8.05.2012

Troika inspectors conclude Greek visit, back in September

ATHENS | Sun Aug 5, 2012 10:48am

ATHENS (Reuters) - Greece has made progress in finding budget cuts needed to continue its bailout program but not all work is done and international inspectors will return in September for a final verdict, officials said on Sunday.Inspectors from the International Monetary Fund, the European Commission and the European Central Bank - known as the troika - concluded a visit to Greece on Sunday saying the talks with the new coalition government were productive.
"Talks went well, we made good progress. We will take a break and come back in early September," the IMF's mission chief for Greece Poul Thomsen told reporters after a meeting at the finance ministry.
Greece has pledged a series of fiscal and reform measures worth 11.5 billion euros to convince international lenders to keep Athens hooked to a 130 billion euro lifeline and avoid bankruptcy.
With a 3.2 billion euro bond maturing in August and Greek officials warning the state will run out of cash within weeks, the troika's review is crucial for Greece's survival.
"The discussions on the implementation of the program were productive and there was overall agreement on the need to strengthen policy efforts to achieve its objectives," the EU Commission, IMF and the ECB said in a joint statement.
"The Greek authorities are committed to proceeding with determination in their work over the next month," they said.
Athens blames a deeper-than-expected recession for falling behind on its targets and wants to be given more time to catch up. Lenders say slow reforms have not given the program a chance to work.
In comments to Sunday's Ethnos newspaper, Finance Minister Yannis Stournaras said the measures were needed to bring the program back on track and will help Athens restore credibility with its European partners.
"A credible program will allow us to support negotiations on extending its time frame with tangible arguments, which coupled with reforms and privatizations will get the country out of recession," Stournaras told the paper.
Greek officials have temporarily set aside requests for renegotiation while they hammer out fiscal measures for 2013-14, mostly salary, pension and welfare cuts.
"We have done a lot of work to be able to agree today on a fair amount of the 11.5 billion euros of measures," said a finance ministry official who requested anonymity. "We will continue to work so that we can send them some measures by the end of the week. We must conclude by early September."
The cuts are expected to meet resistance from a public fed up with years of austerity and suffering from the worst recession in decades, now in its fifth year.
"We will make every effort so that the measures are socially just," a second Greek official said on condition of anonymity.
Prime Minister Antonis Samaras' conservative-led government also announced the revival of a series of structural reforms to give the economy a much-needed boost if Greece is to ever escape the debt crisis that is shaking the single European currency.
The European Commission welcomed the announcements but urged the country to act on its promises.
The structural reforms announced during the troika visit include trying to revive a privatization program that has stagnated and proceed with a liberalization of markets and professions that has been done only on paper.
(Writing by Dina Kyriakidou; Editing by Catherine Evans and Rosalind Russell)

Related Topics

8.03.2012

What Happens to Greece’s Gold when They Exit the Eurozone

 





