A Sustainable Idea: Create State-owned Banks
Without a hammer, the house designs of the world’s greatest architect are worthless. Without a kitchen, a five-star chef’s recipes are of no use. And environmentalists who dream of a sustainable world but are without the tools to build it can’t do much.
A small energy company wants to build a wind farm. A young person hopes to be an organic farmer. A homeowner looks to erect solar panels on her roof. A school aspires to super-insulate its building. An entrepreneur plans to start a local organic food business. Another wants to start a local construction business to build the highly energy-efficient and furnace-free Passiv Haus.
What do these steps toward sustainability have in common? They all require an upfront capital investment, namely money. Initially, it takes some green to be green. Without financing the best intentions to cut carbon fall short.
Ohioans can try to conserve energy at home, but if 86 percent of their electricity is coming from coal-fired power plants, how much progress can be made? And in a poorly-insulated, drafty house, or driving a gas-guzzler how much energy can one save? At some point personal behavior changes aren’t enough. To become sustainable, we need large-scale investments, which require capital.
Unfortunately money and lines of credit to do so are not easy to come by these days. Many of us are barely able to keep up with our current expenses and increasingly governments are cutting back. Let’s face it: The financing for sustainable infrastructure projects and start-up businesses comes from private banks, lending at compound interest. If they won’t lend, we can’t go green.
For example, the village of Yellow Springs, where I live, recently cancelled a contract with Columbus-based SolarVision to build a $10 million 2.5-megawatt solar farm on municipal land that was expected to provide 10 percent of the town’s electricity. In 10 years, the community could have purchased the array to have a secure, renewable, locally-produced power source for decades to come.
But the deal was called off because SolarVision struggled to raise money from so-called institutional investors, such as banks, insurance companies and mutual funds, which are now seen as reluctant to support renewable energy projects in the wake of the Obama administration’s Solyndra fiasco last year, as well as concerns that Ohio may revoke its renewable energy portfolio standard, according to Mike Dickman, SolarVision’s vice president. “With all of that, it makes investors run hot and cold,” he said.
If SolarVision could successfully raise the $60 million to $80 million it needs for its planned 10 Ohio solar projects totaling 20.5 megawatts, it could nearly double the current solar capacity of the state. What stands between Ohio and green electricity—and other sustainability projects—are the banks and other reluctant investors.
There has to be another way. In other words, how can we get access to the financial tools necessary to build a sustainable world? The answer may be through public banking, and one state, North Dakota, points the way.
That’s because North Dakota is home to the nation’s only state-owned bank, created in 1919 following a tide of farm foreclosures. The bank, with state revenues as its primary deposit base, leverages capital to lend directly or through partnering with community banks to promote development of commerce, agriculture and industry in the state, whose population of slightly less than 700,000 is about one third the size of metropolitan Cleveland’s.
The North Dakota bank makes loans to local businesses, farmers, college students and others. By partnering with the state bank, local banks can expand their loan portfolios, make bigger loans, retain customers and better compete with the big Wall Street banks. And the interest payments which go to the state bank could be used for additional lending as well as to reduce state taxes.
How exactly would public banks accelerate sustainability efforts though? According to a fact sheet prepared by green-conscious organizers for a proposed public bank in the District of Columbia in the nation’s capital, public banks can help re-localize goods and services within a local economy thus reducing a community’s dependence upon global trade and its high energy costs. And these public banks can invest in infrastructure for electric vehicles, building efficiency improvements, small organic farms and local food distribution systems and community composting and recycling programs.
North Dakota, incidentally, has the lowest unemployment rate in the country and is the only state to have a significant budget surplus every year since the financial crash of 2008, while most states currently have budget shortfalls, according to the California-based Public Banking Institute, which also says that legislation to create a state-owned bank or study the idea has been introduced in about a third of the states since 2010. Ohio is not one of them.
However, at the request of Ohio Rep. Nan Baker the Ohio Legislative Services Commission studied the North Dakota model last year, comparing it with current lending programs in Ohio. The commission's cursory report suggests that a state bank in Ohio, with all state money deposited in it, would adversely affect financial institutions which now act as public depositories for state funds. But the report does note that the Bank of North Dakota has transferred $555 million in profits to North Dakota’s general fund since 1945. (Over the last decade the amount transferred into the general fund has increase to about $30 million a year).
