Environmental Disasters and GDP by Milota Sidorova

More than 5,000 barrels or 210,000 gallons of oil, that is the speed of rushing fossil fuel expanding into the sea. Mexican Gulf oil rig catastrophe has been already the biggest environmental catastrophe in the U.S. teritorry. And now, even more than 8 days after the explosion no effort was able to stop the oil flow. So far, the sheen has reached the islands nearing Louisiana coast. Oil has been also detected in the delta area of Mississippi river. So far, deadly images of birds covered with thick layer of grey liquid. This is real catastrophe, because the oil doesn't decomposite and even on the water surface it is still flammable. The risk of sea fires is growing. The risk! of wetlands contamination is almost certain. That also means the extinction of wildlife in these areas. BP reported it was going to use giant bell alike stop-gap these days. The mechanism would sink to the sand-bed and cover the pipe still connecting underwater oil deposit and the ground. Mexican Gulf catastrophe has had already significant consequences in the country. Californian governor Arnold Schwarzenegger stopped plans for drilling near Californian shores. It is also highly probable that the whole drilling actions in Mexican Gulf will be stopped untill the security (much more expensive security) will be assured. This also means less oil, higher prices. So far, crude oil prices have increased and increased profits of merchants on the markets. Here we come to strange and irrational point – environmental disasters mean country destruction, its future potential, loss of diversity, change of climate in the country and huge consequences that may be irreversible. But ! the economy, although it is loosing long term benefits and pro! fits fro m balanced country, is now getting immediately profits in form of rising GDP. GDP is rising when there is rising criminality, increasing number of illiterate people, drug traffic or environmental disasters.So the economy is rising, when the quality of life is declining. The system we live in is counting the destruction as profit.Personally I am very curious about American GDP in the second quarter and the whole machinery following these news.

related story (sgx17219): http://www.france24.com/en/20100506-oil-bp-louisiana-sheen-f...

by Milota Sidorova for Cantell TV (http://cantell.tv)

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