Eeyore's News and View

Magnetic Field Hole Could Cripple Communications

Scientists have found two large leaks in Earth's magnetosphere, the region around our planet that shields us from severe solar storms.

The leaks are defying many of scientists' previous ideas on how the interaction between Earth's magnetosphere and solar wind occurs: The leaks are in an unexpected location, let in solar particles in faster than expected and the whole interaction works in a manner that is completely the opposite of what scientists had thought.

The findings have implications for how solar storms affect the our planet. Serious storms, which involved charged particles spewing from the sun, can disable satellites and even disrupt power grids on Earth.

The new observations "overturn the way that we understand how the sun's magnetic field interacts with the Earth's magnetic field," said David Sibeck of NASA's Goddard Space Flight Center in Greenbelt, Md., during a press conference today at the annual meeting of the American Geophysical Union in San Francisco.

The bottom line: When the next peak of solar activity comes, in about 4 years, electrical systems on Earth and satellites in space may be more vulnerable.

How it works

Earth's magnetic field carves out a cavity in the sun's onrushing field. The Earth's magnetosphere is thus "buffeted like a wind sock in gale force winds, fluttering back and forth in the" solar wind, Sibeck explained.

Both the sun's magnetic field and the Earth's magnetic field can be oriented northward or southward (Earth's magnetic field is often described as a giant bar magnet in space).

The sun's magnetic field shifts its orientation frequently, sometimes becoming aligned with the Earth, sometime becoming anti-aligned.

Scientists had thought that more solar particles entered Earth's magnetosphere when the sun's field was oriented southward (anti-aligned to the Earth's), but the opposite turned out to be the case, the new research shows.

The work was sponsored by NASA and the National Science Foundation and based on observations by NASA's THEMIS (Time History of Events and Macroscale Interactions during Substorms) satellite.

How many and where

Essentially, the Earth's magnetic shield is at its strongest when scientists had thought it would be at its weakest.

When the fields aren't aligned, "the shield is up and very few particles come in," said physicist Jimmy Raeder of the University of New Hampshire in Durham.

Conversely, when the fields are aligned, it creates "a huge breach, and there's lots and lots of particles coming in," Raeder added, at the news conference.

As it orbited Earth, THEMIS's five spacecraft were able to estimate the thickness of the band of solar particles coming when the fields were aligned — it turned out to be about 20 times the number that got in when the fields were anti-aligned.

THEMIS was able to make these measurements as it moved through the band, with two spacecraft on different borders of the band; the band turned out to be one Earth radius thick, or about 4,000 miles (6,437 kilometers).

Measurements of the thickness taken later showed that the band was also rapidly growing.

"So this really changes our understanding of solar wind-magnetosphere coupling," said physicist Marit Oieroset of the University of California, Berkeley, also at the press conference.

And while the interaction of anti-aligned particles occurs at Earth's equator, those of aligned particles occur at higher latitudes both north and south of the equator.

The interaction is "appending blobs of plasma onto the Earth's magnetic field," which is an easy way to get the solar particles in, said Sibeck, a THEMIS project scientist.

Next solar cycle

This finding not only has implications for scientists' understanding of the interaction between the sun and Earth's magnetosphere, but for predicting the effects to Earth during the next peak in the solar cycle.

The Sun operates on an 11-year cycle, alternating between active and quiet periods. We are currently in a quiet period, with few sunspots on the sun's surface and fewer solar flares, though the next cycle of activity has begun.

It is expected to peak around 2012, bringing lots of sunspots, flares and coronal mass ejections (CMEs). CMEs can interact with the Earth's magnetosphere, causing problems for satellites, communications, and power grids.

This upcoming active period now looks like it will be more intense than the previous one, which peaked around 2006, some scientists think. The reason is the changes in the sun's alignment.

During the last peak, solar fields hitting the Earth were first anti-aligned then aligned. Anti-aligned fields can energize particles, but in this case, the energy came before the particles themselves, which doesn't create much of a fuss in terms of geomagnetic storms and disruptions.

But the next cycle will see aligned, then anti-aligned fields, in theory amplifying the effects of the storms as they hit.

Raeder likens the difference to igniting a gas stove one of two ways: In the first way, the gas is turned on and the stove is lit and you get a flame.

In the other way, you let the gas run for awhile, so that when you add the gas you get a much bigger boom.

"It should be that we're in for a tough time in the next 11 years," Sibeck said.

http://www.foxnews.com/story/0,2933,468268,00.html

A Giant Breach in Earth's Magnetic Field Dec. 16, 2008: NASA's five THEMIS spacecraft have discovered a breach in Earth's magnetic field ten times larger than anything previously thought to exist. Solar wind can flow in through the opening to "load up" the magnetosphere for powerful geomagnetic storms. But the breach itself is not the biggest surprise. Researchers are even more amazed at the strange and unexpected way it forms, overturning long-held ideas of space physics. "At first I didn't believe it," says THEMIS project scientist David Sibeck of the Goddard Space Flight Center. "This finding fundamentally alters our understanding of the solar wind-magnetosphere interaction." The magnetosphere is a bubble of magnetism that surrounds Earth and protects us from solar wind. Exploring the bubble is a key goal of the THEMIS mission, launched in February 2007. The big discovery came on June 3, 2007, when the five probes serendipitously flew through the breach just as it was opening. Onboard sensors recorded a torrent of solar wind particles streaming into the magnetosphere, signaling an event of unexpected size and importance. Right: One of the THEMIS probes exploring the space around Earth, an artist's concept. "The opening was huge—four times wider than Earth itself," says Wenhui Li, a space physicist at the University of New Hampshire who has been analyzing the data. Li's colleague Jimmy Raeder, also of New Hampshire, says "1027 particles per second were flowing into the magnetosphere—that's a 1 followed by 27 zeros. This kind of influx is an order of magnitude greater than what we thought was possible." The event began with little warning when a gentle gust of solar wind delivered a bundle of magnetic fields from the Sun to Earth. Like an octopus wrapping its tentacles around a big clam, solar magnetic fields draped themselves around the magnetosphere and cracked it open. The cracking was accomplished by means of a process called "magnetic reconnection." High above Earth's poles, solar and terrestrial magnetic fields linked up (reconnected) to form conduits for solar wind. Conduits over the Arctic and Antarctic quickly expanded; within minutes they overlapped over Earth's equator to create the biggest magnetic breach ever recorded by Earth-orbiting spacecraft. The size of the breach took researchers by surprise. "We've seen things like this before," says Raeder, "but never on such a large scale. The entire day-side of the magnetosphere was open to the solar wind." The circumstances were even more surprising. Space physicists have long believed that holes in Earth's magnetosphere open only in response to solar magnetic fields that point south. The great breach of June 2007, however, opened in response to a solar magnetic field that pointed north. "To the lay person, this may sound like a quibble, but to a space physicist, it is almost seismic," says Sibeck. "When I tell my colleagues, most react with skepticism, as if I'm trying to convince them that the sun rises in the west." Here is why they can't believe their ears: The solar wind presses against Earth's magnetosphere almost directly above the equator where our planet's magnetic field points north. Suppose a bundle of solar magnetism comes along, and it points north, too. The two fields should reinforce one another, strengthening Earth's magnetic defenses and slamming the door shut on the solar wind. In the language of space physics, a north-pointing solar magnetic field is called a "northern IMF" and it is synonymous with shields up! "So, you can imagine our surprise when a northern IMF came along and shields went down instead," says Sibeck. "This completely overturns our understanding of things." Northern IMF events don't actually trigger geomagnetic storms, notes Raeder, but they do set the stage for storms by loading the magnetosphere with plasma. A loaded magnetosphere is primed for auroras, power outages, and other disturbances that can result when, say, a CME (coronal mass ejection) hits. The years ahead could be especially lively. Raeder explains: "We're entering Solar Cycle 24. For reasons not fully understood, CMEs in even-numbered solar cycles (like 24) tend to hit Earth with a leading edge that is magnetized north. Such a CME should open a breach and load the magnetosphere with plasma just before the storm gets underway. It's the perfect sequence for a really big event." Sibeck agrees. "This could result in stronger geomagnetic storms than we have seen in many years." A video version of this story may be found

here. For more information about the THEMIS mission, visit http://nasa.gov/themis

http://science.nasa.gov/headlines/y2008/16dec_giantbreach.htm

Forget the economy: Killer asteroids could pose real danger

By Robert S. Boyd | McClatchy Newspapers

WASHINGTON — A blue-ribbon panel of scientists is trying to determine the best way to detect and ward off any wandering space rocks that might be on a collision course with Earth.

