Crash and Demand Pathways

SUBHEAD: Non-monetary household and local community economies with as little as 10% of the population could stop growth.

By David Holmgren on 3 February 2014 in Resilience.org -
(http://www.resilience.org/stories/2014-02-03/crash-on-demand-pathways)


Image above: Illustration of moving along path to sustainable prosperity. From (http://www.worldwatch.org/stateoftheworld2012).

This is Part 3 of David Holmgren's new essay Crash on Demand: Welcome to the Brown Tech Future, which updates his Future Scenarios work. Read Part 1, and Part 2.

Nested Scenarios
Perhaps the greatest ah-ha moment from participants in Future Scenarios seminars has come with my explanation of the following slide.

Each scenario has a characteristic scale energy density and organisational power. It is natural for   national governments and corporations to respond to energy descent with massive infrastructure and energy projects and policies, that fit the Brown Tech scenario. Similarly it is natural for families to think about food supply and personal security, reflecting the Lifeboat scenario.

Between these two extremes many mainstream environmental strategies that suggest a Green Tech future are most effectively being applied by medium sized business and city or state governments, while many classic permaculture strategies that are emblematic of the Earth Steward scenario can be best applied by small business and local communities.

To some extent all scenarios are emerging simultaneously and may persist to some degree into the future, one nested one within another.

Crashing the operating system of the global economy
The evidence that the global financial system is a not-so-slow moving train crash is getting stronger. That investors and the billion or so middle class people who have any savings and discretionary expenditure are losing faith, might be an understatement.  It may be that paralysis and inertia is all that is holding the system together.

A collapse in credit could make it very difficult to raise the finance necessary for the ongoing extraction of tar sands, shale gas and other mad resource extraction projects that are accelerating the production of GGE.  A deflationary spiral that follows from a credit crisis and collapsing asset (housing, etc.) values could change behaviour to the extent that people stop spending on anything but essentials because of job insecurity and the fact that everything will be cheaper next month.

I believe the chances of global economic collapse (in the next five years) being severe enough to achieve this have to be rated at least 50%.  Further I believe many climate activists and policy professionals are shifting to at least privately hoping this might be the case because the chances of a planned powerdown seems to be fading.

If we accept a global financial crash could make it very difficult, if not impossible, to restart the global economy with anything other than drastically reduced emissions, then an argument can be mounted for putting effort into precipitating that crash, the crash of the financial system.

Any such plan would of course invite being blamed for causing it when it happens.  No one wants to be strung up along with the bankers for causing a global version of Greece, Egypt or many other countries, let alone the horrors of Syria.  On the other hand, we have no precedent to indicate how bad conditions might be in currently affluent countries.

The picture I am building is that it is almost inevitable that those who warn of the crisis will get the blame for causing it.

So if we are going to be blamed anyway, we could be proactive about it and at least get the advantage for humanity of crisis now, rather than later.

For the people of Syria caught in the grip of climate, energy and geopolitical struggle, all this hardly matters because it couldn’t get worse for them. In fact conditions in such stricken places could actually improve if global superpower competition is disabled by the collapse of the global finance.

Even the average citizen in Greece or Egypt might be hoping to see the remaining affluent countries get a ‘taste of their own medicine’.  The complexity of global human overshoot, so long predicted, and now unfolding, is far too multifaceted to be captured by any simple story about good, innocence, evil and blame.

Before considering whether this is a good idea or not, I want to consider whether concerted action by limited numbers of activists could bring it about?

Given the current fragilities of global finance, I believe a radical change in the behaviour of a relatively small proportion of the global middle class could precipitate such a crash.

For example a 50% reduction of consumption and 50% conversion of assets into building household and local community resilience by say 10% of the population in affluent countries would show up as 5% reduction in demand in a system built on perpetual growth and a 5% reduction in savings capital available for banks to lend.  Small fluctuations in the supply-demand balance can have a massive effect on prices.

Further, when the system has been growing due to rising debt, arguably for decades, then the vulnerability to drops in demand can be massive.  For example, small drops in demand for new houses and the high fuel costs of commuting for those servicing mortgages, triggered the collapse of the housing bubble in the USA and other countries.

It seems obvious to me that it is easier to convince a minority that they will be better off by disengaging from the system than any efforts to build mass movements demanding impossible outcomes or convincing elites to turn off the system that is currently keeping them in power.

I accept that many people find the idea of assisting economic collapse abhorrent, even if that collapse is becoming more and more likely as a collective outcome of human actions.  Daryl Taylor uses the caring metaphor “hospicing and euthanasing” the old/dying system along with “doula-ing and midwifing the new/emerging system.

Whatever the metaphors, climate activists who believe we are on the verge of runaway catastrophic climate change that will be far worse than simply stalling the economy, do have options other than shouting louder for mitigation or shifting to adaptation and defence.  Rather than simply planning for bad and rocky energy descent delivered initially by economic depression, they could choose to focus their energy on actively trying to destroy faith in the financial system.

Mainstream environmental tactical shift
This may seem like a mad idea from a fringe radical, but I think there is evidence that the most mainstream elite of the climate policy community may effectively be pursuing a strategy that is very similar.

Environmental activists have for some years now been targeting investors in coal, tar sands, shale oil and gas and other disastrous energy developments with some signs of success, or at least more than has been achieved by lobbing politicians.

The fact that many of these investments are based on bubble economics should be evident to investors anyway, but with so much money sloshing around the global financial system in search of investments which are safe and promise a reasonable return, behaviour of investors becomes more erratic and irrational.

A report from Carbon Tracker and the Grantham Research Institute, Unburnable carbon 2013: Wasted Capital and Stranded Assets,suggests that 60-80% of the oil, gas and coal reserve on the books of the global energy companies could be stranded assets.

Four trillion dollars in share values and 1.27 trillion in debt could be worthless if governments take seriously their commitments to avoid dangerous climate change.  This is a recent prominent example of climate policy work attempting to undermine financial investment in the fossil fuel industries.  It seems to me what they are saying was intended to be a warning to investors, to pull their money out because it is too big a financial risk.

The strategy behind such a report might be to encourage an investment flow out of fossil and into renewable energy projects.  However, if investors did this very fast, it could destabilise global commodity and financial markets so much that it precipitates the collapse of global finance, and I suggest, also brings down greenhouse gas emissions.

Investment and Divestment
Similarly, the efforts by permaculture, transition and related activism to build local resilience, may result in convincing people that they should get out of debt, downsize, and radically reduce consumption and put their savings into concrete assets that build local capacity, as rapidly as possible.

Nicole Foss’s message is specifically targeted to this end and I have seen it lead to people making radical changes to their financial affairs, which all the evidence of climate catastrophe never did.  As Foss explains, when most of the so-called wealth evaporates, the public is left holding the empty bag of worthless assets, a process that is well underway in Europe and the USA.

Her message is targeted to help the very people who are most motivated and able to make a positive contribution in the energy descent future.  If these people can survive and thrive through the very short-term bottleneck of deflationary economic collapse, then they may be able to exercise a very positive influence on the systems that emerge following the collapse.  This strategy is a very altruistic one, one I have supported publicly.[1]

There have always been strong ethical, strategic and practical grounds for permaculture and transition activism to focus on the simultaneous withdrawal of assets from destructive centralised systems and the reinvesting of them in household and community economy development.  In Australia, the shift in the early 1980s of ethical investment from avoiding tobacco and arms manufacturers, to taking more proactive investment choices was influenced by permaculture activism.

As climate activists use the power of divestment as one of the few prospects for leveraging rapid change away from coal and other fossil fuel industries, it might be useful to show how this might fit into a more holistic framework for investment and divestment informed by permaculture principles.
Firstly, divestment must always be balanced by a conscious plan of re-investment that doesn’t simple recreate the problems in a new form.

As with the Jevons paradox, there are many examples of rebound effects. For example savings on power bills with solar power leading to more frequent overseas holidays by airplane.

Secondly, investment is not just of money, but our time, skills and assets. Often it is these non-monetary assets that can be most effectively put to good work, while our finances are tied up in  systems that are causing the very problems we wish to avoid.

Thirdly the investment mentality assumes a return, but in a deflationary world, capital asset protection is more important than any expectation of a return.  The accepted wisdom of not putting all eggs in one basket, becomes more important in an uncertain future.

Apart from any framework to characterise what we should invest in (e.g. renewable rather than fossil energy), the most powerful shift occurs when we extract resources from the top of the global financial food chain and reinvest at the most local level.

In Energy Descent Action Planning[2] we wrote;
In pre-industrial society the non-monetary economies of the household and community, based on love, reciprocity, gift and barter, were the bulk of the economy and energy descent will see a rapid expansion of these economies from the current very low base.
Rural communities that have retained more of these non-monetary economies and have better access to non-monetary resources from nature (water, firewood, food, etc) are in a better position to benefit from energy descent than urbanised communities.
And we used the following diagrams to visualise the shift in economies;


Image above: The Formal and Informal economic sectors at Peak Energy (overshoot). From original article.


Image above: The Formal and Informal economic sectors at after Peak Energy (energy descent). From original article.

Affluent nations have a long history of extracting wealth out of the informal household and community economies to bolster growth in the formal economies, but we have little experience in proactively reversing the process.

Recognising the differences between at least three domains of financial control can help evaluation investment and divestment strategies and options.
  1. Corporate and government finance and transactions through the banking system,
  2. NGO, business and individual finance and transactions through the banking system
  3. Cash transactions that are restricted to individuals and small businesses
The highest level is corporate and government financing. Getting money out of this sector and into businesses and NGOs controlled by “natural persons “ is a step in the right direction.

Corporations are cost minimising, profit maximising organisations, designed like machines to suit the scale and density of fossil fuel. In the energy descent future corporations will be less adapted but in the Brown Tech scenario where power shifts from the global to the national level, corporations will remain the primary tools by which strong national governments will implement radical, and where necessary, unpopular policies.

Corporations only respond to legal constraint and mass-market forces. Where we invest in larger scale organisation for complex functions, cooperatives are inherently more subject to ethical and democratic influence than corporations.

Natural persons, and businesses fully controlled by natural persons, are, unlike corporations, potentially subject to ethical influence and action other than short-term cost minimisation and profit maximisation.  This potential will be critical to breaking the trance created by the current mal-adapted convergent systems.

Even more importantly, individual entrepreneurs perusing divergent and even idiosyncratic risk taking are essential to deal with a world of rapid change and uncertainty.

When we hold money as cash we risk theft and lose value due to inflation, but in an energy descent world of deflation, cash is king and avoids the risk that the largest financial institutions will fail or be subject to arbitrary laws that confiscate savings[3].  Withdrawing money from banks and holding relatively large amounts of cash, is one of the easiest actions ordinary citizens can take to increase their own resilience and divest their support for corrupt and dysfunctional systems. When we hold and spend cash in the grey economy we stimulate the most resilient part of the monetary economy that will best survive and even thrive in a deflationary economy.

The cash economy cuts out corporations and government tax, which of course reduces money available for public services, that we might otherwise think are progressive.  But if we accept the thesis that the system cannot be reformed sufficiently to avoid climate catastrophe, then withdrawing support may be a necessary evil.

A surprising and increasing number of citizens already have such a negative view of big government, business and banks, that willingness to use the cash economy is hardly a radical perspective even if it is very rare for it to be publicly advocated by “serious commentators”.

Alternative currencies and non-monetary economies
When we convert money out of fiat currencies [4] and into local and alternative currencies (and to a limited extent, precious metals) we further spread risks, encourage local economy and reduce reinforcement of centralised dysfunction.

