Mother of All Bailouts

Some of you have been asking where I've been. Well, besides this being my busiest season of the year between preserving the harvest and planting the fall garden, I've been sidelined from blogging by a brief trip to the beach and an ongoing obsession with the coming election and recent economic crisis. Not wanting to turn this blog into a place of political rants, knowing that I have readers of different political persuasions just as I have good friends in real life of different political persuasions, I have opted to remain silent about my own political leanings.

But silent I can remain no longer, as I believe Secretary Paulson's bailout plan has far reaching implications for all Americans regardless of political party. I don't pretend to have any answers, but I recognize a bid for power when I see one, and this my friends—Paulson's good intentions aside—is a bid for boosting the power of the executive branch of government via the Department of the Treasury in a way that shuts out both the legislative and judicial branches of government in very, very frightening ways, bypassing the system of checks and balances that our forebears so prudently put into place in the founding of America.

Yet another backroom, weekend deal will be struck and announced perhaps tonight, but this time the administration is seeking congressional approval that will legitimize this unprecedented expansion of executive power by rushing legislation through congress by the end of the week. And please, do not forget, that as much as we may trust Paulson, his motives and intentions, he serves in the cabinet of George W. Bush, a tenure which will expire in just a few months. That we do not know who will inherit these broad-based powers should be enough to motivate us all, regardless of political party, to write, call, email our congressional representatives and urge them not to rush this plan as it stands through congress.

That is my non-partison pitch on the problems with this legislation, but I also believe that the argument for helping Wall Street with what Paulson and Bush call clean and quick legislation without any provisions for helping the taxpayers of America who are being asked to foot this bill is just another example of trickle down economics at play, where taxpayers are being bullied by fear-based tactics into believing that helping the fat cats is best for us as well... much better and cheaper than the alternative, we are being told on just about every news venue on television.

Yet, keep in mind, there are no guarantees that this plan will even work. Wall Street could still crumble, our jobs and retirement funds could still be at risk. But, what we are guaranteed is that our dollar will buy less because this plan, as Ron Paul has argued, is based on inflationary tactics of printing more money and taking on more government debt, guaranteed to result in devaluation of the dollar.

While there are republicans, democrats, and libertarians alike raising concerns about this plan for various reasons, regardless of the politics behind it I urge folks not to stand by and allow this plan to be railroaded through congress as it stands.

Of course none of this even begins to address the problems behind re-establishing the "flow of credit" necessary to continue to fuel the unsustainable consumerism that makes up the U.S. economy... but that's a different rant.

But don't just take my word for it, here are some links that feature multiple opinions to get you started if you're not already obsessively following the story like I am. I'm also including a copy of the email I've sent to my representatives as well as a copy of the plan being considered so folks can read the language for themselves.

The Arena at Politico.com

The Automatic Earth: Debt Rattle September 21, 2008

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My letter, for what it's worth:

Dear Representative _____ and Senators _______ and ________,

I strongly urge you NOT to support the $700 billion bailout plan proposed by Secretary Paulson as is. Any Wall Street bailout that falls on the taxpayers of America MUST also include provisions that directly help those taxpayers, not just the financial institutions on Wall Street whose predatory lending practices rest at the heart of the current economic crisis.

I feel strongly that any kind of bail out plan must include help for those Americans currently under or under threat of foreclosure, must include some kind of stipulation against rewarding the financial management of bailed out institutions with golden parachutes, must include some kind of congressional oversight and possible interventions during the 2 year power tenure for the Treasury. I am extremely concerned by the idea of granting overarching powers to the Treasury together with an unprecedented amount of money and strongly urge against that action even with the two year stipulation. Lack of oversight and checks and balances are part of the problem and should not be made part of the solution.

Along those same lines, I am dismayed that the solution to prop up Wall Street depends upon more reckless government spending—deficit spending—rather than fiscal responsibility. Our government is modeling the behavior from both Wall Street and Main Street that got us into this trouble in the first place. The idea that keeping the credit flowing to enable further profligate spending is the answer to our current economic crisis is both irresponsible and wrong headed.

Respectfully,

Danielle ________

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Text of plan:

LEGISLATIVE PROPOSAL FOR TREASURY AUTHORITY
TO PURCHASE MORTGAGE-RELATED ASSETS


Section 1. Short Title.

This Act may be cited as ____________________.

Sec. 2. Purchases of Mortgage-Related Assets.

