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MLT NEWSLETTER

Fall 2009






MLT Board of Directors:

Rita Bober
Norm Bober
Ken Dahlberg, Chairperson
Maynard Kaufman
Ron Klein
Suzanne Klein
Michael Kruk
Jim Laatsch
Lisa Phillips, Treasurer
Michael Phillips
Thom Phillips, Managing Director
Jan Ryan, Secretary
Jon Towne, Newsletter Editor
Dennis Wilcox

Don't forget to check out:  www.michiganlandtrust.org and the “Events” page frequently for a schedule of MLT events including the ongoing “Potluck and Speaker Series”.  Another link on the MLT page is: “Documentaries” which includes pictures from the October 18 Garlic Planting.  Also be reminded that all the past issues of the MLT Newsletter are online. We welcome input regarding this newsletter (including articles!), our website, topics for the “Potluck and Speaker Series”, and about our organization in general(we are hard to pin down!).  Donations and memberships can be done by using the form at the end of this newsletter. Email:  tomar@i2k.com or ken.dahlberg@wmich.edu

The first two articles by Maynard and Ron are similar to their presentations at the 1st “Potluck Speaker Series” event in Lawrence on November 12. Anticipating the Transition gives an overview of the growing transition movement that looks forward positively to  a sustainable future generated at the local community level.  Next, Ron debunks the technological optimism that delays the transition from peak oil.  A needed “tea break” is courtesy of Rita.  Ron and Maynard continue with pieces that further dissect our current vulnerabilities concerning 2 “important” topics, food and money, and how we can navigate our way out of these predicaments.


ANTICIPATING THE TRANSITION:

BUILDING COMMUNITY RESILIENCE

WHEN THE CHEAP OIL IS GONE

Maynard Kaufman

The Transition Initiative encourages people to face up to the predicaments that confront us: peak oil, climate change, and the resulting economic recession.  We feel that ordinary people, once they understand how these issues are inter-related, have the ingenuity and resourcefulness to cope with the end of cheap oil.  The fact is that each of us must, in our towns and communities, make the transition to using less oil when it gets too expensive.  We will make this transition more easily, and even joyfully, if we are part of a community that plans for it in advance – together.   So we can anticipate the transition if we clearly understand what we are up against.

First, peak oil.  This image refers to the bell-shaped curve of oil production.  As it flows from the well the flow increases rapidly to its maximum, or peak, and then begins to decline.  This image of a peak is now applied on a global level, and there is evidence that conventional oil production has already peaked.  But the rate of production is holding steady at around 86 million barrels a day as conventional oil is supplemented with ethanol made from corn, and oil from tar sands in Alberta. This supply is barely keeping up with demand, partly because demand has been declining in the current recession.  When demand increases faster than supply, prices will rise dramatically even though there may still be a lot of oil in the ground.

Now, how does peak oil relate to global warming or climate change?   This is largely caused by the burning of fossil fuels: oil, natural gas, and especially coal.  Some people mistakenly think that shortages of oil will reduce carbon emissions and save us from climate change.  But the opposite seems to be true.  Supplements to oil like ethanol and tar sands not only yield very little, if any, net energy over the energy invested to produce them, they generate  more carbon emissions than any other energy source.  These fuels are really scraped from the bottom of the barrel!  Also, people want to drive electric cars to save on gasoline, but more and more coal is burned to generate electricity, and this again adds to carbon emissions.  So substitutes for oil are increasing carbon emissions and thus making climate change more likely.  Such efforts to prop up the existing system (in this case private automobiles) are making the problems worse.

And how does peak oil  relate to the recession?    You may have noticed that between 2002 and 2008 oil prices rose 500%.  The cheap oil early in this decade made easy money available, and many people bought homes.  Then, oil prices rose up to an all-time high of $147 per barrel in July of 2008, and this raised prices of nearly everything.   Because oil is used to make and ship so much stuff,  everything cost more and  people could not make their mortgage payments.  You heard a lot about sub-prime mortgages as a cause of the recession, and they were a cause.   But we hear very little about peak oil, because the powers that be seem to worry it might undermine confidence in economic growth.   So this topic is taboo!   We do know, however, that a rise in the price of energy usually causes a recession.

Two other factors will make us in this country especially vulnerable to peak oil.  First, we in the United States, about 5% of the people in the world, use about 25% of its oil.  We are the people most dependent on oil.  Second, we are probably the most commodity-intensive society in the world and the most dependent on money.   Since money ultimately buys personal independence and destroys community,  Americans will be bereft unless they rediscover a sense of community after cheap oil and easy money are gone.  

In other words, we who live in industrial societies face the most severe challenge  since industrial society began.  We quite literally face the end of industrial civilization.  It can not continue because (1) the cheap oil on which it is dependent is limited and (2) we no longer have the money to import expensive oil.  And (3) if we could afford to burn more oil and other fossil fuels to maintain our industrial production system, we will wreck the planet with greenhouse gases and lose our only human habitation.  These things have already begun to happen and are likely to get worse during the next few years.   It is almost impossible to imagine what things will be like in twenty years, after peak oil, climate change, and Hard Times have become manifest.  We do face a crisis situation that will require us to quit burning so much fossil fuel.

           But a crisis also opens new opportunities.  The shift away from fossil fuel energy also opens the possibility of saving the earth from the pollution caused by fossil fuels.  This is where the Transition Initiative comes in.  The sub-title of The Transition Handbook, by Rob Hopkins, is “From Oil Dependency to Local Resilience.”  Rob Hopkins taught permaculture courses before he started the Transition movement.   Thus the word “resilience” is used here in its ecological sense to indicate elasticity, or the ability of a system to survive disruptive impacts from the external environment.  Individuals who are dependent on commodities will be in serious trouble if the things they depend on are no longer available or if they lack money to buy them.  They will lack resiliency.  But a community of people, working together to learn some basic skills of self-reliance, can develop resilience.  They can thus cope with the end of cheap oil.

When I first learned about the Transition Initiative it appealed to me because it reminded me of how I responded to the energy crisis during the 1970s.  I was teaching at Western and got a half-time leave of absence from classroom teaching to develop the School of Homesteading.  I bought a farm near Bangor as a place with enough land and buildings on it to help young people in residence with us (a new class each growing season) learn the arts and skills of household food production and preservation, care of livestock, and operation of tools useful for these activities.   In a couple of years Michigan Land Trustees was organized and we sponsored many workshops to help people in the local community learn these things.  Now, the Transition groups in Ann Arbor and Chelsea are sponsoring similar “reskilling” workshops.   Our local transition group, which is called Transition Van Buren-Allegan, is planning to sponsor reskilling workshops by next spring and summer.  We will need help from all of you who have so many skills to share.

I want to say a bit more about the larger Transition movement, which includes around 300 Transition Towns.  It is a pragmatic grassroots response to the problems we face.  It looks at what the burning of oil is doing for us in terms of food, housing, and transportation and tries to work out alternatives.   It is not political, not ideological, and not a utopian blueprint.  It could be seen as retrogressive as it very explicitly rejects the notion of economic growth or progress as defined by the industrial society.   It affirms some aspects of an agrarian society, but it is surely going to be a mixture of agrarian and post-industrial elements.  We can expect to use computers for some time, but the electric grid will be less and less dependable. Transition groups are already trying to work out labor-intensive alternatives to the energy-intensive industrial food system in both rural and urban contexts.   These efforts will be reinforced by the momentum of the existing local food movement, along with other leftover enthusiasms of the 1970s such as voluntary simplicity, appropriate technology and renewable energy.