"We're looking for the killer asteroid,'' James Heasley, of the University of Hawaii's Institute for Astronomy, last week told the committee that the National Academy of Sciences created at Congress' request.

Congress asked the academy to conduct the study after astronomers were unable to eliminate an extremely slight chance that an asteroid called Apophis will slam into Earth with devastating effect in 2036.

Apophis was discovered in 2004 about 17 million miles from Earth on a course that would overlap our planet's orbit in 2029 and return seven years later. Observers said that the asteroid — a massive boulder left over from the birth of the solar system — is about 1,000 feet wide and weighs at least 50 million tons.

After further observations, astronomers reported that the asteroid would skim by Earth harmlessly in 2029, but it has a one in 44,000 probability of slamming into our planet on Easter Sunday, April 13, 2036.

Small changes in Apophis' path that could make the difference between a hit or a miss are possible, according to Jon Giorgini, a planetary analyst in NASA's Jet Propulsion Laboratory in Pasadena, Calif.

"We have not eliminated the threat in 2036,'' Lindley Johnson, the manager of NASA's asteroid detection program, told the committee.

The academy panel is headed by Irwin Shapiro, a former director of the Harvard-Smithsonian Center for Astrophysics in Cambridge, Mass. It has a two-part assignment from Congress: Detect and deflect asteroids that might hit earth.

First, the Shapiro committee is supposed to propose the best way to detect and analyze 90 percent of the so-called "near Earth objects'' orbiting between Mars and Venus that are wider than 460 feet by 2020.

About 20 percent of these are identified as potentially hazardous objects because they might pass within 5 million miles of Earth (20 times the distance to the Moon).

More than 5,000 near Earth objects, including 789 potentially hazardous objects, have been identified so far. Johnson predicted that future surveys will find at least 66,000 near Earth objects and 18,000 potentially hazardous objects.

A collision with one or more of these many objects littering the solar system is inevitable, Johnson said. "Once every hundred years there might be something to worry about, but it could happen tomorrow.''

For example, astronomers had only 24 hours' notice of a small asteroid that blew up over northern Africa on Oct. 7. A larger, more dangerous object presumably would be spotted years or decades ahead, giving humans time to change its course before it hit.

The Shapiro panel's second task is to review various methods that have been proposed to deflect or destroy an incoming asteroid and recommend the best options. They include a nuclear bomb, conventional explosives or a spacecraft that would push or pull the asteroid off its course.

Offbeat ideas are painting the surface of the asteroid so that the sun's rays would heat it differently and alter its direction, and a ``gravity tractor, ''a satellite that would fly close to the asteroid, gently nudging it aside.

The earlier that a dangerous asteroid is found, and the farther it is from Earth, the easier it will be to change its trajectory, panel members were told. A relatively small force would be enough while the object is millions of miles away.

The year 2029 could be crucial. When Apophis makes its first pass by Earth, its track can be more precisely determined. That will enable astronomers to judge whether Earth will escape with a near miss or will have to take swift action to avoid a blow that could devastate a region as large as Europe or the Eastern United States.

To deflect an asteroid, scientists need to know its shape, weight and composition. A ball of loose rubble would be handled differently from a solid metallic rock.

"Finding them is one thing, but you have to know your enemy,'' said James Green, the director of NASA's Planetary Science Division.

So far, NASA has spent $41 million on asteroid detection and deflection, but the Near Earth Object Program is running out of money.

"It's just barely hanging on,'' Shapiro said.

Two expensive telescopes to focus on dangerous asteroids have been proposed, but Congress and the incoming Obama administration must be persuaded to approve the money.

"Without new telescopes, we'd never get to 90 percent (detection),'' Johnson said.

After a lot of original skepticism, Congress now looks favorably on the asteroid project, according to Richard Obermann, the staff director of the House Subcommittee on Space and Aeronautics.

"There used to be a high giggle factor among members,'' Obermann said. "But it's now a very respectable area of investigation.''

Johnson told the Shapiro committee that the search for killer asteroids must have a high priority.

"The space program could provide humanity few greater legacies than to know the time and place of any cosmic destruction to allow ample time to prepare our response to that inevitable event,'' he said.
http://www.mcclatchydc.com/251/story/58025.html

World faces "total" financial meltdown: Bank of Spain chief

The governor of the Bank of Spain on Sunday issued a bleak assessment of the economic crisis, warning that the world faced a "total" financial meltdown unseen since the Great Depression.

"The lack of confidence is total," Miguel Angel Fernandez Ordonez said in an interview with Spain's El Pais daily.

"The inter-bank (lending) market is not functioning and this is generating vicious cycles: consumers are not consuming, businessmen are not taking on workers, investors are not investing and the banks are not lending.

"There is an almost total paralysis from which no-one is escaping," he said, adding that any recovery -- pencilled in by optimists for the end of 2009 and the start of 2010 -- could be delayed if confidence is not restored.

Ordonez recognised that falling oil prices and lower taxes could kick-start a faster-than-anticipated recovery, but warned that a deepening cycle of falling consumer demand, rising unemployment and an ongoing lending squeeze could not be ruled out.

"This is the worst financial crisis since the Great Depression" of 1929, he added.

Ordonez said the European Central Bank, of which he is a governing council member, would cut interest rates in January if inflation expectations went much below two percent.

"If, among other variables, we observe that inflation expectations go much below two percent, it's logical that we will lower rates."

Regarding the dire situation in the United States, Ordonez said he backed the decision by the US Federal Reserve to cut interest rates almost to zero in the face of profound deflation fears.

Central banks are seeking to jumpstart movements on crucial interbank money markets that froze after the US market for high-risk, or subprime mortgages collapsed in mid 2007, and locked tighter after the US investment bank Lehman Brothers declared bankruptcy in mid September.

Interbank markets are a key link in the chain which provides credit to businesses and households.
http://www.breitbart.com/article.php?id ... _article=1

IMF chief warns 2009 may be 'even darker'
The head of the International Monetary Fund (IMF) warned on Sunday that the economic situation could get even worse in 2009 if governments fail to take firm enough action.

"Our forecasts are already very dark but they will be even darker if not enough fiscal stimulus is implemented," Dominique Strauss-Kahn told BBC radio.

"We see 2009 as really being a bad year, with recession for most advanced economies and growth decreasing for emerging economies."

The IMF has called for global fiscal stimulus of about two percent of GDP, equivalent to some 1.2 trillion dollars.

He added that he feared recent initiatives, including that announced by the G20 in Washington last month, may not go far enough.

"I can see that some measures have been announced, but I'm afraid it won't go far enough," he said.

Strauss-Kahn said he understood Germany's "reluctant" attitude to the steps announced by some countries including Britain but added it would be best if all countries act together to "face the recession".

"I respect the traditional view of the Germans but nevertheless I think we are at a time when we should be a bit more imaginative than we have been in the past," the French former finance minister said.

http://www.breitbart.com/article.php?id=081221160957.e5z1c9vr&show_article=1

Archbishop warns of dangers of economic dogma

LONDON (AFP) — Archbishop of Canterbury Rowan Williams warned Monday that governments should not pursue dogmatic solutions to the financial crisis at the risk of the most vulnerable, saying that is what the Nazis did.

Writing in the Daily Telegraph newspaper, he said Hitler's movement was based on a system of principles that "worked quite consistently once you accepted that quite a lot of people that you might have thought mattered as human beings actually didn't".

Williams, the most senior cleric in the Church of England, said that in the current climate, "what looked like a principled defence of some of our economic assumptions... seems more ragged and vulnerable than it once did".

He questioned the human costs of measures to tackle the downturn.

"What about the unique concerns and crises of the pensioner whose savings have disappeared, the Woolworth's (bankrupt store) employee, the hopeful young executive, let alone the helpless producer of goods in some Third-world environment where prices are determined thousands of miles away?" he asked.

