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Javier E

Russians abandon wartime Russia in historic exodus - The Washington Post - 0 views

  • Initial data shows that at least 500,000, and perhaps nearly 1 million, have left in the year since the invasion began — a tidal wave on scale with emigration following the 1917 Bolshevik Revolution and the Soviet Union’s collapse in 1991.
  • The huge outflow has swelled existing Russian expatriate communities across the world, and created new ones.
  • Some fled nearby to countries like Armenia and Kazakhstan, across borders open to Russians. Some with visas escaped to Finland, the Baltic states or elsewhere in Europe. Others ventured farther, to the United Arab Emirates, Israel, Thailand, Argentina. Two men from Russia’s Far East even sailed a small boat to Alaska.
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  • The financial cost, while vast, is impossible to calculate. In late December, Russia’s Communications Ministry reported that 10 percent of the country’s IT workers had left in 2022 and not returned.
  • those remaining in the depleted political opposition also faced a choice this year: prison or exile. Most chose exile. Activists and journalists are now clustered in cities such as Berlin and the capitals of Lithuania, Latvia and Georgia.
  • “This exodus is a terrible blow for Russia,” said Tamara Eidelman, a Russian historian who moved to Portugal after the invasion. “The layer that could have changed something in the country has now been washed away.”
  • the influx of Russians into countries such as Kazakhstan and Kyrgyzstan, which have long sent immigrants to Russia, set off political tremors, straining ties between Moscow and the other former Soviet states. Real estate prices in those countries have shot up, causing tensions with local populations.
  • For many Russians choosing to flee, Armenia was a rare easy option. It is one of five ex-Soviet countries that allow Russians to enter with just a national ID — making it a popular destination for former soldiers, political activists and others needing a quick escape.
  • Given the shared religion and use of language, Russians typically do not face animosity or social stigma in Armenia. Obtaining residency permits is also straightforward, and living costs are lower than in the European Union.
  • Yerevan has attracted thousands of IT workers, young creatives and working-class people, including families with children, from across Russia. They have established new schools, bars, cafes and robust support networks.
  • n the courtyard of the “Free School” for Russian children, established in April, Maxim, a construction company manager, was waiting for his 8-year-old son, Timofey. The school started with 40 students in an apartment. Now, there are nearly 200 in a multistory building in the city center.
  • “I did not want to be a murderer in this criminal war,” said Andrei, who is being identified by his first name for safety reasons
  • Like the White Russian emigres of the Bolshevik era and the post-Soviet immigrants of the 1990s, many of those leaving Russia because of the war in Ukraine are probably gone for good.
  • The family has adapted seamlessly to Yerevan. Everyone around them speaks Russian. Maxim works remotely on projects in Russia. Timofey likes his school and is learning Armenian. Maxim said he is sure the family will not return to Russia.
  • Tanya Raspopova, 26, arrived in Yerevan last March, with her husband but without a plan, overwhelmed and frightened.Then she heard that another emigre was seeking partners to set up a bar, a space where Russian expats could come together, and she wanted to help. Tuf, named after the pink volcanic rock common throughout Yerevan, opened its doors within a month.
  • They started with a neon-lit bar and kitchen on the ground floor, which soon expanded into a small courtyard. Then they opened up a second floor, then a third. Upstairs there is now a recording studio, a clothing boutique and a tattoo parlor. On a Wednesday night in January, the place was packed with young Russians and Armenians singing karaoke, drinking cocktails and playing ping-pong. “We have since created such a big community, a big family,” Raspopova said. “Tuf is our new home.”
  • Thousands have chosen the UAE, which did not join Western sanctions and still has direct flights to Moscow, as their new home. Russians enjoy visa-free travel for 90 days, and it is relatively easy to get a national ID, through business or investment, for a longer stay.
  • The high cost of living means there are no activists or journalists. Dubai is a haven, and the go-to playground, for Russian tech founders, billionaires under sanctions, unpenalized millionaires, celebrities, and influencers.
  • Shortly after the invasion, conversations in Moscow’s affluent Patriarch Ponds neighborhood turned to the best Dubai real estate deals, said Natalia Arkhangelskaya, who writes for Antiglyanets, a snarky and influential Telegram blog focused on Russia’s elite. A year later, Russians have ousted Brits and Indians as Dubai’s top real estate buyers, Russian-owned yachts dock at the marina, and private jets zigzag between Dubai and Moscow.
  • Russians can still buy apartments, open bank accounts and snag designer leather goods they previously shopped for in France.
  • The UAE’s embrace of foreign business has lured a stream of Russian IT workers seeking to cut ties with Russia and stay linked to global markets. Start-ups seek financing from state-supported accelerators. Larger firms pursue clients to replace those lost to sanctions.
  • About a dozen people arrived to discuss opportunities in India, which has maintained ties with Russia despite the war. Most expressed bitterness about the Kremlin’s politics and a longing for Moscow when it was an aspiring global hub.
  • “The most important thing for me is to be able to develop international projects and to integrate my kids into a global community, so they grow up in a free environment,”
  • Andrei works as a delivery driver and shares a modest room with two other men in a shelter set up by Kovcheg, a support organization for Russian emigrants. “Before the war, I never followed politics, but after the invasion, I started reading about everything,” Andrei said. “I feel so ashamed about what Russia has done.”
  • “Every extra month leads people to get used to a different country,” she said. “They get a job there, their children go to school, they begin to speak a different language. The longer the war lasts — the longer the dictatorship in the country continues — the fewer people will return.”
  • the expats could become “a repository of relevant skills for a better, freer, modern Russia.” For now, though, Rojansky said, the outflow sends a clear message.
Javier E

Ukraine Crisis Kicks Off New Superpower Struggle Among U.S., Russia and China - WSJ - 0 views

  • Russia’s audacious military mobilization in and around Ukraine is the first major skirmish of a new order in international politics, with three major powers jostling for position in ways that threaten America’s primacy.
  • Russia and China have built a thriving partnership based in part on a shared interest in diminishing U.S. power. Unlike the Sino-Soviet bloc of the 1950s, Russia is a critical gas supplier to Europe, while China isn’t an impoverished, war-ravaged partner but the world’s manufacturing powerhouse with an expanding military.
  • To do this, Mr. Putin shifted military units from Russia’s border with China, showing confidence in his relations with Beijing. The two powers, in effect, are coordinating to reshape the global order to their advantage, though their ties stop short of a formal alliance.
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  • Russian President Vladimir Putin is demanding that the West rewrite the post-Cold War security arrangements for Europe and demonstrated that Russia has the military capability to impose its will despite Western objections and economic sanctions.
  • Even with annual defense budgets that soared over $700 billion, coping with an urgent Russian-generated crisis while preparing for a Chinese threat whose peak is still years away presents an enormous challenge for the Pentagon.
  • “And we’re seeing that while Beijing doesn’t really like Putin’s tactics, they’re willing to band together as authoritarian states against the Western democracies,” Ms. Flournoy added. “We are going to see more and more of that in the future.”
  • China’s Communist Party leadership also saw pro-democracy protest movements in former Soviet republics as U.S.-engineered plots that could ultimately be used against Beijing.
  • For much of the past decade, the U.S. security establishment began taking note of what the Pentagon in 2015 called the “re-emergence of great power competition” and shifted from its emphasis of counterterrorism operations in the Middle East and Southwest Asia.
  • Defense Secretary Lloyd Austin has repeatedly cast China as the “pacing challenge” while Russia was seen as the lesser longer-term danger.
  • “We all thought we were looking at a Europe whole, free and at peace indefinitely,” said Michele Flournoy, who served as the Pentagon’s top policy official during the Obama administration. “We knew that Russia would conduct gray zone operations and that Putin would use his KGB playbook to create instability on his periphery. But a wholesale invasion of a sovereign country to reorient its government is a different moment.”
  • A recent poll by the European Council on Foreign Relations noted most Europeans see the Ukraine crisis as a broader threat to Europe. Some current and former officials, however, worry that the alliance’s solidarity could fray in the years ahead as it debates the need for greater military spending and wrestles whether its military ties with Georgia might stir new confrontations with Moscow.
  • The era of nuclear reductions may come to an end as the U.S. military establishment argues for a large enough nuclear arsenal to deter both Russia’s formidable nuclear weaponry and China’s rapidly growing nuclear forces, which aren’t limited by any arms-control agreement.
  • “The United States is going to have to get used again to operating in multiple theaters simultaneously—not just militarily, but in terms of psychology and foreign-policy making,”
  • Already, debates are emerging among U.S. defense experts on whether the Pentagon should give equal weight to the twin challenges from Beijing and Moscow or focus more on the Pacific.
  • Should the West impose crippling sanctions on Russian banks and major companies, Moscow is likely to become more reliant on Beijing, which has issued a digital currency and is building a payments system separate from the West’s.
  • “It is already ending the amnesia about the importance of energy security,” said Daniel Yergin, vice chairman of research firm IHS Markit. “It means a new emphasis on diversification of energy sources for Europe and a new look at U.S. domestic and international energy policies.”
  • Advocates of using energy as a geopolitical tool say Washington should promote investment in U.S. oil and natural gas and approve new LNG export terminals and pipelines in the United States.
  • The 1997 NATO-Russia Founding Act precludes the alliance from permanently stationing additional substantial combat forces on the territory of its new Eastern and Central European members, but could now be repealed.
  • ”The United States is particularly at risk of being overwhelmed should its military be forced to fight on two or more fronts simultaneously,” said a Congressionally mandated study of the Pentagon’s strategy that was issued in 2018
  • the Alphen Group by former officials and other experts urges that European members of the alliance and Canada provide for 50% of NATO’s minimum military requirements by 2030 so the U.S. can focus more on deterring China.
  • “Everybody’s unified right now and outraged about what the Russians are doing,” said Alexander Vershbow, a former U.S. ambassador to NATO who also served as the alliance’s deputy secretary-general from 2012 to 2016. “But when we get down to making longer-term commitments to strengthen NATO’s defense posture and potentially revisit nuclear issues, it could become very divisive.”
Javier E