As we move toward the future  envisioned by the Transition, we can expect that the form of work will change, gradually shifting from reliance on jobs to more self-provisioning activities as people move toward local or community self-reliance.  More of us will be doing what had been regarded as “women’s work,” producing food for household use.  In a post-feminist world this will, or should, be shared by both sexes, as should child care.  In addition to food, Transition groups are also trying to revise housing, medicine and health, education, and transportation.   We may want to reverse some recent trends that converted unused inter-urban rail lines to bicycle paths.  There are at least two of these in Van Buren county which could serve for light rail transit.

Needless to say, the Transition movement will not have a solution to all problems.  It is a movement of ordinary people taking the initiative for community survival, and when the people lead, we hope the leaders will follow.  So far our government has tried to prop up the existing economic and industrial system, and we can expect they will continue to waste enormous resources in the process.   The American empire is tottering, spending money it does not have, with over 57% of its budget devoted to the military.   Will there be money to help the poor, or to redress the inequities created by the corporate system?  As inflation erodes the value of the federal dollar it will be necessary for towns to develop their own community currency system.  People can create their own money as they trade goods and services with each other.  These systems are already part of the Transition Initiative in many places.  Michigan Land Trustees sponsored a Local Exchange and Trading System in the 1990s.

One of the glaring omissions in the Transition Initiative is the neglect of churches or of any religious dimension. This is a reflection of its British origin; the movement did start in England where people are much more secular than people in the United States.  But I expect that local churches, “faith-based communities,” could play major roles in the transition in our country.  On the other hand, some religious groups who already expect the end of the world will see the disintegration of industrial society as a sign that the Second Coming of Christ will be soon. They may do what they can to make it happen even sooner.  Religion is always a mixed bag, and unpredictable.  But where it is possible in this country, Transition groups might be strengthened by working with local churches.

  The main social value of the Transition movement may be in how it can provide a positive vision of what can otherwise be seen as a dismal future.  Those who devote their time and energy to it feel really good to know that they can contribute to the regeneration of community as they help to save the earth in the process.     Farm Tour at Maynard and Barbara's on July 26





Star Trek Meets Road Runner:  Dilithium Crystals, Technological Optimism, and the Transition Imperative.


I.  What about Biofuels?                           Ron Klein, Esq, PhD., JD

 

Captain's Log, Stardate 54343.4 Mister Scott informs me that our dilithium crystals are deteriorating at an alarming rate. He has jury-rigged a system that will prevent decay for a time, but it is imperative that we find new crystals soon.    (http://www.st-minutiae.com/humor/roadrunner.html)


    Star Trek-a cultural icon.  When I was in high school, and even college, we’d sit transfixed watching the voyages of the Star Ship Enterprise.  No matter the crisis, no matter the odds against the Captain and crew, they always prevailed.  The wisdom and logic of Mr. Spock, the plucky skills of Engineer Scott, and the undaunted optimism and courage of Kirk won the day.  No mater the crisis, scientific gadgets and damned good luck blessed the ship and the crew.  All summarized later in the wonderful spoof of the “antics” and improbabilities of Star Trek,  Galaxy Quest, the mantra  “Never Retreat-Never Surrender” said it all, optimism, and faith that we always will prevail. 

    Another haunting icon of those years was the photo of the planet earth, beautiful blue and white, hanging alone against the black star studded background of space.  Alone.  Empty space.  Life existing in the narrowest band of statistical probabilities.  Alone.  Self contained. Spaceship earth-alone.

Of course, there are no dilithium crystals.  And as the life-support systems of this planet continue to deteriorate, our unsustainable, massively consumptive habits continue, another cultural icon comes to mind.  That icon represents the vested interests of governments, corporations and institutions that march relentlessly forward into the future.  “Never retreat. Never surrender.”  Suddenly, in a cloud of dust and with his iconic warning call, “MBEEB--BEEB”,  Road Runner again defeats Wiley E. Coyote.  Road Runner: the new icon.

    This presentation will only place an exclamation point behind the work of Dr. Kaufman regarding the imperative for us to transition from our obsessive consumer culture to a simpler way.  I only want to frame the issues and provide a framework for you to think about the issues regarding alternative energy, and concerns about our ever expanding consumptive economy.  The challenge to “concerns” about the end of our  fossil fuel based economy comes from many sources.  For example,  corporate agricultural lobbying groups based in Washington oppose limits on carbon emissions found in legislation addressing climate change, unless the loss of energy producing those emissions can be “substituted.” (Michigan Farm News, October 15, 2009 p.3.) Investments in the “savior” technologies that will permit us to continue as we have for the past century and a half are touted.  They don't realize that the oil economy is merely a blip in the timeline of our cultural history.
Not to worry, we’ll have biofuels, solar energy, the hydrogen economy, vast reserves of coal, and nuclear power. “MBEEB--BEEB .” No problem. “MBEEB--BEEB .”  Not to worry.

There are no dilithium crystals.

To understand why alternative energies cannot, (yes I said cannot), simply substitute for oil and allow us to maintain our status quo, it is imperative that we have a clear perspective for understanding the fundamental issues.  That is, we need to be able to assess-and think deeply, about what the data really means. We need to resist being seduced by propaganda, advertising, and our own Star Trekian optimism, and the “MBEEP--BEEP” of political, industrial and religious leaders.

Bio Fuels from Biomass

First off we need to appreciate the fact that oil is an amazing, unique, non renewable and miraculous source of energy.  It is concentrated solar power from millions and millions of years of sun-driven algae growth condensed into a form readily modified and used.  The use of oil and its impact catalyzed the incredible expansion of our species across the planet.  The Time of Oil will represent a tiny percent of our cultural history and an even smaller percent of the evolution of our species.  Once it is gone, well, it is gone.  That is what nonrenewable means.

I am always amazed at the complex simplicities I see on our farm.  The whole progression from sun to grass to microbes to milk and finally cheese is amazing. The microbes are in the rumen of our goats and cow. The rumen is a fermentation chamber where a complex microbial flora works away, digesting the tough cellulose of grass, producing energy, nutrients and waste.  Industrial biomass conversion is essentially the same: sun, plants, microbes or chemical extraction, to produce fuel.  For fermentation, microbes are contained in a fermentation chamber and produce nutrients, energy and waste.
So we’ll be fine right?  It is quite simple.  There is lots of sun, lots of plants and by simple reasoning there can be lots of fuel. “MBEEB--BEEB .”

Biomass is defined as any renewable, biological material, primarily from plants and plant materials.  The biological material is divided into two fundamental classes.  Edible biomass includes mostly sugars from sap, sugar cane or sugar beets, starches from grains, oils from seed crops, and other nutrients from specialty crops. Inedible biomass includes parts of plants we cannot derive nutrients from.  These  are indigestible, at least by us, “cellulosic” and “lignocellulosic” biomass.  Cellulosic biomass includes cellulose, the primary structural component of plant cell walls, consisting of complex  “sugar” subunits.  Lignocellulosic biomass consists of lignin the tough fibrous structural component of plants.   Both are generally lumped together and called cellulosic biomass and are the most abundant biological material on our planet.