Williams added: "How we all work is vastly complicated -- no one is pretending it isn't. But without these anxieties about the specific costs, we've lost the essential moral compass."

http://www.google.com/hostednews/afp/article/ALeqM5j6Rs-H23gCQ5Iu8h6AszRQX03FpA

High Street hits back as early sales spark Christmas spending spree - but 15 retail giants will still go bust next month

Britain's beleaguered High Street stores enjoyed one of their best weekends of the year as consumers spent more than £100million in just two days - but were warned up to 15 well-known High Street stores could still go bust next month.
Up to 140,000 shoppers packed out Oxford Street, Regent Street and Bond Street in London's West End - a rise of almost 20 per cent compared to the same weekend last year.
Department store Selfridges said it was "one of the busiest weekends of the year", while John Lewis reported its London stores sold seven per cent more than this time last year.
But any glimmer of hope for retailers after a disastrous year was snubbed out by a dire warning of the economic turbulence facing Britain in the New Year.
Nick Hood, of insolvency experts Begbies Traynor, gave the gloomy picture. 'I would not be surprised if between ten and 15 national and regional chains collapsed before the middle of January,' he said.
He did not name any of the likely casualties, but they could include some of the best-known names on the High Street.
Up to 82 per cent of the 100 largest stores were holding sales or promotions at the weekend, a report, from the accountants PricewaterhouseCoopers, found. A month ago, just 52 per cent were cutting prices.
Also, more and more retailers are ripping up the rule book and starting their sales on Christmas Eve.
A growing list of stores will start their sales up to 48 hours early. John Lewis, known as the bellwether of the High Street, will start its 'clearance' sale online at 6pm on Christmas Eve - the earliest it has ever begun.
That retailers are reducing prices so dramatically at what should be the height of the Christmas spend, gives some indication of the depth of panic. Andy Garbutt, a retail
partner at PWC, said: 'The level of discounting is completely unprecedented.
'The discounts are huge. Some of the chains need to generate cash due to quarterly rent day next week and so they can pay staff.'
Experts believe the recession Britain is facing could be long and painful. It has already started to claim casualties on the High Street.
Last week, the furniture chain MFI stopped trading with the loss of about 1,400 jobs.
The Woolworths chain, best known for its pick-and-mix sweets, has followed a similar fate with the loss of 27,000 jobs.

Woolworths was best known for its pick-and-mix sweets
All of its 807 stores will close by January 5, with the first to shut on December 27.
The closing-down sale will offer discounts of up to 60 per cent on more than 40million items such as DVDs, CDs and toys.
Discount chains are among the few winners. Poundland plans to create 1,200 jobs next year.
Experts are concerned that retailers are suffering so badly at what is likely to prove only the beginning of the financial downturn.
Nick Bubb, an analyst from the investment firm Pali International, said: 'The scale of the crisis will have an impact on consumer confidence.
'The sobering thing is that this downturn has only just begun. We have another two years of this.'
On a more positive note, figures released yesterday signalled that more shoppers are venturing out.
There were 7 per cent more in stores on Saturday than on the final Saturday before last Christmas, according to the National High Street Index, which counts shoppers visiting 'prime' High Streets in more than 50 town centres.
'The swathe of sales currently under way among retailers appears to be encouraging shoppers into our High Streets in ever greater numbers,' it said.
'But it does not monitor how much shoppers spend, or whether they are simply 'looking and leaving'.
http://www.dailymail.co.uk/news/article-1099344/High-Street-hits-early-sales-spark-Christmas-spending-spree--15-retail-giants-set-bust.html

Eeyores news with a view

Too many times in two weeks,
Dow plunges 733 on new disheartening economic data October 15, 2008 - 7:39pm
By JEANNINE AVERSA AP Economics Writer
(AP) - The economy lurched deeper into the doldrums Wednesday and took the stock market down with it, sending the Dow Jones industrials to a staggering 733-point loss and erasing any hopes that the convulsions that have shaken Wall Street for a month were over.
The daylong sell-off came as retailers reported the biggest drop in sales in three years and as a Federal Reserve snapshot showed Americans are spending less and manufacturing is slowing around the country.
Piling up losses in a rough final hour of trading, the Dow ended the day down nearly 8 percent _ its steepest drop since one week after Black Monday in 1987. The Dow has wiped out all but about 127 points of its record-shattering 936-point gain on Monday of this week.
Earlier this week, after governments around the world announced plans to use trillions of dollars to prop up banks, including a U.S. plan to buy about $250 billion in bank stocks, the market had appeared to be turning around _ or at least calming down.
Instead, relentless selling gave the Dow its 20th triple-digit swing in the past 23 trading sessions, an unprecedented run of volatility. The Dow has finished higher on only one day this month. The loss of 733 points is the second-worst ever for the average, topped only by a 778-point decline Sept. 29.
The plunge in stocks put the nation's economic anxiety front-and-center as the two major presidential candidates, Sens. Barack Obama and John McCain, prepared for their final debate Wednesday night in Hempstead, N.Y.
In the meantime, the man they each hope to succeed met with his Cabinet. President Bush predicted "in the long run that this economy will come back."
(the rest of the article is here) http://www.wtop.com/?nid=111&sid=1450051

Again it happening, America is the leader, but a not very good one.
World stocks tumble as Tokyo markets plunge 11 pct October 16, 2008 - 6:34am
Pedestrians watch an electric market board in Tokyo, Thursday, Oct. 16, 2008. Japan's key stock index plunged more than 10 percent in early trade Thursday, hit by another dive on Wall Street and growing recession fears. (AP Photo/Katsumi Kasahara)
By JEREMIAH MARQUEZ AP Business Writer
HONG KONG (AP) - World stocks tumbled Thursday, with Tokyo's market plunging more than 11 percent, after another dive on Wall Street as worse-than-expected data about the U.S. economy heightened fears of a global recession.
Japanese Prime Minister Taro Aso blamed the renewed drop in markets, which had rebounded earlier this week, on investor concerns that the U.S. government's $700 billion bank bailout was insufficient.
"Since it was insufficient, the market is again falling sharply," Aso told lawmakers. He did not elaborate.
Tokyo's Nikkei 225 stock average slid 1,089.02 points, or 11.41 percent, to 8,458.45, its biggest drop since the 1987 stock market crash.
In South Korea, the main index dropped 9.25 percent after Standard & Poor's said it may downgrade the credit ratings of some of the country's leading banks. The ratings agency warned the credit crisis could make it difficult for the companies to refinance maturing debt.
Hong Kong's key index trimmed losses, closing down 4.8 percent after falling more than 8 percent earlier.
Benchmarks in Britain, Germany and France opened about 3 percent lower. Russia's RTS also fell back.
Investors were unnerved by U.S. data showing the country's retail sales fell 1.2 percent in September, almost double the 0.7 percent decline analysts expected _ clear evidence that consumer spending, which accounts for more than two-thirds of U.S. economic activity, was weakening.
That was followed by more bearish data from the U.S. Federal Reserve that showed the economy continued to slow in the early fall as financial and credit market problems took a turn for the worse.
All told, the readings provided some of the most ominous signs to date that the world's largest economy _ a critical export market for Asia _ was sliding into recession, if not already in one.
"Sentiment is deteriorating very fast. People are losing what little confidence they have on a day-by-day basis," said Jacky Choi, a Hong Kong-based fund manager at Value Partners Ltd., which manages about $5 billion in Asia. "Everyone is very worried about the economy in the U.S and around the world.
In New York on Wednesday, the Dow Jones industrial average ended down 733.08, or 7.87 percent, at 8,577.91 _ its second-biggest point loss ever.
U.S. stock futures were higher, suggesting Wall Street might rebound Thursday. Dow futures were up about 1 percent at 8,600. (The rest of the story can be found at:)
http://wtop.com/?nid=111&sid=630962

Great Depression holds lessons for surviving tough economy

(CNN) -- Memories of salvaging and stealing to avoid going hungry are part of the legacy of the Great Depression. Some iReporters say they can't help but look at the current economy and feel the past holds lessons for the present.

Donna LeBlanc of Waxia, Louisiana, says she carries no credit to this day as a result of the frugality and self-reliance instilled in her by her family. Her husband keeps the couple's credit card and maintains a zero balance.
The Great Depression meant scary times for many households as a period of economic downturn spread throughout the world. Historians trace its start to the "Black Tuesday" stock crash on October 29, 1929, and argue that the resulting global desperation set the stage for World War II.
LeBlanc said her grandparents were fortunate that they didn't have investments and could grow -- or catch -- their own food during the Depression years.
Her grandfather Lester was a "Cajun cowboy" often seen wearing a cowboy hat, and her grandmother Ida was a resourceful woman who spent much of the 1930s working as a store clerk. LeBlanc, always told never to keep credit card debt, heard frightful stories from Ida.
"She remembered vividly the barrels of flour, the bolts of cloth and the hunger in the faces of people as they begged for store credit," LeBlanc said. "The store must have been at least marginally successful, because my grandmother was able to purchase, a piece at a time, a complete six-person setting of Gorham Chantilly silverware for her trousseau, linens and even a Lane cedar chest to house her treasures."
The couple would catch wild hogs, feed them corn for a year and eat them once the wild taste was out of the scavenging animals. They also took advantage of available squirrel meat, a common food in the South at that time.
"It was a uniquely disgusting thing ... to see my grandfather take a stewed, skinned squirrel's head, smack the skull's dome with a heavy silver tablespoon, and dine on the brains," LeBlanc said.
Years after the Depression, LeBlanc's grandparents were well off once again. Ida became a packrat and couldn't help saving what she could. When the family opened up the old cedar chest after she died, they found a decades-old treasure trove of sewing materials and other keepsakes. The Great Depression turned many Americans into packrats who couldn't bear to part with anything of potential value. They couldn't always afford to buy what they needed.

