Court to IRS: Sit Down, Shut Up, and Leave Mom-and-Pop Tax Prep Firms Alone

IRSIf you have a neighborhood guy or gal who helps
you sort your receipts every April, you’ll be happy to know they
can breathe a little easier this tax season.

In 2012, the IRS decided unilaterally to impose new continuing
education and licensing requirements on tax prep companies,
threatening to put little guys out of business, while protecting
giants like H&R Block.

The libertarian legal outfit Institute for Justice (IJ) helped
mom-and-pop tax prep firms
challenge the
new
regs
, and despite some
time in legal limbo
, they’ve been
winning their way up the legal chain

In my inbox today, this good news from IJ: 

Today, the D.C. Circuit Court of Appeals ruled that the IRS had
no legal authority to impose a nationwide licensing scheme on
tax-return preparers.  The decision affirms a January 2013
ruling by U.S. District Court Judge James E. Boasberg, which struck
down the IRS’s new regulations as unlawful.  Both courts
rejected the agency’s shocking claim that tax-preparer licensure
was authorized by an obscure 1884 statute governing the
representatives of Civil War soldiers seeking compensation for dead
horses.

Here’s what the D.C. Circuit Court had to say:

“the IRS may not unilaterally expand its authority through such
an expansive, atextual, and ahistorical reading of [the
statute].”

This is pretty much the judicial equivalent of shouting “BOOM”
and dropping the mic.

And rightly so. If the new rules had been enforced, they would
have endangered the livelihoods of tens of thousands of small
businessmen and entrepreneurs, not to mention the sanity of
thousands of people who might have started prepping their taxes on
their own.

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Penguin Caves to the Hindu Taliban

The Indian blogosphere is up in arms today against Penguin’s
decision to withdraw University of Chicago Divinity School
Professor Wendy Doniger’s 2009 The Hindus: An Alternative
History
. The 700-page-plus tome offended Hindu Shiv Lingamnationalists, a scourge on humanity not quite as
bad as the Ebola virus, who took exception to its description of
the Shiv Lingam, a representation of God Shiva that Hindus worship,
as a phallic symbol, among other things.

Folks at the Shiksha Bachao Andolan Samiti — the self-appointed
guardians of Indian knowledge — filed a suit in 2011 demanding a
ban. They charge that the book had “factual inaccuracies” and was
written with “a Christian missionary’s zeal” to denigrate Hinduism
and show it in a poor light.” Never mind that Doniger is not a
Christian and is actually a great admirer of Hinduism, which she
regards as a far more existentially profound faith than
monotheistic religions. In fact, her aim in writing the book was to
save Hinduism from misinterpretations of both hostile alien
interlocutors and nativist Hindutva boosters.

Here is a flavor of the book from a review
by Daily Beast columnist Tunku Vardarajan, former Newsweek
international editor:

A religion without a central church or pontiff — and with no
predominant sacred place (a la Mecca) — Hinduism has spawned
hundreds of competing devotional sects and theological strains. Ms.
Doniger does a deft job of tracing their few unifying tenets —
those of karma (actions) and dharma (righteousness) and a
merit-based afterlife and of holding these beliefs up to critical
examination against the obvious injustices of the caste system. Her
most beguiling chapters, though, are the ones in which she examines
the impact on the Hindus of India’s numerous foreign invaders —
from the earliest “Aryans” in the second millennium B.C. to the
imperial British, the last and perhaps greatest external shapers of
Hindu society.

But before the Indian courts could rule (and it is bad enough
that they allow such suits to even go forward), Penguin not only
agreed to pull the book from India but destroy all hard copies
within six months.

Penguin is a private publisher and can do what it wants. It
previously held the line against Islamo fascists demanding a ban on
The Satanic Verses.

It is not clear whether it is purely bottom-line considerations
that are driving it this time. But if they are, one just hopes
there is a special place in hell for it — or it reincarnates as a
cockroach, as per Hindu tradition.

The silver lining in all this, as Doniger told England-based
Salil Tripathi last night, is that in the age of Internet, Penguin
can’t actually ban the book. “Anyone with a computer can get the
Kindle
edition from Penguin, NY, and it’s probably cheaper, too.”

So go for it dear readers. It’s for a good cause.

