Understanding the source of so much global economic and financial uncertainty. Understanding what the ‘non Western world’ really thinks about the West. Understanding the true purpose of Ukraine’s counteroffensive. Understanding why carbon capture isn’t ‘a free lunch’. Understanding why it really is great to be grateful.
QUOTE OF THE WEEK
ARTICLE OF THE WEEK
Olivia White, Jonathan Woetzel and Jan Mischke, Strengthening the Global Balance Sheet
(Project Syndicate, 8 June 2023)
A good read to grasp why there is so much economic and financial uncertainty. In the past 20 years, asset-price inflation fuelled by low interest rates created about $160tr in paper wealth. Meanwhile, investment and growth remained sluggish, with debt relentlessly building up (every $1 in investment generated $1.90 in debt). As households lost $8tr of wealth in 2022, what is next for the global balance sheet? There are four main scenarios. (1) A “return to the past”: the current volatility proves temporary and balance-sheet expansion resumes – would eventually make things worse; (2) “Higher for longer”- inflation becomes entrenched and lowers the debt burden; (3) “Balance-sheet reset” – worst case as interest rates continue to rise; (4) “Productivity acceleration” – the Goldilocks scenario (paywall that requires prior registration – reads in 6-8 min).
Click here to read the full article
Chandran Nair, The West Must Prepare for a Long Overdue Reckoning
(The National Interest, 8 June 2023)
A must-read to understand how opinions about the West are shaping in the “global south” and more generally the non-Western world. Chandran, whom many of our community members know from the Chamonix Summit of Minds, doesn’t mince his words. He argues that Western dominance is coming to an end and says that five major trends illustrate how the world is changing. In short: “the West must grapple with the reality that it can no longer impose its “leadership” on the world as it once did.” Interestingly, it takes a conservative US journal to publish Chandran’s piece (metered paywall – reads in 6-7 min).
Click here to read the full article
Anne Applebaum, The true purpose of Ukraine’ counteroffensive
(The Atlantic, 8 June 2023)
Most likely, Ukraine’s counteroffensive has just begun. The historian explains that the Ukrainians are aiming not only to take back land, but also to conduct a psychological operation. It consists in trying to convince the Russian elite that the war was a critical mistake. It is unwinnable for Russia and also dangerous because the fight against Putin’s regime has now been brought on to Russian soil (free access – reads in 5-6 min).
Click here to read the full article
Fiona Harvey, Carbon capture and storage is ‘no free lunch’, warns climate chief
(The Guardian, 6 June 2023)
The IPCC’s chair recently stated that using technologies that capture carbon dioxide or remove it from the atmosphere were, contrary to common belief, “no free lunch”. The scientific argument boils down to the concept of “overshoot” – the likelihood that global temperatures will rise by more than 1.5C above pre-industrial levels but could then be made to return to below 1.5C by the end of the century. The longer the overshoot lasts, the greater the consequences of global warming. The bottom line: fossil fuels must be reduced drastically because the over-reliance on carbon capture and storage technology could lead the world to surpass climate tipping points (free access – reads in 5-7 min).
Click here to read the full article
Christina Caron, Gratitude Really is Good for You. Here’s What the Science Shows
(The New York Times, 9 June 2023)
There is plenty of new science that seeks to understand how we benefit from gratitude – a positive emotion that can arise when we acknowledge that we have goodness in our life and that other people have helped us achieve that goodness. It shows that giving, receiving, and even witnessing it can improve our wellbeing, especially during difficult times. It can have positive effects on our emotional health as well as on interpersonal and romantic relationships. Some studies even show that it can improve physical health. According to a psychologist who’s been researching gratitude all his professional life, it “heals, energizes and changes lives” (gifted article – reads in 6-8 min).
Click here to read the full article
