Stock markets around the globe reacted positively to yesterday's announcement by the Fed that it was reducing the rate at which its lends dollars to other central banks and hence the international banking system. Does this mean that the Fed has become the international lender of last resort? It is certainly a major step in that direction. However, it also signals that the Fed (and other central banks) believe that the Eurozone is going to implode. If that happens, major European banks will face massive liquidity problems as depositors and lenders run banks before the euro is devalued. The Eurozone endgame began yesterday.
The Berkeley Earth Project , an independent study of global warming, has found that the earth has become a degree warmer over the past half century. However, the statistical uncertainty surrounding pre-1920 estimates makes it very hard to say much about long-term trends - click here for graph . This is one of my concerns with the global warming debate - we simply don't have trustworthy long-run data which looks at temperature changes over the last millennium (or two). My second concern with the global warming debate is that it is very hard to prove any sort of casual link between global warming and human activity. The scientists may be able to show correlation between global warming and our production of carbon dioxides etc., but correlation is not causation. My third concern with the debate is that those who are sceptical or agnostic are stereotyped as flat-earthers or intellectually-challenged crackpots. This only stifles debate and the progress of science itself.