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Feeling a Little Insecure? JP Morgan Issues a Report Critical of Bitcoin

Now this is special. John Normand, JP Morgan’s head of global FX strategy has just issued a report on Bitcoin to educate his “sophisticated” clientele on why they must avoid the revolutionary payment protocol and currency Bitcoin. Coindesk has done some excellent reporting on the matter. They write:

Released on 11th February, a new report by US-based multinational financial services company JPMorgan issued a sharp critique of bitcoin and other digital currencies.

The eight-page report, authored by the company’s head of global FX strategy, John Normand, aimed to present the “risks and opportunities” posed by bitcoin.

Normand writes:

“As a medium of exchange, unit of account and store of value, it is vastly inferior to fiat currencies.

Since governments are quite unlikely to accord it the status of legal tender, bitcoin or other virtual currencies would not reach the scale and scope to render them worthwhile for widespread commerce, payments or investment.”

Normand explains:

“Recall that currencies don’t become widely used spontaneously or through a grassroots campaign. They become widely used nationally because a government declares them legal tender, and they become widely used internationally because they are legal tender in a significant economic area with large, unrestricted capital markets.”

Yes slaves, don’t try anything new. Sure, Bitcoin has gone from nothing to a $8 billion valuation in five years, nothing to see here. Obey. Your government loves you. Only politicians and Central Banksters are sophisticated enough to create money and handle it. Don’t get any big ideas. Think small, that’s where we want you serfs.

continue reading

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Pentagon Exploring Brain Implants for Soldiers

Defense Advanced Research Projects Agency (DARPA), the
technology development wing of the U.S. Department of Defense, is
looking to
install
“black boxes” in soldiers’ brains to help revive
memory.

Since 2000, an estimated 280,000 soldiers endured brain
injuries. If soldiers could be furnished with the device, the
complex black box technology could potentially trigger memory and
mitigate brain loss suffered in combat.

While DARPA, naturally, set its sights on military applications,
implications for dementia and alzheimers patients stirs excitement.
Geek
predicts
the neurotechnology “could become a key ‘upgrade’ for
humans in the coming decades.”

But even advocates admit the technology faces a long, uncertain
climb. Especially since neuroscientists are still not sure how
memory works. Bloomberg
reports
, “It’s still far from certain that such work will
result in a device.”

While potential applications are exciting, they are limited.
Geoff Ling, Deputy Director of DARPA’s Defense Sciences
office, 
explained
to Bloomberg:

The DARPA initiative isn’t designed to recover the type of
memories used to recall a person’s name. Instead, it would help
wounded warriors recover ‘task-based motor skills’ necessary for
‘life or livelihood.’

They hope the tax-funded implants will help patients remember
how to do simple, everyday activities like “tie their shoes and
perhaps eventually operate machinery or fly planes” Ling said.

DARPA has a history of sponsoring some weird technology. Think
wall-climbing suits
called
“gecksin,” inspired by geckos. But its research also
helped lead to the Internet. It recently closed a
contract with IBM for “self-destructing” technologies and
launched
a plan to “revolutionize web search.”

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S&P 500 Jumps To Best 4-Day Run In 13 Months

Yellen proving she is as dovish as Bernanke (and a 200 pip rally in USDJPY) has supported the S&P 500 to its best 4-day swing since January 2013 (+4.4%)… make sense? Interestingly, emerging market FX has worsened notably in the last 3 days.

 

EM FX remains a problem…

 

But don’t worry about that – BTFD!


    



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S&P 500 Jumps To Best 4-Day Run In 13 Months

Yellen proving she is as dovish as Bernanke (and a 200 pip rally in USDJPY) has supported the S&P 500 to its best 4-day swing since January 2013 (+4.4%)… make sense? Interestingly, emerging market FX has worsened notably in the last 3 days.

 

EM FX remains a problem…

 

But don’t worry about that – BTFD!


    



via Zero Hedge http://ift.tt/1bSo7HU Tyler Durden

Gold Rallies Ahead Of Yellen Testimony – Up 6.6% YTD

Today’s AM fix was USD 1,282.75, EUR 938.09 and GBP 780.83 per ounce.
Yesterday’s AM fix was USD 1,273.50, EUR 933.86 and GBP 776.95 per ounce.   

