End Of The World

America On Fire: Why Is The Number Of Wildfires In The United States Increasing?

As America watches large sections of Colorado literally burn to the ground, many are wondering why all of this is happening.  There have always been wildfires, but what we are experiencing now seems very unusual.  So is the number of wildfires in the United States increasing?  As you will see later in this article, the answer is yes.  2011 was a record setting year for wildfires and this wildfire season is off to a very frightening start.  Right now the eyes of the nation are focused on the Waldo Canyon Fire in Colorado.  It doubled in size overnight and it has consumed more than 300 homes so far.  It is threatening the city of Colorado Springs, and at this point more than 35,000 people have been forced to evacuate – including the U.S. Air Force Academy.  On Twitter and Facebook residents are describing what they are seeing as “the apocalypse” and as “the end of the world”.  But this is just the beginning of the wildfire season.  We haven’t even gotten to July and August yet.

The Waldo Canyon fire is rapidly becoming one of the most expensive and destructive wildfires in Colorado history.  The historic Flying W Ranch has already been burned totally to the ground by this fire.  Local authorities are struggling to find the words to describe how nightmarish this fire is.  The following are a couple of quotes from a CNN article….

Richard Brown, the Colorado Springs fire chief, described it as a “firestorm of epic proportions.”

Gov. John Hickenlooper surveyed the Waldo Canyon Fire, telling reporters it was a difficult sight to see.

“There were people’s homes burned to the ground. It was surreal,” he said late Tuesday night. “There’s no question, it’s serious. It’s as serious as it gets.”

But this is not the only wildfire that is raging in Colorado.  Right now there are 10 wildfires burning in the state.  Overall, there are 33 large wildfires currently burning in twelve U.S. states.

If you will remember, New Mexico just experienced one of the worst wildfires that it has ever seen.  Conditions throughout most of the western United States are ideal for wildfires right now.  As USA Today reports, much of the western half of the country is under a “red flag warning” right now….

Throughout the interior West, firefighters have toiled for days in searing, record-setting heat against fires fueled by prolonged drought. Most, if not all, of Utah, Colorado, Wyoming and Montana were under red flag warnings, meaning extreme fire danger.

But wait, didn’t this kind of thing happen last year too?

Yes it did.

In fact, 2011 was one of the worst years ever for wildfires in America.  The following is a short excerpt from an EarthSky article….

Thousands of wildfires raged across the United States last year, 2011, burning a record amount of land, especially in the southern U.S. In fact, 2011 the third-most-active fire season since 1960 (when this record-keeping began) with respect to acres burned, according to preliminary data released from the National Interagency Fire Center (NIFC) in late December 2011. The NIFC will be releasing an official summary report detailing the 2011 wildfire season later in 2012, but for now you can read some of the details in the State of the Climate Wildfires 2011 report from NOAA.

During 2011, a total of 73,484 wildfires burned an estimated 8,706,852 acres (35,235 square kilometers) of land across the United States. Wildfire activity during 2011 was exceptionally high and was only exceeded in the historical record by wildfire activity during the years 2006 and 2007.

We have seen highly unusual wildfire activity throughout America in recent years.  In the article quoted above you can find a chart which shows that wildfire activity in the United States has been far above normal during the past decade.

Wildfire records have only been kept since 1960.  The 6 worst years on record for wildfires in the U.S. have all happened since the year 2000.  The following is from an Earth Island Journal article that I found….

In the United States, where some of the most accurate wildfire statistics are kept, the six worst fire seasons in the past 50 years have occurred since 2000. In Texas, nearly 4 million acres were burned in 2011, double the previous record. This included the Bastrop Fire last September that destroyed 1,600 homes and became the most destructive fire in Texas history. In Arizona more than one million acres were burned in 2011, a new record. The Wallow Fire, which destroyed nearly a half million acres, was the largest fire in Arizona history. The Pagami Creek Fire in northern Minnesota became the third largest fire in state history when it burned 100,000 acres in September 2011, most of this in an unprecedented 16-mile run on a single day.

So what does all of this mean?

It means that the number of wildfires in the United States is increasing and wildfires are becoming more powerful and doing more damage.

So what is causing all of this?

The truth is that this is happening because we are seeing exceptionally dry conditions throughout the western half of the United States.  In fact, according to the U.S. National Academy of Sciences, the U.S. interior west is now the driest that it has been in 500 years.

