China Guards the Keys to an Empire of Debt


This commentary originally appeared in Barron’s on 5/6/20


The coronavirus pandemic is bringing out the best and worst in political leadership. For China, it’s the latter. While first to confront the disease, the government initially failed to inform the global community, preferring instead to hoard supplies and information. By the time authorities gave the World Health Organization access to the country, it was too late. The virus had already spread around the world.

This pattern of official obfuscation also applies to China’s international lending practices. For years, the details of China’s bilateral deals have been closely guarded, including the terms of repayment and collateral required. Now developing countries that were eager for easy money are asking how they can possibly make debt payments amid a public health emergency. They’re not hearing answers.  

The Covid-19 outbreak will cripple their economies. And while the Chinese government wants to be seen as taking the lead in the global response to the pandemic, no amount of medical supplies will assuage concerns over economic collapse.

Many of these countries face an impossible choice: Enforce a lockdown they cannot afford to stem the spread, or remain open to sustain business activity that could drive further infections. Either way, they won’t be able to pay what they no longer have.


View the full op-ed at Barron’s (outside the paywall)


Brain Meet Computer- Elon Musk’s NeuralLink

Artificial intelligence – the ultimate tech disruptor some may fear has just gotten another boost. Elon Musk’s new company, NeuralLink, is exploring brain chip implants according to the Wall Street Journal (paywall).

The Verge quotes Musk from a Dubai conference saying, “Over time I think we will probably see a closer merger of biological intelligence and digital intelligence.”

So far, brain-computer interfaces focus mainly on medical applications with embedded, electrical stimulus helping reduce seizures. A prototype neural lace dates back to at least June, 2015 when scientists embedded the device in living mice.

Investors, neuroscientists and futurists see cognitive enhancement as the logical next step.

While this may seem far-fetched at the moment it was only a few years ago when pundits said that an electric vehicle company would never thrive. Tesla’s market cap crossed $45B in March.

Doubters said a rocket couldn’t fly into space, launch a satellite, and then land upright back on Earth. SpaceX has put that notion to rest. HyperLoop, space tourism, human life on Mars — none of these are so far-fetched anymore.

I thought I was writing speculative fiction with Ocular Rift, about a near-future where citizens are divided by version and brain-tech Immersives rank highest among them. Now, I’m not so sure. Shameless plug: New chapters were just added. Read for free here and let me know what you think.

 

Photo: Lieber Research Group, Harvard University