Kiva Green Loans are intended to help individuals in low-income countries make eco-friendly changes, such as installing solar panels. Image: Flickr / theregeneration / CC BY-SA

In 2008, a small person-to-person lending company called Kiva launched. The person-to-person lending company has now added green loans and student loans to the financing portfolio. With these new products, Kiva hopes to hit $1 billion in microloans lent by 2015.

The basics of Kiva

Kiva was the first major online microloan site. The nonprofit organization matches investors with entrepreneurs and individuals who need small loans. Usually loans through Kiva are for amounts between $100 and $500, and the repayment rate is incredibly high, between 90 and 98 percent. Currently, Kiva members loan about $1 million every five days. Kiva is the only not-for-profit microlender, though there are other lenders who offer bad credit loans and microloans for a profit. There are borrowers in 59 countries that have used Kiva loans, mostly in low-income countries. Kiva also allows some loans in the U.S. , but not every type of loan.

Kiva adds green loans to lending options

In addition to the small-business loans and personal loans , Kiva now offers green loans. These loans are intended to be used for projects such as solar power, drip irrigation, converting farms to organic production and the creation of biofuels. The criteria for these loans remains the same as every other Kiva loan, and the investment amount also remains the same – $25 increments. Green loans can be personal or business-based and have the same repayment terms as every other loan offered on the site.

Student lending through Kiva

In three countries, Kiva is now also offering student microloans. Students in Bolivia, Paraguay and Ecuador are now able to get student loans through Kiva lenders. Students are given one to three years to pay back their loans, and lenders can track the progress of the student all the way to repayment. The program is stil considered to be in pilot status, but appears to be doing well.

The growth of microfinance

Prosper, Lending Club and several other microlending services launched at the same time as Kiva, in 2008. The Securities and Exchange Commission shut down these for-profit companies for not registering properly. These companies are mostly back up and running, properly registered. Microlending companies are starting to cut into the business of big banks and credit cards. These microloans are still relatively new, but as long as there is a market for small-dollar credit extended to individuals that may have bad credit, financial innovation in that industry will continue.

Sources

Kiva Green
Slate.com

China's central bank raised interest rates and the deposit reserve ratio in an effort to cool the nation's overheating economy. Image: Flickr/Dmantu CC-BY-SA

For the fourth time this year, China’s central bank announced Sunday that the biggest Chinese banks must hold greater cash reserves. The move is an attempt to curb Chinese inflation that is emerging as a serious threat to a global economy reliant on cheap Chinese exports. Meanwhile, Donald Trump, pandering for a presidential bid, proposed a 25 percent tariff on Chinese imports that was roundly ridiculed by economists.

China holds a tiger by the tail

By requiring that banks once again raise their deposit reserve ratio, China’s central bank has been trying to cool down the nation’s overheating economy by raising interest rates and reducing the amount of money available for loans. The announcement came on the heels of a government report that China’s economy has been growing at an annual rate of 9.7 percent, the most rapid pace in the world. China’s rapidly expanding economy has triggered inflation that the communist government fears will spawn a wave of social instability. Food and gas prices in China are soaring, and the price of a home has become far out of reach for the average annual income of Chinese citizens. To control food prices, Beijing has increased agricultural subsidies and is forbidding Chinese companies from raising consumer prices. The government has also raised wages, which has contributed to China’s mounting inflation problem.

China inflation a global threat

Too much of China’s economic growth, according to analysts, is due to inflationary government spending on real estate development and multi-billion dollar infrastructure projects such as roads and railways. Some predict that despite the government’s attempts to douse the flames, China faces a rate of inflation approaching 5 percent for the next decade. Such high inflation threatens China’s position as the dominant global source of manufactured goods. As Chinese wages and production costs rise, companies are asking higher prices for goods shipped overseas. Big Chinese customers such as the U.S. and Europe, faced with rising prices, will likely seek cheaper goods from other emerging economies. Should the Chinese economy contract, U.S. multinational companies such as General Electric and General Motors, which have tied most of their growth to the Chinese market, could suffer serious setbacks.

Trump’s tariff: a trade war nobody wins

China’s failures to cool its overheating economy are adding to pressure on Beijing from foreign governments to allow the yuan to rise in value and reduce its huge trade surplus. Donald Trump, posturing for a possible GOP presidential bid, is pushing a 25 percent tariff on Chinese imports. But experts say tariffs are a flawed response to China’s currency manipulation. Trump’s tariff would probably set off a trade war between the U.S. and China that would damage the global economy. A 25 percent tariff would make Chinese goods American consumers depend on more expensive, feeding U.S. inflation. China, which has become the No. 3 market for U.S. exports, could retaliate by closing that market to U.S. companies. Most analysts agree that a tariff would not to survive a Chinese appeal to the World Trade Organization, anyway.

Sources

New York Times

Associated Press

CNNMoney.com

Hundreds of metal safes and parcels of cash are turning up in the wreckage a month after the Japan earthquake and tsunami. Image: Flickr / Kordian / CC-BY-SA

As the waters receded from the tsunami triggered by the Japan earthquake, hundreds of metal safes washed away from ruined houses were found in the debris. Japanese police have been storing the safes and accepting cash found in bags, boxes and furniture turned in by honest citizens. Some of the loot may never be returned to its rightful owners in a society known for stashing cash at home instead of relying on banks.

Metal safes intact among the devastation

A month after the Japan earthquake and tsunami, cleanup workers and residents searching through the wreckage of the ravaged northeast coast are finding tens of millions of yen in cash and hundreds of safes. The safes recovered from the devastation are being stored by police. The Associated Press reports that police in the town of Ofunato have put hundreds of safes in the parking garage, displacing the department’s cars. Authorities believe there may be more than 25,000 tsunami deaths. It is expected that many safes and parcels of cash are likely to go unclaimed. Japanese law requires police to store unclaimed valuables for 90 days. If no individual comes forward with proof of ownership, the finder will be allowed to claim the cash. If no one claims the money, the government takes it.

