confianza que tenemos en nosotros mismos, no puedo evitar sentirme tremendamente entusiasmado, con lo que podremos llegar a hacer dentro de unos años. De momento tengo ganas de ver al VR-01 en pista durante las próximas semanas, mientras nos preparamos para el primer gran premio de Virgin Racing.

    Related posts:

    1. Lotus presenta la escala de su monoplaza que será usada en el túnel de viento
    2. Sauber C29, el nuevo monoplaza de la escudería BMW-Sauber
    3. Ferrari F10, el monoplaza para la temporada 2010
  • Toyota: Recall cost 20,000 sales in January

    Toyota’s recall of 2.3 million vehicles cost its dealers 20,000 sales in January, according to Toyota Division General Manager Bob Carter. Carter said that Toyota’s January sales, including Scion, fell 19 percent from January 2009 to 83,279 vehicles, compared to 102,565 the same period a year ago. Lexus sales were up 5 percent in January to 15,517 units.

    Carter told reporters that Toyota’s January numbers came in 23 percent below the brand’s own internal forecasts for the month. He said that halting sales of eight key models in the U.S. made it difficult for Toyota to interpret month-end results.

    Carter said that he has been talking to dealers in the past few days as the Japanese automaker deals with faulty gas pedal being responsible for unintended acceleration.

    “Dealers are telling me consistently there is minimal to no effect on our business,” Carter said. “Most of our consumers are confident in the brand, and many of them are just delaying their purchases if they’re in the market.”

    – By: Omar Rana

    Source: Automotive News (Subscription Required)


  • Los Lunas Decalogue Stone


    This item lets me return to the subject of the biblical Bronze Age.  Because the Bible is essentially our only intact text from the era and is central to a classical education, a huge amount of human effort has gone into piecing together as much as is possible of related histories.

     

    I have argued that the core narrative of the Bible can be placed during the two centuries preceding 1159 BCE with overlap.  I will not chase all details here, but it is sufficient to recognize the ascendancy of the Sea Peoples who sported the right number of tribes and were represented in Palestine by the Philistines.

     

    I have accepted that the Sea Peoples were the Atlanteans based out of the delta city of Atlantis established near Gibraltar.  Recent work has located evidence of the city itself.  The Sea Peoples were a confederation of mostly coastal palace based states that controlled the market for bronze.   They came to dominate not just the Atlantic seaboard but also the Mediterranean littoral as demonstrated by the reports of the Philistines. The rise of Tyre as a Phoenician city is likely contemporaneous but may simply have been conquered.

     

    In fact it is likely that all coastal cities at this time came under the effective control of these European Sea peoples as they secured markets for their bronze.

     

    I also accept the thesis that the Homer’s world is situated in the Baltic and that the events possibly took place in the generation preceding 1159 BCA.  This has been confirmed from the text itself by Da Vinci a couple of years ago.

     

    The bronze itself came from North and South America and left a deep archeological record behind just about everywhere it was possible to mine copper and also tin.  Lake Superior and Petosi are the two most spectacular examples.  Atlantis was the natural port of entry as Seville was in a later age and also the natural choke point to control the trade.

     

    New Mexico is copper country of course and access by sea is much easier than say Lake Superior.  Thus I am not surprised to find an artifact like the Los Lunas Decalogue stone.

     

    What this article informs us of is that the Judaic Yahweh and much of the material may well be derived from Atlantean sources rather than Mesopotamian sources or Egyptian sources.  In fact it is obvious that the confederation of Atlantis adopted the idea of an alphabet and this emerged in many unique forms to adapt to the various tongues spoken.  That the Greek version emerged in improved form makes it look inevitable, but it was not.

     

    There was likely never a tribe of Atlanteans but there certainly was a dominant city that managed the bronze trade.  Hekla’s blast in 1159 BCE, destroyed the Atlantic littoral and Atlantis.  The Bronze Age ended there and then as no new copper flowed out of the Americas.  The tributary cities and colonies such as the Philistines withered with exceptions such as the Phoenicians.

