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Javier E

The Tiny Swiss Company That Thinks It Can Help Stop Climate Change - The New York Times - 0 views

  • The scientist and historian Vaclav Smil called Haber-Bosch “the most important technical invention of the 20th century.” Bosch had effectively removed the historical bounds on crop yields, so much so that he was widely credited with making “bread from air.” By some estimates, Bosch’s work made possible the lives of more than two billion human beings over the last 100 years.
  • They depend on electric fans to pull air into the ducts and over a special material, known as a sorbent, laced with granules that chemically bind with CO₂; periodic blasts of heat then release the captured gas from the sorbent, with customized software managing the whole catch-and-release cycle.
  • “The first thing they said was: ‘This will never work technically.’ And finally in 2017 we convinced them it works technically, since we built the big plant in Hinwil. But once we convinced them that it works technically, they would say, ‘Well, it will never work economically.’ ”For the moment, skeptics of Climeworks’s business plan are correct: The company is not turning a profit.
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  • it faces the same daunting task that confronted Carl Bosch a century ago: How much can it bring costs down? And how fast can it scale up
  • They believe that over the next seven years they can bring expenses down to a level that would enable them to sell CO₂ into more lucrative markets. Air-captured CO₂ can be combined with hydrogen and then fashioned into any kind of fossil-fuel substitute you want. Instead of making bread from air, you can make fuels from air.
  • What Gebald and Wurzbacher really want to do is to pull vast amounts of CO₂ out of the atmosphere and bury it, forever, deep underground, and sell that service as an offset
  • companies like Climeworks face a quandary: How do you sell something that never existed before, something that may never be cheap, into a market that is not yet real?
  • It’s arguably the case, in fact, that when it comes to reducing our carbon emissions, direct air capture will be seen as an option that’s too expensive and too modest in impact. “The only way that direct air capture becomes meaningful is if we do all the other things we need to do promptly,” Hal Harvey, a California energy analyst who studies climate-friendly technologies and policies, told me
  • In short, the best way to start making progress toward a decarbonized world is not to rev up millions of air capture machines right now. It’s to stop putting CO₂ in the atmosphere in the first place.
  • If the nations of the world were to continue on the current track, it would be impossible to meet the objectives of the 2016 Paris Agreement, which set a goal limiting warming to 2 degrees Celsius or, ideally, 1.5 degrees. And it would usher in a world of misery and economic hardship. Already, temperatures in some regions have climbed more than 1 degree Celsius, as a report by the Intergovernmental Panel on Climate Change noted last October. These temperature increases have led to an increase in droughts, heat waves, floods and biodiversity losses and make the chaos of 2 or 3 degrees’ additional warming seem inconceivable
  • A further problem is that maintaining today’s emissions path for too long runs the risk of doing irreparable damage to the earth’s ecosystems — causing harm that no amount of technological innovation can make right. “There is no reverse gear for natural systems,” Harvey says. “If they go, they go. If we defrost the tundra, it’s game over.” The same might be said for the Greenland and West Antarctic ice sheets, or our coral reefs. Such resources have an asymmetry in their natural architectures: They can take thousands or millions of years to form, but could reach conditions of catastrophic decline in just a few decades.
  • To have a shot at maintaining a climate suitable for humans, the world’s nations most likely have to reduce CO₂ emissions drastically from the current level — to perhaps 15 billion or 20 billion metric tons per year by 2030; then, through some kind of unprecedented political and industrial effort, we need to bring carbon emissions to zero by around 2050
  • To preserve a livable environment we may also need to extract CO₂ from the atmosphere. As Wurzbacher put it, “if you take all these numbers from the I.P.C.C., you end up with something like eight to 10 billion tons — gigatons — of CO₂ that need to be removed from the air every year, if we are serious about 1.5 or 2 degrees.
  • Through photosynthesis, our forests take extraordinary amounts of carbon dioxide from the atmosphere, and if we were to magnify efforts to reforest clear-cut areas — or plant new groves, a process known as afforestation — we could absorb billions more metric tons of carbon in future years.
  • we could grow crops specifically to absorb CO₂ and then burn them for power generation, with the intention of capturing the power-plant emissions and pumping them underground, a process known as bioenergy with carbon capture and storage, or BECCS
  • Ever since the Industrial Revolution, human societies have produced an excess of CO₂, by taking carbon stores from deep inside the earth — in the form of coal, oil and gas — and from stores aboveground (mostly wood), then putting it into the atmosphere by burning it. It has become imperative to reverse the process — that is, take CO₂ out of the air and either restore it deep inside the earth or contain it within new surface ecosystems.
  • “It’s not about saying, ‘I want to plant a tree.’ It’s about saying, ‘We want to plant a billion trees.’
  • “We have to come to grips with the fact that we waited too long and that we took some options off the table,” Michael Oppenheimer, a Princeton scientist who studies climate and policy, told me. As a result, NETs no longer seem to be just interesting ideas; they look like necessities. And as it happens, the Climeworks machines on the rooftop do the work each year of about 36,000 trees.
  • air capture could likewise help counter the impact of several vital industries. “There are process emissions that come from producing iron and steel, cement and glass,” she says, “and any time you make these materials, there’s a chemical reaction that emits CO₂.” Direct air capture could even lessen the impacts of the Haber-Bosch processes for making fertilizer; by some estimates, that industry now accounts for 3 percent of all CO₂ emissions.
  • Wind and solar are now the cheapest forms of energy in the right locations,” Pacala says. “The return on those investments, if you calculated it, would blow the doors off anything in your portfolio. It’s like investing in early Apple. So it’s a spectacular story of success. And direct air capture is precisely the same kind of problem, in which the only barrier is that it’s too costly.”
  • what all the founders have in common is a belief that the cost of capturing a ton of carbon will soon drop sharply.
  • M.I.T.’s Howard Herzog, for instance, an engineer who has spent years looking at the potential for these machines, told me that he thinks the costs will remain between $600 and $1,000 per metric ton
  • He points out that because direct-air-capture machines have to move tremendous amounts of air through a filter or solution to glean a ton of CO₂ — the gas, for all its global impact, makes up only about 0.04 percent of our atmosphere — the process necessitates large expenditures for energy and big equipment. What he has likewise observed, in analyzing similar industries that separate gases, suggests that translating spreadsheet projections for capturing CO₂ into real-world applications will reveal hidden costs. “I think there has been a lot of hype about this, and it’s not going to revolutionize anything,
  • Climeworks’s current goal is to remove 1 percent of the world’s annual CO₂ emissions by the mid 2020s.