Pam van Hylckama Vlieg of Williamsburg, Virginia, says her great grandfather, Glen Surber, resorted to stealing food at times because he had hit rock-bottom.
Surber left the family behind in Saltville, Virginia, so he could head out to West Virginia's coal mines. After he got laid off, he found himself trying to steal chickens from a nearby farmer to feed his hungry family. He hid behind a tree to wait for nightfall, but his plan was stymied when he found another person lurking in the shadows.
"Both men took off running and then they realized they each thought the other was the farmer, but they were both there to steal a chicken," van Hylckama Vlieg said. "Needless to say, that was another night of water bread."
Digging into her memories, van Hylckama Vlieg says her great grandfather eventually found a work program after the New Deal and was able to rebuild his life.
She is confident we haven't hit another Depression and that we've learned enough lessons from the past to avoid letting things get as bad as they were before.
"Poppy always said the world turns and everything that has happened would happen again. I am sure if he were still with us today he would be warning us to start a garden and buy some chickens."
Saving is a habitual behavior for those who have lived through the Great Depression, says Anjanette Sanchez of Globe, Arizona. Her grandmother, Vera Vasquez, had a difficult time with the Great Depression and seemed to be scarred by it long after.
"She spoke of the time with great disgust in her voice as if it was the most awful time of her life," Sanchez said. "She mostly spoke of being hungry and having to wear old boots that didn't fit."
Vasquez continued to save her things and always kept her freezer packed with food -- like frozen cactus to eat with her scrambled eggs -- because she'd lived through harsh times. There was never room for ice cubes.
"I guess to her, food was more valuable than ice," Sanchez said. "Her motto at the table was to eat as much as you want, but not to waste the food. Take all you want, but eat all you take."
Sanchez now passes on the same ideas to her children and reminds them not to be wasteful.

Kimberly Kolaski of Richmond, Virginia, says her family's claim to fame is her great granduncle Paul Satko's remarkable attempt to travel to Alaska in a wooden ark to find land and a better life. He spent a couple of weeks making the treacherous trip on board the boat, termed the Ark of Juneau.
"He was on a mission and he was going to do it no matter what," Kolaski says. She's heard numerous stories about the hardships Satko endured, including being stopped while driving his unusual payload to Seattle, Washington, where the ark was to be launched.
The story is inspirational for the family and provides a sobering lesson about economic security for Kolaski. "I've learned to put my money away and don't touch it," she says.

Sheila Elrod of Atlanta, Georgia, says many secrets to success have been passed along through the years in her family.
"My grandfather, born in 1898, was an established small businessman by 1929, owning and managing a gas station and grill patronized by the mill workers. As his children and grandchildren grew into adulthood, he reminded us of some guiding principles that he learned during the depression."
Elrod says her grandmother worked inside the nearby mill because people of the time believed that one must "work hard, regardless of your status."
"Oddly enough, she and her sisters were ladies that were taught all the graces of being ladies," Elrod said. "However, here's an example that even ladies didn't shy away from hard work during that time.
Elrod said her grandfather had to be careful to whom he gave credit and learned many smart business secrets along the way. He passed them along to Elrod:
Always do the right thing.
Take care of the customer.
Pay attention to details.
Know the people with whom you are doing business.
NEVER borrow money without a clear plan for how you will pay it back.

Richard Holland of Phoenix, Arizona, says his grandfather packed up a Ford Model T in search of a better life. The family ended up taking shelter in a barn while Orville Holland continued onward to find work.
"In those days, telephones were few and far between across the Great Plains, and months elapsed with no word or money from my grandfather. The coming winter was a serious concern as they considered the threat of living in the unheated barn." "As fall approached, the story continues that my grandfather returned in a borrowed car. He had walked, hitchhiked and ridden the rails until he secured a job, saving every penny to finally rent a place for his family."
Gayla Uslu of Conyers, Georgia, says she never understood why her grandmother was so big on saving plastic bowls and other packaging until now.
"She grew up in the depression and also lived in a rural area, far from the soup and bread lines in the urban areas. It wasn't just a matter of getting food, it has to be stored and kept long-term as well."
Uslu finds much to learn from her grandmother and catches herself doing the same things that mystified her before.
"Today, I find myself really thinking twice before I throw uneaten food away. Leftovers aren't such a bad idea anymore, and I find myself holding on to a few of those plastic containers myself."

Iceland shares plunge 76% as trading resumes
Angela Jameson
Shares on the Reykjavik stock exchange plunged by 76 per cent when trading resumed after three days of closure as Iceland’s economy continued to teeter on the brink of collapse.
Shares later recovered to leave the OMX Iceland 15 index down 47 per cent in morning trade.
Market officials said the astounding figure was misleading since the country’s three largest banks — Kaupthing, Landsbanki, Glitnir — which had accounted for three quarters of the exchange’s value, had been removed from the index after they were nationalised last week.
Other financial stocks would remain on the index but would not resume trading until Iceland’s Financial Services Authority gave the green light, the bourse said.
Not counting financial shares, the main index had shed 5 per cent in early afternoon trading.
Trading in three other financial stocks — Straumur-Burdaras, Reykjavik Savings Bank (Spron) and Exista — remain suspended.
The exchange had been suspended since Thursday with the last official trade coming on Wednesday.
A delegation of Icelandic officials began talks in Moscow today over a €4 billion loan to help the country's financial sector. The head of the Icelandic delegation said that there had been no discussion so far on a Russian loan amount to Iceland but the group had received an "excellent reception."
However, the party does not included any ministers or the Icelandic central bank's chief, suggesting that negotiations have some way to go before politicians become involved.
Iceland needs Russia's money to help rebuild its battered economy after the country of 300,000 people became the most potent symbol of the damage wrought by the global credit crisis.
The UK has also offered to lend up to £100 million to Landsbanki, one of three banks taken over by the Icelandic Government, to help facilitate prompt compensation for British savers whose money has been trapped in Icesave's administration.
Iceland has turned to oil-rich Russia for help, where a €4 billion loan would be worth around one per cent of Russia’s gold and foreign exchange reserves.
Moscow has unveiled a rescue package for the Russian market worth more than $210 billion, but analysts say capital flight may not stop until global financial markets stabilise.
Helping Iceland could help to ensure that happens, although Russia’s move is widely regarded as politically motivated.
Last week, Iceland said the loan could be for between three and four years at an interest rate of between 30 and 50 basis points above Libor.
http://business.timesonline.co.uk/tol/business/industry_sectors/banking_and_finance/article4940623.ece