     

    This was followed by a dark age, particularly in Northern Europe as agriculture collapsed with the collapse of the bronze market.  This triggered movement of refuges southward which wiped out exposed place states such as Mycenae.

     

    Please note the surety of the date 1159 BCE.  All other related dates have a huge margin of error and should not be trusted at all.  Classical Greek history begins to properly emerge around five hundred years later and the only records on hand appear to be in whatever passed for the Athenian library.  Athens had been founded as a palace city and had survived down to classical times.  Thus whatever we have retained of Atlantean culture has been passed down to us by the Athenians directly or by the Bible indirectly.

     

    Los Lunas Decalogue Stone

    Most people have never even heard of the Los Lunas Decalogue Stone, but it is truly one of the greatest historical mysteries of North America.  If you tried to tell most history teachers that the Ten Commandments arrived in North America long before Christopher Columbus did, most of them would tell you that you are absolutely nuts.  But that is apparently exactly what happened.   The existence of the Los Lunas Decalogue Stone suggests that there is a whole lot more to the history of North America than we have been told.  So just what is the Los Lunas Decalogue Stone?  It is is a huge flat stone on the side of a mountain in New Mexico.  The mountain is known as Hidden Mountain, and it is located near Los Lunas, New Mexico – approximately 35 miles south of Albuquerque.  It is what is written on this massive stone that is so remarkable.  This very large stone actually has the Ten Commandments inscribed on it in ancient paleo-Hebrew script with a few letters of ancient Greek mixed in.
    Paleo-Hebrew (which the Phoenecians also used) is a language that nobody in the world speaks anymore.  It is substantially different from the modern Hebrew that the Jewish world uses today.
    So where in the world did these Ten Commandments written in paleo-Hebrew come from?
    Back in 1996, Professor James D. Tabor of the University of North Carolina-Charlotte was able to interview Professor Frank Hibben about the Los Lunas Decalogue Stone. Hibben, who passed away in 2002, was a retired University of New Mexico archaeologist. According to Tabor’s account, Hibben was absolutely “convinced that the inscription is ancient and thus authentic. He reports that he first saw the text in 1933. At the time it was covered with lichen and patination and was hardly visible. He was taken to the site by a guide who had seen it as a boy, back in the 1880s.”
    The scholars who have delved into this great mystery estimate that the stone is anywhere from 500 to 3000 years old. There are other native American inscriptions nearby that are estimated to be approximately 2000 years old.  Most who have studied the stone are almost certain that the Los Lunas Decalogue Stone pre-dates the arrival of Christopher Columbus in North America.
    So how in the world is it possible that a copy of the Ten Commandments written in paleo-Hebrew showed up in North America long before Christopher Columbus “discovered” America?
    One key to this great mystery may be the Phoenicians.
    You see, the Phoenicians were the greatest seafaring people of the ancient world. The Phoenicians originally lived in what is known today as Lebanon, and they founded a vast array of settlements all around the Mediterranean during the course of their travels. In fact, they founded the great city of Carthage in North Africa and they also founded the great Etruscan civilization in Italy. It is historically documented that the Phoenicians got as far as Spain during their voyages, and many scholars now believe that the Phoenicians ultimately were able to cross the Atlantic and arrive in North America.
    The reality is that if any ancient civilization would have been able to cross the Atlantic ocean, it would have been the great seafaring Phoenician people.
    So who exactly were the Phoenicians? Well, the truth is that they were Israel‘s next door neighbor to the north.  Israel tended to war with all of the other nations surrounding it, but history tells us that they had good relations with the Phoenicians.  The great ancient cities of Tyre and Sidon were Phoenician cities.  In fact, Phoenicians greatly helped in the building of Solomon’s Temple.  The relationship was so close that the Greek historian Herodotus (484-425 A.D.) actually referred to the Israelites as the “Phoenicians”. It is also a fact that the ancient paleo-Hebrew language and the ancient Phoenician language were virtually identical.
    That is why the inscription on the Los Lunas Decalogue Stone is often referred to as a “Phoenician” inscription.
    It is also documented that the Phoenicians carried their religions with them wherever they traveled.  In fact, one scholar discovered that the Phoenicians actually brought the worship of the Lord God of Israel with them to Italy….
    —-
    Early 19th century noted antiquarian scholar, Sir William Betham, studied the Celtic origins of Europe, and his studies of early Italy were published in a two-volume work, “Etruria Celtica.” Betham reproduced ancient coins from the kingdom of Utruria, in Italy, known as the Etruscan civilization. Interestingly, several of the Utrurian coins discovered were minted in honor of their deity, which was none other than Yahweh, God of the Hebrews!
    —-
    So did Phoenicians bring the Ten Commandments with them to North America?  Could it have been Israelites who were traveling with Phoenicians?  Nobody knows.  It is still a great mystery.  But it does appear that the most reasonable answer is that the greatest seafaring people by far of the ancient world, the Phoenicians, came to North America and brought the Ten Commandments with them.
    When investigating this stone, many people begin to wonder if it has anything to do with Mormonism.  The truth is that it has absolutely nothing to do with Mormonism.  Instead it has everything to do with the scattering of the people of Israel – just like God said that He would do.
    You see, the Los Lunas Decalogue stone is yet another clue about what happened to the ten lost tribes of Israel.  These ten lost tribes are known in the Scriptures as the northern kingdom of Israel or sometimes they are simply referred to as “Ephraim”.  Ephraim was one of the most dominant tribes in the northern kingdom, and just as God said in His Word, He scattered Ephraim (the northern kingdom) over the face of the entire earth. The Los Lunas Decalogue stone is evidence that they may have even been scattered as far as North America.
    For even more information about the Los Lunas Decalogue Stone, check out the short YouTube video posted below….
  • Shock Blocker

