economy

There is a city that maintains much of Russia’s economy in times of war. And it is on the Chinese border

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On the Manzhouli map is a small point north of Mongolia inner, a city with a population similar to Las Palmas and one picturesque square full of replicas of Russian monuments and Matrioskas giants, including a 30 m high that works as a hotel. That is at least what is seen with the naked eye. In Manzhouli practice it is much more: an important Logistics node located right on the border between China and Russia that has gained weight as Moscow’s economy was distanced from the West and narrowed his links with Beijing. So much so that There are those who point since Manzhouli is playing a fundamental role to keep the Russian economy afloat in times of war. In a place in northern China … Manzhouli is far from being the most populous, dynamic or busy city in China, but over the last months has caught the attention of several analysts. He traveled recently Lisa Visentin, correspondent for The Sydney Morning Post. And there has moved now Keith Bradsher, head of the office of The New York Times In Beijing. What is special for this sub -prefecture of Mongola in the interior of just 382,000 inhabitants and a picturesque Russian -inspired theme park full of buildings topped in domes similar to those that can be seen in Moscow and Matrioskas Xl? The answer is simple: Manzhouli is on the border between China and Russia and has managed to carve a key role in the relationship between the two countries at a strategic moment, with the Russian economy marked by the severe sanctions With which the West responded to the War of Ukraine, more than three years ago. At the right time and place. In a wide analysis Posted this week in TnytBradsher points out that today much of the commercial flow between Beijing and Moscow is channeled through Manzhouli, something that is possible thanks in part to its roads and the railway line built at the beginning of the last century by Russia and that passes through the city towards northwest China. Today, trains and trucks traveling from Russia are carried out by the town loaded with wood, planks and other materials that help Beijing avoid imports from North America. From the Chinese town there are also a large number of vehicles destination Russia, where the market suffers the consequences of the sanctions and The withdrawal of European manufacturers. A fact: 65%. As a reference and to understand the economic weight of Manzhouli, in 2022 Global Times (GT)a medium linked to the Committee of the Chinese Communist Party, I calculated that the sight border land port moved up to 65% of all bilateral terrestrial trade between China and Russia. In fact, when many years ago Manzhouli suspended the customs office for weeks to meet the “anti covid-19” measures, a local businessman lamented in GT of losses that amounted to hundreds of thousands of daily yuan. How is it possible? For several factors, although there are two that stand out: their location and infrastructure. Manzhouli is The main one China shopping center with Russia just like Erenhot It is between China and Mongolia. In fact, the city is ceasing to be a “traffic station” of merchandise to become an industrial center. Over there It is processed For example, roller or wood. “Trains from all about China arrive in Manzhouli, one of the six railway ports through which Chinese-Europa trains pass before addressing Russia or other countries in Europe,” collected in 2023 Global Times. “The trains from Europe that go through Russia enter China through Manzhouli before addressing other cities in the country.” During the first quarter the flow of China’s load trains with the continent registered a 7.1% growth In the land port. It matters where … and when. The role of Manzhiuli is today more important because they are also the economic ties between Beijing and Moscow. In 2024 the combined imports and exports of China with Russia added nearby 240,000 million of euros, a historical maximum. The data is also 2% greater than that of 2023, although that increase is far from the 26.3% registered between 2022 and 2023, coinciding with the beginning of the Ukraine War. Bradsher points out that today almost 6% of the Russian economy is based on exports to China and that the flow of merchandise that comes out of China heading to the north It has triggered 71% Since the Kremlin troops advanced on Ukraine. Beijing has become the largest buyer of oil, wood and coal from Russia and in Manzhouli a relationship in which Moscow provides raw materials for the powerful Chinese manufacturing is evident. A perfect relationship? No. Despite this narrow link and that entrepreneurs in the region have managed to make fun of the use of dollars in transactions with Russia (Tnyt speaks With an Entrepreneur from the Manzhouli area that pays Russian wood in Chinese renminbi or rubles through the VTB bank), in the economic relationship between the two countries there are also friction. Moscow forces for example that the carved pines become tables in their own territory and months ago China applied Russian coal tariffs to boost their own production. After the success of Chinese cars in the Russian market, Moscow also chose a considerable rate to imported cars. Images | Wikipedia 1 and 2 Via | Tnyt In Xataka | Ukraine has opened Russia’s last drone and does not leave his astonishment: it is the first time that China does something like that