http://news.goldseek.com/GoldForecaster/images/specialreport.jpg
Will Greece Exit the Eurozone?
With Germany’s leaders telling us that the exit from the Eurozone by Greece no longer holds terror for them, we understand that they are prepared for such an eventuality. As the E.U. leader’s representatives went to Greece this week to see the progress on the implementation of structural reforms and the austerity measures, it became clear to all that while we must wait for the results from them, Greece is failing in its efforts and further financing will be held beck for now, at least. Adding to the woes in Greece, there is little agreement within their Parliament. The Greek government is itself a broad mix of conservatives and Socialists.
In turn, the leaders of the European Commission, the International Monetary Fund and the European Central Bank, known as the troika, are increasingly divided among themselves. That is creating even more uncertainty as Greece and the rest of Europe head for yet another showdown, renewing doubts about how long Athens can remain within the Eurozone.
Greece’s lenders say they will not finance the country any further unless it meets its goals. But many experts say that the targets were never within reach and that pushing three increasingly weak Greek governments to comply has only profoundly damaged the economy. The belief in many quarters including in the Finance Ministry in Germany is that the exit of Greece from the Eurozone is almost certain now.
Officials from the troika overseeing the Greek bailout, the International Monetary Fund, the European Central Bank and the European Commission in Brussels, say privately that they doubt the country will be able to meet its official target of bringing its debt down to 120% of economic output by 2020. Greece must make the €3.1 billion in bond payments to the central bank on Aug. 20.
The European Commission reaffirmed that the next tranche of aid to Greece would probably not be disbursed until September, putting the country at greater risk of running out of money to pay salaries and pensions.
At the end of last week, the European Central Bank cut off a crucial source of cash for Greek banks, saying that it would stop accepting Greek government bonds as collateral for low-cost loans until the E.U. completes its report, which is not expected until late August at the earliest. Greek banks must now borrow from the Greek Central Bank at a higher interest rate, from a fund with limited means; if it runs out Greece would have to start printing drachmas.
The IMF, which indicated in March it won’t commit more money to Greece, will make a decision on its next disbursement in late August at the earliest based on the troika’s findings, said two fund officials familiar with the situation in recent days. The IMF has signalled to European officials that it will stop paying further rescue aid to Greece, bringing the country closer to insolvency in September. It’s “already clear” to the E.U. that Greece won’t reach the 120% target. Missing the targets means Greece would need between €10 billion and €50 billion in additional aid, a potential outcome that the IMF is not prepared to accept. The possibility that Greece could exit the 17- member monetary union has been voiced this year by European officials who consider the fallout from such a scenario would be the lesser evil against a seemingly perpetual crisis.
Greece’s economy shrank 3.5% in 2010 and 6.9% in 2011 and is expected to contract 7% this year, a decline reminiscent of the Great Depression of the 1930s. Unemployment is at 22.5% and expected to rise to 30%, while Greece’s main retailers’ association warned on Monday that sales were expected to drop 53% this year.
Greece, which held consecutive elections in May and June as public opposition to spending cuts grew, risks running out of money without the disbursement of €4.2 billion due last month as the first instalment of a €31 billion transfer.
The statements above and the increasingly ‘anti’ stance against Greece brings its exit to center stage. So it is sensible to look at what happens to it 111 tonnes of gold it holds in its Gold and Foreign Exchange reserves currently.
Where’s Greece’s Gold?
The 111 tonnes of gold owned by Greece is in one of three central banks and perhaps spread throughout the three. These banks are the Bank of England, the Banque de France and the U.S. Federal Reserve. We are of the opinion [the Bank of International Settlements would never disclose the facts] that Greece’s gold was first used in some of the over 500 tonnes of gold/currency swaps executed two years ago and unwound last year by the B.I.S.
