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Monday, April 23, 2007

Effect of Not Warming

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Yesterday, I posted pictures of some unfortunate people. One was of people in a watery quagmire in Bangladesh with a caption commenting on the government's poor effort to combat mosquitoes and disease.

Another was of a soldier frozen to death.

Those who fear a few degrees more warmth are inclined to believe that warmth = bad and cold = good.

Just a point of clarification regarding mosquitoes and malaria. If you haven't read this before you should know that one of the worst outbreaks of malaria occurred in Siberia... yes Siberia....

Professor Reiter on malaria in the "Little Ice Age":

I wonder how many of your Lordships are aware of the historical significance of the Palace of Westminster? I refer to the history of malaria, not the evolution of government. Are you aware that the entire area now occupied by the Houses of Parliament was once a notoriously malarious swamp? And that until the beginning of the 20th century, "ague" (the original English word for malaria) was a cause of high morbidity and mortality in parts of the British Isles, particularly in tidal marshes such as those at Westminster? And that George Washington followed British Parliamentary precedent by also siting his government buildings in a malarious swamp! I mention this to dispel any misconception you may have that malaria is a "tropical" disease.

All this occurred in a period—roughly from the mid-15th century to the early 18th century—that climatologists term the "Little Ice Age". Temperatures were highly variable, but generally much lower than in the period since. In winter, the sea was often frozen for many miles offshore, the King could hold parties on the frozen Thames, there are six records of Eskimos landing their kayaks in Scotland, and the Viking settlements in Iceland and Greenland became extinct.

Despite this remarkably cold period, perhaps the coldest since the last major Ice Age, malaria was what we would today call a "serious public health problem" in many parts of the British Isles, and was endemic, sometimes common throughout Europe as far north as the Baltic and northern Russia. It began to disappear from many regions of Europe, Canada and the United States as a result of multiple changes in agriculture and lifestyle that affected the breeding of the mosquito and its contact with people, but it persisted in less developed regions until the mid 20th century. In fact, the most catastrophic epidemic on record anywhere in the world occurred in the Soviet Union in the 1920s, with a peak incidence of 13 million cases per year, and 600,000 deaths. Transmission was high in many parts of Siberia, and there were 30,000 cases and 10,000 deaths due to falciparum infection (the most deadly malaria parasite) in Archangel, close to the Arctic circle. Malaria persisted in many parts of Europe until the advent of DDT. One of the last malarious countries in Europe was Holland: the WHO finally declared it malaria-free in 1970.

I hope I have convinced you that malaria is not an exclusively tropical disease, and is not limited by cold winters!

But moving beyond that, how do humans generally fare in colder climates? Well, how about Scotland? That's a northern country with a climate somewhat moderated by the Gulf Stream. What does the medical establishment have to say about cold weather and human health in Scotland?
Could it be that humans, originally tropical creatures, really do better in warmth and that warmth does not necessarily mean squalor? Just because conditions are bad in Bangladesh, does it follow that conditions must also be bad in Singapore? Will a temperature increase of a few degrees suddenly destroy all of mankind's knowledge about controlling his environment... or his ability to adapt to it?
I would venture that those who fear any warming... from natural forces or from man's activity... may be doing so more from ignorance than reality.

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There is always an easy solution to every human problem—neat, plausible, and wrong.
Henry Louis Mencken (1880–1956)
“The Divine Afflatus,” A Mencken Chrestomathy, chapter 25, p. 443 (1949)
... and one could add "not all human problems really are."
It was beautiful and simple, as truly great swindles are.
- O. Henry
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FEDERAL RESERVE & HOUSING

SEARCH BLOG: FEDERAL RESERVE for full versions... or use the Blog Archive pulldown menu.

