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Friday, March 3, 2006

A sticker for the Pensacola, Florida folk-punk band This Bike Is A Pipe Bomb was found on a bike near the Ohio University‘s Oasis restaurant by a university police officer.

The university police, who were unaware of the band’s existence, summoned the Columbus police bomb squad, who destroyed the bike to ensure that there was no bomb inside. The university later discovered their error.

The bike’s owner, a graduate student, has been charged with “inducing panic,” a misdemeanor. He has been released and is due to appear in court March 13 on the charge.

The band’s label, Plan-It-X Records, has not yet commented on the incident. The font and style of the sticker are common among such humorous stickers.

Monday, April 6, 2009

Leaders and central banks in Russia, China, Malaysia, Indonesia, Thailand, and Kazakhstan have called for an international currency system.

Speaking on April 1 in advance of the G-20 summit in London, Russian president Dmitry Medvedev argued that the international finance system needed a “new construction” including “new currency systems”, saying that such a new system could be the purpose of a revamped IMF and World Bank. The IMF was originally founded in 1946 as the overseer of the Bretton Woods system, which from its founding until the 1970s tied the western world’s currencies to the US Dollar, which was in turn backed by gold. Russia’s proposal was for the new currency to serve as a reserve currency, one which would take the place of the dollar, euro, and other heavily-traded currencies as an international standard of exchange.

Medvedev’s comments are a reversal of Russian position from a lukewarm response following a looser outline for a worldwide currency by Kazakhstani president Nursultan Nazarbayev. On March 11, Nazarbayev suggested the establishment of the “acmetal”, a portmanteau of “acme” and “capital“, as a reserve currency replacing the ruble in international transactions, first for Central Asia and then worldwide. 1999 Economics Nobel laureate Robert Mundell, speaking to the Daily Telegraph, endorsed the idea, saying “It would be a very good idea if the G-20 took that idea up in London”.

2001 Nobel economics prize winner Joseph Stiglitz, meanwhile, said the new currency could come about quickly if it was based on an expansion of the IMF’s already established system of Special Drawing Rights, units of exchange used by the IMF which already have some of the features of currency. Stiglitz argued that, as the US dollar has become the standard global reserve currency, it has inadvertently created a system which hurts the world economy. “It’s a net transfer, in a sense, to the United States of foreign aid,” he argued, reasoning that when other countries purchase US dollars in order to use them on international markets (such as for the buying and selling of petroleum), they effectively give the US a zero-interest loan — sometimes at times when they can least afford it. Stiglitz made his comments as head of a United Nations panel of economists giving recommendations to address the global financial crisis.

In the weeks leading up to the G-20 conference, the People’s Republic of China also began discussing a new system for reserve currencies. In a March 23 speech, Zhou Xiaochuan, governor of the People’s Bank of China, endorsed a new reserve currency, saying “the desirable goal of reforming the international monetary system, therefore, is to create an international reserve currency that is disconnected from individual nations and is able to remain stable in the long run, thus removing the inherent deficiencies caused by using credit-based national currencies.” Zhou went on to endorse the expansion of the SDR system in the long-term creation of a reserve currency government by the IMF. While Zhou did not mention the US dollar specifically, analysis by Qu Hongbin, chief China economist for HSBC, for the Financial Times said that the speech “is a clear sign that China, as the largest holder of US dollar financial assets, is concerned about the potential inflationary risk of the US Federal Reserve printing money”.

China holds $740 billion as assets; inflation in the US economy, which has been low in recent years, would directly cause those assets to lose value.

While the Chinese government has engaged in currency swaps with several other growing economies, such as South Korea, Argentina, Malaysia and Indonesia, the Chinese Yuan cannot be used itself as a reserve currency as it cannot be freely traded on the global market.