    This is an innovative idea.  Shock and blood loss has always appeared a losing combination for the victim and certainly a swift killer.  Having an intervention able to halt and stabilize the process now appears plausible.
    Weapon injuries are obvious but car accident injuries are as difficult because we often get a lot of internal damage.  Having a pill or injection available to a first responder is a certain lifesaver and should be applied even as a precaution until the patient reaches full facilities.
    Anyway, this is a very important trick that will save lives by buying time.  The sooner it is broadly available the better.
    Drug could turn soldiers into super-survivors
    27 January 2010 by Linda Geddes
    A LUCKY few seem to be able to laugh in the face of death, surviving massive blood loss and injuries that would kill others. Now a drug has been found that might turn virtually any injured person into a “super-survivor”, by preventing certain biological mechanisms from shutting down.
    The drug has so far only been tested in animals. If it has a similar effect in humans, it could vastly improve survival from horrific injuries, particularly in soldiers, by allowing them to live long enough to make it to a hospital.
    Loss of blood is the main problem with many battlefield injuries, and a blood transfusion the best treatment, although replacing lost fluid with saline can help. But both are difficult to transport in sufficient quantities. “You can’t carry a blood bank into the battlefield,” says Hasan Alam of Massachusetts General Hospital in Boston. “What we’re looking for is a pill or a shot that would keep a person alive for long enough to get to them to a hospital.”
    We’re looking for a pill that would keep a person alive for long enough to get them to hospital
    When the body loses a lot of blood, it tries to compensate by going into shock. This is a set of emergency measures to raise blood pressure and conserve energy, such as increasing heart rate and shutting down expression of some proteins. However, if the body stays in shock for more than a short time, it can lead to organ failure, and death soon follows.
    Recent studies have suggested that around 6 or 7 per cent of genes change their expression in response to shock, via the removal of “epigenetic”, chemical additions to the genome called acetylations. As histone deacetylase (HDAC) inhibitors can prevent the removal of such acetylations, Alam wondered if these drugs might improve survival after blood loss.
    His team previously showed that valproic acid, an HDAC inhibitor already used to treat epilepsy, increased survival rates in rats that had lost a lot of blood. It seemed to be doing this by preventing acetylation, causing certain “survival pathways” to remain switched on.
    Now Alam has repeated the study in pigs. He anaesthetised the animals, drained 60 per cent of their blood, and subjected them to other injuries before giving them a saline transfusion. He then injected some of the pigs with valproic acid, gave others a blood transfusion and left the remainder untreated.
    Just 25 per cent of the pigs receiving only saline survived for 4 hours – the typical time it takes to get hospital treatment – while 86 per cent of those injected with valproic acid survived. All those that had a blood transfusion lived (SurgeryDOI: 10.1016/j.surg.2009.04.007).
    Alam is currently repeating the trial to make sure valproic acid does not hinder survival in the longer term. If so, he will apply for permission to do human trials by the end of the year.
    “It’s exciting,” says John Holcomb of the Center for Translational Injury Research at the University of Texas in Houston. “They’re looking at resuscitation in a different way.”
    Earlier studies by Alam’s team showed that rats that naturally survive traumatic blood loss also experience fewer changes in gene expression than those that die or suffer complications. He thinks the same might be true in humans. “Every person has this capacity to survive a huge insult, but most of the time it’s dormant,” he says. “That’s why the same insult kills some people while others laugh and move on. What we’re trying to do is make you super-resistant using the pathways and proteins that already exist.”
    However, Graham Packham of Southampton General Hospital, UK, who is investigating the use of HDAC inhibitors to treat cancer, says it isn’t yet clear how valproic acid, which reacts with a wide range of molecules, is actually prolonging survival. “It’s not clear whether this is driven by valproic acid’s epigenetic activity,” he says.
  • Reconsidering the financial crisis

