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Fed official: Climate change is an ‘international market failure’

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Climate change was already worrying enough — now a report from the U.S. central bank cautions that rising temperatures and extreme storms could eventually trigger a financial collapse.

A Federal Reserve researcher warned in a report on Monday that “climate-based risk could threaten the stability of the financial system as a whole.” But possible fixes — using the Fed’s buying power to green the economy — are currently against the law.

Glenn Rudebusch, the San Francisco Fed’s executive vice president for research, ranks climate change as one of the three “key forces transforming the economy,” along with an aging population and rapid advances in technology. Climate change could soon hit the banking system “by storms, droughts, wildfires, and other extreme events” making it harder for businesses to repay loans.

Rudebusch warns that crops and inundated cities have already started to hurt the economy: “Economists view these losses as the result of a fundamental market failure: carbon fuel prices do not properly account for climate change costs,” he writes. “Businesses and households that produce greenhouse gas emissions, say, by driving cars or generating electricity, do not pay for the losses and damage caused by that pollution.”

A hefty carbon tax alone wouldn’t be enough to fix the problem — what he calls an “intergenerational and international market failure.”

Since Congress has yet to take sufficient action, Rudebusch says that the Fed could, in theory, take matters into its own hands by encouraging a shift away from fossil fuels. The problem is, the Fed’s only official job is to keep inflation tame and unemployment low. And its tools are limited to buying and selling government debt to tweak interest rates.

That means it can’t help companies make a shift to a low-carbon economy by, for instance, lending them money in the bond market. By contrast, the European Central Bank has been buying “green” bonds since 2016. An ECB research note last July found that those purchases have helped boost the market for these kind of investments, helping spur environmental improvements.

Along with a report last week from the insurance industry saying that climate change could eventually make insurance unaffordable for most people, Rudebusch’s report is part of a growing body of evidence that climate change poses an existential threat to the world economy as it currently exists.

Last month, Fed chairman Jerome Powell told legislators that asking why the Fed doesn’t currently consider the risks of climate change was a “fair question.”

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Fed official: Climate change is an ‘international market failure’

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This Simple Advice Completely Changed the Way I Cook (and Eat)

Mother Jones

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In the days after reading Samin Nosrat’s new book, Salt, Fat, Acid, Heat, eating felt like a new adventure. My tongue became a detective, searching for the source of different flavors and how they mingled together, whether they balanced each other out or dragged each other down. And when it came time to cook simple meals, the raw carrots and greens in my fridge looked less intimidating: I had new tools to tame them.

Inspiring this sense of culinary liberation was precisely Nosrat’s goal with her cookbook, which eschews formulaic recipes in favor of heartfelt stories, bits and pieces of science, and time-tested nuggets of kitchen wisdom (not to mention gorgeous and witty watercolors by the prolific Wendy MacNaughton). “Anyone can cook anything and make it delicious,” asserts Nosrat, who joined us on our latest episode of Bite. The new cookbook, out on April 25, “will change the way you think about cooking and eating, and help you find your bearings in any kitchen, with any ingredients, while cooking any meal.” Lofty promises, but boy, does Nosrat deliver.

Nosrat came of age as a cook in the early 2000s at Chez Panisse, the legendary farm-to-table restaurant in Berkeley, California. In 2014, she became known as “the chef who taught Michael Pollan to cook,” after she was featured in Pollan’s book Cooked and the Netflix special with the same name. What defines her work is her focus on salt, fat, acid, and heat as the “four elements that guided basic decision making in every single dish, no matter what.” It’s not as if other chefs haven’t discovered this strategy; in fact, when she revealed her theory to a fellow cook, Nosrat writes, “he smiled at me, as if to say, ‘Duh, everyone knows that.'” But Nosrat had “never heard it or read it anywhere, and certainly no one had ever explicitly” taught her the idea.

I dabble in cooking, but I tend to rely on recipes, so I am ripe for this type of revelation. I spent an afternoon with Nosrat and witnessed her wizardry at work through an experiment with acid. Th amazing illustration above aside, acid in cooking refers to vinegar, citrus fruits, condiments, pickles, and all kinds of fermented foods, among other things. Acid alone tastes sour, but combined with other things, it heightens flavors and creates balance.

Witness what happened with some plain carrot soup. Nosrat cooked two diced onions in olive oil and butter until they were soft. She added two bunches of peeled, sliced carrots, water and salt, and simmered the mixture until the vegetables were tender. Then she subjected it to an immersion blender to make it smooth. Aside from maybe the immersion blender (and you could cool the soup and use a regular blender instead), all of these ingredients are cheap, accessible, and pretty straightforward to cook. The soup they produced was earthy and sweet; a perfectly fine office lunch, as Nosrat branded it.

