http://www.boston.com/…

RENO - A few tents cropped up by the railroad tracks, pitched by men left with nowhere to go once the emergency winter shelter closed for the summer.

Then others appeared - people who had lost their jobs to the ailing economy, or newcomers who had moved to Reno for work and found no one was hiring.

Within weeks, more than 150 people were living in tents big and small, barely a foot apart in a patch of dirt slated to be a parking lot for a campus of shelters Reno is building for its homeless population.

Like many other cities, Reno has found itself with a “tent city” - an encampment of people who had nowhere else to go.

From Seattle to Athens, Ga., homeless advocacy groups and city agencies are reporting the most visible rise in homeless encampments in a generation.

Nearly 61 percent of local and state homeless coalitions say they’ve experienced a rise in homelessness since the foreclosure crisis began in 2007, according to a report by the National Coalition for the Homeless. The group says the problem has worsened since the report’s release in April, with foreclosures mounting, gas and food prices rising, and the job market tightening.

“It’s clear that poverty and homelessness have increased,” said Michael Stoops, acting executive director of the coalition. “The economy is in chaos, we’re in an unofficial recession, and Americans are worried, from the homeless to the middle class, about their future.”

While the middle class is being wiped out and these tent towns are gathering more and more residents the federal government is bailing out the elite. Things just keep getting worse.

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Ethanol advocates claim that the biofuel is a cheap, renewable energy source that reduces pollution and our dependence on foreign oil. It sounds too good to be true—and it is.

Ethanol, especially the corn-based variety, is bad for taxpayers, bad for consumers, bad for the environment, and horrible for the world’s poor. In fact, even environmentalists are critical of ethanol subsidies these days. The ethanol craze has distorted markets and increased the price of food worldwide. The only people who still support ethanol subsidies are the ethanol producers—and politicians from both sides of the aisle. Together, they make sure the subsidies keep coming.

In a recent interview about the current food crisis, Sen. Charles Grassley (R-Iowa) said, “If part of our problem is that the Chinese are going to eat meat and you’ve got to have corn and soybeans to feed the Chinese their meat, then why isn’t it just as legitimate for the Chinese to go back and eat rice as it is for us to change our policy on corn to ethanol?”

Let them eat rice? So that American taxpayers can continue to pay people to turn corn into fuel?

Silly senator, corn is for food.

This seven-and-a-half-minute video explores the case against ethanol subsidies. Hosted by reason’s Nick Gillespie and featuring Science Correspondent Ronald Bailey, it was produced by Paul Feine and PF Bentley.

For an audio podcast version, go here.

http://money.cnn.com/…

In another indication of growing inflation, wholesale prices increased in July to the highest annual rate in 27 years, according to a government report released Tuesday.

The annual Producer Price Index for finished goods rose 9.8% in the 12 months that ended in July.

The jump in wholesale prices is the fastest rate of increase since a 10.4% bump-up in June 1981, according to Joseph Kowal, economist at the Bureau of Labor Statistics.

The Labor Department also reported that PPI rose 1.2% in July, after increasing 1.8% in June. Analysts polled by Briefing.com had expected an increase of only 0.6%.

The surge in producer prices is in large part due to higher energy prices, said Doug Roberts, chief investment strategist for ChannelCapitalResearch.com.

Crude oil prices doubled in the 12 months through July, but have since fallen nearly 24% from their peak hit last month.

The latest PPI report doesn’t reflect the recent drop in crude prices, but Roberts expects future readings to ease.

“The topline is a bit behind the curve - that will fall in the future,” he said. “Right now, it has not really taken into account the recent decrease in energy prices.”

Core inflation: The so so-called core PPI number, which excludes food and energy prices, rose by 0.7% - more than the 0.2% increase analysts had expected.

The core inflation index is “the more long term rate” because it indicates how much inflation “is seeping into the economy” beyond the volatile energy prices, said Roberts.

The index for finished goods other than foods and energy has advanced by 3.5% in the past year, according to the report.

Food and energy: The indexes that measure producers’ food and energy prices increased in July, but at a more moderate pace than in the previous two months.

Energy prices rose by 3.1%, after a 6.0% jump in energy prices in June and a 4.9% jump in May. In the 12 months through July, prices for finished energy goods have surged 28%.

Food prices rose by only 0.3% in July, after increasing by 1.5% in June and 0.8% in May. In a year-over-year comparison, prices for finished consumer foods have increased by 8.7%, according to the report.

The much more moderate increase in food prices in July compared with June is the one bright spot in the otherwise glum inflation report, according to Roberts.

Even though energy prices in July were still on the rise last month, “if you are seeing the other big component of inflation go down a bit, that could indicate a positive for the future,” he said.

The government reported last week that the the Consumer Price Index jumped by 0.8% in July, which was twice the increase that economists had expected.

And don’t forget that consumer price inflation is at 5.6%. Highest in 17 years. Assuming you can trust the government’s numbers. Which you can’t. So maybe double that.

