Sasol Betting Big on Gas-to-Liquid Plant in U.S.


Oryx


The Oryx natural gas processing plant in Qatar, where Sasol is converting natural gas to diesel fuel.







RAS LAFFAN INDUSTRIAL CITY, Qatar — The compact assembly of towers, tubes and tanks that make up the Oryx natural gas processing plant is almost lost in a vast petrochemical complex that rises here like a hazy mirage from a vast ocean of sand.




But what is occurring at Oryx is a particular kind of alchemy that has tantalized scientists for nearly a century with prospects of transforming the energy landscape. Sasol, a chemical and synthetic fuels company based in South Africa, is converting natural gas to diesel fuel using a variation of a technology developed by German scientists in the 1920s.


Performing such chemical wizardry is exceedingly costly. But executives at Sasol and a partner, Qatar’s state-owned oil company, are betting that natural gas, which is abundant here, will become the dominant global fuel source over the next 50 years, oil will become scarcer and more expensive and global demand for transport fuels will grow.


Sasol executives say the company believes so strongly in the promise of this technology that this month, it announced plans to spend up to $14 billion to build the first gas-to-liquids plant in the United States, in Louisiana, supported by more than $2 billion in state incentives. A shale drilling boom in that region in the last five years has produced a glut of cheap gas, and the executives say Sasol can tap that supply to make diesel and other refined products at competitive prices.


Marjo Louw, president of Sasol Qatar, says that his company can produce diesel fuel that burns cleaner, costs less and creates less greenhouse gas pollution than fuel derived from crude oil.


“We believe the planets are aligned for G.T.L.,” Mr. Louw said during a recent tour of the Oryx plant. “Other players — much bigger players — will follow.”


Perhaps. So far, however, the record for converting gas to liquids is spotty.


The newest and largest plant in operation, Royal Dutch Shell’s giant Pearl plant, also in Qatar, cost the leviathan sum of $19 billion, more than three times its original projected cost, and has been plagued with unexpected maintenance problems. BP and ConocoPhillips built and briefly operated demonstration plants in Alaska and Oklahoma but stopped short of full development of the technology. Exxon Mobil and ConocoPhillips announced plans to build giant plants in Qatar, but backed out, putting their capital instead into terminals to export liquefied natural gas.


Today only a handful of gas-to-liquids plants operate commercially, in Malaysia, South Africa and Qatar. Together they produce only a bit more than 200,000 barrels of fuels and lubricants a day — equivalent to less than 1 percent of global diesel demand.


“The reason you see so few G.T.L. plants is the economics are challenged at best,” said William M. Colton, Exxon Mobil’s vice president of corporate strategic planning. “We do not see it being a relevant source of fuels over the next 20 years.”


Many analysts and industry insiders say the technology makes sense only when oil and gas supplies and prices are far out of balance, as they are today in Qatar and the United States. When oil and gas come into alignment, gas-to-liquids ventures will become white elephants, these skeptics say. Environmentalists also say that the huge energy inputs required to transform natural gas into diesel or other fuels negate any greenhouse gas benefits.


Until recently, the method used to convert natural gas or coal to liquid fuel — known as the Fischer-Tropsch process after the Germans who invented it — had been used only by pariah nations desperate for transportation fuels when they had little or no oil available. For decades, South Africa defended its system of apartheid from international oil embargoes by producing synthetic oil from its rich coal resources. Nazi Germany did the same to fuel its military machine in World War II.


But with North Africa and the Middle East chronically unstable and natural gas cheap and plentiful in the United States, some say the technology is now an enticing option to produce various fuels without importing a drop of oil.


Shell may soon announce a tentative site for a gas-to-liquids plant on the Gulf Coast of the United States. Given what the company learned from its Qatar plant, executives say it would reduce costs in any new one by using different types of valves and alloys.


But Ken Lawrence, Shell’s vice president for investor relations in North America, said the company was still two years away from a final decision on an American plant.


That leaves Sasol in the forefront of the gas-to-liquids effort.


John M. Broder reported from Ras Laffan Industrial City, Qatar, and Clifford Krauss from Houston.



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Art for Wealth’s Sake: Art Basel Paints a Picture of Miami’s Separate and Unequal Worlds






It’s 10 p.m. on a Friday night. A naked girl is splashing about in the swimming pool at the Standard Hotel Miami. She is from New York and runs a nonprofit for homeless teens. We’ll call her Liz: “You’re so boring!” she yells from the middle of the pool.


