• It is increasingly conceivable that Greece may leave the euro zone, not just because of its own political dysfunction but also because the consequences of such an exit for the rest of the Europe and the global economy no longer seem quite so scary.

Image source
• The more pressing question, as François Baroin, the departing French finance minister, went on to say, regards the consequences for the other struggling nations at the bottom end of Europe. He warned that the departure of any member could spread “doubt and distrust” in the minds of foreign investors over the health of the euro. Stock markets have declined worldwide on fears that Europe will unravel.
• American investment funds and banks have …. sharply reduced their investments in Europe.
• But the (American) domestic economy remains vulnerable to disruptions in Europe. » The full New York Times article - By Binyamin Appelbaum - May 17, 2012.

---

So what does ail Europe?

• The truth is that the story is mostly monetary. By introducing a single currency without the institutions needed to make that currency work, Europe effectively reinvented the defects of the gold standard — defects that played a major role in causing and perpetuating the Great Depression.

• More specifically, the creation of the euro fostered a false sense of security among private investors, unleashing huge, unsustainable flows of capital into nations all around Europe’s periphery. As a consequence of these inflows, costs and prices rose, manufacturing became uncompetitive, and nations that had roughly balanced trade in 1999 began running large trade deficits instead. Then the music stopped.

• If the peripheral nations still had their own currencies, they could and would use devaluation to quickly restore competitiveness. But they don’t, which means that they are in for a long period of mass unemployment and slow, grinding deflation. Their debt crises are mainly a byproduct of this sad prospect, because depressed economies lead to budget deficits and deflation magnifies the burden of debt. » The full New York Times commentary - By Paul Krugman - February 26, 2012.

---

Bernanke pursued new stimulus last year to create jobs, defying critics who said his record accommodation would spark inflation.

• Federal Reserve Chairman Ben S. Bernanke’s focus on growth “has helped signal to the markets that if we have temporary blips in inflation, the Fed isn’t going to go crazy and try to stabilize the price level at any cost to the economy,” Mark Gertler, a professor at New York University who has co-authored research with Bernanke. Gertler said.
• Now, with U.S. growth accelerating and the euro area on the brink of a second recession in three years, Bank of England Governor Mervyn King and European Central Bank President Mario Draghi are showing they also are willing to spur their economies while inflation exceeds their goals. » The full Bloomberg article - By Caroline Salas Gage - January 23, 2012.

---

A crucial mechanism linking financial players in the United States to the problems in Europe involves credit default swaps,

• those insurance-like products that did so much damage during the 2008 financial crisis. (Think American International Group.)
• Billions of dollars in swaps have been written on sovereign debt, guaranteeing that those who bought the insurance will be paid if Greece or other countries default.
• But since these instruments trade in secret, investors don’t know who would be on the hook — as A.I.G. was in its ill-fated mortgage insurance — should a government default or a bank fail.
• Measuring the loans made to European banks against their deposits tells the story. Across Europe, according to Autonomous Research, loans to banks exceed their deposits by 6 percent. Among French banks, loans exceed deposits by 19 percent. In Greece, they swamp deposits by 32 percent.

• In the United States, by contrast, banks are borrowing less than 90 percent of their deposits, on average.
• This is why it is becoming such a problem for European banks that so many short-term lenders are declining to renew when loans come due. Money market funds, traditionally big investors in short-term paper issued by European banks, have been reducing exposures. » The full New York Times article - By Gretchen Morgenson - Published: September 17, 2011.

---

The history of nearly all markets is that customers suffer if dealers are able to keep them ignorant of what is actually going on.

As Mary L. Schapiro, the S.E.C. chairman, put it, in the old system “the market participants with the best access to the markets” — New York Stock Exchange specialists and Nasdaq market makers — “were subject to significant trading obligations that were designed to promote fair and orderly markets and fair treatment of investors.” “These traditional obligations,” she added in a speech to the Economic Club of New York this month, “have fallen by the wayside.
More transparency is needed, and it will take rules to accomplish that. But some of the other rules being considered might not be necessary if the S.E.C. took what might be called a “principles-based approach.” » The full New York Times article - By Floyd Norris - Published: September 23, 2010

• Declines in index futures convinced traders a “cataclysmic event” was pushing down equities on May 6, leading them to abandon the market and triggering the biggest crash in a quarter century, federal regulators found. » the full Bloomberg article - By Nina Mehta and Whitney Kisling - Oct 2, 2010
• No such trades happened at the New York Stock Exchange, which had rules to slow down trading and let someone with a brain look first when trading got out of hand.
  Much of Wall Street wanted the S.E.C. to penalize the Big Board for slowing things down, which they thought was unconscionable in a modern world where trades should be executed within milliseconds of being sent to a market. » The full New York Times article - By Floyd Norris - Published: September 23, 2010

---

• The New York Times - Learning Network - Examining Key World Economies and Comparing Their Current Volatility -
  Overview: Students review key economic terms and ideas necessary for understanding world economies. They then research the economies of countries in the Group of 8 (20) and present how their economies have changed over the past five years and how the relationships among these countries affect each other in light of world events. Go to this Economy and Society Lesson.
• The New York Times - Learning Network - A Plan for Recovery -
  Overview: Students examine the "who, what, where, when, why and how" of the proposed stimulus plan for the U.S. economy; they then write their own proposal outlining how stimulus funds might benefit their community. Go to this Economy and Society Lesson.
• The New York Times - Learning Network - Exploring the Impact of Keynesian Economics During a Recession -
  Overview: Students define and examine the role of Keynesian economics during recessions and depression, then write a memo to President Obama advising him on how to put Keynesian principles into practice. Go to this Economy and Society Lesson.

• Soon after lawmakers finished work on the nation’s new financial regulatory law, a team of JPMorgan Chase lobbyists descended on Washington. Their goal was to obtain special breaks that would allow banks to make big bets in their portfolios, including some of the types of trading that led to the $2 billion loss now rocking the bank.

• Mr. Jamie Dimon, JPMorgan's CEO, said on Thursday that JPMorgan’s “synthetic credit portfolio,” an amalgam of derivatives and hedging bets that blew up in recent weeks, was part of “a strategy to hedge the firm’s overall credit exposure.” But “Volcker allows that,” he said.
• That was not the intent of the law, said Phil Angelides, who headed the Financial Crisis Inquiry Commission. “I think the regulators need to go back and sharpen their pencils,” Mr. Angelides said. “The intent of the law was to stop (U.S. Government insured depositories) from doing propriety trading with this kind of risk profile.” And whatever JPMorgan calls it, “it sure looks like proprietary trading, which Dodd-Frank was designed to stop insured depositories from engaging in.” » The full New York Times article - By Edward Wyatt - May 12, 2012.

