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Policy makers boosted foreign currency holdings by $413 billion last quarter, the most since at least 2003, to $7.3 trillion, according to data compiled by Bloomberg. Nations reporting currency breakdowns put 63 percent of the new cash into euros and yen in April, May and June, the latest Barclays Capital data show. That’s the highest percentage in any quarter with more than an $80 billion increase.

World leaders are acting on threats to dump the dollar while the Obama administration shows a willingness to tolerate a weaker currency in an effort to boost exports and the economy as long as it doesn’t drive away the nation’s creditors. The diversification signals that the currency won’t rebound anytime soon after losing 10.3 percent on a trade-weighted basis the past six months, the biggest drop since 1991.

“Global central banks are getting more serious about diversification, whereas in the past they used to just talk about it,” said Steven Englander, a former Federal Reserve researcher who is now the chief U.S. currency strategist at Barclays in New York. “It looks like they are really backing away from the dollar.”

Sliding Share

The dollar’s 37 percent share of new reserves fell from about a 63 percent average since 1999. Englander concluded in a report that the trend “accelerated” in the third quarter. He said in an interview that “for the next couple of months, the forces are still in place” for continued diversification.

An “embarrassing affair,” is how one German diplomat described it. The official could also have added: potentially damaging to trans-Atlantic relations.

In an operation reported on by SPIEGEL over the weekend, US soldiers entered the freighter Hansa India in the Gulf of Suez at the beginning of October and discovered seven containers full of 7.62 millimeter ammunition suitable for Kalashnikov rifles. An eighth container was full of cartridges suitable for the manufacture of additional rounds. The incident is particularly awkward for Berlin as the Hansa India is registered to the Hamburg-based shipping company Leonhardt & Blumberg.

Investigators suspect that the arms were part of an Iranian shipment bound for either the Syrian army or for Hezbollah, the militant Islamist group. US officials have pointed out that the delivery is in violation of United Nations Security Council Resolution 1747, which prohibits arms shipments either into or out of Iran.

According to Leonhardt & Blumberg, the 243-meter-long (297-foot-long) ship has for years been under charter to the state-owned shipping company Islamic Republic of Iran Shipping Lines. Two US warships halted the Hansa India after receiving a tip-off from intelligence services.

Following an intervention by the German government, the US allowed the ship to continue on to its destination in Malta, where the containers were secured.

German Pistols on the Black Market

Meanwhile, the German radio station NDR reported over the weekend that German-made pistols have become a mainstay on the black market in Afghanistan and Pakistan. According to the report, the German Defense Ministry delivered 10,000 Walther P1 pistols to Afghanistan for use by the country’s fledgling army and police force.

“The evidence that our democracy is failing is overwhelming and yet those with the biggest interest in sustaining the current system – the Westminster village, the media and particularly the political parties, including this one – are the groups most in denial about what is really happening to our democracy.” (Brian Wheeler, ‘Dyke in BBC “conspiracy” claim,’ BBC website, September 20, 2009; http://news.bbc.co.uk/go/pr/fr/-/2/hi/uk_news/politics/8265628.stm)

Dyke argued there had never been a greater separation between the “political class” and the public:

“I tried and failed to get the problem properly discussed when I was at the BBC and I was stopped, interestingly, by a combination of the politicos on the board of governors, one of whom [Baroness Sarah Hogg] was married to the man who claimed for cleaning his moat, the cabinet interestingly – the Labour cabinet – who decided to have a meeting, only about what we were trying to discuss, and the political journalists at the BBC.

“Why? Because, collectively, they are all part of the problem. They are part of one Westminster conspiracy. They don’t want anything to change. It’s not in their interests.”

Dyke said the MPs’ expenses scandal had been “British democracy’s Berlin Wall moment” but the opportunity to change the system was fading. He added:

Drivers could be forced to pay to use the capital’s busiest roads as Mr Johnson seeks to plug a multi-million pound hole in the Transport for London (TfL) budget.