While precious metals and local currencies have a long history of growth in times of mainstream economic contraction, virtual currencies such as Bitcoin represent global wildcards that expand the threats to fiat currencies.

Whether virtual currencies create a brave new world of peer-to-peer[5] inflation proof money independent of governments and banks remains unclear, but they do diversify the transaction options and reduce risks from financial instability for proactive citizens taking control of their finances.

The direct exchange of goods and services in barter is often seen as clumsy and inefficient, but it can build far stronger relationships than any monetary exchange.  When it works well, barter creates a sense of serendipity, and builds confidence that we have something of value and that we can find what we need.

The gift economy is even more potent despite the superficial impression that gifting brings no rewards. In all traditional societies gifting increased the social status and often the real power and security of the giver. In addition, it functioned to redistribute wealth and provide a social safety net.

Even in affluent modern societies these functions can be recognised and in a contracting economy, gifting of surplus food, seed and garden tools (for example) to hard up people could help kick start community economies at the same time that it builds trust, support networks and social insurance in insecure times.

Labour and skill vs fossil fuel and technology
Another lens for framing expenditure is to preference employing labour and skill over fossil fuel and technology.  In affluent economies with high wages, we have a long history of believing it is always cheaper to preference fossil fuels and technology over labour and skills but in the energy descent future this will not be the case.

By shifting our behavior now, we stimulate needed economic transition and deprive the largest corporations of the growth they must have to survive.

When we buy direct from farmers, a higher proportion of the money goes to the farmer and his/her labourers and less to transport, packaging and retailing corporations that maximise the consumption of resources and minimise the employment of people.  When we pay a self-taught computer wiz to fix our machine rather than buying a new one, we encourage the growth of skills essential to the energy descent future and deprive computer corporations of sales they need to perpetually grow.

When we pay a contractor to dismantle a building rather than demolish with a excavator, we support the employment of more labour in dismantling and reuse, create less land fill, use less fossil fuel and demand less investment in expensive machinery manufactured by global corporations.

This very brief exploration suggests investment and general spending can work as a systemic boycott of centralized dysfunctional systems that are driving climate change and at the same time stimulate the emergence of the very systems that are adaptive to energy descent while minimizing GGE.

Brown Tech possibilities
Permaculture, Transition and voluntary simplicity have always involved personal and community empowerment, ethical concern for others and rebuilding nature.  These motivations remain valid but if we are moving into a Brown Tech future, then the urgency for more radical action to build parallel systems and disconnect from the increasingly centralised destructive mainstream is a logical and ethical necessity whether or not it contributes to a financial collapse.

In Future Scenarios I characterized the politics of the Brown Tech world as ‘fascist states’ where the divide between the haves and the have nots increase, and where the tension for activists between working within the system and supporting the marginalized, and those pursuing autonomy, will become much more extreme.

In workshops on the scenarios and in public talks, I illustrated this conflict with the example of a possible choice between an ID card giving us rationed access to government backed supermarket monopolies or taking our chances in the feral food economy of home grown and fringe farmers markets.

At present we have the luxury of playing with the latter while the former is still freely accessible.  The shifts towards authoritarianism and a surveillance state since ‘9/11’, and the recent intensification of the cyber wars between the state and transparency activists, suggests we may have a small window of opportunity, to build these alternative systems before a combination of state and corporate power (fascism) becomes more draconian in protecting their business model in a world of economic contraction.[6]

Most of the shrinking numbers of middle class citizens in overdeveloped countries will probably continue to throw their lot in with the declining comfort and remaining privileges the system provides.  The fact that the majority of the Japanese people were against nuclear power but nevertheless voted in a government committed to restarting the nuclear program, is a good example of the pattern.

The attitude of the majority of Australians (some of the richest people in the world) to refugees who arrive by boat is another example. Perhaps the most relevant of all is the apparent acquiescence of the majority to the rapidly expanding surveillance state, highlighted by the Edward Snowden revelations.

On another front, if the pattern of worsening bushfires in south-eastern Australia continues, it seems inevitable that the response of governments will be resettlement of people from fire prone communities into ‘safe’ towns and cities.  Those who refuse to move will probably have to cope without mains power (closure of the single line earth return systems) as well as no fire-fighting services, and so on.

The response of governments to severe bushfires and other recent natural disasters, as experienced and documented by permaculture and community activist Daryl Taylor, suggest the stress to survivors of the ‘top down’ government-sponsored recovery processes can be worse than the natural disaster itself, for a significant percentage of survivors of any disaster who become empowered by the experience.[7]

Empowered survivors of disasters and crises have the potential to catalyze community rebirth rather than accept the stifling palliative care delivered by the system.  Consequently they are treated as a threat to the bureaucratic and corporate order.

While embracing self-organisation, Taylor emphasises the need for disaster-vulnerable communities to enact defensible community regeneration decision-making structures, at the sub-local government authority level, as a key disaster-crisis preparedness strategy.

For him, household and neighborhood self-reliance, mutual self-help, and sharing economy strategies are critical for community renewal, as are new participatory democracy and subsidiarity governance[8] practices.

Meg Wheatley and Deborah Frieze are documenting how communities are leading this ‘Walk Out, Walk On’ shift – from tier-upon-tier ‘parent-child’ globalizing dynamics, to peer-to-peer ‘agentic adults’ trans-localization collaborations.[9]

These expressions of the Brown Tech world will be interpreted by many as problems that need to be corrected by sensible reforms based on the evidence, while others will see them as dysfunctional outcomes of corrupt power elites of failing empire, that need to be swept away by radical mass movements.

There may be some truth in both positions, but these symptoms also reflect the residual structures of majority politics and multi-generational mass affluence in an era of stagnation and contraction.

As the crises worsen, the public will, and already is, demanding that governments fix the problems.

As elites lose their religious faith in the markets’ ability to solve all problems, it is inevitable that governments will struggle to relearn their functions through erratic and arbitrary exercise of paternalistic power.  Much of this will be well intentioned and even reduce suffering in the short term.

Actors at the Fringe
While the majority may gain some real or imagined comfort from many of these actions of governments, those of us at the fringes, trying to create more resilient household and community economies, will experience them as a greater threat than the contracting economic conditions and worsening natural disasters.

Without apportioning blame, I believe it is essential that those of us who cannot live in the stifling constrictions of a failing system, must work hard while we can, to build the parallel systems that might provide some alternative to the strictures of the Brown Tech world.

If the logic of the Future Scenarios stepwise descent is true, the Brown Tech world could be one that persists for many decades, before degenerating to the Lifeboat Scenario, which spreads from the wild hinterlands to flood the remaining urban centers of the command economy.

If there are few of us following the path of frugal autonomy, then we must expect to live as a marginalised minority, but hopefully with our freedom intact as we prepare to enable our descendents, biological and otherwise, to both survive and preserve something of long term cultural value during the long descent.

If we succeed in rapidly building effective alternatives at exactly the same time that the strictures of the stressed mainstream become apparent to more people, then we could see so many people join the informal household and community economies, that the loss of worker/consumers in centrally controlled systems leads to a more rapid collapse.

The resultant massive reduction in GGE might still save the world from the worst of climate chaos. The precipitous nature of the collapse would be a massive psycho-social shock, but ameliorating factors might allow a rebuilding, based on more humane and ecological principles than are unlikely to be dominant in either the Brown Tech or Lifeboat worlds.

A relatively benign climate change would provide a basis for a recovery of ‘garden agriculture’ and wild foraging, while salvage of the leftovers from industrial assets and infrastructure would provide material needs through creative reusing and recycling; i.e. the essence of the Earth Steward Scenario in which a frugal communitarian culture based on ecological principles would be the mainstream rather than the fringe.

While the Earth Steward Scenario has many positive aspects, it is only likely to emerge through a path of great loss and suffering.  Whether that suffering will be any greater than what the world is enduring already, from the dying stages of Pax Global Capitalism cannot be known.

And if the elites of the resurgent resource nationalism and command economies of the Brown Tech world do protect people from the worse impacts of that transition they will do it by accelerating the resource depletion at the cost of climate chaos, causing more pain and suffering in the longer term.[10]

Not Financial Terrorists
These bleak prospects need to be balanced by the incredibly positive results that come from permaculture, Transition Towns, and related activism.

As I explained in the contribution to a debate in Australia’s Arena magazine in 2013, these expressions of positive environmentalism, autonomy and community building have the advantage of being primarily driven by enlightened self interest to build personal, family and community resilience, rather than a desire to save the world or atone for our own, or our forebear’s, sins.

A permaculture way of life empowers us to take responsibility for our own welfare, provides endless opportunities for creativity and innovation, and connects us to nature and community in ways that makes sense of the world around us.

We generally don’t articulate permaculture as a political strategy or movement but reflecting the  principle of multiple functions, permaculture strategies have powerful political impacts that have several advantages over conventional political action that focuses on getting those in power to pull the right levers.

In my comments to Arena[11] I supported permaculture activism as having political efficacy in the following way.
  “I am more than ready to acknowledge that ‘our’ collective efforts at positive environmentalism during and since the 1970s have so far failed to catalyse the necessary changes in society, but Andy Scerri’s assertion that composting your private garden counts for nothing, reflects an ignorance of several structural and systemic factors driving and constraining social change.
Firstly if the changes or innovations required, do not confer some advantage to the innovators and early adopters then there is little incentive for others to follow their lead.
Secondly, unless the necessary changes or innovations can be independently adopted by individuals, households and local communities, without the resources, support and approval from central authority, then it can always be blocked by established interests that stand to lose by its widespread adoption.
Thirdly, it is extremely difficult, if not impossible, for higher order organisations and governments to mandate a reality that doesn’t already exist as working models.
Progressive and integrated adoption and refinement of the myriad of strategies and techniques associated with permaculture, enacted at the household and local level, addresses all three systemic issues.
Permaculture, Transition Towns and related positive environmental activism, have spread through personal, small scale entrepreneurial and community actions so readily because they bypass these three systemic blocks to a creatively designed energy descent pathway.  This spread has happened with only marginal and indirect support from governments, corporations and even NGOs.

Because permaculture is a highly integrated multifaceted example of positive environmentalism it also has the effect of a systemic boycott of centralized fossil fuel powered economics dominated by corporations.  When seriously applied at the household and community level it undermines centralised debt-based economies, including the tax base of governments.

Application of permaculture and associated voluntary simplicity principles over decades by committed households can lead to reductions in consumption and greenhouse gas emissions of greater than 50% with up to 80% possible.[12]
 
The nested future scenarios concept highlights the importance of household and local community strategies whether or not larger scale systems collapse. Those (permaculture) strategies are effective at the local and household scale, while the ones promoted to us by the upper levels of power (eg upgrading the light bulbs) are weak and tend to further undermine our resilience and autonomy.(eg centralised disaster management systems)

This understanding can save us spending too much emotional energy focused on which scenario will win out in the end.

It also reminds us that the emerging Brown Tech world arises out of the level of available energy more than evil intent by global and national elites. If larger scale systems do fail due to greater self-reliance and resilience at the local and household level then that exposes the degree of overreach and instability in those larger systems, not the impact of radical relocalizers trying to destroy the system.

Conclusion
Mass movements to get governments to institute change have been losing efficacy for decades, while a mass movement calling for less seems like a hopeless case.  Similarly boycotts of particular governments, companies and products simply change the consumption problems into new forms.