  ---

Controlling manipulation of betting on oil

• Update: Oil fell below $94 a barrel in New York for the first time since December as Europe’s debt crisis worsened and Saudi Arabia’s energy minister said prices should decline further.
• “We want a lower price than where it is now,” al-Naimi said. “We need to get the price to a level of around $100” a barrel for Brent.
• Saudi Arabia is optimistic that it will discover more oil and gas in the Red Sea and increase recovery rates, al-Naimi said at a conference. The country plans to boost the amount of crude that it can extract from its biggest producing fields to 70 percent from 50 percent currently, he said. » The full Bloomberg article - By Grant Smith - May 14, 2012.
• President Barack Obama will call on Congress today to bolster federal supervision of oil markets, including increased penalties for market manipulation and greater power for regulators to increase the amount of money traders must put up to back their energy bets. » The full Bloomberg report - By Hans Nichols - April 17, 2012.

Private Equity Industry Attracts S.E.C. Scrutiny

• While the largest private equity shops receive the most publicity, the industry is vast, with several thousand firms and more than $1 trillion in assets under management.
• One area of focus is portfolio valuation. Private equity managers use varying, complex methodologies to value their holdings, which are often private companies bought using debt. Because there are no easily ascertainable market prices for private companies, subjective judgments play a significant role in their valuation.

• Earlier this month, federal prosecutors charged three former Credit Suisse executives with inflating the value of their mortgage-bond holdings to secure higher bonus payouts.
• In announcing the initiative, the S.E.C. emphasized that it was interested in assessing returns across Wall Street. » The full New York Times article - By Peter Lattman - February 22, 2012.

---

Why are protesters occupying Wall Street?

• The New York Times - Learning Network -
  Overview | What are they protesting, and what are their goals? In this lesson, students are introduced to Occupy Wall Street and then investigate the movement more deeply. » Go to this Economy and Society Lesson.

  ---

Nobel Winner Joseph Stiglitz Stiglitz Warns Job-Killing Austerity Measures Hurt Economies

• Contrary to the Tea Party, Stiglitz has been arguing since the financial crisis that cuts in government spending will only worsen America's fiscal mess because we will generate fewer tax revenues. "Austerity is not only a recipe for more pain now it's really a recipe for more pain later," he says. "You don't provide the basis of economic growth by having negative economic growth."
• When it comes closing the gap on the country's $1+ trillion deficit on $14+ trillion in debt, Stiglitz says the country can turn things around in 4 relatively easy steps:
  1. Repeal the Bush-Obama tax cuts for the richest Americans.
  2. End the wars in Afghanistan and Iraq, "that have not improved our security" and are costing trillions of dollars. In 2010 Stiglitz published the book: The Three Trillion Dollar War: The True Cost of the Iraq Conflict.
  3. Get Americans back to work. Stimulus and works programs are politically untenable right now but Stiglitz says spending on these programs will ultimately reduce the debt because if we put people to work and "our tax revenues will increase enormously"
  4. Reform Medicare Part D - Under the current law, big pharma sets their own prices. Stiglitz says if that provision is eliminated and the government can negotiate drug prices it would save taxpayers $1 trillion over the next 10 years. » The full Yahoo Finance article - By Peter Gorenstein - Published August 10, 2011.
  
  
  Original image source

  America's struggling economy held hostage
  

  ---

  IMF’s Christine Lagarde Urges Measures to Boost Growth

  • While not all countries have enough leeway to implement policies to support growth, in “many” others, sharp deficit reduction “would be wrong,” she wrote.
  • Potential measures to support growth include policies to advance planned infrastructure or to support job creation, Lagarde wrote in the FT.
  • Cutting (deficits) alone won’t be enough, revenues must increase too, Lagarde wrote. » The full Bloomberg article - By Sandrine Rastello - August 16, 2011.

  ---

• The New York Times - Learning Network - A Plan for Recovery-
  Overview | Students examine the "who, what, where, when, why and how" of the proposed stimulus plan for the U.S. economy; they then write their own proposal outlining how stimulus funds might benefit their community. » Go to this Economy and Society Lesson.

• The New York Times - Learning Network - Examining Key World Economies and Comparing Their Current Volatility -
  Overview | Students review key economic terms and ideas necessary for understanding world economies. They then research the economies of countries in the Group of 8 (20) and present how their economies have changed over the past five years and how the relationships among these countries affect each other in light of world events. » Go to this Economy and Society Lesson.

• Stocks and copper declined yesterday after China cut the economic-growth target to 7.5 percent from an 8 percent goal in place since 2005, a signal that leaders aim to cut reliance on exports and capital spending in favor of consumption.
• Barclays Capital says the government can afford slower growth because fewer people are entering the workforce than before, perhaps 4 million to 5 million a year, rather than as many as 10 million, according to Chang Jian, a Hong Kong-based economist for the bank.

• The “relatively high” 4 percent target for inflation “means the government leaves itself enough room for pro-growth policies and also room for raising utility prices,” Lu Ting, a Hong Kong-based economist at Bank of America Corp., said in a report yesterday. » The full Bloomberg article - By Kevibn Hamlin, et al - March 6, 2012.
  

  ---

Image source

Zhou Tianyong, a professor at the Central Party School in Beijing, which trains rising
Communist Party officials, has long argued that China needs steady but far-reaching political changes.
Shifting gears will be difficult, he contends, because of the habits China has formed and the entrenched interests that have built up.
And there is the rub. Does the Communist Party have the will to remove some of the power and wealth it has bestowed on its favorites? » The full New York Times article - By Alan Wheatley - Published: August 30, 2010


---

• The New York Times - Learning Network - Examining Key World Economies and Comparing Their Current Volatility -
  Overview | Students review key economic terms and ideas necessary for understanding world economies. They then research the economies of countries in the Group of 8 (20) and present how their economies have changed over the past five years and how the relationships among these countries affect each other in light of world events. Go to this Economy and Society Lesson.
• The New York Times - Learning Network - A Plan for Recovery-
  Overview | Students examine the "who, what, where, when, why and how" of the proposed stimulus plan for the U.S. economy; they then write their own proposal outlining how stimulus funds might benefit their community. Go to this Economy and Society Lesson.