We believe, further, that these swaps were undertaken by nations finding it difficult to raise new loans at reasonable interest rates. The gold/currency swaps were undertaken as part of the collateral creditors required to facilitate new loans. As such their value went far beyond the market price of the gold involved.
When Greece required a generous bailout from E.U. creditors we were led to believe that part of the collateral, to be forfeited on default, was the 111 tonnes of gold owned by Greece. It is this gold that is now in danger of being lost to the nation now.
The fact that it is not in the country has allowed it to be possessed by central banks outside the country that would not hesitate to hand the gold over, on default by Greece.
Why a Nation’s Gold is Not Held at Home
It may come as a surprise that the bulk of the world’s central banks do not hold their nation’s gold in vaults at home. It has been this way for most of the last century. While the reputations of the three central banks are impeccable, nevertheless, with the world in the financial state it is in now, it seems a matter of prudence that gold should not be in the possession of foreign central banks. After all when push comes to shove, possession is nine tenths of the law.
This became a worry last year to Venezuela who is not the darling of the U.S. at the moment. Its gold was held in several central banks, including the bank of England. President Chavez, on the advice of his central bank decided to repatriate Venezuela’s gold. It was a cumbersome exercise but it was done and is now held in Venezuela out of the reach of those unhappy with its nationalization policies. After all there is always a case to be made for creditors whose assets have been seized to be given recourse to the country assets held outside the country. This is an increasing danger in a world where the value of sovereign debt is in doubt in so many countries.
One of the key reasons for holding gold is to be able to sell it to provide the nation with access to international trade and loans, when its creditworthiness and its currency are unacceptable outside the country. By holding the gold outside the country that gold may well have been appropriated by other nations. We have seen of late this happen to Iran, all of whose foreign assets have been frozen with attempts being made to freeze its oil exports. Whether justified or not, the vulnerability of a nation’s assets should be a factor considered by the government and central bank of every nation. To allow their assets to be vulnerable to seizure is an act of imprudence to say the least.
Should Greece forfeit its gold as a consequence of its default, then it will be, we expect, at market prices only. The ability to use its value far above its price by way of collateral in gold swaps to facilitate loans and lower interest rates will have been lost entirely. We believe that it is part of a central banker’s duty to handle their nation’s assets to the full benefit of the nation. That requires that the gold be in its own possession not in the hands of others who may seize it because of a policy disagreement no matter how serious it may be perceived.
If Greece Leaves Then What Next?
Greece will, we believe have to leave the European currency entirely, just as Argentina did in the nineties. After all, the massive loss of creditworthiness will necessitate a devaluation of the currency. That won’t happen by continuing to use the euro. A glance at history shows that in this case it is possible that a value of 50% of the Euro be attributed to the Drachma. In addition there will have to be a block put on capital exports from Greece. After that we would expect to see a “Financial Drachma” [ort whatever name the Greek central bank gives it] in addition to a “Commercial Drachma” instituted in Greece as Capital and Exchange Controls are put in place to protect what’s left of the financial viability of Greece.
The “Commercial Drachma” would be used for normal trade activities of import and export of good and for tourism. The “Financial Drachma” would be for capital flows both in and out of the country. We may well go into more detail once these events have happened, but for now let’s leave it as a currency that could easily fall by another 30% against the “Commercial Drachma” [say 35% of the exchange rate value of the euro]. In another article, we may well paint the huge advantages to Greece of operating such a system.
In addition we may well see a system of “debt Conversion” being instituted within Greece to incentivize investment into Greece for infrastructural development and other projects that would benefit the nation.