What transformed it into a Chez Panisse-worthy potage was a few drops of one of the cheapest household ingredients: vinegar. Nosrat learned of this secret from a fellow cook while still working in the restaurant’s kitchen. She was skeptical of the advice—”Vinegar? Who’d ever heard of putting vinegar in soup?”—but when she obliged, she confronted sheer magic. “The vinegar acted like a prism, revealing the soup’s nuanced flavors—I could taste the butter and the oil, the onions and stock, even the sugar and minerals within the carrots.” The acid brought everything to life. As Nosrat writes: “If something I cooked and seasoned ever tasted so dull again, I’d know exactly what I was missing.”

Maddie Oatman

When Nosrat made me the carrot soup, we actually sampled three versions—one with no adornment, one with added vinegar and salt, and one with a salsa verde of cilantro, ginger, salt, and lime. To hear the full results of the taste test, you’ll have to tune in to the whole episode.

You can make similar soups with all sorts of vegetables and their acid companions; see below for Nosrat’s recipe for corn soup, which only requires four basic ingredients, plus a garnish or two. Choose the freshest ingredients you can find. And when you’re done, as she advises in Salt, Fat, Acid, Heat: “Taste the soup for salt, sweetness, and acid balance. If the soup is very flatly sweet, a tiny bit of white wine vinegar or lime juice can help balance it out.”

Silky Sweet Corn Soup

From Salt, Fat, Acid, Heat, by Samin Nosrat

Ingredients
8 to 10 ears of corn, husks, stalks, and silk removed
8 tablespoons (4 ounces) of butter
2 medium yellow onions, sliced
Salt

Directions

Fold a kitchen towel into quarters and set it inside a large, wide metal bowl. Use one hand to hold an ear of corn in place upright atop the kitchen towel—it helps to pinch the ear at the top. With your other hand, use a serrated knife or sharp chef’s knife to cut off two or three rows of kernels at a time by sliding the knife down the cob. Get as close to the cob as you can, and resist the temptation to cut off more rows at once—that’ll leave behind lots of precious corn. Save the cobs.

In a soup pot, quickly make a corn cob stock: Cover the cobs with 9 cups of water and bring to a boil. Reduce heat and simmer for 10 minutes, then remove the cobs. Set stock aside.

Return the pot to the stove and heat over medium heat. Add the butter. Once it has melted, add the onions and reduce heat to medium-low. Cook, stirring occasionally, until the onions are completely soft and translucent, or blond, about 20 minutes. If you notice the onions starting to brown, add a splash of water and keep an eye on things, stirring frequently, to prevent further browning.

As soon as the onions are tender, add the corn. Increase the heat to high and sauté just until the corn turns a brighter shade of yellow, 3 to 4 minutes. Add just enough stock to cover everything, and crank up the heat to high. Save the rest of the stock in case you need to thin out the soup later. Season with salt, taste, and adjust. Bring to a boil, then simmer for 15 minutes.

If you have an immersion blender, use it to carefully blend the soup until it is puréed. If you don’t have one, work carefully and quickly purée in batches in a blender or food processor. For a very silky texture, strain the soup one last time through a fine-mesh sieve.

Taste the soup for salt, sweetness, and acid balance. If the soup is very flatly sweet, a tiny bit of white wine vinegar or lime juice can help balance it out. To serve, either ladle chilled soup into bowls and spoon salsa over it to garnish, or quickly bring the soup to a boil and serve hot with an acidic garnish.

Variation

Follow this method and the basic formula I described above–about 2 1/2 pounds of vegetables or cooked legumes, 2 onions, and enough stock or water to cover—to turn practically any other vegetable into a velvety soup. The cob stock is unique to corn soup; don’t try to replicate it when making any of the variations. Carrot peel stock won’t do much for soup!

“Smooth Soup Suggestions” Wendy MacNaughton

Bite is Mother Jones‘ food politics podcast. Listen to all our episodes here, or by subscribing in iTunes or Stitcher or via RSS.

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This Simple Advice Completely Changed the Way I Cook (and Eat)

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Conflict in Crimea: Russia Boosts Intervention in Ukraine Prior to Referendum

Mother Jones

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This article is being updated as news breaks. Click here for the latest.

Russia has deployed 10,000 troops to multiple locations along the Ukraine-Russia border, deepening fears that the simmering crisis in the Crimean peninsula is about to escalate into full-scale warfare. In London on Friday, Secretary of State John Kerry attempted to broker a last-minute deal with Russia’s foreign minister to ratchet down the crisis, but their talks “ended inconclusively,” according to the New York Times. This weekend, voters in Crimea, an autonomous region of about 2 million in southeastern Ukraine, will vote on a referendum that would give citizens the option of asserting independence from Ukraine, or becoming part of Russia. (Remaining part of Ukraine isn’t an option.) The United States and European Union leaders have called the referendum illegal; Russia backs it. If Crimea votes to join Russia—which the Obama administration expects it to do—Russia could then use the results as justification for using force in the region. On Friday, Kerry said that Russia should respect the results of the referendum without proceeding with “back-door annexation,” which would bring international consequences. Here’s what you need to know about the current state of play. Check back frequently, since we’ll update this post as events unfold.