• The New York Times - Learning Network - Comparing the 1929 Stock Market Crash to Today's Wall Street Crisis -
  Overview | Students use resources from The New York Times to compare the circumstances under which the Great Depression came about to the circumstances of the current economic crisis. Go to this Economy and Society Lesson.
]]> keerock@www.lfslessonsasia.com (Keerock Rook) Sat, 17 Mar 2012 14:40:15 +0700 Building a Healthy Scociety Economics http://lfslessonsasia.com/wordpress/?page_id=1152 china-and-the-world-economy http://learning.blogs.nytimes.com/2011/09/28/nowhere-to-go-but-up-analyzing-economic-measures-in-a-downturn/ Warning on Jobs Vindicated
• The Labor Department’s March jobs report may have proved Federal Reserve Chairman Ben S. Bernanke right after he warned that payroll gains might slow as companies adjust staffing for a period of moderate growth.
• “What will lead to more hiring and, consequently, further declines in unemployment?” Bernanke said in last month’s speech to the National Association for Business Economics. “The short answer is more-rapid economic growth.”
• More insight into the Fed’s response to the data will come next week when policy makers discuss the economic outlook. » The full Bloomberg article - By Craig Torres, Alex Kowalski and Lorraine Woellert - April 7, 2012.

---

"If a downturn in the equity market tempts you to cut your losses,

• it's a good idea to ask yourself why you're investing in stocks in the first place," said Karin Risi, who oversees Vanguard Advice Services.
• "When do you need the money? If it's a year from now, you're probably better served by considering a more stable, liquid asset, such as a money market fund," Ms. Risi said.
• "But if it's 10, 20, 30 years from now, or longer, we believe stocks offer the best opportunity for significant long-term growth.

• Market turnarounds can be sudden, and they can be spectacular. And if you abandon the stock market when it's at—or near—bottom, you abandon the opportunity to take advantage of the rebound."
• Consider the interactive illustration below. Reviewing nine bear markets between 1960 and 2010 (defining a bear market as a decline of 20% or more in the Standard & Poor's 500 Index over at least a two-month period),
• you'll see that, in all but one case, the market snapped back dramatically soon after hitting bottom. Typically, the S&P 500 regained most—or all—of its lost ground within just one year.

• "Historical data can't be used to predict the future," Ms. Risi said, "but they do tell us that the stock market has been remarkably resilient over long stretches of time. Investors who were patient during periods of stress and dislocation were eventually rewarded for their willingness to take on market risk. » The full Vanguard comment - By Karin Risi, who oversees Vanguard Advice Services - September 23, 2011.

(Jupiter images)

Looking Back:

• Mexico. Brazil. Argentina. Mexico, again. Thailand. Indonesia. Argentina, again. And now, the United States.
  The story has played itself out time and time again over the past 30 years. Global investors, disappointed with the returns they're getting, search for alternatives. They think they've found what they're looking for in some country or other, and money rushes in.
  But eventually it becomes clear that the investment opportunity wasn't all it seemed to be, and the money rushes out again, with nasty consequences for the former financial favorite. That's the story of multiple financial crises in Latin America and Asia. And it's also the story of the U.S. combined housing and credit bubble. These days, we're playing the role usually assigned to third-world economies. Read Column » By - Paul Krugman, New York Times - January, 2008

---

• The New York Times - Learning Network - Nowhere to Go but Up? Analyzing Economic Measures in a Downturn -
  Overview | How do we know when the economy is in a recession? How do key economic indicators perform in a downturn? In this lesson, students create graphs of various economic measurements, using quantitative and qualitative reasoning skills to compare, contrast and correlate the performance of measures like gross domestic product, unemployment and personal income. » Go to this Economy and Society Lesson.
• The New York Times - Learning Network - Examining Key World Economies and Comparing Their Current Volatility -
  Overview: Students review key economic terms and ideas necessary for understanding world economies. They then research the economies of countries in the Group of 8 (20) and present how their economies have changed over the past five years and how the relationships among these countries affect each other in light of world events. » Go to this Economy and Society Lesson.
]]> keerock@www.lfslessonsasia.com (Keerock Rook) Sat, 07 Apr 2012 15:47:47 +0700 Economics http://lfslessonsasia.com/wordpress/?page_id=1152 82F5AF5D-4DA9-42C9-BC14-3433A548937C http://lfslessonsasia.com/wordpress/?p=1942 Global Stimulus Push
• Bank of England Governor Mervyn King has moved closer toward joining the Federal Reserve in a global push to add stimulus and stave off renewed recessions. » The full Bloomberg article - By Jennifer Ryan - September 22, 2011.

---

As part of a plan to cut the U.S federal deficit by $3 trillion, administration officials said:

• President Barack Obama will call for $1.5 trillion in tax increases mostly targeting the wealthy over the next decade.
• The proposal puts Obama in direct conflict with Republican congressional leaders such as House Speaker John Boehner, who last week said his party wouldn’t accept tax increases and urged the bipartisan super committee to focus on scaling back entitlement programs such as the Medicare health-insurance plan for the elderly.
• Obama will threaten to veto any deficit plan that reduces Medicare benefits unless wealthy Americans also are asked to pay more in taxes, according to the officials, who briefed reporters on condition of anonymity.
• While Obama will include Medicare-benefit cuts in his proposal, the administration will insist on tax increases as a condition, they said. » The full Bloomberg article - By Mike Dorning - September 19, 2011.

---

• Federal Reserve Chairman Ben S. Bernanke warned that quick deficit reduction may hurt the recovery.
• “The weakness of the housing sector and continued financial volatility are two key reasons for the frustratingly slow pace of the recovery,” Bernanke said.
• Other impediments to growth include cost-cutting by state and local governments confronting budget shortfalls and waning federal fiscal stimulus, he said.
• Just hours after Bernanke’s speech, President Barack Obama called on Congress to pass a jobs plan that would inject $447 billion into the economy through infrastructure spending, by cutting in half the payroll taxes paid by workers and small- business owners and by providing subsidies to local governments to stem teacher layoffs. » The full Bloomberg article - By Jeannine Aversa and Joshua Zumbrun - September 9, 2011.

  ---

• “Ultimately, our recovery will be driven not by Washington, but by our businesses and workers,” the president said. “But we can help. We can make a difference.” » the full Bloomberg article - By Mike Dorning - September 9, 2011.

---

Image source


---

• The New York Times - Learning Network - A Plan for Recovery -
Overview: Students examine the "who, what, where, when, why and how" of the proposed stimulus plan for the U.S. economy; they then write their own proposal outlining how stimulus funds might benefit their community. » Go to this Economy and Society Lesson.

• The New York Times - Learning Network - Exploring the Impact of Keynesian Economics During a Recession -
Overview: Students define and examine the role of Keynesian economics during recessions and depression, then write a memo to President Obama advising him on how to put Keynesian principles into practice. » Go to this Economy and Society Lesson.