The size of the submerged economy of all countries in the world, exposed in this developer map

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It is said that, each one does what they want with their money, but in the future there is the question of whether each one You can pay as you want. Cash is still a important part of day -to -day paymentswhat has generated an unequal career in half the world and a problem: the submerged economy, which in many countries is a good percentage of GDP. And on this map prepared by Visual Capitalist It is perfectly reflected, although we must bear in mind that the percentages … they deceive. In the shadow. There are countries that have A crusade against cashand that is why you are promoting payment in digital and tools such as Digital euro. The map is based on the Global Report of Economy in the 2025 shadow of Ernst & Young and reflects which part of the GDP of each country escaped to fiscal control in 2023. Complicated. While this informal economy represents a significant loss of tax revenues for governments, it is really complicated to obtain an exact figure. That is because they are all those economic activities that are not declared and, therefore, regulated. For example, payments without invoice to avoid VAT, but also not declared and without contract, Rentals without contract or something that seems as innocent as some private classes in which no invoice is issued. Depending on the study, percentages of GDP by country or others are handled, but there is something that does not usually vary, and it is the difference between hemispheres. North. Worldwide, it is estimated that the submerged economy is equivalent to 11.8% of GDP and, although there are exceptions, there is a clear line that divides the world into north and south if we get carried away by that percentage of GDP that would correspond to money from the submerged economy. In Europe, countries such as Poland, Spain, Portugal, Italy or Greece have higher levels of submerged economy. Countries like Greece, Romania or Ukraine raise the average, and in others as Albania we talk about more than 27% of its economy belonging to the submerged economy. Canada and the United States remain at 4.5% and 5% respectively, Saudi Arabia has 5.2%, Japan 6.7%, Mexico 18% and in Central America we see that the level of submerged economy is increasing. South. Australia with 5.7% is one of the exceptions of countries in the southern hemisphere with a submerged economy contained, since in most of the rest, the percentage is overwhelming. Latin America It has a high level of submerged economy, but nothing is left if we compare it with what we see in Africa and some Asian countries. Africa takes the palm and it is estimated that, if Sierra Leone had a GDP of 6,400 million dollars in 2023, it had another 4.1 billion dollars, or 64.5% compared to GDP, in submerged economy. It is not an isolated case, since Nigeria, Ethiopia or Burundi are also cases in which the submerged economy is 50% or more of its GDP. And Asia. In Asia, the film is not so dramatic, but it is also not the region with the more transparent economy. India submerged would be comparable to 26% of its GDP, in Iran and Iraq it is similar, in Nepal it rises to 51% and then we have the case of China with 20%. It is not much if we compare it with the rest of the territory, but taking into account the amount of population that hasWe talk about important quantities. The same happens in Indiawith 26% that is much less than what is seen in many African countries, but that in total numbers, is much more. The percentages deceive. Because here there is something to take into account, 64.5% of Sierra Leone GDP has nothing to do with 5% of the United States. The higher an economy, although the percentage of submerged economy is lower, the total will be astronomical. In This other graph It can be seen perfectly, since that 20% of China translates into a total of 3.3 billion euros and the United States, with that “scarce” 5% submerged economy, translates into the largest economy in the shadow of the planet with 1.3 billion euros. Cash safety. As we said, there are countries trying Face this economy In the shadow. Portugal, for example, has converted invoices into lottery ticketsbecause not all activities that are not declared are illegal and the objective is that there are higher tax revenues. Paying with a card or digital media seems to the solution and, although it raises doubts about its operation without internet or electricity, the recent April blackout showed that There were TPV terminals prepared for it And that the future digital euro … It is too. If it arrives one day. In Xataka | The sudden enthusiasm for a society without cash or physical portfolio: the geek and the accommodation, a drama for the poor