China under pressure, a debate | Financial Times - 0 views

  • Despite the $300bn mega-bankruptcy of Evergrande, the risk of an immediate 2008-style crisis in China is slight.
  • let us linger over the significance of this point. What China is doing is, after all, staggering. By means of its “three red lines” credit policy, it is stopping in its tracks a gigantic real estate boom. China’s real estate sector, created from scratch since the reforms of 1998, is currently valued at $55tn. That is the most rapid accumulation of wealth in history. It is the financial reflection of the surge in China’s urban population by more than 480mn in a matter of decades.
  • Throughout the history of modern capitalism real estate booms have been associated with credit creation and, as the work of Òscar Jordà, Moritz Schularick and Alan M. Taylor has shown, with major financial crises.
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  • if we are agreed that Beijing looks set to stop the largest property boom in history without unleashing a systemic financial crisis, it is doing something truly remarkable. It is setting a new standard in economic policy.
  • Is this perhaps what policy looks like if it actually takes financial stability seriously? And if we look in the mirror, why aren’t we applauding more loudly?
  • Add to real estate the other domestic factor roiling the Chinese financial markets: Beijing’s remarkable humbling of China’s platform businesses, the second-largest cluster of big tech in the world. That too is without equivalent anywhere else.
  • Beijing’s aim is to ensure that gambling on big tech no longer produces monopolistic rents. Again, as a long-term policy aim, can one really disagree with that?
  • we have two dramatic and deliberate policy-induced shocks of the type for which there is no precedent in the West. Both inflict short-term pain with a view to longer-term social, economic and financial stability.
  • Ultimately political economy determines the conditions for long-run growth. So if you had to bet on a regime, which might actually have what it takes to break a political economy impasse, to humble vested interests and make a “big play” on structural change, which would it be? The United States, the EU or Xi’s China?
  • Beijing’s challenge right now is to manage the fall out from the two most dramatic development policies the world has ever seen, the one-child policy and China’s urbanisation, plus the historic challenge of big tech — less a problem specific to China than the local manifestation of what Shoshana Zuboff calls “surveillance capitalism”.
  • no, Xi’s regime has not yet presented a fully convincing substitute plan. But, as Michael Pettis has forcefully argued, China has options. There is an entire range of policies that Beijing could put in place to substitute for the debt-fuelled infrastructure and housing boom.
  • First and foremost China needs a welfare state befitting of its economic development.
  • China needs to spend heavily on renewable energy and power distribution to break its dependence on coal. If it needs more housing, it should be affordable. All of this would generate more balanced growth. 5 per cent? Perhaps not, but certainly healthier and more sustainable.
  • If it has not so far pursued an alternative growth model in a more determined fashion, some of the blame no doubt falls on the prejudices of the Beijing policy elite. But even more significant are surely the entrenched interests of the infrastructure-construction-local government-credit machine, in other words the kind of political economy factors that generally inhibit the implementation of good policy.
  • The problem is only too familiar in the West. In Europe and the US too, such interest group combinations hobble the search for new growth models. In the United States they put in doubt the possibility of the energy transition, the possibility of providing a healthcare system that is fit for purpose and any initiative on trade policy that involves widening market access.
  • demography is normally treated as a natural parameter for economic activity. But in China’s case the astonishing fact is that the sudden ageing of its workforce is also a policy-induced challenge. It is a legacy of the one-child policy — the most gigantic and coercive intervention in human reproduction ever undertaken.
  • On balance, if you want to be part of history-making economic transformation, China is still the place to be. But it is undeniably shifting gear. And thanks to developments both inside and outside the country, investors will have to reckon with a much more complex picture of opportunity and risk. You are going to need to pick smart and follow the politics and geopolitics closely.
  • If on the other hand you want to invest in the green energy transition — the one big vision of economic development that the world has come up with right now — you simply have to have exposure to China, whether directly or indirectly by way of suppliers to China’s green energy sector. China is where the grand battle over the future of the climate is going to be fought. It will be a huge driver of innovation, capital accumulation and profit, the influence of which will be felt around the world.
  • it is one key area that both the Biden administration and the EU would like to “silo off” from other areas of conflict with China.
  • I worry that we may be too focused on the medium-term. Given the news out of Hong Kong and mainland China, Covid may yet come back to bite us.
  • Here too China is boxed in by its own success. It has successfully pursued a no-Covid policy, but due to the failing of the rest of the world, it has been left to do so in “one country”.
  • Until China finds some way to contain the risks, this is a story to watch. A dramatic Omicron surge across China would upend the entire narrative of the last two years, which is framed by Beijing success in containing the first wave.
Javier E

