Will Human Cloning Cause the Next Financial Crisis?

To the best of my knowledge, no where among the nearly 2,300 pages that is the

Dodd-Frank Wall Street Reform and Consumer Protection Act and the hundreds of proposed new regulations is there anything restricting human cloning. And that, it turns out, might be a bad thing.

Recently, a nearly decade old paper on the economic effects of human cloning by a French economics professor has been getting some attention. The paper argues that rather than an army of low-level cloned workers or fighters as is predicted in Huxley's Brave New World or Star Wars, cloning will lead to more and more higher skilled workers. That's because the returns of cloning people who can make a lot of money will be higher than cloning average Joes. And when it comes to cloning, we're in it for the money, just like everything else. What's more, it will probably be only the rich who will be able to afford to clone themselves at the start.

The result, at least at first, will be a rapid rise in our already disturbing levels of income inequality. Clones will earn more and more money, and those of us who reproduce the old fashion way will likely have poorer and poorer offspring. Recently, Barbara Kiviat wrote two posts for this blog on how income inequality was a major contributor to the financial crisis. So you do the math. If cloning leads to income inequality and income inequality leads to financial crises, then we've got a problem. Here's why:

One of the knocks on financial reform is that it is regulation through the rear view mirror. Lawmakers focus on stopping what caused the most recent financial crisis. So after the tech bubble, new rules were put into place to stop Wall Street from using analysts to push worthless stocks. The way Wall Street did IPOs came under scrutiny. And a whole set of rules were put in place to try to stop accounting frauds like Enron.

We all know now that none of those reforms did little to stop the latest financial crisis, which was driven not by stocks, but by housing prices, lax lending and unsound risk taking by Wall Street. So now we are putting reforms in place to reign in risky behavior at banks, and to regulate the derivatives that facilitate big hidden financial bets and add consumer protections that will eliminate the ability to make bad loans in the first place.

All good things. None of that though addresses the obvious real thing we should all be concerned about when it comes to financial crisises: Human Cloning. The paper, which was written by Gilles Saint-Paul, a professor at the Toulouse School of Economics in France, has a surprising amount of math for a topic such as human cloning, which to the best of my knowledge doesn't yet exist. And it has some out there ideas, like the guess that surrogate mothers might soon have salaries that match Wall Street. If cloned babies have higher expected income levels, then people will pay more for them to be made. So birthing a clone equals cha-ching.

So how real is an economic threat is human cloning? Not much yet. Being that financial crisis as JP Morgan's Jamie Dimon put it happen every five to seven years, we will have two or three more credit crunches before clones are walking the earth, if ever. But here's the point, while we are doing a good job of addressing the problems on Wall Street that led to this financial crisis, we are doing very little to address the social ills that lead to financial crises in general.

Recessions, particularly severe ones, have a way of lowering income inequality. That's what happened in the 1940s and 1950s. That doesn't seem to be happening this time. New York City, as the NY Times reports today, and particularly its rich Manhattanites, is regaining its economic health faster than the rest of the nation. The key to leveling the income playing field is taxes and education. Taxes can move wealth down the income ladder. Education can allow people to move up. Until we address those two issues, we probably will have more economic crises to suffer in the future.

by Stephen Gandel

A Century Later, Twain's Final Work Hits Bestseller List

'The Autobiography of Mark Twain' is the first of three volumes the writer left to be published 100 years after his death

Susan Logue Koster | Washington, DC 14 December 2010

Photo: University of California, Mark Twain Papers, The Bancroft Library, Berkeley

Mark Twain in Elmira, New York in 1874, where his family spent summers and he did much of his writing.

One of the most popular books in the United States right now is by an author who has been dead for a century. "The Autobiography of Mark Twain" is the first of three volumes which make up writer Samuel Clemens' final work.

On hold for 100 years

This is the first time the final work by the man who wrote "Huckleberry Finn," "Tom Sawyer," and "The Prince and the Pauper" has been published in its entirety.

"It was deliberately unpublished," says Robert Hirst, curator of the Mark Twain Papers at the University of California Berkley, where Twain's biography has been held since 1949. "He specifically says he doesn't want it published in its entirety, complete, until 100 years after his death."