Stocks plunge anew as retail sales show steep drop October 10, 2008 - 7:17pm
By TIM PARADIS AP Business Writer
NEW YORK (AP) - Investors agonizing over a faltering economy sent the stock market plunging all over again Wednesday after two disheartening reports convinced Wall Street that a recession, if not already here, is inevitable. The Dow Jones industrials dropped as much as 572 points, more than half their huge 936-point advance from Monday, and all the major indexes fell at least 5 percent.
The government's report that retail sales plunged in September by 1.2 percent _ almost double the 0.7 percent drop analysts expected _ made it clear that consumers are reluctant to spend amid a shaky economy and a punishing stock market.
The Commerce Department report was sobering because consumer spending accounts for more than two-thirds of U.S. economic activity. The reading came as Wall Street was refocusing its attention on the faltering economy following stepped up government efforts to revive the stagnant credit markets.
The release of the Beige Book, the assessment of business conditions from the Federal Reserve, added to investors' angst. The report found that the economy continued to slow in the early fall as financial and credit problems took a turn for the worse. The central bank's report supported the market's belief that difficulties in obtaining loans have choked growth in wide swaths of the economy.
"Even though the banking sector may be returning to normal, the economy still isn't. The economy continues to face a host of other problems," said Doug Roberts, chief investment strategist at ChannelCapitalResearch.com. "We're in for a tough ride."
Fed Chairman Ben Bernanke offered a similar opinion, warning in a speech Wednesday that patching up the credit markets won't provide an instantaneous jolt to the economy.
"Stabilization of the financial markets is a critical first step, but even if they stabilize as we hope they will, broader economic recovery will not happen right away," he told the Economic Club of New York.
Analysts have warned that the market will see continued volatility as it tries to recover from the devastating losses of the last month, including the nearly 2,400-point plunge in the Dow over eight sessions. Such turbulence is typical after a huge decline, but the market's anxiety about the economy is also expected to cause gyrations in the weeks and months ahead.
Investors apparently have come to believe that Monday's big rebound, a response to the government's plan to invest $250 billion in banks to get the lending business restarted, was overdone given the problems elsewhere in the economy.
"It really doesn't come as a shock after Monday's gains were I think a little bit excessive," said Charles Norton, principal and portfolio manager at GNICapital, referring to the market's pullback.
He contends that the government has taken so many steps that investors must now wait for some of the actions to help steady the economy.
"It seems like all the tools in the tool chest have mostly been used now and now it's back to reality," he said. "We're still faced with the fact that the economy is slowing and earnings aren't very good."
Doubts about the economy were already surfacing in Tuesday's session, when investors halted an early rally and began collecting profits from stocks' big Monday advance. Wednesday's data confirmed the market's fears that the economy is likely to remain weak for some time, and that corporate profits are likely to suffer.
Mark Coffelt, portfolio manager at Empiric Funds, said moves by European and U.S. government officials to begin investing directly in banks are easing worries about credit. But the steep pullback in stocks that began last month after the credit markets lurched to a near standstill has now created worries that consumers will spend less after seeing the value of their retirement accounts and other investments drop.
"Markets abhor uncertainty and so we got a lot of that resolved this weekend and we got the reward Monday but now people are saying 'OK, now what is the economy going to do?'"
"We're definitely going to get a slowdown from the terror of going through that," Coffelt said.
In late afternoon trading, the Dow fell 544.15, or 5.84 percent, to 8,766.84 after falling more than 572.67 shortly after the release of the Beige Book.
Broader stock indicators also skidded. The Standard & Poor's 500 index fell 69.99, or 7.01 percent, to 928.02, and the Nasdaq composite index fell 110.25, or 6.20 percent, to 1,668.76.
With Wednesday's drop likely to hold, the Dow will, after a one-day break, resume a string of triple-digit losses or gains. On Tuesday, after swinging erratically throughout the session, the blue-chip index closed the day down a moderate 76 points.
The stock market was trying to recover from last week's terrible run, which erased about $2.4 trillion in shareholder wealth and brought the Dow to its lowest level since April 2003. The tumble occurred amid a seize-up in lending stemming from a lack of trust among institutions in response to the bankruptcy of investment bank Lehman Brothers Holdings Inc. and the failure of Washington Mutual Inc., which had been the nation's largest thrift.
The credit markets have been showing tentative signs of recovery, though they remain strained, and demand for safe assets remains high. The three-month Treasury bill on Wednesday was yielding 0.33 percent, up from 0.21 percent on Tuesday. Overall yields remain low, showing that demand is so high that investors are willing to earn meager returns as long as their principal is preserved.
The yield on the benchmark 10-year Treasury note, which moves opposite its price, fell to 4.01 percent from 4.03 percent late Tuesday.
Meanwhile, the Labor Department said the producer price index, which measures inflation pressures before they reach the consumer, fell 0.4 percent in September, driven by lower energy costs. That decline matched analysts' expectations.
In corporate news, Intel Corp., topped analysts' estimates and posted a third-quarter profit increase of 12 percent. Shares of the world's largest maker of PC microprocessors fell 44 cents, or 2.8 percent, to $15.49.
JPMorgan's results topped forecasts but the problems seen in all types of loans, not just home equity debt but also prime mortgages and credit cards, is worrisome for the banking industry. The stock fell 63 cents to $40.08.
Wells Fargo rose $1.17, or 3.5 percent, to $34.69 after its report.
Declining issues outnumbered advancers by about 7 to 1 on the New York Stock Exchange, where volume came to 1.1 billion shares.
The Russell 2000 index of smaller companies fell 35.69, or 6.43 percent, to 518.96.
In Asian trading, Hong Kong's Hang Seng Index lost nearly 5 percent after rising more than 13 percent the previous two days. Markets in Australia, South Korea, China, India and Singapore also sank. Japan's Nikkei 225 index, however, ended up 1.1 percent after soaring 14 percent in the previous session.
In Europe, Britain's FTSE 100 fell 7.08 percent, Germany's DAX index fell 6.49 percent, and France's CAC-40 fell 6.82 percent.
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On the Net:
New York Stock Exchange: http://www.nyse.com/
Nasdaq Stock Market: http://www.nasdaq.com/

Unemployment rises at fastest rate in 17 years
Grainne Gilmore

UK unemployment has surged by a 17-year high of 164,000 to 1.79 million and could rise even further to two million by the end of the year.
The rise in unemployment during the three months to August marks the biggest increase since 1991 while the number of people claiming jobless benefits rose by 31,800 over the 12 weeks to September.
David Blanchflower, a member of the Bank of England's rate-setting committee has predicted the ILO measure of unemployment could hit two million by the end of the year.
The total number of people in employment slumped by 122,000 in the three weeks to August, the largest drop since early 1993. (the rest of the story is at)
http://business.timesonline.co.uk/tol/business/economics/article4946956.ece

Jobless shock sends London shares diving
Dearbail Jordan
London shares ended a two-day rally this morning as fears of a recession intensified and UK unemployment jumped at the fastest rate in 17 years.
The FTSE 100 index of leading blue chip companies lost 137.91 points at 4,256.3 following the surprise rise in jobless numbers, extending earlier losses when Rio Tinto, the mining giant, announced it would delay plans to sell $10 billion in assets due to "challenging financial markets"
In the three months to August, unemployment grew by 164,000 to 1.79 million – the fastest rise since 1991 – while the number of people claiming jobless benefit rose by 31,800 in the three months to September.
Across other markets, focus shifted from the global banking bailout that has been consuming investors to the wider economy and fears that a recession will soon envelop leading industrialised nations. (the rest of the story is at)
http://business.timesonline.co.uk/tol/business/markets/article4947445.ece


Researchers expect hackers to prey on cell phones October 15, 2008 - 12:25am
By JORDAN ROBERTSON AP Technology Writer
SAN FRANCISCO (AP) - Some of the most vicious Internet predators are hackers who infect thousands of PCs with special viruses and lash the machines together into "botnets" to pump out spam or attack other computers.
Now security researchers say cell phones, and not just PCs, are the next likely conscripts into the automated armies.
The mobile phone as zombie computer is one possibility envisioned by security researchers from Georgia Tech in a new report coming out Wednesday.
The report identifies the growing power of cell phones to open a new avenue of attack for hackers. Of particular concern is that as cell phones get more computing power and better Internet connections, hackers can capitalize on vulnerabilities in mobile-phone operating systems or Web applications.
Botnets, or networks of infected or robot PCs, are the weapons of choice when it comes to spam and so-called "denial of service attacks," in which computer servers are overwhelmed with Internet traffic to shut them down. For example, botnets were used against Estonia's government and financial Web sites in a devastating wave of attacks last year.
Botnets are so troubling because they have massive computing power and a seemingly endless supply of newly infected PCs to replace old ones that are wiped clean or taken offline. Millions of PC have fallen victim. The owners typically never know.
The Georgia Tech researchers say that if cell phones become absorbed in botnets, new types of moneymaking scams could be born. For example, infected phones could be programmed to call pay-per-minute 1-900 numbers or to buy ringtones from companies set up by the criminals.
"The question is, can they do it effectively _ make a lot of money without much risk?" said botnet expert Joe Stewart, director of malware research with SecureWorks Inc. "And if they can, then they will do it."
The Georgia Tech researchers say a big appeal of cell phones for hackers is that the devices are generally always on, they're sending and receiving more data, and they typically have poor security. Antivirus software would suck up massive amounts of battery life, which is a killer on a mobile device.
"This is the perfect platform (for hackers)," said Patrick Traynor, an assistant professor of computer science at Georgia Tech and a contributor to its Emerging Cyber Threats Report.
One big hurdle hackers will face is learning how the cellular networks work and adapting their attacks. Unlike the wide-open world of Internet providers, cell phone operators have tighter control over their networks, which means they could shut down the lines of communication between infected phones much easier.
Traynor noted that researchers have very little hard evidence that hackers are already targeting cell phones. But successfully attacking cell phones requires that people do a lot of Internet browsing and downloading programs onto their phones, and that is just starting to happen now.
"There are some challenges for the adversaries, but we've seen them overcome the challenges in their way before," Traynor said.
___
On the Net:
http://www.gtiscsecuritysummit.com/

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http://link.brightcove.com/services/player/bcpid1815825713

Eeyore's News and Views

What This Economy Means for You
by Stephen Gandel and Paul J. LimFriday, October 10, 2008provided by