Why Conservative Parts of the U.S. Are So Angry - YES! Magazine - 0 views

  • Racially and politically, Antlers is typical of much of rural Oklahoma, a state forged from the 19th century territory set aside for Native American tribes forcibly removed from other parts of the United States. Antlers is now 75% White and 22% Native American or mixed race, but with very few Latino, Asian, or Black residents. In 2020, Antlers and its county, Pushmataha—which supported former President Bill Clinton in 1996 and even Jimmy Carter over Ronald Reagan in 1980—voted for Republicans, 85% to the Democrats’ 14%, up from an 80% share for Republicans in 2016, 54% in 2000, and 34% in 1996.
  • Antlers’ social statistics are beyond alarming. Nearly one-third of its residents live in poverty. The median household income, $25,223, is less than half Oklahoma’s $55,557, which in turn is well below the national median of $74,099 in January 2022.
  • The best-off ethnic group in Antlers is Native Americans (median household income, $35,700; 48% with education beyond high school; 25% living in poverty)
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  • That’s still well below the national median, but the conditions of the White population are dismal: a median household income of $24,800, only 41% with any post-high school education, and 30% living in poverty.
  • In a growing nationwide trend, the median household incomes of people of color, according to the U.S. Census Bureau, now exceed those of White people in nearly 200 of the 1,500 Republican-trifecta counties—those in which the party controls the governor’s office and both legislative chambers of state government (see Figure 1)
  • In the most telling statistics, White people in Antlers are nearly twice as likely to die by guns as Native Americans (see Figure 2). Compared with Whites nationally, Antlers Whites suffer excessive death rates from drugs and alcohol (1.3 times the national average), suicide (1.5 times), all violent deaths (1.8 times), homicide (2.5 times), and gunfire (2.6 times).
  • When I was growing up in Antlers 60 years ago and visited it 20 years ago, my family’s old block consisted of well-kept middle-class homes fronting yards for chickens and horses. On my latest visit in January 2022, I found the houses all boarded up or blowing open in the wind (see photo at top). There are hundreds of abandoned dwellings with collapsing roofs and walls and junk-filled empty lots alongside barely intact, yet still occupied, houses.
  • Antlers is not all devastation, however. It sports a gleaming Choctaw-built travel center financed by casino revenues, which are also invested in local Native Americans’ well-being.
  • Across America, the partisan gap in gross domestic product per capita is also huge and growing: $77,900 in Democratic-voting areas, compared with $46,600 in Republican-voting areas
  • 444 Republican counties have a GDP per capita of under $30,000, and 10 times as many people live in those counties than in the seven similarly low-GDP Democratic counties.
  • Whites in about 40% of all Republican counties lost income over the past two decades. And Trump’s administration was no help to his base. During his presidency, the overall Democrat–Republican GDP per capita gap widened by another $1,800.
  • For the largest urbanized states, the three with Democratic control of all branches of government (California, New York, and Illinois) had GDPs per capita vastly higher than the three biggest Republican-controlled states (Texas, Florida, and Ohio).
  • The right-wing canard that hardworking White people subsidize welfare-grubbing cities is backward. Democrat-voting counties, with 60% of America’s population, generate 67% of the nation’s personal income, 70% of the nation’s GDP, 71% of federal taxes, 73% of charitable contributions, and 75% of state and local taxes.
  • Mirroring Antlers, White Republican America also suffers violent death rates, including from suicide, homicide, firearms, and drunken driving crashes, far higher than Whites in Democratic America and higher than non-White people everywhere.
  • To top it off, Republican-governed Americans are substantially more likely to die from COVID-19.
  • As the death gap between Republican and Democratic areas widens over time, the life expectancy for Whites in Republican-voting areas (77.6 years) is now three years shorter than that of Whites in Democratic areas (80.6 years), shorter than those of Asians and Latino people everywhere, and only a few months longer than Black and Native Americans in Democratic areas.
  • That White people are falling behind across key economic, health, and safety indexes is not due to victimization by immigrants and liberal conspiracies, however, but to victimization by other Whites and self-inflicted alcoholism, drug overdose, and suicide.
  • Aside from the problem that Republican members of congress (and two recalcitrant Democrats) have sabotaged beneficial initiatives, former President Barack Obama already tried that. From 2010 to 2016, the Obama administration’s economic recovery measures fostered millions of new jobs and thousands of dollars in real median income growth for Whites in urban and most rural areas alike, reversing the recession under Republican George W. Bush’s presidency.
  • Is the solution to undividing America massive federal programs to improve Republican America’s struggling economies and troubled social conditions, then?
Javier E

House prices are crumbling - and so is Britain's faith in property ownership | John Harris | The Guardian - 0 views

  • one of the most absurd features of modern Britain is that “we’re not building houses in a housing crisis”
  • The average British home now costs about nine times average earnings: one estimate I recently read reckoned that the last time UK houses were this expensive was in 1876.
  • Across England, between 2021 and 2022, 21,600 social homes were either sold or demolished, but only 7,500 were built.
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  • There is, needless to say, no escape route into social housing. There are reckoned to be about 1.2m households on local waiting lists in England
  • thanks to post-2010 austerity, 40 local authority areas – including Peterborough, Luton, the Isle of Wight and parts of Greater Manchester – had neither built nor acquired any new social housing between 2016 and 2021
  • : it was just a mundane and reassuring reality, and the foundation of millions of lives.
  • The private rented sector is what it has always been, only more so: a repository for people held back from either home ownership or social housing, where lives are often damaged by the rawest kind of business practices.
  • 56% of first-time buyers aged under 35 needed a “financial gift” from their parents to buy a flat or house. Even if prices slowly fall, the old Tory vision of the property-owning democracy seems to have shrunk into a rigid oligarchy, built on very familiar foundations of class, age and wealth.
  • Recent(ish) history suggests there might be an alternative: council housing with lifelong, secure tenancies. Fifty or so years ago, thanks to investment by both Labour and Conservative governments, about a third of us lived in homes like that
  • even if access to the bank of Mum and Dad means you can just about afford to buy, isn’t the current reality of shoved-up interest rates and declining property prices a reminder of what that may well entail? Chasing security now means being at the mercy of its complete opposite: the hurly burly of financial markets, and fears of negative equity and repossession.
  • The foreground of Labour policy, however, is all about home ownership. Not unreasonably, Keir Starmer sees buying a house as “the bedrock of security and aspiration”, and often makes glowing references to the pebble-dashed semi in which he grew up
  • Given the chance, he will apparently lead a government set on pursuing a 70% target for home ownership, up from England’s current figure of 64%. Th
  • the party’s first actions in government will include “helping first-time buyers on to the housing ladder and building more affordable homes by reforming planning rules”. Labour, we are told, “is the party of home ownership in Britain today”.
  • There are signs that Labour has at least the beginnings of an answer. Lisa Nandy insists that she will be the first housing minister in decades to ensure that social housing provides for more people than the private rented sector; her mantra, she says, will be “council housing, council housing, council housing”
Javier E

World 'population bomb' may never go off as feared, finds study | Population | The Guardian - 0 views

  • The long-feared “population bomb” may not go off, according to the authors of a new report that estimates that human numbers will peak lower and sooner than previously forecast.
  • on current trends the world population will reach a high of 8.8 billion before the middle of the century, then decline rapidly. The peak could come earlier still if governments take progressive steps to raise average incomes and education levels.
  • The new forecasts are good news for the global environment. Once the demographic bulge is overcome, pressure on nature and the climate should start to ease, along with associated social and political tensions.
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  • The new projection, released on Monday, was carried out by the Earth4All collective of leading environmental science and economic institutions, including the Potsdam Institute for Climate Impact Research, Stockholm Resilience Centre and the BI Norwegian Business School. They were commissioned by the Club of Rome for a followup to its seminal Limits to Growth study more than 50 years ago.
  • “This gives us evidence to believe the population bomb won’t go off, but we still face significant challenges from an environmental perspective. We need a lot of effort to address the current development paradigm of overconsumption and overproduction, which are bigger problems than population.”
  • Previous studies have painted a grimmer picture. Last year, the UN estimated the world population would hit 9.7 billion by the middle of the century and continue to rise for several decades afterwards.
  • But the authors caution that falling birthrates alone will not solve the planet’s environmental problems, which are already serious at the 7.8 billion level and are primarily caused by the excess consumption of a wealthy minority.
  • The report is based on a new methodology which incorporates social and economic factors that have a proven impact on birthrate, such as raising education levels, particularly for women, and improving income.
  • In the business-as-usual case, it foresees existing policies being enough to limit global population growth to below 9 billion in 2046 and then decline to 7.3 billion in 2100.
  • too little too late: “Although the scenario does not result in an overt ecological or total climate collapse, the likelihood of regional societal collapses nevertheless rises throughout the decades to 2050, as a result of deepening social divisions both internal to and between societies. The risk is particularly acute in the most vulnerable, badly governed and ecologically vulnerable economies.”
  • In the second, more optimistic scenario – with governments across the world raising taxes on the wealthy to invest in education, social services and improved equality – it estimates human numbers could hit a high of 8.5 billion as early as 2040 and then fall by more than a third to about 6 billion in 2100. Under this pathway, they foresee considerable gains by mid-century for human society and the natural environment.
  • “By 2050, greenhouse gas emissions are about 90% lower than they were in 2020 and are still falling,” according to the report. “Remaining atmospheric emissions of greenhouse gases from industrial processes are increasingly removed through carbon capture and storage. As the century progresses, more carbon is captured than stored, keeping the global temperature below 2C above pre-industrial levels. Wildlife is gradually recovering and starting to thrive once again in many places.”
Javier E

Opinion | How China Keeps Putting Off Its 'Lehman Moment' - The New York Times - 0 views