(a) Authority to Purchase.--The Secretary is authorized to purchase, and to make and fund commitments to purchase, on such terms and conditions as determined by the Secretary, mortgage-related assets from any financial institution having its headquarters in the United States.

(b) Necessary Actions.--The Secretary is authorized to take such actions as the Secretary deems necessary to carry out the authorities in this Act, including, without limitation:

(1) appointing such employees as may be required to carry out the authorities in this Act and defining their duties;

(2) entering into contracts, including contracts for services authorized by section 3109 of title 5, United States Code, without regard to any other provision of law regarding public contracts;

(3) designating financial institutions as financial agents of the Government, and they shall perform all such reasonable duties related to this Act as financial agents of the Government as may be required of them;

(4) establishing vehicles that are authorized, subject to supervision by the Secretary, to purchase mortgage-related assets and issue obligations; and

(5) issuing such regulations and other guidance as may be necessary or appropriate to define terms or carry out the authorities of this Act.

Sec. 3. Considerations.

In exercising the authorities granted in this Act, the Secretary shall take into consideration means for--

(1) providing stability or preventing disruption to the financial markets or banking system; and

(2) protecting the taxpayer.

Sec. 4. Reports to Congress.

Within three months of the first exercise of the authority granted in section 2(a), and semiannually thereafter, the Secretary shall report to the Committees on the Budget, Financial Services, and Ways and Means of the House of Representatives and the Committees on the Budget, Finance, and Banking, Housing, and Urban Affairs of the Senate with respect to the authorities exercised under this Act and the considerations required by section 3.

Sec. 5. Rights; Management; Sale of Mortgage-Related Assets.

(a) Exercise of Rights.--The Secretary may, at any time, exercise any rights received in connection with mortgage-related assets purchased under this Act.

(b) Management of Mortgage-Related Assets.--The Secretary shall have authority to manage mortgage-related assets purchased under this Act, including revenues and portfolio risks therefrom.

(c) Sale of Mortgage-Related Assets.--The Secretary may, at any time, upon terms and conditions and at prices determined by the Secretary, sell, or enter into securities loans, repurchase transactions or other financial transactions in regard to, any mortgage-related asset purchased under this Act.

(d) Application of Sunset to Mortgage-Related Assets.--The authority of the Secretary to hold any mortgage-related asset purchased under this Act before the termination date in section 9, or to purchase or fund the purchase of a mortgage-related asset under a commitment entered into before the termination date in section 9, is not subject to the provisions of section 9.

Sec. 6. Maximum Amount of Authorized Purchases.

The Secretary’s authority to purchase mortgage-related assets under this Act shall be limited to $700,000,000,000 outstanding at any one time

Sec. 7. Funding.

For the purpose of the authorities granted in this Act, and for the costs of administering those authorities, the Secretary may use the proceeds of the sale of any securities issued under chapter 31 of title 31, United States Code, and the purposes for which securities may be issued under chapter 31 of title 31, United States Code, are extended to include actions authorized by this Act, including the payment of administrative expenses. Any funds expended for actions authorized by this Act, including the payment of administrative expenses, shall be deemed appropriated at the time of such expenditure.

Sec. 8. Review.

Decisions by the Secretary pursuant to the authority of this Act are non-reviewable and committed to agency discretion, and may not be reviewed by any court of law or any administrative agency.

Sec. 9. Termination of Authority.

The authorities under this Act, with the exception of authorities granted in sections 2(b)(5), 5 and 7, shall terminate two years from the date of enactment of this Act.

Sec. 10. Increase in Statutory Limit on the Public Debt.

Subsection (b) of section 3101 of title 31, United States Code, is amended by striking out the dollar limitation contained in such subsection and inserting in lieu thereof $11,315,000,000,000.

Sec. 11. Credit Reform.

The costs of purchases of mortgage-related assets made under section 2(a) of this Act shall be determined as provided under the Federal Credit Reform Act of 1990, as applicable.

Sec. 12. Definitions.

For purposes of this section, the following definitions shall apply:

(1) Mortgage-Related Assets.--The term “mortgage-related assets” means residential or commercial mortgages and any securities, obligations, or other instruments that are based on or related to such mortgages, that in each case was originated or issued on or before September 17, 2008.

(2) Secretary.--The term “Secretary” means the Secretary of the Treasury.

(3) United States.--The term “United States” means the States, territories, and possessions of the United States and the District of Columbia.

