Greek Debt

July 7, 2015

It is in no one’s interest, including the United States, to let Greece collapse. Greece’s creditors might lose most -if not all- of what they’re owed and the Greek people would suffer immensely for an indefinite period of time. The potential social, political, economic and even military implications from that are too profound to analyze in depth in this short article. Suffice it to say however, that the presently acrimonious animosity between the parties evidently makes it all but impossible for them to come up with a constructive alternative.

 

Greece’s economy, currently shrinking, is too small relative to its debt. It needs a growth rate comparable to China’s and close to full employment to meet its obligations. In other words, it needs massive additional investment to create a new income stream with which to simultaneously service all the debt -old and new- and create well-paying jobs, not onerous conditions which will have the opposite effect.

Here’s an idea that might solve the problem to everyone’s satisfaction. Greece has two untapped assets -abundant sunlight and seawater- that could be exploited to transform the country into a major energy producer. Its many islands in the Aegean, some of which are uninhabited or sparsely populated, could be filled with dedicated solar-powered electric generators to produce hydrogen by electrolysis. The income from the sale of the hydrogen and other related byproducts (including fertilizers) would be mortgaged for a specified period of time to amortize the cost of the new investment plus existing debt, much of it to German taxpayers.

It would be a win-win scenario. It would give Greece time to implement whatever internal reforms it deems appropriate, give it a much needed economic boost, and reinstate its credit. The European Union would get a new source of clean energy from within NATO territory, reduce its reliance on fossil fuels along with its related carbon footprint, and prevent the inevitable losses that would follow a Greek collapse.

Today’s Housing Crisis

Press Release (excerpt)

November 25, 2018

J o i n t C e n t e r f o r H o u s i n g S t u d i e s o f H a r v a r d Uni v e r s i t y

STATE OF THE NATION HOUSING REPORT

Cambridge, MA โ€“ The fledgling U.S. housing recovery lost momentum last year as homeownership rates continued to fall, single-family construction remained near historic lows, and existing home sales cooled, concludes The State of the Nationโ€™s Housing report released today by the Joint Center for Housing Studies of Harvard University. In contrast, rental markets continued to grow, fueled by another large increase in the number of renter households. However, with rents rising and incomes well below pre-recession levels, the U.S. is also seeing record numbers of cost-burdened renters, including more renter households higher up the income scale. โ€œPerhaps the most telling indicator of the state of the nationโ€™s housing is the drop in the homeownership rate to just 64.5 percent last year,โ€ says Chris Herbert, managing director of the Joint Center for Housing Studies. โ€œThis erases nearly all of the increase from the previous two decades. In fact, the number of homeowners fell for the eighth straight year, and the trend does not appear to be abating.โ€

The flip side of falling homeownership rates has been exceptionally strong demand for rental housing, with the 2010s on pace to be the strongest decade for renter growth in history. While soaring demand is often attributed to the millennialsโ€™ preference to rent, households aged 45โ€“64 in fact accounted for about twice the share of renter growth as households under the age of 35. Similarly, households in the top half of the income distribution, although generally more likely to own, contributed 43 percent of the growth in renters.

The other byproduct of this surge in rental demand is that the national vacancy rate fell to its lowest point in nearly 20 years. Given the limited supply of rental units, rents rose at a 3.2 percent rate last yearโ€”twice the pace of overall inflation. โ€œTo meet this demand, construction started on more multifamily units in 2014 than in any year since 1989,โ€ says Daniel McCue, a senior research associate at the Joint Center. โ€œAnd if job growth continues to pick up, we could see even more demand, as young adults increasingly move out of their parentsโ€™ homes and into their own apartments.โ€