The Chinese-Russian proposal was not entered onto the agenda at the G-20 meeting itself. Nonetheless, British Prime Minister Gordon Brown said that the G-20 was open to considering the proposal if and when a detailed one is presented. United States President Barack Obama, meanwhile, endorsed the continuation of dollar supremacy, saying that the US dollar is “extraordinarily strong” and arguing that its strength was the result of the intrinsic stability of the United States economic and political system; US treasury secretary Timothy Geithner had, the week before, made comments that while he supported an expansion in the SDR mechanism he rejected the idea of a global currency. Rather than change the role of SDRs, the G-20 meeting instead added $250 billion in support to the fund backing SDRs.

After the G-20 conference ended on Thursday, Malaysia’s The Star BizWeek reported that the central banks of Indonesia, Malaysia and Thailand had endorsed the Chinese proposal. All three countries have close economic ties with China and suffered heavily from the collapse of their currencies in the 1997 Asian Financial Crisis; the sudden growth in the value of the US dollar relative to those countries’ native currencies sharply increased debt in Southeast Asia’s economies, leading to a wave of bankruptcies.

International reaction from other economies has been mixed and guarded. Luiz Inacio Lula da Silva, President of Brazil, said that the currency proposal was important to discuss but did not give extensive comment. And while UPI reports that India supported the SDR proposal at the G-20 conference, the Indian Press Trust quotes Indian Prime Minister Manmohan Singh as saying last month, “It is too early to talk about common currency.”

Calls for an independent global reserve currency are not new. In 1944, John Maynard Keynes proposed the “bancor“, a unit like the SDR supported by a basket of commodities. Keynes’ idea was rejected and the US dollar took the equivalent role under the Bretton Woods system. Keynes proposed that the bancor system would be reinforced by a tax on participating countries’ current accounts, the difference between their exports and their imports, in order to encourage balanced trade. Meanwhile, monetary unions have become more popular since the end of the gold standard, with most of the European Union now trading the euro, and several countries outside the EU using it as a de facto currency; five West African countries adopting the eco at the end of this year; and the African Union planning to introduce the afro in 2028. Proposals for a North American currency union based around the so-called “amero” have been frequently discussed as the focus of conspiracy theories in the United States, but none of the US, Canada or Mexico have actively pursued the establishment of any such monetary union, however the dollar is the currency of several Latin American countries.

Wednesday, March 1, 2006

The Sizzler Restaurant franchise in Australia has closed the salad bars in all of its 29 restaurants across the country, after rat poison was discovered in food at two of the chain’s outlets in Brisbane. Self-serve salad bars at the restaurants have been closed in response to a sabotage scare. Sizzler Australia Managing Director Bo Ryan said customer safety was always the restaurant chain’s first priority.

A media release on the Sizzler website states: “As a precautionary measure and because customer health and safety is our number one priority, we have temporarily closed salad bars in all Sizzler Restaurants. We sincerely apologise for this major inconvenience.”

Police said green pellets were found in pasta sauce at a Sizzler restaurant in Brisbane’s inner-west on January 20. A regular customer at the Toowong restaurant told Sizzler staff she had found something odd in her bolognese pasta sauce. Similar pellets were found in a vegetable soup at Sizzler’s Myer Centre outlet in the city about 5pm on Saturday.

Bo Ryan said the decision to close all of its Australian salad bars was made after laboratory tests confirmed that the substance in the pasta sauce was indeed rat poison. He said trainees who tasted the poisoned soup had been been taken to hospital by ambulance as a precaution, but had suffered no ill effects.

Queensland Police Inspector Bob Hytch said no one had been reported ill as a result of eating the poisoned food and there had been no extortion threats. Sarah Kenny, a university student, said she and two friends had eaten spaghetti bolognese that “tasted really weird”.

“The inconvenience to customers and the economic impact on the company and its 1600 employees will be severe, but as a family restaurant our first priority is the welfare of our diners,” said Bo Ryan. “Steak and seafood and a limited range of salads would continue to be available.” He hopes that customers will understand the action was taken in their best interests, and that “they can be patient while temporary product security procedures are developed and implemented in all restaurants.”