  • In 2008, the U.S. Federal Reserve and Treasury Department also stepped in during the subprime lending crisis to coordinate the restructuring of troubled institutions. But creditor and investor rights and the political risks of bailing out banks limited what American regulators can do; arrangements were reached only after hard bargaining with banks and investment houses. In China, financial institutions have to do what the government tells them.
  • The government’s hand is everywhere. The most fundamental asset in China — land — is owned or controlled by the state. The value of China’s currency, the renminbi, is government-managed and regulators are widely believed to intervene in trading on the country’s stock markets.
  • Most of China’s biggest and most powerful companies, including all of its major banks, are state-owned, and executives are usually members of the Communist Party, which controls top-level corporate appointments.
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  • Even healthy and influential private companies can be ordered to undergo painful restructuring or curtail certain business operations
  • When nearly every renminbi borrowed is domestic — lent by a Chinese creditor to a Chinese borrower — it gives regulators a degree of control over debt problems that their Western counterparts can only dream of.
  • Even the makeup of China’s high debt levels has a silver lining for regulators. China’s aggregate ratio of debt to gross domestic product was almost 300 percent (or around $52 trillion) in September 2022, compared to 257 percent for the United States.
  • But less than 5 percent of China’s debt is external, amounting to $2.5 trillion, one-tenth of the U.S. level.
  • Ultimately, all of this serves the party’s absolute priority of maintaining social stability; there is zero tolerance for financial distress or major corporate failures that could trigger street demonstrations
  • instead of introducing reforms to establish a healthy market-based economy in which inefficient businesses are allowed to fail, China’s Evergrande-style fixes — while defusing short-term crises — reward irresponsible behavior and perpetuate the excessive borrowing and wasteful use of funding that leads to recurring financial distress.
  • Soft landings may become harder to achieve. China faces perhaps its greatest array of economic challenges since it began reopening to the outside world in the late 1970s: high debt, an ailing real estate sector, a long-term economic slowdown, rising unemployment, an aging and shrinking population and worsening trade and diplomatic relations with the United States.
  • There is a very real risk that China could suffer the same fate as Japan, which is still struggling to emerge from an extended period of economic stagnation that began in the 1990s. Japan’s troubles were caused, in part, by a burst real estate bubble and financial-sector problems similar to what China is now facing.
  • China’s regulatory troubleshooters have proven the financial doomsayers wrong again and again. But their biggest test may yet lie ahead.
Javier E

Generative AI Is Already Changing White Collar Work As We Know It - WSJ - 0 views

  • As ChatGPT and other generative artificial intelligence programs infiltrate workplaces, white-collar jobs are transforming the fastest.
  • The biggest workplace challenge so far this year across industries is how to adapt to the rapidly evolving role of AI in office work, they say.
  • according to a new study by researchers at the University of Pennsylvania and OpenAI, most jobs will be changed in some form by generative pretrained transformers, or GPTs, which use machine learning based on internet data to generate any kind of text, from creative writing to code. 
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  • “AI is the next revolution and there is no going back,”
  • “There is an enormous demand for people who are tech-savvy and who will be the first adopters, who will be the first to figure out what opportunities these technologies open up,”
  • “Every month there are hundreds more job postings mentioning generative AI,”
  • “The way things have been done in the past aren’t necessarily the way they need to be done today,” he said, adding that workers and employers should invest in retraining and upskilling where possible.
  • that transformation is already taking shape, and workers can find ways to use the ChatGPT and other new technology to free them from boring work.
  • The jobs of the future will require a mind-set shift for employees, several executives said. Rather than viewing generative AI and other machine-learning software as a threat, workers should embrace new technology as a way to free them from less-rewarding work and augment their strengths.
  • “This is a huge opportunity to advance a lot of professions—allow people to do work that’s, frankly, more stimulating.”
  • For the hotel chain, that could look like using AI to determine which brand of wine a guest likes, and adjusting recommendations accordingly.
  • United Airlines Holdings Inc., aims to use AI to do transactions that shouldn’t require a human, such as placing someone in an aisle or window seat depending on their preference, or suggesting a different flight for someone trying to book a tight connection, said Kate Gebo, executive vice president of human resources and labor relations. That leaves employees free to have more complex interactions with customers
  • services intended to help customers solve emotional problems require solutions a machine can’t provide.
  • “AI is not sentient. It can’t be emotional. And that is the kind of accountability and reciprocity that is needed…for people to have the outcomes that we’re hoping to provide,”
  • “Certain business processes could be enhanced,” said Carmen Orr, Yelp’s chief people officer, adding that there are plenty of concerns, too. “We don’t want it for high human-touch things.”
Javier E

Europe's Energy Risks Go Beyond Natural Gas - The New York Times - 0 views

  • To fill the gap, Europe had to go searching for new sources and found it primarily in liquefied natural gas from the United States, where production is expected to hit a record high this year. LNG is about 600 times more compact than its gaseous form and can be moved anywhere in the world through specialized ships and ports.
  • In 2017, wind surpassed hydroelectricity as the largest renewable source of power for the European Union.
  • A record year for solar and wind power saved the European Union €11 billion in gas costs this year, generating around a quarter of total electricity since the war began
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  • In May, the European Commission put out a plan for achieving energy independence from Russia that leaned further into the renewable energy transition. Known as REPowerEU, it encourages diversifying fossil fuel sources and accelerating the adoption of renewable energy sources like wind and solar, and also pushes for greater energy savings.
  • major challenges remain. Solar power, in particular, has supply chain risks of its own. China has a near-monopoly on the raw materials and technical expertise to produce photovoltaic cells for solar panels. An analysis from Bloomberg BNEF found it would take nearly $150 billion for Europe to build the plants to manufacture enough solar capacity and storage to meet demand by 2030.
  • Achieving energy security and meeting climate goals will take far greater investment and cooperation between European countries than ever before, according to energy experts.
  • “One of Europe’s founding fathers — Jean Monnet — used to say that Europe would be made out of crisis,” said Simone Tagliapietra, a senior fellow at Bruegel, an energy think tank. “Europe will come out of this energy crisis more united when it comes to energy and climate policy.”
Javier E

Welcome to the blah blah blah economy - 0 views

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unpredictable economy global

started by Javier E on 17 Dec 22 no follow-up yet
Javier E

The new tech worldview | The Economist - 0 views

  • Sam Altman is almost supine
  • the 37-year-old entrepreneur looks about as laid-back as someone with a galloping mind ever could. Yet the ceo of OpenAi, a startup reportedly valued at nearly $20bn whose mission is to make artificial intelligence a force for good, is not one for light conversation
  • Joe Lonsdale, 40, is nothing like Mr Altman. He’s sitting in the heart of Silicon Valley, dressed in linen with his hair slicked back. The tech investor and entrepreneur, who has helped create four unicorns plus Palantir, a data-analytics firm worth around $15bn that works with soldiers and spooks
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  • a “builder class”—a brains trust of youngish idealists, which includes Patrick Collison, co-founder of Stripe, a payments firm valued at $74bn, and other (mostly white and male) techies, who are posing questions that go far beyond the usual interests of Silicon Valley’s titans. They include the future of man and machine, the constraints on economic growth, and the nature of government.
  • They share other similarities. Business provided them with their clout, but doesn’t seem to satisfy their ambition
  • The number of techno-billionaires in America (Mr Collison included) has more than doubled in a decade.
  • ome of them, like the Medicis in medieval Florence, are keen to use their money to bankroll the intellectual ferment
  • The other is Paul Graham, co-founder of Y Combinator, a startup accelerator, whose essays on everything from cities to politics are considered required reading on tech campuses.
  • Mr Altman puts it more optimistically: “The iPhone and cloud computing enabled a Cambrian explosion of new technology. Some things went right and some went wrong. But one thing that went weirdly right is a lot of people got rich and said ‘OK, now what?’”
  • A belief that with money and brains they can reboot social progress is the essence of this new mindset, making it resolutely upbeat
  • The question is: are the rest of them further evidence of the tech industry’s hubristic decadence? Or do they reflect the start of a welcome capacity for renewal?
  • Two well-known entrepreneurs from that era provided the intellectual seed capital for some of today’s techno nerds.
  • Mr Thiel, a would-be libertarian philosopher and investor
  • This cohort of eggheads starts from common ground: frustration with what they see as sluggish progress in the world around them.
  • In the 2000s Mr Thiel supported the emergence of a small community of online bloggers, self-named the “rationalists”, who were focused on removing cognitive biases from thinking (Mr Thiel has since distanced himself). That intellectual heritage dates even further back, to “cypherpunks”, who noodled about cryptography, as well as “extropians”, who believed in improving the human condition through life extensions
  • the rationalist movement has hit the mainstream. The result is a fascination with big ideas that its advocates believe goes beyond simply rose-tinted tech utopianism
  • A burgeoning example of this is “progress studies”, a movement that Mr Collison and Tyler Cowen, an economist and seer of the tech set, advocated for in an article in the Atlantic in 2019
  • Progress, they think, is a combination of economic, technological and cultural advancement—and deserves its own field of study
  • There are other examples of this expansive worldview. In an essay in 2021 Mr Altman set out a vision that he called “Moore’s Law for Everything”, based on similar logic to the semiconductor revolution. In it, he predicted that smart machines, building ever smarter replacements, would in the coming decades outcompete humans for work. This would create phenomenal wealth for some, obliterate wages for others, and require a vast overhaul of taxation and redistribution
  • His two bets, on OpenAI and nuclear fusion, have become fashionable of late—the former’s chatbot, ChatGPT, is all the rage. He has invested $375m in Helion, a company that aims to build a fusion reactor.
  • Mr Lonsdale, who shares a libertarian streak with Mr Thiel, has focused attention on trying to fix the shortcomings of society and government. In an essay this year called “In Defence of Us”, he argues against “historical nihilism”, or an excessive focus on the failures of the West.
  • With a soft spot for Roman philosophy, he has created the Cicero Institute in Austin that aims to inject free-market principles such as competition and transparency into public policy.
  • He is also bringing the startup culture to academia, backing a new place of learning called the University of Austin, which emphasises free speech.
  • All three have business ties to their mentors. As a teen, Mr Altman was part of the first cohort of founders in Mr Graham’s Y Combinator, which went on to back successes such as Airbnb and Dropbox. In 2014 he replaced him as its president, and for a while counted Mr Thiel as a partner (Mr Altman keeps an original manuscript of Mr Thiel’s book “Zero to One” in his library). Mr Thiel was also an early backer of Stripe, founded by Mr Collison and his brother, John. Mr Graham saw promise in Patrick Collison while the latter was still at school. He was soon invited to join Y Combinator. Mr Graham remains a fan: “If you dropped Patrick on a desert island, he would figure out how to reproduce the Industrial Revolution,”
  • While at university, Mr Lonsdale edited the Stanford Review, a contrarian publication co-founded by Mr Thiel. He went on to work for his mentor and the two men eventually helped found Palantir. He still calls Mr Thiel “a genius”—though he claims these days to be less “cynical” than his guru.
  • “The tech industry has always told these grand stories about itself,” says Adrian Daub of Stanford University and author of the book, “What Tech Calls Thinking”. Mr Daub sees it as a way of convincing recruits and investors to bet on their risky projects. “It’s incredibly convenient for their business models.”
  • Yet the impact could ultimately be positive. Frustrations with a sluggish society have encouraged them to put their money and brains to work on problems from science funding and the redistribution of wealth to entirely new universities. Their exaltation of science may encourage a greater focus on hard tech
  • Silicon Valley has shown an uncanny ability to reinvent itself in the past.
Javier E