I believe that actively building parallel and largely non-monetary household and local community economies with as little as 10% of the population has the potential to function as a deep systemic boycott of the centralised systems as a whole, that could lead to more than 5% contraction in the centralised economies.  Whether this became the straw that broke the back of the global financial system or a tipping point, no one could ever say, even after the event.

Discussing such possibilities may be counterproductive and may brand us as crazy people, a doomsday cult or even terrorists.

Maybe it is better to keep focusing on the positive aspects of these bottom up changes that are acceptable to the average citizen; better physical and mental health, more fun and empowered children who can survive and thrive in a world of dramatic transformation, while minimizing our contribution to harm to nature and others.

On the other hand, bringing these issues out in the open might inspire desperate climate and political activists to put their substantial energy into permaculture, Transition Towns, voluntary frugality, and other aspects of positive environmentalism.  It just might stop the monster of global growth after all other options have been exhausted.  Rather than spurning financial system terrorists, we would welcome the impacted and vulnerable to the growing ranks of terra-ists[13] with their hands in the soil.

[1] Talking up the risks of the centralised food system has always been the flip side of my promotion of household and local food production to kickstart community resilience.  For example see footage included in Anima Mundi, a film by Peter Downey (http://holmgren.com.au/product/anima-mundi-dvd/)
[2] Energy Descent Action Planning Discussion Paper; report by David Holmgren and Ian Lillington to the Environmental Sustainability Advisory Committee of Hepburn Shire Council September 2011.
[3] Such as already happened in the Cypriot banking crisis
[4] Government backed national currencies that are not underpinned by precious metals or other material resources of real value. Fiat currencies depend on faith that the government can guarantee their value.
[5] Peer to peer networks that contrast to heirachical server-client networks (in IT) have become models for a wide range of initiatives identified through the P2P Foundation, including alternative currencies. See http://p2pfoundation.net/Category:Money
[6] Italian Fascist dictator Benito Mussolini is said to have said “Fascism should more appropriately be called Corporatism because it is a merger of state and corporate power.”
[7] See How the Kinglake Ranges Community is building resilience in the aftermath of disaster (pdf) by Darryl Taylor and Lucy Filor. http://www.ourcommunity.com.au/files/cic/DarylTaylor.pdf
[8] See: Participatory Budgeting http://www.participatorybudgeting.org/
Gaian Democracies http://www.gaiandemocracy.net/  and
Liquid Democracy http://p2pfoundation.net/Liquid_Democracy as starting points
[9]  See: Walk Out, Walk On website http://www.walkoutwalkon.net/ and book for case studies
[10] For a very realistic portrayal of the Brown Tech world and a utopian Earth Steward community see Brian Love’s new novel Entheogensis  http://holmgren.com.au/product/entheogenesis/
[11] See Household economy counts for the full text.
http://holmgren.com.au/household-economy-counts-full-text/
[12] At Melliodora we are managing to operate an extended household economy and globally connected small business at less than 25% of the Australian average GGE (purely as a byproduct of applying permaculture principles and without accounting for any carbon sequestration from decades of tree planting and land management).
[13] A term suggested by deep ecologist John Seed after hearing me float these ideas in a public forum in 2013.

Acknowledgements

Thanks to Rick Tanaka, Maureen Corbett and Daryl Taylor for comments and corrections.
Editorial Notes: Editorial Notes: Part 2 of the essay looks at Energy Descent Scenarios.
© 2014 Holmgren Permaculture Design for Sustainable Living. All Rights Reserved. Reposted on Resilience.org with permission.

Read discussion of this essay here:
David MacLeod, Jason Heppenstall, Rob Hopkins, Joanne Poyorouw, Albert Bates, Dmitry Orlov, and John Michael Greer.

See also:
Ea O Ka Aina: Crash on Demand 12/30/13
Ea O Ka Aina: Stabbing the Beast 1/1/14
Ea O Ka Aina: Response to Holmgren's scenarios 1/10/14
Ea O Ka Aina: Energy Descent Scenarios  1/24/14
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Decentrtalization is Inevitable

SUBHEAD: It is what lies beyond the current failing, unsustainable versions of Capitalism and Socialism?

By Charles Hugh Smith on 1 February 2014 for Of Two Minds -
(http://www.oftwominds.com/blogfeb14/decentralization2-14.html)


Image above: Photo portrait of Jeremy Leggett. From interview below.

Correspondent John D. recently sent in a link to an interview with energy expert and author Jeremy Leggett. The title, "Make no mistake, this is an energy civil war" is a bit sensationalist, but the gist of his point is that centralized control of energy (and the capital that controls the energy and distribution networks) are colliding with new models of decentralized, locally autonomous control and ownership of energy generation and distribution.

Given the immense power of the banking/energy/political Elites that directly benefit from centralization of energy, capital and political power, I term this decentralization solution "impossible."

Yet because it is driven by the diminishing returns of the centralized model and the emergence of the Web as an unstoppable force distributing decentralization and new models, the transition from ossified, failing centralized models to adaptive, faster-better-cheaper decentralized models is also inevitable.

This is the context of Leggett's view that there is an 'energy civil war' between the powers defending centralization and those promoting community ownership and control of energy.



Jeremy Leggett Interview
SUBHEAD: "Make no mistake, this is an energy civil war"

By Rob Hopkins on 11 November 2013 for Transition Network - 
(https://www.transitionnetwork.org/blogs/rob-hopkins/2013-11/jeremy-leggett-make-no-mistake-energy-civil-war)

Rob Hopkins:
Jeremy Leggett's new book 'The Energy of Nations: risk blindness and the road to renaissance' is an inspirational, page-turning telling of the evolving tale of peak oil, climate change, and economic crisis, and how the three issues intertwine and interweave. I found it gripping, and what comes through strongly is firstly the huge potential of the shift to renewables, and secondly the stubborn stalling tactics and railroading of what Leggett calls "the energy incumbency".  I caught up with him via Skpe, and starting by asking him to introduce himself to any readers who may not have come across his work before. As usual with such pieces, you can either listen to/download the podcast, or read the transcript below. 

Jeremy Leggett:
"I’m Jeremy Leggett, the founder and chairman of Solar Century, internationally as well as in Britain, and the founder of Solar Aid, the African solar lighting charity funded with 5% of Solar Century’s profits. We have a retail brand Sunny Money, which is the biggest seller of solar lanterns in Africa at the moment.

RH: You’ve just published a book called The Energy of Nations. Could you just tell people in a nutshell what they might expect to find in there?

JL: I worry that the energy industry is in the process of repeating systemically the mistakes of the financial sector, and on multiple fronts. I talk in the book about five big systemic risks that I think they’re running, and the risks that they’re taking get worse and worse as time goes by. I tell the story linearly from 2004 when the oil crisis started to go up. I tell it as a narrative of these five risks and intercut diary extracts from my life as I’ve seen this risk-taking grow and grow, to try and make the point about the five risks as a narrative really, as a story, a true story.

RH: It’s really compelling, it reads like a thriller. One of the things that was difficult in the early days of peak oil was to make those arguments that peak oil and climate change needed to be looked at as overlapping issues. The climate change people didn’t want to talk about peak oil because it complicated things, and the peak oil people were often just focused on how to get new sources of oil.  Over time, those communities have come closer together, partly through your work and other people’s. But recently, that’s become a harder narrative to hold together, with people saying there’s more than enough fossil fuels to finish the climate off. What you’ve done is very skilfully here is to bring those two issues back together again. How do you see the overlap, the relationship between those two issues?

JL: No matter who’s right in the peak oil debates, there has always been easily enough oil and gas, combined with coal, to wreck the climate and bring down civilisation. I don’t think there’s any dispute about that in a world where we’re at 420 parts per million of CO2 equivalent already. The thing that’s so striking, even for me writing the book, was how in just a few years the dominant narrative, the widely accepted narrative has gone from one of real constraint on oil supply, indeed transparent, palpable alarm from the International Energy Agency for example, right through to 2011 to where now we’re in some cornucopian paradise for the fossil fuel heads of America heading for Saudi-America status, energy independence, all the rest of it.

This has happened on the basis of evidence that is really flimsy but has been hyped to high heaven by, I think, a very desperate incumbency locked into an almost religious enculturated belief system which is behaving very dangerously. Very dangerously indeed.

RH: One of the things that’s really compelling, as you say, is the extracts from your diary through that time, of different meetings and events.  They really leave the reader scratching their head about the detachment from reality and the strange bubble that many of the people who work as executives in the energy industry and the finance industry operate in.  Where does that come from, do you think? Where does that stubbornness and cultural oddness come from?

JL: It’s not so surprising when you look at what the neuroscientists are discovering about how our brains work, how we think individually and collectively. As I describe in the book, that’s something I didn’t know about until in the course of my work I went to a couple of seminars on this wave of discoveries in neuroscience.

The neuroscientists tell us that their research shows that we’re individually and collectively very prone to lock into belief systems easily and quickly and then when we do, we defend them, we don’t like to be presented with any kind of rational evidence that we’re wrong in that set of beliefs; we have an incumbency effect we prefer to believe in the potency of things and systems that we have as opposed to other alternatives that might be rationally much more appropriate.

It doesn’t surprise the anthropologists either. When they look at the history of civilisations and how civilisations have failed, they see time and time again this belief in myths and magic that emerges towards the end, as civilisations are about to go under. The parallels are very clear here. They see the power of the markets – all the things that a modern capitalist is supposed to believe in - the market forces and the validity of basing an economic system on the combustion of hydrocarbons that undermine your climate and therefore your ability to even continue with feeding yourself and providing yourself with clean water.

I try and convey that part of the story as well. It’s not all bleak because I think the neuroscientists also tell us that we have this great yearning as human beings for community and all the rest of it, and individualistic or selfish, perhaps what people on the right of the political spectrum constantly try and persuade us that we are. That all points towards the possibility of a road to renaissance and that’s why I titled the book The Energy of Nations: Risk Blindness and the Road to Renaissance. I talk about the importance of things like the Transition movement as the building blocks for this road to renaissance.

RH: You say there will probably be "only one shot at capitalising a 21st century energy structure".  You also talk about how the UK government has been "busy plotting gas nirvana with the oil industry", and the UK appears to be set on becoming a "gas hub" through exploiting shale gas.  But also presumably, since the book was published, we've seen the public announcement of the UK also moving towards becoming a nuclear hub. Have the decisions, do you think, been made about what that energy infrastructure is going to look like, or is there still time and an opportunity to shape it?

JL: Yes, there’s definitely time and opportunity. They may think that they’ve made the decisions, but look at the extent to which the backing of shale is based on transparent myths for anyone who’s prepared to dig below the surface. Just the notion that the United Kingdom, rural Britain, can be peppered with the density of fracked wells that they’ve had in Texas, Pennsylvania and North Dakota, it’s laughable when you look at the public opposition to the first single well. It wasn’t even a fracked well in Sussex. We are not going to tolerate it, the British people. That’s the first thing, that is bewildering.

The second thing is, of course, the mounting evidence that the whole North American shale gas boom story is actually yet another one of these bubbles that we’re terribly good at inflating, and people are losing so much money because of the low gas price, that they’re not going to be able to service the vast amount of debt that they’re borrowing from Wall Street and so that whole system will come off the rails, even in America.