Birth Announcement

Our sow, Maya, gave birth to 9 piglets last night, unaided on pasture. She's such a good homestead hog—I really couldn't ask for more. There are a couple of small ones, but all were up and walking around this morning and look to be strong and vigorous. Big Boy, our boar, is in with them and seems to be handling it all in stride, keeping an eye on everything but not being aggressive toward the piglets or aggressive toward us.

Independence Days Weeks 16 & 17

Yea, I missed last week's post, so I figure I'll do a combined one today. Last week was kind of a holding pattern, so most of what's gotten accomplished has been this past week.

Four months of the Independence Days challenge, and I can finally remember all the categories in order without looking. What I still can't remember is whether I did something this week or last. Thank goodness for a blog record! Now if I were just more reliable about writing in my journal. A constant falling off the wagon for me... *sigh* I'm so undisciplined.


Plant:

A fill-in flat of swiss chard, 7 top turnip, and spinach that will help me fill gaps in the direct seeded beds. I also planted three varieties of endive and four lettuce varieties.


Harvest:

lettuce, onions, tomatoes, summer and winter squash, egg plant, peppers, beans, corn, basil, rosemary, thyme, chives, eggs, milk, pork.


Preserve:

24 lbs of grape tomatoes in the dehydrator, canned 1/2 bushel of peaches, made butter and two kinds of cheese.


Store:

raisins, garbanzo beans, tortilla chips, refried beans.



Prep:

Washed three Navajo-Churro sheep fleeces, and we're now learning how to card the wool. Also helped the girls learn to knit, which I can't do because of my wrists, but they seem to be enjoying it immensely. My guess is this winter will be filled with knitting and felting.



Manage:

After unsuccessfully trying to control the aphid/ thrip/ cricket damage in the high tunnel with sticky traps and insecticidal soap, I ended up spraying neem oil this week to try to get things under control in time for fall and winter crops in there. A couple weeks back I'd done a lot of cleaning out, which really helped reduce hiding places. I'd been allowing some things to go to seed in there, which has the down side of being a haven for pests.

At any rate, I was able to hand pick the remaining praying mantids before spraying, and I sprayed early in the morning before most pollinators would be out and about. The neem seems to have really helped a lot, and it looks like I'll be able to harvest some spinach for CSA this coming week. Yay!

I also finally finished laying my irrigation lines and got them up and running. All the rain we've gotten this season has spoiled me, and this is the first I've really needed to think about it. Of course, we're getting dry and crunchy now that it's August, but it's been a cool, wet year, especially compared to last. Not only are the established plants starting to need the water, but also my seeds and seedlings desperately need it to get established for fall. I'm loving the drip tape. The cool thing about it, too, is that I can use it to deliver fish emulsion directly to the plants.



Cook:

This was my first time canning peaches. I got 27 pints from a 1/2 bushel, packed in a light syrup. Hopefully the kids will like these and not complain that they're different from the store-bought.


Add:

CSA delivery to 11 families. Bought peaches from local orchard for canning.


Reduce:

Farming and self-sufficiency take a tremendous amount of resources, as I've discussed other places. Figuring out ways to produce our own while reducing the amount of resources we use to do so is an ongoing challenge for me. In particular, the home dairy takes quite a bit of water, from the water necessary to the cow to the water necessary to clean equipment to the water necessary to rinse butter. Lots of water. We're on a well here, so there's no good way for me to measure our water usage, and although there's no shortage of water, the principle behind conservation is a sound one. So I find myself constantly looking for ways to eliminate waste and streamline the efficiency of my routine towards reduction. I've been able to reduce much of my water usage by reusing rinse water, for instance, as well as finding ways for sanitizing rinses to be used multiple times.


Learn:

Learning all about natural deworming, as I've been deworming our piglets to ensure their health and weight gain. I've had them on a week of treatment where they receive 2 oz of garlic powder, 1/2 oz of cayenne pepper, and 1/2 oz of thyme mixed into their milk each morning. There have been some studies as well as anecdotal evidence on the efficacy of garlic as an anthelmintic, along with both cayenne and thyme. I have wormwood growing here, but it's a very powerful herb, which I'm hesitant to use. Caution, too, should be used with regard to tansy (listed in the first link below), which can be poisonous to livestock in large quantities.

I'm going to see if I can also get my sheep to eat the garlic powder. They're completely grass fed, so I'm not sure they'll go for it. The piggies, however, don't mind the flavored milk one little bit. Big surprise. Picky pigs they are not.