It is a relief for the world economy

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The United States and China have announced Monday that they have reached an agreement to temporarily reduce the import tariffs that had been announced previously. The Escalada in the Commercial War Between both countries I was having a huge impact on the economy, but now both sign a truce that can be the beginning of a new commercial balance. What happened. In a joint advertisement, both countries have indicated that they reduce their tariffs over the next 90 days, which will continue the negotiations initiated this weekend. As indicated In The New York TimesUnited States will reduce Chinese import tariffs 145% to 30%, while China will apply 10% tariffs to US imports, when that figure It was 125% before this truce. Source: The New York Times. “Shared interest”. Scott Besent, US Treasury Secretary, indicated at the press conference in Geneva that both countries have concluded that “we have a shared interest. The consensus by both delegations is that none of the parties wanted a decoupling (commercial).” China again export rare earths. Another decisions in this agreement is that China will suspend the Rare exports restrictions. This measure had been taken as retaliation Before the ads of the tariffs by the US, but now the North American country will have access to these critical materials for industries such as car, aerospace or semiconductors. A break for the world economy. This reduction in tariffs is a hopeful pause for a worrying situation. The consequences of tariffs are already being noticed in the industry and of course in the technology prices we buy. There are many companies that have tried to react in the most appropriate way to mitigate the impact of tariffs on their business and customers. The Big Tech Like Apple “With a lot of movement.” surrounding iPhone– They were being clear examples of those impacts, which also noticed Google goal. More steps back. The truce in the imposition of tariff Like that of semiconductors. It was the first sign that Donald Trump was realizing that these measures were a foot shot for the US. A Way for the Descale. Both decisions point to a renewed intention for renegotiating the terms of trade agreements between the two major world powers. Mark Williams, Capital Economics analyst, explained that this agreement is “another substantial withdrawal of the aggressive Trump administration position.” The 90 days that will allow both parties to try to reach a new agreement in the application and dimension of tariffs. Battle won from China? Analysts like Zhiwei Zhang, from Pinpoint Asset Management, explained that “from the perspective of China, the result of this meeting is a success, since China took a determined position in front of the US threat of high tariffs and ended up getting the reduction of tariffs without making significant concessions.” Uncertainty. Responsible for the European Chamber of Commerce in China indicated feeling “encouraged” for the announcement, although they made it clear that uncertainty persists Because this decision is only temporary. The Hong Kong stock index has grown by 3% after the announcement, and practically the same has happened in the case of the S&P 500 futures index. Image | Cage Skidmore | Paul Kagame In Xataka | Chinese companies have found a “shortcut” to dodge US tariffs: re -estate in South Korea

The US plan to reduce oil is about to derail what worked best in its economy

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Brent and Wti crude prices suffered a great fall of the barrel two days ago. This situation caused a very large alert In the markets, since since February 2021 there was no such low data. After the storm, prices have stabilized around 60 dollars the barrel for the Trump measure of suspend for 90 days The highest tariffs to different countries. In this way, the commercial war has become A direct conflict against China that does not know the scope tariffs, leaving an economic paradox in reducing oil price. Lowering prices. Until now, the United States has managed to reduce its commercial deficit thanks to the revolution of the shale, which has made the USA Net oil exporter Since 2020. This expansion prior to Trump’s second mandate had achieved reverse decades of foreign oil dependence. However, the impulse to pierce with the famous “Drill, Baby, Drill” Together with tariff policies, it has caused global uncertainty, According to PVM analyst Tamas Varga in Reuters. There are no good ideas. And it is evident that Trump’s policies They lack a coherent direction. According to Reutersthe fall in crude oil prices is a reflection of the loss of confidence in American economic policy, especially in the middle of a commercial war, affecting the global demand for oil. Also, like He has stressed Energy expert Javier Blas, drilling and production costs are not profitable below $ 65 per barrel in the United States. In other words, if prices fall too much, production would decrease, which would force more oil and, therefore, would expand the commercial deficit, which is precisely what Trump wants to reduce. The paradox. The contradiction in Trump’s policies is clear: its strategy of reducing oil prices to control inflation and stimulate the economy will have the opposite effect to the desired one. According to Blas explainedTrump’s objectives was precisely to reduce the commercial deficit. Before its presidency, the revolution of the shale, which allowed the United States to become a net oil exporter, was one of the factors that contributed significantly to improve the trade balance in the last two decades. However, by pushing prices at lower levels, Trump is running the risk of undoing the advances achieved, generating a macroeconomic imbalance that would seriously affect local production and increase import dependence. Besides, Anz Bank analysts in Reuters They expect that, if world economic growth falls below 3%, oil consumption could decrease 1%, which would further aggravate the situation. Depending on oil. This Trump strategy also affects other countries than their income They are derived of the export of oil, such as Saudi and Russia Arabia. Although oil has experienced very significant fluctuations for more than five years, it is not even this commercial war when tensions have been exacerbated causing a strong fall. This situation can cause a new layer of geopolitical tension. On the one hand, Saudi Arabia needs raw barrels to exceed $ 90 to continue building and investing in their macroprojects, Like Neom. On the other hand, the fall in prices in Russia has generated Even more pressure on its economy, which is already weakened by the Ukraine War. Forecasts. As He has warned Javier Blas, “drilling, drilling, drilling” will not work if the barrel is 50 dollars and if the United States does not pierce, it must import it. In short, leaving a scenario in which the US president, in his attempt to control prices, can end up undoing the most effective tool he has had to reduce the commercial deficit in decades. Image | Gage Skidmore and Unspash Xataka | China responds again to US tariffs and rises to 125%: from here it would be a “joke” to keep climbing