Elon Musk's Text Messages Explain Everything - The Atlantic - 0 views

  • I’ve begun to think of Exhibit H as a skeleton key for the final, halcyon days of the tech boom—unlocking an understanding of the cultural brain worms and low-interest-rate hubris that defined the industry in 2022. What we see in Exhibit H is only a tiny snapshot of a very important inbox, but it’s enough to make this one of the most revealing documents in a year that’s been absolutely overflowing with tech disclosures
  • the Musk texts demonstrate a decadence, an unearned confidence, and a boy’s-club mentality that coincide with the cultural disillusionment regarding the genius-innovator narrative.
  • I snarkily coined the Elon Musk School of Management to describe the petulant way that some tech founders, such as Musk and Coinbase’s Brian Armstrong, seemed to use confrontational, culture-warring, Twitter-addled thought leadership as a business tactic. The Musk School revolves around two principles: running a company in an authoritarian manner, and ensuring that every management decision is optimized to make news and hijack the attention of those following along on social media
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  • The Musk messages also reveal how some of the richest and most powerful men in the world treat actual billions of dollars with a level of care more appropriate for a 3-year-old tossing around Monopoly cash.
  • Oracle’s founder, Larry Ellison, essentially writes Musk a blank check over text, pledging, “A billion … or whatever you recommend.” The venture capitalist Marc Andreessen unsolicitedly offers Musk “$250M with no additional work required.” And Michael Grimes, a top investment banker at Morgan Stanley, proposes a meeting with Bankman-Fried as a way to “get us $5bn equity in an hour.”
  • The blitheness is the point. It is a total power move to talk about getting “$5bn in equity in an hour” the same way we mere mortals talk about Venmo-ing a friend $15 for lunch. The texts make it clear that these men are fundamentally alienated from the rest of the world by their wealth.
  • “These are absolutely not normal people with a normal understanding of the world.”
  • The men in Musk’s phone also appear wildly confident in their own abilities and those of their peers. Mathias Döpfner, the CEO of the media conglomerate Axel Springer, infamously texted Musk his bullet-pointed plan for Twitter, which began with the line item “1.),, Solve Free Speech.”
  • They teach us what happens when a small group of people with too much money come to view that money not just as a reward for success, but as its own form of merit—a specious achievement that totally alienates them from reality.
  • Ultimately, Exhibit H documents the loneliness and isolation of being the world’s richest man. As told via the texts, the seed of Musk’s Twitter purchase was planted by sycophants deferential to the billionaire who will never give him hard, truthful advice, because they wish to stay close to him.
  • the one time he receives actual, honest feedback from Agrawal, Musk behaves aggressively and impulsively, sealing his fate.
Javier E

The End of the Silicon Valley Myth - The Atlantic - 0 views

  • These companies, launched with promises to connect the world, to think different, to make information free to all, to democratize technology, have spent much of the past decade making the sorts of moves that large corporations trying to grow ever larger have historically made—embracing profit over safety, market expansion over product integrity, and rent seeking over innovation—but at much greater scale, speed, and impact. Now, ruled by monopolies, marred by toxicity, and overly reliant on precarious labor, Silicon Valley looks like it’s finally run hard up into its limits.
  • They’re failing utterly to create the futures they’ve long advertised, or even to maintain the versions they were able to muster. Having scaled to immense size, they’re unable or unwilling to manage the digital communities they’ve built
  • They’re paralyzed when it comes to product development and reduced to monopolistic practices such as charging rents and copying or buying up smaller competitors
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  • Their policies tend to please no one; it’s a common refrain that antipathy toward Big Tech companies is one of the few truly bipartisan issues
  • You can just feel it, the cumulative weight of this stagnation, in the tech that most of us encounter every day. The act of scrolling past the same dumb ad to peer at the same bad news on the same glass screen on the same social network: This is the stuck future. There is a sense that we have reached the end of the internet, and no one wants to be left holding the bag
  • There’s a palpable exhaustion with the whole enterprise, with the men who set out to build the future or at least get rich, and who accomplished only one and a half of those things.
  • YouTube, meanwhile, is facing many of the same policy quagmires as Facebook and Twitter, especially when it comes to content moderation—and similarly failing to meaningfully address them.
  • It’s not just social media that’s in decline, already over, or worse.
  • As its mighty iPhone sales figures have plateaued and its business has grown more conservative—it hasn’t released a culturally significant new product line since 2016’s AirPods—Apple has begun to embrace advertising.
  • as Google has consolidated its monopoly, the quality of its flagship search product has gotten worse. Result pages are cluttered with ads that must be scrolled through in order to find the “‘organic”’ items, and there’s reason to think the quality of the results has gotten worse over time as well.
  • The big social networks are stuck. And there is little profit incentive to get them unstuck. That, after all, would require investing heavily in content moderators, empowering trust and safety teams, and penalizing malicious viral content that brings in huge traffic.
  • What a grim outcome for the internet, where the possibilities were once believed to be endless and where users were promised an infinite spectrum of possibility to indulge their creativity, build robust communities, and find their best expression, even when they could not do so in the real world
  • Big Tech, of course, never predicated its business models on enabling any of that, though its advertising and sloganeering may have suggested otherwise. Rather, companies’ ambitions were always focused on being the biggest: having the most users, selling the most devices, locking the most people into their walled gardens and ecosystems. The stuckness we’re seeing is the result of some of the most ambitious companies of our generation succeeding wildly yet having no vision beyond scale—no serious interest in engaging the civic and social dimensions of their projects.
Javier E

Who is Andrew Tate, the misogynist hero to millions of young men? | The Economist - 0 views

  • what sets Mr Tate apart from other alt-right social-media personalities and previous anti-feminist online movements is the extent to which his views have found a ready audience among teenage boys.
  • In 2021 Mr Tate established Hustlers University, an online platform where young men could take courses in business and investing for $49.99 a month. It also gave students financial rewards for promoting Mr Tate’s misogynist ideas via a now-suspended affiliate marketing programme. Thanks to a continuing stream of fan-generated content, his views have proliferated on social media even though most platforms have banned his accounts.
  • Part of the reason why Mr Tate has found success specifically on TikTok is that its algorithm is uniquely predictive, appearing not only to rely on the content users watch and recommend, but making assumptions about their potential interests
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  • That has made him the most popular influencer among American Gen-Zers, according to a twice-yearly survey of 14,500 of the country’s teenage boys and girls by Piper Sandler, a finance company that researches consumer data. Teachers have reported boys as young as 11 praising and emulating him.
Javier E