The eastern half of the country also gets very hot during the summer, but they don’t have as many wildfires because they get a lot more rain.

Many areas in the western half of the country have been experiencing drought conditions for quite a few years, and there seems to be no end in sight for the drought.

If you go check out the U.S. drought monitor, you will see that almost the entire southwest United States is experiencing some level of drought right now.

So what will July and August bring?

It is kind of frightening to think about that.

Earlier this year I wrote an article that postulated that we could actually see dust bowl conditions return to the middle of the United States.  Many readers were skeptical of that article.

But as much of the western United States continues to experience bone dry conditions and continues to be ravaged by wildfires, perhaps more people will understand how bad things are really getting in the interior west.

Just because we have made great technological advances as a society does not mean that we know how to tame nature.  We can attempt to contain the massive wildfires that are popping up all over the place and we can attempt to deal with the drought, but in the end we cannot stop what is happening.

So do you live in any of the areas that are being affected by these wildfires?

Do you have an opinion about why so much of America is on fire?

Please feel free to post a comment with your opinion below….

If A Global Recession Is Not Looming, Then Why Are Bailouts Flying Around As If The End Of The World Is Coming?

I have learned that watching what people do is much more important than listening to what they say.  Back in 2008, financial authorities in the United States insisted that everything was gone to be okay.  But we all know now that was a lie.  Well, right now financial authorities in the U.S. and Europe are once again trying to assure us that everything is under control and that we are not headed for a global recession.  Unfortunately, their actions are telling a very different story.  All over the world, bailouts are flying around as if the end of the world is coming.  Governments and central banks are stepping in with gigantic mountains of money to prop up bond yields, major banks and even stock markets.  What we have seen over the past few months has been absolutely unprecedented.  So why are such desperate measures being taken if everything is going to be just fine?  Unfortunately, debt problems are never solved with more debt, so these bailouts really aren’t solving anything.  We are still headed for a massive amount of financial pain.  It would just be nice if the authorities would quit lying to us and would actually admit how bad things really are.

Today it was announced that the European Central Bank has agreed to make $638 billion in 3 year loans to 523 different banks.  Never before (not even during the last financial crisis) has the ECB loaned so much cheap money to European banks at one time.

This move by the ECB made headlines all over the globe.  CNBC is calling them “ultra-long and ultra-cheap loans“.

European authorities are hoping that European banks will use this money to make loans to businesses and to buy up the debt of troubled European governments.

But as we have seen in the United States, bailout money does not always get spent the way that the authorities intend for it to be spent.

The truth is that the banks could end up just sitting on the money.  That is what happened with a lot of bailout money in the United States during the last financial crisis.

European authorities hope, however, that European banks will take this super cheap money and lend it to European governments at much higher interest rates.

Unfortunately, global financial markets were not terribly impressed with this move by the ECB.  European bond yields actually rose and the euro just kept on falling.

Every few days another major “solution” to the European debt crisis is put out there, but so far nothing has worked.

For example, the European Central Bank has already spent over 274 billion dollars directly buying up European government bonds, and yet bond yields continue to hover in very dangerous territory.

But without ECB intervention, we probably would have already seen a major financial collapse in Europe.

The financial system of Europe is a total mess right now, and everyone is becoming incredibly dependent on the ECB.  The following comes from a recent Reuters article….

One of the key factors certain to have boosted demand is that banks are now more reliant than ever on central bank funds. The ECB said on Monday, in its semi-annual Financial Stability Review, that this dependency could be difficult to cure.

French banks have almost quadrupled their intake of ECB money since June to 150 billion euros, while banks in Italy and Spain are each taking more than 100 billion euros.

At this point, the ECB has the weight of the entire world on its shoulders.  One false move and we could see a huge wave of bank failures and we could be plunged into a major global recession.

But even with all of this unprecedented assistance, we have already seen some big time European banks fail.

Back in Obtober, Dexia was the first major European bank to be bailed out, and the cost of that bailout is going to exceed 100 billion dollars.

The funny thing is that Dexia actually passed the banking stress test that was conducted earlier this year with flying colors.

So what does that say about all of the other major European banks that did not do so well on the stress test?

In addition, it was recently announced that Germany’s second largest bank is going to need a bailout.