As the most serious credit crisis in decades rocks your finances, you've got to have questions. Here are the answers.
Back in January, when it first became clear the economy and the markets were in for a rough patch, the consensus forecast was that we'd have seen the worst of it by now.
Perhaps you put a bit more cash in the bank, trimmed the fat from your budget and tweaked your 401(k) allocations, but otherwise you were confident you could stay the course.
Then came the extraordinary events of September: the government's seizure of Fannie Mae and Freddie Mac and rescue of American International Group; the bankruptcy of Lehman Brothers and pending sale of Merrill Lynch; the first money market fund loss in more than a decade; a series of bank fire sales; and a politically charged federal bailout plan that could carry a $700 billion price tag. You can't help but wonder what all this means to you.
Here are some key questions, from when stocks could bounce back to what's ahead for the economy and home prices. Choose a topic to get some answers.
The Economy
How Did We Get Here?
By now you likely know that the crisis in the financial markets is the culmination of years of reckless mortgage lending and Wall Street dealmaking. It's the final gasp of the burst housing bubble. But how exactly did this happen?
To find the root cause of Wall Street's woes, you have to go back to the collapse of a different bubble - tech. In 2001, after the dotcom craze ended and the bear market began, the Federal Reserve started aggressively slashing short-term interest rates to stave off recession. By eventually reducing rates to a historically low 1%, the Fed reinflated the economy. But this cheap money sparked a new wave of risk taking.
Homeowners, armed with easy credit, snapped up properties as if they were playing Monopoly. As prices soared, buyers were able to afford ever-larger properties only by taking out risky mortgages that lenders were happily approving with little documentation or money down.
At the same time, Wall Street investment banks got a brilliant idea: bundle the riskiest of these mortgages, then slice and dice these portfolios into tradable bonds to be sold to other banks and investors. Amazingly, bond-rating agencies slapped their highest ratings on the "best" of this debt.
This house of cards came down when subprime borrowers began defaulting on their mortgages. That sent housing prices tumbling, unleashing a domino effect on mortgage-backed securities. Banks and brokerages that had borrowed money to boost the impact of those investments had to race to raise capital.
Some, like Merrill Lynch, were forced to sell. Others, like Lehman Brothers, weren't so lucky. "What we always tell investors is beware of too much leverage in a company," says Brian Rogers, chairman and portfolio manager for T. Rowe Price. "Leverage is the enemy of the investor."
Sure, everyone from former Fed chairman Alan Greenspan to your friends and neighbors played a role in stoking this casino culture. But troubled banks and brokerages can't pass the blame. "These firms closed their eyes and made very bad bets on risky securities that they didn't truly understand," says Jeremy Siegel, finance professor at the University of Pennsylvania's Wharton business school. "Investments that they did not have to make led to their demise."
How Bad Could the Economy Get?
Before the meltdown, economists fell into two camps: those who thought the economy had already slipped into recession and those who thought a recession could still be avoided.
While forecasters still differ on the timing and severity of a downturn, "the consensus view is that we're headed for recession and will be in one until next year," says Mark Zandi, chief economist for Moody's Economy.com.
Corporate profits are already on the verge of falling for a fifth straight quarter, according to Thomson Financial. The next shoe to drop will be consumer spending. "Two years ago, people were using their homes as ATMs, pumping out cash," says Robert Arnott, chairman of the investment consulting firm Research Affiliates in Pasadena. "As banks continue to tighten their lending, that spending is disappearing."
But softer profits and slower spending haven't translated into widespread layoffs yet. "This is the strongest recessionary job market in 40 years," says James Paulsen, chief investment strategist of Wells Capital Management. A jump in unemployment could still be coming, especially given bank and brokerage failures and mergers. But outside of finance and housing, much of the rest of the economy is strong, he says.
The weak dollar is boosting demand for our goods abroad, and lower gas prices are making Americans feel more flush. Add in the cash that the Fed has been hosing into the banking system and we are bound to see growth in 2009. "If all this stimulus has no effect on the economy, that would be a rarity indeed," says Paulsen.
Standard & Poor's chief economist David Wyss expects a mild recession that ends next spring. "Gradually we will regain confidence in the market. Lower oil prices and a falling trade deficit will help," he says. "This is a financial panic, not an economic one."
Of course, that could change if the financial panic doesn't abate soon. If banks remain too scared or broke to lend, would-be home buyers will be frozen out of the market. If that happens, home values could fall even more, crimping confidence and putting the brakes on the economy's greatest engine: the consumer.
Does All This Mean I'll Pay Higher Taxes?
Yes. "Taxes will rise regardless of who wins the Presidency," predicts Greg Valliere, chief political strategist for Stanford Group Co.
It's impossible to say what the final bill for rescuing Wall Street will be. Even before the bill to buy $700 billion of unwanted mortgage-backed debt, the government had already signed on for nearly $365 billion in loan guarantees and other costs.
The eventual price tag will depend in part on the housing market. If it recovers by 2010, the value of mortgage-backed securities could rise, minimizing the tab for taxpayers, says Brian Bethune, chief U.S. financial economist for Global Insight.
"On the other hand," Bethune adds, "if the economy continues to tank into a deeper recession, dragging the housing market along with it, then the costs to the taxpayers easily could escalate to several hundred billions of dollars."
Under Treasury Secretary Henry Paulson's original debt-buyback proposal, some economists predicted the federal deficit could soar to $900 billion in 2009. Even without a bailout, the federal budget was expected to hit $482 billion next year. If government aid pads that figure by $200 billion, the deficit will be back to where it stood in the 1980s - around 5% of GDP. At the very least, that will make it hard for a future President to keep tax-cut promises.
http://finance.yahoo.com/banking-budgeting/article/105918/What-This-Economy-Means-for-You%3B_ylt%3DAn5CeeKqeZp7H.p8PvZFvqJO7sMF

In my "Special Report" of 10-06-08, i made reference to the National Debt Clock and it is scary thinking how much we owe as a Nation. But this next article is actually pretty funny.

NYC National Debt Clock runs out of digits
NEW YORK - In a sign of the times, the National Debt Clock in New York City has run out of digits to record the growing figure.
As a short-term fix, the digital dollar sign on the billboard-style clock near Times Square has been switched to a figure — the "1" in $10 trillion. It's marking the federal government's current debt at about $10.2 trillion.
The Durst Organization says it plans to update the sign next year by adding two digits. That will make it capable of tracking debt up to a quadrillion dollars.
The late Manhattan real estate developer Seymour Durst put the sign up in 1989 to call attention to what was then a $2.7 trillion debt.
http://news.yahoo.com/s/ap/odd_national_debt_clock;_ylt=AvuG5JqrBLm9v4c0ui1lLBADW7oF