]]> keerock@www.lfslessonsasia.com (Keerock Rook) Sat, 17 Mar 2012 14:47:40 +0700 http://lfslessonsasia.com/wordpress/?page_id=1152 why-its-taking-so-long-to-fix-the-economy http://lfslessonsasia.com/wordpress/?p=1125

Cutting the Deficit, Adding Jobs

• The debt talks have become the best opportunity for Washington to provide that help.
• Doing so will require some political maturity, because the negotiators will have to hold on to two thoughts simultaneously:
  • They will need to increase the deficit in some modest, targeted ways that could increase hiring, like tax cuts for businesses and spending on scientific research.
  • At the same time, negotiators will have to find enough medium-term spending cuts and tax increases to bring down the deficit soon.

• Economically, this mix is not all that complicated. Ben Bernanke, the Federal Reserve chairman, has called for a version of it, in his own cautious way.
  • Coming up with a plan to reduce the deficit was urgent, he said, but making cuts now “could be self-defeating if it were to undercut the still-fragile recovery.” » The full New York Times article - By David Leonhardt - Published: June 14, 2011

---

Nobel Winner Stiglitz Warns Job-Killing Austerity Measures Hurt Economies

• Europe’s leaders are gripped by “deficit fetishism,” Stiglitz said. Austerity “doesn’t work, it does not lead to more efficient, faster growing economies,” said Stiglitz, a professor at Columbia University in New York who won the Nobel Prize for economics in 2001.

• A 2009 U.S. stimulus package increased the number of people employed by between 1.4 million and 3.3 million and cut unemployment by 0.7 percentage point to 1.8 percentage point, according to U.S. CBO.
• The U.S. federal budget deficit is projected to reach $1.5 trillion, or 9.8 percent of gross domestic product, this year, according to the Congressional Budget Office. The 17- member euro region’s deficit is forecast to be 4.3 percent of GDP this year, the European Commission forecasts. » The full Bloomberg article - By Frances Schwartzkopff - May 13, 2011.

---

Image source

---

• The New York Times - Learning Network - Examining Key World Economies and Comparing Their Current Volatility -
  Overview | Students review key economic terms and ideas necessary for understanding world economies. They then research the economies of countries in the Group of 8 (20) and present how their economies have changed over the past five years and how the relationships among these countries affect each other in light of world events. Go to this Economy and Society Lesson.
• The New York Times - Learning Network - A Plan for Recovery-
  Overview | Students examine the "who, what, where, when, why and how" of the proposed stimulus plan for the U.S. economy; they then write their own proposal outlining how stimulus funds might benefit their community. Go to this Economy and Society Lesson.

• The New York Times - Learning Network - Comparing the 1929 Stock Market Crash to Today's Wall Street Crisis -
  Overview | Students use resources from The New York Times to compare the circumstances under which the Great Depression came about to the circumstances of the current economic crisis. Go to this Economy and Society Lesson.
]]> keerock@www.lfslessonsasia.com (Keerock Rook) Thu, 23 Jun 2011 20:47:42 +0700 Building a Healthy Scociety ESL http://lfslessonsasia.com/wordpress/?p=1125 5E5D4EB3-5A25-49ED-A77B-FEAAB676AF3D http://lfslessonsasia.com/wordpress/?p=1125 The Fed chairman Ben Bernanke said the economy still needs the benefit of low interest rates.
• Bernanke links slowdown to gas prices and Japan crisis, sees higher growth in 2nd half of year.
• Bernanke said the central bank would not consider the recovery well-established "until we see a sustained period of stronger job creation." » The full Associated Press article- By Martin Crutsinger, AP Economics Writer, On Tuesday June 7, 2011.

  ---

(Jupiter images)

• Looking Back:

  Mexico. Brazil. Argentina. Mexico, again. Thailand. Indonesia. Argentina, again. And now, the United States.
  The story has played itself out time and time again over the past 30 years. Global investors, disappointed with the returns they're getting, search for alternatives. They think they've found what they're looking for in some country or other, and money rushes in.
  But eventually it becomes clear that the investment opportunity wasn't all it seemed to be, and the money rushes out again, with nasty consequences for the former financial favorite. That's the story of multiple financial crises in Latin America and Asia. And it's also the story of the U.S. combined housing and credit bubble. These days, we're playing the role usually assigned to third-world economies. Read Column » By - Paul Krugman, New York Times - January, 2008

---

• The New York Times - Learning Network - Examining Key World Economies and Comparing Their Current Volatility -
  Overview: Students review key economic terms and ideas necessary for understanding world economies. They then research the economies of countries in the Group of 8 (20) and present how their economies have changed over the past five years and how the relationships among these countries affect each other in light of world events. Go to this Economy and Society Lesson.
]]> keerock@www.lfslessonsasia.com (Keerock Rook) Wed, 08 Jun 2011 14:22:07 +0700 Building a Healthy Scociety ESL http://lfslessonsasia.com/wordpress/?p=1125 links-between-world-trade-interest-rates-and-cur-1 http://lfslessonsasia.com/wordpress/?p=1009 Tax Cuts May Prove Better for Politicians Than for Economy

• Republicans Balk at Obama Business Tax-Break Proposals They Backed in Past
  Top on their list: extend and improve a research and development tax credit for businesses.
  Another tax break long popular with Republicans would let companies immediately deduct the cost of capital investments.
  Obama this month offered both proposals as part of his push to spur economic growth. Now, with House and Senate elections looming on Nov. 2, Obama’s proposals are getting a chilly reception from Republicans. » The full Bloomberg article - By Catherine Dodge - Sep 21, 2010

• Amid heated debate in Washington over the fate of the Bush-era tax cuts, there is strong support for the Obama administration’s proposal to allow the tax cuts for the wealthiest Americans to expire at the end of the year. However, the latest New York Times/CBS News poll finds the public does not expect that to happen if the Republicans win control of Congress in November. More in this New York Times article - By Megan Thee-Brenan - Published: September 16, 2010
• Economic research suggests that tax cuts, though difficult for politicians to resist in election season, have limited ability to bolster the flagging economy because they are essentially a supply-side remedy for a problem caused by lack of demand.
  “The thought that tax cuts pay for themselves or that tax cuts alone can turn around this economy is magical thinking,” said Mr. Kleinbard, now a law professor at the University of Southern California. “The debate has become so unrealistic it makes you want to scream.” » The full New York Times article - By David Kocieniewski - Published: September 10, 2010.

---

Image source

---

• The New York Times - Learning Network - Examining Key World Economies and Comparing Their Current Volatility -
  Overview | Students review key economic terms and ideas necessary for understanding world economies. They then research the economies of countries in the Group of 8 (20) and present how their economies have changed over the past five years and how the relationships among these countries affect each other in light of world events. Go to this Economy and Society Lesson.
• The New York Times - Learning Network - A Plan for Recovery-
  Overview | Students examine the "who, what, where, when, why and how" of the proposed stimulus plan for the U.S. economy; they then write their own proposal outlining how stimulus funds might benefit their community. Go to this Economy and Society Lesson.