  • “Basically, we have a road map — $600, down to $400, down to $300 and $200 a ton,” Wurzbacher said. “This is over the next five years. Down to $200 we know quite well what we’re doing.” And beyond $200, Wurzbacher suggested, things get murkier.
  • To actually capture 1 percent of the world’s carbon emissions by 2025 would, by Gebald’s calculations, require that Climeworks build 250,000 carbon-capture plants like the ones on the roof at Hinwil. That adds up to about 4.5 million carbon collectors
  • The Climeworks founders therefore try to think of their product as the automotive industry might — a piece of mass-produced technology and metal, not the carbon they hope to sequester.
  • “Every CO₂ collector has about the same weight and dimensions of a car — roughly two tons, and roughly 2 meters by 2 meters by 2 meters,” Gebald said. “And all the methods used to produce the CO₂ collectors could be well automated. So we have the automotive industry as a model for how to produce things in large quantities for low cost.
  • n 1954, the economist Paul Samuelson put forward a theory that made a distinction between “private-consumption goods” — bread, cars, houses and the like — and commodities that existed apart from the usual laws of supply and demand.
  • the other type of commodity Samuelson was describing is something now known as a “public good,” which benefits everyone but is not bought, sold or consumed the same way
  • direct air capture’s success would be limited to the size of the market for private goods — soda fizz, greenhouse gas — unless governments decided to intervene and help fund the equivalent of several million (or more) lighthouses.
  • An intervention could take a variety of forms. It could be large grants for research to find better sorbent materials, for instance, which would be similar to government investments that long ago helped nurture the solar- and wind-power industries. But help could also come by expanding regulations that already exist.
  • The Climeworks founders told me they don’t believe their company will succeed on what they call “climate impact” scales unless the world puts significant prices on emissions, in the form of a carbon tax or carbon fee.
  • “Our goal is to make it possible to capture CO₂ from the air for below $100 per ton,” Wurzbacher says. “No one owns a crystal ball, but we think — and we’re quite confident — that by something like 2030 we’ll have a global average price on carbon in the range of $100 to $150 a ton.” There is optimism in this thinking
  • A company that sells a product or uses a process that creates high emissions — an airline, for instance, or a steel maker — could be required to pay carbon-removal companies $100 per metric ton or more to offset their CO₂ output. Or a government might use carbon-tax proceeds to directly pay businesses to collect and bury CO₂.
  • “It doesn’t cost too much to pump CO₂ underground,” Stanford’s Sally Benson says. Companies already sequester about 34 million metric tons of CO₂ in the ground every year, at a number of sites around the world, usually to enhance the oil-drilling process. “The costs range from $2 to $15 per ton. So the bigger cost in all of this is the cost of carbon capture.”
  • The weekend before, Gutknecht told me, he received 900 unsolicited inquiries by email. Many were from potential customers who wanted to know how soon Climeworks could bury their CO₂ emissions, or how much a machine might cost them.
  • A Climeworks app could be installed on my smartphone, he explained. It could then be activated by my handset’s location services. “You fly over here to Europe,” he explained, “and the app tells you that you have just burned 1.7 tons of CO₂. Do you want to remove that? Well, Climeworks can remove it for you. Click here. We’ll charge your credit card.
  • The vast and constant market demand for fuel is why Carbon Engineering has staked its future on synthetics. The world currently burns about 100 million barrels of oil a day.
  • “So let’s say you’d have to supply something like 50 million barrels a day in 2050 of fuels,” he said. “That’s still a monster market.”
  • Carbon Engineering’s chief executive, added that direct-air-capture synthetics have an advantage over traditional fossil fuels: They won’t have to spend a dime on exploration
  • our plants, you can build it right in the middle of California, wherever you have air and water.” He told me that the company’s first large-scale facility should be up and running by 2022, and will turn out at least 500 barrels a day of fuel feedstock — the raw material sent to refineries.
  • Climeworks recently joined a consortium of European countries to produce synthetic methane that will be used by a local trucking fleet. With different tweaks and refinements, the process could be adapted for diesel, gasoline, jet fuel — or it could be piped directly to local neighborhoods as fuel for home furnaces.
  • the new fuels are not necessarily cheaper. Carbon Engineering aspires to deliver its product at an ultimate retail price of about $1 per liter, or $3.75 per gallon. What would make the product competitive are regulations in California that now require fuel sellers to produce fuels of lower “carbon intensity.” To date this has meant blending gas and diesel with biofuels like ethanol, but it could soon mean carbon-capture synthetics too.
  • Since they’re made from airborne CO₂ and hydrogen and could be manufactured just about anywhere, they could rearrange the geopolitical order — tempering the power of a handful of countries that now control natural-gas and oil markets.
  • From an environmental standpoint, air-capture fuels are not a utopian solution. Such fuels are carbon neutral, not carbon negative. They can’t take CO₂ from our industrial past and put it back into the earth
  • Even so, these fuels could present an enormous improvement. Transportation — currently the most significant source of emissions by sector in the United States — could cease to be a net emitter of CO₂
  • “If you can do one carbon-capture facility, where Carbon Engineering or Climeworks can build a big plant, great. You need to do that 5,000 times. And to capture a million tons of CO₂ with direct air capture, you need a small power plant just to run that facility. So if you’re going to build one direct-air-capture facility every day for the next 30 years to get to some of these scenarios, then in addition, we have to build a new mini power plant every day as well.
  • It’s also the case that you have to address two extraordinary problems at the same time, Peters added. “To reach 1.5 degrees, we need to halve emissions every decade,” he said. That would mean persuading entire nations, like China and the United States, to switch from burning coal to using renewables at precisely the same time that we make immense investments in negative-emission technologies.
  • this would need to be done even as governments choose among competing priorities:
  • “The idea of bringing direct air capture up to 10 billion tons by the middle or later part of the century is such a herculean task it would require an industrial scale-up the likes of which the world has never seen,”
  • Pacala wasn’t pessimistic about making a start. He seemed to think it was necessary for the federal government to begin with significant research and investments in the technology — to see how far and fast it could move forward, so that it’s ready as soon as possible
  • Gebald and Wurzbacher seemed to regard the climate challenge in mathematical terms. How many gigatons needed to be removed? How much would it cost per ton? How many Climeworks machines were required? Even if the figures were enormous, even if they appeared impossible, to see the future their way was to redefine the problem, to move away from the narrative of loss, to forget the multiplying stories of dying reefs and threatened coastlines — and to begin to imagine other possibilities.
knudsenlu