February 3, 2006
Go back to 1999-2000 and see what the Fed did. They are following the same pattern for 2005-06. If it ain't broke, the Fed will fix it... and good!
August 29, 2006 The Federal Reserve always acts on old information... and is the only cause of U.S. recessions.
December 5, 2006 Last spring I wrote about what I saw to be a sharp downturn in the economy in the "rustbelt" states, particularly Michigan.
March 28, 2007
The Federal Reserve sees no need to cut interest rates in the light of adverse recent economic data, Ben Bernanke said on Wednesday.
The Fed chairman said ”to date, the incoming data have supported the view that the current stance of policy is likely to foster sustainable economic growth and a gradual ebbing in core inflation”.

July 21, 2007 My guess is that if there is an interest rate change, a cut is more likely than an increase. The key variables to be watching at this point are real estate prices and the inventory of unsold homes.
August 11, 2007 I suspect that within 6 months the Federal Reserve will be forced to lower interest rates before housing becomes a black hole.
September 11, 2007 It only means that the overall process has flaws guaranteeing it will be slow in responding to changes in the economy... and tend to over-react as a result.
September 18, 2007 I think a 4% rate is really what is needed to turn the economy back on the right course. The rate may not get there, but more cuts will be needed with employment rates down and foreclosure rates up.
October 25, 2007 How long will it be before I will be able to write: "The Federal Reserve lowered its lending rate to 4% in response to the collapse of the U.S. housing market and massive numbers of foreclosures that threaten the banking and mortgage sectors."
November 28, 2007 FED VICE CHAIRMAN DONALD KOHN
"Should the elevated turbulence persist, it would increase the possibility of further tightening in financial conditions for households and businesses," he said.

"Uncertainties about the economic outlook are unusually high right now," he said. "These uncertainties require flexible and pragmatic policymaking -- nimble is the adjective I used a few weeks ago."
http://www.reuters.com/

December 11, 2007 Somehow the Fed misses the obvious.
fed_rate_moves_425_small.gif
[Image from: CNNMoney.com]
December 13, 2007 [from The Christian Science Monitor]
"The odds of a recession are now above 50 percent," says Mark Zandi, chief economist at Moody's Economy.com. "We are right on the edge of a recession in part because of the Fed's reluctance to reduce interest rates more aggressively." [see my comments of September 11]
January 7, 2008 The real problem now is that consumers can't rescue the economy and manufacturing, which is already weakening, will continue to weaken. We've gutted the forces that could avoid a downturn. The question is not whether there will be a recession, but can it be dampened sufficiently so that it is very short.
January 11, 2008 This is death by a thousand cuts.
January 13, 2008 [N.Y. Times]
“The question is not whether we will have a recession, but how deep and prolonged it will be,” said David Rosenberg, the chief North American economist at Merrill Lynch. “Even if the Fed’s moves are going to work, it will not show up until the later part of 2008 or 2009.
January 17, 2008 A few days ago, Anna Schwartz, nonagenarian economist, implicated the Federal Reserve as the cause of the present lending crisis [from the Telegraph - UK]:
The high priestess of US monetarism - a revered figure at the Fed - says the central bank is itself the chief cause of the credit bubble, and now seems stunned as the consequences of its own actions engulf the financial system. "The new group at the Fed is not equal to the problem that faces it," she says, daring to utter a thought that fellow critics mostly utter sotto voce.
January 22, 2008 The cut has become infected and a limb is in danger. Ben Bernanke is panicking and the Fed has its emergency triage team cutting rates... this time by 3/4%. ...

What should the Federal Reserve do now? Step back... and don't be so anxious to raise rates at the first sign of economic improvement.
Individuals and businesses need stability in their financial cost structures so that they can plan effectively and keep their ships afloat. Wildly fluctuating rates... regardless of what the absolute levels are... create problems. Either too much spending or too much fear. It's just not that difficult to comprehend. Why has it been so difficult for the Fed?

About Me

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Michigan, United States
Air Force (SAC) captain 1968-72. Retired after 35 years of business and logistical planning, including running a small business. Two sons with advanced degrees; one with a business and pre-law degree. Beautiful wife who has put up with me for 4 decades. Education: B.A. (Sociology major; minors in philosopy, English literature, and German) M.S. Operations Management (like a mixture of an MBA with logistical planning)