According to Hirst, the author wanted the freedom to be truthful and frank with his opinions. "Mark Twain had a very tender heart. He liked to say nasty things, and he was very good at saying nasty things, but he really didn't want to hurt anybody's feelings. And he himself didn't want to be shunned because of his extraordinary opinions."

One of his most outspoken opinions in the book centers on U.S. soldiers in the Philippines during the 1898 Spanish-American War who reportedly massacred 600 native men, women and children. The victims, who were essentially defenseless, had gathered in the crater of a dormant volcano.

"General Wood was present and looking on," Twain writes. "His order had been 'Kill or capture those savages.' Apparently our little army considered that the 'or' left them authorized to kill or capture according to taste, and that their taste had remained what it has been for eight years, in our army out there - the taste of Christian butchers."

Twain's criticism of "our imperial behavior in the Philippines rings awfully true to us," Hirst says. "We have seen some imperial behavior in our own history that is not very different."

Modern book

According to Hirst, Twain was a forward-looking person. Even the format of his autobiography is ground-breaking - a series of dictations he began in 1906, at the age of 70, on whatever struck his fancy.

"He so frees himself from the chronological compulsion, that he really is able to talk about whatever he feels like talking about, and when he loses interest to the least degree to change to something else."

Because the book isn't in chronological order, the reader can dive in at any point and learn more about the people who inspired his famous characters or pick up a story about getting the measles as a child or meeting President Grover Cleveland or Helen Keller. Throughout, Twain shows his trademark humor.

"I do think it is fundamentally the humor that keeps us coming back," Hirst says. "This is fun to read, simply because you cannot anticipate when he will say something funny."

Twain continued his dictations for three-and-a-half years. He ends it, Hirst says, when his youngest daughter, Jean, an epileptic, dies in 1909.

University of California, Mark Twain Papers, The Bancroft Library, Berkeley

The Clemens family in Hartford, Connecticut in 1884.

"She has just come home from one of the institutions she has been staying in, and she is preparing Christmas for him and she has it all set up for him and then she dies in the bathtub on Christmas Eve."  That day, the author writes about his daughter and notes, "This is the last part of the autobiography."

Waiting game
Twain died the following April. He saw the autobiography as a way to provide income for his daughters after his death, since he feared the copyright on his books would soon expire. Despite his admonition to delay publication until a century after his death, Hirst says the author did release portions of it even in his lifetime.

"He knew well and so did his publisher at the time that if you said, 'Here is a little piece of the autobiography, but you can't read the book until Mark Twain dies.' They both knew that it would attract people's attention and I don't think there is any question that it has."

The first of three volumes is now in its sixth printing. The autobiography contains no new revelations about Twain, but Hirst believes it's the closest thing to having a conversation with one of America's best-loved authors.

"Of course you don't get to do any of the talking," he says, "but most of us would be content just to listen."

Thousands of British Students Protest Tuition Hikes

British students protest in central London against government plans to triple tuition fees, Thursday, Dec. 9, 2010. Police with riot shields held off angry student protesters marching to London's Parliament Square on Thursday as lawmakers debated a controversial plan to triple university tuition fees in England.

Police on horseback charged into crowds of angry British students demonstrating  in central London on Thursday to protest university tuition hikes.

Lawmakers inside Parliament voted in favor of a controversial bill raising university fees in England, part of the government's larger austerity plan.

Government officials have said the increases, which triple the current fees, are necessary to maintain the high quality of education in universities.

Riot police wielding batons scuffled with some students in front of London's Houses of Parliament as they pushed up against a police barricade.

Students threw sticks at police and set off smoke bombs in front of the horses. Television coverage showed at least one demonstrator being handcuffed, and one police officer on the ground.

It was the latest in a series of student protests against the fee hike, which would raise the yearly bill to about $14,000.

Assange Remains Behind Bars But Pro-WikiLeaks Hackers Continue Attacks

VOA News 15 December 2010

Photo: AP

Supporters of WikiLeaks founder Julian Assange, some wearing masks depicting him and holding placards, participate at a demonstration outside the Swedish Embassy in London, 13 Dec 2010

WikiLeaks founder Julian Assange will remain behind bars until he returns to a London courtroom Thursday to hear the appeal against his being released on bail.