• The New York Times - Learning Network - Comparing the 1929 Stock Market Crash to Today's Wall Street Crisis -
  Overview | Students use resources from The New York Times to compare the circumstances under which the Great Depression came about to the circumstances of the current economic crisis. Go to this Economy and Society Lesson.
]]> keerock@www.lfslessonsasia.com (Keerock Rook) Sun, 26 Sep 2010 15:44:43 +0700 Building a Healthy Scociety ESL http://lfslessonsasia.com/wordpress/?p=1009 do-tax-cuts-pay-for-themselves http://www.nytimes.com/2010/04/08/business/08sec.html?scp=8&sq=edward+wyatt&st=nyt Rating risk - What does "AAA" actually mean?
Original image source

WASHINGTON — Credit rating agencies would lose their formal role in evaluating certain bonds backed by consumer loans, like home mortgages, under rules proposed on Wednesday by the Securities and Exchange Commission.
Instead, The companies issuing these bonds would have to vouch for their soundness... (and) also be required to keep a chunk of the securities in their own portfolios so that they retain some of the bonds’ risk, under the S.E.C.’s plan.
The asset-backed securities that would be affected by the new rules are bundles of loans, like residential mortgages, student loans or automobile loans. They are converted to bonds for sale to investors, whose returns are generated from the payments on the loans.
The companies selling the bonds would also have to give the government extensive information, in a form that is easily searchable, on all of the individual loans that make up the portfolio behind the bond offering, and update it on a continuing basis. » The full New York Times article - By Edward Wyatt.

• The New York Times - Learning Network - Understanding Credit Cards and Credit Card Debt -
  Overview: Students examine and learn the basics about credit cards and credit card debt, then create an informational brochure for young students. Go to this Economy and ESL Lesson.
• The New York Times - Learning Network - A Plan for Recovery-
  Overview: Students examine the "who, what, where, when, why and how" of the proposed stimulus plan for the U.S. economy; they then write their own proposal outlining how stimulus funds might benefit their community. Go to this Economy and Society Lesson.

• The New York Times - Learning Network - Examining Key World Economies and Comparing Their Current Volatility -
  Overview: Students review key economic terms and ideas necessary for understanding world economies. They then research the economies of countries in the Group of 10 and present how their economies have changed over the past five years and how the relationships among these countries affect each other in light of world events.  Go to this Economy and Society Lesson

]]> keerock@www.lfslessonsasia.com (Keerock Rook) Sat, 17 Mar 2012 14:48:12 +0700 Building a Healthy Scociety http://lfslessonsasia.com/wordpress/?page_id=1152 sec-moves-to-tighten-rules-on-bonds-backed-by http://www.nytimes.com/2010/02/17/business/17volcker.html?scp=5&sq=louis%20uchitelle&st=cse Paul A. Volcker, 82, has the support of many former Wall Street leaders for a rule prohibiting banks from trading securities for their own gain. Some favor even tighter restrictions....
Image source
At 79, Mr. George Soros says, he has watched Goldman Sachs, and other firms like it on Wall Street, grow too big to fail, which means that no administration could allow such giants to go through Mr. Volcker’s orderly liquidation and disappear. That would be too damaging to the financial system, the economy and the political party in power.

Original image source

The solution for Mr. Soros is to avoid failure in the first place. The big Wall Street firms “would have to be closely regulated to make sure they don’t fail,” he said. “You may decide to break them up, or restrict the number of markets in which they are allowed to operate and you would need to impose capital requirements” to curtail risk-taking.
Derivatives contracts are a major source of risk, and Mr. Soros would limit their use. These contracts — offering insurance, for example, on trading positions — are still ubiquitous. When they come due in great quantities, as they were about to do in the fall of 2008, the contagion spreads, undermining one financial institution after another. More in the New York Times article » By Louis Uchitelle.


• The New York Times - Learning Network - Examining Key World Economies and Comparing Their Current Volatility -
  Overview | Students review key economic terms and ideas necessary for understanding world economies. They then research the economies of countries in the Group of 10 and present how their economies have changed over the past five years and how the relationships among these countries affect each other in light of world events.  Go to this Economy and Society Lesson
• The New York Times - Learning Network - A Plan for Recovery-
  Overview | Students examine the "who, what, where, when, why and how" of the proposed stimulus plan for the U.S. economy; they then write their own proposal outlining how stimulus funds might benefit their community. Go to this Economy and Society Lesson.

]]> keerock@www.lfslessonsasia.com (Keerock Rook) Sat, 17 Mar 2012 14:48:25 +0700 Building a Healthy Scociety http://lfslessonsasia.com/wordpress/?page_id=1152 elders-of-wall-st-favor-more-regulation http://www.nytimes.com/2009/11/27/business/27norris.html?_r=1&sq=floyd%20norris-banks%20lobby%20to%20keep%20big%20profit%20maker&st=cse&scp=2&pagewanted=all The history of nearly all markets is that customers suffer if dealers are able to keep them ignorant of what is actually going on.

Image source

(Unless) Timothy Geithner, the secretary of the Treasury, can persuade legislators otherwise, one of the great bank lobbying campaigns will have succeeded, in large part because some companies that buy derivatives from banks have been persuaded that their costs will rise if needed reforms were made.
Until the beginning of this decade, that was true in the corporate bond market, where actual trades were kept confidential. That made it easy for bond dealers to charge big markups when they sold bonds to customers.
After regulators forced timely disclosures, the bid-ask spreads — the difference between what customers paid when they bought bonds and what they could get when selling them — declined significantly. The result was smaller profits for bond dealers, and better returns for bond investors.The full article » Keeping Derivatives in the Dark By Floyd Norris, New York Times.

• The New York Times - Learning Network - A Plan for Recovery -
  Overview: Students examine the "who, what, where, when, why and how" of the proposed stimulus plan for the U.S. economy; they then write their own proposal outlining how stimulus funds might benefit their community. Go to this Economy and Society Lesson.
• The New York Times - Learning Network - Exploring the Impact of Keynesian Economics During a Recession -
  Overview: Students define and examine the role of Keynesian economics during recessions and depression, then write a memo to President Obama advising him on how to put Keynesian principles into practice. Go to this Economy and Society Lesson.

