Think Forward blog

"Trading" at the speed of light

Posted December 19, 2013 by Dr. Steve Suppan   

A chart documenting high-frequency trading volume.

Is it possible or necessary to regulate Automated Trading Systems (ATSs) on commodity futures markets that transact business electronically without direct human intervention at the speed of light (high-frequency Trading (HFT))? The Commodity Futures Trading Commission (CFTC) sought answers to that question in a September 2013 Concept Release with 132, often multi-part, questions. As CFTC Chairman Gary Gensler remarked in an appendix to the release, ATSs account for 91 percent of all trading, and farmers and ranchers are affected by ATS-generated price volatility. IATP responded to a few of the 132 questions in a comment filed last week with the CFTC.

The failings of ATSs, characterized popularly as “computer glitches,” came to the public’s attention on May 6, 2010, when U.S. stock markets lost 5–6 percent of their total value in a matter of minutes, before recovering later in the day, due to human intervention. The CFTC and the Securities Exchange Commission (SEC) issued an analysis of the “flash crash” in September 2010. The CFTC’s Technology Advisory Committee (TAC) held hearings over more than a two year period to exchange information about financial industry HFT practices and to recommend rules and definitions that were featured in the Concept Release.

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The tree of knowledge of good and evil

Posted December 12, 2013 by Dale Wiehoff   

Used under creative commons license from OldOnliner.

It’s common to make biblical references when we want to underscore how ancient something is, but in the case of apples, we know they’ve been around for a very long time. Originating in Central Asia, hybrid varieties propagated through grafting were well established over 6,000 years ago. Today there are over 7,500 cultivars world-wide. Despite the range, diversity and quantity of apples produced in the world, however, Malus domestica apparently isn’t measuring up to the modern consumer’s expectations. At least that’s what Neal Carter, president of Okanagan Specialty Fruits thinks. He has developed genetically engineered Granny Smith and Golden Delicious apples that won’t turn brown when the flesh is exposed to air. Carter isn’t alone in searching for technological improvements to the apple. Nanotech coatings to keep fruits like apples, pears and mangos firm are already in use.

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Growing Farm to Hospital

Posted December 12, 2013 by Anna Claussen   

A growing number of hospitals are shifting the way they think about protecting and improving health, and taking a closer look at how and where the food they serve is grown. This is great news for the people who receive treatment, work at and visit the hospitals, but it’s also great news for local, sustainable farmers, and could become an important infrastructure pillar in building stronger local food systems. 

We’ve just put the finishing touches on a two-year assessment (funded by a North Central Region Sustainable Agriculture Research and Education grant) of the current and potential health care food markets for North Central region sustainable farmers. We collaborated with three health systems (Fairview Health Services, Hudson Hospital and Clinics, and the VA Medical Center in St. Cloud, Minnesota) and an advisory committee of farmers, hospital representatives and food systems experts to gather and analyze data to provide insights into opportunities for and roadblocks to hospital sourcing of more local, sustainably produced food.

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Rights to water and sanitation now legally binding

Posted December 11, 2013 by Shiney Varghese   

Used under creative commons license from Loonybread.

On November 21, the U.N. General Assembly’s Third Committee (The Committee) adopted a resolution on “The human right to safe drinking water and sanitation.” All U.N. member states agreed that the rights to water and sanitation are derived from the right to an adequate standard of living. As a result, these rights are now implicitly recognized as being part of International Covenant on Economic, Social and Cultural Rights (ICESCR), Convention on the Rights of the Child (CRC) and the Universal Declaration of Human Rights (UDHR).

This means that for the very first time, all U.N. member States affirm that the rights to water and sanitation are legally binding in international law. This is indeed a moment for all of us to celebrate.

Yet this agreement is marred by the reluctance of the United States to join all other nations in a universal agreement on the definition of these rights (as defined in a resolution of the UN Human Rights Council (UNHRC) adopted by consensus in September 2013).

Writing about this, an Amnesty International press release says: “At the time [of the unanimous adoption of the UNHRC resolution] the United States was the only country that disassociated itself from the definition of these rights and stated that it did not agree ‘with the expansive way this right has been articulated.’ However, it has not explained what aspects of this definition it does not accept.” The press release continues: “Such rights are only ‘expansive’ if one adopts a 19th century understanding of hygiene and of government duties to ensure the provision of public services.”

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Terminator seeds are coming

Posted December 10, 2013 by Dale Wiehoff   

Tell the Brazilian embassy in Washington, DC to Stop Terminator Seeds

Call: +1 (202) 238-2700

After years of global opposition and prohibitions against the production and distribution of terminator seeds, the biotech industry’s final solution (seeds that are genetically engineered to not reproduce), the Brazilian government has taken steps to legalize them before the end of the year.

According the ETC Group, an international bio- and agrotechnology watchdog organization, the Brazilian Judicial Commission will entertain a motion on Wednesday, December 11, 2013 to accept Terminator seeds, making Brazil the first country in the world to defy a 13-year-old UN moratorium on the use of the technology.

Terminator technology represents a fundamental threat to the rights of farmers and biodiversity and must be permanently banned.

We urge you to call the Brazilian embassy in your country and send the government a message that the world rejects technology that makes plants produce sterile seeds.

In the U.S., call the Brazilian embassy in Washington, DC: +1 (202) 238-2700.

Learn more from the ETC Group.

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Agroecology should be at the core of USDA’s mission

Posted December 9, 2013 by Dr. M. Jahi Chappell   

Dr. Catherine Woteki, Chief Scientist of the USDA and Under-Secretary for REE.

The comment period recently closed on the USDA’s Research, Education, and Economics (REE) Action Plan Draft, which responded to informal and formal consultations with internal and external advisors and stakeholders, and “lessons learned from implementation of Farm Bill provisions.” It refines the initial REE Action Plan, which was released in February of 2012.