The recently formed Public Banking Institute is promoting creation of public banks in states, counties and cities across America and kicked off this effort with its first national conference in Philadelphia in April. The institute sees public banks as a way to increase government revenues and reduce the pressure for tax increases as the nation confronts the economic crises in the U.S. states.
With the public banking movement gaining momentum, many Americans have been moving their deposits from large commercial banks into community banks. According to the Move Your Money Project, an estimated 10 million accounts have left the largest banks since 2010 while credit union assets rose above $1 trillion this year for the first time ever. And as part of re-localizing our economies, Americans could also divert their investments from Wall Street, which total an estimated $30 trillion, into such ventures as investing in local enterprises and start-ups, upgrading their homes and otherwise financially supporting community sustainability efforts.
Investing in our own communities, combined with promoting public banking in our states, counties and cities, are important steps to take in seeking to channel our savings, investments and tax dollars into building the physical and financial infrastructures that will allow us to live more resiliently on far less energy as we face the consequences of dwindling fossil fuels, climate change and economic decline in the 21st Century.
Visit Public Banking Institute for more information.
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By Ana Maldonado-Contreras
- Your gut is home to trillions of bacteria that are vital for keeping you healthy.
- Some of these microbes help to regulate the immune system.
- New research, which has not yet been peer-reviewed, shows the presence of certain bacteria in the gut may reveal which people are more vulnerable to a more severe case of COVID-19.
You may not know it, but you have an army of microbes living inside of you that are essential for fighting off threats, including the virus that causes COVID-19.
How Do Resident Bacteria Keep You Healthy?<p>Our immune defense is part of a complex biological response against harmful pathogens, such as viruses or bacteria. However, because our bodies are inhabited by trillions of mostly beneficial bacteria, virus and fungi, activation of our immune response is tightly regulated to distinguish between harmful and helpful microbes.</p><p>Our bacteria are spectacular companions diligently helping prime our immune system defenses to combat infections. A seminal study found that mice treated with antibiotics that eliminate bacteria in the gut exhibited an impaired immune response. These animals had low counts of virus-fighting white blood cells, weak antibody responses and poor production of a protein that is vital for <a href="https://doi.org/10.1073/pnas.1019378108" target="_blank">combating viral infection and modulating the immune response</a>.</p><p><a href="https://doi.org/10.1371/journal.pone.0184976" target="_blank" rel="noopener noreferrer">In another study</a>, mice were fed <em>Lactobacillus</em> bacteria, commonly used as probiotic in fermented food. These microbes reduced the severity of influenza infection. The <em>Lactobacillus</em>-treated mice did not lose weight and had only mild lung damage compared with untreated mice. Similarly, others have found that treatment of mice with <em>Lactobacillus</em> protects against different <a href="https://doi.org/10.1038/srep04638" target="_blank" rel="noopener noreferrer">subtypes of</a> <a href="https://doi.org/10.1038/s41598-017-17487-8" target="_blank" rel="noopener noreferrer">influenza</a> <a href="https://doi.org/10.1371/journal.ppat.1008072" target="_blank" rel="noopener noreferrer">virus</a> and human respiratory syncytial virus – the <a href="https://doi.org/10.1038/s41598-019-39602-7" target="_blank" rel="noopener noreferrer">major cause of viral bronchiolitis and pneumonia in children</a>.</p>
