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Scientists are warning that construction of a $50-billion interoceanic shipping canal through Nicaragua could spell an environmental disaster, threatening nearly two-dozen endangered species and jeopardizing Central America's largest source of drinking water.

An article published in the latest issue of Scientific American reports that the Hong Kong-backed Nicaraguan Grand Canal project, which would be deeper and wider than the existing shipping canals through Panama, could destroy millions of acres of rainforest and contaminate Lake Nicaragua. The project has already raised concern over the displacement of communities in its path and, as NPR's Jasmine Garsd reported last week, the company building it has also unearthed tens of thousands of pre-Columbian relics.

Even before the project's official start, protests broke out from those who would be displaced by it. Managua insists that the canal could help lift the country out of poverty.

In December, President Daniel Ortega announced that construction on the project had already begun, although a consultancy hired by the backers Hong Kong Nicaragua Canal Development (HKND), has denied that.

Scientific American reports that consultants doing the environmental impact assessment, British-based ERM, noted "the potential for fuel spills to affect freshwater fish in the area, interrupt agricultural activity and impact cultural heritage on native reserves as a result of work that disturbs the soil. The report also stated 'the acquisition and compensation for the land deal...do not meet international standards.'"

The magazine also notes that scientists around the world, including those belonging to the Humboldt Center of Nicaragua, have warned that the habitat for 22 species would be placed in jeopardy and that by 2039, climate change will result in a 3 to 4 percent deficit in the water needed to run the canal.

Many have also questioned the economic viability of the project.

In 2013, The Economist wrote: "The economic case is not easy to make. And if the engineering challenges are too severe, even some supporters of the project say it may be impossible to raise the billions of dollars necessary to go any further. HKND argues that large volumes of globally traded goods are being carried on ships already too big for the Panama Canal, even after its current expansion. Nicaragua's canal, with twice the draught of Panama's, would aim to accommodate such giants. But world trade is sluggish; and meanwhile, new routes may develop through the Arctic."

Last year, National Geographic said:

"[Many] economists, scientists, and sociologists say that the time for a Nicaraguan canal has long since lapsed, that the waterway—if it's ever completed—will end up being the world's costliest boondoggle.

"The Panama Canal, they say, which has gigantic new locks scheduled to be operational next year, is more than capable of meeting future demand. They also cite projections for global warming that suggest ships could traverse an ice-free Arctic by the middle of the century, further reducing demand for passage through Central America."

And, there are also doubts about the financing of the project too. As The Washington Post wrote last month:

"Ground was broken only after a deal hatched last year between Nicaragua's Sandinista government and a consortium led by Chinese telecoms billionaire Wang Jing. Critics wonder how the little-known Wang came to win the bid, which gives his Hong Kong-listed company, HKND, a 100-year-long concession over the canal's operation. There was next to no transparency in the process. Wang is exempt from local taxes and commercial regulations, and has been granted hiring and land-expropriating powers, according to The Guardian.

"There are already doubts about Wang's ability to finance the project, and some speculate that it will never actually be completed, leaving perhaps at best some ports and container facilities but no canal in between."

Nicaragua

shipping

Panama

China

Anyone who has pulled up to a gas station this winter knows oil prices have fallen — down roughly 50 percent since June.

But it's not just oil. Prices for many commodities — grains, metals and other bulk products — have been plunging too.

Here are a few of the changes since many prices peaked in recent years:

- Copper is $2.59 a pound, down from $4.50 in 2011.

- Corn costs $3.85 a bushel, compared with about $8 at its 2012 peak.

- Iron ore pellets go for about $104 a metric ton, down from nearly $220 four years ago.

The list could go on and on. Soybeans, tin, sugar, wheat, cotton — all are much cheaper than a few years ago. The changes have been putting a squeeze on farmers and miners, but so far at least, most of these commodity plunges haven't done much to help U.S. shoppers.

With the exception of gasoline, "the price changes are not being immediately passed through to consumers," said Sean Snaith, an economic forecasting professor at the University of Central Florida.

Snaith said U.S. companies know global commodity prices can be very volatile, so they are afraid to cut consumer prices — at least not until they are sure that cheaper raw material prices are here to stay.