Opinion | Biden's course correction on China is smart and important - The Washington Post - 0 views

  • French President Emmanuel Macron might have been too blunt about his worries about Europe becoming a “vassal” of the United States, but his views are in fact widely shared in Europe and beyond. The war in Ukraine has hurt Europe by raising its energy costs while benefiting the United States, which is the world’s top producer of hydrocarbons and sells many at low cost. European companies are shifting investment to the United States, lured in part by the Inflation Reduction Act’s generous subsidies. A German CEO said to me recently, “You cannot expect us to forgo cheap Russian energy as well as the Chinese market. That would be suicide for Europe.”
  • More broadly, if geopolitical tensions win out and economic ties continue to weaken, we will move into a very different world, marked by much greater chaos and disorder at every level. One sign of this can be seen in the impasse over debt restructuring. Dozens of the world’s most vulnerable economies are in or at high risk of debt distress. (Lebanon, for example, has been in default for three years.) Yet the International Monetary Fund cannot bail out these countries because China (which is one of the world’s largest creditors) cannot come to an agreement with Western nations on the terms of relief. The two sides blame each other and hundreds of millions of people suffer.
  • The last time two major world powers tried to manage a relationship of economic interdependence and rising geopolitical rivalry was Britain and Germany in the period from the 1880s to 1914. That experiment ended very badly, with a war that destroyed much of the industrialized world. Both sides should try to ensure we do better this time
Javier E

To Live Past 100, Mangia a Lot Less: Italian Expert's Ideas on Aging - The New York Times - 0 views

  • Valter Longo, a nutrition-obsessed Italian Ph.D. student, wrestled with a lifelong addiction to longevity.
  • “For studying aging, Italy is just incredible,
  • Italy has one of the world’s oldest populations, including multiple pockets of centenarians who tantalize researchers searching for the fountain of youth. “It’s nirvana.”
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  • Dr. Longo, who is also a professor of gerontology and director of the U.S.C. Longevity Institute in California, has long advocated longer and better living through eating Lite Italian, one of a global explosion of Road to Perpetual Wellville theories about how to stay young in a field that is itself still in its adolescence.
  • In addition to identifying genes that regulate aging, he has created a plant and nut-based diet with supplements and kale crackers that mimics fasting to, he argues, allow cells to shed harmful baggage and rejuvenate, without the down side of actually starving.
  • He has patented and sold his ProLon diet kits; published best-selling books (“The Longevity Diet”); and been called an influential “Fasting Evangelist” by Time magazine.
  • Last month, he published a new study based on clinical trials of hundreds of older people — including in the Calabria town from which his family hails — that he said suggests that periodic cycles of his own faux-fasting approach could reduce biological age and stave off illnesses associated with aging.
  • “It’s very similar to the original Mediterranean diet, not the present one,” she said, pointing at photographs on the wall of a bowl of ancient legumes similar to the chickpe
  • “Almost nobody in Italy eats the Mediterranean diet,”
  • He added that many Italian children, especially in the country’s south, are obese, bloated on what he calls the poisonous five Ps — pizza, pasta, protein, potatoes and pane (or bread).
  • in recent years, Silicon Valley billionaires who hope to be forever young have funded secretive labs. Wellness articles have conquered newspaper home pages and Fountains-of-Youth workout and diet ads featuring insanely fit middle-aged people teem on the social media feeds of not insanely fit middle-aged people.
  • he said Italy’s lack of investment in research was a disgrace.
  • even as concepts like longevity, intermittent fasting and biological age — you’re only as old as your cells feel! — have gained momentum, governments like Italy’s are fretting over a creakier future in which booming populations of old people drain resources from the dwindling young.
  • many scientists, nutritionists and longevity fanatics the world over continue to stare longingly toward Italy, seeking in its deep pockets of centenarians a secret ingredient to long life.
  • “Probably they kept breeding between cousins and relatives,” Dr. Longo offered, referring to the sometimes close relations in little Italian hill towns. “At some point, we suspect it sort of generated the super-longevity genome.”
  • The genetic drawbacks of incest, he hypothesized, slowly vanished because those mutations either killed their carriers before they could reproduce or because the town noticed a monstrous ailment — like early onset Alzheimer’s — in a particular family line and steered clear.
  • Dr. Longo wonders whether Italy’s centenarians had been protected from later disease by a starvation period and old-fashioned Mediterranean diet early in life, during rural Italy’s abject war-era poverty. Then a boost of proteins and fats and modern medicine after Italy’s postwar economic miracle protected them from frailty as they got older and kept them alive.
  • At age 16, he moved to Chicago to live with relatives and couldn’t help notice that his middle-aged aunts and uncles fed on the “Chicago diet” of sausages and sugary drinks suffered diabetes and cardiovascular disease that their relatives back in Calabria did not.
  • He eventually earned his Ph.D in biochemistry at U.C.L.A. and did his postdoctoral training in the neurobiology of aging at U.S.C. He overcame early skepticism about the field to publish in top journals and became a zealous evangelizer for the age-reversing effects of his diet. About 10 years ago, eager to be closer to his aging parents in Genoa, he took a second job at the IFOM oncology institute in Milan.
  • He found a fount of inspiration in the pescatarian-heavy diet around Genoa and all the legumes down in Calabria.
  • he also found the modern Italian diet — the cured meats, layers of lasagna and fried vegetables the world hungered for — horrendous and a source of disease.
  • His private foundation, also based in Milan, tailors diets for cancer patients, but also consults for Italian companies and schools, promoting a Mediterranean diet that is actually foreign to most Italians today.
  • “Italy’s got such incredible history and a wealth of information about aging,” he said. “But spends virtually nothing.”
  • He talked about how he and others had identified an important regulator of aging in yeast, and how he has investigated whether the same pathway was at work in all organisms.
  • Dr. Longo said he thinks of his mission as extending youth and health, not simply putting more years on the clock, a goal he said could lead to a “scary world,” in which only the rich could afford to live for centuries, potentially forcing caps on having children
  • A more likely short-term scenario, he said, was division between two populations. The first would live as we do now and reach about 80 or longer through medical advancements. But Italians would be saddled with long — and, given the drop in the birthrate, potentially lonely — years burdened by horrible diseases.
  • The other population would follow fasting diets and scientific breakthroughs and live to 100 and perhaps 110 in relative good health.
Javier E

Opinion | Claudine Gay and the Limits of Social Engineering at Harvard - The New York Times - 0 views

  • the important question for Harvard was never whether Gay should step down. It was why she was brought on in the first place, after one of the shortest presidential searches in Harvard’s recent history.
  • How did someone with a scholarly record as thin as hers — she has not written a single book, has published only 11 journal articles in the past 26 years and made no seminal contributions to her field — reach the pinnacle of American academia?
  • The answer, I think, is this: Where there used to be a pinnacle, there’s now a crater. It was created when the social-justice model of higher education, currently centered on diversity, equity and inclusion efforts — and heavily invested in the administrative side of the university — blew up the excellence model, centered on the ideal of intellectual merit and chiefly concerned with knowledge, discovery and the free and vigorous contest of ideas.
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  • I’ve seen arguments that it goes back to the 1978 Bakke decision, when the Supreme Court effectively greenlit affirmative action in the name of diversity.
  • the problem with Bakke isn’t that it allowed diversity to be a consideration in admissions decisions. It’s that university administrators turned an allowance into a requirement, so a kind of racial gerrymander now permeates nearly every aspect of academic life, from admissions decisions to faculty appointments to the racial makeup of contributors to essay collections
  • If affirmative action had been administered with a lighter hand — more nudge than mandate — it might have survived the court’s scrutiny last year. Instead, it became a pervasive regime that frequently got in the way of the universities’ higher goals, particularly the open exchange of ideas.
  • skin color was the first thing The Harvard Crimson noted in its story about her taking office, and her missteps and questions about her academic work gave ammunition to detractors who claimed she owed her position solely to her race.
  • This is the poisoned pool in which Harvard now swims. Whenever it elevates someone like Gay, there’s an assumption by admirers and detractors alike that she’s a political symbol whose performance represents more than who she is as a person
  • dehumanization is the price any institution pays when considerations of social engineering supplant those of individual achievement.
  • It may take a generation after the end of affirmative action before someone like Gay can have the opportunity to be judged on her own merits, irrespective of her color.
  • the damage that the social-justice model has done to higher education will take longer to repair. In 2015, 57 percent of Americans expressed high confidence in higher education, according to a Gallup survey. Last year, the number had fallen to 36 percent, and that was before the wave of antisemitic campus outbursts. At Harvard, early admission applications fell by 17 percent last fall.
  • Harvard also sets the tone for the rest of American higher ed — and for public attitudes toward it. One of the secrets of America’s postwar success wasn’t simply the caliber of U.S. universities. It was the respect they engendered among ordinary people who aspired to send their children to them.
  • That respect is now being eroded to the point of being erased. For good reason
  • People admire, and will strive for, excellence — both for its own sake and for the status it confers. But status without excellence is a rapidly wasting asset, especially when it comes with an exorbitant price. That’s the position of much of American academia today. Two hundred thousand dollars or more is a lot to pay for lessons in how to be an anti-racist.
  • the intellectual rot is pervasive and won’t stop spreading until universities return to the idea that their central purpose is to identify and nurture and liberate the best minds, not to engineer social utopias.
Javier E

