Month: July 2025

Economics-Watching: BRICS Currency Creates Dilemma for the Dollar

by Christopher Whalen, from China Daily

The term “BRICS currency” typically refers to a hypothetical or proposed unified currency for the BRICS grouping. It’s not a single, physical currency currently in use, but rather a concept for a potential future monetary system that some suggest will reduce the dominance of the U.S. dollar in international trade and finance.

Is BRICS currency cooperation about immediate de-dollarization or long-term financial sovereignty? The answer is that BRICS cooperation may include reducing long-term dependence on the dollar as a means of exchange. The dollar is involved in more than half of all trade and 80 percent of all foreign exchange transactions. BRICS currency cooperation aims to gradually reduce the group’s dollar dependency, but challenges remain.

The BRICS concept came about not because the dollar is unsuitable as a means of exchange or unit of account, but rather because of the use of the dollar by Washington as a weapon. As I note in my book, Inflated: Money, Debt and the American Dream, the special role of the dollar in U.S. finance allows the U.S. government to impose harsh compliance and reporting requirements on foreign nationals and institutions. The U.S. is an arbitrary hegemon and does not follow reciprocity with other countries.

The global role of the dollar is an anomaly, the byproduct of two world wars had left the other antagonists broke by the time the Bretton Woods Agreement was signed in July 1944.

Choosing the fiat paper dollar as the default global reserve currency more than seven decades ago reflected the fact that the United States was one of the victors and possessed the wealth that gave Washington unchallenged economic leadership. Prior to World War I, the United Kingdom’s pound sterling was the global standard, but importantly, this paper currency was backed by gold — the only money that is not debt. The dollar, too, was backed by gold — until 1933, when the Franklin Roosevelt administration confiscated gold in private hands to prevent his government from collapsing.

Pound notes started to circulate in England in 1694, shortly after the establishment of the Bank of England. The paper pound helped to fuel the expansion of the British Empire, in large part because the only competing form of money was physical gold. When Britain and other nations left the gold standard in the 1930s, it was due to the deflation caused by the Great Depression rather than a deliberate choice.

The 19th-century rule attributed to English journalist and businessman Walter Bagehot says that in times of crisis, lend freely at a high rate against good collateral. Yet since the currency devaluation and gold seizures of 1933, fiat currencies and below-market interest rates have been the rule. In a global scheme in which the government occupies the prime position, the operative term remains “financial repression”, whereby governments control markets and artificially suppress rates of return on debt. For this reason, the dollar is losing its role as a store of value to gold.

The fact that the dollar continues to trade strongly versus other currencies reflects the reality that as the main means of exchange globally, the dollar cannot be easily replaced. One reason for this continued support for the dollar is that the trade in petroleum and other commodities is so large that it requires an equally large currency to accommodate it. Also, neither the Europeans nor the Japanese, the only two possible alternatives, are willing to risk the external deficits or inflation that the U.S. suffers as the host for the global currency.

What global currency will replace the fiat paper dollar? None. As this article is being written, gold is the second-largest reserve asset for central banks after the dollar. “The initiation in 2002 of the Shanghai Gold Exchange was of great strategic significance, both for gold and the global monetary system,” notes veteran gold fund manager Henry Smyth in an interview in The Institutional Risk Analyst. “Now it is completely clear what happened.”

Smyth and many other observers see the creation of the SGE in 2002 as the return of gold to the international monetary system. But while gold is growing in importance as a reserve asset for many countries, it does not mean that the role of the dollar as a global means of exchange or unit of account is about to change.

The dollar will remain the dominant asset. And even then, displacing the dollar will require a major change in the international monetary system, a change that is already underway.

The author is the chairman of Whalen Global Advisors LLC in New York and the author of Inflated: Money, Debt and the American Dream published by Wiley Global (2025).

World-Watching: Science First Release, 10 July 2025

[from Science]

Accepted papers posted online prior to journal publication.

NASA Earth Science Division provides key data

by Dylan B. Millet, Belay B. Demoz, et al.

In May, the US administration proposed budget cuts to NASA, including a more than 50% decrease in funding for the agency’s Earth Science Division (ESD), the mission of which is to gather knowledge about Earth through space-based observation and other tools. The budget cuts proposed for ESD would cancel crucial satellites that observe Earth and its atmosphere, gut US science and engineering expertise, and potentially lead to the closure of NASA research centers. As former members of the recently dissolved NASA Earth Science Advisory Committee, an all-volunteer, independent body chartered to advise ESD, we warn that these actions would come at a profound cost to US society and scientific leadership.

[read more]

Spin-filter tunneling detection of antiferromagnetic resonance with electrically tunable damping

by Thow Min Jerald Cham, Daniel G. Chica, et al.