The Politics of Trade Wars - The Atlantic - 0 views

  • One inconvenient feature of the global trading system is that efforts to protect the jobs of voting workers in one country risk affecting jobs, and perhaps votes, in another. Thus President Donald Trump’s proposed tariffs on imported aluminum and steel, offered with the rationale that American metalworkers had been losing jobs to foreign competition, alarmed Europe—the continent has its own metalworkers to worry about, whose jobs to some extent depend on access to markets like America’s.
  • The European Union is the second-largest exporter of steel to the U.S. (behind Canada), and said after Trump first proposed the tariffs that it would consider imposing counter-measures against American exports to Europe, including bourbon whiskey and Harley Davidson motorcycles.
  • But if somehow the bloc doesn’t manage to meet the standards “friendly nations” must to get out of the tariffs, it has the potential to get much less friendly. After President George W. Bush attempted to impose a 30-percent steel tariff in 2002, the World Trade Organization ruled that the move violated global trade rules, enabling the EU to threaten retaliation with its own tariffs. Those ones were set to target Harley Davidson motorcycles, Michigan-manufactured cars, and oranges from Florida, where the then-president’s brother, Jeb Bush, was governor. The targeted goods were also produced in electoral swing states. Bush ultimately backed down.
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  • If the U.S. cites national security as its reason for imposing the tariffs in the face of a WTO challenge, it’s unclear how the trade body would respond. “The WTO doesn’t have a lot of experience in adjudicating this sort of dispute,” Oxenford said, noting that the U.S.’s decision to effectively target its allies and geopolitical rivals alike could make the justification seem tenuous. Even if the WTO were to rule against the U.S., it’s unlikely it would change the president’s stance. Trump threatened to pull the U.S. out of the WTO, which he has also accused of being biased against the U.S. “We lose almost all of the lawsuits within the WTO because we have fewer judges than other countries,” Trump said in October. “It’s set up. You can’t win.”
oliviaodon

Ban World Leaders from Twitter - The Atlantic - 0 views

  • Before 2017, a president taking to Twitter to taunt a nuclear power would’ve been unthinkable. But Tuesday, Donald Trump, whose bygone impulsiveness contributed to two failed marriages and the bankruptcies of numerous businesses, engaged in a geopolitical boasting contest with North Korea, sacrificing the benefits of considered diplomacy to satiate his impulsiveness and need for attention:
  • This may be the most irresponsible tweet in history.
  • “The good news is, other countries won’t take talk like this too seriously because they understand Trump is a small man who blusters to make himself feel potent. That’s also the bad news; there’s nowhere left to go rhetorically when we need to signal that we’re serious.” Most likely, that’s the fallout.
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  • By now these truths are self-evident:Twitter was designed to lower barriers to communication and encourage impulsive, off-the-cuff comments—and at that the platform has been wildly successful. Twitter routinely stokes needless conflict. Countless people who use Twitter routinely publish words that are ill-considered.
  • Having global leaders tweeting gives humanity nothing commensurate with the risks we bear so that the powerful can communicate this way.
  • Banning world leaders from the platform might be a loss for them, but it would be  a clear win for humanity: minuscule costs with conceivably civilization-saving benefits.
  • in Trump’s case, there is an absurdity to allowing him to continue tweeting. The platform is now banning people with a few thousand followers to prevent the harm of online harassment—yet it abides a president taunting an erratic totalitarian with an arsenal that could kill millions in minutes if a war were to break out? “You may not make specific threats of violence,” Twitter’s rules state. Mutually assured destruction may well be a necessary evil in our world; communicating it to hostile regimes in a careful, deliberate, responsible manner is part of being president of the United States as most Americans conceive of it; but Twitter is surely within its rights to declare that its platform is neither the time nor the place for such communications––which surely constitute a threat of violence––given the strengths, weaknesses, and limits baked into what it has designed.
  • Twitter should give the people what they want, and ban the most elite of the political elites once and for all. Or if it won’t, it must at least tell the public, in advance of future catastrophe: Would it let a president tweet literally anything? If not, where is the line?
knudsenlu

Putin Is Playing a Dangerous Game in Syria - The Atlantic - 0 views

  • Last weekend in the Middle East, a new wave of chaos swept across the border between Israel and Syria. On Saturday, Iranian forces flew a drone into Israel’s airspace. In retaliation, Tel Aviv attacked the air base near Palmyra from which it had been launched. When Syria’s anti-air systems sought to protect the Iranians, downing one Israeli F-16, they were mauled. Russia, which intervened in the Syrian civil war in 2015 to aid President Bashar al-Assad, had deployed advanced S-400 missile defense systems to his ally. This time, they did nothing to intervene. Moscow seemed willing to let Israel give Iran a bloody nose to warn Assad against aligning himself too closely with Tehran—a double win of sorts.
  • With these wild swings in fortune for Vladimir Putin, the question becomes: Is he in control in Syria, or stuck in the sand? The honest answer: a bit of both.
  • Ensuring the survival of Assad’s authoritarian regime in Damascus was never the sole goal of Russia’s intervention. Instead, its purpose was at least as much to inject itself into a crucial geopolitical battleground and force Washington—which, at the time, sought to isolate Moscow diplomatically—to realize that Russia would not be overlooked. It was also to keep Syria from becoming an Iranian vassal; Moscow and Tehran are, at best, frenemies, happy to try to marginalize the United States yet also fierce competitors seeking influence in the Middle East and South Caucasus
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  • As the conflict devolves further, events are almost certain to spin out of the Kremlin’s control. After the Deir ez-Zor attack, the newspaper Kommersant cited a source saying that the Russian command group in Damascus had not authorized this “dangerous initiative.” This could just be a case of retrospective amnesia. But if true, it illustrates the dangers of messy, multi-player conflicts, in which an imperial power must deal with the fallout when its notional clients and proxies take the initiative. When this extends to picking fights with U.S.-backed forces and potentially even threatening U.S. personnel, it’s a dangerous matter. The odds of this escalating into an outright confrontation remain low, but the risk that Moscow might be forced to back down to avoid one is much greater.
Javier E

We got China wrong. Now what? - The Washington Post - 0 views

  • For years, both Republican and Democratic administrations argued that the gravitational pull of U.S.-dominated international institutions, trade flows, even pop culture, would gradually reshape the People’s Republic, resulting in a moderate new China with which the United States and its Asian allies could comfortably coexist.
  • Chinese President Xi Jinping has just engineered his potential elevation to president for life. This is the latest proof — along with China’s rampant theft of U.S. intellectual property, its military buildup in the South China Sea and Xi’s touting of Chinese-style illiberal state capitalism as “a new option for other countries” — that the powers-that-be in Beijing have their own agenda, impervious to U.S. influence.
  • If there had been more such candor earlier, we might not have President Trump, whose rise owes much to a public backlash against the perceived costs — especially in jobs lost to Chinese imports — of the erstwhile bipartisan China policy consensus.
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  • Trump’s approach to China, a weird mix of open pleading for help with North Korea, fawning praise for Xi and threatened punitive tariffs on Chinese goods, hardly seems calculated to lay the basis for a more sustainable policy.
  • friendlier ties with Beijing seemed like a good idea, even a brilliant one, when then-likely presidential candidate Richard M. Nixon first proposed it during the Cold War
  • the Cold War’s dramatic end spawned a new and loftier rationale for the policy, which had acquired a life of its own. Americans believed that history might be flowing inevitably in favor of free markets and free elections. All we had to do was stay patient, maintain our influence and let China evolve. There would be no long-term conflict between U.S. self-interest and U.S. values.
  • As for geopolitics, the old Nixon-Kissinger gambit is played out, and increasingly Moscow and Beijing cooperate to counter the United States, whether in the Middle East or the Korean Peninsula.
runlai_jiang

