Who Owns the North Pole - Part 43- China will b uy it

There is no unclaimed land available in the Arctic, because Russia, Canada, Denmark, Norway and the United States carved up the region centuries ago. But this fact doesn't discourage a resource-hungry China, which knows it can buy the access it needs. China grows hungry for Arctic resources and shipping routes as northern ice melts. China is fully aware of the enormous potential for offshore oil and natural gas development in the Arctic, which holds at least 20 per cent of the world's undiscovered reserves.

Chinese state-owned companies have already invested tens of billions of dollars in Canada's northern tar sands. Three years ago, the Chinese government lent a Russian company $25bn so that it could build an oil pipeline from Siberia to China, which now carries 300,000 barrels per day. Russian oil, natural gas and minerals are also moving eastwards to China via the Northern Sea Route along Siberia's increasingly ice-free Arctic coastline. And soon, natural gas will be shipped to China from two new liquefaction terminals on Canada's northwest coast.

Most of China's oil imports pass through the Strait of Malacca between Malaysia and Indonesia. In Beijing, this strategic weakness is referred to as the "Malacca dilemma". In addition, some ships loop around Africa to avoid the pirate-infested approaches to the Suez Canal, while others loop around the bottom of South America because they cannot fit into the Panama Canal. Either way, the extra distance adds additional costs - in fuel, salaries and foregone business. In late summer, the Northern Sea Route already enables a 10,000-km shortcut to Europe, while the Northwest Passage through Canada's Arctic islands offers a 7,000-km shortcut to the Atlantic seaboard of the US. With time, a third route may well become available "over the top" across the central Arctic Ocean. These developments are celebrated in China, where the media refer to the Northern Sea Route as the "Arctic Golden Waterway". Professor Bin Yang of Shanghai Maritime University estimates that the Northern Sea Route alone could save China a staggering $60bn to $120bn annually. China already has the world's largest non-nuclear powered icebreaker and is now building a second, smaller vessel. Chinese companies are also building or commissioning dozens of ice-strengthened cargo ships and tankers, some of them with dual-directional technology that enables them to sail normally on open seas, then turn round and use their propellers to chew their way through sea-ice.

Under the law of the sea, the Arctic countries have jurisdiction over that oil and gas because coastal countries have exclusive rights to any natural resource within 200 nautical miles of their coasts. They may also have jurisdiction over seabed resources even further out - if they can demonstrate scientifically that the shape and geology of the ocean floor constitute a "natural prolongation" of the continental shelf. China does not contest these rights, because it relies on the exact same rules to support its extensive claims in the South and East China Seas. Nor is there any need for China to challenge the claims of the Arctic countries. Offshore oil and gas is expensive to find, extract and transport - especially in an extremely remote and often inhospitable region. To access these riches, Arctic countries will need strong markets and vast amounts of capital, both of which China is well positioned to provide.

But beyond the extensive rights of the coastal states, near the centre of the Arctic Ocean, lies an area where the deep seabed constitutes the "common heritage of mankind" and the water column constitutes "high seas". If the central Arctic Ocean becomes the site of economic activity, China will most certainly be a player. At some point, China might wish to explore the deep Arctic Ocean for magnesium nodules or frozen gas hydrates. China is also the world's largest fishing nation, and the Arctic Ocean is closer than some of the places currently frequented by its distant-waters fleet. Coastal states can regulate fishing within 200 nautical miles of their shores, but beyond that distance, regulation only takes place through regional fisheries organisations.

The Chinese government has so far chosen not to take sides in legal disputes between the US on the one hand, and Russia and Canada on the other, over the status of the Northern Sea Route and Northwest Passage. The US claims they are "international straits", Russia and Canada claim they are "internal waters", and China, it seems, just wants to make money.

In 2009, China applied for permanent observer status at the Arctic Council, a regional organisation composed of Canada, Denmark, Finland, Iceland, Norway, Russia, Sweden and the US but then, in 2011, the Arctic Council adopted new criteria for permanent observers, including the condition that they recognise "the Arctic States' right to administer the Arctic Ocean under the Convention of the Law of the Sea". China will likely never accept this condition, which as currently worded, implies that Arctic states have the right to administer the entire Arctic Ocean. In actual fact, China and other non-Arctic countries are fully entitled to navigate freely beyond 12 miles from shore, to fish beyond 200 miles from shore, and to exploit seabed resources that lie beyond the continental shelf.