By: Julian D. W. Phillips, Gold/Silver Forecaster - Global Watch - GoldForecaster.com

Priced For Collapse


 


Where is the gold price today? If you're like many Americans, you have no idea whether it went up, down, or sideways. Fortunately, I know my readers to be more informed - you likely know that after falling from almost $1900, gold has been trapped around $1600 since early May. But you may still be curious why despite continued money-printing and abysmal US economic reports, gold hasn't been able to hit new highs.

Here's the truth: gold is currently priced for collapse. Many investors believe the yellow metal has topped out and are selling into every rally.
Nerves of Tin
Being a gold investor is tough business. The last thing any government or corrupt big bank wants is to have a bunch of people putting their savings into hard assets - and gold is one of the hardest of all. So we're constantly up against tides of propaganda saying that gold has no value or is the refuge of doomsayers.
The effect of this is that even heavy gold investors are always waiting for the other shoe to drop. When house prices were rising, no one was worried that the market had peaked or prices were unsustainable. No one was asking whether all the thin-walled McMansions going up would actually be worth anything in a generation. But for gold, Wall Street has been shorting it all the way up!

Nowhere is this pessimism more evident that in gold mining stocks. Rising inflation has driven production costs higher, but the mistaken belief that inflation is contained and Treasuries are a safer haven is keeping a lid on gold prices. As such, many of the major producers have missed their earnings projections, and their share prices have been punished. This has placed a cloud over the entire sector. In fact, the P/E ratios of major gold miners are near record lows. Stock prices reflect future earning expectations, and judging by the low P/Es, Wall Street expects future earnings to plummet. This likely reflects their bearish outlook for gold, which is generally viewed as a bubble about to pop.
Chronic Memory Loss
Unfortunately, there is no public validation for those who have proved the gold doubters wrong. A couple of years ago, I predicted gold would cross $1500 and even my own staff thought the call was too risky, too extreme. But I knew then, as I know now, that at the end of the day the gold price is not a mystery - it's a proxy for dollar weakness.
Since most investors do not truly understand gold's economic role, they assume the 10-year bull market must be a mania. But manias show parabolic growth detached from any fundamental driver. The definition of a mania is the bidding up of an asset quickly and beyond all long-term justification.
Gold, however, has grown steadily in inverse correlation with real interest rates, as explained by Jeff Clark and Mark Motive in past issues of this newsletter. As a reminder, here's a chart detailing the correlation:
The Opportunity of the Decade
After spending the previous fall and winter testing new nominal highs above $1800, future investors may come to view spring and summer 2012 as the opportunity of the decade. Gold has shown its strength and retreated. While most investors will take that as a signal that the market has topped, some will take advantage of the general trepidation to add to their positions at hundreds of dollars off the highs.
While I think gold is a bargain at $1900 considering today's circumstances, the market phobia of a price collapse is allowing us to buy at well under established highs. It's as if you already wanted to go swimming, but you found out when you got there that the pool was heated.
What Happens Next
I've seen markets like this before, and by making some reasonable inferences, I have a good picture of how this could play out. Gold will continue testing the $1600 barrier until it surprises to the upside. This could be spurred by the announcement of QE III, a calming of fears in Europe, or any shock to the Treasury market. Treasuries have temporarily overtaken gold as the primary safe-haven asset. Once that dynamic is broken, I believe the counterflow into gold will be tremendous.
Right now, there is a haze over investors. Frightful news from Europe and a slowdown in Asia have shaken confidence in any asset that doesn't have the steady track record of US debt. But as I often remind my clients, past performance doesn't guarantee future results. Any news that wakes investors up to the coming collapse of the Treasury market will likely trigger a rush into the one asset with a track record as long as civilization itself.
Prepare For Collapse
The key to this market is to understand that a price collapse is coming - but not for gold. Instead, the market for US dollars and dollar-denominated debt is headed off a cliff, which will send the price of precious metals soaring.
Now is a time for uncommon confidence. Everyone knows Treasuries to be safe, just as they knew house prices would always rise. Then as now, gold's value and utility are doubted. But my readers know better.


Peter Schiff

6.21.2012

SilverSeek 2012 Virtual Silver Investment Conference

 

 

 

Eric Sprott: Mania. Manipulation. Meltdown.

 

 

 

 

James Turk reaffirms his $400 long-term silver target

 

 

 

Julian D. W. Phillips: Why will Capital Controls Boost Silver

 

 

 

 

David Morgan: Silver in the next Decade 

BRICS agree to local currency credits to ease dollar dependency


 

JP Morgan Silver Manipulation From Jason Hommel


Allow me to bring you up to date on what you need to know about JP Morgan's manipulation of the silver market.
It is being exposed, and JP Morgan is failing, and losing money on their scheme. 
On April 5th, we were given the gift of JP Morgan's Blythe Masters giving a TV interview on CNBC where she was trying to claim that JP Morgan does not hold any position in the silver market, but rather, is hedging client long positions in silver. 

First India Now China To Start Buying Iranian Oil In Gold On June 28th, 2012









Beijing is planning to avoid U.S. financial sanctions on Iran by paying for oil with gold.  China’s imports of the metal are already large, and you can guess what additional purchases are going to do to prices.


The legendary Jim Sinclair states that this is the most important event in the modern history of gold, and that gold is officially replacing the US dollar June 28th.
This massively accelerates gold’s replacement of the dollar as the world reserve currency and the average person has no clue what this even means.

China Purchases A Record 100 Tons Of Gold In April 2012 From Hong Kong

In the first four months of 2012 Chinese purchases have increased by an unprecedented 782% over 2011.

In the first four months, imports were 239,174 kilograms from 27,114 kilograms a year earlier, according to Bloomberg calculations. 

China's Central Bank Willing To Share $3 Trillion


A clerk counts US dollar bills at a bank in Ta...