There are real questions as to whether the Osborne-ite and Cameron gas tendency are going to get away with their ludicrous plans. As for nuclear, well, they’ve made a crazy decision to commit vast numbers of billions of our money far into the future for a French and Chinese nuclear power plant on the coast of Somerset. But the first thing they have to do is get state aid permission from the European Union to do that. That decision won’t be taken for quite a while, so I don’t see that they’re going to be able to get away with even that one white elephant nuclear power plant, much less the crazy nuclear renaissance that they’re plotting.

Meanwhile, the energy industry is a civil war zone. That includes in the Conservative party. Not everyone is lined up behind this craziness. There are some Conservatives who really believe in the green industrial revolution and the localisation of power to the people and all the sorts of things that the Transition movement thinks about. That element of the civil war will continue to play on. Even within the big energy companies, you’ve got people who just know in their hearts that the status quo business models are flawed and probably dying in the water for the big utilities, and are thinking of alternative, localised, people power types of alternative models.

When you look at the growth, what’s growing? What’s growing is renewables, and in Europe over the last three years we’ve put in more renewables than we have fossil fuel and nuclear. More money is going into renewables than is going into fossil fuels and nuclear combined, despite all the wrecking tactics deployed by the energy incumbency. So there are reasons to be cheerful.

RH: One of those that comes through in the book repeatedly is Germany's Energiewende and what they’re doing there. What can we learn from Germany, do you think in terms of practicality and in terms of ambition?

I think that it’s altogether very encouraging indeed. We can learn that it’s possible to renewably power a modern economy like Germany 100% with renewables, and do it much quicker than people anticipate. We can also see that the ownership structures can change radically, so that people power comes into the mainstream. As you know, more than half the renewable assets in Germany are owned by people, by people and communities.

That’s not just the small energy co-ops that are being set up by the multiple hundreds, but whole cities are talking about taking their own power into their own hands, even Berlin, with a membership movement to take control of the way that energy is created in cities. Germany is vital in the whole narrative going forward.

You can see the big energy utilities dying basically. The top twenty European energy utilities were worth a trillion Euros in 2008. Now they’re worth half a trillion. That’s simply because of the way wind and solar particularly, but also other renewables have driven down the wholesale price and literally taken power out of the monopoly hands of the utilities. It’s very exciting.

RH: You talk in the book about, for example, how Shell have meetings with ministers and reflect on what it would be like if actually the renewable sector had even half the access to ministers, the ability to organise meetings with them, that the non-renewable sector has. Is there any way to break that, do you think? Is there any way of turning that around?

JL: It’s a very potent force and a very malign way of operating, so it will be difficult.  I think one of the things I’ve learnt during the adventures I describe in the book is that most of these big companies are incapable of change, and they have to be defeated rather than changed. That’s something that I think is a little sobering.

Some of them will change at the margins and ultimately one or two may change wholesale. But you see the way they dig in, the way they defend to the death in the face of all the evidence to the contrary, i.e. BP pulling out of solar energy at a time when the price falls to the point of being competitive in multiple markets. They pull out completely and retreat into unconventional gas and all the rest of it. This is not a company that’s going to change.

It’s a company that will have to be ultimately driven out of business. Shell are pretty much in the same category, not quite so badly. The big energy utilities, EDF, you don’t get any sense that they’re capable of changing culturally. Others are maybe different; RWE are clearly going through some kind of soul searching at the moment and may make it through in the way that IBM managed to change, when main computers were replaced by micro computers.

But ultimately, the whole fabric of society is going to be changed on the road to renaissance by the continuing emergence of people power. People and communities taking control of their own energy, taking control of their own finance. That’s going to be very important as well, with the growth of crowd funding, peer to peer lending, green bonds, retail bonds, and all the rest of this kind of thing.  Even the assistant director general of the Bank of England, Andy Haldane has said this is showing signs of becoming such a trend, such a potential mega-trend, that it could disenfranchise the main banks, the high street banks in the way that I think some of these trends in renewable energy are going to disenfranchise the energy incumbency.

RH: Is there any merit at all to that argument that shale gas can be a bridge fuel, that it displaces coal so therefore it has a role as a bridge fuel, or not?

JL: If people were capable of being collectively rational...  Clearly we can’t bring in renewables overnight. When we think of how fast we need to bring them in in order to stay below 450 parts per million of CO2 equivalent and ideally getting a lot lower than that to have a chance at defeating climate change. But we can’t do that overnight, no matter how fast we mobilise. If you can contain the leaks, gas actually works very well with solar as a combined heat and energy, combined heat and power with relatively low emissions.

The problem, as I say in the book, is that so much of the gas industry has retreated from the mantra that gas is the bridge to the low carbon future and are now pushing this ludicrous myth that gas actually is the bridge to the gas powered future, that unconventional gas is the route to the unconventional gas powered future. And of course, they deploy their lobbyists and their wrecking tactics to try and stall renewables and indeed kill renewables.

Since I finished writing the book, 10 of Europe’s biggest utilities have rocked up in Brussels and told the European Commission, and in Strasbourg the European Parliament, that what they want is all subsidies for renewables stopped, essentially a cap put on renewables, and gas opened up as the main route to powering Europe and also somehow, they say, fighting climate change.

RH: One of the things that you did before this book came out was the Carbon Tracker report about 'the carbon bubble', and arguing that 4/5 of the reserves that we know about need to stay in the ground, and that could lead to a big financial bubble. Could you just say a little bit about that, and about how that report has been received and any impact it may have had?

JL: Carbon Tracker is the little financial think tank that I have the privilege of chairing and being able to help to the extent that I can. The folk behind it, Mark Campanale and others have really done something amazing. I think I’ve never seen an argument get more traction with the policy world, the financial world. I’ve never seen an argument upset and discomfit the energy incumbency as much as this one does.

It’s not even recognised at the first level, in the accounting of companies, on the balance sheets. What Carbon Tracker is saying is let’s start recognising the risk. Of course, as soon as the language is put like that, in the terms of the capital markets, it’s difficult for the regulators and the people who should recognise a risk like the accountants and the auditors and the actuaries and all these folk, right across the financial chain to say "no, we’re not going to recognise the risk".

Some of them are, in their different ways. Some of the financial institutions have already started pulling large sums of investment out of fossil fuels as a result of this whole risk dialogue. It’s terrifically exciting, and I actually think that this could be the argument that breaks the log jam on climate change. I’m that optimistic about it.

RH: One of the things that I couldn’t find in the Carbon Tracker report was any analysis of issues around energy return on investment and whether it would even be economically feasible, even if people wanted to, to extract and burn all of that carbon. What are the economics that underpin that?

JL: The assumption is every time any company brings resources to the market, unless you’re a public offering and ask for money to turn them into reserves, the assumption is that of course all of it can be burnt without constraint. You and I know that there are going to be profound energy return on investment implications. But that’s the next level of argumentation. It’s difficult enough to get traction with these folk just on the basic carbon arithmetic arguments without energy return on investment, dysfunctional as that situation is.

I think if we can continue to make as much headway as we are on simple carbon logic, carbon arithmetic, carbon fuel asset stranding risk arguments then maybe there’s a bridge there to allow the very small number of brilliant folks who are working on energy return on investment to get their voices heard too.

RH: You say at one point in Energy of Nations, “I’m now convinced that capitalism as we know it is torpedoing our prosperity, killing our economies, threatening our children with an unliveable world. It needs to be re-engineered root and branch.” Does capitalism still have a place? What would re-engineered capitalism look like, and what does that mean for economic growth?

JL: It depends on your definition of capitalism. Economic growth as it’s currently measured? I think its days are over. That used to be that the mantras of the people classified as the lunatic fringe, but not any more. You can read this kind of thinking in the commentary in the Financial Times. In a world with a global economy on route to six degrees, how can such a system be viewed as sane any more, much less survivable?

The more of us who start using this language, this new type of capitalism – others won’t call it capitalism at all of course – a new type of capitalism. Certainly my point in the book is that modern capitalism, the form of capitalism that’s evolved in the last few decades is basically suicidally dysfunctional and we have to turn our backs on it and introduce an alternative set of systems. That’s what I think we have the opportunity to do in building the road to renaissance.

RH: It reads like you see that as lying in a combination of large and small things. You talk about a localisation mega-trend and peer-to-peer lending and community-led initiatives like Transition and others, need to sit alongside the bigger things as well in terms of investment etc. How do you see those two things sitting alongside each other?

JL: I think that’s right. The electricity grid might be a very good example of how this will play out. Right now, very few people question the assumption that we need to keep feeding this monster of a national electricity grid system, which is massively capital intensive, very difficult to figure out a way in which that could be upgraded and made fit for purpose decades into the future using new kinds of financing and the rest of it.

But I think inevitably what’s going to happen whether people like it or not, is that communities, towns, individual houses are going to get themselves off that grid and the march of technology is going to help them. People and communities are going to become increasingly self-sufficient.  When you do that, where’s the role for the national electricity grid, at a certain point? Where’s the role for a giant company like National Grid?

Aren’t we just going to be devolving down into community-based companies, co-ops and all the rest of it. I think it’s an exciting vision, because you get all sorts of spin-off benefits from a transition of that kind. I don’t have a blueprint template of how we get from A to B, the globalised national, international infrastructure world to the localised world. I think that’s a work in progress that we’re all going to have to be active players in the architecture of.

RH: In the popular media at the moment, a lot of the stuff around energy seems to be becoming an increasingly selfish perspective of "I don’t care about green energy taxes because I want my bills to be cheaper". Like it is with food, it’s all about cheap – how do we make energy as cheap as possible. The narrative that comes through very strongly in the book is about how a renewable energy revolution could meet all of our needs much better. We could have cheaper energy, we could have a healthier world. You paint that picture very powerfully. But that doesn’t seem to be yet coming through in the national debates, which seem to be more focused on how do we get rid of all these annoying windmills and pesky green taxes that push my bills up. Is that voice not coming through just because of powerful lobbying at certain levels? Why do you think this message isn’t being heard and how can we make it more heard?

JL: Because the incumbency has a nice little scam going hasn't it? They can pretend to be cheap by using an accounting system that takes their subsidies off the balance sheets, so they get tax breaks and they get their subsidies in different ways than the Feed in Tariffs. But all forms of energy have subsidy, as those of us who pay attention to the game know. The incumbency sits there righteously talking about "the cost of green taxes" and all the rest of it and it's a desperately unfair tactic.

The other issue that they don’t talk about is the third dimension: time going forward. Our costs and prices are coming down all the time, for the most part, whereas theirs are going up and up. Even where they aren’t, in the case of the US shale gas, they’re dysfunctionally low. So low that the marginal cost of drilling these fracked shale wells is so high that the companies are being driven slowly towards bankruptcy. As Art Berman calls it, the US gas industry is "an industry engaged in a suicide pact" as things stand.

Slowly, these things will become clear to people. People are so busy, they don’t have time to look below the mantras, and very often it’s easy to accept these mantras. But there’s so much fibbing going on and myth-spinning going on as a result of the poisoned belief system of the energy incumbency.

RH: The story that really comes through in the book, as much as anything, is your own personal story. It’s your own story of going in and out of endless, vastly frustrating meetings and meeting people whose heads are deeply in the sand. Half the stories are you just banging your head against a brick wall, it feels like. How, through all of that, have you sustained yourself? Where does the motivation to get up the morning after those dreadful meetings come from?

JL: There are so many grains of hope scattered around everywhere. One of the beauties of working on the front lines of the solar industry is that you see that seeing is believing effect time and time again.  Every person who gets a solar roof and sees that this technology works really well, that’s a joy to behold. It’s true of a middle-class Brit getting a solar roof for the first time in our country, and it’s true of African families getting a solar lantern instead of a kerosene lantern for the first time, and realising that they’ve instantly freed up 40% of their family income to spend on other stuff simply on savings against the price of kerosene.