It was a common refrain here during Art Basel Miami Beach—now the world’s largest contemporary art fair—where many of earth’s most privileged humans gather for a week of champagne and gawking at art (and at each other) in the sun.






The poolside celebration was for Terry Richardson, a fashion photographer known for his sexually charged (or sexually abusive, depending on your source) shoots. A cell phone company, HTC, spent $ 100,000 to sponsor the party, a book release for Richardson. This is a typical event, one of hundreds that occur during what is commonly referred to as “Basel.”


MORE: Scenes From a Class War (VIDEOS)


Basel is now 11 years old. It’s gone from a decent sized art fair to an international marketing and branding orgy with few parallels. Because all the big collectors fly down private, and scores of cool young New Yorkers file in on JetBlue, luxury brands rush in to hit both their “target demos” and “tastemakers” in one shot.


In terms of tourism dollars, Basel is Miami’s highest grossing week. Hotels on South Beach were demanding thousands per night for rooms. The fair’s main sponsor was the honorable UBS, the very same Swiss bank that just settled a billion dollar fraud case with international authorities. UBS not only robs the world and stashes terrorist/dictator cash, it sponsors art fairs too—cool guys.


Most Miamians don’t care about Art Basel. The city is only 11 percent white (far and away the primary Basel target demographic), and most of the 40 percent Hispanic and 20 percent black populations live far from the South Beach glam, many in poverty. Miami has the second widest gap between rich and poor in America, after New York. Blacks make an average of $ 15,000 a year. Whites double that, at $ 37,000. But at $ 19,000, the city’s majority Hispanics aren’t doing so well either.


Disparity defines the art world too, with its hungry artists and rich collectors and patrons. So it’s fitting that the largest contemporary art fair in the world happens in Miami.


Few people are more detached from the short-end reality of income disparity than the global art tribe. These arbiters of the cultural elite fly around the world to various openings and fairs then retreat to galleries, museums and studios in their home cities before heading out again. Of course, there are exceptions. Some artists at Basel retain a socio-politico aesthetic. A good example is Barbara Krueger, whose text-orientated pieces mocking consumerism and political power were selling for $ 200,000 to $ 500,000 and became the talk of the fair.


Bearing many hallmarks of a third world city, Miami breaks down into two distinct populations. The rich live across Biscayne Bay on beautiful beaches and gated islands. The poor are stretched across downtown’s grid, where every block headed west from the bay is worse than the one before it. The city has few economically diverse neighborhoods.


The two Miamis can easily be visited on the same day. Last week. Alex “A-Rod” Rodriguez, the New York Yankee third baseman with the largest sports contract in history, was having a party in his $ 30 million modernist manse.


I skipped A Rod’s soiree, mainly because I hate the Yankees, to hang out with Dee, a 22-year-old drug dealer who lives on west 20th Street downtown. All he wanted was customers: “Man, who down here needs anything? I’m fucking broke. I live in the projects with my aunt. Gotta get out.”


Dee said he’d take any job—as in, “I’ll work at Chick-fil-A, man!” Saddled with a criminal record, he’s never been hired anywhere.


We cruised over to 75th Street, the main drag in Little Haiti, where public housing is painted lime green and similarly awesome pastel paint jobs cover buildings advertising W.I.C and Western Union.


“There are no banks here,” Dee tells me. “We don’t have enough money.”


UBS—where are you?


The South Beach Basel crowd hosted quite a few Hurricane Sandy benefits. But I didn’t find one art world benefit for Miami’s poor. There is a definite willful ignorance in plopping your billionaires down at dinners and six-figure parties in the name of “culture” while ignoring masses of people who are in dire need of said culture and are readily at hand: The impoverished residents of Miami.


Back in New York, I catch up with Liz, the naked pool gal. She’s in Tompkins Square Park, the epicenter of Manhattan’s Lower East Side. Stella is smiling. Her art world disdain has clearly dried off.


“I have no idea why I was in Miami,” she says. “Who were those people? Why are they so boring, and why did that one guy in the black suit keep saying Le Baron over and over again?”


Around the same time I get a text from Dee. “You know anyone still down here? Tryna get that $ .”


I inform Lee that Le Baron is a Parisian disco that does a chic party every night of Basel.


Lee receives this information as she’s handing out clean needles and Narcan to the local crust punk populace, all of whom she knows by name.


“Do these people really care?” she asks.


Sadly, Basel people do seem to express more concern about French discos and wearing aggressive outfits than they do about the inequality in America—maybe best seen in Miami’s two worlds.