The 29 Australian Sizzler Restaurants, along with 107 Kentucky Fried Chicken outlets are operated by the Collins Foods Group, a wholly owned subsidiary of Worldwide Restaurant Concepts Inc. Mr Ryan said Sizzler was assessing measures which could be taken to prevent a recurrence of the sabotage. “As soon as new measures are introduced, over and above existing strict protocols, we will reassess the situation,” he said.

The time is 18:00 (UTC) on August 17th, 2006, and this is Audio Wikinews News Briefs.

Thursday, July 13, 2006

As many as eight people have been injured after two cable cars collided at the Nevis Range near Fort William in Scotland.

Two RAF helicopters, an air ambulance, four ambulance crews, police, fire brigade and a mountain rescue team are among those present. Police have confirmed that three people have been injured, including one child. Injuries include broken legs, head and chest injuries. The Scottish Ambulance Service have reported that up to seven people had been thrown on to the hillside. A reporter at the scene said one car near the top of the mountain had slid down a cable, hitting another and then one of the cars fell to the ground.

Northern Constabulary have stated “It’s understood that two gondolas would appeared to have collided and a number of casualties have been reported. The local mountain rescue team, Inverness helimed and other air support are in attendance to remove casualties”.

The Doppelmayr gondola system is made up of eighty six-seat closed cabins running on a continuous 4.6km steel cable.

Saturday, May 12, 2007

An object that fell through the roof of a New Jersey home in January was not a meteorite, according to Jeremy Delaney, a geologist at Rutgers University. Instead, it appears the object was space junk or orbital debris.

“Basically, it’s a piece of stainless steel. There’s huge amounts of material that have been left by the various space programs of the world,” said Delaney.

The meteorite shaped object was not from a naturally occurring substance and had a silver like reflection. It weighed about the same as a small can of soup, 13 ounces (about 370 grams), but was no bigger than a golf ball.

Earlier during the incident, scientists from Rutgers examined the object visually along with police who were at the scene, and determined it was a meteorite. But further tests by geologists confirmed that it was not a meteorite, but probably a metal piece from a rocket or satellite. They had earlier thought it was made of iron.

“That’s the nature of science. If the conclusion from the test says it’s not a meteorite, then it’s not a meteorite. We have to move forward,” said Srinivasan Nageswaran, a member of the family that found the object.

Thursday, July 14, 2005

First Active has become the first financial institution to offer 100% mortgages in the Republic of Ireland. The bank previously offered 100% financing to professionals in finance and medicine, but is now to offer this product to anyone who can afford to meet the repayments.

The development is a huge boost for first time home buyers who have been struggling to get on the Irish property market in recent years due to the rapid increase in house prices. A typical first time buyer in Dublin with 92% financing would normally have to put down a deposit of €20,000-€30,000 in cash, but now have the option to produce no deposit.

First Active has said that 100% mortgages will be available across its entire range of mortgage products.

Note however that this is not necessarily an entirely positive development.

The United States and most of Europe have experienced a housing price bubble in recent years. A bubble occurs when buyers purchase a property not because its price is appropriate for its actual value but because they expect the price to significantly rise in the short term permitting resale with a profit.

In other words, the prices people pay for properties becomes divorced from the real value of the property; the purchase is speculative and depends purely upon the expectation that people will continue to buy properties in this way (e.g. without proper consideration of their real value).

The terrible weakness in this is that when the market corrects itself and prices fall to a level where properties are being priced at their actual realistic value, anyone holding a property loses a great deal of money, since the price they paid does not reflect the actual realistic value of the property.

This kind of shock to the housing market is extremely undesirable. Significant write downs in the value of property often significantly depress the economy as a whole.

Less than 100% mortgages force buyers to invest a significant amount of money in the act of purchasing their house, which tends to discourage purely speculative purchasing, thus helping to mediate house price bubbles.

With 100% financing, anyone who can meet repayments can speculatively purchase a property. This naturally encourages pricing bubbles.