Gold climbed $7.50 or 0.59% yesterday to $1,274.60/oz. Silver rose $0.02 or 0.1% to $20.05/oz.


Gold in U.S. Dollars, 6 Months – (Bloomberg)

Gold is higher again today in all currencies and testing resistance between $1,285/oz and $1,300/oz. A close above $1,300 should see gold quickly rally to test the next level of resistance at $1,360/oz. Support is at $1,240/oz and $1,180/oz.

Gold for immediate delivery rose a fifth day and is headed for its longest rally since August before Federal Reserve Chairman Janet Yellen addresses Congress today. Chinese demand continues to be very robust and volumes for spot bullion of 99.99 percent purity on the Shanghai Gold Exchange (SGE) climbed to 25,725 kilograms yesterday, the most since May.

Gold has climbed 6% this year in dollar terms amid currency turmoil in emerging markets and stocks falling sharply globally. $1.63 trillion has been erased from the value of global equity markets.

Gold is over 10.5% higher in terms of the Dow Jones Industrial Average year to date. Gold’s properties as a safe haven asset and important diversification are being seen again.

Gold fell 24% last year after rising 70% from December 2008 to June 2011 as the Fed pumped more than $2 trillion into the financial system.

Janet Yellen will today deliver her first testimony to Congress since being sworn in as Federal Reserve chairman. Yellen delivers her first semi-annual monetary-policy testimony as investors weigh the pace of a slight reduction in quantitative easing against the recent poor U.S. economic data.

Worries about weak U.S. labor market data had some investors betting that Federal Reserve Chair Janet Yellen may signal a pause in the central bank’s efforts to wind down its extraordinary bond-buying programme.

There is an expectation that Yellen is going to be dovish, especially given the recent weakness in U.S. employment numbers. However, Yellen could surprise markets by adopting a more hawkish tone regarding monetary policies in the very short term. If she does, then expect a further bout of risk-off and more weakness in stock markets.

However, it is important to focus on actual monetary policy which remains very loose rather on the mere words of the new Fed head.

Our latest report, ‘Gold Is A Safe Haven Asset’ looks at the recent academic and independent research on gold.

Check out ‘Gold Is A Safe Haven’ Youtube intro here.


    



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Illinois Taps The Onion To Sell Obamacare

While we realize that newsflow over the past few years has taken a decided turn for the surreal, we are sad (or, alternatively, delighted) to announce that we are dead serious when we report that Illinois governor Pat Quinn has now tapped The Onion – that would be the famous satiric website – to sell Obamacare. Perhaps we should not be surprised: after we previously revealed that The Onion served as the mystery source of economic insight by such intellectual economist titans as Paul Krugman and Larry Summers, the time may have come come to surrender to the great wave of absurdity that has washed over this nation, and admit that when it comes to pitching idiotic policies, self-referential satire may be the only option left in the arsenal of the central planners.

Acording to Crains Chicago, Gov. Pat Quinn is partnering with the Onion to persuade young invincibles” to sign up for health care insurance — before it’s too late under Obamacare.

More on this surreal development from the source:

Beginning today, Onion Labs, the creative services division of Chicago-based Onion, will run banners ads on its website of a man forced to sell his action figures to pay his medical bills because he didn’t buy health insurance, according to a statement today from Get Covered Illinois, the state’s health insurance exchange.

 

 

So-called young invincibles, healthy people in their 20s and 30s, are crucial to balancing out the costly sick and elderly people buying plans on the Illinois health insurance exchange.

 

“We know that to effectively reach Young Invincibles — who are 53 percent of our uninsured residents in Illinois — we have to work with non-traditional, and especially digital, sources for news and entertainment,” Jennifer Koehler, executive director of Get Covered Illinois, said in statement. “That’s where the Onion fits right into our outreach strategy.”

 

The Onion also will create a video, an editorial and a customer “news” section about Get Covered Illinois that will appear online as the March 31 deadline to buy health insurance approaches.

 

“This is a great opportunity for Onion Labs to work with Get Covered Illinois, and do what the Onion does best — create irreverent-yet-relevant comedy and put it to work for an organization that wants to reach millennials,” Onion CEO Steve Hannah said in the statement.