How Trump's Tariff Punch Hurt His Pro-Business Agenda - WSJ - 0 views

  • Markets fell after President Donald Trump announced planned tariffs on steel and aluminum imports, an effect that was exacerbated by what the move symbolizes fo
  • When a key economic input suddenly becomes scarce,  it’s called a supply shock: It pushes costs up and economic activity down.
  • This helps explain why markets have responded so badly to President Donald Trump’s announcement of a 25% tariff on steel imports and 10% on aluminum. Like a geopolitical shock that reduces the supply of oil, it’s bad for both inflation and growth.
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  • With investors already on edge about Federal Reserve interest rate increases, the steel tariffs at the margin compound inflation pressure. That effect is so far too small to alter the Fed’s calculus, but a tit-for-tat cycle of retaliation could lead to even more inflation and rate increases than investors or the Fed have anticipated.
  • By following his nationalist instincts Mr. Trump has broken with the pro-business factions in his administration and his party whose policy priorities have been critical to the upswing in business and investor sentiment since he was elected. By willingly hurting U.S. allies over a problem of overcapacity that is mainly China’s doing, he’s cast further uncertainty over the U.S. role as global leader.
  • exacerbated by what the tariffs symbolize for Mr. Trump’s agenda and the broader global economy.
  • Protectionism shrinks markets, raises costs, and reduces how fast a country can grow without generating inflation. U.S. steel and aluminum companies can meet the demand previously filled by imports, but with unemployment at a 17-year low that may require hiring workers away from other industries, putting upward pressure on wages.
  • This is good news in the short run for workers, but bad news for any consumer who must now pay more for cars or beer cans.
  • nvestors speculated that the angry reaction of American allies, in particular the European Union, showed U.S. global leadership is fading and with it the dollar’s appeal as a reserve currency.
  • China may move more quickly to curb its overcapacity, the root of the import surge and price pressure that is hurting U.S. producers. Yet the decision has generated conflict within his own administration, his party and with key U.S. allies that, at least at the margin, counteracts the boost from the rest of his agenda.
anonymous

Whispers of $80 Oil Are Growing Louder - MoneyBeat - WSJ - 0 views

  • Oil prices have been grinding higher and higher, spurring forecasters to predict they could hit $80 a barrel this year.
  • the right combination of geopolitical crises could tip crude prices into the $70 to $80 range. With supplies already so tight, any unexpected disruption could cause prices to surge.
  • After hitting a 5-year low in September 2017, global oil supply disruptions could materially increase in 2018
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  • Higher oil prices (WTI>$60, Brent>$65) now will lead to a correction later in the year,
Javier E

Charles Yu: The Science-Fiction Reality of Life in a Pandemic - The Atlantic - 0 views

  • What does it mean to say that this doesn’t feel real? The feeling seems to derive from the assumption that life before the pandemic, “normal” life, was real. That we have departed from it into strange territory.
  • What the current crisis and our responses to it, both individual and institutional, have reminded us of is not the unreality of the pandemic, but the illusions shattered by it:
  • The grand, shared illusion that we are separate from nature.
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  • That life on Earth is generally stable, not precarious.
  • That, despite what we know from the historical and geological and biological record, human civilization—thanks to advancements in science and medicine and social and governmental structures—exists inside a bubble, protected from the kind of cataclysmic event we are currently experiencing.
  • this supposed technological bubble was just that: a thin layer that popped easily.
  • Even as our stark new reality becomes clear, it remains hard to accept that “normal” was the fiction. It will take some time to let go of the long-held, seldom-questioned assumptions of everyday life: that tomorrow will look like yesterday, next year like the last.
  • These assumptions are a luxury. For me, they are a cross product of my intersecting privileges: born in the United States, to professional parents, at a point in history where my life has proceeded, for the most part, through a series of economic booms without major socio- or geopolitical upheavals.
  • SARS-CoV-2 has been around in some form for thousands of years or more. It is novel only to us, Homo sapiens, the one species that imagines its survival, its success, as the central narrative of the story of this planet.
  • A story with a beginning and middle and end. A story that has structure and rules. A story that means something.
  • But the reality is, zooming out to the largest scale, fighting the pandemic effectively requires us to take actions that go against our instincts, our intuitions, the things we evolved to be good at.
  • We can find meaning in how we fight it, but relying on our old illusions, assuming that we, as humans, will prevail, is dangerous. Life, for us and the virus, is about genes propagating themselves. No amount of magical thinking or bluster or can-do attitude can change that fact.
  • it will be important to remember: Things don’t have to be resolved in a way that works out all right for us, or for our economy, for any particular systems or ways of living. Things aren’t necessarily going to be okay in a reasonable timeframe just because we want them to. To think otherwise is to succumb to the fiction, a sheltered, resource-rich mindset
  • Five hundred years ago, Copernicus re-centered the universe away from us, outward. The COVID-19 outbreak is a reminder: The world isn’t for us; we are part of it. We’re not the protagonists of this movie; there is no movie.
  • What we really mean when we say that this pandemic feels “unimaginable” is that we had not imagined it. Just as imagination can mislead us, though, it will be imagination—scientific, civic, moral—that helps us find new ways of doing things, helps remind us of how far we have to go as a species
  • How little we still understand about our place in this world—terrifying and awful at the moment—but also how much we still get to discover. How fragile and rare our ordered structures are, our fictions, and how precious. How next time, we might rebuild them, stronger.
Javier E

One Simple Idea That Explains Why the Economy Is in Great Danger - The New York Times - 0 views

  • One person’s spending is another person’s income. That, in a single sentence, is what the $87 trillion global economy is.
  • That relationship, between spending and income, consumption and production, is at the core of how a capitalist economy works. It is the basis of a perpetual motion machine. We buy the things we want and need, and in exchange give money to the people who produced those things, who in turn use that money to buy the things they want and need, and so on, forever.
  • What is so deeply worrying about the potential economic ripple effects of the virus is that it requires this perpetual motion machine to come to a near-complete stop across large chunks of the economy, for an indeterminate period of time.
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  • We simply don’t know how the economic machine will respond to the damage that is starting to occur, nor how hard or easy it will be to turn it back on again
  • That adds up to $2.1 trillion a year, 14 percent of total consumption spending — which appears likely to dry up for at least a few weeks and maybe longer.
  • So what might such a collapse in spending in those major categories mean for the other side of the ledger, incomes?
  • That revenue from those sectors goes a lot of places. It pays employees for their labor directly. It goes to suppliers. It pays taxes that finance the police and schoolteachers, rent that rewards property owners, and profits that accrue to investors. All of those flows of cash are in danger as consumption spending plunges.
  • Together, they accounted for $574 billion in total employee compensation in 2018, about 10 percent of the total. It was spread among 13.8 million full-time equivalent employees.
  • In danger is the $11 billion a week they normally pay their employees, not to mention all those payments for rent, debt service and property taxes.
  • Just the potential initial effects from all those restaurant meals not eaten, hotel rooms sitting empty and aircraft temporarily mothballed are potentially huge. And that’s before accounting for the ways those could ripple into second- and third-order effects.
  • what if the plunging price of oil (caused by both geopolitical machinations and the global collapse of demand resulting from coronavirus effects) leads to widespread job losses and bankruptcies in energy-producing areas?
  • How to Win in a Winner-Take-All-World
Javier E