'The machine did it coldly': Israel used AI to identify 37,000 Hamas targets | Israel-Gaza war | The Guardian - 0 views

  • All six said that Lavender had played a central role in the war, processing masses of data to rapidly identify potential “junior” operatives to target. Four of the sources said that, at one stage early in the war, Lavender listed as many as 37,000 Palestinian men who had been linked by the AI system to Hamas or PIJ.
  • The health ministry in the Hamas-run territory says 32,000 Palestinians have been killed in the conflict in the past six months. UN data shows that in the first month of the war alone, 1,340 families suffered multiple losses, with 312 families losing more than 10 members.
  • Several of the sources described how, for certain categories of targets, the IDF applied pre-authorised allowances for the estimated number of civilians who could be killed before a strike was authorised.
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  • Two sources said that during the early weeks of the war they were permitted to kill 15 or 20 civilians during airstrikes on low-ranking militants. Attacks on such targets were typically carried out using unguided munitions known as “dumb bombs”, the sources said, destroying entire homes and killing all their occupants.
  • “You don’t want to waste expensive bombs on unimportant people – it’s very expensive for the country and there’s a shortage [of those bombs],” one intelligence officer said. Another said the principal question they were faced with was whether the “collateral damage” to civilians allowed for an attack.
  • “Because we usually carried out the attacks with dumb bombs, and that meant literally dropping the whole house on its occupants. But even if an attack is averted, you don’t care – you immediately move on to the next target. Because of the system, the targets never end. You have another 36,000 waiting.”
  • ccording to conflict experts, if Israel has been using dumb bombs to flatten the homes of thousands of Palestinians who were linked, with the assistance of AI, to militant groups in Gaza, that could help explain the shockingly high death toll in the war.
  • Details about the specific kinds of data used to train Lavender’s algorithm, or how the programme reached its conclusions, are not included in the accounts published by +972 or Local Call. However, the sources said that during the first few weeks of the war, Unit 8200 refined Lavender’s algorithm and tweaked its search parameters.
  • Responding to the publication of the testimonies in +972 and Local Call, the IDF said in a statement that its operations were carried out in accordance with the rules of proportionality under international law. It said dumb bombs are “standard weaponry” that are used by IDF pilots in a manner that ensures “a high level of precision”.
  • “The IDF does not use an artificial intelligence system that identifies terrorist operatives or tries to predict whether a person is a terrorist,” it added. “Information systems are merely tools for analysts in the target identification process.”
  • In earlier military operations conducted by the IDF, producing human targets was often a more labour-intensive process. Multiple sources who described target development in previous wars to the Guardian, said the decision to “incriminate” an individual, or identify them as a legitimate target, would be discussed and then signed off by a legal adviser.
  • n the weeks and months after 7 October, this model for approving strikes on human targets was dramatically accelerated, according to the sources. As the IDF’s bombardment of Gaza intensified, they said, commanders demanded a continuous pipeline of targets.
  • “We were constantly being pressured: ‘Bring us more targets.’ They really shouted at us,” said one intelligence officer. “We were told: now we have to fuck up Hamas, no matter what the cost. Whatever you can, you bomb.”
  • Lavender was developed by the Israel Defense Forces’ elite intelligence division, Unit 8200, which is comparable to the US’s National Security Agency or GCHQ in the UK.
  • After randomly sampling and cross-checking its predictions, the unit concluded Lavender had achieved a 90% accuracy rate, the sources said, leading the IDF to approve its sweeping use as a target recommendation tool.
  • Lavender created a database of tens of thousands of individuals who were marked as predominantly low-ranking members of Hamas’s military wing, they added. This was used alongside another AI-based decision support system, called the Gospel, which recommended buildings and structures as targets rather than individuals.
  • The accounts include first-hand testimony of how intelligence officers worked with Lavender and how the reach of its dragnet could be adjusted. “At its peak, the system managed to generate 37,000 people as potential human targets,” one of the sources said. “But the numbers changed all the time, because it depends on where you set the bar of what a Hamas operative is.”
  • broadly, and then the machine started bringing us all kinds of civil defence personnel, police officers, on whom it would be a shame to waste bombs. They help the Hamas government, but they don’t really endanger soldiers.”
  • Before the war, US and Israeli estimated membership of Hamas’s military wing at approximately 25-30,000 people.
  • there was a decision to treat Palestinian men linked to Hamas’s military wing as potential targets, regardless of their rank or importance.
  • According to +972 and Local Call, the IDF judged it permissible to kill more than 100 civilians in attacks on a top-ranking Hamas officials. “We had a calculation for how many [civilians could be killed] for the brigade commander, how many [civilians] for a battalion commander, and so on,” one source said.
  • Another source, who justified the use of Lavender to help identify low-ranking targets, said that “when it comes to a junior militant, you don’t want to invest manpower and time in it”. They said that in wartime there was insufficient time to carefully “incriminate every target”
  • So you’re willing to take the margin of error of using artificial intelligence, risking collateral damage and civilians dying, and risking attacking by mistake, and to live with it,” they added.
  • When it came to targeting low-ranking Hamas and PIJ suspects, they said, the preference was to attack when they were believed to be at home. “We were not interested in killing [Hamas] operatives only when they were in a military building or engaged in a military activity,” one said. “It’s much easier to bomb a family’s home. The system is built to look for them in these situations.”
  • Such a strategy risked higher numbers of civilian casualties, and the sources said the IDF imposed pre-authorised limits on the number of civilians it deemed acceptable to kill in a strike aimed at a single Hamas militant. The ratio was said to have changed over time, and varied according to the seniority of the target.
  • The IDF’s targeting processes in the most intensive phase of the bombardment were also relaxed, they said. “There was a completely permissive policy regarding the casualties of [bombing] operations,” one source said. “A policy so permissive that in my opinion it had an element of revenge.”
  • “There were regulations, but they were just very lenient,” another added. “We’ve killed people with collateral damage in the high double digits, if not low triple digits. These are things that haven’t happened before.” There appears to have been significant fluctuations in the figure that military commanders would tolerate at different stages of the war
  • One source said that the limit on permitted civilian casualties “went up and down” over time, and at one point was as low as five. During the first week of the conflict, the source said, permission was given to kill 15 non-combatants to take out junior militants in Gaza
  • at one stage earlier in the war they were authorised to kill up to “20 uninvolved civilians” for a single operative, regardless of their rank, military importance, or age.
  • “It’s not just that you can kill any person who is a Hamas soldier, which is clearly permitted and legitimate in terms of international law,” they said. “But they directly tell you: ‘You are allowed to kill them along with many civilians.’ … In practice, the proportionality criterion did not exist.”
  • Experts in international humanitarian law who spoke to the Guardian expressed alarm at accounts of the IDF accepting and pre-authorising collateral damage ratios as high as 20 civilians, particularly for lower-ranking militants. They said militaries must assess proportionality for each individual strike.
  • An international law expert at the US state department said they had “never remotely heard of a one to 15 ratio being deemed acceptable, especially for lower-level combatants. There’s a lot of leeway, but that strikes me as extreme”.
  • Sarah Harrison, a former lawyer at the US Department of Defense, now an analyst at Crisis Group, said: “While there may be certain occasions where 15 collateral civilian deaths could be proportionate, there are other times where it definitely wouldn’t be. You can’t just set a tolerable number for a category of targets and say that it’ll be lawfully proportionate in each case.”
  • Whatever the legal or moral justification for Israel’s bombing strategy, some of its intelligence officers appear now to be questioning the approach set by their commanders. “No one thought about what to do afterward, when the war is over, or how it will be possible to live in Gaza,” one said.
  • Another said that after the 7 October attacks by Hamas, the atmosphere in the IDF was “painful and vindictive”. “There was a dissonance: on the one hand, people here were frustrated that we were not attacking enough. On the other hand, you see at the end of the day that another thousand Gazans have died, most of them civilians.”
Javier E