I have an idea for Art Basel next year. In the process of exchanging all those millions for bought and sold visions, try and help some of the people from Miami.


Are wealthy visitors obligated to alleviate some of the local misery when they party in the midst of poverty? Take a position in COMMENTS.


These are solely the author’s opinions and do not represent those of TakePart, LLC or its affiliates.


Related Stories on TakePart:


• Dispatch From Morocco: ‘Excuse Me, Aren’t We About to Start a War Here?’


• America, Syria and the State of Child Soldiering 2012


• Census Shows Sharp Increase in U.S. Poor



Ray LeMoine was born in Boston and lives in New York. He’s done humanitarian work in Iraq and Pakistan and has written for various media outlets, including the New York Times, New York Magazine and the Awl.


Wireless News Headlines – Yahoo! News





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Syrian Airstrike Kills Palestinian Refugees





DAMASCUS, Syria — Syrian government forces for the first time hit the country’s largest Palestinian refugee neighborhood with airstrikes on Sunday, killing at least eight people in the Yarmouk district of Damascus and reportedly driving dozens of formerly pro-government Palestinian fighters to defect to the rebels.




New signs emerged on Sunday of political pressure on President Bashar al-Assad. Mr. Assad’s vice president was quoted as saying neither side could win the war and calling for “new partners” in a unity government, a possible sign that at least some in the government were exploring new ways out of the crisis. The comments came as two close allies, the government of Iran and the leader of the Lebanese Shiite group Hezbollah, appeared to slightly temper their support.


In Yarmouk, flesh stuck to the walls and burned body parts littered the ground at the Sheik Abdul Qader mosque, which had offered shelter to Palestinians and others displaced by fighting in other areas. Minutes before, a reporter saw a Syrian fighter jet fire rockets at the camp. Women, crying children and white-bearded men thronged the streets with hurriedly packed bags, not sure where to look for safety.


For many Yarmouk residents — refugees from conflict with Israel and their descendants — the attacks shattered what was left of the Syrian government’s claim to be a champion and protector of Palestinians, a position that the Assad family relied upon as a source of domestic and international legitimacy during more than 40 years of iron-fisted rule.


“For decades the Assad regime was talking about the Palestinians’ rights,” said a Palestinian refugee who gave his name as Abu Ammar as he debated whether to flee with his wife and five children from the camp, on the southern edge of Damascus. “But Bashar al-Assad has killed more of us today than Israel did in its latest war on Gaza.”


He added: “What does Bashar expect from us after today? All of us will be Free Syrian Army fighters.”


The Palestinian militant group and political party Hamas has broken with Mr. Assad over his crackdown on what began as a peaceful protest movement, and while most Palestinian parties still profess neutrality, a growing number of Palestinians support — and have even joined — the rebels.


The Syrian government long held the loyalty of hundreds of thousands of Palestinian refugees, giving them health care, education, and access to professional careers, among other rights denied by other Arab host countries. But those policies also gave Palestinians a stake and sense of belonging in Syria that has led many to join the uprising.


Several of Mr. Assad’s allies signaled a new push for a peaceful solution. Iran’s Foreign Ministry called for an end to military action, the release of political prisoners and a broad-based dialogue to form a transitional government that would hold free elections, Iran’s state news agency reported.


Mr. Assad’s vice president, Farouk al-Shara, said that neither the government nor the rebels could end the conflict militarily, the pro-Syrian Lebanese newspaper Al Akhbar reported. And he called for a solution involving a cease-fire and brokered by international leaders that would establish a “national unity government with wide powers.”


He added that the battle was for the country’s very existence, not “the survival of an individual or a regime,” and that Syria’s leaders “cannot achieve change without new partners.”


The impact of the statements was unclear. Mr. Shara, a Sunni Muslim like most of the rebels, has been floated by the Arab League as a possible successor, but many of Mr. Assad’s opponents reject any dealings with leaders of the current government.


In neighboring Lebanon, Hassan Nasrallah, the leader of Hezbollah, appeared to acknowledge for the first time that the Syrian uprising is at least in part driven by popular sentiment.


“Today, in Syria,” he said in a videotaped address at a graduation ceremony, “there is a big part of the population with the Syrian regime and a part against it, and the latter armed themselves to fight the regime.”


An employee of The New York Times reported from Damascus, and Anne Barnard from Beirut. Hania Mourtada contributed reporting from Beirut, and Hala Droubi from Dubai.