Lawyers acting for Swedish prosecutors have challenged a London judge's decision to free Assange on strict bail conditions, claiming the website founder is a flight risk.  Assange is wanted in Sweden to answer to allegations of rape.

But even as he sits in jail, Assange's online supporters continue to punish those they see as persecuting the WikiLeaks chief, and his website continues to distribute classified U.S. cables.

Hackers late Tuesday caused the Swedish Prosecution Authority's website to crash, pulling it down for almost 11 hours.

In the United States, the Berkeley City Council in California considered a vote on whether to declare a hero the soldier who allegedly released the classified information to WikiLeaks, Bradley Manning.  The vote was indefinitely delayed.

The U.S. Air Force, meanwhile, is barring its personnel from using their work computers to access news organizations or other sources that have posted the WikiLeaks cables.

Assange's lawyer Mark Stephens says conditions in the Wandsworth jail where Assange is being held are "unpleasant."  He says Assange had only been allowed three visits and three telephone calls.

Speaking from his jail cell through his mother, Assange earlier this week called on his backers to protect his work, but Stephens has said that Assange is against hacker attacks.

WikiLeaks has released hundreds of thousands of classified documents since it was launched in 2006, to the anger of governments worldwide.  The latest batch includes thousands of secret U.S. diplomatic cables.

On Tuesday, Judge Howard Riddle set bail for roughly $315,000 (200,000 British Pounds) to allow Assange to walk out of prison.  As part of the bail conditions, Assange would have to wear an electronic tag, live at the estate of a supporter who provided an address to the court, and report to the police daily.

Assange has been held since last week when he surrendered to British authorities.

Chinese Premier Visits India To Discuss Complex Relationship

Kurt Achin | New Delhi 15 December 2010

Photo: AP

Chinese Premier Wen Jiabao writes an India-China friendship message during a visit to a school in New Delhi, India, 15 Dec. 2010.

Chinese Premier Wen Jiabao is on a three-day visit to New Delhi for a series of meetings with India's top leaders. The two rising Asian powers insist the world is big enough for both of them to prosper - but negotiations over sensitive security issues still lie before them.

Wen arrived here vowing to sign $16 billion worth of economic deals with India. His scheduled visit is aimed at strengthening understanding between the two neighbors, both of which are rapidly assuming superpower status on the world stage.

In a speech to business leaders, Wen rejected the idea that India and China have conflicting interests. He said the fast economic growth of India and China has been an important engine for the world economy, but said he does not agree with the view that the two countries are rivals. China and India are partners for cooperation, he said, and there is enough space in the world for the development of both countries.



Indian Foreign Secretary Nirupama Rao echoed those sentiments in statements previewing the Chinese summit. "I believe that neither of us has the luxury of seeing each other in purely antagonistic terms."

China is India's biggest trade partner in a two-way relationship worth $60 billion a year. However, Sujit Dutta, a scholar at Delhi's Nelson Mandela Centre for Peace and Conflict Resolution, said the two have a shaky relationship in certain areas.

"It's less than rivalry, more than friendly competition," said Dutta. "It's a status quo of a type, which is not very stable."

For decades, China has claimed India's northeastern state of Arunachal Pradesh, labeling it "South Tibet." Indian authorities describe the India-China border in that region as peaceful, but allow virtually no foreign correspondent visits to the area. The two countries hope to strengthen measures to defuse conflict along their respective line of control.

Delhi also is concerned about China's plans to build dams along portions of a river it controls upstream from Arunachal, which India calls the Brahmaputra. India is watching closely to ensure China does not divert the supply of water upon which millions of Indians depend.

Beijing has been issuing stapled paper visas to travelers from Indian-administered Kashmir, while providing the more customary visa stamps to travelers from Pakistan-administered Kashmir. Rao said India will seek to change that policy.

"We believe that the India-China relationship will grow even stronger as China show more sensitivity on core issues that impinge on our sovereignty and territorial integrity," said Rao.

Meanwhile, several hundred supporters of Tibetan independence protested in the streets of Delhi as the Chinese premier arrived, shouting "Wen Jiabao go back." The protesters demand Tibetan leaders be involved in any border negotiations between India and China. Beijing views India's hosting of the Tibetan exile community and its spiritual leader, the Dalai Lama, as one of the strongest irritants in the two countries' relationship.