Actually what the Onion does best is to capture the idiocy of people through the lens of stires. In this case, it has most certainly succeeded.


    



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Comrades In Arms: Obama Greets Francois Hollande – Live Webcast

We are sure they have lots to learn from one another –  

  • *OBAMA SAYS FRANCE, U.S. STAND `SHOULDER TO SHOULDER’
  • *OBAMA SAYS U.S., FRANCE AGREE ON CONTINUED IRANIAN SANCTIONS

Spot the Socialist…

 


    



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The Golden Age of Gas… Possibly: An Interview With The IEA

Submitted by James Stafford via OilPrice.com,

The potential for a golden age of gas comes along with a big “if” regarding environmental and social impact. The International Energy Agency (IEA)—the “global energy authority”–believes that this age of gas can be golden, and that unconventional gas can be produced in an environmentally acceptable way.

In an exclusive interview with Oilprice.com, IEA Executive Director Maria van der Hoeven, discusses:

  • The potential for a golden age of gas
  • What will the “age” means for renewables
  • What it means for humanity
  • The challenges of renewable investment and technology
  • How the US shale boom is reshaping the global economy
  • Nuclear’s contribution to energy security
  • What is holding back Europe’s energy markets
  • The next big shale venues beyond 2020
  • The reality behind “fire ice”
  • Condensate and the crude export ban
  • The most critical energy issue facing the world today

Interview by. James Stafford of Oilprice.com

Oilprice.com: In 2011, the IEA predicted what it called “the golden age of gas,” with gas production rising 50% over the next 25 years. What does this “golden age” mean for coal, oil and nuclear energy—and for renewables? What does it mean for humanity in terms of carbon emissions? Is the natural gas boom lessening the sense of urgency to work towards renewable energy solutions?

IEA: We didn’t predict a golden age of gas in 2011, we merely asked a pertinent question: namely, are we entering a golden age of gas? And we found that the potential for such a golden age certainly exists, especially given the scale of unconventional gas resources and the advances in technology that allow their extraction. But the potential for a golden age of gas hinges on a big “if,” and we elaborated on this in 2012 in a report called “Golden Rules for a Golden Age of Gas”. Exploiting the world’s vast resources of unconventional natural gas holds the key to golden age of gas, we said, but for that to happen, governments, industry and other stakeholders must work together to address legitimate public concerns about the associated environmental and social impacts. Fortunately, we believe that unconventional gas can be produced in an environmentally acceptable way.

Under the central scenario of the World Energy Outlook-2013, natural gas production rises to 4.98 trillion cubic metres (tcm) in 2035, up nearly 50 percent from 3.38 tcm in 2011. But we have always said that a golden age of gas does not necessarily imply a golden age for humanity, or for our climate. An expansion of gas use alone is no panacea for climate change. While natural gas is the cleanest fossil fuel, it is still a fossil fuel. As we have seen in the United States, the drastic increase in shale gas production has caused coal’s share of electricity generation to slide. Of course, there is also the possibility that increased use of gas could muscle out low-carbon fuels, such as renewables and nuclear, from the energy mix.

OP: When will we see “the golden age of renewables”?

IEA: Although we have not yet predicted a “golden age” of renewables, the current, rapid growth of renewable power is a bright spot in an otherwise bleak picture of global progress towards a cleaner and more diversified energy mix. Still, the investment case for capital-intensive, low carbon power technologies carries challenges. We need to distinguish between two situations:

•    In emerging economies, renewable power often provides a cost-competitive alternative to new fossil based generation and are perceived as part of the solution to questions of energy supply, diversification, and economic development. In China, for example, efforts to reduce local pollution are stimulating major investments in cleaner energy.

•    By contrast, in stable systems with sluggish demand, no technology is competitive with marginal electricity prices, due to overcapacity. Governments are nervous about increasing investment in low-carbon options which impact on consumer prices, and this is causing policy uncertainty. But long term energy security and environmental goals need to be kept in mind.

The overall outlook for renewable electricity remains positive, even as the outlook can vary strongly by market and region. However, the electricity sector comprises less than 20% of total final energy consumption. The growth of renewables in other sectors such as transport and heat has been more sluggish. For a golden age of renewables to materialise, greater progress is needed in these areas, for example, with the development of advanced biofuels and more policy frameworks for renewable heat.