Antiferromagnetic spintronics offers the potential for higher-frequency operations and improved insensitivity to magnetic fields compared to ferromagnetic spintronics. However, previous electrical techniques to detect antiferromagnetic dynamics have utilized large, millimeter-scale bulk crystals. Here we demonstrate direct electrical detection of antiferromagnetic resonance in structures on the few-micrometer scale using spin-filter tunneling in PtTe2/bilayer CrSBr/graphite junctions in which the tunnel barrier is the van der Waals antiferromagnet CrSBr. This sample geometry allows not only efficient detection, but also electrical control of the antiferromagnetic resonance through spin-orbit torque from the PtTe2 electrode. The ability to efficiently detect and control antiferromagnetic resonance enables detailed studies of the physics governing these high-frequency dynamics.

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Scalable emulation of protein equilibrium ensembles with generative deep learning

by Sarah Lewis, Tim Hempel, et al.

Following the sequence and structure revolutions, predicting functionally relevant protein structure changes at scale remains an outstanding challenge. We introduce BioEmu, a deep learning system that emulates protein equilibrium ensembles by generating thousands of statistically independent structures per hour on a single GPU. BioEmu integrates over 200 milliseconds of molecular dynamics (MD) simulations, static structures and experimental protein stabilities using novel training algorithms. It captures diverse functional motions—including cryptic pocket formation, local unfolding, and domain rearrangements—and predicts relative free energies with 1 kcal/mol accuracy compared to millisecond-scale MD and experimental data. BioEmu provides mechanistic insights by jointly modeling structural ensembles and thermodynamic properties. This approach amortizes the cost of MD and experimental data generation, demonstrating a scalable path toward understanding and designing protein function.

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Negative capacitance overcomes Schottky-gate limits in GaN high-electron-mobility transistors

by Asir Intisar Khan, Jeong-Kyu Kim, et al.

For high-electron-mobility transistors based on two-dimensional electron gas (2DEG) within a quantum well, such as those based on AlGaN/GaN heterostructure, a Schottky-gate is used to maximize the amount of charge that can be induced and thereby the current that can be achieved. However, the Schottky-gate also leads to very high leakage current through the gate electrode. Adding a conventional dielectric layer between the nitride layers and gate metal can reduce leakage; but this comes at the price of a reduced drain current. Here, we used a ferroic HfO2 – ZrO2 bilayer as the gate dielectric and achieved a simultaneous increase in the ON current and decrease in the leakage current, a combination otherwise not attainable with conventional dielectrics. This approach surpasses the conventional limits of Schottky GaN transistors and provides a new pathway to improve performance in transistors based on 2DEG.

[read more]

Is the World Broken?

Gabriel Marcel was a famous 20th century existence-watcher. He kept circling back to conundrums which preoccupied him his entire life.

The first was how to explain the profound difference between a problem and a mystery. He says, for example, that a problem is something that you can surround, but a mystery is something that surrounds you. He also calls into doubt the ideology of scientism (the belief that science and the scientific method are the best or only way to render truth about the world and reality). According to scientism, the story of mankind since the rise of modern science, with people such as Galileo, is the transformation of all mysteries into problems. With the passage of time, those problems would be solved. However, when we look around us at such science-thinkers like Roger Penrose, Neil Turok and Carlo Rovelli, we find that science is becoming more mysterious and the mysteries are increasingly deep, as anyone who follows quantum mechanics can see.

For the second he kept asking, how it is that I both have a body but that I am a body? Think of the phrase “I am somebody” and notice the last word. The physical body cannot be disentangled from personhood.

In 1933, Marcel published the famous play, Le Monde cassé (French: The Broken World). Compare that to the previous article, “Why Is the World So Nightmarish?” discussing Céline’s 1932 Journey to the End of the Night (French: Voyage au bout de la nuit). Both of these works describe a human world which is completely adrift, disoriented and soulless.

As an existential thinker, Marcel always watched humanity and did a soul-audit. He was not particularly attentive to the other dimension of our earthly stay, namely political economy. In order to make up for this semi-absence, we bring in Gustav Stresemann, who gives us the lens for it. Stresemann died within weeks of the Wall Street crash of 1929.

A few days before his death, Stresemann, the leading German statesman of his time, gave a speech at the League of Nations. In this, he gave an update on the German economic situation of the moment. He stated that the numbers were superficially encouraging, but that Germany, under the surface, was “dancing on a volcano.”

The concept of a country or indeed the whole world in these straits is very profound. It tells us that as people like Céline and Marcel warn us, the world is potentially broken at all moments because the people do not even have a concept of self-possession. Furthermore, the cracks underneath the foundation of the world economy indicate a dangerous fragility at all times. In this larger sense, Marcel’s concept of the broken world combined with Stresemann’s dancing on a volcano, allow us to glimpse an instability that current education does not cover.