]]> keerock@www.lfslessonsasia.com (Keerock Rook) Sat, 17 Mar 2012 14:48:35 +0700 Building a Healthy Scociety http://lfslessonsasia.com/wordpress/?page_id=1152 opaque-markets-breed-insider-profits-and-abuse-of http://www.nytimes.com/2009/11/18/business/economy/18leonhardt.html?scp=10&sq=david%20leonhardt&st=cse

The economy still needs help. So White House officials are looking at creating a new version of cash for clunkers — this time for home weatherization.
The idea has a lot to recommend it. The housing bust has idled contractors and construction workers, who could be put to work insulating homes and caulking air leaks. Many households, meanwhile, would save substantial money — not to mention help the climate — by weatherizing their homes, research by McKinsey & Company has shown. All in all, a cash-for-caulkers program seems like a promising part of the jobs program for 2010 that Mr. Obama has suggested he is planning. From » A Stimulus That Could Save Money - By David Leonhardt in the New York Times

Graphic courtesy of Help - New Mexico Inc. (Original image)

• The New York Times - Learning Network - It’s Easy Being Green -
  Overview: Students will read about simple things people can do to make their homes more energy efficient. They then create posters advertising simple things people can do to make other places where they spend time more energy efficient as well. Go to this Economy,Society and ESL Lesson.
• The New York Times - Learning Network - We’ve Got the Power -
  Overview: Students will research various sources of renewable energy. They will discover how each source can be used to generate electricity, the potential benefits and drawbacks of each and which source might best power their home or school. Go to this Economy and Science Lesson.

]]> keerock@www.lfslessonsasia.com (Keerock Rook) Sat, 17 Mar 2012 14:48:47 +0700 Building a Healthy Scociety http://lfslessonsasia.com/wordpress/?page_id=1152 creating-jobs-lowering-costs-and-saving-energy http://www.bloomberg.com/apps/news?pid=20601068&sid=aOvyz1rBOKuk The U.S. economy faces a “significant chance” of contracting again after emerging from its worst recession since the 1930s, Nobel Prize-winning economist Joseph Stiglitz said.
Stiglitz won the Nobel Prize in economics in 2001 for showing that markets are inefficient when all parties in a transaction don’t have equal access to critical information, which is most of the time.

Original image source

Stiglitz said it’s difficult to predict the economy’s trajectory because “we really are in a different world.” He said the crisis of the past year was made worse by lax regulation that allowed some financial firms to grow so large that the system couldn’t handle a failure of any of them.
“These institutions are not only too big to fail, they are too big to be managed,” he said. More in this Bloomberg article » By Michael McKee.


Congressional oversight panel report: “The nation’s banks continue to hold on their books billions of dollars in assets about whose proper valuation there is a dispute and that are very difficult to sell,” the panel said in its latest monthly report.
The Federal Reserve estimated in May that American banks still had about $599 billion in assets to write down. Goldman Sachs and the International Monetary Fund estimated the total at about $1 trillion. And RGE Economics, headed by Nouriel Roubini, has estimated the total at $1.27 trillion. From this New York Times article » By Edmund L. Andrews.

• The New York Times - Learning Network - A Plan for Recovery -
Overview: Students examine the "who, what, where, when, why and how" of the proposed stimulus plan for the U.S. economy; they then write their own proposal outlining how stimulus funds might benefit their community. Go to this Economy and Society Lesson.

]]> keerock@www.lfslessonsasia.com (Keerock Rook) Sat, 17 Mar 2012 14:49:00 +0700 http://lfslessonsasia.com/wordpress/?page_id=1152 difficult-to-predict-the-economys-trajectory http://www.smckids.com/ » Original Guardian image and article source

Nebraska-based Buffett has built a vast army of US followers who admire his flair for picking successful investments and acquisitions. His fortune is estimated at $37bn (£22.5bn), ranking second only to Bill Gates's $40bn on Forbes magazine's annual ranking of the world's richest people.
Buffett said the credit crunch served as a reminder of the need to teach children about money: "What better time to help educate our kids about financial responsibility." From this Guardina article » By Andrew Clark.


---

• The New York Times - Learning Network - Preparing an Annual Budget -
  Overview | Students play a game to determine if they know the costs of common items. As consumers, they then develop their own personal finance budgets to determine how they might reduce their personal spending.Go to this Economy and ESL Lesson.
• The New York Times - Learning Network - Understanding Credit Cards and Credit Card Debt -
  Overview | Students examine and learn the basics about credit cards and credit card debt, then create an informational brochure for young students. Go to this Economy and ESL Lesson.

]]> keerock@www.lfslessonsasia.com (Keerock Rook) Sat, 17 Mar 2012 14:49:14 +0700 Economics http://lfslessonsasia.com/wordpress/?page_id=1152 cash-charge-or-save http://www.economist.com/opinion/displayStory.cfm?story_id=13900898 The Original Getty Image and Economist article »

DIAGNOSING - what is wrong with America’s health-care system is the easy part.
Even though one dollar in every six generated by the world’s richest economy is spent on health—almost twice the average for rich countries—infant mortality, life expectancy and survival-rates for heart attacks are all worse than the OECD average.
Meanwhile, because health insurance is so expensive, nearly 50m Americans, an obscene number in such a rich place, have none; those that are insured pay through the nose for their cover, and often find it bankruptingly inadequate if they get seriously ill or injured.
Cost cutting - If the private sector does not meet certain cost-cutting targets in, say, five years, a public-sector plan should automatically kick in. Such a prospect would encourage hospitals and doctors to accept a painful but necessary reform now. More in the full Economist article »

• The New York Times - Learning Network - Measuring the Impact of the Recession on Families and Communities -
  Overview: Students consider the loss of health care coverage among the unemployed and other ways that the recession affects the U.S. economy and families. They then examine and collect evidence of its effects on their own communities. Go to this Health and Building Society Lesson.

• The New York Times - Learning Network - Developing Public Awareness Campaigns About Health Issues Affecting Life Expectancy -
  Overview: Students investigate the relationships between health care, socioeconomic class, racial background and life expectancy in America and create public awareness campaigns designed to inform people about specific health risks that are known to lower life expectancy.
  Go to this Health and Building Society Lesson.

]]> keerock@www.lfslessonsasia.com (Keerock Rook) Sat, 17 Mar 2012 14:49:27 +0700 Health http://lfslessonsasia.com/wordpress/?page_id=1152 healthcare-reform-in-america-this-is-going-to-h http://www.nytimes.com/2009/06/26/technology/26barcode.html?_r=1&scp=3&sq=gerry%20c.shih&st=cse
Original NYT image source »

Bar Code Is 35
The design was straightforward — 59 black and white bars. And the inventors’ objectives were simple enough, too — to speed up the grocery checkout line and give supermarkets a new tool to track their stock.
Today, bar codes are scanned more than 10 billion times a day around the world. And after 35 years, they are both the mundane minutiae of modern life and cultural icons of cold efficiency, identification and control. From this New York Times article » By Gerry C. Hih.