    MIGHT the financial crisis have been an acceptable price to pay for the gains that came along with the risk factors that caused it? To answer that question we must first determine what, exactly, caused it. Many things contribute to the crisis’ severity. A primary cause was a mispricing of risk related to two factors: financial engineering run amok and flows of capital from abroad. But it’s important to keep in mind that each of these factors either contributed to or resulted from rapid growth in very poor countries. In that sense, is the economic pain we experience now worth it?

    Financial engineering made it possible to obfuscate risk. New models left investors exposed to too much risk because bankers who created, sold and bought the engineered securities were either ignorant, deluded, or devious. Because risk was not accounted for properly, credit was extended to the most naïve or greedy when it should not have been; with a proper accounting such credit would only have been available at prohibitively high interest rates. Banks levered up along the way, nearly taking the financial system down with them. Does this mean financial engineering was a horrible mistake? Must we strike all financial science from business school curricula, forsake the guilty academic journals, and systematically re-employ quantitative analysts to more “productive uses” like designing wind turbines?

    Irresponsible, even unethical, choices were made using financial engineering. But blaming financial innovation for the financial crisis is like blaming the car maker for an accident caused by a drunk driver.

    Financial innovation is meant to diversify risk and make it more transparent by assigning it a price. When it serves that function, people do benefit. For example, commodity futures have brought greater stability and capital to emerging markets. The last decade had been notable because the structured debt and bond insurance market grew exponentially in Asia. This provided more liquidity and more stable capital flows to emerging markets there, allowing for more infrastructure investment. It led to development in countries like India, lifting millions of people from crushing poverty. So far, according the Bank of International Settlements, these structured products have held up well during the crisis. Is there scope for similar abuses to those that happened in America? Absolutely, but that does not mean structured debt is pure trouble, it just means it needs to be better understood and carefully implemented.

    Should we then big lending foreign governments? If it weren’t for them there wouldn’t have been so much credit sloshing about in the first place. Certain Asian countries got very rich very fast and sent their wealth abroad. The glut of excess capital meant it became very cheap and plentiful. So it became too easy for the American economy to become over-levered and due diligence was neglected when it came to risk management.

    Following the trauma of the Asian financial crisis, some governments thought it was prudent fiscal policy to build up a large stock of savings and invest it in safe assets abroad. For certain countries this policy may have been a touch mercantilist (meaning it kept the value of their currency low to make exports more attractive). But to some degree it was also just a desire for stable currencies and capital flows in emerging markets. And again, much of this capital was wealth coming from the same growth which allowed many people to escape poverty.