Chronic Disease and Microbes<p>Patients with chronic illnesses including Type 2 diabetes, obesity and cardiovascular disease exhibit a hyperactive immune system that fails to recognize a harmless stimulus and is linked to an altered gut microbiome.</p><p>In these chronic diseases, the gut microbiome lacks bacteria that activate <a href="https://doi.org/10.1126/science.1198469" target="_blank" rel="noopener noreferrer">immune cells</a> that block the response against harmless bacteria in our guts. Such alteration of the gut microbiome is also observed in <a href="https://doi.org/10.1073/pnas.1002601107" target="_blank" rel="noopener noreferrer">babies delivered by cesarean section</a>, individuals consuming a poor <a href="https://doi.org/10.1038/nature12820" target="_blank" rel="noopener noreferrer">diet</a> and the <a href="https://doi.org/10.1038/nature11053" target="_blank" rel="noopener noreferrer">elderly</a>.</p><p>In the U.S., 117 million individuals – about half the adult population – <a href="https://health.gov/our-work/food-nutrition/2015-2020-dietary-guidelines/guidelines/" target="_blank" rel="noopener noreferrer">suffer from Type 2 diabetes, obesity, cardiovascular disease or a combination of them</a>. That suggests that half of American adults carry a faulty microbiome army.</p><p>Research in my laboratory focuses on identifying gut bacteria that are critical for creating a balanced immune system, which fights life-threatening bacterial and viral infections, while tolerating the beneficial bacteria in and on us.</p><p>Given that diet affects the diversity of bacteria in the gut, <a href="https://www.umassmed.edu/nutrition/melody-trial-info/" target="_blank" rel="noopener noreferrer">my lab studies show how diet can be used</a> as a therapy for chronic diseases. Using different foods, people can shift their gut microbiome to one that boosts a healthy immune response.</p><p>A fraction of patients infected with SARS-CoV-2, the virus that causes COVID-19 disease, develop severe complications that require hospitalization in intensive care units. What do many of those patients have in common? <a href="https://www.cdc.gov/mmwr/volumes/69/wr/mm6912e2.htm" target="_blank" rel="noopener noreferrer">Old age</a> and chronic diet-related diseases like obesity, Type 2 diabetes and cardiovascular disease.</p><p><a href="http://doi.org/10.1016/j.jada.2008.12.019" target="_blank" rel="noopener noreferrer">Black and Latinx people are disproportionately affected by obesity, Type 2 diabetes and cardiovascular disease</a>, all of which are linked to poor nutrition. Thus, it is not a coincidence that <a href="https://www.cdc.gov/mmwr/volumes/69/wr/mm6933e1.htm" target="_blank" rel="noopener noreferrer">these groups have suffered more deaths from COVID-19</a> compared with whites. This is the case not only in the U.S. but also <a href="https://www.washingtonpost.com/world/europe/blacks-in-britain-are-four-times-as-likely-to-die-of-coronavirus-as-whites-data-show/2020/05/07/2dc76710-9067-11ea-9322-a29e75effc93_story.html" target="_blank" rel="noopener noreferrer">in Britain</a>.</p>
Discovering Microbes That Predict COVID-19 Severity<p>The COVID-19 pandemic has inspired me to shift my research and explore the role of the gut microbiome in the overly aggressive immune response against SARS-CoV-2 infection.</p><p>My colleagues and I have hypothesized that critically ill SARS-CoV-2 patients with conditions like obesity, Type 2 diabetes and cardiovascular disease exhibit an altered gut microbiome that aggravates <a href="https://theconversation.com/exercise-may-help-reduce-risk-of-deadly-covid-19-complication-ards-136922" target="_blank" rel="noopener noreferrer">acute respiratory distress syndrome</a>.</p><p>Acute respiratory distress syndrome, a life-threatening lung injury, in SARS-CoV-2 patients is thought to develop from a <a href="http://doi.org/10.1016/j.cytogfr.2020.05.003" target="_blank" rel="noopener noreferrer">fatal overreaction of the immune response</a> called a <a href="https://theconversation.com/blocking-the-deadly-cytokine-storm-is-a-vital-weapon-for-treating-covid-19-137690" target="_blank" rel="noopener noreferrer">cytokine storm</a> <a href="http://doi.org/10.1016/S2213-2600(20)30216-2" target="_blank" rel="noopener noreferrer">that causes an uncontrolled flood</a> <a href="http://doi.org/10.1016/S2213-2600(20)30216-2" target="_blank" rel="noopener noreferrer">of immune cells into the lungs</a>. In these patients, their own uncontrolled inflammatory immune response, rather than the virus itself, causes the <a href="http://doi.org/10.1007/s00134-020-05991-x" target="_blank" rel="noopener noreferrer">severe lung injury and multiorgan failures</a> that lead to death.