Western leaders are furious: On Thursday, German Chancellor Angela Merkel publicly slammed Russia’s actions, warning Russian President Vladimir Putin that if he continues intervening in Ukrainian affairs, “It will cause massive damage to Russia, both economically and politically.” She also accused Russia of breaking international law by deploying troops and warned that “the territorial integrity of Ukraine is not up for discussion.” President Obama also warned Russia that “if it continues on the path that it is on, not only us but the international community, the European Union and others will be forced to apply a cost to Russia’s violations of international law.” This week, a US Senate panel approved legislation that would impose strict sanctions—including freezing assets and denying visas—on Russians and anyone else involved in undermining Ukraine’s sovereignty. Those sanctions could be enacted as early as Monday, if Crimea chooses to secede.

If Crimea joins Russia, it could take Ukrainian gas and oil reserves with it: Russian exports account for about one-third of Europe’s gas consumption and those pipelines run smack through Ukraine. As Mother Jones‘ James West points out, “Russia has long been able to use Ukraine as an energy choke point.” On Thursday, Russia’s state-run RIA Novosti news agency reported that authorities in Crimea have been securing offshore gas and oil in the region. Crimean parliamentary speaker Vladimir Konstantinov reportedly said: “These deposits and the platform fully become the property of the Republic of Crimea…We have guarded them. These are our fields and we will fight for them.”

Putin is cracking down on Russian press: Julia Ioffe reports in The New Republic:

What began just days before the Olympics with a Kremlin attack on Dozhd, the last independent television station in Russia, has now extended to Lenta.ru, arguably the best news site in Russia. On Wednesday, the site’s editor-in-chief was fired and replaced with a Kremlin loyalist, and the whole staff quit in protest. Yesterday, the Kremlin went full-China on the Internet, the holy of holies of the Russian opposition. Using some flimsy legal pretexts, it banned access to various oppositional news sites, to the website of Moscow’s biggest radio station, and to the blog of Alexey Navalny, who is currently under house arrest.

Russia maintains that it’s not going to invade: Earlier this month, President Vladimir Putin said that Russia is not planning to annex Crimea and he would leave it up to citizens in the region to determine their future. He also said force would only be used as “a last resort.”â&#128;&#139; As recently as Friday, Russian officials have maintained that an invasion is still off the table:

But Western leaders aren’t optimistic that Putin will back down from annexing Crimea, after the referendum vote. According to the New York Times, “As of Friday, there had been no sign that President Vladimir V. Putin was prepared to take the ‘off ramp’ that the Obama administration has repeatedly offered.â&#128;&#139;” Russian foreign minister Sergey Lavrov declared on Friday that Russia and the United States “have no common vision” about the crisis.

UPDATE, March 14, 2014, 3:00 PM EDT (Dana Liebelson): The Pentagon is sending 25,000 ready-to-eat meals to Ukraine, according to the Associated Press. Two US representatives have asked President Obama to put names of Russian officials responsible for human rights abuses on the Magnitsky list, a public list of Russians created in 2012 as part of the Magnitsky Act, to punish Russian officials who have committed human rights violations. Members of the list are prohibited from entering the US or using the US banking system.

UPDATE 2, March 14, 2014, 3:35 PM EDT (Hannah Levintova): Mimicking the language used to justify their invasion of Crimea, the Russian foreign ministry has issued a warning that they reserve the right to intervene in the city of Donetsk to protect lives after a series of clashes Thursday night led to at least one death and dozens of injuries.

Donetsk is a primarily Russian-speaking city in eastern Ukraine, not far from the Russian border. The clashes began yesterday after hundreds of demonstrators chanting Pro-Russian slogans broke through a police cordon and stormed a separate group protesting Russia’s invasion of Crimea and calling for “a united Ukraine.”

Here’s video of the incident heating up:

UPDATE 3, March 14, 2014, 8:06 PM EDT (Eric Wuestewald): Another two people were reportedly killed and five injured during clashes in the eastern Ukrainian city of Kharkiv Friday. There have been conflicting reports over who was injured and who was responsible for the attack, but many are alleging armed pro-Russian groups or the Ukrainian nationalist group Right Sector may have provoked the attack.

Kharkiv is Ukraine’s second largest city after Kiev, and historically, was the country’s first Soviet capital. Like Donetsk, it’s also close to the Russian border. As a result, large pro-Russian rallies have been common, which some are predicting could become a litmus test for the future direction of the country.