Search for Coronavirus Vaccine Becomes a Global Competition - The New York Times - 0 views

  • while there is cooperation on many levels — including among companies that are ordinarily fierce competitors — hanging over the effort is the shadow of a nationalistic approach that could give the winner the chance to favor its own population and potentially gain the upper hand in dealing with the economic and geostrategic fallout from the crisis.
  • What began as a question of who would get the scientific accolades, the patents and ultimately the revenues from a successful vaccine is suddenly a broader issue of urgent national security.
  • behind the scramble is a harsh reality: Any new vaccine that proves potent against the coronavirus — clinical trials are underway in the United States, China and Europe already — is sure to be in short supply as governments try to ensure that their own people are the first in line.
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  • just as nations have insisted on building their own drones, their own stealth fighters and their own cyberweapons, they do not want to be beholden to a foreign power for access to the drugs that are needed in a crisis.
  • they do not say how, or more important, when. And many analysts recall what happened during the swine flu epidemic in 2009, when a company in Australia that was among the first to develop a single-dose vaccine was required to satisfy demand in Australia before fulfilling export orders to the United States and elsewhere.
  • “I would encourage everyone not to get into this trap of saying we have to get everything into our countries now and close the borders,” said Severin Schwan, the chief executive of the Swiss pharmaceutical company Roche. “It would be completely wrong to fall into nationalist behavior that would actually disrupt supply chains and be detrimental to people around the world.”
  • a vaccine remains at least 12 to 18 months away, both American officials and the leaders of major pharmaceutical companies say.
  • “Vaccines are injected into healthy people, so we need to ensure safety,” a process that takes time,
  • China has made clear it is looking for a national champion — an equivalent to the role that Huawei, a Chinese telecommunications giant, plays in the race to build 5G networks around the world. If the Huawei pattern holds, China could make deals to increase its influence over poorer or less developed countries, which might otherwise might not get affordable access to a vaccine.
  • There are already signs that China is using the moment for geopolitical advantage, delivering help to countries that once would have looked to Europe or the United States. Its decision to ship diagnostic kits to the Philippines, an ally of the United States, and to help Serbia was a leading indicator of what may come with drugs and vaccines, when they are available.
  • In the aftermath of the Ebola plague that flared across West Africa from 2014 to 2016, Norway, Britain and other mostly European countries as well as the Bill and Melinda Gates Foundation began contributing millions of dollars to a multinational organization, the Coalition for Epidemic Preparedness Initiatives, to fund vaccine research.
  • All of its funding agreements included provisions for equal access to assure that “appropriate vaccines are first available to populations when and where they are needed to end an outbreak or curtail an epidemic, regardless of ability to pay,” the organization said in a statement.
  • In the past two months, the coalition has funded research into eight of the most promising candidates to block the coronavirus — including CureVac, the Germany company.
Javier E

Opinion | This Is the One Thing That Might Save the World From Financial Collapse - The New York Times - 0 views

  • This is a big problem: An enormous amount of global financial activity depends on the use of the dollar. If we are to contain the fallout from the crisis, America’s central bank must act as a lender of last resort not just to America’s financial system but also to the entire world’s.
  • The good news is that the Federal Reserve is taking its responsibility seriously: It is funneling dollars to central banks around the world. But is the Fed fighting the last war?
  • The question turns on what we mean by global finance. In 2008 the dollar shortage was confined largely to the banks of Europe and America
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  • The coronavirus crisis explodes that 20th-century framework and poses the question: How does America’s central bank supply dollar liquidity to a polycentric world economy?
  • In 2013, the agreement to swap was made permanent. A privileged group of central banks — those of Canada, Britain, Switzerland and Japan, as well as the European Central Bank — were granted what amounted to unlimited drawing rights on dollars, in exchange for which they would give their own currency as collateral.
  • Finally, there is the question of China. In 2008, China was already the main driver of global growt
  • Three things have changed since 2008. First, dollars are being used on a new scale by new financial actors. Second, the balance of the world economy has further shifted from the European Union-United States-Japan axis toward emerging markets. And third, the politics of the world economy have become far more antagonistic.
  • As for the growing power of emerging markets, China leads the way. But the growth of economies like Indonesia, Malaysia, Thailand and Turkey has also been spectacular. Once a relatively marginal part of the world economy, the emerging economies are now key drivers of global growth
  • But they are also a tool of geopolitics: The dollar network provides a financial safety net for the banks of America’s major allies. It is not by accident that no swap was ever considered for Russia or China.
  • Today, the country’s economy is larger than ever, as are its holdings of American assets. All told, the foreign debts of China’s businesses come to $1.3 trillion. As the global scramble for dollars begins and the American currency rises in value, those debts become less sustainable. That risks unleashing a chain reaction.
  • Now the U.S. Treasury market is shaking, and the relationship between the two counties — in an era of viral conspiracy theories and trade wars — has sharply deteriorated. How can the Fed manage relations with China’s central bank in these circumstances?
Javier E

This is how a superpower commits suicide - The Washington Post - 0 views

  • As an official from one of America’s key partners in the region put it to me earlier this year: “Is this how superpowers commit suicide?” It appears the answer is yes.
  • While America continues to maintain a significant military edge over its closest rivals, it’s gradually losing the main battle that is defining this century: trade and investment.
  • Meanwhile, China is busy shaping the world in its own image with verve and vigor. In a surreal twist of events, a communist regime has now emerged as the unlikely guardian of globalization and multilateral diplomacy.
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  • Since Trump’s ascent to power, America’s standing in the world has experienced a virtual collapse. According to the Pew Research Center, international confidence in American leadership has declined significantly in the past year. This has been most acutely felt in the Asia-Pacific region, the new center of gravity in global geopolitics.
  • Among America’s Asian allies, such as South Korea and Japan, confidence in the American president’s ability to make the right judgment has dropped by as much as 71 percent and 54 percent, respectively
  • In Indonesia, the world’s largest Muslim nation, it dropped by 41 percent. This is nothing short of a disaster for American soft power.
  • In contrast, Chinese President Xi Jinping, speaking at APEC, described globalization as an “irreversible historical trend.” He promoted a “multilateral trading regime and practice” to allow “developing members to benefit more from international trade and investment.” The statements echoed Xi’s high-profile speech at the World Economic Forum in Davos earlier this year, where he effectively presented China as the vanguard of the global economic order.
  • Those were not just empty words. China has forged ahead, winning over the region and the world with an all-consuming sense of purpose. Xi has helped established the Beijing-based Asian Infrastructure Investment Bank and the Shanghai-based New Development Bank as alternatives to the U.S.-dominated World Bank and International Monetary Fund, as well as the Japan-dominated Asian Development Bank.  
Javier E