China is an integral part of the globalised economy and that now includes the North Pole

VICTIMS OF THE DOWNTURN

Much is made of the hardships suffered by bankers and investors in the recent economic downturn, but the real sufferers are of course the working class. "But the real victims of the financial collapse in the US state of Alabama's most populous county are its poorest residents - forced to bathe in bottled water and use portable toilets after being cut off from the mains supply. And there is widespread anger in Jefferson County that swingeing sewerage rate hikes could have been avoided but for the greed, corruption and incompetence of local politicians." (BBC News, 14 December) Some investors may have had to cut back on their consumption of champagne but they still have plenty of water to drink and can still go to the john! RD

No housing crisis for some

Dick Place in the Grange area of Edinburgh is Scotland's most expensive residential street, according to data.

The average price of a property was estimated at just over £1.5m. A total of 13 of the 20 most expensive streets named were located in Edinburgh. Some of the other most expensive addresses in the capital were Ann Street, with an average property price of £1,188,000, and Kinellan Road (£992,000).

The next most expensive streets were in the west of Aberdeen - Rubislaw Den South (£1,430,000) and Rubislaw Den North (£1,190,000).

The Glasgow area's most expensive streets were Burnside Road (£974,000) in the Whitecraigs area of East Renfrewshire and Bowmore Crescent (£908,000) in Thorntonhall, South Lanarkshire.

Outside Scotland's three major cities, the most expensive homes were on Queens Crescent in Auchterarder, Perthshire, with an average sale price of nearly £1.2m.

HAPPY HOLIDAYS

We are now at that time of the year when many workers are hunting through glossy holiday brochures for an escape for a couple of weeks in the sun. No such search is necessary for members of the owning class as a recent court case shows. "An armed gang stole the Dubai Royal Family's £2 million holiday spending money as it was being loaded into a car boot, a court heard. The money, in £50 bundles in two suitcases which each contained £1 million, was being placed into the boot outside the Emirates Bank in Knightsbridge, West London, when the armed robbers struck on June 24, jurors were told." (Daily Mail, 13 December) It looks as though the accused will be having a far from pleasant holiday at her majesty's pleasure unlike the Dubai Royals with their £2 million spending money. Like all members of the owning class their lives are one long holiday. RD

dirty air

People living and working in Scotland’s major cities are being exposed to “dangerous” levels of air pollution, figures have revealed.

Analysis of Scottish Air Quality data from 2011 showed levels of nitrogen dioxide (NO2) in parts of Aberdeen, Dundee, Edinburgh, Glasgow and Perth were in breach of European Union targets of 40 micrograms per cubic metre of air designed to protect health. The average life expectancy in the most polluted cities in Europe is reduced by more than two years, EU chiefs have estimated.

“As a result of a complacent approach, thousands of people are exposed to dangerous levels of air pollution in Scotland’s major cities..." Dr Dan Barlow, WWF Scotland head of policy said

FAMILY PROBLEMS

Many working class families face problems today with youth unemployment at its highest for years, but even the mega-rich have their problems. "Billionaire Bernie Ecclestone has accused his daughters of squandering the money he set aside to provide for his future grandchildren. The Formula 1 boss said he had put £3 billion in a trust fund for his glamorous daughters Tamara, 27, and Petra, 22, to invest in property . But he has now expressed his exasperation that the money has instead been used to fund Petra's lavish £12 million wedding earlier this year, and to renovate both girls' luxury mansions to cater to their whimsical, indulgent tastes." (Daily Mail, 12 December) RD

There are bankers and then there are bank staff

While investment bankers collect hundreds of thousands of pounds each year in salary and bonuses, front-line branch staff are more modestly paid, with starting salaries typically around £14,000 a year.

One Lloyds insider said: “It’s always the people on the ground who suffer. You could earn more working in Asda..."