Japanese hoard billions in cash

The Japanese government could probably use the money. Authorities estimate the cost of the earthquake and tsunami could approach $309 billion. The estimate includes losses due to wiped out homes, buildings and infrastructure, but not the stashes of cash stored at home in safes and other hiding places. In Japan, it has been customary, especially among elderly people uncomfortable with the idea of ATMs, to keep cash at home. According to Japan’s central bank, more than a third of 10,000-yen bills that are printed don’t circulate — about 30 trillion yen — about $354 billion at the current exchange rate. Old habits and convenience have led older Japanese, a growing segment in a rapidly aging population, to stash cash in safes, boxes and furniture. Many years of extremely low interest rates have provided little incentive for savings accounts.

Police may crack unclaimed safes

On Japan’s devastated northwest coast, more than 13,000 tsunami deaths have been confirmed as of April 11 and another 14,377 people are still missing. Recovered safes and cash are expected to continue piling up. For owners of the safes, claiming them could be as simple as opening them. Matching a wad of cash with its rightful owner will be more complicated, if not impossible. In Kesennuma, one of the hardest-hit towns in the tsunami zone, authorities said only 10 to 15 percent of valuables recovered from the wreckage have been returned. As they run out of space for the found safes, authorities may start cracking them to find evidence about their owners before turning them over to the government.

Sources

Associated Press

The Telegraph

Seattle P.I.

Rising construction costs, plus the potential cost of a nuclear accident make clean energy alternatives more attractive to investors. Image: CC The G-tastic 7/Flickr

Before the Fukushima disaster, nuclear power appeared on the verge of a comeback. But in the aftermath of the Japan earthquake and tsunami, nuclear reactors worldwide have been shut down and construction of nuclear plants has been put on hold. Expensive new safety measures that may be required as a result of the Fukushima disaster could make the cost of nuclear power prohibitive to investors as a primary energy source in the future.

The financial truth about nuclear power

Increasing the use of nuclear power as a clean, reliable source of energy won the support of 62 percent of the public in a 2010 Gallup poll. The Obama administration announced plans to provide $54.2 billion in loan guarantees for the construction of nuclear power plants. But even before the Fukushima disaster, it was doubtful that new nuclear reactors would be under construction in the U.S. anytime soon, according to Mark Cooper of the Vermont Law School’s Institute for Energy and the Environment. In a presentation before the House of Commons in Ottawa, Canada, Cooper said the U.S. nuclear industry was a bubble about to burst. The bubble began to inflate in 2001 when the Bush administration started heavily promoting nuclear energy with billions in loan guarantees. By 2008 it became evident that the nuclear industry couldn’t deliver on costs. The recession, cheap natural gas and growing sources for clean energy alternatives effectively finished it off.

The rising cost of nuclear power

In the wake of the Fukushima disaster, building new reactors could become even more cost prohibitive. After the 1979 Three Mile Island accident in Pennsylvania, construction costs for nuclear reactors rose 95 percent, according to Cooper’s research. As a result, households paid 40 percent more for electricity. After the 1986 Chernobyl disaster in Ukraine, construction costs rose another 89 percent, and electricity costs were 42 percent higher. Construction costs for nuclear reactors skyrocketed because of design changes required to address safety concerns. The Nuclear Regulatory Commission has already assembled a task force to investigate the design changes required for planned nuclear plants in the U.S., based on lessons learned from Fukushima.

An unacceptable risk to investors

Going forward from Fukushima, investors will view clean energy alternatives such as natural gas, wind and solar as more attractive than nuclear plants. Utilities may also pass on assuming the risk of nuclear plants. Financially, nuclear energy is no longer a cheap alternative to other sources of energy. Before taking into account the cleanup costs of a nuclear accident, onshore wind farms, for example, are up to 35 percent cheaper than nuclear plants. In the future, alternative sources will become increasingly capable of helping meet the world’s energy needs without the financial and ecological costs of nuclear power. For savvy investors, clean energy alternatives promise more lucrative opportunities.

Sources

Reuters

Fast Company

The National

Prices for Tibetan Mastiffs have risen 500 percent in the last few years as China's super-rich seek the breed as a status symbol. Image: CC Minameida/Wikemedia Commons

A red Tibetan Mastiff has supplanted another canine of the same breed as the most expensive dog in the world. Red Tibetan Mastiffs have become a status symbol for the wealthy in China, a country where historically dogs have been more likely to be eaten. The red Tibetan Mastiff known as “Big Splash” went for more than $1.5 million and could cost its owner several thousand dollars a month in maintenance expenses.

A must-have for China’s super rich

The $1.5 million red Tibetan Mastiff “Big Splash,” Hong Dong in Chinese, was bought by a coal baron from the north of China. According to his breeder, the hefty price tag is justified, considering the investment required to produce such a creature. Among Tibetan Mastiffs, Big Splash is considered a perfect specimen. At less than a year old, the beast covered in bright red fur already weighs more than 180 pounds and stands three feet tall at the shoulder. He represents the latest peak in a Chinese trend of skyrocketing prices for red Tibetan Mastiffs. Among the new class of China’s super rich, the breed has supplanted fast cars and bling as the ultimate status symbol. As the world’s most expensive dog, Big Splash replaced another Tibetan Mastiff named Yangtze Number Two, who went for more than $600,000 in 2009. When he was sold, Yangtze Number Two arrived at his new home in a motorcade of 30 limousines.