China's Central Bank has over $3 trillion in reserves. They might be willing to share it. 


Brazil, Russia, India and China, the BRIC countries, are back to talking about creating a unified financial system where they can avoid euro and dollar volatility.  This time, a pooling of Central Bank dollars from the countries in case liquidity dried up as the world tracks the West’s crisis momentum.
Regardless of the amount of difficulty involved, the big four emerging markets plus South Africa said earlier this week they were considering setting up a foreign-exchange reserve pool and a currency-swap arrangement in an effort to avoid any credit crisis stemming from the advanced economies.
China President Hu Jintao and other leaders met in Los Cabos, Mexico for the G20 Summit. There, according to the Chinese Foreign Ministry, the leaders discussed the currency swap and foreign-exchange reserve pool ideas with their Russian, Indian and Brazilian peers.  Hu asked the finance ministers and central bank chiefs to implement these ideas, according to a story in China Daily on Wednesday morning.
Swap arrangements give central banks the ability to lend each other money in order to keep markets liquid. The pooling of foreign-exchange reserves are contingency measures aimed at containing crises such as the one roiling the eurozone, analysts told the paper.
If, for example, oil prices collapsed to 2008 levels of around $40 a barrel from the roughly $85 today, and if oil dependent Russia was in need for a few million dollars after rummaging through its own sizeable cash account at their Central Bank, they could, in theory, borrow from China’s $3 trillion international reserves. That would give the market some confidence that Russia is not forced to wipe out its reserves, sending Russian debt costs higher as investors wonder whether a country’s “rainy day” fund is enough to handle its obligations to bond holders.
Zhang Yuyan, director of the Institute of World Economics and Politics affiliated with the Chinese Academy of Social Sciences, said the new mechanisms established by the emerging markets themselves, who “know their current conditions and demands much better.”

5.25.2012

Central Banks boost gold holdings, again.



Latest figures from the IMF show that Central Banks have continued to increase their gold holdings significantly in April, after a big increase the previous month.


The latest official Central Bank gold holding figures from the IMF confirm that Central Banks around the world are continuing to buy gold - some in pretty large quantities which should be yet another stabilising factor for the gold price - and if the trend continues suggests that the CBs will buy even more this year than last - and that's only the ones which let the world know exactly what their gold reserves are!
The latest figures not only show some substantial gold buying in April, but also a big lift in gold purchases by The Philippines which actually date back to March, but were slow in being notified to the IMF.  The Phillipines' March gold purchases amounted to no less than 1.033 million ounces - 32 tonnes - of the yellow metal - the biggest volume since Mexico bought around 78 tonnes a little over a year ago - and increased tet country's gold reserves by almost 20%.
The Phillippines was not the only laggard in reporting increased gold reserves though.  Tiny Sri Lanka raised its reserves by an even greater 39%, but dating back to January, with a rise of  2.177 tonnes to 7.807 tonnes  - obviously far less significant in the global picture but yet another indication of the perceived significance of gold in particular in the Asian economies.
The most significant reported gold purchases in April itself included 29.7 tonnes by Turkey (a 14% increase in its reserves, but this is thought to have largely been due to its policy of acceptance of gold as collateral from commercial banks), 2.92 tonnes by Mexico,  2.02 tonnes by Kazakhstan, and 1.4 tonnes by the Ukraine. 
The continued buying by Central Banks does continue to indicate an underlying unease about the sovereign debt situation and its impact on the value of some key reserve currencies- not least the dollar and the euro.
In an email to Mineweb respected New York gold analyst, Jeff Nichols, commented "The lastest IMF data on central bank gold reserves was just released earlier today -- showing gold purchases by Mexico, Kazakhstan, Ukraine, Russia, and the Philippines. Undoubtedly, China and perhaps a few other countries bought gold but did not report their purchases to the IMF."  This reiterates the widespread belief that some countries - of which China is thought to be the major entity - for political reasons do not report their total holdings to the IMF, but hold new gold purchases in accounts that are not reported until it is considered politically expedient to do so.  Last time China reported an increase in reserves was in 2009.
Since then there has been much speculation that China could be building up its reserves at a rate of four or five hundred tonnes a year or more given the level of domestic gold production and the big surge in imports seen.  Although China is the world's sixth largest holder of gold, the metal only represents a tiny 1.8% of its reserves and there have been a number of presumably government approved (is there anything else in China?) statements by officials that do suggest the nation is carefully buying on dips in the gold price so as not to create disruption in a relatively orderly global gold market.
Overall reported Central Bank gold purchases last year amounted to over 450 tonnes - the highest for nearly 50 years and The World Gold Council and GFMS have suggested that this year will see another 400 tonnes or more flowing into Central Bank coffers - and the purchases to date suggest that this target may well be achieved.  Gold may have fallen out of Central Bank favour for a few decades but the realisation now is increasingly that it should be a significant part of a country's foreign reserve base as fiat currencies the world over lose their intrinsic value.

