Unveiling Hidden States
Unveiling Hidden States
3.12 | “A challenge in communication is getting others on board your train of thought as you see it, devoid of any other interpretations."
News and Numbers
Markets this Week:
S&P 500 is up 1%.
NASDAQ 100 is up 2%.
Bitcoin-USD is trading flat.
Ethereum-USD is up 1%.
Headlines from this Week:
The U.S. Federal Reserve raised interest rates by 25 basis points to between 5.25% - 5.50%
Former U.S. Intelligence Agent David Grusch testified under oath during the Congressional UFO hearing, confirming alien existence through UFo sightings and recovery of non-human aircraft with biological remains.
Finance
By Vlad Estoup, B.Comm. (Finance); working in Ethereum cybersecurity
Printing Money and Inflation: Decoding the Political Narratives
In recent months, there has been growing anticipation among certain sections of the population that the Federal Reserve would act swiftly to lower interest rates, with expectations of a return to the 3% benchmark from the current 5.25%. However, such assumptions may prove to be false, as the Fed faces daunting challenges stemming from last June's inflation reading, which was misleading due to a comparison with an unusually inflated period. This article aims to shed light on the reasons behind the Fed's cautious approach and the potential consequences for those who are eagerly awaiting a rate cut.
The Fed's Dilemma
The Federal Reserve is tasked with the delicate balancing act of managing economic growth while keeping inflation in check. Historically, one of the tools at their disposal has been adjusting the federal funds rate, which influences borrowing costs and spending patterns. Amid a period of rapid economic recovery, the Fed now faces a critical dilemma regarding interest rate policy.
Inflationary Mismatch
One of the primary reasons the Fed may be hesitant to lower rates this year is the mounting concern over inflation. Inflation rates, as measured by the Consumer Price Index (CPI), soared in June ‘22, painting a worrisome picture of soaring prices. As such the latest CPI reading was skewed by the fact that the previous June marked the worst inflation month in recent history. As a result, the year-on-year inflation readings appeared significantly lower than expected.
When an economic indicator experiences an unusually high or low value in the base period, subsequent year-over-year comparisons can be misleading.
Fed's Data-Driven Approach
Federal Reserve Chairman Jerome Powell has consistently emphasized the importance of a data-driven approach to monetary policy. The Fed will be cautious in interpreting inflation figures, considering the impact of the base effect. Instead of relying on a single data point, the Fed will likely monitor a series of indicators over several months to gauge the true trajectory of inflation.
Delayed Rate Cut Expectations
Given the complexity of economic indicators and uncertainties related to inflation, it is reasonable to expect that the Fed may delay rate cuts. While some people may suffer from the disappointment of not witnessing an immediate reduction in interest rates, it is essential to recognize the Fed's responsibility to make informed decisions for the overall health of the economy.
Longer Path to 3% Rates
Based on the Federal Reserve's cautious stance and the need for accurate inflation data, it is plausible that the path to a 3% benchmark rate could take longer than initially expected. Instead of a swift rate cut within this year, it may take another year and a half or more for the Fed to confidently implement such a change.
Consequences for Expectations
Individuals and businesses who had anticipated a rapid reduction in rates may face challenges in managing their finances and planning investments. Those who made decisions based on premature rate cut expectations may need to adjust their strategies to account for a longer period of elevated interest rates.
This is not financial advice and you should always do your own research before investing in any securities or cryptocurrencies.
Sci-Tech
By Keyann, Software Engineer in Web3
Superconductors
This week, a paper made waves on the internet, claiming it found a solution to ‘room-temperature superconductors’, a breakthrough that unlocks many new technological possibilities, but has evaded researchers for the last 100 years. I won’t dive into the paper or attempt to validate it, but this week’s article will serve as a little crash course to understand the problem and appreciate the gravity of what a solution like this presents.
Understanding the problem
Before we get into the basics, let’s get our knowledge of physics and chemistry up to speed.
Electricity is defined as a flow of electrons, which constitutes an electric current.
Conductors are materials that allow the flow of electric current, typically by facilitating the movement of electrons through them. By contrast, insulators do not allow the flow of electrons. As a result, different materials vary in conductivity, making it a property of all materials.
Voltage is the amount of current flowing. The formula for which is: V = I * R, where voltage (V) is the product of electric current (I) and resistance (R).
When you run a current through a coil, you generate a magnetic field. This phenomena is a fundamental principle of electromagnetism.