</p><p>Several studies <a href="https://doi.org/10.1016/j.trsl.2020.08.004" target="_blank" rel="noopener noreferrer">described in one recent review</a> have identified an altered gut microbiome in patients with COVID-19. However, identification of specific bacteria within the microbiome that could predict COVID-19 severity is lacking.</p><p>To address this question, my colleagues and I recruited COVID-19 hospitalized patients with severe and moderate symptoms. We collected stool and saliva samples to determine whether bacteria within the gut and oral microbiome could predict COVID-19 severity. The identification of microbiome markers that can predict the clinical outcomes of COVID-19 disease is key to help prioritize patients needing urgent treatment.</p><p><a href="https://doi.org/10.1101/2021.01.05.20249061" target="_blank" rel="noopener noreferrer">We demonstrated</a>, in a paper which has not yet been peer reviewed, that the composition of the gut microbiome is the strongest predictor of COVID-19 severity compared to patient's clinical characteristics commonly used to do so. Specifically, we identified that the presence of a bacterium in the stool – called <em>Enterococcus faecalis</em>– was a robust predictor of COVID-19 severity. Not surprisingly, <em>Enterococcus faecalis</em> has been associated with <a href="https://doi.org/10.1053/j.gastro.2011.05.035" target="_blank" rel="noopener noreferrer">chronic</a> <a href="https://doi.org/10.1016/S0002-9440(10)61172-8" target="_blank" rel="noopener noreferrer">inflammation</a>.</p><p><em>Enterococcus faecalis</em> collected from feces can be grown outside of the body in clinical laboratories. Thus, an <em>E. faecalis</em> test might be a cost-effective, rapid and relatively easy way to identify patients who are likely to require more supportive care and therapeutic interventions to improve their chances of survival.</p><p>But it is not yet clear from our research what is the contribution of the altered microbiome in the immune response to SARS-CoV-2 infection. A recent study has shown that <a href="https://doi.org/10.1101/2020.12.11.416180" target="_blank" rel="noopener noreferrer">SARS-CoV-2 infection triggers an imbalance in immune cells</a> called <a href="https://doi.org/10.1111/imr.12170" target="_blank" rel="noopener noreferrer">T regulatory cells that are critical to immune balance</a>.</p><p>Bacteria from the gut microbiome are responsible for the <a href="https://doi.org/10.7554/eLife.30916.001" target="_blank" rel="noopener noreferrer">proper activation</a> <a href="https://doi.org/10.1126/science.1198469" target="_blank" rel="noopener noreferrer">of those T-regulatory</a> <a href="https://doi.org/10.1038/nri.2016.36" target="_blank" rel="noopener noreferrer">cells</a>. Thus, researchers like me need to take repeated patient stool, saliva and blood samples over a longer time frame to learn how the altered microbiome observed in COVID-19 patients can modulate COVID-19 disease severity, perhaps by altering the development of the T-regulatory cells.</p><p>As a Latina scientist investigating interactions between diet, microbiome and immunity, I must stress the importance of better policies to improve access to healthy foods, which lead to a healthier microbiome. It is also important to design culturally sensitive dietary interventions for Black and Latinx communities. While a good-quality diet might not prevent SARS-CoV-2 infection, it can treat the underlying conditions related to its severity.</p><p><em><a href="https://theconversation.com/profiles/ana-maldonado-contreras-1152969" target="_blank">Ana Maldonado-Contreras</a> is an assistant professor of Microbiology and Physiological Systems at the University of Massachusetts Medical School.</em></p><p><em>Disclosure statement: Ana Maldonado-Contreras receives funding from The Helmsley Charitable Trust and her work has been supported by the American Gastroenterological Association. She received The Charles A. King Trust Postdoctoral Research Fellowship. She is also member of the Diversity Committee of the American Gastroenterological Association.</em></p><p><em style="">Reposted with permission from <a href="https://theconversation.com/a-healthy-microbiome-builds-a-strong-immune-system-that-could-help-defeat-covid-19-145668" target="_blank" rel="noopener noreferrer" style="">The Conversation</a>. </em></p>
By Jeff Masters, Ph.D.
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