The dollar has been the world economy for 80 years. The US tariffs are starting to destroy it

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In the two long months he has in the Oval Office, Donald Trump has demonstrated that he did not joke when he said that his favorite word is “tariff.” The Commercial War in which it has been engaged, with ads and against ads, attacks and backgrounds that now focus the focus In China, it is however affecting what could well be the second header word for the Republican leader: the dollar, which faces its own historical chapter, in full depreciation against other assets such as The euro or the Swiss Franco. In the background, there are voices that already speak of a trusted crisis In the American currency, a weakening of its global position as a safe shelter or even They wonder If we go at the end of the golden era of the green ticket. Dollar slopes. In full tariff war and between recession drums In the US and loss of investor confidence, the US dollar does not go through its best moment. Although The partial truce 90 days decreed on Wednesday by Trump has paid the falls in the stock market, the trend is different if we talk about public debt and especially dollars. Green tickets They have deflated in front of currencies such as the euro or the Swiss Franco. And quite clear, besides. Click on the image to go to Tweet. What do the figures say? After the dollar suffered yesterday its worse day In about a decade, the Euro is already 1.14 dollars. You have to go back several years ago to find it in such low levels in front of the community currency. As for the Swiss currency, another key reference, Reuters remembers That the green ticket has fallen 1.2%, to 0.814 francs, for the first time since the beginning of 2015. All this with him and reaching his Maximum of several months and with gold moving in Historical maximums While investors are looking for safe shelters, precisely what (until not so ago) offered green tickets. “There has been a marked tendency to sell US dollars flowing through the general markets and towards classical shelter assets, with the dollar losing that position,” Confirms Reuters recently Chris Weston, from Pepperstone. Why is it important? Because the dollar is more than the currency with which the Americans make their purchases. Is behind the vast majority of transactions, acts world reference and has allowed the US to be financed at low types. “Half the world is stunned looking and the other horror about what will happen to the dollar as a universally accepted currency and vault key of the global financial system,” Explain to The country Juan Ignacio Crespo. “It is very unusual in the US”. The dollar situation has caught the attention of other experts, such as Nick Timiraos, economic correspondent for The Wall Street Journal And who yesterday shared In X some reflections on the drift of the yields of the treasure bonds at 30 years and the weakening of the dollar. “Rises in yields and low in currencies are common in emerging markets. We saw it in the United Kingdom during the debacle of Truss. But it is very unusual in the US. There are only four other episodes in the last 30 years in which the dollar depreciated more than 1.5% with an increase in return to more than 10 basic points, ” Timiraos collects citing the Evercore ISI firm. Its conclusion: the data suggests the end of ‘exceptionalism’ of American growth and a loss of attractiveness of dollars. Click on the image to go to Tweet. Crisis of trust in the dollar? That is the idea that appears for some time among some analysts, such as Francesco Pesole, of ING, which after the fall of the dollar to a minimum of three years in front of the euro, It was pronounced with roundness in Financial Times: “The question of a possible crisis of trust in the dollar has definitely been resolved: we are experiencing it with all its force.” It is not the first to point in that direction. Monday Reuters warned that there were investors and analysts concerned with the perspective that Trump’s protectionist policies, changes in the current global economic order in the last decades and the growing debt The US ended up undermining the attractiveness of the dollar, with even risk of a crisis of trust in the green ticket. End of the ‘golden age’ of the green ticket? That is the question he launched to Benjamin Dubois, head of Edmond’s coverage management of Rothschild, in An analysis collected by The economist. It slides that the fall of the currency “could be the beginning of a deeper underlying trend.” “Trump’s second mandate could make the dollar lose the dominant status he has enjoyed during the last decade,” Point out The expert before citing factors such as the depreciation of Trump’s currency or commercial war. The answer does not seem clear. For Per Jansson, vice governor of the Central Bank of Sweden, It is not predictable However, the US reaches the point that the status of the dollar changes. And he warns: “It would be a great change for the world economy … and basically create chaos.” The truth is that Trump has spoken against attempts to weaken the currency, which still has in his favor the support of the strong economy of the United States, the markets and the lack of a short -term alternative. Reindustrialization. One of The wishes of Trump, which already connects with his first presidential mandate, is to enhance The manufacturing industry of the US. And in that effort the currency and its strength also play a key role. After remembering the restructuring of the global financial system raised by S. Miran, Donald Trump advisor, Dubois remembers: “It is based on the conviction that the dollar must be depreciated to allow US reindustrialization.” The Republican himself has pointed out that a weaker dollar would also benefit exports. Images | Timis Alexandra (UNSPLASH) and Gage … Read more