• The New York Times - Learning Network - Investigating the Technologies That Affect Our Lives -
  Overview: Students consider how the technologies they use impact their lives by investigating recently developed technologies and proposing new technology innovations for the future. Go to this Economy and Science Lesson.

]]> keerock@www.lfslessonsasia.com (Keerock Rook) Sat, 17 Mar 2012 14:49:39 +0700 http://lfslessonsasia.com/wordpress/?page_id=1152 game-changer-in-retailing http://www.iht.com/articles/2009/01/28/business/wbecon.1-415835.php?page=1 Image source
This recession will pass but:

Where will new, real sources of growth come from? Not from Wall Street, probably. Nor, obviously, from Detroit. Nor from Silicon Valley, at least not by itself. Well before the housing bubble burst, the big productivity gains brought about by the 1990s technology boom seemed to be petering out.
So for the first time in more than 70 years, the epicenter of the U.S. economy can be placed in Washington. And Washington won't merely be given the task of pulling the economy out of the immediate crisis. It will also have to figure out how to put it on a more sustainable path - to help it achieve fast, broadly shared growth and do so without the benefit of a bubble. Obama said as much in his inauguration speech when he pledged to overhaul Washington's approach to education, health care, science and infrastructure, all in an effort to "lay a new foundation for growth." Read this New York Times article » By David Leonhardt


• The New York Times - Learning Network - A Plan for Recovery -
Overview: Students examine the "who, what, where, when, why and how" of the proposed stimulus plan for the U.S. economy; they then write their own proposal outlining how stimulus funds might benefit their community. Go to this Economy and Society Lesson.

• The New York Times - Learning Network - Exploring the Impact of Keynesian Economics During a Recession -
Overview: Students define and examine the role of Keynesian economics during recessions and depression, then write a memo to President Obama advising him on how to put Keynesian principles into practice. Go to this Economy and Society Lesson.

]]> keerock@www.lfslessonsasia.com (Keerock Rook) Sat, 17 Mar 2012 14:49:49 +0700 http://lfslessonsasia.com/wordpress/?page_id=1152 economy-lessons-1 http://www.lfslessonsasia.com/thaiconstitutionlesson.html

Editor: Improving Thai laws and courts, as stated in the article: Biggest Legal overhaul in (Thailand) in over 200 years...." assumed a reliable Thai Constitution and a competent and credible Thai Justice system, but these don't exist.
The abuse of power that led to the military and court installed government of Abhist Vejjaiiva is another step backward.
The current excuse for holding on to power is to first fix the Thai economy,
but much of the damage to the economy was done by these same people who now claim they should decide how to fix it.
A healthy and sustainable Thai economy and society can only evolve when the majority of Thai's have a say over how they live.



(AFP)

Giles Ungpakorn, (who left Thailand and is now in exile in the UK after the current government filed les mageste charges against him) was a political scientist at Chulalongkorn University and said the whole justice system should be overhauled, from the police to judges to bureaucrats. He advocates trials by jury and elections for judges to increase public accountability.
"The constitution (sponsored by the military) has a problem right from the start," he said. "Giving power to unelected civil servants who tend to be very conservative is a step backwards." - The Asian Sentinel article - By Daniel Ten Kate  

Looking Back: Prinya Thaewanarumitkul, one of the country's leading constitutional lawyers, (said) the practice of coups in Thailand is a bad habit that needs to end. "If we didn't have this coup the Thai people could have learned more about democracy and politics and about how to develop," - Quote from: News Analysis: Democracy, Thai style - Ban the politicians - By Thomas Fuller International Herald Tribune Published: October 6, 2006

A Learning Foundation Lesson - Compare and Contrast the above statements and stories. - Go to this ESL and Law Lessson.

The Learning Foundation - Making Good Laws - Go to the Law and Society Lesson: "The Thai Constitution(s)"

]]> keerock@www.lfslessonsasia.com (Keerock Rook) Sat, 17 Mar 2012 14:50:02 +0700 http://lfslessonsasia.com/wordpress/?page_id=1152 how-to-improve-thai-laws-and-courts-the-whole-j-1 http://www.iht.com/articles/2008/12/08/business/col09.php Image source

The legal difficulties in Asia related to inconsistent interpretation and implementation of the law, David Maund, managing director at Alvarez & Marsal, a debt-restructuring consultancy explained. "That tends to be an issue particularly in places like the Philippines, Indonesia, Thailand, India and China," he said. Read The full International Herald Tribune article »By Umesh Desai and Andrew Marshall for Reuters.

Learning Foundation Simplified Mock Trials:

• Two related cases: The Case of "Finishing too Late" - A Contract Dispute, and Appealing a lower court opinion/ "The Road Builder vs The Sales Company"
• "Freezing Bus Fares" Appealing a lower court opinion
• "The 18th Thai constitution?" - What makes a law good lesson plan.
• "It's my country/I can do what I want!" - Simplified Mock Trial Lesson Plan.
]]> keerock@www.lfslessonsasia.com (Keerock Rook) Sat, 17 Mar 2012 14:50:14 +0700 http://lfslessonsasia.com/wordpress/?page_id=1152 in-defaults-can-creditors-trust-courts http://www.nytimes.com/learning/teachers/lessons/20081010friday.html Image thisislondon.co.uk
Bitten to the quick: The face of this City trader tells its own story, as does the graph showing the FTSE's decline during another tumultuous week on the Stock Market.

Billionaire investor Warren Buffett wrote:
Today people who hold cash equivalents feel comfortable. They shouldn’t. They have opted for a terrible long-term asset, one that pays virtually nothing and is certain to depreciate in value. Indeed, the policies that government will follow in its efforts to alleviate the current crisis will probably prove inflationary and therefore accelerate declines in the real value of cash accounts.

Equities will almost certainly outperform cash over the next decade, probably by a substantial degree. Those investors who cling now to cash are betting they can efficiently time their move away from it later. In waiting for the comfort of good news, they are ignoring Wayne Gretzky’s advice: “I skate to where the puck is going to be, not to where it has been.”
» Warren Buffett's article.