Cellulosic  biomass can be broken down into component sugars by microorganisms that possess specialized enzymes.  The  released sugars provide energy and basic materials for nutrient production for basic metabolism.  Metabolic waste products include various gases such as carbon dioxide, methane, and also water, as well as combustible waste such as methanol and ethanol.  This is what happens in the rumen of a goat:  Indigestible biomass enters a complex microbial community, the rumen microflora, such as fungi, break down the cellulose producing complex sugars that are further processed by yeasts and protozoa to yield simple sugars, proteins, vitamins and gas.  The nutrients travel to the stomach and intestines where they are absorbed and indigestible solids exit as fecal mass.
Biofuels are various liquids, solids or gases from biological and renewable sources.  Biofuels can be burned directly to produce light and heat, or converted into more easily transported and utilized energy sources including ethanol, biodiesel, methanol, and methane.  Having had some experience with bioconversion of biomass into methanol, methane and fuel grade ethanol, I’ll use ethanol as an example of how we need to think about whether biofuels will be able to substitute for oil derived energy sources in order to maintain our world-wide ever expanding, highly consumptive consumer culture.

Ethanol from Biomass: Delusion of the Marketplace
    I’ll focus our analysis only on dry plant matter using information from the US Department of Energy.  Focusing on dry plant matter in a “best case” analysis, avoids becoming bogged down in arguing the trivial differences between various feedstock’s (plants) used to make ethanol.  Our analysis  will ONLY focus on  energy usage of the United States.  The constantly running background is the increasing demands worldwide for oil and the desire of developing nations to achieve our standard of living.

    Let's start with the best data available from the US Department of Energy, coming from 2006.  Here we go, with first a few facts.

In 2006 average US gasoline consumption per day was 400 million gallons, or
146,000 million gallons per year.

Ethanol is less than  70% as efficient energy source as gasoline,  in other words it takes 1.5 to 1.7 gallons of ethanol to replace one gallon of gasoline.  Given current technologies, we’ll let  1.7 gallons of ethanol equal one gallon of gasoline.

How many gallons of ethanol will be needed to replace the amount of gasoline used in one day?

(1.7 gallons ethanol per gallon of gasoline) X (400 million gallons gas used per day) =
    570 million gallons of ethanol needed per day

How many gallons of ethanol will be needed in a single year?

(365 days per year)  X  (570 million gallons of ethanol needed per day)=
208,050 million gallons of ethanol needed per year
     
How is ethanol produced?  Ethanol is produced by microorganisms “fermenting” various sources of biomass.  Sometimes different organisms are mixed, or fermentations are conducted in a step wise fashion.  Specific organisms have specific sets of enzymes that attack specific chemical bonds.  For example, fungi have enzymes that break the tough bonds in cellulose releasing sugars that can then be efficiently utilized by yeasts to produce ethanol.  There are a number of fungi used in industry that break down cellulose (I’ve worked with one), and a wide variety of industrial yeasts that produce alcohols from the resulting sugars (I’ve worked with three different species).  Many of these organisms have been bred or modified through genetic engineering  (I’ve done both) for high ethanol production.  Also, there are two classes of ethanol.  Potable ethanol for human consumption is derived from single step distillation and is produced at a maximum of 100 proof or 50% purity.  Fuel grade ethanol is from redistillation of potable ethanol to achieve close to 95% purity or nearly 200 proof.

Where does biomass used in fermentations come from?  We know the answer to that question.  Biomass includes grain crops, harvest and processing wastes, dried hay, potatoes, sunchokes, wood pulp, sugar cane etc..  As mentioned above we will just assume maximum edible and inedible biomass together under one category, dry biomass, permitting an easier comparison of productive capacities, and a “best case” analysis.

Under ideal growth conditions one  acre of farmland will yield 5 tons of dry biomass.  Using the most advanced  technologies, 67 gallons of fuel grade ethanol can be obtained from one ton of dried biomass.
 Thus:
(5 tons of dried biomass produced per acre)  x  (67 gallons of ethanol produced per ton of biomass)=
335 gallons of fuel grade ethanol produced per acre

How much acreage would be needed to meet our energy demands?  Looking at the statistics from 2006 and the numbers we came to earlier allows us to do the math:
(570 million gallons ethanol needed per day) ÷  (335 gallons ethanol per acre) =
1.76 million acres

    That means it would take 1.76 million acres of farmland to produce sufficient dry biomass for one day’s worth of gasoline.  A year’s worth would be 365 days more.  Do the math and you get :
612 million acres

That means it would take 612 million acres of farm land to produce sufficient biomass for one year’s worth of gasoline.
What does this mean?  According to the USDA data base, in 2007, 309.6 million acres were used for harvested crops in the US.  That included increased pasture land and set-asides that were brought under tillage to produce corn for ethanol production.  This number represents close to the maximum tillable or productive cropping acreage available in the US.

How many acres of tillable land will it take to produce biomass for ethanol production and what would be left for human and animal feed?
309.6 millions tillable acres available   (MINUS) 612 million acres required =
Negative 302 million tillable acres.

Negative means minus, less than zero and in practical terms - less than nonexisting -“ It ain’t there and it ain’t never gonna be.” We would need to double the total number of tillable acres in the US to produce one year’s worth of biomass to convert into ethanol.

    “MBEEB--BEEB .”  Nothing left for human or animal feed.

    Hey, BUT what about  continuing advances being made in technology and genetic engineering?  That is correct. We have made many amazing advances in biomass conversion, and even greater advances have been “just around the corner,” for decades.  However, efficiencies and increased  yields have been modest in comparison to need, despite advances in plant genetics, genetic engineering, improvements in distillation  and industrial processing.  Optimism exceeds reality. 

    The US Department of Energy has even noted that:

IF (my emphasis) yields of 10 to 15 dry tons per acre and ethanol yields of 80 to 100 gallons per ton of biomass could (my emphasis) be achieved, an acre of beanery crops could (my emphasis) generate 800 to 1500 gallons of ethanol.. (http://genomicsgtl.energy.gov/biofuels/transportation.shtml, visited 11/2/2009)

    Taking the US Department of Energy’s maximum theoretical yield of 1500 gallons of ethanol from one acre of cropland we can calculate what we would need to satisfy US gasoline usage.  Again using the numbers we derived earlier.

(570 million gallons ethanol needed per day)  ÷  (1500 gallon produced per acre) =
0.38 million tillable acres needed per day
OR
136.8 million tillable acres  needed per year

    Since harvest crops were produced on 309.6 million acres, we would have 172 million acres remaining for human and animal feed, and export.  That is 56% of the total cultivated acreage in the US.  Assuming  “IF” we could achieve yields of 15 tons of dried biomass per acre and “IF” we could convert that biomass to 1500 gallons of fuel grade ethanol.

    What is the current level of ethanol production in the US?  Reality is sobering.   4 billion or 4,000 million gallons of fuel grade ethanol were produced in the US in 2005 utilizing 13% of the US corn crop.  This ethanol was primarily used as a fuel additive.  4  billion is a huge number, but do the math using the numbers presented earlier.  Assuming that we use  ethanol as a substitute for gasoline at the 2005 level of production.  How many days could we substitute ethanol for gasoline?

(4,000 million gallons ethanol produced) ÷ (570 million gal ethanol needed per day) =
7 days of biofuel (ethanol)

    IF ethanol production were increased by a factor of 8,  thus using all of the US corn crop we would have enough replacement ethanol to last 56 days.  Or, 15% of  yearly US gasoline needs; of course there would be no corn for human or animal feed.