The following comes from a Sky News report….

Germany’s second largest bank, Commerzbank, is reportedly in discussions with the German government about a bailout after regulators said it needed to raise more money to cope with a potential default on its loans to governments.

“Intense talks” have been going on for several days, according to sources who spoke to the news agency Reuters.

Even with unprecedented intervention by the ECB, the truth is that the European banking system is rapidly failing.

In Greece, a full-blown run on the banks is happening.  According to a recent Der Spiegel article, funds are being pulled out of Greek banks at a pace that is astounding….

He means that the outflow of funds from Greek bank accounts has been accelerating rapidly. At the start of 2010, savings and time deposits held by private households in Greece totalled €237.7 billion — by the end of 2011, they had fallen by €49 billion. Since then, the decline has been gaining momentum. Savings fell by a further €5.4 billion in September and by an estimated €8.5 billion in October — the biggest monthly outflow of funds since the start of the debt crisis in late 2009.

In all, approximately 20 percent of all deposits in Greek banks have been withdrawn since the start of 2011.

Other European nations are implementing draconian measures in an attempt to protect their banks.  For example, in Italy all cash transactions over 1000 euros have been permanently banned.  People will either have to use checks, debit cards or credit cards for large transactions.  This will “encourage” people to keep more money in the banks, and this will also make it much easier for the Italian government to track transactions and to collect taxes.

But it is not just in the EU where we find unusual steps being taken.

In the UK, the Bank of England is acting like the end of the world is about to happen.  The following comes from a recent article on the This Is Money website….

The deputy governor of the Bank of England today warned the situation surrounding the single currency was ‘worrying’ and that the Bank was making preparations to support British banks, should the eurozone collapse.

A temporary loan facility has been introduced as a precaution, for use in the event of contagion from the eurozone crisis endangering UK institutions, Charlie Bean said in an interview on BBC Radio 4’s World at One.

An article posted on Business Insider a while back says that Switzerland is also preparing for “a euro collapse”….

The Swiss government is preparing for a collapse of the euro, according to Swiss Finance Minister Eveline Widmer-Schlumpf.

She told parliament that a work group was studying the imposition of capital controls and negative interest rates to protect Switzerland from the capital flight that a euro collapse would engender

Frightening stuff.

On the other side of the world, the government of China is also taking action.  In fact, China is actually injecting money into the stock market in order to prop up stock prices.

The following comes from an article in the China Post….

In a movement considered “long overdue” by some analysts, the injection of government money into the tanking stock market to prop up stock prices has been given the green light, government officials announced yesterday.

Vice Premier Chen, the topmost government official charged with the country’s financial stability, however, insisted the fundamentals of the economy and the stock market are sound, expressing his hope for continued optimism among the people.

Of course the Federal Reserve is not going to stand on the sideline while all of this is going on.  In a recent article, I described how the Federal Reserve is helping to bail out European banks….

The Federal Reserve, the European Central Bank, the Bank of England, the Bank of Canada, the Bank of Japan and the Swiss National Bank have announced a coordinated plan to provide liquidity support to the global financial system.  According to the plan, the Federal Reserve is going to substantially reduce the interest rate that it charges the European Central Bank to borrow dollars.  In turn, that will enable the ECB to lend dollars to European banks at a much cheaper rate.  The hope is that this will alleviate the credit crunch which has gripped the European financial system by the throat.  So where is the Federal Reserve going to get all of these dollars that it will be loaning out at very low interest rates?  You guessed it – the Fed is just going to create them out of thin air.  Our currency is being debased so that Europe can be helped out.

If the global financial system was in good shape, all of these bailouts would not be happening.

These desperate measures are a clear sign that something is up.

The financial authorities of the world are doing their best to keep the system together, but in the end they are not going to be able to prevent the collapse that is coming.

The world is heading for incredibly hard economic times.

So is the end of the world coming?

No.

But to many in the financial world it may feel like it.  The coming global recession is not going to be fun.

We have now reached a point where it has become “normal” for governments and central banks to throw money at one financial crisis after another.

At one time, bailouts were so unusual that they provoked a great deal of outrage.

Today, bailouts have become standard operating procedure.

The bailouts will continue to get larger and larger, and authorities all over the globe will do their very best to keep the house of cards from coming crashing down.

Unfortunately, they will not be successful.