Why should we care? Well, the action plan is meant to identify and outline the core organizing efforts of the USDA’s science agenda, including how the USDA delivers on its the scientific discovery mission through The Agricultural Research Service (ARS), the National Institute of Food and Agriculture (NIFA), the Economic Research Service (ERS) and the National Agricultural Statistics Service. In other words, it is setting the priorities for the work of 1,200 research projects and thousands of staff within the USDA, the priorities for over $1.2 million in projects and research funds distributed to Land-Grant universities and other partners, and the priorities around what kinds of data the USDA works to collect and how it disseminates it. This document will strongly influence what kind of science is supported, what kinds of things we can find out about our own food system and what possibilities and alternatives are explored. As a former academic, I can say the USDA is a very important funder for academic work on the food system and their statistics are vital to allowing us to figure out what’s going on in our own food system.

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Last day at the 9th WTO Ministerial: Food security hangs in the balance

Posted December 6, 2013 by Shefali Sharma   

Used under creative commons license from World Trade Organization.

IATP's Shefali Sharma is reporting from the 9th WTO Ministerial in Bali, Indonesia.

2 p.m., Bali, Indonesia

It is supposed to be the final hours of the 9th WTO Ministerial here in Bali but trade negotiators are milling in the hallways, conjecturing whether the meeting will be extended until tomorrow or wrap up by 5:00 p.m., whether there will be a “take it or leave it text” or further negotiations late into the night. There have been several contentious issues, including whether to finalize yet another trade agreement on trade facilitation and a non-committal package for the Least Developed Countries (LDC). However, the issue most critical to poor countries concerns food security. The current WTO framework on agriculture is being tested on its ability to accommodate government procurement for food security programs in developing countries.

India has been in the spotlight the last three days since the meeting began because it has stood firmly against the U.S. opposition to allow such programs from violating existing WTO rules. The existing rules were unfairly crafted in the mid-80s by the U.S. and the EU, but never mind that. The U.S. is insisting that India’s Food Security Act would exceed limits set in the agriculture agreement for “trade distorting” subsidies. Never mind too that the U.S. has negotiated space at the WTO to reconfigure its own domestic agriculture and food security programs.

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Draft deal lays groundwork for future negotiations on exempting food security programs from WTO disputes

Posted December 6, 2013 by Shefali Sharma   

Used under creative commons license from World Trade Organization.

Indian Trade Minister Anand Sharma

Update: The ministerial text was accepted on Saturday morning with minor changes to assuage Cuba's concerns. See a video report from Shefali Sharma regarding Cuba, Venezuela, Nicaragua and Bolivia's move to block consensus on the agreement on the morning of December 7. 

IATP's Shefali Sharma is reporting from the 9th WTO Ministerial in Bali, Indonesia.

3:00 a.m., Bali, Indonesia

The WTO’s “Bali Package” was supposed to have been adopted this early morning of December 7 after trade diplomats rolled in for a final meeting at midnight. Earlier in the evening, at 8:00 p.m. on December 6, the WTO secretariat had shared a set of decisions proposed by the chair that comprise the Bali Package. The meeting was originally scheduled to close by 5:00 p.m.. However, at the time of this writing, Cuba, Bolivia, Venezuela and Nicaragua have said to have blocked consensus and the meeting has been adjourned. Cuba’s major issue has been language in the Trade Facilitation decision on “freedom of transit” that fails to address the problems it faces with the U.S. embargo against Cuba. The meeting has been adjourned to reconvene sometime in the next hours.

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Let’s focus on environment and diet to help prevent autism

Posted December 4, 2013

Used under creative commons license from buzzymelibee.

Now that autism affects one in fifty school-aged kids—up from 1 in 150 as measured in 2000—we should be asking ourselves some pretty serious questions about why so many kids have autism. Sure, we know that the health and educational systems are better at diagnosing autism, but better diagnosis explains only part of the increase. With exponential increases in rates of autism over the past two decades, there is more going on than better diagnosis.

As more kids are diagnosed with autism, most of our attention is focused on providing services. Serving kids with autism is essential, but there is also a need to examine the possible myriad of factors that might be contributing to this autism epidemic.  If we knew how to prevent autism, it would be our responsibility as a society to commit resources at our disposal to do so.

Preventing autism requires that we look at the whole picture. The bulk of research in autism has been focused on genetics, which plays a contributing role in risk for autism. Emerging from more recent research, however, is a pattern of links between risk for autism and environmental and dietary factors. While the etiology of autism is complex, with both genetic and environmental components, it is clear that the role of the immune system is key. A child’s prenatal and postnatal environments, including diet, clearly impact immune health. Autism is likely the result of multiple assaults on the immune system. One of these assaults then tips the person over a threshold into the autism state.

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The Financial Stability Board meets in Moscow: Said and left unsaid

Posted December 2, 2013 by Dr. Steve Suppan   

Financial Stablity Board (FSB) press conference, November 8.

This blog was originally published November 26, 2013 in an alternate version by the Post Globalization Initiative.

Following the global financial industry default cascade of 2008-09, the Group of 20 (G-20) industrialized countries established the Financial Stability Board (FSB) in 2009, to coordinate policies among FSB members to prevent another global financial crisis. The most recent FSB Plenary took place on November 7–8 in Moscow.

Because the economic consequences of the financial collapse, following more than a decade of deregulation and non-regulation of the industry, have been so severe and widespread, the expectations of the FSB to reform the broken global financial system are high. Frustration with the slow and halting pace of reform extends even to the head of the New York Federal Reserve Bank, who commented in a November 7 speech that some of the world’s Too Big To Fail banks appear to lack respect for regulation and even the rule of law. 

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