    But what about biodiesel?   Statistics from the US Department of Energy show that ~40 billion (40,000 million) gallons of diesel are used per year for on-road transportation.  On road transportation does not include diesel used in agriculture, construction, shipping, railroad transport or generating electricity.  The efficiency of producing, in this case, an extraction (not fermentation) process, biodiesel from dry biomass is less efficient than ethanol. Regardless, more tillable acreage would be required, more 10’s of millions to be added to what we have already calculated for ethanol.

    Considering the basics of producing dry biomass, just to fulfill the current consumption needs for gasoline,  and add in biodiesel, we exceed the available farmland in the US several times over.

    Hey, but consumption IS changing, hybrid vehicles are making inroads, driving habits are changing?  Yes it is.  However, look our numbers, even if the level of  gas consumption dropped by half,  based on the 2006 data, we would need all tillable crop land in the US to meet the fuel demand  just for ethanol, and that does not include biodiesel.

    What about energy inputs?  We have only looked at the final product of biomass conversion.  Our goal was to simply place into perspective the staggering amounts of energy we consume, only possible by an easily accessed highly concentrated energy source, oil.  But let’s now consider what goes into converting biomass to fuel grade ethanol (or biodiesel for that matter).

    To produce and convert biomass under current industrial agricultural practices we use energy to cultivate, plant, make fertilizers (yes most fertilizer is made from fossil fuel), apply fertilizers, harvest, dry, transport, and process.  There is an average energy  loss of 65% in producing ethanol from biomass. (In other words, it takes 1.54 units of fossil fuel energy to produce 1 unit of ethanol based energy.  Other calculations indicate that corn, for example, takes 29% more fossil fuel to produce an equivalent amount of energy.)  Think about your budget.  What happens when you spend $1.54 for every dollar you make?  Very quickly your cash reserves, if you have any, will be depleted.  The same holds true for energy reserves.

    Other examples of energy inputs for producing biofuels:

    Switch grass (the miracle “grassoline”) requires 45% more fossil fuel energy than the energy produced.
    Wood waste requires 57% more fossil fuel energy than the energy produced.
    Soy beans (for biodiesel) require 27% more fossil fuel energy than the energy produced.

The fundamental analysis, the basic approach, to understanding the issues with biomass conversion to any fuel substitute for our current AND anticipated use is the same.  You must appreciate the problems of scale-up.  You must appreciate the massive amounts of land that must be used.  You must understand the energy inputs.  These are energy consuming processes, which  require an input of more energy than they produce  under current agricultural practices.  They cannot come close to meeting the energy demands, the energy status quo, of our highly consumptive consumer culture.  This is the fundamental issue since the status quo is based upon cheap energy.

What about the hydrogen economy or nuclear energy?   That will be discussed in a future newsletter.

Reflections on the influence of lobbying groups fabricating and exploiting our technological optimism and fears of losing our current life style:

    It is interesting how convoluted the logic is of organizations that are trying to maintain the status quo.  For example, lobbying groups for corporate agriculture, such as the Corn Growers Association and the Renewable Fuels Association, label those questioning the push for ethanol and biofuels,  “. . .activist groups, and . . . academics with an ideological axe to grind against production agriculture and contemporary biofuels.” ( Michigan Farm News, September 30, 2009 p.19.)

    The lobbying groups have a lot of clout and are effective in obscuring any rational assessment of the integrated issues, such as how we can best utilize cultivated land. In the same issue of Michigan Farm News referenced above, there was a brief article  entitled:  “Food Will Become Scarcer Without Productivity Gains.”  The article  discussed reports on  how  “. . . advances in agricultural productivity allowed growth in the world to keep up with growth in the population.”  However,  “.. . .the pace of productivity growth slowed generally,” since 1990.  Concluding, “. . . part of that decline must be blamed on reduced rates of growth in research and development spending.”  (Michigan Farm News, September 30,2009 p.2.)

    Advancing this argument places emphasis on “technological optimism,” in that more research and more development will find the solution to our problems.  It ignores the obvious, we can’t use limited land for increasing biomass and food production at the same time, nor can we maintain our highly consumptive economy based on cheap fuel.  And yet arguments are being made and policies considered to expand production as a goal.  The same publication noted in an article entitled,  “World Will Need 70 Percent More Food by 2050”:

Producing 70 percent more food for an additional 2.3 billion people by 2050, while at the same time combating poverty and hunger, using scarce natural resources more efficiently and adapting to climate change are the main challenges world agriculture will face. . . .  Annual cereal production will have to grow almost 1 billion metric tons from 2.1 billion metric tons today.  Meat production must increase by 200 million metric tons to reach a total of 470 million metric tons in 2050.
                (Michigan Farm News, October 15, 2009, p.2.)
    
    To produce biomass for renewable biofuels demands the cultivation of  huge amounts of land to produce fuels that require more energy to produce than the energy obtained.  Increasing populations will demand cultivation of more land to produce 70% more food than is being produced today, requiring more energy to produce that food. Modern industrial agriculture is based on access to cheap high energy fuel-oil.  The increased efficiencies are based on oil derived fuels, resources that are diminishing at a rate of 5% per year.   Claiming that the decline in production is due to a slacking off of spending on research and development is similar to the US Department of Energy projecting the “IF”  hypothesis of producing 1500 gallons of ethanol per acre of biomass.  Even when you run the numbers it is evident that the land cannot produce sufficient biomass for biofuel, let alone food at the same time, to satisfy even a fraction of current or anticipated US and global consumption.  

In Conclusion:


We need to understand that our consumer, highly consumptive and wasteful culture cannot continue.  We will need biofuels and renewable energy to permit us to live (as Trainer says) a Simpler Way, a less wasteful and more Earth-friendly way.  The development of renewables should be driven by these considerations and not greed nor investment to maintain the status quo.  Short term returns on investment will equal long term waste and will push back the time when the end of our consumer culture becomes painfully obvious.
    With our current wasteful consumer habits:
    Biofuels cannot supply our energy needs.
        Renewable energy cannot supply our energy needs.
        There is not enough land to provide biomass and food.    
    There is not enough land to supply our biomass needs for manufacturing biofuels.

When confronted (hammered?) with self-serving information that champions an optimistic salvation to our energy needs, remember that there are no renewable energy solutions that can maintain the status quo. And just remember- “MBEEB--BEEB,”  there are no dilithium crystals, do the math, think “community” and plant a garden.  The Transition Imperative is to begin living a Simpler Way, and not waiting and relying on Mister Scott to save this dying Star Ship Earth, there are no dilithium crystals.

Food for thought (references not  necessarily included in the text):

For an analysis of why renewables are insufficient, a discussion of our consumer society, and the paradigm of living a Simpler Way, see the works of  Ted Trainer:     http://ssis.arts.unsw.edu.au/tsw/

For a general discussion of renewable energy see Robert Bryce:

    “Let’s Get Real about Renewable Energy”  Wall Street Journal, March 5, 2009     http://online.wsj.com/article/SB123621221496034823.htm
“So Much for Energy Independence.”  Wall Street Journal, July 7, 2009
http://online.wsj.com/article/SB124693284425203789.html

US  Department of Energy  has a  wealth of information on energy:

Energy Information Administration: In general see:    http://www.eia.doe.gov
Annual Energy Out Look-2006-With Projections to 2030   (February 2006):
    http://www.scag.ca.gov/rcp/pdf/publications/1_2006AnnualEnergyOutlook.pdf
    Annual Energy Out Look-2009, updated April 2009:    http://www.eia.doe.gov/oiaf/aeo/index.html

For an analysis of research and advances in genomics, energy and biofuels:

Genomic Science Program and systems biology for energy and environment:
    http://genomicsgtl.energy.gov/
    Plant Feedstock Genomics for Bioenergy: http://genomicsgtl.energy.gov/research/DOEUSDA/     
    For a summary of all programs involving genomics and energy: http://genomics.energy.gov/

For USDA Statistics on land use, see in general:

http://www.usda.gov/wps/portal/!ut/p/_s.7_0_A/7_0_1OB?navid=DATA_STATISTICS
    http://www.ers.usda.gov/data/majorlanduses/references.htm

For basic analysis and papers assessing  popular perceptions of  energy resources:

    http://www.postcarbon.org/

For a discussion of the encounter of the Star Ship Enterprise and Road Runner, see:

    http://www.st-minutiae.com/humor/roadrunner.html



Tea for Free

By Rita Bober

    Now that the colder weather has crept into October, I have been thinking of snuggling down next to the warm woodstove and drinking a hot cup of tea.  There are many herbal and wild plants we can find in our gardens and yards that make excellent teas.  Also many folks grow specific herbal plants to use for medicine as well as to enjoy as teas.  Herbal teas are often called “tisane”.  They are not only enjoyable but good for your health as well.  Native Americans didn’t just sit around the fire at night drinking water.  They usually had warm or hot herbal tea to share.  We can do the same.

    For most teas, it is best to collect the leaves, flowers, twigs, and/or roots when they are at their best – when they are at the peak of their blooming.  Most plants need to be collected before the flowers appear though other plants need to include the flowers for the tea to be effective.  These must then be dried either by setting out on a screen in a shady location with lots of airflow.  It usually takes a week or two to dry.  Leaves and flowers can also be dried in a dehydrator.  So hopefully, you have collected some plants/herbs during the summer and are ready to enjoy wonderfully prepared tea.  Or you can prepare yourself to look for these herbal or wild plants beginning next spring.  I recently found a few plants (cut earlier and with a regrowth of leaves) that I collected this week between the bouts of rain. Below are several varieties of tea that you may find enjoyable and helpful for some medical problems.  Once growing in your garden, they will be free for the taking.

Some wild plants:
Wild Raspberry: everyone is familiar with the wild red or black raspberry plants that grow everywhere.  Many also know that raspberry leaf tea is taken by women to prepare for childbirth (an uterine stimulant).  But did you know it is also useful for diarrhea and in some areas used as a tonic for the prostate gland.  It can also be gargled for mouth ulcers and sore throats.  Do not drink tea during early pregnancy as it can stimulate the uterus.  The leaves need to be harvested before the fruit ripens.
White Pine:  many of us have White Pine trees in our yard.  White Pines are cone-bearing, evergreen trees with clusters of 5 needles bound at the base into bundles on the twigs.  The fresh needles make an aromatic tea and are rich in vitamins A and C.  Light green needles from spring shoots make the best tea, but older needles can also be used anytime of the year.  Steep needles in hot water for 3-5 minutes, then remove.  The tea has a light, piney taste.  
Wild Bergamot and other Peppermints:  Wild Bergamot is a native prairie plant.  It is a large mint with showy light purple flowerheads, opposite leaves and square stems.  The leaves have a strong minty smell.  Both the dried leaves and flowers can be used in tea, but because of its strong flavor, I recommend steeping for only 3-5 minutes.  There are many other mints all with square stems we can grow including peppermint and spearmint, but be aware, they can take over your herbal garden if you are not careful.  
Sweet Goldenrod:  there are a number of goldenrods that grow in our area.  To distinguish sweet goldenrod, look for leaves that are toothless, smooth and show transparent dots, blossoms found in rays of 3-5.  The leaves when crushed, have a sweet, anise-like odor.  Steep dried leaves in hot water for 10 minutes.  May want to add honey to this tea to enhance the flavor.  
Sassafras:  a medium-sized tree, Sassafras can grow wild in an area if not controlled.  There are three different leaves usually all found on the same tree: toothless, ovate, also 2-or 3-lobed, leaves 3-9 inches long.  Sassafras is sometimes called the “mitten” tree because the 2-lobed leaf looks like a mitten. The twigs are green often branched; the mature bark is red-brown, and furrowed.  Tea can be made with the root as well as the leaves.  The root makes a much stronger tea but the leaves are equally refreshing.  To make tea, add the ground roots to boiling water and cover for about 5 minutes.  This tea helps to thin out the blood in spring.  Or crush dried leaves and steep for 10 minutes.  The leaves make a mild, sweet tea.  In London, chimney sweeps would drink a warm sassafras tea to sooth, cleanse and protect the inflamed or irritated mucous membranes of the throat from further abuse.  

Grow your own:
Catnip: catnip is not a native plant but grows wild everywhere.  Once you have catnip in your yard, you will have it forever.  The leaves are jagged, arrowhead-shaped, and gray-green.  There are many stems that end with dense clusters of pale violet or white flowers with purple spots.  The leaves have a minty but strong odor.  Pick before the flowers appear.  The dried leaves make a pleasant tea that is good for soothing stomachache’s especially good for children.
Chamomile: chamomile can be found wild or seeded into your herb garden.  It has small daisylike flowers and sparse, feathery leaves.  The leaves and stems are apple-green.  Pick the top parts of the plants including the flowers and dry.   The tea is good for helping one fall asleep.  Do not drink if you are going to drive a car or other vehicle.
New Jersey Tea: is a native of this area, however, you rarely see it anywhere unless you have planted it yourself.  New Jersey Tea was one of the teas used at the Boston Tea Party (the other two were Oswego/Bee Balm and Labrador Tea).  New Jersey Tea is a low bushy shrub.  It has finely-toothed leaves with 3 prominent veins curving to the pointed tip.  The oval clusters of tiny 5-petaled flowers in the upper leaf axils are beautiful to behold.  Add the dried leaves to a cup of boiling water and steep for 10 minutes.  It has a very mild taste.
Lemon Balm: is also in the mint family (square stem).  Harvest the leaves before the flowers appear.  Lemon balm has a strong lemon flavor and should be used fresh for tea.  The tea is good for depression, nervous exhaustion, indigestion, nausea, and the early stages of colds and flu.  Steep a tablespoon of the leaves in a cup of hot water.  Lemon balm can become quite invasive once it starts growing in your garden.  
Sage: use your culinary sage leaves to make a tea.   Leaves can be harvested throughout the summer.  Sage is traditionally associated with longevity and for restoring failing memory in the elderly.  The leaves make a good gargle or mouthwash as well.  Use a weak tea (steeped for 3-5 minutes) for sore throats, tonsillitis, mouth ulcers, or gum disease.  Caution: sage contains thujone, which can trigger fits in epileptics who should avoid the herb.  Fresh leaves to make tea will help improve digestive function and circulation.  

    I could go on and on to include many more plants such as mullein, strawberry, wintergreen, yarrow, fennel, thyme, hyssop, alfalfa, rose hips, and hops.  But I think trying the 10 above will be a good start.  After you have dried your plants and kept them in small glass jars tightly lidded in a dark location, you are ready to start. Crush up enough of the herb to make a teaspoon.  After you have heated some water to boiling, begin by rinsing your cup with hot water before adding a heaping teaspoonful of the dried herb to the cup.  Add boiling water to the cup and cover the cup with the saucer for 5-7 minutes or as directed above.  Having the cover on top helps preserve the oils found in some herbs.  Stir and strain (remove the herbs from the water).  There are various holders to place the crushed herbs in that make it easier to remove them from the cup.  Some people keep the herb right in the cup while they drink their tea.   There are a variety of choices here.  Lemon or honey can be added as desired.  Now sit back and enjoy your “free cup of tea.”