Traditional electricity transmission using conventional conductors like copper or aluminum wires is inefficient due to the presence of electrical resistance in the conductors. When electricity flows through these materials, some of the electrical energy is converted into heat as a result of resistance. This energy loss is known as Joule heating and leads to a decrease in overall efficiency during transmission.
Superconductors, on the other hand, can conduct electricity without any resistance. This means there is virtually no energy loss during transmission, and the electricity can travel long distances without significant degradation. As a result, superconductors have the potential to make electricity transmission much more efficient and reduce the need for constant energy input to compensate for losses. This makes equations like V = I * R irrelevant for these materials.
However, up until now, the only conditions under which we’ve been able to harness superconductivity has been at temperatures of absolute zero (-273 degrees C), and there hasn’t been any success in achieving room temperature superconductivity.
Applications in Energy Transmission and Storage:
Superconductors (in general):
Energy Transmission: Room temperature superconductors could significantly improve the efficiency of electrical power transmission. With zero resistance, less energy would be lost during electricity transmission, reducing the need for costly and energy-consuming cooling systems in power grids.
Energy Storage: These superconductors can enhance energy storage technologies, enabling the creation of more efficient and powerful energy storage devices like superconducting batteries.
As mentioned before, running electricity through a coil generates a magnetic field. When superconducting materials are used to make the coil, the electrical resistance becomes zero, allowing the coil to carry the current without any energy loss due to resistance. This means the superconducting electromagnet can generate a strong magnetic field with minimal power consumption, making it highly efficient.
The combination of superconductors and electromagnets has several other practical applications:
Transportation: Room temperature superconductors can revolutionize transportation systems, such as magnetic levitation (Maglev) trains. Maglev trains using superconducting materials can achieve high speeds with minimal energy consumption.
Medical Imaging: Superconductors can enhance medical imaging technologies like MRI machines, leading to higher resolution and faster imaging.
Electronics: Room temperature superconductors could pave the way for more advanced and efficient electronic devices, reducing energy consumption and improving overall performance.
Nuclear Fusion: Superconductors play a crucial role in magnetic confinement fusion devices, enhancing plasma confinement and increasing fusion reaction efficiency. Their ability to generate stronger magnetic fields brings us closer to achieving controlled nuclear fusion for clean energy production.
Paradigm Shift
By Roman Kuittinen-Dhaoui, BBA, CPHR Candidate; working in Human Resources
EQ > IQ
Emotional intelligence (previously EQ, now EI) is defined as the ability to understand and manage your own emotions, as well as recognize and influence the emotions of those around you.
In 1998, psychologist Daniel Goleman wrote an article in the Harvard Business Review (HBR) titled “What Makes a Leader” in which he states unequivocally:
“The most effective leaders are all alike in one crucial way: they all have a high degree of what has come to be known as emotional intelligence. It’s not that IQ and technical skills are irrelevant. They do matter, but…they are the entry-level requirements for executive positions. My research, along with other recent studies, clearly shows that emotional intelligence is the sine qua non of leadership. Without it, a person can have the best training in the world, an incisive, analytical mind, and an endless supply of smart ideas, but he still won’t make a great leader.”
Emotional intelligence is typically broken down into four core competencies:
Self-awareness (i.e., ability to not only understand your strengths and weaknesses, but to recognize your emotions and the effect they have on you and your team’s performance.)
Self-management (i.e.,ability to manage your emotions, particularly in stressful situations, and maintain a positive outlook despite setbacks)
Social awareness (i.e., ability to recognize others’ emotions and the dynamics in play within your organization).
Relationship management (i.e., ability to influence, coach, and mentor others, and resolve conflict effectively.)
Emotional intelligence (EI) is considered by many to be more important than IQ (intelligence quotient) in various contexts, particularly when it comes to personal and social success, effective leadership, and overall well-being. Several reasons support this perspective:
Mental and emotional well-being: Emotional intelligence is closely linked to overall mental and emotional well-being. People with high emotional intelligence tend to experience lower levels of stress, anxiety, and depression, as they can manage their emotions and develop healthier coping mechanisms. In contrast, a high IQ does not necessarily equate to emotional well-being.
Leadership and influence: Leaders with high emotional intelligence are generally more adept at motivating and inspiring their teams. They can handle stress, remain calm in challenging situations, and respond with empathy and understanding. This fosters trust and loyalty among team members, which can significantly impact a group's productivity and success.