All that kind of hope-laden stuff is very important to me, and of course on the policy front, we have our victories as well. We don’t just get frustrated and have setbacks. The Carbon Tracker is a joy to watch the way that is causing discomfort and anguish to the incumbency. It’s sometimes difficult not to be vindictive in enjoying that discomfort, when big energy companies are confronted with the source of their capital simply being withdrawn from them. I like seeing the looks on their faces.

RH: One of your previous books was called The Carbon War. Does this feel like a war to you as well?

JL: Absolutely. It’s a civil war. Like all civil wars, it’s complex and there are people with opposing belief systems operating under the same roof all the time. That’s been the case with every civil war in history probably. But here you see it very clearly. There are people in the same energy companies who have radically different views of the future. There are people in the same political parties, including the Conservatives, who have radically different views of the future.

It’s not a black and white thing, but a civil war it is, and make no mistake, the threatened incumbency, as they see and smell the ultimate demise of their belief system, ever more clearly, are fighting as in many wars, the most bitter and horrid fighting is done towards the end of the war. You saw that with the Second World War in particular. The same thing is happening in the energy civil war right now.
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Fukushima impact on US sailors

SUBHEAD: US Congress wants answers on health impacts to USS Reagan carrier group personnel resulting from Fukushima disaster relief.

By Matthew M. Burke on 27 January 2014 for Stars & Stripes -
(http://www.stripes.com/congress-wants-answers-on-health-impacts-of-japan-disaster-relief-1.263843)


Image above: USS Reagan in drydock at Kitsap-Bremerton, Washington, for reconditioning on 3 February 2012, after disastrous encounter with radioactive fallout near Fukushima Daiichi nuclear plant in March 2011. From (http://commons.wikimedia.org/wiki/File:US_Navy_120203-N-DM338-001_Sailors_descend_a_staircase_to_the_dry_dock_of_USS_Ronald_Reagan.jpg).

Congress has instructed the Defense Department to launch an inquiry into potential health impacts on Navy first-responders from Japan’s March 2011 earthquake, tsunami and nuclear disaster.

The request, made in the explanatory statement from the House that accompanied the fiscal 2014 budget bill that passed Congress this month, comes as a growing number of sailors and Marines have joined a lawsuit against Tokyo Electric Power Co.

While the instruction is not law, Defense Department officials said that they were taking the request seriously.

“The Department treats reporting requirements included in committee reports seriously and tries to respond to all of them,” Defense Department spokesman Army Lt. Col. Catherine Wilkinson wrote in a statement to Stars and Stripes.

The statement gives Assistant Secretary of Defense for Health Affairs Dr. Jonathan Woodson until April 15 to submit a report to the congressional defense committees that includes the number of sailors serving on the USS Ronald Reagan during Operation Tomodachi who were potentially exposed to increased levels of radiation; adverse medical conditions experienced by Reagan sailors since the operation; and actions taken before, during and after the operation to ensure sailors’ safety.

Woodson must also include the number of sailors who participated in the operation who are still in Navy, reservists who participated and sailors who have since separated.

About 50 sick sailors and Marines have accused TEPCO of lying about the risk of exposure, luring American forces closer to the affected areas and lulling others at bases across Japan into disregarding safety measures. These individuals claim to be suffering from exposure-related ailments such as unexplained cancers, excessive bleeding, thyroid issues and ailments including loss of muscle power, migraines and vision problems.

The suit was filed in federal court in San Diego in December 2012 seeking damages and funds to cover medical expenses. The original eight complainants were on the USS Ronald Reagan, but the suit has since expanded to include those who served aboard the USS Essex and USS Germantown as well as attached Marines.

The explanatory statement does not request an inquiry into the health and safety of Marines who participated in the operation.

“Recent reports of sailors who have developed cancer and other health conditions linked to radiation exposure after serving on the USS Ronald Reagan during Operation Tomodachi, which provided humanitarian assistance following the earthquake and subsequent tsunami in Japan in March 2011, are disconcerting,” the statement said.

The statement directs Secretary of the Navy Ray Mabus to use allocated funds — for example, $200 million for its peer-reviewed medical research program, $100 million for its joint warfighter medical research program or $25 million for its peer-reviewed cancer research program — to research the health effects of radiation exposure and to ensure any health issues from the mission are fully addressed.

Mabus was also directed to report to the congressional defense committees on exposure-related research efforts.

Lawyers for the plaintiffs praised Congress for looking into the issue.

“It feels like maybe there’s light at the end of the tunnel,” Paul Garner, lawyer for the plaintiffs, said. “But we shall see.”

Garner said they plan to file an amended complaint Feb. 6 to address issues raised by a federal judge in the case late last year. He expects 25 to 100 sailors and Marines to be added to the case, and that number could climb even after the amendment is filed.

“Their future is a dire one,” Garner said. “We’re pushing TEPCO to start a fund to help these people right now.”

Congress isn’t alone in taking notice. An online petition to “Help Irradiated Fukushima ‘First Responders’ from USS Ronald Reagan etc” was launched earlier this month on the community petition site AVAAZ.org. The petition has 238 signatures from people as far away as Canada and Grenada.

“Scores of brave US sailors were seriously contaminated and made sick by Fukushima radiation while helping to save Japanese citizens during the 3/11/11 earthquake/tsunami,” the petition reads. “But they were not told about massive radiation doses they suffered from the Fukushima melt-downs & explosions. Many are seriously ill and are suing Tokyo Electric Power. THEY NEED OUR HELP!”

When the March 11 disaster struck, the Reagan was on its way to Korea, according to Reagan sailors who participated in Operation Tomodachi. They turned around and immediately made their way for the Japanese mainland, passing through a sea of debris.

Sailors told Stars and Stripes that they believe they were as close as five miles off the coast of the stricken plant that spewed radiation into the air and sea.

Sailors who were onboard the Reagan have claimed that they were drinking contaminated desalinated seawater and bathing in it until the ship’s leadership came over the public address system and told them to stop because it was contaminated. They claim the ventilation system was also contaminated. Furthermore, some claim they were pressured into signing forms confirming they had been given iodine pills when none had been provided.

The Defense Department and other organizations have said the radiation levels that troops were exposed to during Operation Tomodachi were safe. The Navy has acknowledged that the Reagan passed through a plume of radiation but said that it was not harmful. They have declined to comment on many of the other facets of the plaintiffs’ case.

The scientific community is divided on the effects of low-level radiation.

Garner believes the number of sick servicemembers and the nature of their ailments speaks for itself. They are seeking at least $40 million each in compensatory and punitive damages and more than $1 billion for a fund to cover health monitoring and medical expenses.

“This is not going to disappear,” he said.

[IB Publisher's note: The USS Reagan spent more than a year in drydock in drydock Kitsap-Bremerton, Washington, after encountering Fukushima. The Navy said it was just part of normal maintenance but the ship has been in its home port in San Diego since coming out of drydock. Last month it was announced that the ship will be reassigned next year to be stationed in Japan. It won't have its regular crew, but will be crewed by Navy personnel already in Japan. Read more here.]

See also:
Ea O Ka Aina: USS Ronald Reagan & Fukushima 12/15/13
Ea O Ka Aina: USS Reagan too radioactive to dock 12/ 22/13
Ea O Ka Aina: NSA - Fukushima - USS Reagan 12/27/13

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Nebraskans resist Keystone XL

SUBHEAD: TransCanada took land in Texas through eminent domain. It will so in Nebraska as a last resort.

By Jennifer Oldham on 30 January 2014 for Bloomberg News -
(http://www.bloomberg.com/news/2014-01-31/nebraskans-resist-keystone-spurning-transcanada-s-checks.html)


Image above: Protester of XL Pipeline cements himself to construction site in Oklahoma. From (http://www.krmg.com/news/news/local/protestors-cement-themselves-keystone-xl-pipeline-/nXqrd/).

An icy wind rattles a metal warehouse in York, Nebraska, as farmers and ranchers inside vow not to sign easements with a Canadian company to bury the Keystone XL oil pipeline on their land.

“I think TransCanada has been surprised we country bumpkins gathered,” said Bonny Kilmurry, one of about 145 landowners meeting here, about 100 miles (160 kilometers) west of Omaha, who have declined the company’s overtures. “I think we do have hope in sticking together.”

While Calgary-based TransCanada Corp. has signed agreements with property owners in Montana and South Dakota along the pipeline’s proposed 1,179-mile route from Alberta, some families along the path through eastern Nebraska are holding out. They hope staying united will give them leverage to negotiate deals with stricter safety controls to protect their water supply.

The U.S. State Department, which is reviewing the project because it crosses an international border, is set to release an environmental report in coming weeks. The analysis comes amid debate over the safety of moving oil by rail after accidents including a deadly derailment in Quebec last July.

Federal agencies will have 90 days to comment on whether the 36-inch (90-centimeter) diameter pipeline is in the national interest. President Barack Obama has said he won’t approve Keystone XL if it’s found to substantially boost carbon-dioxide emissions.

Revised Route
TransCanada revised the route through Nebraska in 2012 after Governor Dave Heineman, a Republican, voiced concern that an oil leak could foul the environmentally sensitive Sandhills region or the Ogallala Aquifer beneath it that provides drinking water to 1.5 million people and is essential to agriculture.

The refusal of Nebraska land owners to yield ground that in some cases has been in their families for generations is the second challenge the maverick prairie state has posed to the $5.4 billion project.

A push by the company to negotiate easements with property owners along the new path intensified in recent months, as some farmers turned down payments in excess of $285,000 for use of their land.

TransCanada, which wants to build Keystone XL to link the oil sands of Alberta with refineries on the Gulf of Mexico, has “reached agreements with about 73 percent of landowners along the revised Nebraska route,” Davis Sheremata, a company spokesman, said by e-mail. “We are pleased with the progress we have been making there.”

Federal Review
As the federal review of what some call the most scrutinized pipeline in U.S. history continues, Nebraskans are joining environmentalists in a push to get the attention of Congress and ordinary Americans.

“What we’re doing is very different from what other landowners have done,” said Jane Kleeb, executive director of Bold Nebraska, a Hastings-based nonprofit. “Instead of negotiating on price, we’re saying we’re not going to negotiate until they get a permit. It’s changed the rules for TransCanada.”

The State Department report on the pipeline will go to President Barack Obama, who will make the final decision.

“If the State Department finds what it already found in its draft -- that there would be no increase in carbon pollution from tar sands -- then the Nebraska landowners could come into play in his decision because there’s another component that the pipeline needs, and that’s to be in the national interest of the United States,” said Daniel J. Weiss, director of climate strategy at the Center for American Progress, a Washington group typically aligned with Democrats.

Constitutional Challenge
Landowners in Nebraska have also filed a lawsuit against the state challenging the constitutionality of the law that allowed Heineman to approve the new route, rather than leave it to the Nebraska Public Service Commission.

Whoever loses is likely to appeal to the state Supreme Court, potentially leaving the alignment in flux, said David Domina, an Omaha attorney representing the landowners.

Nebraska holdouts are using Google Inc.’s YouTube to keep their concerns about the pipeline’s potential impact on their rural life, and the world’s climate, in the public eye.

The movement gained momentum in September, when Bold Nebraska and environmental groups used $65,000 in contributions from more than 1,300 donors to buy a kit for a barn powered by renewable energy, then recruited volunteers to build it in the path of the proposed pipeline.