Tariffs are already being charged to their first great victim of the global economy: the price of oil

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In this tariff war, China He has decided to get back to the United States with tariffs of 84% to all imports. A blunt response of the Asian giant, which has charged its first victim by crossfire: oil. Price drop. The price of barrels is below Los 60 dollars and going down. As He explained Energy expert Javier Blas, the oil market is going through a perfect storm: on the one hand, the fall in global demand as a direct consequence of the tariff war, and on the other hand, The answer a few days ago of the OPEC+ to continue producing more, which causes the offer to continue increasing. If this situation extends, it could evolve towards a real supply shock affecting two giants. The matter is more complex. OPEC+ decided to increase its oil production despite the fall in prices due to tariffs and concerns of a global economic slowdown. The organization I was looking to recover the market share I had lost due to the previous cuts. In addition, the growing production of non -member countries and Failurers of the rules to raise the offer. It will be very expensive. In all this situation, Saudi Arabia is one of the affected giants because in its recent projects it is diversifying its economy with the initiative, Vision 2030. It is betting on an economic model that is disconnected from oil, but It is still your currency To continue financing their mega -structures, such as Neom. As have indicated from Reutersthe fall in prices threatens to cut tens of billions of state dollars, as is already being seen in the stock market of the state oil company, Saudi Aramco. The impact is capital, since Riad can be forced to increase his indebtedness or postpone large infrastructure projects. In fact, according to the same news agency, the International Monetary Fund has estimated that Saudi Arabia needs prices greater than $ 90 per barrel to square its accounts. The other giant. The fall in prices takes with him another great economy ahead: Russia. As He has warned for Reutersthe governor of the Central Bank, Elvira Nabiullina, that the escalation of tariff wars represents a clear risk for Russia due to the fall in crude oil prices. In his words, the continuity of the commercial conflict reduces global trade, slows down the world economy and, consequently, decreases the demand for Russian energy resources. In fact, with the current situation of war, the dependence of Moscow of oil and gas is key, but the data is showing how in March 17% fell and it is expected that in April it will continue to descend. From Moscow. Kremlin spokesman Dmitri Peskov has acknowledged that the oil market is going through an “extremely turbulent” situation, derived from commercial tension caused by the United States. Meanwhile, the price of raw Urals, the Russian referent barrel, is dangerously approaching to the threshold of 50 dollars By barrel, the lowest level in almost two years. As Oilprice has had accessRussian authorities have indicated that a technical fiscal rule will help mitigate the effects on the budget, but oil prices are in free fall. Forecasts. The price of oil can continue down with all the situation that is being experienced: wars, sanctions and territorial instability. All this affects perception Investor risk and without a clear OPEC+ response the price falls without brakes. Image | Javier Colmenero Xataka | For great technological tariffs are an existential threat: their empires depend on the “world system”