Why Tibetan Mastiffs are revered in China

The money paid for Big Splash underscores the high regard for red Tibetan Mastiffs in China. The value of Tibetan Mastiffs in China has been rising about 500 percent annually the past few years. One of the oldest breeds in the world, legend has it that Gengis Khan and Buddha were big fans. In the 13th century, Marco Polo described Tibetan Mastiffs as “tall as a donkey with a voice as powerful as a lion.” Red is considered a lucky color in China, and Tibetan Mastiffs are considered holy animals that bless their owners with health and security. The breed is protected in China, a country where most people would need an installment loan to buy a dog and prefer them for dinner rather than as pets. A law to ban eating dogs was proposed earlier this year in China, but most Chinese expect it will be ignored.

Outrageous cost of ownership

Tibetan Mastiffs are only owned by wealthy people because their ownership costs are very expensive. The dogs are bred in Tibet at altitudes of at least 12,000 feet. When Tibetan Mastiffs are sold to owners in China’s coastal regions, they need to be carefully adjusted to sea level. The dogs are also vulnerable to hot weather and need 24 hours of air conditioning in the summertime. Big splash enjoys a diet of chicken, beef and Chinese delicacies such as sea cucumber and abalone. Recently a rich Malaysian spent nearly $2 million importing five Tibetan Mastiffs. He hired two people to take care of them and spends more than $5,000 a month on their food and shelter.

Sources

The Daily Mail

NPR

Asia One

MSNBC

The crisis in Japan is sure to lead to further stalls in developing nuclear power in the United States. Image from Wikimedia Commons.

The failing nuclear power station in Japan could be triggering a new era of nuclear paranoia. Incidents involving nuclear power plants and Congressional budget cuts make any new growth of the nuclear power industry unlikely. Nuclear energy can deliver a lot of electricity for less than other methods of power generation.

Japan nuclear reactor crisis likely to extend nuclear moratorium

The world has been watching in horror as three nuclear reactors at the Fukushima nuclear power complex Japan are vicariously close to a total meltdown. Japan experienced an earthquake that reached 8.9 on the Richter scale, and the quake combined with the resulting tsunami has devastated the country. Four nuclear reactors at Fukushima Daiichi, or Fukushima One, have had a fire or explosion and are said to be leaking radioactive steam into the air, according to the Christian Science Monitor. The danger is not nearly the threat level of the Chernobyl incident in 1986, according to Bloomberg. Nuclear energy use has been waning in the United States for decades, and the incident is likely to hinder the nuclear industry from further growth.

Congress unlikely to back nuclear expansion

Besides public fears about the nuclear industry, one of the biggest hurdles to expanding the nuclear power industry is high startup costs. Nuclear reactors require an enormous amount of capital and time to build, and the 2011 Federal Budget from the Obama administration included $36 billion in loan guarantees for nuclear power plant construction, according to CNN. Those guarantees would not actually spend any money, but would pay the creditors of any company that started to build a power plant and defaulted on its loans. However, given that Congress is trying to cut spending levels, it is unlikely that many federal funds are going to be devoted to the construction of any new nuclear plants.

Cheaper source of power

Nuclear power currently generates 20 percent of U.S. power, which has been a constant since 1988, according to the Energy Information Administration. Electricity from a nuclear power plant costs about 2.17 cents per kilowatt hour, compared to 4.05 cents per hour for fossil steam (coal), and 5.75 cents per kilowatt hour for natural gas, wind power and solar energy. The average American household uses about 11,000 kilowatt hours of electricity, or kWe, per year. One kWe powers a 60-watt lightbulb for about 90 minutes. Currently, 60 percent of electricity in the U.S. is generated from coal, which EIA says is twice as expensive as nuclear power.

Sources

Christian Science Monitor

Bloomberg

CNN

Energy Information Administration on Power Generation

Energy Information Administration on energy consumption

A market basket of goods determines the Consumer Price Index, and the U.K. has adjusted what is in that basket. Image: Flickr / magnus_d / CC-BY

The Consumer Price Index is an economic indicator that refers to the cost of goods and services. The U.S. Bureau of Labor Statistics figures the CPI based on a figurative basket of products that are indicative of things most people purchase. In the United Kingdom, that basket of CPI goods has been updated to include several new products.

The United States basket of goods

In the United States, the Consumer Price Index basket of consumer goods is figured based on “urban consumers and urban wage earners.” Representing about 87 percent of the United States population, the basket was last adjusted in 2008. Survey information is collected for two years from about 7,000 families, and the most common products are included in the basket. Food, personal care products and home products are all included in the basket. The cost of fuel, fees on same day loans and most services are not included.

Updates to the UK basket of goods

The United Kingdom just completed the periodic update to its Consumer Price Index market basket of goods. The new U.K. Consumer Price Index will be figured based on a variety of modern products. Flatscreen TVs, smartphone apps, TV dinners and even dating agency fees are included. Sparkling wine, dried fruit and craft kits are also included in the new basket. Though the new basket was mostly updated to reflect products that are purchased more often, some previously underrepresented products, such as hardback books, were added.

The real-world impact of the CPI

The Consumer Price Index, in just about every country, is used as a measure of inflation. The CPI also serves as a “real-time” measure of the cost of living. The calculation of the CPI has been heavily disputed and is often adjusted according to the recommendations of economists and Congress. The inflation rate informs the decisions of the Federal Reserve, which adjusts interest rates. Interest rates affect how much it costs to borrow payday loans no credit check and other types of money, purchase goods and services. The cost of living and CPI are also the basis for figuring the Cost of Living Adjustment – COLA – for Social Security.

Sources

Irish Times
Bureau of Labor Statistics
Investopedia

A flood of false charities have popped up to swindle money from people seeking to donate to Japan tsunami relief. (Photo Credit: CC BY/DVIDSHUB/Flickr)

When international tragedy strikes, unscrupulous con artists arise to take advantage of well-meaning individuals who wish to donate to legitimate relief efforts. Unfortunately, recent Japan tsunami relief efforts have been similarly plagued. With help from Consumer Reports and the Better Business Bureau, you can learn how to avoid Japan aid scams and send your money to its intended destination.