Jenni Harrington provided part of a soybean field on her family farm, 15 miles northwest of York, for the building.

From Great-Great-Grandfather
“My great-great-grandfather homesteaded this land in 1864,” Harrington said in an interview in the barn as a windmill screeched outside and dust filtered under the door.

“If this gives them the land we inherited from our father, it won’t be the same to hand over to our children,” she said. “Our big concern is if there was some sort of leak that got to our wells.”

TransCanada said it has agreed to use thicker-walled steel, increased shut-off valves and other techniques to lay the pipeline.

“The Final Environmental Impact Statement on Keystone XL extensively evaluated the impacts of a spill or release from the pipeline, including on the aquifer,” said Sheremata, the company spokesman. “Even in areas where a spill might reach groundwater, the impacts would be localized to an area measured in hundreds of feet.”  

Red Herring
Brigham McCown, former administrator of the U.S. Pipeline and Hazardous Materials Safety Administration under President George W. Bush, called concerns about damage to the aquifer a “red herring.”

“There are thousands of miles of pipeline in the Ogallala Aquifer,” he said.

McCown said Nebraskans have managed to hold out longer than landowners in Texas and Oklahoma who opposed the southern leg of the pipeline. That route, known as the Gulf Coast line, became operational Jan. 22 and transports crude oil regionally.

TransCanada took some land from Texas property owners through eminent domain, an action it says it will only use in Nebraska as “a last resort.”

Eminent domain is the right of governments to take private property for the public good, so long as the landowner is compensated. In Texas, operators of pipelines that qualify as common carriers can condemn property for easements, a form of taking.

Disturb Soil
About 110 miles north of the Harrington farm, near Neligh, Art Tanderup said he’s concerned that the pipeline, which would run 600 feet from a house built in 1921 by his wife’s grandfather, would disturb the topsoil, making it difficult for him to grow soybeans profitably.

“We would lose almost 50 acres of ground during construction,” said the former high school teacher, who retired in 2011 to run the farm with his wife, Helen. “They say they will make it just like it was, but I’m concerned it will be difficult to raise anything.”

Tanderup’s dog, Penny, trotted alongside as the farmer steered his pickup over uneven ground littered with dried corn husks. Pipeline construction, he said, could disturb artifacts left by the Ponca Indians in the 1870s during a forced relocation from Nebraska to Oklahoma known as the Trail of Tears.

Unstable Area
About 75 miles further north, in Holt County, Terry and Diana Steskal said the pipeline would be buried in unstable soil along the proposed route, which would cut their 480-acre farm in half.

“There’s very little difference between the Sandhills in sand and texture of sand on my property,” said Terry Steskal, whose father bought the farm near Atkinson in the 1940s for $5.15 an acre, leaving the family so broke he shingled the outbuildings with tobacco cans. “If there was a leak it would go through that sand fast. Our number one concern is liability.”

Nebraskans who’ve negotiated easements along the Keystone XL route said the thousands of miles of pipeline that already exist in the state haven’t had major problems.

“There’s a lot of a pipeline in Nebraska,” said Bill Tielke, a Holt County supervisor who signed an easement with TransCanada to use land on his farm near the Steskal homestead.

“They were offering a pretty good sum of money -- if they are going to offer that kind of money, why would you not accept it? Unless you absolutely don’t owe debt to anyone.”

.

Shell Ditches Arctic Drilling Plans

SUBHEAD: 'Victory for grassroots activism' as energy giant says its 2014 Alaska exploration plans are shelved.

By Andrea Germanos on 30 January 2014 for Common Dreams -
(http://www.commondreams.org/headline/2014/01/30-5)


Image above: A demonstration by Greenpeace in the shadow of the Davos 43rd annual World Economic Forum n 2013. From original article.

To the cheers of environmental groups, fossil fuel giant Shell announced Thursday that it is shelving its plans to drill in the Alaskan Arctic in 2014.

The company cited a court decision from last week that found that the U.S. Department of the Interior did not accurately assess the potential environmental impacts from a spill in the region.

A statement issued by Shell says that "The landscape the company had expected has changed," and that the court decision that ruled in favor of the environmental coalition "raises substantial obstacles to Shell’s plans for drilling in offshore Alaska. As a result, Shell has decided to stop its exploration program for Alaska in 2014."

"This is a disappointing outcome, but the lack of a clear path forward means that I am not prepared to commit further resources for drilling in Alaska in 2014," said CEO Ben van Beurden, who took the helm of Shell at the start of the year. "We will look to relevant agencies and the Court to resolve their open legal issues as quickly as possible."

According to reporting by the Associated Press, van Beurden indicated to reporters in London that the project could be totally finished depending on the outcome of the ongoing lawsuit.

Photographer, writer and voice of Arctic conservation Subhankar Banerjee told Common Dreams via email that the good news comes following years of committed efforts by native and environmental groups.

"In the summer of 2006 when the first Shell ship came to the Beaufort and Chukchi seas to conduct seismic surveys of the seafloor, I was there. Ever since then, the Inupiat communities in partnership with environmental organizations have filed numerous legal suits to challenge Shell’s drilling plan," Banerjee said, and welcomed the news as "a victory for grassroots activism."

Ocean advocacy group Oceana applauded the company's decision as well, stating that the "announcement that it will back away in 2014 confirms once again that the company's proposed exploration is neither prudent nor feasible. There is no proven technology to clean up oil spilled in icy Arctic conditions, and drilling will not help move our country toward responsible and clean renewable energy."

Yet the battle to save the Arctic isn't over.

"While van Beurden isn’t willing to 'commit further resources,'" Banerjee adds "the activists must now 'commit further resources' to strengthen the resistance movement and educate the public about the dangers of drilling in the Arctic Ocean. A damaged Arctic would threaten not only the human and nonhuman life in the far North, but all over the Earth."

"Let us celebrate the victory for sure, but keep in mind that Shell will try to be back and we will have to stop them, year, after year, after year."

See also:
Ea O Ka Aina: 44th Davos World Economic Forum 1/23/14
.

Shake me, wake me!

SUBHEAD: The event horizon of bad faith is the point where the credulous folk of this age ride a juggernaut.

By James Kunstler on 3 February 2014 for Kunstler.com -
(http://kunstler.com/clusterfuck-nation/shake-me-wake-me/)


Image above: Scene in movie Inception of the dreamworld collapsing. From (http://topwalls.net/movies-films-beginning-inception-city-sun-building/).

 The rot moves from the margins to the center, but the disease moves from the center to the margins. That is what has happened in the realm of money in recent weeks due to the sustained mispricing of the cost of credit by central banks, led by the US Federal Reserve. 

Along the way, that outfit has managed to misprice just about everything else  — stocks, houses, exotic securities, food commodities, precious metals, fine art. 

Oil is mispriced as well, on the low side, since oil production only gets more expensive and complex these days while it depends more on mispriced borrowed money. That situation will be corrected by scarcity, as oil companies discover that real capital is unavailable. 

And then the oil will become scarce. The “capital” circulating around the globe now is a squishy, gelatinous substance called “liquidity.” All it does is gum up markets. But eventually things do get unstuck.

Meanwhile, the rot of epic mispricing expresses itself in collapsing currencies and the economies they are supposed to represent: India, Turkey, Argentina, Hungary so far. Italy, Spain, and Greece would be in that club if they had currencies of their own. 

For now, they just do without driving their cars and burn furniture to stay warm this winter. Automobile use in Italy is back to 1970s levels of annual miles-driven. That’s quite a drop.

Before too long, the people will be out in the streets engaging with the riot police, as in Ukraine. This is long overdue, of course, and probably cannot be explained rationally since extreme changes in public sentiment are subject to murmurations, the same unseen forces that direct flocks of birds and schools of fish that all at once suddenly turn in a new direction without any detectable communication.

Who can otherwise explain the amazing placidity of the sore beset American public, beyond the standard trope about bread, circuses, and superbowls? Last night they were insulted with TV commercials hawking Maserati cars. Behold, you miserable nation of overfed SNAP card swipers, the fruits of wealth and celebrity! 

Savor your unworthiness while you await the imminent spectacles of the Sochi Olympics and Oscar Night! Things at the margins may yet interrupt the trance at the center. My guess is that true wickedness brews unseen in the hidden, unregulated markets of currency and interest rate swaps.

The big banks are so deep in this derivative ca-ca that eyeballs are turning brown in the upper level executive suites. Notable bankers are even jumping out of windows, hanging themselves in back rooms, and blowing their brains out in roadside ditches. 

Is it not strange that there are no reports on the contents of their suicide notes, if they troubled to leave one? (And is it not unlikely that they would all exit the scene without a word of explanation?) 

One of these, William Broeksmit, a risk manager for Deutsche Bank, was reportedly engaged in “unwinding positions” for that that outfit, which holds over $70 trillion in swap paper. For scale, compare that number with Germany’s gross domestic product of about $3.4 trillion and you could get a glimmer of the mischief in motion out there. Did poor Mr. Broeksmit despair of his task? 

Physicist Stephen Hawking declared last week that black holes are not exactly what people thought they were. Stuff does leak back out of them. 

This will soon be proven in the unwinding derivatives trades when most of the putative wealth associated with swaps and such disappears across the event horizon of bad faith, and little dribbles of their prior existence leak back out in bankruptcy proceedings and political upheaval.

The event horizon of bad faith is the exact point where the credulous folk of this modern age, from high to low, discover that their central banks only pretend to be regulating agencies, that they ride a juggernaut of which nobody is really in control. 

The illusion of control has been the governing myth since the Lehman moment in 2008. We needed desperately to believe that the authorities had our backs. They don’t even have their own fronts.

Is the money world at that threshold right now? One thing seems clear: nobody is able to turn back the plummeting currencies. They go where they will and their failures must be infectious as the greater engine of world trade seizes up. 

Who will write the letters of credit that make international commerce possible? Who will trust whom? When do people seriously start to starve and reach for the pitchforks? When does the action move from Kiev to London, New York, Frankfurt, and Paris?


.

TGI as apologists' highway

SUBHEAD: TGI is heavily influenced by the corporations, organizations and individuals doing Kauai the most harm.

By Juan Wilson on 2 February 2014 for Island Breath -
(http://islandbreath.blogspot.com/2014/02/tgi-as-apologists-highway.html)


Image above: Typical fluff. Front page TGI photo by Dennis Fujimoto on 2/2/14.  Halea Bactad and Jessica Kaleiohi, react to the ice water during the polar plunge Saturday at Kapaa Beach Park. From (http://thegardenisland.com/news/local/plunging-for-a-good-cause/article_0e0ca90e-8bd6-11e3-86bf-001a4bcf887a.html).

This Sunday the only newspaper on Kauai, the Garden Island News has an unusually heavy number of of neer-do-wells and P.R. flaks pimping for organizations that are under pressure from island residents.

Number 1:
Front page banner headline
Atrazine Hazard Use Down

THE GIST: Don't worry. Even though Syngenta manufactures Atrazine and uses it and many more restricted use pesticides in GMO plant experiments near Kauai neighborhoods you don't have to be concerned because that's just a bad memory fading in the rear view mirror. You should trust our government's regulating efforts and the corporations providing the few jobs left on Kauai.