References:
    A Field Guide to Edible Wild Plants, Eastern and central North America.  Lee Allen Peterson and Roger Tory Peterson.  Houghton Mifflin Company, New York, N.Y., 1977.
Eat The Weeds.  Ben Charles Harris, Crown Publishers, Inc., New York, N.Y., 1975.  Fascinating recipes with special details on the collecting and preparation of common field plants.
    The Complete Medicinal Herbal:  A practical guide to the healing properties of herbs, with more than 250 remedies for common ailments.  Penelope Ody, Dorling Kindersley, Inc. New York, N.Y., 1993.



Sustainable Agriculture in an Unsustainable World:

How Deeply Do We Need to Look?                    By Ron Klein


YIKES!!!!!!!!!



“9 billion people to feed.  A changing climate.” NOW WHAT?

“Providing abundant and accessible food means putting the latest science-based tools in farmer’s hands, including advanced hybrid and biotech seeds.  Monsanto’s advanced seeds not only significantly increase crop yields, they use fewer key resources-like land and fuel- to do it.  That’s a win-win for people, and the earth itself.
Providing more.  Conserving more.  Improving farmers lives.  That’s sustainable agriculture.  That is what Monsanto is all about.”1
                Monsanto Technologies, LLC

    And so it is said in the many ads from the agrochemical industrial complex that by the year 2050 farmer’s will need to double food production to meet the growing demands of our global population estimated to be at 9 billion. Of course the question of a rising global population itself being a problem that should be addressed is not raised. And after 2050, then what? Will farmers need to double production by 2075 to feed the 12 billion?  The doubling of production focuses primarily on enhanced crop production through advanced technologies involving seed placement, climate assessment, irrigation, newer fertilizers, genetically superior grain and vegetable strains, and cropping as well as processing with enhanced technologies - all just around the corner as we march forth into a glorious future.  Is everybody happy?  And does the “win-win for people” actually include the millions upon millions at or near starvation today, or the tens to hundreds of millions near starvation tomorrow?  So many questions are assumed and not addressed in the propaganda and the ideology being put out by Monsanto, Syngenta, Dupont and Dow AgroSciences. 

    Before we go further we need to make a simple distinction between industrial farming and diversified, essentially, organic farming practices.  In the industrial model the soil is considered a substrate into which a plant is rooted and growth is fostered by various inputs from extraneous sources.  In the organic model, the soil is the growth medium containing the necessary elements for plant growth with amendments that foster the soil as a living organism.  Can organic farming be scaled up to produce at a level considered industrial?

    David Fischoff, Vice president of Technology Strategy and Development for Monsanto describes their strategy for ultimately achieving a production goal to feed the world in 2050.

    We made a commitment at Monsanto to work toward doubling the yields of the major crops that we work on. . .  by 2030.  And we see that result coming from three different types of effort.  One is . . . biotechnology in the sense of new gene insertion and new traits.  The second is biotechnology in support of breeding . . . And then the there is this whole area of agronomic practices, which includes precision agriculture based on remote sensing and global positioning.  That is, planting the right seed in the right place depending on the field conditions or having application of pesticides, nitrogen fertilizer or other inputs.  It takes advantage of new equipment for irrigation and new planting technology, for example that would allow putting more plants per acre while getting high yields.”2

    Anyone who has grown a garden will understand that higher yielding plants will require an appropriate increase in nutrients or “inputs.”  Inputs for industrial agronomic practices include nitrogen, phosphorus, potassium, water, and perhaps micronutrients which are little understood. (Humus is never mentioned.)

Anyone who has grown a garden will understand that what goes on under the surface of the soil is more important that what can be seen above the soil.  Close cropping of more plants per square foot means root overlap; plants compete for water and soluble nutrients.  Thus even for non-high yielding plants, the level of “inputs” must be magnified accordingly to achieve the desired yield. Dense plantings require significantly more “inputs”, and if you’ve gardened you will know that dense plantings, even with significant additions of compost, fertilizer and nutrients, do not yield as much per square foot of garden space as those given the room to thrive.3 One of the major issues is root competition for nutrients.

    Anyone who has grown a garden with dense plantings also knows that drought tolerance is severely compromised due to root competition for water.  And it would be easy to imagine vast fields of high performance crops withering on the vine due to water stress, caused by any type of shortage.  Shortages include things like fresh water, energy to “cost effectively” run pumps to feed efficient irrigation systems, and petroleum products to produce the pipes and hoses for those efficient systems.  The most critical of all of these is fresh water, that we have not fouled by our own wastes or salinated by excess irrigation.

    For purposes of discussion we’ll ignore projected shortages of energy, petrochemicals for fertilizer production, supplies of potable water, and other things like salination of arable lands and climate change.   We will ask a simple question, “What are the issues with other “inputs” that are underappreciated resources?”

    Nitrogen (N), phosphorus (P)and potassium (K) are the three most critical elements for industrial agriculture. You see N-P-K on every bag of commercial fertilizer.  The ready availability of N, P, and K has permitted the incredible advances we have seen in agricultural productivity.  Nitrogen is obtained from the atmosphere by energy dependent processes; potassium is most abundant of the three and is found all over the planet.  However, phosphorus is another story, available phosphorus reserves are anticipated to run out at our current level of use by the end of this century.

Phosphorus Wars?


Many of you are probably aware of the armed conflicts between European nations over the guano laden islands off the western coast of South America during the 1800s.  Even then the “developed” nations, especially the US, were importing this priceless fertilizer.  Imagine the strategic importance of phosphorus in 20 to 30 years.  No phosphorus - no plants, no plants - no food,  meaning well... no food.

  The US is the second largest producer of phosphorus in the world.  China is the primary producer with the US following at 19% of world production. 65 percent of US production comes from a single mine in Florida.  The Florida sources are anticipated to be exhausted in about 20 years.   The US exports much of domestic production in the form of finished value added fertilizers, and has to import much of its agricultural supply in the form of phosphate rock, as does the rest of the world, from Morocco.  China, with its high quality reserves does not export or import.

    The Saudi Arabia of phosphorus reserves is Morocco with 40% of all global reserves.  The political implications of needing to control this source can be left to the imagination.

    The International Geological Correlation Program estimated in 1987 that there was enough phosphorus (sufficient reserves) to last over 1,000 years.  A closer look at the basis of the estimate yields a different conclusion.  The estimate includes reserves that are not accessible due to composition or depth and reserves included that are in highly sensitive environmental locations.  The estimates also include reserves that contain highly toxic levels of heavy metals or radioisotopes unsuitable for recovery and processing.  When these reserves were subtracted from the total, sufficient reserves for approximately 90 years remain at the current level of consumption.  However, the level of consumption will grow as the population grows and developing countries demand higher standards of living.  Not that these calculations do not take into consideration levels of phosphorus already in the soil, more on that later.

So what does all of this have to do with “sustainable agriculture”?


   Phosphorus is cycled. Our ecosystems reuse phosphorus dozens of times before it is makes its way to the oceans and is used again through hundreds of cycles by marine organisms before being deposited in ocean sediments.  Where it returns, after eons, with rising land masses to begin the cycle again through erosion producing soil, and then through microbial modification to a form available to plants.