Untangling the Web of Japan tsunami relief

Fake charities with well-designed websites and slick telemarketing schemes may be cutting in to some of the donations earmarked for Japan tsunami relief. However, a number of well-known organizations are spearheading efforts to bring economic relief to areas of northern Japan devastated by earthquake, tsunami floods and radiation from the damaged Fukushima nuclear reactor.

The American Red Cross is accepting online donations and $10 text donations (text “redcross” to 90999). Additional information is available at the American Red Cross FAQ page.

Send money, please

The White House Those who wish to contribute should donate to organizations like U.S. Aid and InterAction, which both have programs in place to send aid to Japan. U.S. Aid and InterAction encourage monetary contributions because goods are difficult to collect and transport in the more devastated areas of the Japan disaster relief effort. Whenever possible, give to organization like these, which contribute directly to relief efforts. Don’t use a middleman that funnels the money through another charity portal before it reaches the front lines.

Six tips for directing charitable donations

The Better Business Bureau’s Wise Giving Alliance offers Americans six tips when it comes to choosing a Japan aid charity:

• Use expert sources like the American Red Cross and Better Business Bureau when choosing a charity
• Be cautious with e-mails soliciting donations
• Research the charity to see if it gives direct aid
• Remember: No legitimate charity can guarantee 100 percent of money will assist tsunami victims
• Ask the charity about transportation and infrastructure to ascertain experience
• Understand exactly how much you’re donating before agreeing

Sources

American Red Cross FAQ
Better Business Bureau
Center for International Disaster Information
Consumer Reports
InterAction
U.S. Aid

The logistics of organizing international aid for Japan

Unrest in Libya is said to be causing gas prices to rise, but Libya doesn't affect gas prices in the U.S. Image from Wikimedia Commons.

Gas prices have begun to climb as a result of unrest in the Middle East, and recent hikes in price began as Libya was plunged into a civil war.Libya is a major petroleum exporter, but not to the United States, which imports very little oil from Libya.

Libya did not cause rise in U.S. oil and gas prices

Petroleum is a very sensitive commodity. Everyone needs it, and potential disruptions of supply can have consequences like the price of gasoline shooting through the roof. During the past few weeks, Libya has been plunged into a brutal civil war. Libya is a major petroleum exporting state, and as a result the price of crude oil is fluctuating wildly and the price of gas has been rising due to concerns about world supply. However, industry insiders insist that domestic oil and gas supply in the U.S. are in good shape, according to USA Today. Most of the rise in prices in the U.S. has to do with market speculators and the fact that gas prices always start rising before the summer months. Wall Street, Moammar Gadhafi, is driving up gas prices.

Libya not a big provider to U.S.

Libya is a member of the Organization of Petroleum Exporting Countries (OPEC) and exports a lot of crude oil. However, the United States does not receive much from Libya. According to the U.S. Energy Information Administration, a division of the Department of Energy, the United States imported 22 million barrels of crude oil from Libya in 2009, 283 million barrels of crude from Nigeria, 347 million barrels from Venezuela and the 357 million barrels from Saudi Arabia. The claims that unrest in Libya could have a tangible effect on the oil supply in the United States, and therefore gas prices, are inaccurate.

Saudi Arabia the real danger

One country that really could put a dent in American crude oil imports is Saudi Arabia. Currently, pro-democracy protests are beginning to take place in Saudi Arabia, according to CNN, and there have already been crackdowns by the Saudi government. Demonstrations or protests by members of the public were outlawed once they began occurring in other countries. If Saudi Arabia were to be paralyzed by widespread revolt, gas prices would skyrocket in the U.S. However, most experts on the region are convinced a revolt similar to the ones in Egypt, Tunisia or Libya isn’t likely to happen in Saudi Arabia.

Sources

USA Today

CNN

U.S. Energy Information Association Statistics on oil imports

Gasbuddy

Libya's singular dependence on oil has made supplying food more difficult. (Photo Credit: CC BY-SA/Javier Blas/Wikipedia)

As the crisis in Libya continues, the situation grows increasingly desperate for Libyans in need of humanitarian aid. According to Al Jazeera, convoys from the World Food Program with flour and other foodstuffs have been turned back by supporters of Col. Moammar Gadhafi, leaving the lives of more than 1 million civilian refugees in disarray. The United Nations and United States are currently developing strategies for Libya food delivery and other means to alleviate suffering.

Thousands of refugees will ‘invade Europe,’ Gadhafi says

Various reports from the front lines of clashes between anti-Gadhafi rebels and Gadhafi  loyalists indicate Gadhafi may be leaning toward compromise, yet Gadhafi’s public proclamations that he will fight insurrection until death have suggested otherwise. Gadhafi  has warned that if he falls, thousands of Libyan refugees will “invade Europe,” reports Reuters. Reportedly, tens of thousands have already fled into Tunisia, although that country is also politically unstable.

As hospitals in rebel-held cities like Misrata are drastically short of supplies – and rebel areas in general face food shortages – Gadhafi’s prediction that a massive wave of refugees will throw themselves upon the mercy of any country that can offer humanitarian aid may prove to be an accurate one. Military analyst Shanshank Joshi of Britain’s Royal United Services Institute told Reuters that the rebels do not have the upper hand, even though their fighting skills are “reasonably competent.”

“Government forces have more mobility than the rebels thanks to airlift and a decent amount of road transport,” said Joshi.

United Nations seeks to deliver aid to Libyan refugees

U.N. aid coordinator Valerie Amos knows that more than 1 million fleeing Libyans need humanitarian aid, and that number increases daily as skirmishes drive people from their homes. Rebel towns like Misrata, which was recently home to 300,000 people, are considered high-priority areas by the U.N.