Even before the Great Recession, the number of cost-burdened households (those paying more than 30 percent of income for housing) was on the rise. But while the cost-burdened share of homeowners began to recede in 2010 (because some homes were lost to foreclosure, and low interest rates helped other homeowners reduce their monthly costs), the cost-burdened share of renters has held near record highs. In 2013, almost half of all renters had housing cost burdens, including more than a quarter with severe burdens (paying more than 50 percent of income for housing. But perhaps most troubling, cost burdens are climbing the income ladder, affecting growing shares of not just low-income renters but moderate- and middle-income renters as well. The cost-burdened share of renters with incomes in the $30,000โ€“45,000 range rose to 45 percent between 2003 and 2013, while one in five renters earning $45,000โ€“75,000 are now cost-burdened as well. โ€œWhile affordability for moderate income renters is hitting some cities and regions harder than others, an acute shortage of affordable housing for lowest-income renters is being felt everywhere,โ€ says Herbert. โ€œBetween the record level of rent burdens and the plunging homeownership rate, there is a pressing need to prioritize the nationโ€™s housing challenges in policy debates over the coming year if the country is to make progress toward the national goal of secure, decent, and affordable housing for all.โ€

The State of the Nationโ€™s Housing, released annually by the Joint Center for Housing Studies, provides a periodic assessment of the nationโ€™s housing outlook and summarizes important trends in the economics and demographics of housing. The report continues to earn national recognition as an authoritative source of information regularly utilized by housing researchers, industry analysts, policy makers, and the business community.

Principal funding

The Ford Foundation and the Policy Advisory Board of the Joint Center for Housing Studies provide principal funding for the report. Additional support is provided by the Federal Home Loan Banks, the Housing Assistance Council, MBAโ€™s Research Institute for Housing America, the National Association of Home Builders, the National Association of Housing and Redevelopment Officials (NAHRO), the National Association of REALTORSยฎ, the National Council of State Housing Agencies, the National Housing Conference, the National Housing Endowment, the National Low Income Housing Coalition, and the National Multifamily Housing Council.

The Harvard Joint Center for Housing Studies advances understanding of housing issues and informs policy. Through its research, education, and public outreach programs, the center helps leaders in government, business, and the civic sectors make decisions that effectively address the needs of cities and communities. Through graduate and executive courses, as well as fellowships and internship opportunities, the Joint Center also trains and inspires the next generation of housing leaders.
www.jchs.harvard.edu

 

Sixth Mass Extinction is Here

June 19, 2015

A study led by experts from Universidad Nacional Autรณnoma de Mรฉxico (UNAM), Stanford University, Princeton University and the University of California, Berkeley presents conclusive evidence indicating that the 6th mass extinction of animals is currently taking place, and humans are to blame.

The Environment Encyclical

June 18, 2015

His Holiness the Pope does not need to be defended by anyone for his ground-breaking encyclical. But a few t’s need to be crossed and some i’s dotted.

Firstly, as head of state -the Vatican is a sovereign state- he is entitled to speak out on behalf of his constituents, who, as it happens, are spread out in a global diaspora. So he is not politicizing his faith; his faith is his policy, and his Constitution, Scripture.

Secondly, it’s not surprising that he chooses to defend the poor. All major religions do that -unsuccessfully, it should be noted, for extreme inequality throughout the world is the norm, not the exception. The difference is that, not being encumbered with the need to raise money for reelection bids, he is free to speak his mind.

Thirdly, the Pope is indeed not an environmental expert, as some seeking shelter from their own conscience have readily pointed out. But neither are other heads of state. They all rely on advisers who are there to help them make decisions that affect everyone else on Earth.

Fourthly, he speaks the truth. Except for those who would rather be rich on a dying planet, almost everyone else understands that -second only to pride, unfathomable greed and insatiable lust for power- global warming threatens the lives of thousands of species of plants and animals, including our own. Unchecked, drought will inevitably lead to a collapse in the production of food just when the world’s population is expected to balloon to 9 thousand million. As for poverty, the widening gap in the distribution of income and wealth has also been identified by experts as a clear menace.

Finally, by elevating the issue to the realm of morality just when the presidential hopefuls are gearing up for what is expected to be the most expensive campaign ever, the Pope has in effect injected a new norm to assist voters decide who they should vote for. Given the changing demographics and the Pope’s immense popularity within the fastest growing ethnic group in the U.S., this should not to be simply shrugged off.