    Current agricultural practices remove phosphorus from the soil and sever the cycle.  Our ancestors fed back to the soil nutrients by the application of crop, animal AND human waste.  The levels of phosphorus were replenished at roughly the same rate as they were removed.  In our flush and forget culture production and consumption of agricultural food and fiber products are separated.  Phosphorus, and other nutrients, are used once and flushed.  Often waste products wind up in landfills.  Ask your county or city what it does with bio-solids from the sanitation and waste treatment plants?  It is  very unusual to find a community in the US that finds it cost effective enough to return these materials to the soil.

    Modern monoculture practices have accelerated erosion by water and wind, resulting in run off and loss of soil and precious nutrients.  Agricultural run off, human and animal wastes result in massive algae blooms creating the dead zones so prominent in the Gulf of Mexico and other areas of the world.

    In most soils there is 10-30 times as much phosphorus as the amount in forms accessible to plants.  This “unavailable” phosphorus is slowly converted by soil microbes (phosphobacteria) into usable forms for plants.  The widespread use of various common chemical based fertilizers actually inhibit several of the enzymes (phosphatases) used by the phosphobacteria to convert phosphorus into forms that can be taken up by plants.  The population of phosphobacteria is severely diminished by changes to the microenvironment of soil, mostly by compaction caused by heavy tillage equipment, and also by added mineral laden fertilizers.  Compacting soil by heavy equipment changes the structure, aeration and water distribution, and destroys the soil flora. Continual mineralization to promote maximal crop yields, changes the general bacterial composition of soils resulting in less diverse microbial populations actually diminishing the numbers of various phosphobacteria.  Soil is not just dirt.

It is true that under a variety of conditions, applications of phosphorus fertilizers and rock phosphate in particular can be beneficial and cost effective.  But from a sustainable agriculture perspective, more attention should be paid to managing the soil biota along with crops so as to get the most benefit from the latter. 4

    Back to “sustainable agriculture.”  Plant biotechnology producing new traits and agronomic practices for improved irrigation, cultivation and more dense plantings are not going to address the diminishing reserves of critical elements essential for life.  Continuing cultivation practices, even “no till” based on Roundup Ready soy beans, will not diminish the need for critical “inputs” essential to the industrial agricultural ideology.  We do see a diminishing of erosion, but we need to look closer at the soil and further into the future.  Just considering one of the lesser known elements,  phosphorus, illustrates the critical need for appreciating and nurturing interactive and self-sustaining practices from farm to consumer and back to farm again.
Emphasis on novel technologies, “just around the corner”, projected needed to feed the anticipated 9 billion people inhabiting this earth in 2050, blinds us to the obvious and distracts us from the wise use of diminishing resources.

Biotechnology cannot create phosphorus.  Heavy machine cultivation and dense plantings of highly productive crops cannot create phosphorus.  Federal and state regulations, which do not permit recycling of wastes and block coupling the cycle of production and consumption, accelerate phosphorus depletion.

Lacking a single key element can bring industrial agriculture productivity to its knees and is why the agrochemical and reductionist approach to food can never be sustainable. The industrial agricultural system will always be at risk as will the population that is forced to depend upon it.

The Monsanto chant: “Providing more. Conserving more.  Improving farmer’s lives.  That’s sustainable agriculture,”....  is wrong.

     The touted practices further break the cycle of production and consumption, squander and waste nonrenewable essential resources, and condemn the world to a dark future. And phosphorus, just one of many essential elements, cannot be created by the magic of our technology.  Industrial agriculture is based on an ideology that in practice is not sustainable, is exploitive, promotes greed, and is depriving us of hope, and our children of a future.

When you read that the agrochemical cartels are promoting “sustainable” agriculture, just think…..phosphorus…..

    
Footnotes

1.Monsanto Technology LLC advertisement, Scientific American, June 2009.  also available at  www.producemoreconservemore.com
2. Biotech’s Plans to Sustain Agriculture, Scientific American, October 2009, 86-92.
3.Solomon, Steve, “Gardening When It Counts”, New Society Publishers, 2005 (and references).
4. Uphoff, Norman, “Soil Welfare,” Scientific American, letters, 11-12, October 2009.


Ron Klein a life long organic gardener,  earned his BA in humanities and MA in International Studies (Economic Development) from Western Michigan University, Ph.D. in Molecular Biology from the University of Wisconsin-Madison and JD from the Thomas M. Cooley Law School.   He did postdoctoral research at the Massachusetts Institute of Technology, was a Scientist in the  Biotechnology Division of Phillips Petroleum Company in Bartlesville OK and La Jolla CA, was a Senior Research Scientist for the Upjohn/Pharmacia Corporation in Molecular Biology and Drug Discover in Animal Health, he retired  as Senior Strategic Research Assessment Scientist and  Manager of Intellectual Property and Emerging Technology in 2001. He worked in the Prosecutor’s Offices in VanBuren and Kalamazoo Counties during and after law school.,  He has written scientific papers, book chapters and reviews dealing with industrial yeasts and applied recombinant DNA, and holds a number of patents.  He is a member of the American Association of Small Ruminant Practitioners,  Wisconsin Dairy Goat Society, American Dairy Goat Association, , Weston A. Price Foundation, Michigan Bar Association, Farm to Consumer Legal Defense Fund and is a Board member of  Michigan Land Trustees. He and his wife Suzanne operate Dancing Turtle Farm, raise bees and make artisan cheeses.  They will be moving to their new farm, Sunshadow,  near Bangor in 2010.
    



COMMUNITY CURRENCIES

                                                           Maynard Kaufman

Community currencies are local money systems organized for use in a limited geographical area.  They are sometimes called complementary currencies because they are usually designed  to work alongside of the official money system, but not replace it.  Although official money, when borrowed from a bank, requires the payment of interest to the bank, community currencies usually make money available without charging interest.  Also, because official money is assumed to gain its value in proportion to its scarcity, and is therefore deliberately made scarce, community currencies can stimulate economic activity by making money available to provide goods and services in a community.  Thus community currencies are sometimes also called “work-enabling” and they are extremely useful during times of high unemployment.  For this reason, and others, community currencies are often organized during Hard Times.  

But it is important to recognize that while community currencies are strongly advocated by some critics of the official money system as a useful alternative, they are opposed by other critics who urge fundamental reform of the money system.  Thomas Greco has been a strong proponent of community currencies since the 1980s, and he self-published his books until 2001.  Bernard Lietaer is another strong proponent of community currencies, and in his book The Future of Money he reviewed a wide range of currencies around the world and explained their advantages.  He used the yin-yang  image to illustrate the value of complementary currencies: the yang is the financial capital which is kept scarce and promotes competition and a stable money system, while the yin, as social capital, is complementary and promotes cooperation, human well-being, and a sufficient supply of money (pp. 271-277).  

Other critics of the official money system either ignore community currencies, as Ellen Brown did, or overtly oppose them, as Michael Rowbotham and Stephen Zarlenga did.  Their argument is that because community currencies solve some problems created by the official money system they can be seen as a palliative which relieves the symptoms of a bad economy without solving the underlying problems.  Thus they may erode the incentive for deeper reform of the money system.  The organization and maintenance of community currency can take time and effort away from the political task of reform.  In his recent book of 2009, The End of Money,  Thomas Greco describes these strategies as “reform or transform” (p. 110) and raises serious questions about putting the government instead of banks in charge of the money system.  He urges a transformation through community currencies.  