Cashiers at the high street lender earn commission by referring clients to sales staff, who talk them through the options for mortgages, savings accounts and other products. But the bank has not only cut the commission from £2 to 60 pence as part of a clampdown on costs, and it has increased the target for each cashier from 72 referrals every three months to 77.

Celebrating Christ Mass

According to the New American Stndard Bible Jesus says in Matthew 10 Verse 34

“Do not think that I came to bring peace on Earth; I did not come to bring peace, but a sword. For I came to set a man against his father, and a daughter against her mother, and a daughter-in-law against her mother-in-law; and a man’s enemies will be the members of his household. He who loves father or mother more than Me is not worthy of Me; and he who loves son or daughter more than Me is not worthy of Me."

Merry Marxmas

KARL'S QUOTES

On surplus-value coming free to the capitalist,

"The circulation mechanism, however, has shown if the capitalist class casts money into circulation to be spent as revenue, it withdraws this same money again from circulation, and so the same process can always begin anew; considered as a capitalist class, therefore, it remains now as before in possession of this sum of money needed for the realization of its surplus-value. If the capitalist not only withdraws surplus-value from the commodity market in the form of commodities for his consumption fund, but at the same time the money with which he buys these commodities flows back to him, he has evidently withdrawn the commodities from circulation without an equivalent. They cost him nothing, even though he pays for them with money. If I buy commodities for one pound sterling, and the seller of these commodities gives me back my one pound in exchange for a surplus product that costs me nothing, then I have obviously received the commodities for nothing. The constant repetition of this operation, in no way alters the fact that I constantly withdraw commodities and constantly remain in possession of the one pound, even though I part with it temporarily in order to obtain these commodities. The capitalist constantly receives this money back as the realization of surplus-value that cost him nothing."

(Capital, Volume II, pp550/551, Penguin Classics edition).

CALIFORNIAN NIGHTMARE

"With the prospect of 305,400 Californians losing unemployment insurance on Dec. 31, local labor unions and unemployed workers held a candlelight vigil Thursday to urge Congress to extend their benefits. Federal unemployment insurance, which currently adds up to 73 weeks of benefits once state coverage runs out, is set to expire for more than two million Americans at the end of the year. "Without it, it almost puts me in the street," said unemployed iron worker Doug Von Mauw." (San Diego 6 News, 8 December) RD

ALLEY CAT MORALITY

There are many reasons to be a socialist and one of the most powerful is the insanity and cruelty of capitalism. It is doubtful if you could find a better example of social madness than this. "A black cat in Italy has lived up to its reputation for good luck after inheriting 10 million euros (£8.5 million) from his adoptive owner, a widowed heiress. Four-year-old Tommaso, who was saved from a hardscrabble existence on the mean streets of Rome, as a kitten, is now the proud owner of cash, shares and a property empire which includes flats and houses in Rome and Milan and land in Calabria." (Daily Telegraph, 10 December) While millions strive to survive on $1.25 a day we have millionaire pussycats. Capitalism has a strange set of moral standards. RD

Housing Shortage?

Bank of Scotland research suggested about 105,000 homes in Scotland were not being used. This meant about one in 25 houses was empty.

Kristen Hubert, from Shelter Scotland, said: "The 100,000 figure used by the Bank of Scotland includes property that is only empty for a brief period, between tenants or owners. What is really important is those which are empty for longer, and that problem is really in the private sector."

Shelter Scotland claimed there were 23,000 privately-owned empty homes.

LAND OF THE FREE?

"Does America joyously lead the world in something? Yes, but 'tis not a joy, but the sad fact that the United States of America is a leader in incarceration. There are about 2.3 million people behind bars - one of every 100 citizens. The prison population has more than doubled over the past 15 years. America has several times the number in jails of other countries: four times Israel, six times Canada or China, eight times Germany, and 13 times more than Japan. America, with a bit more than 4% of the world's population, accounts for one-fourth of the world's prisons and has more inmates than the leading 35 European countries combined." (Oklahoma Observer, 7 December) RD