The extra charges would come in addition to the congestion charge, which costs £8 per day or more if not paid on time, and could be up to £1.34 a mile if previous government proposals are followed.

A commuter making a 12-mile round trip into central London by car during the day could therefore pay more than £20.

The busiest areas in London would be targeted. These include Edgware Road, Marble Arch, Hyde Park Corner, Embankment and busy suburban areas such as Croydon and Greenwich.

An IT outage crashed airport check-in systems, as well as on-line bookings and call centre systems about 9.30am yesterday, affecting more than 10,000 passengers and throwing airports into chaos.

The airline said most systems were restored around 1.30pm, but the passenger backlog did not start to clear until self check-in kiosks were up and running again about 3.30pm.

Air NZ and IBM were to meet today to discuss the fault.

Meanwhile, the contents of Mr Fyfe’s email were made public by Computerworld.

He said he struggled “to recall a time where I have seen a supplier so slow to react to a catastrophic system failure such as this and so unwilling to accept responsibility and apologise to its client and its client’s customers” during his working career.

“We were left high and dry and this is simply unacceptable.

“My expectations of IBM were far higher than the amateur results that were delivered yesterday, and I have been left with no option but to ask the IT team to review the full range of options available to us to ensure we have an IT supplier whom we have confidence in and one who understands and is fully committed to our business and the needs of our customers.”

Air NZ’s short haul airlines group general manager, Bruce Parton, told Radio New Zealand the fault appeared to have been caused by a power failure, followed by a delay in a back-up generator running.

Record lows were reported at Los Angeles International Airport, Lake Arrowhead, Idylwild, Yorba Linda, Escondido and Lake Elsinore, among other places. Some broke records set in the 1920s and 1940s.

The cool weather will continue for the next few days, with lows in the 50s and highs in the mid-70s. Temperatures will increase by the weekend.

The cool weather and high humidity is helping firefighters battling the Sheep fire in San Bernardino County, which broke out Saturday and has burned more than 7,000 acres.

Last year it was reported that critical levels of debris circling the Earth were threatening astronauts’ lives and the future of the multibillion-pound satellite communications industry. But senior figures at the German Aerospace Centre (DLR) told the Observer they have been given the go-ahead to tackle a crisis that will come to a head in the next five to 10 years as more orbiting objects run out of fuel.

Their robots will dock with failing satellites to carry out repairs or push them into “graveyard orbits”, freeing vital space in geostationary orbit. This is the narrow band 22,000 miles above the Earth in which orbiting objects appear fixed at the same point. More than 200 dead satellites litter this orbit. Within 10 years that number could increase fivefold, the International Association for the Advancement of Space Safety has warned.

Klaus Landzettel, head of space robotics at DLR, said engineering advances, including the development of machines that can withstand temperatures ranging from -170C (-274F) to 200C (392F), meant that the German robots will be “ready to be used on any satellite, whether it’s designed to be docked or not”.

Former Iowa Governor Tom Vilsack is now the Secretary of Agriculture, an appointment that took place despite massive public outcry. What was needed for an effective Secretary of Agriculture was someone who would develop and implement a plan that promotes family-scale farming and a safe and nutritious food system with a sustainable and organic vision.

What we got was yet another politician who’s already made room in his bed for the industry lobby. As the Organic Consumers Association (OCA) points out:[3]

* Vilsack has been a strong supporter of genetically engineered crops, including bio-pharmaceutical corn

* The biggest biotechnology industry group, the Biotechnology Industry Organization, named Vilsack Governor of the Year. He was also the founder and former chair of the Governor’s Biotechnology Partnership.

* When Vilsack created the Iowa Values Fund, his first poster child of economic development potential was Trans Ova and their pursuit of cloning dairy cows.