3.04.2012

I Won't Pay Movement (Origins Greece)

6/4/1963, A known attempt was made to strip the Federal Reserve Bank (a private corporation) of its power to loan money to the U.S. Gov't at interest

6/4/1963, A known attempt was made to strip the Federal Reserve Bank (a private corporation) of its power to loan money to the U.S. Gov't at interest. On that day President Kennedy signed Executive Order #11,110 that returned to the U.S. Gov't the power to issue currency, without going through the Federal Reserve. The power was taken from the gov't on 12/22/1913 when the federal reserve act was signed. It handed  to the few men that own the federal reserve bank of new york sole power of a country's money. This private corporation owns the right to print our money and issue it charging interest, setting the interest rate. Ultimately keeping the gov't, and citizens forever in debt.

President Kennedy's order gave the Treasury the power "to issue silver certificates against any silver bullion, silver, or standard silver dollars in the Treasury


With the stroke of a pen, Mr. Kennedy was on his way to putting the federal reserve bank of New York out of business.
If enough silver certificates were to come into circulation; they would have eliminated the demand for federal reserve notes.
This is because the silver certificates are backed by silver, and federal reserve notes are backed with nothing. Worthless.

Executive Order 11,110 could have prevented the national debt from reaching its level, which is close to 70 trillion dollars. An inconceivable number. It also would have given the gov't the ability to repay its debt without going to the federal reserve and being charged interest in order to create the new money.
Executive Order 11,110 gave the U.S. the ability to create its own money backed with silver.

He was assassinated 5 months later. No more certificates were issued.
Executive Order 11,110 was never repealed by any U.S. President and is still valid.
No President has utilized it since.

2.24.2012

Adrian Douglas Speaks About Silver

`Adrian Douglas was born in 1957 in England. He graduated from Cambridge University in 1980 in Natural Sciences. He worked for 20 years in the Oil & Gas Industry with Schlumberger where he reached senior management positions in Marketing and Sales. Adrian established a highly successful consultancy business specializing in pricing and marketing called InnovoMark - Innovative Marketing - www.innovomark.com. He developed unique methodologies related to pricing and marketing which have been incorporated into proprietary training programs.
The study of commercial enterprise pricing led to a deep interest into the market pricing mechanisms of financial assets. As a result Adrian developed a unique algorithm and methodology for analyzing financial futures markets, and in particular identifying appropriate entry and exit points. The technique has been named "Market Force AnalysisTM" (MFATM) and a patent is pending. Adrian has been interviewed for various internet radio stations and for TV as well as making presentations at investment conferences.

Adrian is also a Director of the Gold Anti-Trust Action Committee (GATA); a non-profit organization that is an advocate for a freely traded gold market.

2.22.2012

American Silver Eagle



 The American Silver Eagle is the official silver bullion coin of the United States. It was first released by the United States Mint on November 24, 1986 and is struck only in the one troy ounce size.
 American Silver EagleThe Bullion American Silver Eagle sales program ultimately came about because the US government wanted, during the 1970s and early 1980s, to sell off what it considered excess silver from the Defense National Stockpile.