Obama tried to give Zuckerberg a wake-up call over fake news on Facebook - The Washington Post - 0 views

  • There has been a rising bipartisan clamor, meanwhile, for new regulation of a tech industry that, amid a historic surge in wealth and power over the past decade, has largely had its way in Washington despite concerns raised by critics about its behavior.
  • In particular, momentum is building in Congress and elsewhere in the federal government for a law requiring tech companies — like newspapers, television stations and other traditional carriers of campaign messages — to disclose who buys political ads and how much they spend on them.
  • “There is no question that the idea that Silicon Valley is the darling of our markets and of our society — that sentiment is definitely turning,” said Tim O’Reilly, an adviser to tech executives and chief executive of the influential Silicon Valley-based publisher O’Reilly Media.
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  • the Russian disinformation effort has proven far harder to track and combat because Russian operatives were taking advantage of Facebook’s core functions, connecting users with shared content and with targeted native ads to shape the political environment in an unusually contentious political season, say people familiar with Facebook’s response.
  • Unlike the Islamic State, what Russian operatives posted on Facebook was, for the most part, indistinguishable from legitimate political speech. The difference was the accounts that were set up to spread the misinformation and hate were illegitimate.
  • Facebook’s cyber experts found evidence that members of APT28 were setting up a series of shadowy accounts — including a persona known as Guccifer 2.0 and a Facebook page called DCLeaks — to promote stolen emails and other documents during the presidential race. Facebook officials once again contacted the FBI to share what they had seen.
  • The sophistication of the Russian tactics caught Facebook off-guard. Its highly regarded security team had erected formidable defenses against traditional cyber attacks but failed to anticipate that Facebook users — deploying easily available automated tools such as ad micro-targeting — pumped skillfully crafted propaganda through the social network without setting off any alarm bells.
  • One of the theories to emerge from their post-mortem was that Russian operatives who were directed by the Kremlin to support Trump may have taken advantage of Facebook and other social media platforms to direct their messages to American voters in key demographic areas in order to increase enthusiasm for Trump and suppress support for Clinton.
  • the intelligence agencies had little data on Russia’s use of Facebook and other U.S.-based social media platforms, in part because of rules designed to protect the privacy of communications between Americans.
  • “It is our responsibility,” he wrote, “to amplify the good effects [of the Facebook platform] and mitigate the bad — to continue increasing diversity while strengthening our common understanding so our community can create the greatest positive impact on the world.”
  • The extent of Facebook’s internal self-examination became clear in April, when Facebook Chief Security Officer Alex Stamos co-authored a 13-page white paper detailing the results of a sprawling research effort that included input from experts from across the company, who in some cases also worked to build new software aimed specifically at detecting foreign propaganda.
  • “Facebook sits at a critical juncture,” Stamos wrote in the paper, adding that the effort focused on “actions taken by organized actors (governments or non-state actors) to distort domestic or foreign political sentiment, most frequently to achieve a strategic and/or geopolitical outcome.” He described how the company had used a technique known as machine learning to build specialized data-mining software that can detect patterns of behavior — for example, the repeated posting of the same content — that malevolent actors might use.  
  • The software tool was given a secret designation, and Facebook is now deploying it and others in the run-up to elections around the world. It was used in the French election in May, where it helped disable 30,000 fake accounts, the company said. It was put to the test again on Sunday when Germans went to the polls. Facebook declined to share the software tool’s code name. 
  • Officials said Stamos underlined to Warner the magnitude of the challenge Facebook faced policing political content that looked legitimate. Stamos told Warner that Facebook had found no accounts that used advertising but agreed with the senator that some probably existed. The difficulty for Facebook was finding them.
  • Technicians then searched for “indicators” that would link those ads to Russia. To narrow down the search further, Facebook zeroed in on a Russian entity known as the Internet Research Agency, which had been publicly identified as a troll farm.
  • By early August, Facebook had identified more than 3,000 ads addressing social and political issues that ran in the United States between 2015 and 2017 and that appear to have come from accounts associated with the Internet Research Agency.
  • Congressional investigators say the disclosure only scratches the surface. One called Facebook’s discoveries thus far “the tip of the iceberg.” Nobody really knows how many accounts are out there and how to prevent more of them from being created to shape the next election — and turn American society against itself.
mrflanagan17

Donald Trump flips on NATO, China, Russia and Syria - CNNPolitics.com - 0 views

  • NATO, he said, is "no longer obsolete."
  • Trump praised Federal Reserve Chair Janet Yellen, whom he had previously pledged to replace when her term expires
  • previous presidents have often remarked that the world looks a lot different from the Oval Office than from a campaign rally.
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  • adopted the most skeptical view he has yet displayed on the possibility of improving relations with the Kremlin, a position he once advanced as a candidate and that flew in the face of geopolitical realities and universal elite opinion in Washington.
  • "Right now we are not getting along with Russia at all. We may be at an all-time low in terms of relationship with Russia,"
  • aying the communist giant was guilty of "rape" against the US economy and promising it would be branded a currency manipulator on his first day in the Oval Office.
  • "Circumstances change,"
  • The administration has to make its assessment on where China stands now, not where it was during the campaign, Spicer said
  • he indicated that NATO countries have been performing better in terms of their financial commitments.
  • His demotion was seen as another sign that the more moderate, establishment-oriented influences in his administration
  • he President has spent most of his first 100 days in office torching conventional political practice, trading in untruths and exaggerations, and pouring oil on political controversies on Twitter
  • Trump sent shockwaves through Europe by declaring that the most successful military alliance in history was "obsolete."
  • "I complained about that a long time ago and they made a change, and now they do fight terrorism. I said it was obsolete; it's no longer obsolete."
  • He noted that the only time NATO invoked its common defense clause, Article Five, was after 9/11
  • t would be a fantastic thing if we got along with Putin, and if we got along with Russia. And that could happen, and it may not happen, it may be just the opposite," Trump said.
  • Dead children -- there can't be a worse sight, and it shouldn't be allowed. That's a butcher. That's a butcher.
  • I think he wants to help us with North Korea.
  • And I said, the way you're going to make a good trade deal is to help us with North Korea; otherwise we're just going to go it alone."
  • he could have put policies that underpinned 40 years of Sino-US relations at risk.
  • gave a hint of flexibility on his demands for China to reverse the trade imbalance with the United States
silveiragu