The global economy enters an unexplored land

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The commercial war between United States and China He has just reached a new level. The two greatest economic powers of the planet star in a tariff climb that does not give signs of braking. We are facing a scenario that can drag significant effects on the global economy, especially for its direct impact on interconnected supply chains and the stability of financial markets. In less than 24 hours, Donald Trump’s government has decided to carry tariffs on Chinese imports from 54% to 104%in response to Beijing’s refusal to remove its 34%rate. The reaction soon arrived: China announced a new 84% tariff to American products. And when it seemed difficult to go further, Washington has returned to the bet: the US tariff now rises to 125%. He blows China for his refusal to negotiate. “Based on the lack of respect that China has demonstrated towards world markets, therefore the tariff charged to China for the United States of America to 125%, with immediate effect,” Trump said in a publication. The announcement reinforces the political and commercial pressure on Beijing at a time of maximum tension. Now, all eyes are put in the possible response of the Chinese government. Click to see the original message in Truth Social Pause in some reciprocal tariffs. The US president has also announced that he will immediately suspend the highest tariffs for 90 days for dozens of partner countries. It is not clear what nations will benefit from this tariff truce, nor under what criteria will be applied. What has been confirmed is that, even in those cases, the base rate of 10% that entered into force will remain in force last Saturday. Washington’s turn comes at a key moment: dozens of countries were already preparing their response to reciprocal tariffs that entered into force just a few hours ago. Among them, the Member States of the European Union, who approved on Wednesday a package of commercial reprisals against the United States. The measures are planned to be applied on April 15, although in this new scenario it will be necessary to see if that calendar is maintained. In development. Images | Xataka with chatgpt In Xataka | The European car industry has a problem with US tariffs. Your solution is surprising: India

The US tariffs are already hurting two of the companies that support Taiwan’s economy: TSMC and Foxconn

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Tariffs officialized by the US government on April 3 They are wreaking havoc on the entire planet. These taxes penalize Vietnam with a 46%surcharge; to Cambodia, with 49%; to China, with 34% that adds to the tariffs that the US administration had already previously approved to make a total of 54%; either Taiwan with 32%among many other countries with which the nation led by Donald Trump maintains commercial relations. The relationship that the US and Taiwan maintains is singular. From a geostrategic point of view they go hand in hand with the purpose of defend their interests against China. However, the current US administration is determined to take the necessary measures to re -lead the semiconductor manufacturing industry as it did until the mid -80s and Taiwan is an obstacle. A very big one. After all, TSMC, The largest integrated circuit manufacturer on the planetIt is a Taiwanese company. Taiwan’s bag is already collapsing Donald Trump’s plan and his collaborators require that the US acquires the ability to manufacture all the avant -garde chips that currently come from Taiwan, or, to a lesser extent, from South Korea. And is that a good part of the GPUs for artificial intelligence (AI) that design Nvidia, AMD, brains or Amazon, among other American companies, leave the latest generation plants that TSMC has in their country of origin. The announcement of the new tariffs is already seriously damaging some of the companies that support Taiwan’s economy, such as TSMC or Foxconn If we stick to Taiwan the US tariffs seek to encourage the transfer of TSMC, UMC production plants and other Taiwanese companies to the US to, thus, avoid tariffs. In fact, TSMC is getting ready Several avant -garde plants in Arizona (USA), and one of them is about to start large -scale advanced chips production. In any case, the announcement of the new tariffs is already seriously damaging some of the companies that support Taiwan’s economy, such as TSMC or Foxconn. Just 24 hours ago the Taiwan bag almost 10% collapsed in which it is already its most pronounced fall in one day. The coup de grace was given the officialization last Thursday by the US government of the imposition of the 32% tariffs that I have mentioned a few lines above. According to Reutersthe announcement of the US administration has caused many investors to sell their shares of large technology companies. And, apparently, TSMC and Foxconn are two of the most affected. In addition, it is not any two companies. Not much less. Chips are fundamental for the support of Taiwan’s economy. And it is evident that TSMC is your crown jewel In this industry. AND Foxconn leads the global industry of the manufacture of consumer electronics devices. In fact, it is a fundamental pillar in Apple’s supply chain, Sony, Nintendo, Microsoft, HP or Dell, among many other companies. The Taiwan government has responded rapidly creating a fund of 2,650 million dollars that seeks to help the companies most damaged by the new US rules. And President Lai Ching-te has announced that he will strengthen economic ties with the country of Donald Trump with the purpose of finally eliminating tariffs between both nations. We will see what happens finally, but Some specialized analysts In economics they predict that Taiwan will fall into a short -term recession. Image | Foxconn More information | Reuters In Xataka | The USA hits China again with a double purpose: to stop the development of its hypersonic superorders and missiles In Xataka | What’s behind the chips megafabrica that TSMC and Samsung plan to build in Arab Emirates