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Texans clinch AFC South with 29-17 win over Colts


HOUSTON (AP) — The Houston Texans have a message for the Indianapolis Colts:


Now we own the AFC South.


The Texans are division champions for the second straight year after beating the Colts 29-17 Sunday. Andre Johnson gained 151 yards receiving and a touchdown, Bryan Braman scored a special teams score on a blocked punt, and Shayne Graham kicked five field goals.


The Texans (12-2) grabbed their first AFC South title last season after the Colts nosedived without injured quarterback Peyton Manning. Manning is gone to Denver and rookie Andrew Luck couldn't do much against the inspired Houston defense.


The Colts (9-5) had won three straight games and needed a win to clinch a playoff berth a year after going 2-14 in 2011. Before that, they took the division seven times since Houston entered the league in 2002.


Thanks in great part to three sacks from J.J. Watt, Houston bounced back six days after an embarrassing 42-14 loss to New England on national television. The Texans will have home-field advantage throughout the AFC playoffs if they win out.


Luck threw for 186 yards with two touchdowns in the return to his hometown. He had led the Colts to a rookie-record six wins on drives in the fourth quarter or overtime this season, and he got the Colts within six points late in the third quarter.


But Houston's defense shut him down after that, and the Texans used Arian Foster to eat up the clock. Foster ran for a season-high 165 yards to leave him with 1,313 yards rushing, giving him his third straight year with at least 1,200.


Watt increased his AFC-leading sack total to 19 ½ — the NFL record for a season is 22 1-2 — and finished with 10 tackles. He also forced a fumble for the third straight game.


Luck was sacked five times playing behind a makeshift offensive line missing center Samson Satele (ankle) and right tackle Winston Justice (biceps).


Johnson, who has 11,008 yards receiving in his career, scored on a 3-yard reception to make it 10-0 in the first quarter. The Texans didn't score a touchdown on offense after that, but were helped by Braman's special teams effort.


Braman blocked his second punt of the season, recovered it and returned it 8 yards for his first career touchdown to make it 20-3 just before halftime.


Vick Ballard had 60 yards rushing on a Colts drive that ended with an 8-yard touchdown reception by Dwayne Allen to cut Houston's lead to 23-17 in the third quarter. Ballard finished with a career-high 105 yards rushing.


Houston couldn't do anything on its next drive and punted. But Indy sputtered, and interim coach Bruce Arians even drew an unsportsmanlike conduct penalty on a punt, giving Houston the ball at the Colts 39.


Graham added a 46-yard field goal to push the lead to 26-17 and made his fifth field goal with about a minute left.


Rookie T.Y. Hilton and Luck connected on a 61-yard touchdown pass just before halftime.


Watt's forced fumble on Mewelde Moore on the Houston 1 was recovered by Tim Dobbins early in the second quarter, robbing the Colts of points. And the Colts stalled inside the red zone again and had to settle for Adam Vinatieri's 26-yard field goal to cut Houston's lead to 10-3.


The Texans had set the tone as they got to Luck early, sacking him twice on the Colts' second drive. Antonio Smith got to him first, and Watt put a move on backup tackle Jeff Linkenbach and took him down for a 15-yard loss.


On offense, Johnson was dominant. He put Houston up 10-0 when he waltzed into the end zoen for a 3-yard touchdown reception. Johnson kept things going earlier in the drive when he caught a pass, lost it and then grabbed it again just before it touched the ground for a 10-yard gain on third-and-9.


___


Online: http://pro32.ap.org/poll and http://twitter.com/AP_NFL


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Dr. William F. House, Inventor of Cochlear Implant, Dies





Dr. William F. House, a medical researcher who braved skepticism to invent the cochlear implant, an electronic device considered to be the first to restore a human sense, died on Dec. 7 at his home in Aurora, Ore. He was 89.




The cause was metastatic melanoma, his daughter, Karen House, said.


Dr. House pushed against conventional thinking throughout his career. Over the objections of some, he introduced the surgical microscope to ear surgery. Tackling a form of vertigo that doctors had believed was psychosomatic, he developed a surgical procedure that enabled the first American in space to travel to the moon. Peering at the bones of the inner ear, he found enrapturing beauty.


Even after his ear-implant device had largely been supplanted by more sophisticated, and more expensive, devices, Dr. House remained convinced of his own version’s utility and advocated that it be used to help the world’s poor.


