Juggling Dynamite

Our August month-end client letter explores the history and compounding ramifications of various deficits and debt levels across countries. ‘Easy money’ most often turns out to be a curse.

US public debt just crossed $40 trillion, but the country is hardly the only one facing fiscal troubles. Nations around the world took on record debt during Covid, and many have struggled to bring spending back under control. Chrystia Freeland, who faced this problem herself as Canada’s Finance Minister, speaks with former Dutch Finance Minister Sigrid Kaag and former German Finance Minister Christian Lindner about why fiscal discipline is so politically difficult and what the rest of the world can learn before markets force the issue.  Here is a direct video link.

Amid all the talk about the economic, stock and credit market risks that have been magnified by the AI spending frenzy, very few mention the unsustainable environmental costs. This discussion offers a taste of the implications for all of us.

Since a famous case against a California utility, the name Erin Brockovich has become synonymous with a fighter taking on big polluters. Earlier this year, Brockovich began receiving e-mails from people worried about the construction of A.I. data centers, which is happening at a frenetic rate all over the country. People expressed concerns about the loss of farmland and natural areas; disruptions to the water table; deleterious noise; and substantial usage of electricity and water, leading to rising utility bills. She speaks with David Remnick about her to document data-center construction and environmental complaints. “In my thirty years,” she tells Remnick, “I’ve never really seen the people show up like they are at a very local level.”

Here is a link to Brockovich AI Data Center Reporting website and below is the the map showing community complaints to date about AI data centers.