Average Temperature for May 2015 Highest in 136 Years

June 18, 2015

Report from the National Centers for Environmental Information

Excerpt

The combined average temperature over global land and ocean surfaces for May 2015 was the highest for May in the 136-year period of record, at 0.87ยฐC (1.57ยฐF) above the 20th century average of 14.8ยฐC (58.6ยฐF), surpassing the previous record set just one year ago by 0.08ยฐC (0.14ยฐF). This ties with February 1998 as the fourth highest monthly departure from average for any month on record. The two highest monthly departures from average occurred earlier this year in February and March, both at 0.89ยฐC (1.60ยฐF) above the 20th century average for their respective months.

The average global temperature across land surfaces was 1.28ยฐC (2.30ยฐF) above the 20th century average of 11.1ยฐC (52.0ยฐF), tying with 2012 as the highest May temperature on record. Most of Earth’s land surfaces were warmer than average or much warmer than average, according to the Land & Ocean Temperature Percentiles map above, with record warmth across most of Alaska, parts of tropical South America, much of southern Africa and The Middle East, and parts of northwestern Siberia. Only part of the central United States, far west central Australia, and part of Far East Russia observed temperatures characterized as “cooler than average” for May.

Crops and Climate: Plants Will Suffer as Earth Warms (Op-Ed)

June 16, 2015

By Marlene Cimons, Climate Nexus
Marlene Cimons writes for Climate Nexus, a nonprofit that aims to tell the climate story in innovative ways that raise awareness of, dispel misinformation about and showcase solutions to climate change and energy issues in the United States. She contributed this article to Live Science’s Expert Voices: Op-Ed & Insights.

One persistent assumption about the effects of climate change is that plants will thrive in warmer temperatures and an atmosphere of increasing carbon dioxide. But the reality turns out to be not so simple. In many parts of the world, just the opposite could occur โ€” and with potentially disastrous results for billions of people who depend heavily on plants for food, fuel and jobs.

New research in the peer-reviewed journal PLOS Biology suggests plants in the north will remain limited by solar radiation โ€” which is scarce  at northern latitudes due to the  shape of the Earth and its rotation, and is not likely to change as a result of climate โ€” curbing any positive effects of warming and additional carbon dioxide. Furthermore, many plants in tropical regions will be unable to tolerate excessively high heat, especially if accompanied by drought. The result could be a loss in valuable growing days for populations who can least afford it and are ill equipped to cope with it.

“Those who think climate change will benefit plants need to see the light, literally and figuratively,” said Camilo Mora, an ecologist and assistant professor in the geography department at the University of Hawaii at M?noa and the study’s lead author. “A narrow focus on the factors that influence plant growth has led to major underestimations of the potential impacts of climate change on plants, not only at higher latitudes but more severely in the tropics,” he said. These impacts will expose “the world to dire consequences.” [Animals and Plants Adapting to Climate Change]

Under these conditions, “choices become extremely limited for people who are already vulnerable,” said Micah Fisher, a Ph.D. candidate at the university and a co-author of the study. “Without options in livelihoods or food security, impacts tend to disproportionally impact the poor.”

The tropics could lose nearly one-third of their current plant-growing period if climate change continues unabated, which would have a significant impact on as many as 2.1 billion low-income people who rely on plants and their byproducts to survive, the study said.

The research shows that continued climate change will result in declines in plant-growing days by 2100, due to a combination of warming, drought and limited sun. Overall, the globe could see an estimated 11 percent reduction in the number of days with suitable conditions for plant growth, with some tropical regions facing the loss of up to 200 days per year by 2100.

“I think this is an important and novel insight, which highlights the synergistic consequences of a large and growing human population and its effect on the environment in which we live,” said David Inouye, professor emeritus of biology at the University of Maryland, who studies the impact of climate change on the environment, but who was not involved in the new study. “Some human populations are certain to be losers as a consequence.”

 

Global impact

The study provides a scale showing vulnerability for each of 194 countries. It maps the countries’ exposure through the decrease of suitable growing days, their dependency on agriculture-related products and livelihoods, and their adaptive capacity through basic economic indicators.

The study also found that changes in suitable plant-growing days were negligible under strong and moderate mitigation scenarios, suggesting that even modest reductions in emissions could prevent such drastic changes and their associated consequences for ecosystems and people. Also, the researchers said there may be other ways to lessen the impact.

