Month: April 2010
Natural Gas Replacing Oil Has Big Geopoltical Implications
The coal industry will not surrender the power sector without a fight. The gasification of transport, if it happens, could also take a less direct form, with cars fuelled by electricity generated from gas.
A gasified American economy would have profound effects on both international politics and the battle against climate change. Displacement of oil by natural gas would strengthen a trend away from crude in rich countries, where the IEA believes demand has already peaked as a result of the recent spike in oil prices. Another consequence of the energy market’s bull run, the unearthing of vast new supplies of gas, could bring further upheaval. If the past decade was characterised by the energy-security concerns of consumers, the coming years could give even the world’s powerful oil producers reason to worry, as a subterranean revolution shifts the geopolitics of global energy supply again.
How The French Fry Came To India
INDIA is the third-biggest producer of potatoes in the world. The humble spud finds itself stuffed into flatbread, encrusted in cumin seeds or tucked into pancakes. But the truckloads of large, oblong potatoes that arrive at the McCain Foods plant in the Mehsana district of Gujarat face a more exacting ordeal. Ferried by a conveyor belt and propelled by water, they are sized, steam-peeled, sliced, diced, blanched, dried, fried (for precisely 42 seconds in vegetable oil at 199ºC), chilled, frozen, bagged and then boxed.
The 15kg boxes of fries that emerge at the other end of this pipeline supply the growing chain of McDonald’s restaurants in India. When McDonald’s first entered India in 1996, the food-processing industry was confined largely to ice cream and ketchup. Even importing frozen fries was complicated by the fact that such an exotic item did not appear on India’s schedule of tariffs and quotas. It took McDonald’s roughly six years and $100m to weld a reliable supply chain together.
A Food Fight for Hugo Chavez
El Presidente’s efforts to transform his country into a Cuban-style socialist state are sputtering. With its vast oil wealth, Venezuela shouldn’t suffer from shortages, yet inefficient farms, government takeovers of supermarkets, and a 50% currency devaluation in January have thrown the food supply into disarray. Chávez’s approval rating among Venezuelans has dropped to about 45% from 70% three years ago.
Supplying low-cost food to the poor has been a centerpiece of Chávez’s presidency. He has expropriated food processors, stores, and more than 6 million acres of farms and ranches, convinced that the government can feed Venezuela better than the private sector does. Under state ownership, though, production has suffered. From 1999 to 2008, per capita, sugar cane was off by 8%, fruit declined by 25%, and beef production dropped by 38%, according to Carlos Machado, an expert in agriculture at the Institute of Higher Administrative Studies, a business school in Caracas. “The cooperatives have failed and our cattle ranching has been decimated,” Machado says.
In a poll by researcher DATOS 86% don’t think Cuba is an appropriate model for Venezuela. Chávez “is moving in the opposite direction from what people say they want for their country,” says DATOS director Joseph Saade. “People look at everything the government has taken over and they’re seeing that the companies have become dysfunctional.”
Extreme Custom Cycles
Vehicle Tank: And you thought your bike was special…the crazy customs.
Relax, We’ll Be Fine
The U.S. is on the verge of a demographic, economic and social revival, built on its historic strengths. The U.S. has always been good at disruptive change. It’s always excelled at decentralized community-building. It’s always had that moral materialism that creates meaning-rich products. Surely a country with this much going for it is not going to wait around passively and let a rotten political culture drag it down.
via Op-Ed Columnist – Relax, We’ll Be Fine – NYTimes.com. Continue reading “Relax, We’ll Be Fine”
Video: The Orangutan and the Hound
We can always use one of those warm and fuzzy animal stories. Hat Tip to Valerie Sanders, animal lover extraordinaire.
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more about “Orangutan and the Hound“, posted with vodpod
Who Is Behind SNOPES?
David and Barbara Mikkelson are among those trying to clean the cesspool. The unassuming California couple run Snopes, one of the most popular fact-checking destinations on the Web. After 14 years, they seem to have concluded that people are rather cavalier about the facts. “Rumors are a great source of comfort for people,” Mrs. Mikkelson said.
The enduring articles are the ones about everyday fears: computer viruses, scams, missing children. Some e-mail chain letters, like the one offering users $245 for forwarding the message, never fade away.
“People keep falling for the same kind of things over and over again,” Mr. Mikkelson said. Some readers always seem to think, for instance, that the government is trying to poison them: Mrs. Mikkelson said rumors about AIDS have been recycled into rumors about swine flu vaccines.
For the Mikkelsons, the site affirms what cultural critics have bemoaned for years: the rejection of nuance and facts that run contrary to one’s point of view. “Especially in politics, most everything has infinite shades of gray to it, but people just want things to be true or false,” Mr. Mikkelson said. “In the larger sense, it’s people wanting confirmation of their world view.”
In a given week, Snopes tries to set the record straight on everything from political smears to old wives’ tales. No, Kenya did not erect a sign welcoming people to the “birthplace of Barack Obama.” No, Wal-Mart did not authorize illegal immigration raids at its stores. No, the Olive Garden restaurant chain did not hand out $500 gift cards to online fans.
via At Snopes, a Quest to Debunk Misinformation Online – NYTimes.com. Continue reading “Who Is Behind SNOPES?”
The Coming VAT Tax Exemptions Quagmire
“Food of the kind used for human consumption,” to a British bureaucrat, is something “the average person, knowing what it is and how it is used, would consider it to be food or drink; and it is fit for human consumption. . . . The term includes . . . products like flour, which, although not eaten by themselves, are generally recognized food ingredients . . . [but] would not usually include . . . dietary supplements, food additives and similar products, which, although edible, are not generally regarded as food.”And so, in the United Kingdom, according to the regulations of Her Majesty’s Inland Revenue Service, crackers made from tapioca starch carry no tax; prawn crackers made from cereals do. Frozen yogurt that needs to be thawed before eating is zero rated, frozen yogurt bears the tax. Get it? If you don’t, too bad—Her Majesty’s tax collectors are not in the habit of offering an explanation for their regulations.
This process of writing regulations for the VAT man when he cometh is more than merely amusing. For one thing, it confers enormous power on faceless bureaucrats.
They can hand a competing product the advantage in the U.K. of a price 17.5% lower (in Sweden it’s 25%) than a close substitute. That invites both lobbying and corruption and sheer, inexplicable arbitrariness. Get your “sweetened dried fruit” deemed to be “held out for sale as snacking and home baking” and your product will bear a tax and have to compete on grocers’ shelves with zero-rated “sweetened dried fruit held out for sale as confectionary/snacking.” Peddle your sandwiches “as a general grocery item” and consumers pay no tax, but offer them as “part of a buffet service” and the VAT man wants his 17.5%.
via Irwin Stelzer: Small Bras and the Value-Added Tax – WSJ.com.