Atrazine Hazard Use Down
Report shines light on statewide use of chemical herbicide
By Chis D'Angelo on 2 February 2014 for TGI  (http://thegardenisland.com/news/local/atrazine-hazard-use-down/article_44c742c0-8bd5-11e3-b454-001a4bcf887a.html)

Over the last seven decades, the use of atrazine in Hawaii has declined significantly, from about 400,000 pounds in 1964 to 77,403 pounds in 2012, according to a recent study by the state Department of Health. And much of that drop is the result of the state’s dying sugar industry.

For anyone concerned about atrazine and its potential health and environmental impacts, DOH supervisor Fenix Grange said the report should be “extraordinarily comforting.” “The hazard is going down, not going up,” she said. “But to be sure, we’re going out and collecting samples.”

The legislative report — as well as the DOH’s current sampling effort — is the fruit of House Concurrent Resolution 129.

Adopted in April, it called for the DOH to head up a task force to address the potential data gaps on air, surface water and near-shore effects of the chemical herbicide.

“Last spring they asked for an atrazine study, because atrazine was kind of the flavor of the month,” said Grange, who prepared the report along with DOH toxicologist Barbara Brooks.

The report, completed in November and recently posted online, found that the sugar industry “was and is the largest user of atrazine in Hawaii.”

“The drop in atrazine usage over time reflects the decline of sugarcane cultivation, cancellation of some uses and more restrictive label application rates,” according to the report.

HCR 129 states “it is in the best interest of the state to be at the forefront of a monitoring and regulatory effort to protect Hawaii residents from the potential adverse effects of chronic atrazine exposure.”

Grange said the 63-page report is the first of its kind, a compilation of historical atrazine use data throughout the state. Manufactured by Syngenta,
Atrazine is a pre- or post-emergence herbicide used for weed control. Registered in the U.S. since 1958, it is one of the most widely used herbicides, with 76.5 million pounds of the active ingredient used domestically each year...
Click here for more.




Number 2:
Front page above the fold story
Mayor - Attacks are politically motivated

THE GIST: It must be getting hotter in Mayor Bernard P. Carvalho's inner sanctum to have  a heavy hitting Honolulu attorney respond to recent actions by Kauai residents to have the mayor step down for inappropriate use of a county credit card for personal gain and refusal to testify and so violating Hawaii Statute 78-9. See GasGate article here.


Mayor - Attacks are politically motivated
Carvalho’s attorney responds to public criticism
By Darin Moriki on 2 February 2014 for TGI  (http://thegardenisland.com/news/local/mayor-attacks-are-politically-motivated/article_b63ef294-8bd6-11e3-9289-001a4bcf887a.html)

Kauai Mayor Bernard Carvalho Jr. is dismissing claims that he violated state law during a county audit investigation that began four years ago.

The two-term mayor issued a statement on Saturday through his Honolulu-based attorney in response to public claims that he had violated the law.

The allegations, released in emails to county officials, state lawmakers and several media outlets over the past two weeks, called on Carvalho to step down because he did not cooperate with a criminal investigation stemming from an audit of county fuel charges.
“This is old news and curiously comes at a time when the mayor is ramping up a re-election campaign,” Carvalho’s personal attorney Eric Seitz said in the statement. “These allegations are without merit and an examination of the facts will show the mayor has done nothing wrong.”
The audit, published by County Auditor Ernesto “Ernie” Pasion in April 2012, implied that Carvalho and other county employees illegally used county fuel for personal use.
A subsequent review of the allegations by the attorney general’s office found no basis for further criminal investigation.
Because Carvalho invoked his Fifth Amendment right against self-incrimination and refused to answer questions during the investigation, several residents, including Glenn Mickens, Ken Taylor, Michael Sheehan, and Sheehan’s attorney Richard E. Wilson, said state laws specifically call for Carvalho to vacate office.
“Your tenure as mayor has ended,” Wilson wrote in a Jan. 30 letter addressed to Carvalho.
Click here for more. 



Number 3:

Editorial Page Guest Commentary
KIUC top goal remains reducing bills

THE GIST: It's funny that if that is the goal of KIUC for the last decade in that we still have the most expensive electricity in the country. Maybe it's partially because of the over generous perks to the KIUC executive elite. Maybe it's because its the board's refusal to face a future of less consumption and centralization of electrical power generation. Maybe it's because KIUC is not really a cooperative at all, but just another corporation bleeding its customers.


 KIUC top goal remains reducing bills
By KIUC Chair Allan Smith on 2 February 2014 in TGI
Now that the special election on meter fees is concluded, I want to thank the 43 percent of our members who took the time to learn about the issue and to vote.

We're especially grateful to the 74 percent who voted "yes" and supported the decision of their elected board.

I want to make some observations about our member-owned cooperative, about our obligations as directors and about the realities of running a public utility.

As an elected director, I have the fiduciary duty to represent the interests of all members of KIUC.

This includes our industrial and commercial members who represent 60 percent of our revenue as well as our 25,000 residential customers. As a lifelong resident of Kauai, I take my responsibilities seriously, especially when considering how the actions I take today will affect future generations.

Over the course of this election, I've heard some people talk about "making the cooperative act like a cooperative." The way they would accomplish this is to increase the influence of a tiny minority of the members and put operational decisions of the utility up for a popular vote.

Cooperative and democratic principles are not based on the tyranny of the minority, but rather on representing the views of the majority. As for running the utility, I'm confident that the great majority would prefer to leave that to the professional staff and elected board.

As chairman of KIUC's board, I only am one vote of nine. Every action we take must receive the support of a majority of the directors. This is how a cooperative works. This is how democracy works. We must be able to compromise, we *must accept that we do not always get our way and, win or lose, we must move on to address the next issue.

Once the board makes a decision, we have the fiduciary duty to advocate for that decision and explain to members why they should support it. Yet this is seen by some as violating the principles

of the cooperative. To me, it would not only break our commitments as directors but would go against common sense to remain silent on a challenge to one of our decisions.

In the event of future petitions, we will continue to educate our members on why the decision was made and what's at stake for the cooperative. We will ask for their vote to support the elected directors' decisions.

I am increasingly concerned by the process that allows 250 people to sign a petition - less than 1 percent of our membership - to challenge actions taken by the board. Particularly when a repeat petition challenger told The Garden Island that he "was more excited about the high voter turnout than disappointed about the results ... that's good for democracy ... I'm glad that we had the conversation."

It was not a conversation, it was a confrontation,  one that cost the membership well over $100,000 in direct expenses and staff time.

While the petitioners may look upon this as some sort of academic exercise, a challenge to a board action is a very serious matter. We do not take it lightly. And now, for the second time in three years, nearly three-quarters of the members who voted in a petition election defeated a challenge of a board action.

While the petitioner believes the high turnout was "good for democracy," he shouldn't tryto spin the outcome as a win. I took it as a sign that many of our members are fed up.

This was a direct rebuke from the vast majority of members who are tired of seeing their cooperative's time and resources diverted from the No. I goal in our strategic plan: cutting their electric bill.

Now we have another vote coming up. The ballots will be arriving soon for the 2014 board of directors election. I hope our members will remain engaged and will vote after studying the backgrounds and positions of the 11 candidates.

As directors, our job is to make choices. Some choices are more popular than others. But we make these choices in a thoughtful, responsible manner and in the best interests of our members and Kauai.
IB note: This article was not online at time of this publication.




CONCLUSION
My take on these three TGI articles is an increasing distrust of having no paper of record actually published on Kauai. The news (and the lawyering) is coming from Oahu and beyond. This stuff is a lot of mushy mealy public relations sprinkled with sugar (or more likely HFCS).

I praise the individual letters to the editor and the efforts of some of our on islands reporters, but TGI is heavily influenced by the corporations, organizations and individuals doing Kauai the most harm.

The real issues are related to Conservation, Decentralization and Rehumanization. See more Ea O Ka Aina: A Bargain with the Archdruid.
.

Mayor Carvalho and Gasgate

SUBHEAD: Did the Mayor violate the law using a county credit card? Did he disqualify himself from office by refusing to incriminate himself?

By Ken Taylor on 1 February 2014 in Island Breath -
(http://islandbreath.blogspot.com/2014/02/mayor-carvalho-and-gasgate.html)

[IB Publisher's note: The following is a compilation of a few emails recently submitted to us by Ken Taylor involving the controversy over an investigation of Kauai Mayor Carvalho in the possible misuse of a county gas credit card.]


Image above: A gift card for Shell gasoline. From (http://shellvzine.com/vpower/15/53).

Glenn Mickens and I read comments found on pages 7, 8, and 9 of this complaint in regard to a County Fuel Audit that indicated a high elected Kauai official was using a County gas credit card for personal vehicle use. Among other things the complaint said:
27. The Staff Aufitor's review revealed. among other things, that a certain high elected Official ("Official A") used a County gas card assigned to a seldom-used Transportation Agency vehicle to purchase fas for Official A's private vehicle. This meant that Official A was using the County resources and taxpayer's monies for what appeared to be a personal purpose.
There was concern that Official A's conduct was a violation of law.

See PDF here (http://www.islandbreath.org/2014Year/02/140201complaint.pdf).

Based on that document Glenn Mickens and I, Ken Taylor, analyzed Hawaii statute 78-9:


 78-9 : Hawaii Statutes - Section 78-9: Failure to appear or testify, termination of employment.
Search Haw. Rev. Stat. § 78-9 : Hawaii Statutes - Section 78-9: Failure to appear or testify, termination of employment.
·         Search by Keyword or Citation

 If any person subject to sections 78-8 to 78-11, after lawful notice or process, wilfully refuses or fails to appear before any court or judge, any legislative committee, or any officer, board, or commission, or having appeared refuses to testify or to answer any question regarding -
(1) the government, property or affairs of the State or of any political subdivision thereof, or

(2) the person's qualifications for public office or employment, or

(3) the qualifications of any officer or employee of the State or any political subdivision thereof, on the ground that the person's answer would tend to incriminate the person, or refuses to testify or to answer any such question without right,
- the person's term or tenure of office or employment shall terminate and the office or employment shall be vacant, and the person shall not be eligible to election or appointment to any office or employment under the State or any political subdivision thereof.

To the extent that the State is without authority to require, under the constitution or laws of the United States, compliance by any public officer or public employee herewith, sections 78-8 to 78-11 shall not apply to the officer or employee, but the sections shall apply to the extent that they or any part thereof can lawfully be made applicable.

[L 1951, c 177, §2; RL 1955, §5-4; HRS §78-9; gen ch 1985; am L 2001, c 83, §3]


See more at: (http://codes.lp.findlaw.com/histatutes/1/7/78/78-9#sthash.PJ2VowCE.dpuf)

Glenn Mickens and and I subsequently wrote a letter to Kauai Mayor Bernard Carvalho that read as followes:


TO THE HONORABLE MAYOR BERNARD CARVALHO
4444 RICE ST. STE
LIHUE, HI 96766

ALOHA MAYOR CARVALHO:

Section 78-9 of the Hawaii Revised Statutes provides that if after lawful notice or process an official appears before a court or an administrative body and fails to answer any question regarding government property or affairs of the State or any political subdivision on the grounds that the person's answer would tend to incriminate the person, the person's tenure in office shall terminate and the office or employment shall be vacant. It seems evident that our state intended that a county or state employee could invoke the privilege contained in our Federal constitution on a work related matter to seek to avoid criminal conviction but that such such invocation would result in termination of the employee's position.

We are informed that after having been duly served you appeared pursuant to an investigation being made related to a Fuel Audit conducted by the Kauai County Auditor and on that occasion you refused to answer inquiry as to your conduct on the grounds that the answer would tend to incriminate you and that at such appearance you were represented by Mr. Alfred Castillo, Kauai County Attorney.