Alternative dewormers for ruminants

Dutch abstract on herbal swine dewormers

Garlic as sheep dewormer

Garlic as pig dewormer

One Local Summer: Week 12

Rotisserie chicken, fingerling potatoes with garlic butter, heirloom tomatoes stuffed with onion, garlic, basil and chevre cheese.

All zero mile. Not too shabby, and pretty darned tasty, too.

Yessir, yessir, three bags full

I finally washed my fleeces (fleeci?) this week. I broke down and did it in the washing machine because I hadn't come up with a better plan, and I didn't want them to get infested out in the garage. I don't figure three fleeces will kill the septic tank, and hopefully by this time next year I'll be able to procure a cast iron tub on freecycle or craigslist.

Here I am starting to skirt the fleece, which basically means cutting off all the yucky or short bits:

This is Esther's fleece, our light-haired sheep, though from what I understand, all the sheep will become lighter in color as they get older. At least their outside coat will, not the underside wool, which will hold its present color. Esther has gray wool, beautifully flecked with cream.

Here's the fleece after soaking in super hot water with ~1/4 cup of Dawn dishwashing liquid and rinsed twice:


Here it is drying on the trampoline:



And here is Tabby, wishing I hadn't sewn the opening shut because it looks so inviting:

Dead Zones

A recent article about the growing number of dead zones around the world over the past two years demonstrates that just because we can grow more food doesn't mean we should. Here's one more argument for local, sustainable farming practices that don't rely on heavy fertilizer applications.

"We're not finding enough oxygen to support life, aquatic life," said scientist Lora Pride aboard the Pelican, the Louisiana Universities Marine Consortium research vessel that studies the Gulf.

CNN traveled aboard the ship August 14-15 as consortium researchers sent sensors to the bottom of the sea, scooped up sediment and collected water samples for analysis at nine testing stations in the Gulf.

As an oxygen meter sank far below the Pelican, Pride pointed to an onboard computer screen displaying the meter's findings in real time.

"This green line is the oxygen right here and at the bottom it's reading less than 2 milligrams per liter," Pride said.

Six of the nine stations revealed such oxygen-deprived, hypoxic water, compared to a normal reading of 6 milligrams per liter.

As Pride and her crew aboard the Pelican monitored the Gulf waters, the journal Science last week published a study that reveals there are more than 400 dead zones around the globe, double the number found by the United Nations two years ago.

One of the major dead zones is in the Gulf of Mexico. It is 8,000 square miles, nearly the size of New Jersey, according to the marine consortium's annual measurement completed in July.

"There's no oxygen in the water for shrimp, crabs, fish to live," said Nancy Rabalais, executive director of the consortium.

Fish and shrimp "can sense that and they start to move out of the area. Otherwise they would die. The animals that still remain in the sediments have to keep breathing. There is not enough oxygen and eventually they will die off," Rabalais said.

Scientists have been studying the Gulf's dead zone for about 20 years, although its existence has been known for decades. So why is oxygen disappearing from fishing waters in the Gulf of Mexico? The answer, scientists say, is found hundreds of miles to the north, up the Mississippi River in corn country.

Farmers in Iowa and across the Midwest use tons of nitrogen and phosphorous to make their cornfields more productive, which allows the farmers to take advantage of high corn prices resulting from growing demand from ethanol factories and developing countries.

Rain always causes some fertilizer to run off farmland, but this summer's historic flooding caused even more runoff into rivers that flow into the Mississippi.

"That's the primary source of the nutrients that go to the Gulf of Mexico," said Rabalais. "And so the size of the low-oxygen zone has increased in proportion to these nutrients reaching the Gulf."

Fertilizer flowing into the Gulf of Mexico triggers an overgrowth of microscopic algae, which eventually die and fall to the bottom.

"When they die, they decompose, and decomposition requires oxygen," said Pride. "So these things will fall to the bottom and as they decompose they consume oxygen."

So much oxygen is taken from the water that slow-moving sea life like clams, small crabs, starfish and snails suffocate....

With demand for corn growing, scientists say the dead zone could expand in coming years.

And the winner is...

Drumroll please...

My lovely assistant upon waking up in the morning, complete with blanky:



But what a sport, she was happy to help out and choose a winner at random from the hat:



This is the "official" hat in our home for choosing who is "it" first in games or who gets the first turn, so in true olympic spirit, we used only state of the art equipment for the drawing.

And the winner is...



Congratulations Carolyn!

Email me with your snail mail at danielle at touch the earth farm dot com, and we'll get your earthy package in the mail.