“Humanitarian organizations need urgent access now,” said Amos. “People are injured and dying and need help immediately.”

After announcing the institution of a potential no-fly zone over Libya, U.S. Secretary of State Hillary Rodham Clinton said that the U.S. has pledged $10 million to help Libyan refugees. Interested individual donors are being urged to contribute through the U.N. World Food Program.

Libya needs food and a diverse economy

Agriculture is difficult to sustain in Libya, writes Christopher Albon for The Atlantic, so the nation has to import much of its food. Considering that food prices have risen 50 to 75 percent in war torn areas of Libya, the panic of food shortage has set in. Albon suggests that the U.S. has both the capacity and infrastructure to supply rebel-controlled eastern Libya with food deliveries, via the major seaport of Benghazi. Such a move would be a meaningful policy option for President Obama and would avoid the burden of U.S. military engagement.

Sources

The Atlantic
Army Times
Reuters
U.N. World Food Program
U.S. Embassy in Tripoli, Libya (via Wikileaks)

Al Jazeera reports: Using food as a weapon in Libya

Gas prices have been rising for the past two weeks, and there is speculation that an energy crisis may be imminent. Photo Credit: Micov/Wikimedia Commons/CC-BY

The average gas price is rising in every U.S. state and may hit $4 per gallon soon. Unrest in Libya, a major petroleum exporting country, has caused the price of petroleum to rise, which is causing the price of gas to rise as well. There is speculation that the U.S. government will tap its reserves to ease market conditions.

Government may tap emergency reserves to ease burden

Continuing turmoil in Libya brought oil exports in that country to a standstill, leading to a spike in oil prices. Currently, the average gas price per gallon hit $3.51 on Monday, March 7, according to CNN, and gas prices are on track to possibly hit $4 by summer. Prices have been rising daily for the past two weeks, increasing by 34 cents over that time. To curb runaway prices, the Obama administration is considering tapping into the U.S. Strategic Petroleum Reserve, according to Reuters. The Reserve is a storage facility that contains nearly 730 million barrels of crude oil, roughly equal to a one-month supply of oil for the entire United States. However, administration officials maintain that reserves will only be used if needed. The last release from the reserves was in 2005, after the Hurricane Katrina disaster, and it has only been used three times since it was established during the Nixon administration.

Prices skyrocket

Since Libya has plunged into unrest, there has been some trepidation in the world market for oil, but not because of a drop in supply. Libya produces less than 2 million barrels per day, and exports little oil to the United States. Saudi Arabia, by contrast, produces more than 12 million barrels per day, according to the Department of Energy. The Saudi government has also increased oil production by 25 percent, which will cover any losses due to a drop in production in Libya. The rise of gas prices is not due to a shortage in supply; rather, markets are uneasy because political turmoil is spreading to other oil exporting countries. A revolt in Libya is not catastrophic in terms of world oil exports, but revolts in Saudi Arabia would be.

Check with Gasbuddy

A good way for people to find the most reasonable gas prices in their area is to look at the website Gasbuddy.com. Gasbuddy is a network of websites where members report gas prices they see in their area. The Gasbuddy network extends from coast to coast, so there are few places in the U.S. or Canada that do not have some information posted. There is even a Gasbuddy app available for iPhone, Android and Windows smartphones. Since Gasbuddy relies on people reporting the gas prices they see, the site is fast becoming a resource that is quoted by major news agencies as well as a valuable tool for consumers.

Sources

CNN

Reuters

Department of Energy website for world energy information

Gasbuddy

The price of dairy products have skyrocketed as oil prices have made production more expensive. (Photo Credit: CC BY-SA/James Rintamaki/Flickr)

As a result of the crisis in Libya, the already high food prices worldwide will likely be pushed even higher, reports CNN Money. A report by the United Nations Food and Agriculture Organization indicates that the food price index, which measures the price of a basket of food commodities, was up 2.2 percent in February. Currently, the index is at its highest point since it was created in 1990.

Prices up for most food commodities

While sugar prices were slightly lower in February, prices for cereal, dairy products, meat and nearly every other food commodity rose significantly. According to the U.N. Food and Agriculture Organization, U.S. consumers should expect the price of cereal to remain high throughout 2011, as inventories of wheat and coarse grains are low, and demand has remained high. Compared with February 2010, the cost of exporting grains was up 70 percent this February.

Oil prices pushed up by unrest in Libya

The price of a barrel of oil has exceeded $100 for the first time since fall 2008 – a by-product of violence in Libya that shut down oil production. As a result, U.S. drivers have paid 25 cents more per gallon of gasoline on average over the past 10 days, indicates the U.S. Energy Information Administration. This does not bode well for global food prices, said FAO director David Hallam in a statement.

“Unexpected oil price spikes could further exacerbate an already precarious situation in food markets,” writes Hallam. “This adds even more uncertainty concerning the price outlook, just as plantings for crops in some of the major growing regions are about to start.”

Jeet Dutta, an economist at Moody’s Analytics, sees no uncertainty when it comes to the link between high oil prices and high food prices. The costs of food production and transportation cannot be discounted.

“Energy is a big part of the cost bucket in food production,” Dutta told CNN. “Retail prices lag behind commodities, so consumers haven’t felt the full extent of recent increases.”

Food exporters rebuild stockpiles, tighten supply

Even as global harvests expand, exporters are tightening the reins on such commodity supplies as corn, wheat and soybeans. This chokes global supply, which in turn raises prices. Global financial services company UBS AG projects that corn will reach $8.30 per bushel, a 15 percent jump over Wednesday’s closing price, while wheat will rise to $10 per bushel (a 23 percent increase) and soybeans to $15 per bushel (7.6 percent higher).

High food commodities have pushed 44 million people into poverty since June 2010, said World Bank President Robert Zoellick. According to World Bank data, those 44 million join the more than 900 million people globally who go hungry on a daily basis.

