China's Financial Future
Question: Will China surpass the U.S. as a financial superpower?
Michael Mauboussin: I think the future for growth is quite bright. That said, there are a couple key things for ultimate growth. One is to make sure that intellectual capital is well protected. So much of the wealth creation in our world is not going to be from agriculture or even basic manufacturing, but really the world of ideas, services and knowledge goods. And for that to really work in a society, they must be well protected. I don’t think that’s yet perfectly the case in China.
The second thing is they’re working on their education system and its becoming much improved, but still the elite education system is based in the West, predominantly, the United States and to a lesser degree, Europe. Now that is changing, but that won’t change overnight. And what’s important about that educational system is that is it leads to ideas in services and knowledge. And that’s really important.
And the third thing is while their stock markets are now certainly developed, they're still not a fully developed community that allows for, for example, our venture capital community; investing in new businesses, mechanisms to succeed, but also mechanisms to fail. And I think those are some important pieces of glue that allow for a sustainable long-term growth that China has yet to fully adopt. So will they grow, yes. Will they close the gap with the United States; I think the answer is yes, but it’s essential that some of those other pieces click into place for it really to be ultimately the next big superpower.
Question: Where will the next financial crisis come from?
Michael Mauboussin: There are a couple of areas that I think the people should keep an eye out and these are well known, so I have no particular insight about these. Certainly, the China property market is something. We’ve seen some reports and some of that’s already rolled over, but China’s had a very, very overheated property market and that could be something that would be vulnerable, and again the magnitude would not be the same as it was in the United States, but that would be quite costly.
Another one is the U.K. property market; I think the U.K. has also had a very strong property market and it’s got some of the same characteristics, but I don’t really know if those things are legitimate concerns or bubbles that’ll deflate. I know it’s funny because a lot of people do want to talk about bubbles and that we should try to prevent them and so forth. And, you know, I think the classic line from Alan Greenspan to Ben Bernanke is it’s very difficult to know until after the fact and I can see both points of view on that, but it is hard to really anticipate these things with any sort of... in a systematic way.
It’s essential that several pieces click into place for the country to become the next big superpower, but its future looks bright.
Explore how alcohol affects your brain, from the first sip at the bar to life-long drinking habits.
- Alcohol is the world's most popular drug and has been a part of human culture for at least 9,000 years.
- Alcohol's effects on the brain range from temporarily limiting mental activity to sustained brain damage, depending on levels consumed and frequency of use.
- Understanding how alcohol affects your brain can help you determine what drinking habits are best for you.
If you want to know what makes a Canadian lynx a Canadian lynx a team of DNA sequencers has figured that out.
- A team at UMass Amherst recently sequenced the genome of the Canadian lynx.
- It's part of a project intending to sequence the genome of every vertebrate in the world.
- Conservationists interested in the Canadian lynx have a new tool to work with.
If you want to know what makes a Canadian lynx a Canadian lynx, I can now—as of this month—point you directly to the DNA of a Canadian lynx, and say, "That's what makes a lynx a lynx." The genome was sequenced by a team at UMass Amherst, and it's one of 15 animals whose genomes have been sequenced by the Vertebrate Genomes Project, whose stated goal is to sequence the genome of all 66,000 vertebrate species in the world.
Sequencing the genome of a particular species of an animal is important in terms of preserving genetic diversity. Future generations don't necessarily have to worry about our memory of the Canadian Lynx warping the way hearsay warped perception a long time ago.
Artwork: Guillaume le Clerc / Wikimedia Commons
13th-century fantastical depiction of an elephant.
It is easy to see how one can look at 66,000 genomic sequences stored away as being the analogous equivalent of the Svalbard Global Seed Vault. It is a potential tool for future conservationists.
But what are the practicalities of sequencing the genome of a lynx beyond engaging with broad bioethical questions? As the animal's habitat shrinks and Earth warms, the Canadian lynx is demonstrating less genetic diversity. Cross-breeding with bobcats in some portions of the lynx's habitat also represents a challenge to the lynx's genetic makeup. The two themselves are also linked: warming climates could drive Canadian lynxes to cross-breed with bobcats.
John Organ, chief of the U.S. Geological Survey's Cooperative Fish and Wildlife units, said to MassLive that the results of the sequencing "can help us look at land conservation strategies to help maintain lynx on the landscape."
What does DNA have to do with land conservation strategies? Consider the fact that the food found in a landscape, the toxins found in a landscape, or the exposure to drugs can have an impact on genetic activity. That potential change can be transmitted down the generative line. If you know exactly how a lynx's DNA is impacted by something, then the environment they occupy can be fine-tuned to meet the needs of the lynx and any other creature that happens to inhabit that particular portion of the earth.
Given that the Trump administration is considering withdrawing protection for the Canadian lynx, a move that caught scientists by surprise, it is worth having as much information on hand as possible for those who have an interest in preserving the health of this creature—all the way down to the building blocks of a lynx's life.
The exploding popularity of the keto diet puts a less used veggie into the spotlight.
- The cauliflower is a vegetable of choice if you're on the keto diet.
- The plant is low in carbs and can replace potatoes, rice and pasta.
- It can be eaten both raw and cooked for different benefits.
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