At this particular time, when the economy is in a weak condition because of the problems in the conventional money system, it may seem that our efforts should not be dissipated on alternatives, but should  go toward reform.  But Wall Street and the banking system are still very strong and have so far prevailed on the Administration to prop them up rather than let them fail.  Since an interest-free money system would require political initiative, we would be foolish to expect that it is possible.  But alternative community currency systems that help the people during Hard Times can be organized on a local level without any political initiative, and this is a good time to begin.

There are several types of community currency systems.  The most common and easiest to set up are systems of mutual credit, such as LETS, Local Exchange and Trading System.  In these systems people in a community offer to each other, and buy from each other, goods and services they need but cannot afford to buy with official money.  Although this is not technically a barter system,  it could be seen as a kind of multilateral barter system in which members report their transactions to a record-keeper and try to keep their credits and debits in balance.  Whenever members trade the transaction is reported to a record-keeper.    A small fee is charged to members when they sign up for LETS to cover the cost of a newsletter listing items members want or offer to trade and other incidental costs.  All this can also be done through the internet.  LETS was started in the early 1980s by Michael Linton in British Columbia and spread across Canada, England and Australia very quickly.   Fewer LET systems have been organized in the United States, perhaps because people in this country trust large corporations with their familiar brand names  to provide what they need and thus feel less interest in the development of a local economy.  (See Thomas Greco, Money, (2001), pp. 89-94).

Because traders in LETS often do not exchange a paper currency or scrip for the goods and services they buy, but rather report the trades to a record keeper, businesses have been reluctant to adopt or participate in a LET system.   Another type of community currency has evolved to involve businesses in a community currency system, and it is based on the issuance of a paper currency which is acceptable to local businesses.  An example of this type is Ithaca Hours.  It was initiated by Paul Glover who published a newspaper, “Ithaca Town,” and later “Hour Town” and gave each advertiser a certain number of HOURS currency to spend if they agreed to take them back as payment for what they sold.  In this way the alternative currency began to circulate in the community.  Eventually other and more complex means of issuing currency were developed to get HOURS into circulation.  At this point in our story the plot thickens as we encounter the important issue of how this kind of fiat (or created) community currency is originally issued.   Even Greco is a bit puzzled by exactly how Ithaca HOURS are issued, or how they would be redeemed  ( Money, pp. 183-196).  Who or what stands behind this currency?   What happens if there is a local inflation as too much currency is issued?  Does the currency lose its value?   In view of these questions Bernard Lietaer also does not recommend Ithaca HOURS as a model.   (See The Future of Money, p. 194).

These questions point to the essential difference between LETS and systems like Ithaca Hours: how is money issued?   In LETS the members literally create the money in the form of debits and credits as they trade.   This money can be represented as an account balance by the record-keeper, or as a paper currency which many LETS call a “green dollar.”  In this case the member is issued paper currency in the amount of credit he or she has earned, and it is recorded as a debit  (Greco, Money, p. 137).  When this paper currency is spent it does not have to be reported to the record-keeper since it has already been reported.  As members create money with their goods and services there is no fiat currency as with Ithaca Hours.  And because LETS is a self-regulating system, the problem of deciding how much currency to issue is avoided.  

Time Dollars is a simple system developed by Edgar Cahn in 1986 that has become very popular for at least a couple of reasons: it appeals to people’s desire to volunteer to help those who need help, and it has had governmental help in some places.  In Michigan, the lieutenant governor with Engler, Connie Binsfeld, had earlier  introduced a bill that promoted help for frail seniors in their homes.  She provided Time Dollars with administrative assistance.   (See Edgar Cahn and Jonathan Rowe, Time Dollars, pp. 151-152).  Time Dollars is a mutual credit system even though the book just mentioned seems to muddy the waters with too many illustrations and explanations.  When one volunteers to help another person one gains one Time Dollar of credit for each hour of help offered.  The volunteers have the option of trading in credits earned at any time and can postpone this until they are in need of assistance.  One important advantage of the Time Dollar idea is that it facilitates friendship and community.  A disadvantage may be the fact that it seems to need more administration and long-term record keeping than comparable systems since volunteers can let their credits accumulate.  

There are of course many other varieties of mutual credit systems, in fact there are hundreds all over the world,  and most of them start small on the community level.  But some systems grow much larger, and one of the largest and oldest (since 1934) is a Swiss organization called WIR, which has had over 80,000 members.  Its name is based on German words meaning something like Economic Mutual Support Circle, but the initials also spell the pronoun “we” in German.  As Lietaer explains, “there are two ways by which a member can obtain WIR: either by selling goods or services to someone else in the circle, or by obtaining a WIR credit from the coordinating centre” (The Future of Money, p. 169).  Thus WIR is a hybrid of mutual credit and fiat currency when members obtain credits as loans.   In comparison to regular banks, these loans carry a very modest rate of interest.   Greco reports that WIR had been doing over 1.5 billion dollars worth of trading annually but that over time more official Swiss francs have been deposited in the WIR bank so that it has gradually taken on the functions of a regular bank.  He speculates that the success of WIR may have led to its suppression as an alternative system (The End of Money, 154).  Is this a cautionary tale about the dangers of success?   Should mutual credit systems stay small?

The WIR system was of value to Greco as he sought to transform the money system because it demonstrated the success of credit clearing for mutual credit systems.  When we write checks instead of using cash, such as Federal Reserve Notes, to pay our bills, the checks are eventually “cleared” by the banks so they can balance their accounts among each other.  Greco suggests an analogous process of credit clearing for mutual credit systems and it would be a step beyond local mutual credit systems.  “I propose,” he says, “that groups and organizations that seek to promote healthy, sustainable local economies should make it a priority to organize regional mutual credit clearing associations as the centerpiece of a comprehensive program” (The End of Money, p. 173.)  Greco goes on to explain that through this process or network a business can also have an interest-free line of credit so that it can acquire the capital it needs without the use of cash.   Gradually, as the credit clearing system expands, it is able to make a greater variety of goods and services available through the network to local systems (p. 176).

 It should be obvious that the credit clearing network envisioned by Greco would be developed after local mutual credit groups have been functioning in a smooth manner.  But Greco is pointing to a possible future in which people have freed themselves from those who would exploit them with  money.  For example, he explains how a mortgage could be written in terms of shared equity rather than as a conventional debt-based mortgage (The End of Money, pp. 220-225).   This would not only save the borrower money, it would be conducive to an amicable rather than an antagonistic relationship.

Because of the economic recession we already have high rates of unemployment.  And since most economists fail to recognize that one of the causes of the recession was the approach of peak oil and rising prices, they fail to make a helpful diagnosis.  They seek to restore economic growth, but this may be impossible when oil is too scarce and expensive.   As we move into a future with reduced dependence on fossil fuel energy there is likely to be even more  unemployment.  “Jobs” is the form that work assumed during the industrial era.  When there are fewer jobs it will be necessary to develop alternative forms of work, and some of this can occur in the informal sector as people in a community create money, so to speak,  by trading goods and services with each other.  Community currencies will be very useful, and once such new/old forms of work are accepted, people will not only recover a livelihood, but also that which is most vital to their well-being,  a sense of community.

Sources Cited.   (Each of these books include helpful practical advice or even explicit instructions on how to set up a community currency system.)

Edgar Cahn and Jonathan Rowe, Time Dollars.  Emmaus, PA: Rodale Press, 1992.
Thomas Greco, Money.  White River Junction, Vermont: Chelsea Green Publishing Co., 2001.
Thomas Greco, The End of Money.  White River Junction, Vermont: Chelsea Green Publishing Co., 2009.
Bernard Lietaer, The Future of Money.  London: Century, 2001.

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