What Liberal World Order? by Mark Leonard - Project Syndicate - 0 views

  • LONDON – After the annus horribilis that was 2016, most political observers believe that the liberal world order is in serious trouble. But that is where the agreement ends.
  • When the West, and especially the United States, dominated the world, the liberal order was pretty much whatever they said it was.
  • But as global power has shifted from the West to the “rest,” the liberal world order has become an increasingly contested idea, with rising powers like Russia, China, and India increasingly challenging Western perspectives. And, indeed, Merkel’s criticism in Munich of Russia for invading Crimea and supporting Syrian President Bashar al-Assad was met with Lavrov’s assertions that the West ignored the sovereignty norm in international law by invading Iraq and recognizing Kosovo’s independence.
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  • The original iteration – call it “Liberal Order 1.0” – arose from the ashes of World War II to uphold peace and support global prosperity.
  • Liberal Order 1.0 had its limits – namely, sovereign borders. Given the ongoing geopolitical struggle between the US and the Soviet Union, it could not even quite be called a “world order.” What countries did at home was basically their business, as long as it didn’t affect the superpower rivalry.
  • After the collapse of the Soviet Union
  • Liberal Order 2.0 – penetrated countries’ borders to consider the rights of those who lived there.
  • But now the West itself is rejecting the order that it created, often using the very same logic of sovereignty that the rising powers used
  • With the United Kingdom having rejected the European Union and US President Donald Trump condemning free-trade deals and the Paris climate agreement, the more fundamental Liberal Order 1.0 seems to be under threat.
  • European countries are unsure how to respond to this new global disorder. Three potential coping strategies have emerged.
  • The first would require a country like Germany, which considers itself a responsible stakeholder and has some international heft, to take over as a main custodian of the liberal world order
  • A second strategy, exemplified today by Turkey under President Recep Tayyip Erdoğan
  • Turkey isn’t trying to overturn the existing order, but it doesn’t feel responsible for its upkeep, either.
  • extract as much as possible from Western-led institutions like the EU and NATO,
  • ostering mutually beneficial relationships with countries
  • The third strategy is simple hypocrisy: Europe would talk like a responsible stakeholder, but act like a profit maximizer. This is the path British Prime Minister Theresa May took when she met with Trump in Washington, DC. She said all the right things about NATO, the EU, and free trade, but pleaded for a special deal with the US outside of those frameworks.
Javier E

How World War I Shapes U.S. Foreign Policy - The Atlantic - 0 views

  • As in 1946, the East would have been dominated by an authoritarian regime that looked upon the liberal and democratic Anglo-American West not just as a geopolitical antagonist, but as an ideological threat.
  • But unlike in 1946, when the line was drawn on the Elbe and the West included the wealthiest and most developed regions of Europe, this imaginary 1919 line would have been drawn on the Rhine, if not the Scheldt and the Meuse, with the greatest concentration of European industry on the Eastern side. Unlike in 1946, the newly dominant power in Eastern Europe would not have been Europe’s most backward major nation (Russia), but its most scientifically and technologically advanced nation (Germany).
  • In other words, the United States would have gotten an early start on the Cold War, and maybe a second hot war, supported by fewer and weaker allies against a richer and more dangerous opponent—and one quite likely to have developed the atomic bomb and the intercontinental ballistic missile first.
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  • a German-dominated Europe? That’s what exists now. But while that’s funny to say, it’s not quite true—nor is Angela Merkel’s Germany any kind of equivalent of the kaiser’s. Germany leads Europe today by consent, not coercion. It is a reliable member of, and leading partner in, the larger Western alliance, not a rival and competitor against that alliance. It is a status-quo power, not the jumpy, reckless challenger to the status quo that troubled the peace of Europe from the 1860s to the 1940s
  • The question confronting the United States in 1917 was the same question that confronted Americans in 1941, and again after World War II, and now again as China rises: Who will shape world order? The United States and its liberal democratic traditions? Or challengers impelled by aggressive authoritarian ideologies of one kind or another?
  • there was one of Wilson’s genuine phrases that did aptly describe what the issue was in 1917, and what it has been ever since. In his April 2 speech to Congress asking for a declaration of war on Germany, Wilson insisted that the “world must be made safe for democracy.”
  • The kaiser’s generals reckoned that the planet was not big enough both for their ambitions and American power. Americans for a long time hoped otherwise, but their adversaries saw more clearly—and forced the issue
  • Human beings admire winners. In the year 1940, when democracy looked a loser, Anne Morrow Lindbergh hailed German fascism as “the wave of the future.” Had Imperial Germany prevailed in 1918, there would have been many to argue that Otto von Bismarck’s vision of the future—“iron and blood”—had decisively triumphed over Abraham Lincoln’s “government of the people, by the people, for the people.”
  • The great American hope is that the country can win a final victory over dangerous enemies and then never think about the external world ever again. When that hope is balked, when the Armistice does not deliver eternal peace and self-balancing security, many Americans blame themselves: If the external world is recalcitrant, America must have provoked it. Self-accusation is as American as self-assertion—and as based on illusions.
  • America has acted as it has over the past century not because it is so good or so bad, but because it is so rich, so visible, and so strong.
  • Had the Western Allies lost the First World War, European democracy would have failed the test that American democracy surmounted in the Civil War: the test of survival in the competition between nations and regimes.
  • To understand the conflict’s legacy, consider what might have been.
krystalxu

China's 'Arab Pivot' Signals the End of Non-Intervention | The Diplomat - 0 views

  • the cutting of diplomatic ties between Iran and a handful of Sunni governments.
  • China’s growing international activities, specifically those attached to the Middle East are part and parcel to a new era of “internationalization” for China
  • China is now part of the complex geopolitical mire of the Middle East and with its increasingly dependence on oil, disengaging from the region even willingly will be a daunting task.
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  • China has been openly vocal about its interests in building ties with Middle East states, predominantly as a way to probe for opportunities to satisfy China’s burgeoning energy needs,
  • Another is the formulation and implementation of humanitarian assistance programs, which can easily act as coverage for establishing the presence of a conflict-ready military force.
  • Beijing’s presence in Syria brings it in closer alignment with Russia.
  • Beijing will need to turn to the pressing issues of how to operate now that its has vacated its longstanding positions of non-alignment and non-intervention.
  • Syria represents just one case in the broader Middle East, but is an instructive example of the complexities ahead.
  • Uyghur presence and an enduring insurgency in Syria and Iraq presents the great instability and a challenge to China’s “One Belt, One Road” (OBOR) project.
  • China’s peacekeeping contributions began in the early 1990s, and troop deployments continued with significant contributions reaching nearly 2,000 troops by 2009.
  • China is standing at the epicenter of instability in the region.
  • Latent expectations of alignment by Beijing with specific Middle East states already exist, having been established decades prior to its present-day interactio
saberal

China and Russia Agree to Explore the Moon Together - The New York Times - 0 views