“For plants that we grow for food, fiber and fuel, we have a little more control, and there are some additional options โ€” for example, switching to growing crop varieties that can thrive under warmer, drier conditions, or irrigating to minimize the effects of drought, although irrigation is already used extensively,” said Iain Caldwell, a postdoctoral researcher at the university and another co-author of the study.

“Most of these options tend to be expensive, though,” Caldwell added. “Since our research also shows that some of the most extreme changes in plant-growing conditions will occur in some of the poorest countries in the world, these options may require help from other, wealthier countries.” Though these countries “may not necessarily be as heavily impacted, [they] are responsible for much of the emissions that have led to such climate change.”

More carbon emissions don’t mean more plants

Prior research that focused on temperature concluded that rising temperatures and carbon dioxide levels would be beneficial to agriculture. (A 1992 video financed by the coal industry, called “The Greening of Planet Earth,” and its 1998 successor, “The Greening of Planet Earth Continues,” made the same claim.) This became a talking point for those who failed to understand the huge uncertainties in the world’s understanding of how plants and ecosystems will respond to climate change in the coming decades.

Plants, in fact, depend on the availability of water, appropriate temperatures, light and nutrients, “and the impact of changes in any of these resources can depend on how sensitive a species/ecosystem is, how quickly a species can adapt or evolve, and even how different species interact,” said Ben Cook, a climate scientist at NASA Goddard Institute for Space Studies, who was not involved in the new research.

The assumptions that climate change was good for plants “probably originated in the idea that increased carbon dioxide, which plants use in photosynthesis, would stimulate productivity and plant growth, and that warmer temperatures would lead to longer growing seasons,” Cook added. “Very quickly, however, it became apparent that โ€” while true on a certain level โ€” these are really gross generalizations and the ultimate response of plants and ecosystems is really quite a bit more complex.”

The researchers who conducted the new study said it was not surprising that earlier studies looked at temperature, “since this is the most obvious indicator of a warming climate,” Fisher said. “It is also difficult to conduct global modeling of climate change. But we are getting better. The models have come a long way and have developed a much more accurate predictive power. We tried to fit the elements of plant growth into what we believed was an innovative approach.”

At locations where prior studies have been conducted, “plants are below their optimum temperature, and thus warming helps,” Mora said, meaning there is enough warmth for some growth, but they would grow faster if it became warmer at these locations. “If you add carbon dioxide, they do even better,” he said. “This would make sense to many, because as the planet gets warmer, those areas that are cooler, such as higher-latitude countries, will have better conditions for plant growth. Also, because we know that carbon dioxide is essentially food for plants, increases in carbon dioxide should result in more growth โ€” if nothing else is limiting.”

However, “the problem is for the rest of the world, where plants are already living in conditions close to or past their optimum for growth, additional warming could take plant species beyond thresholds for growth and, possibly, survival,” Mora added.

Understanding the true complexity of climate

Overall, climate models are improving, “and we are continuing to develop better capabilities at understanding the nuances of climate change,” Fisher said. “It speaks to the challenges of developing policies to address very real impacts arriving from very complex systems. That’s part of the reason why people have missed the fact that these warming areas will not have the light to grow. It seems obvious, but we live in a complicated world, with a complex changing climate, and we have to find better forums to have these discussions.”

Using satellite-derived data, the PLOS Biology study โ€” which also included Jamie Caldwell and Brandon Genco, both of the University of Hawaii at M?noa, and Steven W. Running, of the University of Montana school of forestry โ€” identified the ranges of temperatures, soil moisture (water availability) and light (solar radiation) within which 95 percent of the world’s plant growth occurs today. The researchers then used climate projections to count the number of days in a year that will fall within the suitable climate ranges for plant growth in the future. The researchers counted the number of suitable plant growing days for all terrestrial areas of the globe, but did not include areas covered in water.

“This is a nice study that really considers the aggregate change in climate conditions that will be relevant for vegetation growth in the future, instead of just single factors like temperature or drought,” NASA’s Cook said. “And because it’s based on actual observations, it can potentially provide a useful benchmark for comparison of vegetation model simulations, which are more commonly used for these types of studies.”