• The New York Times - Learning Network - Analyzing Causes of the Economic Crisis -
Overview: Students use several different resources from The New York Times to discuss, analyze, and present on the causes and effects of the 2008 economic crisis.review key economic terms and ideas necessary for understanding world economies. They then research the economies of countries in the Group of 8 and present how their economies have changed over the past five years and how the relationships among these countries affect each other in light of world events.  Go to this Economy and Society Lesson 

• The New York Times - Learning Network - Comparing the 1929 Stock Market Crash to Today's Wall Street Crisis -
Overview: Students use resources from The New York Times to compare the circumstances under which the Great Depression came about to the circumstances of the current economic crisis.  Go to this Economy and Society Lesson 

]]> keerock@www.lfslessonsasia.com (Keerock Rook) Sat, 17 Mar 2012 14:50:24 +0700 http://lfslessonsasia.com/wordpress/?page_id=1152 analyzing-causes-of-the-economic-crisis http://www.iht.com/articles/2008/07/21/business/21arabfood.php?page=1 On the Toshka farm in Egypt's desert, workers tended to a grape field. (Shawn Baldwin for The New York Times)


Global food shortages have placed the Middle East and North Africa in a quandary, as they are forced to choose between growing more crops to feed an expanding population or preserving their already scant supply of water.
For decades nations in this region have drained aquifers, sucked the salt from seawater and diverted the mighty Nile to make the deserts bloom. But those projects were so costly and used so much water that it remained far more practical to import food than to produce it. Today, some countries import 90 percent or more of their staples. Read the IHT Article »

• The New York Times - Learning Network - Exploring Natural and Human Threats on Fresh Water and Marine Ecosystems -
Overview: Students examine various fresh water and marine ecosystems, researching the aquatic life they support, threats from nature and humans, and preservation efforts. Go to this Science and Economy Lesson.

• The New York Times - Learning Network - Addressing the Causes and Effects of the Global Food Crisis -
Overview: Students learn about the reasons for Australia's rice shortage and its impact on the rest of the world. They then individually identify the causes and effects of another agricultural commodity's recent changes in the global marketplace. Go to this Science and Economy Lesson.

]]> keerock@www.lfslessonsasia.com (Keerock Rook) Sat, 17 Mar 2012 14:44:32 +0700 http://lfslessonsasia.com/wordpress/?page_id=1152 mideast-facing-choice-between-crops-and-water http://news.bbc.co.uk/1/hi/sci/tech/6468451.stm Map indicates mouths of rivers
Source: WWF Rivers at Risk report

Dam-building, over-extraction for drinking, industry and agriculture, invasive species, climate change, pollution and shipping were among the various activities whose impact the group assessed.

Five of its "top 10" are in Asia, such as the Yangtse, Mekong, and Ganges, though Europe's Danube and North America's Rio Grande are also included. - Article link - BBC News

• The New York Times - Learning Network - Exploring Natural and Human Threats on Fresh Water and Marine Ecosystems
Overview: Students examine various fresh water and marine ecosystems, researching the aquatic life they support, threats from nature and humans, and preservation efforts. Go to this Science Lesson

]]> keerock@www.lfslessonsasia.com (Keerock Rook) Thu, 24 Jul 2008 15:34:28 +0700 http://lfslessonsasia.com/wordpress/?page_id=1152 worlds-top-10-rivers-at-risk http://www.iht.com/articles/2008/06/17/healthscience/17rice.php Image credit - Photographer: Stuart Ling
In Laos, an agriculture official recently said the method, called the System of Rice Intensification, or SRI, had doubled the size of rice crops in three provinces and would spread to the whole country because it had provided greater yields with fewer resources.

It emphasizes the quality of individual plants over the quantity. It applies a less-is-more ethic to rice cultivation.
Harvests typically double, if farmers plant early, give seedlings more room to grow and stop flooding fields. That cuts water and seed costs while promoting root and leaf growth... Read this IHT Article » By William J. Broad

More about improving crops:

Monsanto executives say that a new technique called marker-assisted selection could double the rate of gain made from breeding. That technique does not involve altering crops by putting in foreign genes. Rather it uses genetic tests to help choose which plants to use in conventional cross-breeding, vastly speeding up the process and improving its efficiency. » Monsanto pledges to lift food supply - By Andrew Pollack - IHT

• The New York Times - Learning Network - Addressing the Causes and Effects of the Global Food Crisis -
Overview: Students learn about the reasons for Australia's rice shortage and its impact on the rest of the world. They then individually identify the causes and effects of another agricultural commodity's recent changes in the global marketplace. Go to this Science and Economy Lesson.

]]> keerock@www.lfslessonsasia.com (Keerock Rook) Fri, 27 Jun 2008 14:12:14 +0700 http://lfslessonsasia.com/wordpress/?page_id=1152 food-revolution-that-starts-with-rice http://iht.com/articles/2008/04/17/business/17warm.php image credit - ABC Net Australia
Drought has already spurred significant changes in Australia's agricultural heartland. Some farmers are abandoning rice, which requires large amounts of water, to plant less water-intensive crops like wheat or, especially here in southeastern Australia, wine grapes. Other rice farmers have sold their fields or their water rights, usually to grape growers.

The drought's effect on rice has produced the greatest impact on the rest of the world, so far. It is one factor contributing to skyrocketing prices, and many scientists believe it is among the earliest signs that a warming planet is starting to affect food production. Read this IHT Article » By Keith Bradsher

• The New York Times - Learning Network - Addressing the Causes and Effects of the Global Food Crisis -
Overview: Students learn about the reasons for Australia's rice shortage and its impact on the rest of the world. They then individually identify the causes and effects of another agricultural commodity's recent changes in the global marketplace. Go to this Economy and Society Lesson 

]]> keerock@www.lfslessonsasia.com (Keerock Rook) Sat, 26 Apr 2008 15:51:09 +0700 http://lfslessonsasia.com/wordpress/?page_id=1152 economy-lessons http://www.iht.com/articles/2008/03/27/business/water.php
More than half of the water in China - is unfit to drink. Last year, around 48 million people living there lacked sufficient drinking water.

"India has decided to invest in the water sector mostly through public money, but China has decided to allow private companies, including foreign investors, to participate in water supply and sewage products .... As a result, most of the listed companies in Asia that have water exposure are focused on the China market." Christopher Wong, an analyst with UBS, wrote in a recent research note.
He added "We believe intense competition for water projects and opaque regulations has dampened the attractiveness of water projects in the near term," Read the article » -By Sophie Taylor and Alison Leung (Reuters)

• The New York Times - Learning Network - Understanding the Complexity of Water Disputes -
Overview: Students discuss their community’s water sources and assess the factors affecting the water availability and quality. They research water disputes around the world and understand common factors among them. Read the article » (China) Choking on Growth - New York Times - Go to this Economy and Science Lesson.
• The New York Times - Learning Network - Creating an Educational Guide on Water Safety -
Overview: Students research water pollution and create a class guide to raise the public's awareness about this issue. Go to this Science and Economy Lesson.

]]> keerock@www.lfslessonsasia.com (Keerock Rook) Tue, 08 Apr 2008 21:59:36 +0700 http://lfslessonsasia.com/wordpress/?page_id=1152 china-attracts-private-companies-to-provide-clean