Why Is the World So Nightmarish?

The phrase, “La Belle Époque” (French: “The Beautiful Era”) refers to the atmosphere in Europe and especially France, the high point of which lasted from 1900 to 1914, with the outbreak of World War I. The whole era was characterized by the phrase, “la douceur de la vie” (French: “the sweetness of life”). People of the time would say that if you weren’t alive then, they could not communicate how charming life was at the time.

The sinking of the Titanic in April, 1912 is the symbolic catastrophe that heralded the end of the era. Anyone who watched Downton Abbey would perhaps remember the opening scene, which depicts the newspaper announcing it with a screaming headline.

The great masterpiece, Journey to the End of the Night (French: Voyage au bout de la nuit, 1932), describes the whole world around World War I as a nightmarish battlefield of previously unseen scope. Céline’s protagonist, Ferdinand, travels the world, from battles in Europe to Africa, then to New York and Detroit’s Ford assembly line before returning to France, finding that the nightmare is global and inescapable.

Céline died within 24 hours of Ernest Hemingway. Hemingway is famous for the quote from The Sun Also Rises (set in the 1920s), “The world breaks everyone and afterward many are strong at the broken places. But those that will not break it kills.”

The question is how could we ever explain complete evaporation of the sweetness of life and transformation into such a nightmare, culminating into the world of today.

Lastly, think of the point made in Sebastian Haffner’s The Meaning of Hitler, how Hitler fit into this nightmarization of the world. Haffner writes:

It is impossible for a serious historian to maintain that without Hitler world history in the twentieth century would have taken the course it has taken. It is by no means certain that without Hitler a second world war would even have taken place; it is quite certain that if it had taken place it would have taken a different course — possibly even with different alliances, fronts and outcomes. Today’s world, whether we like it or not, is the work of Hitler. Without Hitler there would have been no partition of Germany and Europe; without Hitler there would be no Americans and no Russians in Berlin; without Hitler there would be no Israel; without Hitler there would be no de-colonization, at least not such a rapid one; there would be no Asian, Arab or Black African emancipation, and no diminution of European preeminence. Or, more accurately, there would be none of this without Hitler’s mistakes. He certainly did not want any of it.

(The Meaning of Hitler, Harvard University Press, 1979, page 100)

No-one has yet captured how the nightmarish feeling of 2025 is itself downstream from the preceding era.

Kierkegaard and Existence

There are various striking intuitions about human existence. For example, in his brilliant memoirs, Speak, Memory, Nabokov begins with the deep reflection where human existence is compared to a baby in a cradle, rocking, completely vulnerable and uncertain. All of this is bracketed by two episodes of infinite darkness. The first episode took place before you were born and the second takes place after you’re gone. Your existence is a temporary flame, like that of a lit match.

A MetaIntelligent comment on this would be that the profound ingenuity of the 19th century mathematicians analyzing the size and nature of infinity (e.g., Richard Dedekind or Georg Cantor) cannot in the last analysis wrestle down human existence into mathematics.

The modern progenitor of this kind of human existence-watching is the Danish genius Søren Kierkegaard. In one of his masterpieces, Concluding Unscientific Postscript to Philosophical Fragments (1846), he makes the claim that knowledge, theory, speculative thinking and infinity-watching à la Dedekind and Cantor, cannot possibly explain human existence, because it subsumes all of these.

In 2025, this would mean that the Kierkegaard sense of things would tell you that neuroscience can never really explain how existence is sensed by a living person.

Kierkegaard writes, “in my view the misfortune of the age was precisely that it had too much knowledge, had forgotten what existence means, and what inwardness signifies.” He continues, “for a knowledge-seeker, when he has finished studying China he can take up Persia; when he has studied French he can begin Italian; and then go on to astronomy, the veterinary sciences, and so forth, and always be sure of a reputation as a tremendous fellow.”

By way of contrast, “inwardness in love does not consist in consummating seven marriages with Danish maidens, then cutting loose on the French, the Italian, and so forth, but consists in loving one and the same woman, and yet being constantly renewed in the same love, making it always new in the luxuriant flowering of the mood.” (Concluding Unscientific Postscript to Philosophical Fragments, page 232.)

Kierkegaard’s kind of existence-watching can be understood as a turning-upside-down of the famous phrase from Descartes, “I think, therefore I am.” For Kierkegaard, “I am, therefore I think.” Notice that “I think” is an epistemological statement or knowledge-watching. “I am” is an ontological statement.

This existentialist tradition of putting ontology before epistemology finds its culmination in Heidegger. As he says in his opus, Being and Time (1927), “human being is ultimately the being for whom being itself is an issue.”