There was a time when poop moved the economy of half the world. His name was Guano and taught Peru a valuable lesson

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Throughout history, humanity has interested in different resources. Maybe the Gold fever It is the best example to see how the obsession with a specific one unleashes the madness in those who seek to make it its main source of income, arramping with everything they find without thinking that it can be bread for today, and hunger for tomorrow. With the case of gold it is logical, but … Did you know that something very similar happened with excrements of sea birds? This is the story of the guano, the ‘white gold’ that transformed the Peruvian economy for both better and bad. White gold. Friedrich Wilhelm Heinrich Alexander von Humboldt was a man with a lot of free time. Born in 1769, this German was a philosopher, scientist, geographer, naturalist and explorer, among other things. During a trip through South America in 1802, Humboldt He visited the Peruvian coast and was interested in how the premises used a white element as substratum For crops. His name was Guano, and it was the result of the dry excrements of sea birds. HE says That, walking through an area where there was a lot of stored guano, he began to sneeze out of control, and it was his curiosity that encouraged him to send samples to Europe to study his components. What happened next is not something that caught us by surprise at this point: pre -Columbian civilizations were generations using the substrate, Europeans found that the guano was a magnificent fertilizer and began to be interested in him. Pass. The guano is literally fertilizer. His own name “Wánu” in Quechua means “fertilizer”, and really had a unique composition to enrich soils. This guano was a wonderful result of the conditions of the area. The mixture between the dry climate of the Peruvian and Chilean Islands, the composition of the rocks on which they fell and the excrement fruit of the marine diet of the birds resulted in a compound Rich in nitrogen, phosphorus, calcium and potassium. It was ideal for improving the health of plants and promoting their growth, so European and American farmers began to pay close attention to the substrate. The reason? The increase in the population was causing an overexploitation of the fields, which led to its exhaustion and a series of unsuccessful crops. You had to find a miraculous solution, and the guano had all the ballots to be that solution. Peanut mine. The two territories began to exploit the resource based on good. Between 1840 and 1880, the demand for the guano exploded and the Peruvian islands became a very precious good. The United States and the ‘Old Continent’ carried dozens of ships with this white gold and Peru came nothing wrong. In those 40 years, Peru exploded about 11 million tons of guano, with estimated revenues of about 38 million dollars. That decontextualized amount may not tell us too much, but the guano’s income allowed the country to develop with ports, railways and roads. Not surprisingly, the first year of exploitation of the guano, the appeal contributed 5% of the income to the country. Facing the last decade of Bonanza, that input It was 80%. A real barbarity. The “Guano War”. It was so popular that the United States, to anyone’s surprise, believe The Guano Law of 1856, for which any American citizen could claim uninhabited islands that had guano deposits. This led to the private appropriation of a hundred of islands in the Pacific and the Caribbean, but the thing became serious between 1879 and 1884. It was when the “Guano War”, A conflict between Peru, Chile and Bolivia for the control of the richest deposits of both Guano and Salitre. As a result, Chile attached some very important enclaves, such as the Atacama desert (which today is one of its wonders for the production of renewable energy), and things for Peru began to change course. Interestingly, the nations that entered that war had been allied against Spain, where guano control was also an important point in the Hispanic-Sudamerican War. To produce, beautiful And crisis. Peru focused so much on the export of the guano that, when the fever sent at the end of the 19th century, the country entered In an economic crisis. It is not that the world stopped wanting Guano, since it was still a very precious resource, but there were two reasons that led the main buyers of the substrate to look the other way. The first was that the reserves began to exhaust and the rate of production could no longer be maintained. The second was that synthetic fertilizers began to appear that could be more or less efficient, but above all they were cheaper because they did not have to bring them through dangerous crossings of thousands of kilometers by boat. The lesson in the Peruvian economy was that they could not focus on a single resource and its economy could not depend From something like that, which highlighted the need to diversify to avoid similar situations in the future. Present. Now, the Guano is still an excellent fertilizer and not only produces the Pacific Sea Birds. The bat guano also has fantastic properties such as fertilizer (in addition to being easier to obtain). And the resulting of the excrement of seals and penguins is also highly valued, but also a very expensive resource because the populations are diminishing. In the end, the Guano played an important role not only in the economy of the countries involved, but at the beginning of the modernization of agriculture, by stimulating investment in fertilizers and, when they began to scarce, to the development of artificial fertilizers. The cycle is repeated. On the other hand, it was One more example How from the Old Continent exploited the resources of Latin America, using local labor under conditions of almost slavery for the benefit of the stranger. And, writing these lines, it is impossible not to draw parallelism with the Rare earth At … Read more