Sources

Bloomberg

CNN Money

U.S. Energy Information Administration

Strife in Libya and the impact on fuel prices

Muhummad Yunus has been forced out of his position at Grameen Bank by the Bangladeshi government. Image from Wikimedia Commons.

Microfinance pioneer Muhammad Yunus has been forced out of his position at Grameen Bank by the government in Bangladesh. Yunus, the longtime head of Grameen Bank, is well known for his work in the realm of microfinance, lending small loans to the poor to help them start businesses. He and the Bangladeshi government have feuded for years.

Nobel Prize winner forced from office by government

The Bangladeshi government has forced Muhammad Yunus from his position at Grameen Bank, according to NPR. Muhammad Yunus, who won the Nobel Peace Prize in 2006, was ordered out of his position as managing director of Grameen Bank by Bangladesh Bank, the central bank for the nation of Bangladesh. Bangladesh Bank maintains that Yunus did not comply with a statute that mandates bank directors retire at age 60. Yunus is 70, but Grameen Bank was founded under a law passed in 1983 which exempts Yunus from the statute. He was given an indefinite term of office as managing director of Grameen Bank in 2000, when he reached the age of 60. However, Grameen is fighting the charges, and Yunus still retains his position.

Ongoing feud between microcredit legend and government

The Bangladeshi government and Yunus have been embroiled in a feud for years. Yunus has previously  accused the government of corruption, while government officials termed the small loans that Grameen lends to the impoverished as “sucking the blood from the poor.” Muhammad Yunus tried to launch his own political party in 2007, but it floundered. Officials have been looking at the operations of Grameen Bank to root out any possible malfeasance for months, after allegations were made of an improper funds transfer, according to the New York Times. Grameen allegedly transferred more than $100 million in donations from the Norwegian government to a Grameen affiliate without alerting the Norwegian government, but all the funds were redeposited.

Key figure in fight against poverty

Muhammad Yunus and Grameen Bank are held in high esteem worldwide for their work in fighting poverty with microfinance loans. Grameen Bank lends small loans to the very poor, mainly women, in order to help them establish a cottage industry. For instance, an extremely poor clothing maker could get a microloan for a sewing machine and fabric and establish a business and an income. Women make up 97 percent of Grameen’s borrowers, according to USA Today, and the bank has more than $10 billion in loans. Yunus and Grameen Bank won the Nobel Peace Prize in 2006 for efforts in alleviating poverty in Bangladesh. However, the microcredit model has come under heavy criticism as microlenders in other countries have been found to engage in corrupt practices, including intimidating customers with violence to collect payments, and some believe it encourages a vicious cycle of debt among the impoverished.

Sources

USA Today

New York Times

NPR

Read Across America Day is scheduled for March 2, Dr. Seuss' birthday. Image from Wikimedia Commons.

More than a decade after he passed away, people still commemorate Dr. Seuss’ birthday. If Dr. Seuss were still alive, he would turn 107 on March 2, and many that day will observe the birthday of perhaps the most celebrated author of children’s literature of all time. Seuss, born Theodore Seuss Geisel, passed away in 1991.

Read Across America Day

In addition to being Dr. Seuss‘ 107th birthday, Wednesday, March 2, will be Read Across America Day. Many people worldwide celebrate Dr. Seuss’ birthday somehow, especially those involved in education. Dr. Seuss is perhaps the most widely read children’s author of all time. Several generations have grown up reading “The Cat in the Hat,” “Green Eggs and Ham” and “How the Grinch Stole Christmas” among other works. Fans of Dr. Seuss’ work, parents and educators who want to learn more or get teaching tools for “Read Across America Day” can check out Seussville, a website run by Random House devoted to Seuss and his novels. Educational materials are available, including games, puzzles and lesson plans for teachers.

Legend of child literature

Millions grew up reading books by Dr. Seuss and watching films based on them. He was born Theodore Seuss (pronounced “soice”) Geisel in 1904 and passed away at the age of 87 in 1991. Geisel, according to Wikipedia, started using the pen name “Seuss” while writing for the Dartmouth Jack-O-Lantern, a student humor magazine. He expanded it to “Dr. Seuss” after he graduated, though he never attained a PhD. He began writing children’s books before World War II, and during the war he took a hiatus to work for the U.S. Government. His last book, “Oh The Places You’ll Go” was published one year before his death.

Best-selling author among young readers

Dr. Seuss was a prolific author and illustrator; he drew and colored most of the artwork for his books. He wrote more than 60 books, which sold more than 200 million copies in 15 languages. He is one of the most commonly read authors among children, and films based on his work, including “Horton Hears a Who,” are also highly successful.

Sources

Seussville

Wikipedia Bio of Dr. Seuss

The US Embassy in Libya has been evacuated, and sanctions are pending against Libya and Moammar Gadhafi. Image from Wikimedia Commons.

The U.S. embassy in Libya has been closed as violence in the Libyan capital is increasing. The regime of Moammar Gadhafi is quickly losing control despite stringent and deadly efforts to quell the uprising of Libyans against Gadhafi’s four-decade rule. Sanctions against Libya are likely to be enacted soon.

Tripoli plunging into chaos as Gadhafi regime tightens grip

The regime of longtime Libyan dictator Moammar Gadhafi is fast losing control of the nation, and the capital city of Tripoli is becoming the battleground for control of the North African country. Crowds of protesters have been fired upon, but have remained resilient in the face of mortal danger from African mercenaries and members of the Libyan army still loyal to Gadhafi. As a result of the escalating instability in the Libyan capital, the U.S. State Department has suspended American Embassy operations, and moved most embassy personnel out of Tripoli with a chartered ferry, according to Reuters. The embassy is still open, but most workers have been evacuated except for some staff.