A MAD, MAD WORLD

We are often told that the wages and prices society is the only possible way to run the world and that the incentive of money is the most logical solution to all social problems. Try telling that to this family. "A Tennessee couple helplessly watched their home burn to the ground, along with all of their possessions, because they did not pay a $75 annual fee to the local fire department. Vicky Bell told the NBC affiliate WPSD-TV that she called 911 when her mobile home in ObionCounty caught fire. Firefighters arrived on the scene but as the fire raged, they simply stood by and did nothing. ...South Fulton Mayor David Crocker defended the fire department, saying that if firefighters responded to non-subscribers, no one would have an incentive to pay the fee." (Yahoo News, 6 December) RD

MIND THE GAP

Supporters of capitalism often claim that while capitalism is not perfect at least it is improving and its worst inequalities are lessening. How do they explain this report then we wonder. "The pay gap between the highest and lowest earners in the UK has grown more quickly than in any other high-income country since 1975, a report has said. Research by the Organisation for Economic Co-operation and Development (OECD) found the sharp increase in income inequality, which began in 2005, leaves Britain well above the group's average. ....Data showed the money earned by the country's top 1% of earners doubled from 7.1% of the total UK income in 1970 to 14.3% in 2005." (Huffington Post, 5 December) In 35 years the top "earners" have doubled their loot. RD

PROFIT AT ANY COST

There is no limit to the efforts capitalist firms will go to in order to capture a bigger slice of the market. Here is a particularly nasty example of this competition. "Unhealthy food is being "shamelessly" promoted to children online to get around bans on television adverts, campaigners have claimed. The British Heart Foundation cited websites by Cadbury's and Nestle as examples of "cynical marketing". Sites used childish language, games and free gifts to appeal to children, according to the report." (BBC News, 18 December) RD

A WONDERFUL TOWN?

At a time when many New Yorkers are facing the prospect of unemployment and re-possession of their homes it is worth noting that not all New Yorkers are facing homelessness. "Step through the weathered front door of a 19th-century building on Lafayette Street in SoHo and you face a window of blue water - a view into the depths of a 39-foot-long swimming pool. It is an unusually edgy entrance - crafted by a filmmaker who is a master of the horror movie -to what is currently the most expensive residential home for rent in Manhattan. The huge loft-like, 13,000-square-foot townhouse went on the market Wednesday for $100,000 a month furnished, or $50,000 a week, or $20,000 a night for short stays." (Wall Street Journal, 5 December) RD

CLUELESS ABOUT THE JOBLESS

One of the recurring problems of capitalism is the problem of unemployment, and one of the constant claims of governments is that they can solve the problem. "The number of people out of work in Britain hit its highest level for 17 years, fuelling worries that the economy is heading back towards recession. In the three months to October, the jobless total rose to 2.64m, according to figures released by the Office for National Statistics - 8.3% of the economically active population are now unemployed. Joblessness among 16 to 24-year-olds reached 1.003m, its highest level since records began in 1992." (Sunday Times, 18 December) Like all previous governments the present one cannot deal with the booms and slumps of the capitalist market place that lead inevitably to unemployment. RD

A HEARTLESS SOCIETY

In its relentless drive for profits capitalism will go to any lengths, even if that means exploiting the naivety of the mentally disabled. "People with dementia are being cheated out of at least £100 million a year by banks, cold callers, door-to-door salesmen and even their carers according to research. A report from the Alzheimer's Society found that more than 100,000 people with dementia have been victims of fraud or abuse and calls on companies renowned for hard-sell tactics to change their ways." (Times, 14 December) This report's appeal to hard-headed business people for some sort of compassion is in itself a glaring example of naivety. RD

MAKING AN ARSE OF LITERATURE

Shakespeare, Dickens and Doestevesky had great difficulties trying to get a publisher but of course they lacked two essential attributes beloved by capitalism. "The younger sister of the Duchess of Cambridge has been the subject of a fierce bidding war by some of Britain's largest publishers for her first book. It is understood that publisher Michael Joseph, an imprint of Penguin books, last week signed her up to a publishing deal worth £400,000." ( Daily Telegraph, 23 November) You see what William, Charles and Fydor lacked was they had not got the "bottom of the year" according to the tabloid press and were not related to the next queen of England. One wonders at their success after such disadvantages. RD