Microsoft’s general director’s opinion about AI is unusual. And suspect how much the global economy will grow thanks to it

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Satya Nadella, the general director of Microsoft, has intervened in the Dwarkesh Patel podcast. During Your interesting conversation of something more than an hour and a quarter duration This executive has touched many sticks of hot actuality for its relevance in the world of technology, but in this article we propose to investigate two of them: the artificial intelligence (AI) and the Quantum computers. And Microsoft objectively has much to say in these two disciplines. With regard to quantum computers, Redmond’s have surprised us with the presentation of a new architecture expressly conceived for these machines. Majorana 1 It is the first quantum processor devised to Use the exotic particle Theoretically proposed by the Italian physicist Ettore Majorana almost 90 years ago. Whatever the really important thing is that Nadella argues that it is possible that thanks to this Microsoft technology you can put a quantum computer equipped with millions of cubits and capable of solving a very wide range of problems in just four years. Satya Nadella believes that AI is not being evaluated correctly We are all witnessing the thrilling rhythm of development that is experiencing AI. In fact, during the last two years this technology is monopolizing the attention of the great powersresearch institutions, companies, and, of course, also of users. And nothing seems to indicate that this trend will change. Not at least in the short or medium term. Satya Nadella’s speech defends the importance of AI, but, surprisingly, this executive argues that her evolution is not being evaluated in the proper way. “Thanks to AI it is possible to increase productivity (…) The real reference point is that the global economy grows 10%” “For me it makes no sense to self -proclaim (human beings) that we have reached some milestone in the field of General Artificial Intelligence (AGI for its English denomination). It is only a manipulation of the performance tests that, in my opinion, is meaningless (…) the winners will actually be the industries that Be able to use this technologywhich, by the way, is abundant. Thanks to it it is possible to increase productivity, so the economy grows at a faster rate. The true reference point is that the global economy grows 10%”, SATYA NADELLA has pointed out During his conversation with Dwarkesh Patel. It is worth not overlooking two important points of this statement from the head of Microsoft. On the one hand it is evident that it is moderating the enthusiasm that They have triggered Openai and other companies in the always controversial land of the AGI. And, what if possible is more relevant, proposes a bar to measure the development of the different AF -is being used, and that requires evaluating its direct impact on economic growth. But there is something else. Something very important. And it is that Nadella has suggested, as we have just seen, that AI could trigger a global economic growth of 10%. We will see if the time finally is right, but a priori does not sound at all far -fetched. Image | Microsoft More information | Dwarkesh Podcast In Xataka | 38% of the US experts have formed in China. They are essential to sustain their leadership

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