Today, more than 200,000 people in the world have inner-ear implants, a third of them in the United States. A majority of young deaf children receive them, and most people with the implants learn to understand speech with no visual help.


Hearing aids amplify sound to help the hearing-impaired. But many deaf people cannot hear at all because sound cannot be transmitted to their brains, however much it is amplified. This is because the delicate hair cells that line the cochlea, the liquid-filled spiral cavity of the inner ear, are damaged. When healthy, these hairs — more than 15,000 altogether — translate mechanical vibrations produced by sound into electrical signals and deliver them to the auditory nerve.


Dr. House’s cochlear implant electronically translated sound into mechanical vibrations. His initial device, implanted in 1961, was eventually rejected by the body. But after refining its materials, he created a long-lasting version and implanted it in 1969.


More than a decade would pass before the Food and Drug Administration approved the cochlear implant, but when it did, in 1984, Mark Novitch, the agency’s deputy commissioner, said, “For the first time a device can, to a degree, replace an organ of the human senses.”


One of Dr. House’s early implant patients, from an experimental trial, wrote to him in 1981 saying, “I no longer live in a world of soundless movement and voiceless faces.”


But for 27 years, Dr. House had faced stern opposition while he was developing the device. Doctors and scientists said it would not work, or not work very well, calling it a cruel hoax on people desperate to hear. Some said he was motivated by the prospect of financial gain. Some criticized him for experimenting on human subjects. Some advocates for the deaf said the device deprived its users of the dignity of their deafness without fully integrating them into the hearing world.


Even when the American Academy of Ophthalmology and Otolaryngology endorsed implants in 1977, it specifically denounced Dr. House’s version. It recommended more complicated versions, which were then under development and later became the standard.


But his work is broadly viewed as having sped the development of implants and enlarged understanding of the inner ear. Jack Urban, an aerospace engineer, helped develop the surgical microscope as well as mechanical and electronic aspects of the House implant.


Karl White, founding director of the National Center for Hearing Assessment and Management, said in an interview that it would have taken a decade longer to invent the cochlear implant without Dr. House’s contributions. He called him “a giant in the field.”


After embracing the use of the microscope in ear surgery, Dr. House developed procedures — radical for their time — for removing tumors from the back portion of the brain without causing facial paralysis; they cut the death rate from the surgery to less than 1 percent from 40 percent.


He also developed the first surgical treatment for Meniere’s disease, which involves debilitating vertigo and had been viewed as a psychosomatic condition. His procedure cured the astronaut Alan B. Shepard Jr. of the disease, clearing him to command the Apollo 14 mission to the moon in 1971. In 1961, Shepard had become the first American launched into space.


In presenting Dr. House with an award in 1995, the American Academy of Otolaryngology-Head and Neck Surgery Foundation said, “He has developed more new concepts in otology than almost any other single person in history.”


William Fouts House was born in Kansas City, Mo., on Dec. 1, 1923. When he was 3 his family moved to Whittier, Calif., where he grew up on a ranch. He did pre-dental studies at Whittier College and the University of Southern California, and earned a doctorate in dentistry at the University of California, Berkeley. After serving his required two years in the Navy — and filling the requisite 300 cavities a month — he went back to U.S.C. to pursue an interest in oral surgery. He earned his medical degree in 1953. After a residency at Los Angeles County Hospital, he joined the Los Angeles Foundation of Otology, a nonprofit research institution founded by his brother, Howard. Today it is called the House Research Institute.


Many at the time thought ear surgery was a declining field because of the effectiveness of antibiotics in dealing with ear maladies. But Dr. House saw antibiotics as enabling more sophisticated surgery by diminishing the threat of infection.


When his brother returned from West Germany with a surgical microscope, Dr. House saw its potential and adopted it for ear surgery; he is credited with introducing the device to the field. But again there was resistance. As Dr. House wrote in his memoir, “The Struggles of a Medical Innovator: Cochlear Implants and Other Ear Surgeries” (2011), some eye doctors initially criticized his use of a microscope in surgery as reckless and unnecessary for a surgeon with good eyesight.


Dr. House also used the microscope as a research tool. One night a week he would take one to a morgue for use in dissecting ears to gain insights that might lead to new surgical procedures. His initial reaction, he said, was how beautiful the bones seemed; he compared the experience to one’s first view of the Grand Canyon. His wife, the former June Stendhal, a nurse, often helped.


She died in 2008 after 64 years of marriage. In addition to his daughter, Dr. House is survived by a son, David; three grandchildren; and two great-grandchildren.