If the information mentioned is inaccurate in any material respect or if you believe that the statute is inapplicable to your conduct, we are asking for your statement as to the reasons for your belief. Otherwise we will expect that you take action to comply with the provisions of HRS Section 78-9 in order that the Council may proceed in accordance with the terms of the Kauai County Charter to fill the vacancy in the mayoral office.

A prompt response to this letter is requested.

Respectfully yours,

_________________________
Glenn Mickens

_________________________
Ken Taylor


We did receive a reply to our letter from the Office of the Mayor which was as follows (http://www.islandbreath.org/2014Year/02/140201response.pdf):


From THE OFFICE OF THE MAYOR
County of Kaua‘i, State of Hawai‘i
4444 Rice Street, Suite 235, Līhu‘e, Hawai‘i 96766
TEL (808) 241-4900    FAX (808) 241-6877
Bernard P. Carvalho Jr.
Mayor
Nadine K. Nakamura
Managing Director

Via Email: taylork021@hawaii.rr.com; glennruth2030@gmail.com
January 16, 2014
Mr. Glenn Mickens Mr. Ken Taylor
Dear Glenn and Ken:
Mahalo for your letter dated January 14, 2014, regarding Section 78-9 of the Hawai‘i Revised Statutes.
Please be advised the matter in question is being researched. We will respond to your questions once the research has been concluded.
Best regards,
Beth Tokioka Director of Communications
C:    Bernard P. Carvalho, Jr., Mayor


Since then Michael Sheehan has responded to these events by requesting his lawyer, Richard E. Wilson, to write a letter to Mayor Carvalho. See (http://www.islandbreath.org/2014Year/02/140201formermayor.pdf):


From the Law Offices of Richard E. Wilson, LLC
850 Richards Street, Ste. 600 Honolulu, Hawaii 96813
Telephone: (808) 545-1311 Facsimile:  (808) 545-1388
February 1, 2014
Former Mayor Bernard Carvalho
County of Kauai
4444 Rice Street, Ste. 235
Lihue, Hawaii 96766

Re: Haw.Rev.Stat. §78-9

Dear Former Mayor Carvalho:

I correspond on behalf of my client, Michael G. Sheehan, a landowner and resident of Kauai.  Mr. Sheehan is very concerned about your actions and asked me to pen this letter.

It is Mr. Sheehan’s understanding that in your capacity as Mayor of Kauai, you refused, following lawful notice, to answer questions asked of you regarding the “property and/or affairs” of the County of Kauai on the ground that your answer would tend to incriminate you.  More specifically, you refused on the advice of counsel to answer questions in connection with an investigation undertaken by the County Auditor regarding the Fuel Audit (“gas card scandal”).  Pursuant to Haw.Rev.Stat. §78-9, you are no longer the Mayor of Kauai.

Haw.Rev.Stat. §78-9 states as follows:
If any person subject to sections 78-8 to 78-11, after lawful notice or process, wilfully refuses or fails to appear before any court or judge, any legislative committee, or any officer, board, or commission, or having appeared refuses to testify or to answer any question regarding (1) the government, property or affairs of the State or of any political subdivision thereof, or (2) the person's qualifications for public office or employment, or (3) the qualifications of any officer or employee of the State or any political subdivision thereof, on the ground that the person’s answer would tend to incriminate the person, or refuses to testify or to answer any such question without right, the person’s term or tenure of office or employment shall terminate and the office or employment shall be vacant, and the person shall not be eligible to election or appointment to any office or employment under the State or any political subdivision thereof.  To the extent that the State is without authority to require, under the constitution or laws of the United States, compliance by any public officer or public employee herewith, sections 78-8 to 78-11 shall not apply to the officer or employee, but the sections shall apply to the extent that they or any part thereof can lawfully be made applicable.
As Mayor at the time, you were a person subject to sections 78-8 to 78-11.  See, §78-8 (The persons subject to sections 78-8 to 78-11 are those elected to or appointed or employed in the government of the State or any county, or in any political subdivision thereof, or appointed to or employed in any office or employment any part of the compensation of which is paid out of public funds.)(emphasis added).

The procedure for your removal is as follows:
If any person subject to sections 78-8 to 78-11 refuses to appear or refuses to testify under any of the circumstances contemplated in section 78-9, the presiding judge or officer of the court or body before which the default or refusal occurs shall certify the fact thereof to the appointing or employing authority having cognizance of the person as a public officer or public employee and to the comptroller or other disbursing officer who issues warrants or checks to pay the person for the person’s services as a public officer or public employee.  If the default or refusal occurs before any court or body whose presiding judge or officer may not be required by the legislature to make and file such a certificate, then (1) the presiding judge or officer may make and file the certificate, and (2) the attorney general of the State, upon learning of the default or refusal, shall make and file the certificate if the presiding judge or officer of the court or body has not filed the same.  Upon receiving a certificate, (A) the appointing or employing authority  shall remove or discharge the person from office or employment, and (B) the comptroller or other disbursing officer shall make no further payments of public funds to the person, except to pay the person the salary, wages, bonus, or other compensation to which the person otherwise would be entitled if the person were voluntarily terminating the person’s office or employment on the day the order is served on the comptroller or other disbursing officer.  - Section 78-10.
Your tenure as Mayor has ended.

Mr. Sheehan’s sole question is how do you intend to proceed?

You can acknowledge that you are no longer the Mayor of Kauai pursuant to §78-9, and so advise the Council.  That would be Mr. Sheehan’s preferred avenue.  At least you would be able to control the news release and leave 4444 Rice Street on your own terms. 

The alternative is for Mr. Sheehan to obtain the relevant transcript, provide it to the Attorney General and then demand your removal in compliance with §78-10.  If you choose the latter, you will have no control over the situation and it will be a media circus.  Mr. Sheehan would, of course, advise the media that you refused to voluntarily leave which required him to seek your removal.  The choice is yours.

If we do not hear from you by the close of business, February 5, 2014, we will proceed accordingly, and without further notice to you.

Very truly yours,
Richard E. Wilson
REW/asa
cc:    Michael G. Sheehan

.

Obama's trade deals skewered

SOURCE: Ray Songtree (kauaitruth@gmail.com)
SUBHEAD: The TPP was already going pear shaped. Whatever momentum the US had been able to create is now kaput.

By Yves Smith on 30 January 2014 for Naked Capitalism -
(http://www.nakedcapitalism.com/2014/01/mirabile-dictu-reid-tells-obama-fast-track-killing-toxic-trade-deals-2014.html)


Image above: Harry Reid advising Barack Obama in 2013. From (http://www.jrn.com/kfdi/news/Obama-leans-on-Reid-to-gain-Senate-votes-to-reopen-government-227577611.html).

Obama made yet another pitch in State of the Union Address for his gimmies to multinationals known as the TransPacific Partnership and the TransAtlantic Trade and Investment Partnership. Today that idea went down in flames, at least as far as getting the deals done this year are concerned. From Huffington Post:
“I’m against fast track,” [Harry] Reid told reporters Wednesday on Capitol Hill, before suggesting a fast-track bill introduced by Sen. Max Baucus (D-Mont.) may not get a vote.

“We’ll see. Everyone knows how I feel about this. Senator Baucus knows, [potential backer] Sen. [Ron] Wyden knows. The White House knows.”

Indeed, Reid cautioned the president and his allies to back off.

“I think everyone would be well advised just to not push this right now,” the majority leader said.
Although Reid was known to be opposed to fast track, it’s quite another matter for him as a Democratic Congressional leader to tell Obama to take a hike. I can’t recall such frontal and public opposition to an important Administration initiative before. This is really humiliating.

And it also checkmates Obama, at least for now. From the Wall Street Journal:
Fast-track authority is seen as crucial to cementing a trade deal known as the Trans Pacific Partnership because of the reassurance it would provide negotiating partners in a last, tough round of talks. Other nations are typically reluctant to make trading concessions unless the U.S. can offer assurances that trading pacts won’t be amended or rejected at the last minute….

“You can kiss any new trade deals goodbye,” said Sen. John Cornyn (R., Texas.) “I think the majority leader’s focus is on the November elections and he doesn’t want to expose his vulnerable members to controversial votes.”
And from a later Wall Street Journal story:
Senate Majority Leader Harry Reid broke publicly with the White House Wednesday on trade policy, instantly imperiling two major international trade deals and punching a hole in one piece of the economic agenda the president outlined in his State of the Union address a day earlier.
And although it received much less media coverage, matters for Obama got even worse because Ron Wyden signaled he’s not on board either. This matters because Wyden is taking over as the chairman of the Finance Services Committee when Max Bacus becomes Ambassador to China.

The Administration absurdly tried claiming it would continue to push for fast track, otherwise known as trade promotion authority. Really? Over Reid’s dead body?

Politico contends that the Administration still has alternatives:
A blocked Senate leaves the Obama administration with two options: wait until after November’s election and try its luck with a new Congress or push for passage of the Pacific Rim deal – which is likely to contain a host of contentious provisions – while insisting that lawmakers not change a word.
But my Congressional correspondents think another gambit is more likely: to make some cosmetic changes and try to get the bill passed during the lame duck session, on the assumption that some Democrats (particularly those who are leaving office) will use the cover and change positions.

However, that cheery view assumes that the situation is static, when opposition to these bills is becoming even more pronounced. Politico again:
Reid’s comments come amid mounting Democratic opposition to the bill. On Monday, 550 labor, environmental and consumer advocacy groups – including the United Autoworkers, which has lent Obama critical backing on previous free trade pacts such as the South Korea deal – sent a letter to Congress urging them to reject the fast-track bill.
And the repudiation by Reid and the stiffening resistance to these bills won’t go unnoticed overseas. The Wikileaks publication of drafts of two critical chapters showed a wide gap between the US positions and that of many of its supposed partners.

Our reader Clive has also described how the Japanese media (and Japan is essential to the TPP being consummated) is being uncharacteristically direct in saying the US was not negotiating, and it would need to make significant concessions to reach an agreement. The TPP was already going pear shaped, and whatever sense of momentum the US had been able to create is now kaput.

Admittedly, the European trade deal is in much better shape, but the specter of a blunt rejection by Congressional leaders of the Administration’s own party may strengthen the hands of opponents. Remember, much can change in a year in politics.

So NC readers should pat themselves on the back. Your calls and e-mails to your Representatives and Senators helped deal the Administration a visible, embarrassing, and thoroughly deserved defeat. If Obama can’t deliver a deal that corporations lobbied for heavily, he’s firmly in lame duck territory.

I also hope you’ll thank your Congressmen for their opposition to these deals, and encourage them to keep up the good work. And be sure to thank Reid and Wyden. Good work!

See also:
Ea O Ka Aina: TPP - Poison for Resilience 1/15/14
Ea O Ka Aina: TPP - Corporate Domination 1/13/14
Ea O Ka Aina: Obama is a corporate toady‎ 12/9/13
Ea O Ka Aina: TPP is NAFTA on steroids 11/24/13
Ea O Ka Aina: With TPP Big Pharma & GMOs gain 11/14/13
Ea O Ka Aina: TPP & GMO labeling ban 10/25/13
Ea O Ka Aina: TPP revealed once more 8/29/13
Ea O Ka Aina: Green Shadow Cabinet 6/19/13
Ea O Ka Aina: Obama & Multi-Nationals in Pacific 11/25/12
.