New World Order: Global co-operation, nationalisation and state intervention - all in one day
Published Date: 09 October 2008
By Lindsay McIntosh
IT WAS a day of desperate global action, unprecedented in both scale and cost, intended to stymie the international devastation being wrought by the financial crisis.
As the London stock market steeled itself to open again following days of vicious battering, Alistair Darling, the Chancellor, rose to stake the future of the country and the Cabinet on an audacious £500 billion banking bail-out.And barely had the City begun to digest the hugely complex and unorthodox scheme when it was sent reeling again by an unscheduled interest rate cut – mirrored across the world – by the Monetary Policy Committee. It was the first such co-ordinated approach since the 9/11 terrorist attacks in 2001 – yet another indicator, had one been needed, of the gravity of the situation.The half percentage point drop was immediately passed on to millions of borrowers, with leading high-street banks cutting their mortgages.The government's scheme, a three-part plan which takes in short, medium and long-term measures, was welcomed by business leaders and analysts.David Kern, adviser to the British Chamber of Commerce, said: "The government has taken a radical step, but it is one we welcome."But there was concern a phenomenal amount of taxpayers' cash was being staked on a last-ditch measure that could fail. The Taxpayers' Alliance accused ministers of failing to address other options first.Meanwhile, the International Monetary Fund (IMF) issued a fresh warning that Britain was on the brink of recession.In its latest World Economic Outlook, it predicted the UK economy would contract by 0.1 per cent next year as growth across the developed countries slowed to almost zero.The downturn will mean lost jobs, with unemployment forecast to rise from 5.4 per cent to 6 per cent, while public finances were said to be "considerably weaker" than in previous slowdowns. However, the IMF said it was expecting Britain to bounce back strongly in 2010.The £500 billion plan includes the government taking shares of up to £50 billion in leading banks, increasing funds available to banks to £200 billion, and guaranteeing their debts when they lend to one another. The guarantees are likely to cost up to £250 billion.The Prime Minister called the plans "bold and far-reaching", but admitted they would offer no quick fix.Eight UK banks and building societies – including Royal Bank of Scotland, Halifax Bank of Scotland, Barclays, Lloyds TSB and Nationwide – have pledged to increase their capital by £25 billion but the government will pump in the funds if called upon. The Treasury also stands ready to make at least another £25 billion available, if necessary.The Bank of England – alongside its interest rate cut – is taking emergency action to help ensure banks have enough cash to run their day-to-day activities. It has increased to £200 billion the size of its special liquidity scheme that lets banks swap risky assets for Treasury bonds.The government is also making the further £250 billion available for banks to guarantee debt, but a fee will be charged.Mr Brown moved to reassure taxpayers they would have the potential to "earn a proper return" from their investment. There would be "strings attached and conditions to be met" to protect taxpayer interests.One key concern is whether there will be controls over the bonuses of the "fat cat" bank bosses. Gordon Brown, the Prime Minister, said such issues would be dealt with case by case. Remuneration should be "based on responsibility, hard work, effort and enterprise", he said.It had been claimed that RBS bosses, chief executive Sir Fred Goodwin and chairman Sir Tom McKillop, had offered to leave under a boardroom clear-out agreed with the government, but this was denied by the bank.The announcement provided an initial boost to the FTSE 100 index of leading shares, and in particular to banking stocks, but this fell away later in the day. The FTSE closed at a loss of 5 per cent – its lowest close since 2004 – while banks failed to hold on to the huge gains of up to 60 per cent made earlier in the day.When Mr Brown stood to address the House of Commons on the package, which could well determine how his premiership is judged, he was able to announce the interest rate cut.Central banks across Europe, the US, Canada and China also reduced interest rates in an emergency move.The banks hope to encourage nervous consumers and businesses to spend more freely again after widespread housing, credit and financial problems.The cut – which was immediately passed on to more than five million homeowners – was cautiously welcomed by analysts and business leaders.Miles Templeman, director-general of the Institute of Directors, said: "Before today's announcement, the financial system was in the deep freeze. After today, it might be in the fridge, but there is no guarantee. Nobody should be under any illusion that the financial system is now fixed. Our concern now is for the real economy and how much it will slow."There remains a real risk that the economic downturn under way will further undermine bank capital due to rising repossessions and bad debt."Howard Archer, an economist, of Global Insight, said: "It's not the magic pill. We have a lot of difficult times ahead. But the first stage is stopping things getting worse, and the hope is this will help to stabilise the economy."Martin Weale, director of the National Institute of Economic and Social Research, said that, for the UK, it was important that the move came alongside the £500 billion package.He said: "The international banks concluded there is a major international banking crisis. Banks were collapsing in Europe, as well as the United States. I think they rather optimistically concluded a rate cut of this type can restore confidence."Rate cuts were "a valuable piece on the side", but he added: "The key issue is for affected countries to do what Britain has done and show governments are prepared to inject equity capital into banks that look as though they need it."We will only be confident the worst is over when the US adopts a scheme like Britain."And Louise Cuming, the head of mortgages at moneysupermarket.com, warned: "This is not a magic cure-all, and we won't see either the mortgage or the housing market bouncing back to where it was 18 months ago."Following the announcements, Mr Brown spoke by phone to the French president, Nicolas Sarkozy, the German chancellor, Angela Merkel, and the Italian prime minister, Silvio Berlusconi, as well as the EC president, José Manuel Barroso.The government is expected to hold up its plan as a potential model for the rest of Europe. The EU – which is concerned about competition implications of a scheme by Ireland to safeguard its deposits – later said it saw no problem with Britain's move.Mr Darling is due to fly to Washington today to discuss global action on the crisis.How clever was it? We offer some marks out of tenBill Jamieson,on the wisdom and implications of the British bail-outIMMEDIATE IMPACT: 5 out of 10. Shares in HBOS and Royal Bank rallied after a faltering start. HBOS closed 24.5 per cent higher and RBS was up 0.8 per cent. UK shares overall continued to plunge, with the FTSE100 down another 5 per cent or 238.53 points at 4366.69. But the reaction in money markets to the package was notably more positive.TIMING: 1 out of 10. Work has been under way on a bank rescue for weeks. So why the long delay?RATE CUTS: 9 out of 10. The co-ordinated nature of the move by the world's central banks was particularly impressive. But more will be needed in the coming weeks. The near immediate passing on of the half per cent rate cut to mortgage borrowers is desperately needed good news for home-buyers. PRESENTATION:3 out of 10. Not impressive. And negotiations going on till early hours smacked of panic.CONTENT: 8 out of 10. The package itself broadly went down well in money markets. It is seems well thought out, targeted at the key problems of capital strength and liquidity, is flexible, and does not crush the ordinary shareholders into oblivion. OVERALL EFFECT: Jury out. This is going to take time. And this emergency package for UK banks will be of little use if the fiery panic across the world's markets is not staunched. It will not stop the recession that is already under way. But what the deal has certainly prevented is a total collapse in confidence in the UK's financial system. It has improved the odds that there will still be a functioning banking system left by the end of the month. Whether that will be true by the time the storm has run its course may depend on further injections of central bank funds – and more rate cuts. The huge efforts of the US Federal Reserve, the US Treasury, and the British and European governments and central banks have still not turned the tide. WHAT IS THE TREASURY'S AIM?It is to staunch the flight of confidence and to revive the inter-bank market – banks lending to other banks. To meet these objectives, it has effectively created a core group of banks of capital strength that will form the heart of the new UK financial system. By doing so the hope is this will end the flight of confidence and stop the run on bank shares. The government is setting aside a further £25 billion to help other institutions build their capital so that they too will be fit counterparties for the core members. But in reviewing eligibility for inclusion, the government "will have due regard to an institution's role in the UK banking system and the overall economy".It is likely a two-tier banking system will develop, similar to the world of 40 years ago when there was a distinction between clearing banks and secondary banks. The government will require a full commitment from participants in its scheme to support lending to small business and to home-buyers.WILL IT WORK?No-one can be sure. And certainly nothing is going to work until the firestorm raging across global markets is put out. Overnight Japan's stock market plummeted 9.4 per cent – its biggest one-day drop in 21 years. In Germany the Dax Index opened down 4.8 per cent while trading on the Moscow stock exchange was again halted. Not even that co-ordinated rate cut by the US Federal Reserve (to 1.5 per cent), the Bank of England (to 4.5 per cent) and the European Central Bank (3.75 per cent) rallied markets as had been expected. Tumbling share prices are a signal that a severe recession is going to hit whatever governments now do. The overall aim of government is to reduce the risk that recession turns into depression through the vicious cycle between the worsening economy, deteriorating credit quality, heightened financial strains and reduced credit availability. The aim is to ensure that there is still a functioning banking system left a) by the end of the month and b) once the recession ends. The measures themselves will not on their own end the financial crisis. This is global in nature and the interlinkages are complex – and potentially highly flammable. So it is unlikely measures by any one country can return financial conditions to normal. Says Saunders: "We are not yet even halfway through the decline in UK house prices. We are not even close to halfway through the UK recession, with associated job losses, business failures, mortgage arrears and repossessions and debt write- offs. Much pain lies ahead."TOO LITTLE TOO LATE?Many fear so. Further bank recapitalisation and liquidity measures may be needed. And there will almost certainly need to be further rate cuts, taking UK rates down to 3 per cent – possibly lower. Banks move to pass on benefitsLINDSAY MCINTOSHBORROWERS finally got some good news yesterday when UK banks passed on a shock interest rate cut.The Bank of England dropped the base rate from 5 to 4.5 per cent at noon, in the surprise move 24 hours ahead of its scheduled decision. Some economists said it might soon plunge much lower.Yesterday's action was mirrored by the world's major central banks, including the Federal Reserve in the United States and the European Central Bank, in an attempt to prevent a global economic meltdown.Almost instantly, Britain's high street banks pledged to pass on the cut to customers. HBOS, Barclays and Lloyds TSB – which lends through the Cheltenham & Gloucester – were the first to cut their standard variable rates in line with the Bank of England.Where the cut is passed on in full, it will knock about £47 off monthly repayments on a typical £150,000 mortgage, reducing repayments to £1,012.81 a month and saving consumers £570 a year, based on a new rate of 6.5 per cent.Those with loans of £250,000 will benefit even more, saving £79 a month or £950 a year.The rate reduction was welcomed by the Council of Mortgage Lenders, alongside the other measures taken by the government to help the banking sector.Michael Coogan, the CML's director-general, said in cutting mortgage rates, the banks had helped to strengthen the rescue package announced by Gordon Brown, the Prime Minister, and Alistair Darling, the Chancellor."Not only are the tripartite authorities now pulling together decisively to address domestic confidence, but international central bankers are also collaborating much more effectively on their position," he said. "All this decisive action augurs well for an improving market situation, even though no-one is pretending the tough times are over yet."The US Federal Reserve reduced rates from 2 per cent to 1.5 per cent and the European Central Bank trimmed its rates from 4.25 per cent to 3.75 per cent. The central banks of Canada, Sweden and Switzerland all took similar action. The Bank of England said that the drop was justified by likely falls in inflation in the coming months. Howard Archer, the chief European and UK economist at Global Insight, predicted interest rates could be as low as 4 per cent by the end of the year.Who thought what of rescue package"Taken together with the co-ordinated cut in interest rates, today's package represents a welcome step on the road to normality in financial mar-kets, which is so critical for the wellbeing of the United Kingdom economy."Keith Skeoch, CEO, Standard Life Investments • "The government is using taxpayers' money as an easy way out, and haven't fully explored other options that don't put £50 billion of our hard-earned cash on the line."Matthew Elliott, chief executive of the TaxPayers' Alliance• "At last, the UK Treasury and Bank of England Monetary Policy Committee are wakening up to the scale of the crisis triggered by the credit crunch."Jonathan Fair, chief executive of Homes for Scotland• "In the wake of the recent financial carnage, the MPC's decision to cut the base rate by 0.5 per cent to 4.5 per cent is welcome news for struggling UK homeowners. This is the first reduction since April, and many borrowers will be breathing a long-awaited sigh of relief."Ann Robinson, director of consumer policy at uSwitch.com• "It is very welcome that the Bank of England has heeded calls for an interest rate cut to ease lending conditions and provide a stimulus to households and businesses, and brought forward the announcement in conjunction with other central banks. Alex Salmond, First Minister• "Excessive risk-taking should not be rewarded but punished."Gordon Brown, the Prime MinisterCREDIT CRUNCHIN NUMBERSSo what could £500bn buy?• Four-and-a-half NHS's (based on annual UK health budget) • Six UK education systems (based on budget for 2008-9)• 55 UNs (based on its annual budget) • 20 Beijing Olympics• 1,250 Scottish Parliaments• Seven Vietnam wars• Four-and-a-half Iraq wars• South Africa, Nigeria, Cameroon, Ghana, Tunisia, the Ivory Coast, Madagascar, the Republic of Congo, Chad and Malawi combined (based on their GDPs)
http://thescotsman.scotsman.com/latestnews/-New-World-Order.4573452.jp