  • China and Russia have agreed to jointly build a research station on or around the moon, setting the stage for a new space race.
  • The joint announcement by China and Russia on Tuesday has the potential to scramble the geopolitics of space exploration, once again setting up competing programs and goals for the scientific and, potentially, commercial exploitation of the moon. This time, though, the main players will be the United States and China, with Russia as a supporting player.
  • In recent years, China has made huge advances in space exploration, putting its own astronauts in orbit and sending probes to the moon and to Mars.
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  • It has effectively drafted Russia as a partner in missions that it has already planned, outpacing a Russian program that has stalled in recent years.
  • The two countries did not detail their joint projects nor set a timeline. According to a statement by the China National Space Administration, they agreed to “use their accumulated experience in space science research and development and use of space equipment and space technology to jointly formulate a route map for the construction of an international lunar scientific research station.”
  • The Soviet Union initially led the first space race in the mid-20th century before falling behind the United States, which put the first man on the moon in 1969, a feat the Soviets never managed.
  • China, by contrast, was never invited to the International Space Station, as American law prohibits NASA from cooperating with Beijing.
  • China pledged to keep the joint project with Russia “open to all interested countries and international partners,”
  • With Russia by its side, China could now draw in other countries across Asia, Africa and Latin America, establishing parallel programs for lunar development, said Namrata Goswami, an independent analyst and co-author of a new book on space exploration, “Scramble for the Skies.”
Javier E

'Insanely cheap energy': how solar power continues to shock the world | Energy | The Guardian - 0 views

  • Over the last two decades, however, the IEA has consistently failed to see the massive growth in renewable energy coming. Not only has the organisation underestimated the take-up of solar and wind, but it has massively overstated the demand for coal and oil.
  • Jenny Chase, head of solar analysis at BloombergNEF, says that, in fairness to the IEA, it wasn’t alone.
  • “When I got this job in 2005, I thought maybe one day solar will supply 1% of the world’s electricity. Now it’s 3%. Our official forecast is that it will be 23% by 2050, but that’s completely underestimated,”
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  • This rapid radical reduction in the price of PV solar is a story about Chinese industrial might backed by American capital, fanned by European political sensibilities and made possible largely thanks to the pioneering work of an Australian research team.
  • “We’ve got to the point where solar is the cheapest source of energy in the world in most places. This means we’ve been trying to model a situation where the grid looks totally different today.”
  • Every time you double producing capacity, you reduce the cost of PV solar by 28%
  • “The first reaction was: that’s the future. Everybody said that’s the future. But they also said it was one step too early. What they meant was that there was no market for it yet. In China at the time, if you mentioned solar, people thought of solar hot water.”
  • It was a moment that opened up what was possible from the industry, and the new upper limit was “set” at 25% – another barrier Green and his team would smash in 2008. In 2015, they built the world’s most efficient solar cell, achieving a 40.6% conversion rate using focused light reflected off a mirror.
  • In the very early years of the industry, the received wisdom had been that a 20% conversion rate marked the hard limit of what was possible from PV solar cells. Green, however, disagreed in a paper published in 1984.A year later, his team built the first cell that pushed past that limit, and in 1989 built the first full solar panel capable of running at 20% efficiency.
  • All that would change when Germany passed new laws encouraging the uptake of solar power. Quickly it became clear there was a massive global demand and the world’s manufacturers were struggling to keep up with supply.
  • Spying an opportunity for investment, a consortium that included Actis Capital and Goldman Sachs came knocking to pitch Shi on taking the company public. When the company listed on the New York Stock Exchange in 2005, it raised $420m and made Shi an instant billionaire. A year later he would be worth an estimated $3bn and crowned the richest man in China, earning him the moniker “the Sun King”.
  • Around 2012 the world market was flooded with solar panels, sending the price plummeting through the floor, leaving SunTech vulnerable. Already under intense financial pressure, disaster struck when an internal investigation found a takeover bid it had launched had been guaranteed by €560m in fake German government bonds.
  • In a quirk of history, what had begun as an American drive to wean itself off oil was eventually taken up by China, which made solar power dirt cheap in the process.“The Chinese approach to renewables is all about energy security,” Mathews says. “At the scale from which they’re building new industries, they would need colossal imports of conventional fossil fuels, which would cripple them economically.
  • “They can get around that problem, which is a geopolitical obstacle, by manufacturing their own energy equipment.”
  • “We think a 40% module, rather than the 22% you can do nowadays with PERC, is what the industry will be doing once we perfect this stacking approach,” Green says. “We’re just trying to find a new cell that will have all the qualities of silicon that we can stack on top of silicon.
  • “The International Energy Agency now says solar is providing the cheapest energy the world has ever seen. But we’re headed towards a future of insanely cheap energy.“It’s a fundamentally different world we’re moving into.”
anonymous

The most dangerous place on Earth | The Economist - 0 views

  • THE TEST of a first-rate intelligence, wrote F. Scott Fitzgerald, is the ability to hold two opposing ideas in mind at the same time and still retain the ability to function. For decades just such an exercise of high-calibre ambiguity has kept the peace between America and China over Taiwan
  • this strategic ambiguity is breaking down. The United States is coming to fear that it may no longer be able to deter China from seizing Taiwan by force. Admiral Phil Davidson, who heads the Indo-Pacific Command, told Congress in March that he worried about China attacking Taiwan as soon as 2027.
  • One reason is economic. The island lies at the heart of the semiconductor industry. TSMC, the world’s most valuable chipmaker, etches 84% of the most advanced chips. Were production at TSMC to stop, so would the global electronics industry, at incalculable cost.
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  • Taiwan is an arena for the rivalry between China and America. Although the United States is not treaty-bound to defend Taiwan, a Chinese assault would be a test of America’s military might and its diplomatic and political resolve. If the Seventh Fleet failed to turn up, China would overnight become the dominant power in Asia.
  • The government in Beijing insists it has a duty to bring about unification—even, as a last resort, by means of invasion. The Taiwanese, who used to agree that their island was part of China (albeit a non-Communist one), have taken to electing governments that stress its separateness, while stopping short of declaring independence.
  • Some American analysts conclude that military superiority will sooner or later tempt China into using force against Taiwan, not as a last resort but because it can. China has talked itself into believing that America wants to keep the Taiwan crisis boiling and may even want a war to contain China’s rise.
  • Xi Jinping, China’s president, has not even begun to prepare his people for a war likely to inflict mass casualties and economic pain on all sides. In its 100th year the Communist Party is building its claim to power on prosperity, stability and China’s status in its region and growing role in the world. All that would be jeopardised by an attack whose result, whatever the US Navy says, comes with lots of uncertainty attached, not least over how to govern a rebellious Taiwan. Why would Mr Xi risk it all now, when China could wait until the odds are even better?
  • America requires weapons to deter China from launching an amphibious invasion; it must prepare its allies, including Japan and South Korea; and it needs to communicate to China that its battle plans are credible. This will be a tricky balance to strike. Deterrence usually strives to be crystal-clear about retaliation.
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