The implant Dr. House invented used a single channel to deliver information to the hearing system, as opposed to the multiple channels of competing models. The 3M Company, the original licensee of the House implant, sold its rights to another company, the Cochlear Corporation, in 1989. Cochlear later abandoned his design in favor of the multichannel version.


But Dr. House continued to fight for his single-electrode approach, saying it was far cheaper, and offered voluminous material as evidence of its efficacy. He had hoped to resume production of it and make it available to the poor around the world.


Neither the institute nor Dr. House made any money on the implant. He never sought a patent on any of his inventions, he said, because he did not want to restrict other researchers. A nephew, Dr. John House, the current president of the House institute, said his uncle had made the deal to license it to the 3M Company not for profit but simply to get it built by a reputable manufacturer.


Reflecting on his business decisions in his memoir, Dr. House acknowledged, “I might be a little richer today.”


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Looking Ahead: Economic Reports for the Week of Dec. 17





ECONOMIC REPORTS Data to be released this week includes the current account deficit for the third quarter (Tuesday); housing starts for November (Wednesday); weekly jobless claims, final third-quarter G.D.P., existing home sales for November, the Philadelphia Fed index, and leading economic indicators for November (Thursday); and personal income and spending for November and the Thomson Reuters/University of Michigan consumer sentiment index for December (Friday).


CORPORATE EARNINGS The following companies are scheduled to report quarterly earnings this week: Oracle (Tuesday); FedEx, General Mills and Bed Bath & Beyond (Wednesday); ConAgra Foods, Darden Restaurants, Discover Financial Services, KB Home, Rite Aid, Nike and Research in Motion and Walgreen (Friday).


IN THE UNITED STATES On Tuesday, Ron Kirk, the United States trade representative, and Rebecca Blank, the acting commerce secretary, will begin two days of talks in Washington with a Chinese delegation. Also Tuesday, a Senate Banking subcommittee will conduct a hearing about computerized trading.


On Wednesday, a Senate Banking subcommittee will conduct a hearing about consumer credit reports.


On Thursday, the Insurance Institute for Highway Safety will release its 2013 list of the safest vehicles.


OVERSEAS On Monday, Mario Draghi, the president of the European Central Bank, will speak at the quarterly hearing of the Economic and Monetary Affairs Committee of the European Parliament.


On Thursday, the Bank of Japan will issue a decision on interest rates.


On Friday, President Vladimir Putin of Russia will attend a Russia-European Union summit meeting in Brussels.


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With E.C.B. in Spotlight, Bundesbank Finds Itself in the Shadows


Mustafah Abdulaziz for The New York Times


The Bundesbank, Germany’s central bank, built in 1967 in Frankfurt.







FRANKFURT — The exposed-concrete slab of the Bundesbank headquarters stands like a bulwark outside the downtown financial district here, a stolid, Brutalist structure that in its sheer mass evokes not just the German central bank’s stubborn resistance to change but, above all, its obsessive commitment to crushing inflation.




Built 45 years ago, the modernist building is hardly old by European standards, yet it is a temple to tradition, embodying the ethos of this most conservative of institutions. “We are trying to keep it just the way it is,” said Reiner Bruckhaus, head of the bank’s centralized construction management division.


That starts with the granite floors, the Barcelona chairs in the lobby (designed by the Bauhaus great Ludwig Mies van der Rohe), and the grand, white Carrara marble by the elevators, and goes all the way up to the wood grid ceilings on the top floor. “You will find not even the slightest changes,” Mr. Bruckhaus said.


When the building was erected in 1967, the Bundesbank’s dominance in European monetary policy went unchallenged. But in the hazy distance of the Frankfurt skyline, significant change is evident in the outline of two towers and three cranes, the new headquarters of the European Central Bank — a visible reminder of the institution that has supplanted the Bundesbank, just as the euro replaced the German mark.


European leaders established the European Central Bank’s headquarters in Frankfurt as a symbol of its status as heir to the Bundesbank. But the danger posed by Europe’s continuing debt crisis demanded improvisations at odds with the Bundesbank’s conservative teachings.


Over the summer the E.C.B.’s president, Mario Draghi, pursued an expansive policy that was anathema to the old guard, whose cause was championed by the Bundesbank’s youthful president, Jens Weidmann. He and his supporters base their views not, they say, on rigid orthodoxy but on experience gleaned from the disaster of hyperinflation and the success of adhering to a hard-money path.