Update 4, March 15, 2014, 4:15 PM EDT (Dana Liebelson): 60 Russian troops in six helicopters have crossed into Ukraine, according to Ukrainian officials, taking control of the village of Strilkove and leading to the first reports of Russian invasion outside of Crimea. The New York Times reports that troops also seized a gas plant and “the action was Russia’s most provocative since its forces took over Crimea two weeks ago.” Ukraine’s acting leader Oleksander Turchinov said: “The situation is very dangerous. I’m not exaggerating. There is a real danger from threats of invasion of Ukrainian territory. We will reconvene on Monday at 10am.”

Update 5, March 15, 4:45 PM EDT (Hannah Levintova): Earlier today, 50,000 people took part in a “peace march” in Moscow against Russia’s intervention in Crimea. Protestors marched waving both Russian and Ukrainian flags, and then gathered on the Prospect Sakharova, where massive anti-Putin rallies took place in 2012. Some protestors chanted: “The main enemy is the Kremlin. No to fascism, no to imperialism.”

Here’s a Russian-language newscast showing the march:

Former US ambassador to Russia Michael McFaul, who stepped down from his post in February, wrote a statement today about the situation in Ukraine on Facebook. Here’s an excerpt:

Putin’s recent decisions represent a giant step backwards. Tragically, we are entering a new period with some important differences, but many similarities to the Cold War. The ideological struggle between autocracy and democracy is resurgent. Protection of European countries from Russian aggression is paramount again. Shoring up vulnerable states , including first and foremost Ukraine, must become a top priority again for the US and Europe. And doing business with Russian companies will once again become politicized. Most tragically, in seeking to isolate the Russian regime, many Russians with no connection to the government will also suffer the effects of isolation. My only hope is that this dark period will not last as long as the last Cold War.

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Conflict in Crimea: Russia Boosts Intervention in Ukraine Prior to Referendum

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McDonald’s will shift (very slowly) to sustainable beef

McDonald’s will shift (very slowly) to sustainable beef

rob_rob2001

We aren’t suggesting that you try this, but should you venture into a McDonald’s a few years from now and order a hamburger, some of the beef you end up eating may have come from a sustainably raised cow.

The fast-food giant’s first planned purchases of frozen beef patties from “verified sustainable sources” will begin in 2016, the company announced today. That’s an important step because McDonald’s is a huge international dealer in beef — it sells more than $5 billion a year worth of Big Macs and less iconically branded hamburgers. Here’s more from Joel Makower at GreenBiz:

“Our vision is to buy verifiable, sustainable beef in the future for all of our beef,” said Bob Langert, McDonald’s vice president, global sustainability. “We have achieved internal alignment and energy around that aspirational goal, which is a big task,” he told me during a November visit to the company’s headquarters in Oak Brook, Ill.

Langert says McDonald’s isn’t yet ready to commit to a specific quantity it will purchase in 2016, or when it might achieve its “aspirational goal” of buying 100 percent of its beef from “verified sustainable sources.” (The company will only say that, “We will focus on increasing the annual amount each year.”) Realistically, it could take a decade or more to achieve the 100-percent goal.

But what is sustainable beef, exactly? (Is it ground off the hide of an ever-suffering but immortal cow, perhaps?) There is no clear definition, so McDonalds is working with other food giants and the World Wildlife Fund to try to figure that out. They’re collaborating through a group known as the Global Roundtable for Sustainable Beef. Again from GreenBiz:

The group developed six draft principles that the membership is currently considering, along with multiple criteria within each of those principles. The principles cover people (human rights, safe and healthy work environment), community (culture, heritage, employment, land rights, health), animal health and welfare, food safety and quality, natural resources (ecosystem health) and efficiency and innovation (reducing waste, optimizing production, economic vitality).

This is part of a bigger push by McDonald’s to be more green and socially responsible:

Beef isn’t the only sustainability issue the company is looking at. For years, the company has been addressing the environmental and social impacts of its supply chain, one ingredient at a time. The company’s Sustainable Land Management Commitment, unveiled in 2011, requires suppliers to gradually source food and materials from sustainably managed land, although there are no specific timelines, and it is initially focusing on beef, poultry, fish, coffee, palm oil and packaging. Notably missing for now are pork, potatoes and other produce.

There’s plenty more that is notably missing, including a willingness to pay workers a living wage.

Still, the beef shift should bring some real environmental and climate benefits. Watch for more on that from GreenBiz later this week, in parts 2 and 3 of its series on McDonald’s and beef.


Source
Exclusive: Inside McDonald’s quest for sustainable beef, GreenBiz

John Upton is a science fan and green news boffin who tweets, posts articles to Facebook, and blogs about ecology. He welcomes reader questions, tips, and incoherent rants: johnupton@gmail.com.

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McDonald’s will shift (very slowly) to sustainable beef

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