* The undemocratic and highly unpopular 2005 seed pre-emption bill was Vilsack’s brainchild. The law strips local government’s right to regulated genetically engineered seed (including where GE can be grown, maintaining GE-free buffers or banning pharma corn locally)

* Vilsack is an ardent supporter of corn and soy-based biofuels, which use as much or more fossil fuel energy to produce them as they generate, while driving up world food prices and literally starving the poor.

* Overall, Vilsack’s record is one of aiding and abetting Concentrated Animal Feeding Operations (CAFOs) or factory farms and promoting animal cloning.

You may also be interested to know that Vilsack is widely regarded as a shill for biotech giants like Monsanto (he even reportedly often travels in Monsanto’s jet)![4]

The New Senior Advisor for the FDA is a Former Monsanto VP!

Michael Taylor, a former vice president of public policy and chief lobbyist at Monsanto Company, is the new senior advisor for the U.S. Food and Drug Administration (FDA).

Who is Michael Taylor? He is the person who “oversaw the creation of GMO policy,” according to Jeffrey Smith, the leading spokesperson on the dangers of GM foods. Smith continues:

“If GMOs are indeed responsible for massive sickness and death, then the individual who oversaw the FDA policy that facilitated their introduction holds a uniquely infamous role in human history. That person is Michael Taylor. He had been Monsanto’s attorney before becoming policy chief at the FDA. Soon after, he became Monsanto’s vice president and chief lobbyist.”[5]

The FDA policy being referred to is the 1992 GMO policy, which stated:

“The agency is not aware of any information showing that foods derived by these new methods [genetic engineering] differ from other foods in any meaningful or uniform way.”

In reality, there was major concern among FDA scientists that GM foods were in fact different than natural foods, and that their creation could prompt unknown and unpredictable health problems.

Along with being a key player in the initial pushing of GM foods onto Americans’ plates (without any required safety studies), Taylor also oversaw the policy regarding Monsanto’s genetically engineered bovine growth hormone (rbGH/rbST).

This growth hormone, which has been banned in Canada, Europe, Japan, Australia and New Zealand because of cancer risks and other health concerns, was approved in the United States while Taylor was in charge at the FDA. Smith writes:

“Taylor also determined that milk from injected cows did not require any special labeling. And as a gift to his future employer Monsanto, he wrote a white paper suggesting that if companies ever had the audacity to label their products as not using rbGH, they should also include a disclaimer stating that according to the FDA, there is no difference between milk from treated and untreated cows.”

Taylor’s white paper, which again was untrue as even FDA scientists acknowledged differences in the rbGH milk, allowed Monsanto to sue dairies that labeled their products rbGH-free.

Dennis Wolff, Another Monsanto “Yes Man,” May be the Next Under-Secretary of Agriculture for Food Safety

In another ironic turn of events, it’s rumored that Pennsylvania Agriculture Secretary Dennis Wolff may be appointed the new Under-Secretary of Agriculture for Food Safety — the top food safety post at the USDA.

Wolff declared that labeling products rbGH-free was against the law, and ordered all such labels to be removed from Pennsylvania. Fortunately, due to consumer demand Pennsylvania’s Governor Ed Rendell stepped in and stopped the ban on rbGH-free labels (although he did require such claims to include Taylor’s FDA disclaimer that there is no difference between milk from treated and untreated cows).

As Jeffrey Smith explains:

“Rumor has it that the reason why Pennsylvania’s governor is supporting Wolff’s appointment is to get him out of the state — after he “screwed up so badly” with the rbGH decision. Oh great, governor. Thanks.”[6]

Spuds still in the ground could be saved by a layer of snow; a dusting had fallen on Bozeman and the surrounding region by Sunday.

Nina Zydak, director of the Montana State University Potato Lab, said most area farmers have already started digging.

But many farmers expect to lose some of their potatoes.

“It’s over,” Larry Van Dyke, who owns Van Dyke Farms in Townsend, told the Bozeman Chronicle.

He says when it’s this cold for too long, the frost penetrates and the taters are toast.

The main goal now is to make sure the spoiled potatoes don’t make it into his cellar.