In an increasingly uncomfortable pairing, the Bundesbank functions as the largest piece of the E.C.B. puzzle. With more than 9,500 full-time workers, the Bundesbank dwarfs the 1,600-strong central bank. Because of that limited staff, the E.C.B. depends on the Bundesbank to handle many of the back-office functions of the common currency.


But the European Central Bank’s influence continues to grow. Euro-zone finance ministers agreed to a deal Thursday to put 100 to 200 of their largest banks under its direct supervision.


The arranged marriage between the two banks will take enormous effort and flexibility. As its massive headquarters suggests, the Bundesbank is capable of enormous and sustained effort, but flexibility may be inimical to its nature.


Founded in 1957, the Bundesbank quickly grew into one of Germany’s most respected institutions. The rank-and-file behind Mr. Weidmann, 44, represent an unusually tight-knit group, almost like a monastic order, and they are steeped in the bank’s secular religion — often at the bank’s own school, a kind of Hogwarts for its future financial wizards, in a hilltop 12th-century castle in the town of Hachenburg.


“You hear it in the first lecture,” said Silke Frühklug, 32, a graduate and Bundesbank employee. “You hear it in the last lecture and every day in between: price stability.”


Ms. Frühklug married a classmate and in her free time plays on the central bank’s badminton team, which on a recent evening practiced in a gymnasium on the Bundesbank campus right after the handball team. The bank also has a theater society and “hobby artists” club, which exhibits in the lobby of the headquarters. It owns apartments for workers in tight real-estate markets like Munich and here in Frankfurt. Retired employees still lunch at the cafeteria, helping to nurture the all-important continuity.


“People feel connected with the goals of the bank,” said Matthias Endres, 43, editor of the Bundesbank’s internal magazine. Like Ms. Frühklug, he married a fellow graduate from the school in Hachenburg. He has vacationed with his wife and their three children at all three of the Bundesbank getaways, on the North Sea, in the Black Forest and on a lake in Bavaria.


Mr. Endres’s wife, Simone, works part-time in the headquarters’ Money Museum, which houses some 350,000 objects, of which roughly 1,300 are on display, including the worthless bills in denominations of millions and billions from the hyperinflation of the Weimar-era and examples of commodity money, like a gold bar, a tea brick and even a preserved cow standing near the entrance, a silent bovine greeter.


Jack Ewing contributed reporting.



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7 leaving Big East to build basketball conference


The seven Big East schools that don't play FBS football are leaving behind the conference many of them founded to build a league focused on basketball.


The presidents of the seven schools made the announcement Saturday.


"Earlier today we voted unanimously to pursue an orderly evolution to a foundation of basketball schools that honors the history and tradition on which the Big East was established," the statement said. "Under the context of conference realignment, we believe pursuing a new basketball framework that builds on this tradition of excellence and competition is the best way forward."


The seven basketball schools leaving are: Georgetown, St. John's, Villanova, DePaul, Marquette, Seton Hall and Providence. Georgetown, St. John's, Seton Hall and Providence helped form the Big East, which started playing basketball in 1979. Villanova joined in 1980. The Big East didn't begin playing football until 1991.


The statement from the seven Catholic schools gave no details about their plans, such as when they want to depart and whether they will attempt to keep the name Big East.


Big East bylaws require departing members give the conference 27 months' notice, but league has negotiated early departures with several schools over the past year. Big East rules do allow schools to leave as a group without being obligated to pay exit fees.


There are also millions of dollars in NCAA basketball tournament money and exit fees collected from recently departed members that will need to be divvied up.


"The basketball institutions have notified us that they plan to withdraw from the Big East," Commissioner Mike Aresco said in a statement. "The membership recognizes their contributions over the long distinguished history of the Big East. The 13 members of the conference are confident and united regarding our collective future."


The latest hit to the Big East leaves Connecticut, also a founding member of the league, Cincinnati, Temple and South Florida — the four current members with FBS football programs — as the only schools currently in the Big East that are scheduled to be there beyond next season.


The Big East is still lined up to have a 12-team football conference next season with six new members joining, including Boise State and San Diego State for football only. Rutgers and Louisville, which both announced intentions to leave the Big East, are still expected to compete in the conference next year.


Notre Dame, which is moving to the Atlantic Coast Conference, is also expected to continue competing in the Big East next season in all sports but football and hockey.


Joining the Big East next season are Memphis, Central Florida, Houston and SMU for all sports and Boise State and San Diego State for football only.