An eailier blog entry around the end of March, about the boycott of McDonalds. I thought i would pass along this happy ending.
McDonald's surrenders! Boycott declared overFamily group says fast-food giant agrees not to promote 'gay' agenda
Posted: October 09, 20088:40 pm Eastern
By Bob Unruh© 2008 WorldNetDaily
Following the link from the National Gay and Lesbian Chamber of Commerce's website leads to a promotional for children's Happy Meals at the McDonalds website
A corporate executive for McDonald's restaurants who had been on board of directors of the National Gay & Lesbian Chamber of Commerce has stepped down following a boycott of the chain organized by the pro-family American Family Association.
McDonald's officials confirmed today to WND that Richard Ellis, who had been named to the "gay" chamber board after McDonald's contributed $20,000 to the organization, "made a personal decision to step down" after he accepted a new position with McDonald's Restaurants of Canada.
McDonald's officials also told AFA the company has no plans to renew its membership in the special interest group when it expires in December.
"We appreciate the decision by McDonald's to no longer support political activity by homosexual activist organizations," AFA chairman Donald E. Wildmon said in a prepared statement.
WND reported in May when McDonald's signed onto the "gay" agenda, and one executive for the fast-food chain later accused Christian advocates of the traditional family of being motivated by "hate."
The AFA called for a boycott and established a website to facilitate the effort. However, AFA officials today said the boycott was being called off after the company notified the AFA Ellis has resigned from the board and "his seat on the board will not be replaced by McDonald's."
"McDonald's stated that the company would remain neutral in the culture war surrounding homosexual marriage," the AFA said.
The pro-family group noted that in an e-mail to McDonald's franchise owners, the company said, "It is our policy to not be involved in political and social issues. McDonald's remains neutral on same sex marriage or any 'homosexual agenda' as defined by the American Family Association."
McDonald's statement, from media relations vice president William Whitman, said the company "stands by and supports our people. Diversity and inclusion are integral components of our brand and our heritage. We continue to have strong employee networks throughout our company and will continue to align our brand with individuals and organizations that share our belief in supporting our people and the communities we serve."
The "gay" chamber said, "Like all our corporate relationships, McDonald's USA has been a good partner … there has been no discussion between the NGLCC and McDonald's regarding continuing membership, nor has the NGLCC been notified of any move not to renew our work together."
The organization continued, "The NGLCC will continue to align with corporate America in support of equal opportunity for all of America's worker (sic) and small businesses."
When Ellis joined the NGLCC board he proclaimed: "I'm thrilled to join the National Gay & Lesbian Chamber of Commerce team and ready to get to work. I share the NGLCC's passion for business growth and development within the LGBT community and I look forward to playing a role in moving these important initiatives forward."
Ellis had only recently joined McDonald's USA, previously holding the position of vice president of communications and public affairs for McDonald's in Canada, a division to which he now apparently is returning.
The American Family Association is one of the largest pro-family organizations in the nation with between 2 and 3 million online supporters.
As WND previously reported, after Wal-Mart joined the NGLCC, its income started declining as Christian organizations reacted to the news.
CNN reported Wal-Mart officials later decided to pursue a lower level of homosexual promotions.
"We are not currently planning corporate-level contributions to GLBT groups," Mona Williams, the company's senior vice president of corporate communications, told CNN only months after the issues arose.
The chamber group describes itself as promoting the LGBT community first and always.
Under a "What we do" page is listed a variety of goals, including "disseminate news and information central to the success of LGBT businesses … ensure increased opportunity and equality for LGBT professionals … help LBGT businesses gain more procurement opportunities …. provide strong lobbying efforts for LBGT business causes."
Other corporate sponsors of the NGLCC include Coors Light and Kodak, who have been leaders in advocating homosexuality, as well as IBM, Wells Fargo, JPMorganChase, Motorola, Intel, Avis, Pepsico, OfficeMax and Coldwell Banker.
It also was revealed Happy Meals profits had been used to send 56 McDonald's staff members to a meeting in San Diego to strategize about promoting homosexuality within the company.
But the AFA had sought only a statement of neutrality in the culture wars from the company, not an abandonment of its workers or communities.
WND also has reported on AFA's documentation of McDonald's sponsorship of a homosexual festival featuring public nudity for both men and women.
The AFA revealed McDonald's sponsored the 2008 San Francisco "Gay" Pride parade with a television commercial. The ad originally was posted on YouTube by a McDonald's employee, the group said. "After AFA exposed it, it was removed by the McDonald's employee," the AFA said.
The original McDonald's position supporting the NGLCC agenda, however, came down to a matter of dollars and cents for officials for a family of mutual funds.
They accused McDonald's officials of "neglecting" their "fiduciary" duty to stockholders by their pursuit of homosexual activism.
"It continues to amaze me that corporations, like McDonald's, continue to publicly and financially support things that alienate their consumer base," said Arthur Ally, the president of the Timothy Plan family of mutual funds.
The company refuses to invest with McDonald's.
"Shareholders as well as customers should be outraged," Ally said, "at the blatant position this company has taken on this issue. McDonald's corporation has a fiduciary responsibility to their shareholders to continue to earn profits and expand their company. By alienating such a large consumer base, the Christian community, they are undoubtedly neglecting this responsibility."
The AFA's boycott site comment forum had attracted thousands of comments such as:
"America is tired of corporations and organizations twisting the free speech and actions of its citizens into 'hatred' when we simply oppose the corporation's, or organization's, involvement in areas where we don't want our money going. Don't expect any more of my money."
"McDonald's is a thing of the past for me."
"We love your fries, but we will not compromise truth. You have taken money that our family, and millions of others, have contributed to the success of the McDonald's Corp. and chosen to use it for an agenda that defies the foundation of our nation, the family, as created by a man and woman."
"I will take [my] 10 great grand children to Wendy's, Burger King or some other place. YOU ARE NOT THE ONLY GAME IN TOWN!"
"Yes Wendy's, I will have a Frosty with that."
"Consider my family's patronage 'McGone.'"
http://www.worldnetdaily.com/index.php?fa=PAGE.view&pageId=77515