"Several administrations had sought unsuccessfully to sell silver from the stockpile, arguing that domestic production of silver far exceeds strategic needs. But mining-state interests had opposed any sale, as had pro-military legislators who wanted assurances that the proceeds would be used to buy materials more urgently needed for the stockpile rather than merely to reduce the federal deficit." Wall Street Journal

More American States Now Seeking Silver And Gold Currencies

Concerns that the Federal Reserve System and the United States dollar could collapse at any moment, legislators across at least 13 states have begun to seek out alternative currencies.

Representatives in states including Georgia, Iowa, Minnesota, Tennessee and South Carolina have begun their quest to gain approval from their state government to issue their own alternative currency or even just explore it as a possible option.

“In the event of hyperinflation, depression, or other economic calamity related to the breakdown of the Federal Reserve System … the State’s governmental finances and private economy will be thrown into chaos,” A Republican Rep said.

 Under the United States Constitution, states are not allowed to print their own paper money or issue their own currency, however it does allow states to make “gold and silver Coin a Tender in Payment of Debts,” which means that states are able to create a competing, alternative currency market based on precious metals instead of the fiat currency we call the dollar.



2.15.2012

BLUE GOLD


The global water crisis and the commodification of the world's water supply


A Finite Resource

It is commonly assumed that the worlds water supply is huge and infinite. This assumption is false. In fact, of all the water on Earth, only 2.5 percent is freshwater, and available freshwater represents less than half of 1 percent of the world's total water stock. The rest is seawater, or inaccessible in ice caps, ground water and soil. This supply is finite.

As Allerd Stikker of the Amsterdam-based Ecological Management Foundation explains "The issue today, put simply, is that while the only renewable source of freshwater is continental rainfall (which generates a more or less constant global supply of 40,000 to 50,000 cubic km per year), the world population keeps increasing by roughly 85 million per year. Therefore the availability of freshwater per head is decreasing rapidly."

Most disturbingly, we are diverting, polluting and depleting that finite source of freshwater at an astonishing rate. Today, says the United Nations, 31 countries are facing water stress and scarcity and over one billion people lack adequate access to clean drinking water. By the year 2025, as much as two-thirds of the world's population-predicted to have expanded by an additional 2.6 billion people-will be living in conditions of serious water shortage and one-third will be living in conditions of absolute water scarcity.

World Resources, a publication of the United Nations Environment Program, the World Bank and the World Resources Institute, has a dire warning "The world's thirst for water is likely to become one of the most pressing resource issues of the 21st century...ln some cases, water withdrawals are so high, relative to supply, that surface water supplies are literally shrinking and groundwater reserves are being depleted faster than they can be replenished by precipitation."

Groundwater over-pumping and aquifer depletion are now serious problems in the world's most intensive agricultural areas. In the U.S., the High Plains Ogallala aquifer, stretching some 800 miles (1,300 km) from the Texas panhandle to South Dakota, is being depleted eight times faster than nature can replenish it. The water table under California's San Joaquin Valley has dropped nearly ten meters in some spots within the last 50 years. Twenty-one percent of irrigation in the U.S. is achieved by pumping ground water at rates that exceed the water's ability to recharge (and most water used for irrigation cannot be recycled).

 

Continue reading:

http://www.thirdworldtraveler.com/Water/Crisis_BG.html 

2.13.2012

Athens In Flames

Feb 13, 2012

Over the weekend, more than 45 buildings across Athens were set ablaze by violent protesters. The fires began as the Greek Parliament passed a strict package of austerity measures, in an effort to meet demands by the European Union and the International Monetary Fund. The measures, which were prerequisites for a $170 billion bailout, included steep public-sector job cuts and a 20 percent reduction in the minimum wage. More than 80,000 Greeks reportedly demonstrated in the streets of Athens -- among them, a small, violent group that hurled firebombs at riot police and set dozens of fires. More than 120 police and protesters were injured. The next step for the new austerity measures is implementation, and that may face strong opposition as well. Collected here are scenes from a weekend of unrest in Athens