Sanctions against Libya pending

The White House has affirmed that economic sanctions will be levied against Libya, in response to the brutal tactics used by Moammar Gadhafi in addressing the unrest in the country he has ruled for more than four decades. Military cooperation between the U.S. military and the Libyan military has already been cut off, and the nature of forthcoming sanctions against Libya will be determined after a meeting between President Obama and United Nations Secretary-General Ban Ki-moon, according to CNN. Obama has previously been criticized for taking too soft a stance on the situation in Libya.

International leaders call for Gadhafi to resign

A growing chorus of international leaders and figureheads are calling for Colonel Gadhafi to resign, according to the New York Times. Nicolas Sarkozy, President of France, called on Gadhafi to resign, and British Prime Minister David Cameron admonished Gadhafi that “the world will hold you to account.” Gadhafi has vowed to “die a martyr” and has refused to leave while alive.

Sources

Reuters

CNN

New York Times

LinkedIn hit the Great Firewall after a discussion group asked for opinions about the Jasmine Revolution in the Middle East. Image: CC Ryan M Mclaughlin/Flickr

China has blocked access to LinkedIn amid a wave of calls for a Chinese “Jasmine Revolution.” LinkedIn became inaccessible in China after a user on the the career networking site posted messages inspired by protests in Tunisia and Egypt that toppled authoritarian regimes. Chinese censorship comes at a bad time for LinkedIn because its plans for an IPO could be foiled without a presence in the world’s largest Internet market.

LinkedIn up against the Great Firewall

China’s notorious “Great Firewall” has censored LinkedIn as part of a broader effort by the Beijing government to suppress dissent provoked by protests in the Middle East. Other sites such as Facebook and Twitter have been blocked by Chinese censors since 2009. China will only allow social networks that self-censor information that challenges the communist party line. Chinese officials seem to have finally caught on to something Chinese dissidents have known for years: LinkedIn is fully integrated with Twitter. Subversive messages could be easily distributed through Twitter using the LinkedIn portal.

Why China censored LinkedIn

China censored LinkedIn after a user launched a discussion group last week asking for input on how the wave of unrest that ousted dictators in Tunisia and Egypt could reach China. The LinkedIn user, “Jazmine Z” first wrote of “dying for democracy, freedom and justice in my homeland.” A post that followed said the Beijing government fails to “realize the crisis of the autocratic one-party system.” The final post before LinkedIn was censored called the Chinese communist party “a Power and elite club.” The blockage of LinkedIn is the latest episode in a flurry of arrests and tightening Chinese censorship, reflecting the government’s uneasiness over the Jasmine Revolution in the Middle East.

LinkedIn IPO threatened

If Chinese censorship of LinkedIn becomes more than a symbolic gesture, the company’s planned IPO could be threatened. LinkedIn hopes to raise $175 million in an IPO either on the Nasdaq or the New York Stock Exchange. Exclusion from the Chinese Internet market — the world’s largest with about 450 million users and counting — would lead investors to question LinkedIn’s future growth and profits. The price that investors would be willing to pay for shares of a LinkedIn censored in China would have to be taken into account.

Sources

CNN

Business Week

Reuters

In a recently broadcast Gadhafi speech, the Libyan dictator blamed unrest on al-Qaida and drug-laced Nescafe. Image: Habib Mhenni/Wikimedia Commons/CC-BY-SA

In a recent Moammar Gadhafi speech addressing unrest in Libya, the North African dictator blamed the Libya protests on odd factors. Gadhafi claimed that unrest was caused by insurgents sent by Osama bin Laden and by the influence of hallucinogenic drugs.  Gadhafi’s regime is quickly losing control of Libya.

Teenagers drinking spiked Nescafe blamed for Libya violence

Libyan ruler Moammar Gadhafi recently gave a speech that was broadcast on Libyan state television. In his speech he laid blame for the Libyan revolt on some unexpected parties, according to Reuters. Gadhafi said in a speech via telephone and broadcast over television that Osama bin Laden and al-Qaida were behind the turmoil in Libya and that violence in the North African nation was due to teenagers taking drugs. He said in the rambling speech that “their ages is 17″ and that al-Qaida agents were putting “hallucinatory pills in their drinks, their milk, their coffee, their Nescafe.”

Opposition holds one third of Libya

Nearly the entire eastern third of Libya is no longer under the command of Gadhafi or pro-Gadhafi forces, according to the Christian Science Monitor. There is still growing unrest and violence in Gadhafi-held cities such as Tripoli, but cities in the areas that have been “liberated,” such as Tobruq and Benghazi, have calmed considerably after military factions loyal to the dictator have been largely overcome. Factions of the Libyan army have been defecting to the side of the protesters as Gadhafi has ordered them to fire on their countrymen.

Oil prices still climbing

Despite reassurances from Saudi Arabia that oil production would not be affected by the Libyan revolts, crude oil prices are still climbing, and the New York Times says it’s because of the Libyan protests . In early trading on Thursday, Feb. 24, oil prices jumped to more than $100 but settled lower at $97.28, causing energy stocks to tumble. It is anticipated that unrest in the Middle East could lead to gas prices rising to $4 a gallon or more.

Sources

Reuters

Christian Science Monitor

New York Times

The Pentagon is investigating whether psychological operations were performed on U.S. Congressmen by the military. Image from Wikimedia Commons.

The Pentagon is investigating the alleged use of “psyops,” or psychological operations, on United States Congressmen while they were visiting Afghanistan. Psychological operations are methods of psychological manipulation, usually used against enemies, including propaganda and misinformation. These techniques were allegedly used to persuade members of Congress in order to get more military funding.