"There's an old saying: Prices go up like an arrow and come down like a feather," he said.

Economy

Oil Price Dip, Global Slowdown Create Crosscurrents For U.S.

The Salt

Cheap Crops Mean Tight Times For Midwest's Fledgling Farmers

The Salt

No 'Misteak': High Beef Prices A Boon For Drought-Weary Ranchers

But eventually, even a feather does float down. So some economists believe that later this year, retail prices for groceries and goods may start to decline.

Let's look at what's been happening with crops, like corn and wheat, and consider where we might be going this year:

Over the past decade, many people around the world, especially in China, kept getting richer and buying more food. That encouraged farmers everywhere to plant more seeds.

Global food output rose, but so did prices as demand continued to shoot up. By 2011, many people around the world were experiencing food shortages and steep price increases.

But the market adjusted and production improved. A recent report by the USDA said world wheat and soybean production are at record highs. The huge harvests are helping push down prices.

And it's not just grains. In Florida, the mild hurricane season helped send orange juice futures down to about $1.35 a pound, compared with their 2012 high of more than $2.

Looking ahead to this year's growing season, harvests may again be huge. That's because cheap energy is making it easier to plant more. Farmers who are paying a dollar-a-gallon less since a year ago for diesel fuel can run their tractors longer.

If the weather is good this summer, corn silos will be bulging by fall. That means ranchers and farmers will have cheaper corn to feed livestock, helping restrain meat and poultry prices.

At the same time, the global economy is running at a sluggish pace, so demand for food is not growing the way it had been a decade ago.

Also, the value of the dollar is now at a 10-year high. That means Americans will be able to purchase foreign foods, like cheeses and fruit, for less. Also, foreign customers won't be able to buy as much from U.S. farmers, allowing more U.S.-grown food to remain at home with U.S. consumers.

So put all of these factors together: the potential for huge harvests; cheaper food imports; and reduced foreign competition for food and cheaper energy costs for farmers. That sounds like a great formula for bargains at the grocery store later this year.

And a price downdraft may hit manufactured goods too. That's because raw materials — tin, nickel, lead and so on — keep getting cheaper too. U.S. coal prices have tumbled back nearly to the lows set in early 2009 during the worst of the Great Recession.

Economists say these across-the-board price drops in industrial commodities largely reflect the dramatic economic slowdown in China, Europe and other regions. When they are growing more slowly, then they don't need as many raw materials.

"The risk of deflationary pressure is much higher than the inflationary pressure or stable price scenarios for the global economy in the near term," Wells Fargo Securities' economic team wrote in a special report on deflation.

But any American who has been out shopping lately may be thinking: huh? What price breaks? New cars cost more. Meat prices have remained stubbornly high. Eggs are expensive. When exactly will these lower commodity prices translate into relief for U.S. consumers?

"It depends," Snaith said. "If these factors persist through 2015, we would expect to see these price declines make their way to consumers. But it's a waiting game."

food prices

Anyone who has pulled up to a gas station this winter knows oil prices have fallen — down roughly 50 percent since June.

But it's not just oil. Prices for many commodities — grains, metals and other bulk products — have been plunging too.

Here are a few of the changes since many prices peaked in recent years:

- Copper is $2.59 a pound, down from $4.50 in 2011.

- Corn costs $3.85 a bushel, compared with about $8 at its 2012 peak.

- Iron ore pellets go for about $104 a metric ton, down from nearly $220 four years ago.

The list could go on and on. Soybeans, tin, sugar, wheat, cotton — all are much cheaper than a few years ago. The changes have been putting a squeeze on farmers and miners, but so far at least, most of these commodity plunges haven't done much to help U.S. shoppers.

With the exception of gasoline, "the price changes are not being immediately passed through to consumers," said Sean Snaith, an economic forecasting professor at the University of Central Florida.

Snaith said U.S. companies know global commodity prices can be very volatile, so they are afraid to cut consumer prices — at least not until they are sure that cheaper raw material prices are here to stay.

"There's an old saying: Prices go up like an arrow and come down like a feather," he said.

Economy

Oil Price Dip, Global Slowdown Create Crosscurrents For U.S.