    Economic recovery will probably be anaemic and hardest on the most vulnerable Americans. On the other hand, many people in developing countries now earn regular wages rather than the hard and insecure life of subsistence farming.

    That’s little comfort to Americans struggling to keep their homes and feed their families. In economics an outcome is only considered an improvement if someone is made better off and no one else is made worse off. Alas, that is not the situation here; many American families are now much worse off. Granted it is far better to be poor in America and Europe than in India, but that does not alleviate the relative pain of economic hardship and uncertainty.

    The important lesson is this is not necessarily a zero sum game. A billion people may have escaped unthinkable poverty because of factors related to the crisis and many Americans now struggle. But that was not the inevitable outcome. Financial innovation does not have to be used recklessly. Countries like China could begin to see the value in re-investing wealth domestically, using it to provide a social safety net, or consume more. And while opening markets to compete with cheaper foreign labour often results in a loss of jobs at home, this does not necessarily mean people are worse off in the long run. It means the American labour force has to be retrained. The transition period may be painful, but even then everyone benefits from access to cheaper goods. 

    Rather than demonise all the factors that caused the crisis, it is important to look critically at the benefits each offer and the risks they pose. Then perhaps we can learn important lessons so that next time we all win.

  • Celebrations!!

    BHPIANS,
    well the story is that we are blessed with a healthy baby boy on 28th of January,2010.Was thinking to share this news with you all since few days but some way or the other when ever i was thinking of opening this site, he would have waked up,cried or made me busy with him,so finally tonight thought to share it with you all.His name is decided as well after lots of fighting with my daughter, AARAV means peaceful which i hope he does remain till he can:D.Enjoy.
  • Last Rebellion hitting the PS3 on February 23rd

    There aren’t many turn-based RPGs out there anymore, but count on NIS America to hook you up on that end. Coming exclusively to the PS3 on February 23rd is Last Rebellion, which introduces a new twist to

  • Chrome vs. Firefox: Top 5 Weather Add-Ons (Part 2: Firefox)

    For a few years, the biggest single advantage Firefox had over its competitors were the highly popular add-ons, which bolt on functionality to the basic browser. Granted, for most of this time, it didn’t really have any competitor. Internet Explorer was the de facto browser for most people not by choice but simply because it came bundled wi… (read more)

  • Sony is ‘Thinking About Charging’ for PSN [Sony]

    The most common charge leveled at the Xbox 360 by Playstation 3 devotees is that Microsoft dares to charge for its Xbox Live service, unlike the free PSN. Not for long!

    Back in November, a presentation slide revealed that Sony had a paid subscription plan in the works for PSN. And now Peter Dille, the head of PSN, had this to say in an interview with IGN:

    Will we charge for it or why don’t we charge for it? It’s been our philosophy not to charge for it from launch up until now, but Kaz recently went on the record as saying that’s something we’re looking at. I can confirm that as well. That’s something that we’re actively thinking about. What’s the best way to approach that if we were to do that? You know, no announcements at this point in time, but it’s something we’re thinking about.

    Now the question is what exactly will they be charging for. Will they charge for online multiplayer, like Xbox Live? Or will they offer up some new premium goodies to entice people to pay up while leaving the current offerings up for free? In any case, it looks like there’s soon to be a little less ammo in the console wars. But don’t worry, Sony fanboys: you still have Blu-ray. No one can take that away from you. [IGN via TFTS]






  • Brazil Approves Construction of Controversial Dam in the Amazon

    The Belo Monte dam would be the world’s third largest, but critics say its benefits have been overstated.

    Brazil’s government issued an environmental license for the construction of the Belo Monte dam on a tributary of the Amazon River, Reuters reports.

    The company that wins the bid to build the dam will have to pay $800 million and fulfill 40 conditions designed to reduce the environmental and social costs.

    “The environmental impact exists but it has been weighed up, calculated and reduced,” said Environmental Minister Carlos Minc, according to Reuters.

    Cost estimates for the project range from $9 billion to $17 billion. The facility – to be built on the Xingu River in Para state – will generate enough electricity to power 23 million homes, the BBC reports. Only China’s Three Gorges and the Itaipu dam along the Brazil-Paraguay border are larger.