Adaptability and resilience: Emotional intelligence helps individuals cope with change and adversity more effectively. By understanding their emotions and those of others, they can develop coping mechanisms, maintain a positive attitude, and bounce back from setbacks. This adaptability and resilience can be more crucial in navigating life's challenges than a high IQ alone.
Success in interpersonal relationships: Emotional intelligence involves understanding and managing one's emotions and being empathetic towards others' feelings. This skill is crucial for building strong interpersonal connections, resolving conflicts, and collaborating effectively with others. In contrast, having a high IQ may not necessarily guarantee success in navigating complex social interactions.
Decision-making and problem-solving: Emotional intelligence contributes to better decision-making and problem-solving skills. Being in touch with one's emotions and understanding others' perspectives can lead to more balanced and thoughtful choices, particularly in situations that involve human interactions and complex social dynamics.
TLDR: While IQ is undoubtedly valuable in certain areas, emotional intelligence complements and enhances intellectual abilities, making it a key factor in personal and professional success and overall well-being. The ability to understand, express, and manage emotions both within oneself and in others fosters healthier relationships, effective communication, and better decision-making, all of which are essential in various aspects of life.
(Head)Space
Being ‘Self-Absorbed’ and The Art of Communication
In our daily lives, we often find ourselves absorbed. This absorption isn't just a physical engagement but a merging of our perception and whatever holds our attention. The "self" as we know it, isn't strictly limited to our persona or our direct experiences. Instead, it extends to our perception – the very lens through which we view and process the world.
Surprisingly, this self-absorption isn't always about being engrossed in our own life. Sometimes, we're so consumed by a situation, our day-to-day, or by someone else's life, that we inadvertently make it a part of our ‘self’. Even when we’re deeply involved in an argument with someone, while it might seem we're focused on them, we’re often anchored to our perspective of the situation.
Language, for all its beauty and nuance, falls short in communicating these intricate emotions. When we express ourselves, our words traverse through multiple factors and layers of interpretation. A simple sentence can bear a multitude of meanings, and the intent might often get "lost in translation." The challenge is, there exists a realm above what is being said - an elusive sphere that's beyond the grasp of spoken or written language.
Lower states of consciousness tether us, making us naturally self-absorbed. As we ascend to higher states, we find the ability to detach our thinking from this 'self'. Here, 'self' doesn't mean our job, or day-to-day activities. It's also our experience, such as the subtle things we become desensitized to or take for granted. Like seeing friends regularly but not truly observing the passage of time or the evolving depths of relationships.
An experience on the ethereal planes of consciousness can sometimes leave us struggling to find the right words. The challenge is not just to communicate, but to let others on board our train of thought, helping them see our perspective devoid of their interpretations. The art of writing, and by extension, communication, is to achieve this very objective.
We often use the term 'see' when describing thoughts, but it's not a visual process; we observe our thoughts, not with our eyes but our minds. This simultaneous act of thinking and reflecting is reminiscent of the duality portrayed in Hinduism, like the relationship between prince Arjuna and Krishna. It's the intricate dance of thoughts and meta-thoughts.
Consider a word as simple as 'familiar'. It's a simple adjective, but its depths can be immense. Does familiar mean something recognized by everyone, or is it personal? Is it newly familiar or has it been that way due to one's culture, habits, or background? In english, and many other languages, we tend to conjugate verbs but not conjugate adjectives, leaving a lot of space for ambiguity due to these possible misinterpretations. This is one instance of how the structure of languages may arguably fall short of our ability to communicate and describe our train of thought.
In essence, communication is an art – a pursuit to bridge the gap between thought and expression. To truly communicate is to let others 'see' your thoughts cognitively, just as you do, navigating the complex tapestry of human perception.
Company of the Week
Infura
Infura is a web service that provides access to Ethereum and other blockchain networks. It acts as an infrastructure-as-a-service (IaaS) provider for blockchain applications.
Blockchain networks, such as Ethereum, are decentralized systems where nodes maintain the network and process transactions. Running a node requires significant computational resources, storage, and bandwidth, which can be challenging for individual developers or smaller organizations.
Infura offers a solution by hosting and maintaining multiple Ethereum nodes and other blockchain nodes on their infrastructure. Developers can then connect to Infura's nodes through API endpoints, allowing them to interact with the blockchain networks without having to run their own nodes. This service simplifies the development process and reduces the barrier to entry for building decentralized applications (dApps).
Written by: Vlad Estoup, Keyann Al-Kheder, and Roman Kuittinen-Dhaoui