Fun isn’t it? Thank the Federal Reserve, Congress, Alan Greenspan and Ben Bernanke.

http://www.chron.com/…

The Environmental Protection Agency today denied Texas Gov. Rick Perry’s request to reduce federal ethanol requirements this year.

The decision dealt a blow to Perry and a broad consortium of industry groups that claim rising U.S. ethanol output is inflating corn prices, hurting livestock and food producers and boosting grocery bills.

But in a noon conference call, EPA Administrator Stephen Johnson said the federal Renewable Fuel Standard that sets the ethanol requirement isn’t causing “severe economic harm,” which would be required to justify a waiver, and is improving national security and benefiting farmers.

In a statement, Perry said he was “greatly disappointed with the EPA’s inability to look past the good intentions of this policy to see the significant harm it is doing to farmers, ranchers and American households.”

“For the EPA to assert that this federal mandate is not affecting food prices not only goes against common sense, but every American’s grocery bill,” he said.

• National security claim: bullshit
• Helping farmer claim: obviously true, the government is subsidizing the manufacturing of the ethanol and forcing gas companies to include it into their fuel.
• Helping the environment claim: From Wikipedia “Combustion of ethanol in an internal combustion engine yields many of the products of incomplete combustion that are produced by gasoline and significantly larger amounts of formaldehyde and related species such as formalin, acetaldehyde, etc..^[40] This leads to a significantly larger photochemical reactivity that generates much more ground level ozone.^[41]” At an 34% energy yield it’s far less efficient too when compared to sugar cane ethanol with an 800% yield.

Companies and organizations which very likely won’t be getting my business in the future.

• Target
• TIME
• Home Depot
• Bank of America
• American Red Cross
• Big Brother Big Sister
• Boys & Girls Clubs of America
• Habitat for Humanity
• “I Have a Dream” Foundation
• National Peace Corps Association
• Special Olympics
• United Way of America

This is a subset of the list available at BeTheChangeInc.org and is organizations that stood out for me. AARP, Target, TIME, The Home Depot Foundation and Bank of America are sponsoring the 2008 Service Nation Summit in NYC on… wait for it…. September 11-12.

Mark Edge of Free Talk Live has contacted Target to get their official position but as of last night’s show had not received a response.

I noticed that Americans for a National Service Act is a member of the Service Nation coalition. Comments after the jump.

Read More…

http://ap.google.com/…

President Raul Castro warned Cubans on Friday to prepare for a “realistic” brand of communism that is economically viable and does away with excessive state subsidies designed to promote equality on the island.

Addressing Cuba’s parliament in its first session since lawmakers selected him to succeed his older brother Fidel in February, Raul Castro announced no major reforms, but suggested that global economic turbulence could lead to further belt-tightening on the island.

“Socialism means social justice and equality, but equality of rights, of opportunities, not of income,” the 77-year-old president said in a speech that was taped and later aired on national television. “Equality is not egalitarianism.”

That sentiment marks a break with his brother, who spent decades saying Cuba was building an egalitarian society. But the new president nevertheless ended by proclaiming he had “learned everything” from Fidel, drawing a standing ovation.

Since succeeding his brother, Raul Castro has authorized Cubans to legally purchase computers, stay in luxury hotels and obtain cell phones in their own names. His government has raised some salaries and done away with wage limits, allowing state workers to earn more for better performance.

Cuba’s rubber-stamp parliament convenes for only for a few hours twice a year and rumors were rampant that Friday’s session would see an easing of restrictions on travel abroad or a strengthening of wages by increasing the value of the peso, worth about 21-1 against the U.S. dollar.

The government controls well over 90 percent of the economy and the average salary is just 408 pesos per month, US$19.50, though most Cubans get free housing, health care, education and ration cards that cover basic food needs.

Castro said that in “the matter of salaries, we’d all like to go faster, but it’s necessary for us to act with realism.”

“The situation could even get worse,” he said of the global economy. “We will continue to do what’s within our reach so that a series of adversities have less effect on our people, but some impact is inevitable in certain products and sectors.”

Economy Minister Jose Luis Rodriguez said this week that skyrocketing global food and oil prices would cause “inevitable adjustments and restrictions” for Cuba’s economy.

Castro said he supported a proposal to gradually push back the retirement age five years, to 65 for men and 60 for women. The move, which parliament plans to vote on in December, is part of an effort to soften the blow of a disproportionately elderly work force.

Castro acknowledged shortages that plague Cubans, but said “we have to be conscious that each increase in salary that is approved or price that is subsidized adhere to economic reality.”

He also shot back at U.S. officials who have dismissed the small changes he has overseen in Cuba as meaningless.

“Faced with the measures adopted lately in our country, some official in the United States comes out immediately, from a spokesman to the president, to brand them ‘insufficient’ or ‘cosmetic,’” Castro said. “Although no one here asked their opinion, I reiterate that we will never make any decision, not even the smallest one, as a result of pressure or blackmail.”

For the fourth straight parliamentary session, Raul Castro sat next to an empty chair set aside for his ailing brother.

The elder Castro, who turns 82 next month, has not been seen in public since undergoing emergency intestinal surgery in July 2006.

Interesting indeed.