OP: How is the shale boom reshaping the global financial and economic system? Who are the winners and losers in this emerging scenario?

IEA: One of the key messages of our World Energy Outlook-2013 is that lower energy prices in the United States mean that it is well-placed to reap an economic advantage, while higher costs for energy-intensive industries in Europe and Japan are set to be a heavy burden.

Natural gas prices have fallen sharply in the United States – mainly as a result of the shale gas boom –  and today they are about three times lower than in Europe and five times lower than in Japan. Electricity price differentials are also large, with Japanese and European industrial consumers paying on average more than twice as much for electricity as their counterparts in the United States, and even Chinese industry paying  almost double the US level.

Looking to the future, the WEO found that the United States sees its share of global exports of energy-intensive goods slightly increase to 2035, providing the clearest indication of the link between relatively low energy prices and the industrial outlook. By contrast, the European Union and Japan see their share of global exports decline – a combined loss of around one-third of their current share.

OP: The IEA has noted that the US is no longer so dependent on Canadian oil and gas. What could this mean for pending approval of TransCanada’s Keystone XL pipeline? How important is Keystone XL to the US as opposed to its importance for Canada?

IEA: The decision on the Keystone matter is one that must be taken by the United States Government. I am afraid it is not for the IEA to comment.

OP: With the nuclear issue taking center stage in Japan’s election atmosphere, is Japan ready to pull the plug entirely on nuclear, or is it too soon for that?

IEA: This year’s World Energy Outlook, which we will release in November 2014, will carry a special focus on nuclear energy, so please stay tuned. While I won’t discuss what Japan should do, I will say that every country has a sovereign right to decide on the role of nuclear power in its energy mix. Nevertheless, nuclear is one of the world’s largest sources of low-carbon energy, and as such, it has made and should continue to make an important contribution to energy security and sustainability.

A country’s decision to cut the share of nuclear in its energy mix could open up new opportunities for renewables, particularly as some phase-out plans envision the replacement of nuclear capacity largely with renewable energy sources. However, such a decision would also likely lead to higher demand for gas and coal, higher electricity prices, increased import dependency on fossil fuels and electricity, and a more difficult path towards decarbonisation. Such a scenario would therefore make it much more difficult for the world to meet the 2°C climate stabilisation goal, and have potentially negative impacts on energy security.

OP: What is the key factor holding back European energy markets?

IEA: Europe has quite a few advantages but also many hurdles to overcome. If I had to pick one key factor that is holding back European energy markets, I would say it is the lack of cross-border interconnections. Let me explain what I mean. As we showed in WEO 2013, Europe's competitiveness is under pressure, as energy price differences grow between Europe and its major trading partners – the US, China and Russia. High oil and gas import prices combined with low gas and electricity demand, following the recession, are impacting European economies.

Europe should accelerate the use of its indigenous potential and reap the social and economic benefits from energy efficiency, renewable energies and unconventional oil and gas. In open economies, there are significant advantages to be gained from free trade and a large energy market. One example: Today, we cannot make use of competitive electricity prices across the EU, as physical trade barriers exist and markets remain national. Europe is failing to achieve its potential. The electricity grid and system integration is very low, which also serves as a barrier to the full and efficient exploitation of renewable energy potentials. This is why addressing the issue of cross-border interconnections is so important.

OP: Where do you foresee the next “shale boom”?

IEA: According to WEO projections, there will be little non-North American shale development before 2020 due to the much earlier stage of exploration and the time needed to build up the oil field service value chain. Beyond 2020, we project large-scale shale gas production in China, Argentina, Australia as well as significant light tight oil production in Russia. The current reform proposals in Mexico have the potential to put Mexico on the top of that list as well, but they need to be properly implemented.

OP: What is the realistic future of methane hydrates, or “fire ice”?

IEA: Methane hydrates may offer a means of further increasing the supply of natural gas. However, producing gas from methane hydrates poses huge technological challenges, and the relevant extraction technology is in its infancy. Both in Canada and Japan the first test drillings have taken place, and the Japanese government is aiming to achieve commercial production in 10 to 15 years.

One thing I always mention when I am asked about methane hydrates is this: It may seem far off and uncertain, but keep in mind that shale gas was in the same position 10 to 15 years ago. So we cannot rule out that new energy revolutions may take place through technological developments and price incentives.