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School Yoga Class Draws Religious Protest From Christians


T. Lynne Pixley for The New York Times


Miriam Ruiz during a yoga class last week at Paul Ecke Central Elementary School in Encinitas, Calif. A few dozen parents are protesting that the program amounts to religious indoctrination. More Photos »







ENCINITAS, Calif. — By 9:30 a.m. at Paul Ecke Central Elementary School, tiny feet were shifting from downward dog pose to chair pose to warrior pose in surprisingly swift, accurate movements. A circle of 6- and 7-year-olds contorted their frames, making monkey noises and repeating confidence-boosting mantras.




Jackie Bergeron’s first-grade yoga class was in full swing.


“Inhale. Exhale. Peekaboo!” Ms. Bergeron said from the front of the class. “Now, warrior pose. I am strong! I am brave!”


Though the yoga class had a notably calming effect on the children, things were far from placid outside the gymnasium.


A small but vocal group of parents, spurred on by the head of a local conservative advocacy group, has likened these 30-minute yoga classes to religious indoctrination. They say the classes — part of a comprehensive program offered to all public school students in this affluent suburb north of San Diego — represent a violation of the First Amendment.


After the classes prompted discussion in local evangelical churches, parents said they were concerned that the exercises might nudge their children closer to ancient Hindu beliefs.


Mary Eady, the parent of a first grader, said the classes were rooted in the deeply religious practice of Ashtanga yoga, in which physical actions are inextricable from the spiritual beliefs underlying them.


“They’re not just teaching physical poses, they’re teaching children how to think and how to make decisions,” Ms. Eady said. “They’re teaching children how to meditate and how to look within for peace and for comfort. They’re using this as a tool for many things beyond just stretching.”


Ms. Eady and a few dozen other parents say a public school system should not be leading students down any particular religious path. Teaching children how to engage in spiritual exercises like meditation familiarizes young minds with certain religious viewpoints and practices, they say, and a public classroom is no place for that.


Underlying the controversy is the source of the program’s financing. The pilot project is supported by the Jois Foundation, a nonprofit organization founded in memory of Krishna Pattabhi Jois, who is considered the father of Ashtanga yoga.


Dean Broyles, the president and chief counsel of the National Center for Law and Policy, a nonprofit law firm that champions religious freedom and traditional marriage, according to its Web site, has dug up quotes from Jois Foundation leaders, who talk about the inseparability of the physical act of yoga from a broader spiritual quest. Mr. Broyles argued that such quotes betrayed the group’s broader evangelistic purpose.


“There is a transparent promotion of Hindu religious beliefs and practices in the public schools through this Ashtanga yoga program,” he said.


“The analog would be if we substituted for this program a charismatic Christian praise and worship physical education program,” he said.


The battle over yoga in schools has been raging for years across the country but has typically focused on charter schools, which receive public financing but set their own curriculums.


The move by the Encinitas Union School District to mandate yoga classes for all students who do not opt out has elevated the discussion. And it has split an already divided community.


The district serves the liberal beach neighborhoods of Encinitas, including Leucadia, where Paul Ecke Central Elementary is, as well as more conservative inland communities. On the coast, bumper stickers reading “Keep Leucadia Funky” are borne proudly. Farther inland, cars are more likely to feature the Christian fish symbol, and large evangelical congregations play an important role in shaping local philosophy.


Opponents of the yoga classes have started an online petition to remove the course from the district’s curriculum. They have shown up at school board meetings to denounce the program, and Mr. Broyles has threatened to sue if the board does not address their concerns.


The district has stood firm. Tim Baird, the schools superintendent, has defended the yoga classes as merely another element of a broader program designed to promote children’s physical and mental well-being. The notion that yoga teachers have designs on converting tender young minds to Hinduism is incorrect, he said.


“That’s why we have an opt-out clause,” Mr. Baird said. “If your faith is such that you believe that simply by doing the gorilla pose, you’re invoking the Hindu gods, then by all means your child can be doing something else.”


Ms. Eady is not convinced.


“Yoga poses are representative of Hindu deities and Hindu stories about the actions and interactions of those deities with humans,” she said. “There’s content even in the movement, just as with baptism there’s content in the movement.”


Russell Case, a representative of the Jois Foundation, said the parents’ fears were misguided.


“They’re concerned that we’re putting our God before their God,” Mr. Case said. “They’re worried about competition. But we’re much closer to them than they think. We’re good Christians that just like to do yoga because it helps us to be better people.”


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