China's 'Special Place' in Modi's Heart Is Now a Thorn in His Side - The New York Times - 0 views

  • S. Jaishankar, Mr. Modi’s external affairs minister, admitted recently that there were “no easy answers” to the dilemma posed by India’s aggressive neighbor. “They are changing, we are changing,” Mr. Jaishankar said. “How do we find an equilibrium?”
  • In a book published in 2020, just as he had taken over as Mr. Modi’s trusted foreign policy architect, Mr. Jaishankar wrote that the tensions between the United States and China set “the global backdrop” for India’s choices in a “world of all against all.” India’s ambitions as a major power, he wrote, would require a juggling act: “engage America, manage China, cultivate Europe, reassure Russia.”
  • India’s rise as a large, growing economy has allowed it to hold its ground — working with any partner it can benefit from — in a polarized and uncertain world.
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  • Even as India has expanded defense ties with the United States and doubled bilateral trade over the past decade, to about $130 billion in goods alone, it has resisted American pressure to reconsider its strong relations with Russia. India has deepened connections with Europe and the Middle East, too; trade with the United Arab Emirates alone has reached $85 billion.
  • While India remains wary of becoming a pawn in the West’s fight with Beijing, and has not forgotten its frosty history with the United States, China has become an unavoidable focus after being a secondary threat for much of modern Indian history.
  • India’s socialist founding prime minister was accommodating of Communist China, but the bonhomie was shattered by a monthlong war in 1962 that left thousands dead. The relationship began to normalize in the 1980s even as incursions continued, and open channels of communication kept tensions down and elevated trade.
  • The situation changed in the years before Mr. Modi took office, she said. As its economy soared, China began flexing its muscles — investing heavily in its Belt and Road infrastructure initiative, which India saw as threatening its security and spheres of influence, and moving more aggressively on its borders and in the Indian Ocean.
  • As prime minister, he did not allow the embarrassment of the Chinese incursion in 2014 to dampen his red-carpet welcome to Mr. Xi. His subtle message — a warning that “a little toothache can paralyze the entire body” — carried the hope that Mr. Xi would come around.
  • That hope ended with the deadly 2020 clash in Eastern Ladakh. Now, it is clear that New Delhi is resigned to a long-term threat from China, a shift evident in Mr. Modi’s push for road and tunnel construction in border areas to support a large troop presence.
Javier E

The future belongs to Right-wing progressives - UnHerd - 0 views

  • the only subset of Right-wing thought in the West today that doesn’t feel moribund is actively anti-conservative. The liveliest corner of the Anglophone Right is scornful of cultural conservatism and nostalgia, instead combining an optimistic view of technology with a qualified embrace of global migration and an uncompromising approach to public order.
  • in much the same way as the Western Left seized on Venezuela under Chávez as a totemic worked example of this vision, so too the radical Right today has its template for the future: El Salvador under Nayib Bukele
  • These moves have drastically reduced the murder rate in a previously notoriously dangerous country
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  • Since coming to power in 2019, Bukele has declared a still-to-be-rescinded state of exception, suspended the Salvadorean constitution, and locked up some 70,000 alleged gang members without due process.
  • Western critics, though, point to allegations that he has corrupted institutions by packing them with allies, not to mention, according to Amnesty International, “concealed and distorted public information, backed actions to undermine civic space, militarised public security, and used mass arrests and imprisonment as the sole strategies for counteracting violence in the country”.
  • yet, Bukele’s strongman tactics have made him wildly popular with Salvadoreans, who doubtless enjoy a reported 70% reduction in the country’s previously extremely high murder rate. They have also made Bukele a rock star for the online Right. This group, fond of complaining about spineless leaders, fraying Western law and order, and the bleeding-away of political agency into international institutions and NGOs, regards the spectacle of a strongman leader with good social media game as something like a fantasy made flesh.
  • Arguably, it’s as much his embrace of technology that accords Bukele the mantle of poster-boy for a futuristic Right. Whether in his extremely online presence, his (admittedly not completely successful) embrace of Bitcoin as legal tender, or the high-tech, recently rebuilt National Library, funded by Beijing and serving more as showcase for futuristic technologies than as reading-room
  • This trait also makes him a touchstone for the Right-wing movement that I predict will replace “conservatism” in the 21st century. This outlook owes more to the Italian Futurist Filippo Marinetti than conservatives of the G.K. Chesterton variety
  • is perhaps most visibly embodied in American technologists such as Elon Musk, Mark Andreessen or Peter Thiel. As a worldview, it is broadly pro-capitalist, enthusiastically pro-technology and unabashedly hierarchical, as well as sometimes also scornful of Christian-inflected concern for the weak.
  • We might call it, rudely, “space fascism”, though N.S. Lyons’s formulation “Right-wing progressivism” is probably more accurate. Among its adherents, high-tech authoritarianism is a feature, not a bug, and egalitarianism is for fools. Thinkers such as Curtis Yarvin propose an explicitly neo-monarchical model for governance; Thiel has declared that: “I no longer believe freedom and democracy are compatible.”
  • El Salvador is thus the most legible real-world instance of something like a Right-wing progressive programme in practice. And along with the tech enthusiasm and public-order toughness, the third distinctive feature of this programme can be gleaned: a desire not to end international migration, but to restrict it to elites.
  • For Right-wing progressives, polities are not necessarily premised on ethnic or cultural homogeneity — at least not for elites. Rather, this is a vision of statehood less based on affinity, history or even ethnicity, and more on a kind of opt-in, utility-maximisation model
  • As for those still wedded to the 20th-century idea that being Right-wing necessarily means ethnicity-based nationalism, they are likely to find this outlook bewildering.
  • Right-wing progressives generally accord greater political value to gifted, high-productivity foreigners than any slow-witted, unproductive coethnic: those within Right-wing progressive circles propose, and in some cases are already working on, opt-in startup cities and “network states” that would be, by definition, highly selective about membership.
  • As a worldview, it’s jarring to cultural conservatives, who generally value thick ties of shared history and affinity
  • Yet it’s still more heretical to egalitarian progressives, for whom making migration and belonging an elite privilege offends every premise of inclusion and social justice.
  • Right-wing progressives, by contrast, propose to learn from the immigration policies of polities such as Singapore and the Gulf states, and avert the political challenges posed by ethnic voting blocs by imposing tiered citizenship for low-skilled migrants, while courting the wealth and productivity of international elites
  • Bukele’s proposal suggests a pragmatic two-tier Right-wing progressive migration policy that courts rich, productive, geographically rootless international “Anywheres” of the kind long understood to have more affinity with one another than with less wealthy and more rooted “Somewheres” — but to do so while explicitly protecting cultural homogeneity on behalf of the less-mobile masses.
  • There are larger structural reasons for such pragmatism, not least that population growth is slowing or going into reverse across most of the planet.
  • At the same time, impelled by easier transportation, climate change, social-media promises of better lives elsewhere, and countless other reasons, people everywhere are on the move. As such, like a global game of musical chairs, a battle is now on for who ends up where, once the music stops — and on what terms.
  • How do you choose who is invited? And how do you keep unwanted demographics out? Within an egalitarian progressive framework, these are simply not questions that one may ask
  • Within the older, cultural conservative framework, meanwhile, all or most migration is viewed with suspicion.
  • The Right-wing progressive framework, by contrast, is upbeat about migration — provided it’s as discerning as possible, ideally granting rights only to elite incomers and filtering others aggressively by demographics, for example an assessment of the statistical likeliho
  • od of committing crime or making a net economic contribution.
  • In Britain, meanwhile, whatever happens to the Tories, I suspect we’ll see more of the Right-wing progressives. I find many of their policies unnerving, especially on the biotech side; but theirs is a political subculture with optimism and a story about the future, two traits that go a long way in politics.
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