OP: Have we hit the “crude wall” in the US, the point at which oil production growth may end up slowing due to infrastructure and regulatory constraints?

IEA: In January 2013, the IEA’s Oil Market Report examined the possibility that as surging production continues to move the US closer to becoming a net oil exporter, there may come a time when various regulations, particularly the US ban on exports of crude oil to countries other than Canada, could have an adverse impact on continued investment in LTO – and thus continued growth in production. We called this point the “crude wall”.

A year later, in our January 2014 Oil Market Report, we noted that with US crude oil production exceeding even the boldest of expectations in 2013 by a wide margin, the crude wall now seems to be looming larger than ever. Having said that, challenges to US production growth are not imminent. Potential US growth in 2014 seems a given, even against the backdrop of resurgent non-OPEC supply growth outside North America.

OP: How is this shaping the crude export debate and where do you foresee this debate leading by the end of this year?

IEA: You are better off asking my friends and colleagues in Washington! This is obviously a sensitive topic. Different people feel differently about it, often very strongly. Oil policy always is the product of multiple, sometimes-competing considerations.

OP: What would lifting the ban on crude exports mean for US refiners, and for the US economy?

IEA: Many refiners and other major oil consumers have said they support keeping the ban amid worries that allowing exports would result in higher feedstock costs and erode their competitive advantage, or shift value-added industry abroad. On the other hand, oil producers have in general come out in favour of lifting the ban, arguing that the “crude wall” may become so large that it cannot be overcome; they see the possibility of a glut causing prices to slump and thereby choking off production. We have not produced any detailed analysis on the economic impact of lifting the ban, so I cannot comment on that part of your question.

OP: Are there any other ways around the “crude wall” aside from lifting the export ban?

IEA: As we wrote in our January 2014 Oil Market Report, much of the LTO is produced in the form of lease condensate, which is most optimally processed in a condensate splitter. There is currently only one such facility in the United States, although at least five others are in various stages of planning and construction.

I mention this issue because one could imagine a scenario under which lease condensate is excluded from the crude export restriction. The US Department of Commerce, which enforces the export ban, includes lease condensates in the definition of crude oil. However, this definition could be changed, or the Commerce Department could simply issue lease condensate export licenses at the behest of the President.

OP: How will the six-month agreement to ease sanctions on Iran affect Iranian oil production? And if international sanctions are indeed lifted after this “trial period”, how long will it take Iran to affect a real increase in production?

IEA: The deal between P5+1 and Iran doesn’t change the oil sanctions themselves. The oil sanctions remain fully in place though the P5+1 agreed not to tighten them further. Relaxing insurance sanctions doesn’t mean more oil in the market.

As for the second part of your question, I am afraid I can’t answer hypotheticals and what-ifs.

OP: What is the single most critical energy issue in the US this year?

IEA: I think that if you take the view that the energy-policy decisions you make now have ramifications for many decades to come, and if you believe what scientists tell us about the climate consequences of our energy consumption, then the single most critical energy issue in the US is the same issue for every country: what are you going to do with your energy policy to mitigate the risk of climate change? Energy is responsible for two-thirds of greenhouse-gas emissions, and right now these emissions are on track to cause global temperatures to rise between 3.6 degrees C and 5.3 degrees C. If we stay on our present emissions pathway, we are not going to come close to achieving the globally agreed target of limiting the rise in temperatures to 2 degrees C; we are instead going to have a catastrophe. So energy clearly has to be part of the climate solution – both in the short- and long-term.

OP: What is the IEA’s role in shaping critical energy issues globally and how can its influence be described, politically and intellectually?

IEA: Founded in response to the 1973/4 oil crisis, the IEA was initially meant to help countries co-ordinate a collective response to major disruptions in oil supply through the release of emergency oil stocks to the markets.

While this continues to be a key aspect of our work, the IEA has evolved and expanded over the last 40 years. I like to think of the IEA today as the global energy authority. We are at the heart of global dialogue on energy, providing authoritative statistics, analysis and recommendations. This applies both to our member countries as well as to the key emerging economies that are driving most of the growth in energy demand – and with whom we cooperate on an increasingly active basis.


    



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