Rolling Stone says military official ordered psyops on Americans

A scathing article in a recent issue of Rolling Stone says members of the military were ordered to use “psyops,” or psychological operations, techniques to persuade members of Congress visiting military outposts in Afghanistan to give the military more funding and additional personnel, according to MSNBC. Lieutenant General William Caldwell is accused of ordering a psyops team to study Congressmen visiting in 2009 and inform him of how they could be persuaded to deliver more funding and more troops for U.S. military operations there. The head of the psyops unit, Lieutenant Colonel Michael Holmes, refused the order and was reprimanded for it.

Petraeus launches investigation

General David Petraeus, commander of Afghan operations, has launched an investigation into the allegations. Lt. Gen. Caldwell “categorically denies” the accustaions, according to the Washington Post. The use of “psyops” or propaganda of any sort on United States citizens is illegal, and Intelligence Operations personnel are well aware of that. The Congressmen allegedly ordered to be targeted for study and manipulation included Senators John McCain, Jack Reed, Joe Lieberman, Carl Levin and Al Franken. Representative Steve Israel, a member of the Armed Forces Committee, and Admiral Mike Mullen of the Joint Chiefs of Staff were also possible targets.

Same reporter profiled General McChrystal

The Rolling Stone article was written by Michael Hastings, who writes that Lt. Col. Holmes said his job was to “get the enemy to behave the way we want,” and Holmes said “when you ask me to use these skills on senators and congressmen you are crossing a line.” He added that people in the Information Operations field knows from day one that propaganda and psychological manipulation are to be used only on the enemy. Hastings also wrote the article on General Stanley McChrystal that led to McChrystal resigning from the Army last year.

Sources

MSNBC

Washington Post

Rolling Stone

A married nun from Germany now has a priest for a husband. Photo by Wikimedia Commons

In Germany, a married couple is making headlines. For a few years, the wife of this couple has been serving as a Carmelite nun. The husband has recently taken vows as a priest. In order to take vows, the couple had to individually get dispensations from the Pope.

Making vows for Harm and Edeltraut Klueting

When they were first married in 1977, Harm and Edeltraut Kluting were Lutherans. The couple had two children and served the Lutheran church as clerics. The couple then became Catholic. They waited until their children were grown, and in 2004, Edeltraut received papal dispensation to take vows as a Carmelite nun and remain married to Harm. Now Harm has gotten his dispensation. That means he can become a Catholic priest. The couple is remaining married while serving in their respective church posts.

Other married Catholic priests

There is a specific image that comes to mind typically when the phrase “Catholic priest” comes about: a man serving in the church, unmarried and celibate. Pope Piux XII in 1950 made a ruling that allowed priests from other Christian denominations to convert to the Catholic religion, stay married and also become Catholic priests. Estimates are that between 5 percent and 10 percent of Catholic priests, especially in Eastern Bloc countries, are married and serving as priests with the full knowledge and approval of the church.

What about celibacy?

Being celibate and unmarried are traditional requirements in the Catholic church for nuns and priests. With a pope dispensation, though, the church makes exceptions for married couples. The declining number of men and women taking vows has raised questions about the celibacy requirement from inside and outside the Catholic church. Last year, a new conversion program was started by the catholic church to help Anglican priests and bishops convert to Roman Catholicism with ease. Married priests and female priests are not allowed in the Roman Catholic church without a papal dispensation, but some other Catholic sects allow them.

Information from

The Star

Moammar Gadhafi's former justice minister claims to have evidence the dictator issued personal orders to the Lockerbie bomber. Image: CC openDemocracy/Flickr

Libyan dictator Moammar Gadhafi personally ordered the bombing of Pan Am flight 103, according to Libya’s former justice minister. Pan Am flight 103 exploded over Lockerbie, Scotland, in 1988, killing 270 people aboard and on the ground. Gadhafi allegedly pulled strings to get the Lockerbie bomber released from Scotland on “humanitarian grounds” in 2010, fearing that the dictator’s role in the bombing of Pan Am flight 103 would be revealed.

Ex-justice minister betrays his boss

Mustafa Abdel-Jalil told a Swedish tabloid Wednesday he had evidence Gadhafi ordered the Lockerbie bomber, Abdelbaset al-Megrahi, to commit the terrorist act that brought down Pan Am flight 103. Abdel-Jalil, who was Gadhafi’s justice minister, resigned Monday in protest over Gadhafi’s violent crackdown against Libyan protesters demanding the dictator’s ouster. In recent moves to restore Libyan relations with the west, Gadhafi renounced terrorism and weapons of mass destruction. He also admitted Libya was responsible for the Lockerbie bombing and paid compensation to families of al-Megrahi’s victims. But he blamed the demise of Pan Am flight 103 on rogue Libyan intelligence officers.

The Lockerbie bomber

One of those rogue Libyan intelligence officers was al-Megrahi, who was also head of security for Libyan Arab Airlines. An intense investigation by Scotland Yard and the FBI pinned the crime on al-Megrahi and the station manager for Libyan Arab Airlines based in Malta. The Scottish government filed charges against the two suspects in 1991. In 1999 Gadhafi double-crossed his minions and handed them over to Scotland. They stood trial in the Netherlands, and al-Megrahi was convicted in 2001 as the Lockerbie bomber. The Lockerbie bomber was released from prison in 2009 and returned to Libya on humanitarian grounds. It was reported that al-Megrahi had terminal cancer and six months to live.

A desperate dictator

Analysts are inclined to take Abdel-Jalil at his word, considering that a such an order in the centralized Libyan dictatorship likely came from the highest level.  Abdel-Jalil said Gadhafi took every measure possible for al-Megrahi’s release to avoid being implicated, including the promise of a lucrative Libyan oil deal with British oil giant BP. Today the supposedly terminal al-Megrahi is alive and well in Libya–conditions that may not apply to Colonel Moammar Gadhafi, who has vowed to fight the Libyan uprising to his death, much longer.

Sources

The Local

Associated Press

Daily Mail