The study did find that warming trends will increase by 7 percent the number of days above freezing temperatures that higher latitudes will experience. But these same locations will have limited light, a trend that studies examining temperature alone have missed.

“The reason solar radiation is an interesting factor here is because most areas that will surpass the lower temperature tolerance for plant growth โ€” meaning an area will become warm enough to support plants in the future but do not support them today โ€” will still be limited by solar radiation,” said Jamie Caldwell, referring to the effects of Earth’s shape and rotation at these elevations.

“Regions at higher latitudes will likely have less frost and snow on the ground in the future, but many plants will not be able to take advantage of those warmer temperatures, because there will not be enough sunlight to sustain their growth,” Iain Caldwell said.

While this is not the first study to dispel the idea that plants will benefit from climate change โ€” other, regional studies, for example, have shown such effects โ€” the new paper takes a broader perspective, “examining what will happen to the majority of the world’s plant growth given factors that limit that growth,” Caldwell said.

Despite the potential for hardship under ongoing emissions rates, the study found that some northern regions โ€” predominantly in China, Russia and Canada โ€” likely will experience improved climatic conditions for plant growth.

“Our study provides important policy implications,” Mora said. “It suggests that we should make better friends with the Canadians. Not to make light of the situation, but imagine the political leverage that climate change could give to some countries if they gain the power to feed the rest of the world.”

The views expressed are those of the author and do not necessarily reflect the views of the publisher. This version of the article was originally published on Live Science.

Unaffordable Rents

June 4, 2015

The National Low Income Housing Coalition has published a comprehensive report entitled Out of Reach 2015 describing in great detail how low wages and high rents affect people throughout the United States.

California, our most populous state and a historical trendsetter, has the 3rd highest rents in the nation.ย  Currently the Fair Market Rent (FMR) for a two-bedroom APARTMENT (not a single family home, which is much higher) is $1,386. In order to afford this level of rent and utilities โ€” without paying more than 30% of income on housing โ€”a household must earn $4,619 monthly or $55,433 annually. Assuming a 40-hour work week, 52 weeks per year, this level of income translates into an hourly Housing Wage of $26.55. This in a state where the minimum wage is $9, the average renter’s wage is $18.96, and where fully 45% of the population rent. But that’s not all. The rent affordable at median income is $1,808.

Yes, unemployment has declined since the 2008 economic collapse. But many of the new jobs are so low-paying that too many people can support themselves only if they’re homeless. In the Los Angeles Area, for example, the trend is to share housing. Except for the well to do and above, it is now common to find three, four or more generations in one household. The higher density and lack of privacy has ramifications that negatively impact the quality of life of the occupants and cause great stress to public services. Water pipes, sewers, schools, freeways- all strain to keep up with the demand, with no relief in sight.

There are of course several reasons for this nightmarish situation. One is the abysmal, widening gap in the distribution of wealth and income, where a tiny minority owns most of the wealth and take the lion’s share of national income. Builders, who are in business to make money, tend to cater to high-end buyers, and that’s not the 45% of the population presently compelled to rent because they cannot afford to buy, even in gang-infested slums. Another is lack of vacant land to build on within the greater metro area, already absurdly spread out. Yet a third is lack of economic growth east and north of the city due to a number of factors, including demographic changes, topography and lack of water, currently exacerbated by the ongoing long term mega drought.

Thus, the higher rents are a function of lack of large-scale, low-cost new construction, particularly for young people saddled with long term college loans. Under the present circumstances, it’s no surprise to see a declining birth rate for those with college degrees, with all its related consequences.

Global Warming Not Slowing

A study published on June 4 2015 by the National Climatic Data Center at the National Oceanic and Atmospheric Administration (NOAA) found that a UN 2013 report erroneously concluded that there had been a 15-year hiatus in global warming. Turns out, the rate of global warming was measured incorrectly: the hiatus never happened and global warming continues unabated.


Other studies have suggested that several factors such as air pollution, lower solar energy levels and volcanic activity may have slowed down the rate of warming. As the trend did not change, it is now thought that had it not been for those factors, the rate of warming might have actually increased.

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