The Salt

Cheap Crops Mean Tight Times For Midwest's Fledgling Farmers

The Salt

No 'Misteak': High Beef Prices A Boon For Drought-Weary Ranchers

But eventually, even a feather does float down. So some economists believe that later this year, retail prices for groceries and goods may start to decline.

Let's look at what's been happening with crops, like corn and wheat, and consider where we might be going this year:

Over the past decade, many people around the world, especially in China, kept getting richer and buying more food. That encouraged farmers everywhere to plant more seeds.

Global food output rose, but so did prices as demand continued to shoot up. By 2011, many people around the world were experiencing food shortages and steep price increases.

But the market adjusted and production improved. A recent report by the USDA said world wheat and soybean production are at record highs. The huge harvests are helping push down prices.

And it's not just grains. In Florida, the mild hurricane season helped send orange juice futures down to about $1.35 a pound, compared with their 2012 high of more than $2.

Looking ahead to this year's growing season, harvests may again be huge. That's because cheap energy is making it easier to plant more. Farmers who are paying a dollar-a-gallon less since a year ago for diesel fuel can run their tractors longer.

If the weather is good this summer, corn silos will be bulging by fall. That means ranchers and farmers will have cheaper corn to feed livestock, helping restrain meat and poultry prices.

At the same time, the global economy is running at a sluggish pace, so demand for food is not growing the way it had been a decade ago.

Also, the value of the dollar is now at a 10-year high. That means Americans will be able to purchase foreign foods, like cheeses and fruit, for less. Also, foreign customers won't be able to buy as much from U.S. farmers, allowing more U.S.-grown food to remain at home with U.S. consumers.

So put all of these factors together: the potential for huge harvests; cheaper food imports; and reduced foreign competition for food and cheaper energy costs for farmers. That sounds like a great formula for bargains at the grocery store later this year.

And a price downdraft may hit manufactured goods too. That's because raw materials — tin, nickel, lead and so on — keep getting cheaper too. U.S. coal prices have tumbled back nearly to the lows set in early 2009 during the worst of the Great Recession.

Economists say these across-the-board price drops in industrial commodities largely reflect the dramatic economic slowdown in China, Europe and other regions. When they are growing more slowly, then they don't need as many raw materials.

"The risk of deflationary pressure is much higher than the inflationary pressure or stable price scenarios for the global economy in the near term," Wells Fargo Securities' economic team wrote in a special report on deflation.

But any American who has been out shopping lately may be thinking: huh? What price breaks? New cars cost more. Meat prices have remained stubbornly high. Eggs are expensive. When exactly will these lower commodity prices translate into relief for U.S. consumers?

"It depends," Snaith said. "If these factors persist through 2015, we would expect to see these price declines make their way to consumers. But it's a waiting game."

food prices

Days after some 300 would-be migrants from North African drowned in the Mediterranean as they were trying to reach Italy, the United Nations is calling on the European Union to establish a broader search-and-rescue effort to avoid future tragedies.

U.N. High Commissioner for Refugees Antonio Guterres reiterated a call on for the EU to expand its current operation, known as Triton, to locate and rescue would-be illegal migrants from Africa.

"There can be no doubt left after this week's events that Europe's Operation Triton is a woefully inadequate replacement for Italy's Mare Nostrum," Guterres said in a statement. Unless something is done, Guterres said, "it is inevitable that many more people will die trying to reach safety in Europe."

The Associated Press notes: "The Italian operation was abandoned after criticism that its aggressive search-and-rescue patrols encouraged migrants. Triton is more focused on protecting borders."

UNHCR says in a statement: "Crossings of the Mediterranean by migrants are age old, but 2014 saw a dramatic rise in the numbers of refugees undertaking this dangerous journey – spurred by conflicts in Syria, the Horn of Africa and other parts of sub-Saharan Africa. In all at least 218,000 people crossed the Mediterranean, and 3500 lives were lost. "

Italy's operation, launched following a similar tragedy in Oct. 2013 in which 366 people drowned, was credited with rescuing more than 150,000 people fleeing the African coast, but was terminated a year later when Triton was established.

Libya

United Nations

Syria

Italy

Africa