Premier Wen is scheduled to be in India until Friday, when he plans to depart for Pakistan.

Comments (4)

15-12-2010 Martin (China) Our nation love peace, our people hope all of people have good lives in the world. We are doing now by our actiong.

15-12-2010 hamad part 1 of 2 (oman) Chinese policy is flexible and effective which makes China is able to gain more allies and benefits over all the world . Instead of policy of wars and weapons , China aims to build strong relation with its friends and allies . This Kind of policy will make people appreciate Chinese efforts in development and prosperity .

15-12-2010 hamad part 2 of 2 (oman)

Developing relation between two largest economy in the world will help their nations to get mutual benefits which will reflects on their general strategy . Chinese has become lovely nation who deserves be respected from everyone . I do not know how could someone describe Chinese policy in Africa as Malicious while their behavior and policy do not interfere in other countries issues .

15-12-2010 Peter Pan China communist goverment is arrogant, no morals , thief land of others countries around it.

Man Free of HIV After Stem Cell Transplant

An American man living in Germany appears to have been free of both leukemia and the virus that causes AIDS since he had a stem cell transplant for his leukemia three years ago.

German researchers report in the medical journal Blood that the transplant patient now shows no sign of having leukemia or HIV, suggesting that the transplant cured him.

But scientists warn that the case does not have practical implications for the treatment of millions of HIV patients worldwide.

Doctors say that the stem cell donor had a rare gene mutation that protects him from being infected with the AIDS virus.

The patient, Timothy Ray Brown, had his own immune system weakened by high doses of chemo-therapy and had stopped anti-viral therapy to treat AIDS.

In 2007 a doctor in Berlin performed a bone marrow transplant on him, using stem cells from the HIV resistant donor.

The intervention is very risky and potentially deadly. But doctors say that after three years, the so-called “Berlin patient” shows no trace of either HIV or leukemia.

HIV researches say even though the procedure is too dangerous and therefore not widely applicable, it gives hope that a cure for HIV infections can be found.

Tags: Germany, HIV, US

Posted in Europe

Report: Over 100 Million Worldwide Are Child Workers

Carolyn Presutti | Washington 15 December 2010

The U.S. Department of Labor has added 12 nations, all but one of them in Africa, to the list of countries that use child or forced labor to produce goods and services for the international market. The department released three reports on child and forced labor Wednesday.

It's estimated that 115 million children worldwide are child workers. And sadly, also according to U.S. labor organizations, there is no continent where this problem has been completely solved.

But with  new reports released by the U.S. Department of Labor, there is some good news regarding charcoal, a component to make steel.
"We actually, for the first time, took someone off our list and that was Brazil with the use of children producing in the mines charcoal. So there are some good effects, when we shine the light, it really means something," said Labor Secretary Hilda Solis.

The reports list six new goods produced by child or forced labor from twelve new countries, all in Africa except one--El Salvador.  The new items range from sapphires in Madagascar to hand woven textiles from Ethopia to poultry in Bangladesh. The report also lists 128 goods from 70 countries.
"The single largest concentration from a sectored point of view is agriculture.  That is because, where are the poor households?  They are mainly in agriculture," said Undersecretary Sandra Polaski.
Iowa Democrat Senator Tom Harkin was the sponsor of a law in the late 1990s that made it illegal for the U.S. to import products produced with child labor. "It's not a son or daughter helping out on a family farm.  It's not a kid working after school.  We are talking about children who are forced to work and denied the opportunity to go to school.  A nation cannot achieve prosperity on the backs of its children.  The only route to true prosperity is by developing the brains of our children," he said.

The labor departmnet says the most significant progress since Senator Harkin's action occured in Latin America.  But for years, the agency has been fighting the cocoa industry in West Africa.

Undersecretary Polaski says the United States is  working together with governments, industry and others to end the practice with $10 million pumped into the effort that's matched by the industry's $7 million. "How do you supply the education that child needs if there's no school in that area.  How do you help the family be productive enough without the child's labor How do you raise the consciousness that this is not a good thing for the child to be working with dangerous machetes and tools and carrying heavy loads?," Polaski said.

A new addition in the reports this year are recommendations to give each individual country ideas on how to eradicate child labor.  Officials hope that will lead to more countries getting off the list,  like Brazil with its charcoal mines.