    More than 12,000 people will be relocated and nearly 100 square miles of rainforest will be flooded because of the embankment. But critics of the dam say that costs are not being adequately assessed.

    “No one knows the true cost of Belo Monte,” said Aviva Imhof, campaigns director for International Rivers in a press release.

    “The project would displace tens of thousands of people, and destroy the livelihood of thousands more. Even as Brazil argues that the international community should support rainforest protection, its government insists on promoting mega-infrastructure projects in Amazonia that are socially and environmentally indefensible.”

    Critics also argue that the dam will produce less than 10 percent of its electrical generating capacity during the four-month dry season.

    Additionally, President Luiz Inacio Lula da Silva has had a series of problems with Brazil’s environmental agencies. Silva’s push to build dams in the Amazon caused his environmental minister Marina Silva to resign in the spring of 2008. Meanwhile the environmental protection agency led by Silva often refused to issue licenses for large dam projects, according to the New York Times. President Silva split the agency into regulatory and licensing functions in 2007, prompting its employees to strike.

    More protests are expected since the dam has been approved. Local opposition groups will be holding demonstrations this week in Para, according to International Rivers.

    “We want to make sure that Belo Monte does not destroy the ecosystems and the biodiversity that we have taken care of for millennia. We are opposed to dams on the Xingu, and will fight to protect our river,” the chief of the Kayapo indigenous group said in International Rivers’ press release.

    Source: Reuters, BBC, International Rivers

  • Rosenberg: Forget The “Flat” Pending Home Sales Number, Here’s The Real Disaster

    rosie feb3rd chart

    In this morning’s Breakfast With Dave newsletter, analyst David Rosenberg talks housing. More specifically, vacant housing.

    The amount of vacant homes in America has hit an all time high again and will contribute to pressure on those who rent their homes.

    Breakfast With Dave: The 1% rebound in the pending home sales index was more than just a tad disappointing after that 16.4% plunge in November. That points to a flat reading in existing home sales in January (after that massive 16.7%, to 4.45 million annualized units, in November). In addition, we just got the Q4 data from the Census Bureau which showed that the total number of vacant housing units, instead of declining, rose to a near-time high of 18.876 million — up 33k from Q3 and up 291k from Q2. The key ‘vacant for sale’ component also increased to 2.087 million from 1.985 million in Q3 and 1.904 million in Q2.

    The shadow inventory (vacant units but held off the market “for other reasons”) — rose 3.497 million units from 3.403 million. Fully 13.4% of the housing stock is currently vacant and that degree of excess capacity is very likely going to exert ongoing downward pressure on residential rents and precipitate another downleg to housing prices.

    Join the conversation about this story »

    See Also:

  • A million sold for Scribblenauts

    It may not be as hyped-up as the other million-copy sellers, but Scribblenauts is living proof that quality and innovative gameplay still sells better than ads and publicity. With the Best Handeld Game award (Uncharted-2-gets-top-honors-in-Game-Critics-Awards-Best-of-E3-2009/pg/49/aid/132411) from the

  • New Range of High-Precision Gear Racks for Machine Tools Applications

    ATLANTA Drive Systems, Inc. is pleased to announce a new range of High-Precision Gear Racks developed specifically for machine tool applications requiring the highest levels of precision and power.

    This new rack range is precision manufactured in a controlled environment, achieving a tooth quality of DIN 4, with total pitch error of less than twelve microns over a meter length and a parallelism tolerance of less than fifteen microns.

    The high precision pitch of the racks can eliminate the need for electronic compensation and the high precision parallelism allows for drives with extremely low backlash without the need for preloading.

    These racks are available in straight and helical versions, in modules 5, 6, 8 and 10, with linear force capacities up to 45,000 lb. Comprehensive & accuracy inspection reports, as well as patented measuring and assembly aids, are available on request.

    For more information, please contact ATLANTA Drive Systems at: (800) 505-1715, or on the web at: www.atlantadrives.com.