⌛️THE WORLD'S MOST IMPORTANT SAND⌛️
This is the story of how we are all - all of us, human civilisation as we know it - TOTALLY dependent on a small town in rural America to keep the modern world turning.
It's the wild story of the world's purest, and most prized, sand
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There are LOADS of different types of sands. Sands used for construction, for glassmaking, for foundries, for purifying water etc etc.
But the type of sand we're interested is incredibly rare. It's called high purity quartz.
It's very unusual indeed
Here's what it looks like.
An incredibly white, fine sand which is 99.999% silica.
This is far, far purer than the sand you use to make glass.
It's the purest sand in the world.
And there's only one place in the world which mines it in significant quantity: Spruce Pine, NC
btw if you're looking at that sand👆wondering whether you've seen it before... you probably have!
Spruce Pine sand is what goes in the iconic sand traps at the Augusta National golf course where they play the Masters.
But that's just the start of it... https://t.co/APvj7syU9ngolfmonthly.com/tour/us-master…
Anyway, due to a geological freak, this small town in the Blue Ridge mountains of North Carolina is the only place in the world where this super-pure sand is mined at scale.
It is ALL mined by TWO companies - but most is controlled by a company called Sibelco
Sibelco are super publicity shy.
They NEVER do interviews. NEVER let anyone on site. There are stories about how they supposedly blindfold outside contractors coming to work on machinery at Spruce Pine. Why the secrecy?
Because this stuff is VERY important sibelco.com/materials/high…
You see, the key use for high purity quartz is to make crucibles used in the Czochralski process, which turns super-pure silicon into the quite literally PERFECT silicon from which we make silicon chips 👇
All the silicon in your device is made this way
When it comes to these crucibles in which the silicon in your computer chip is made, no other sand will do. It MUST be high purity quartz. Anything less pure will introduce impurities which would mean your computer chip wouldn't work.
Only Spruce Pine sand can be used
We all know these days how much semiconductors matter.
Without them we're back in the dark ages.
But you can't make silicon chips without silicon and you can't make that super pure silicon without these crucibles 👆and you can't make these crucibles without this very special sand
Perhaps you're starting to see the significance of this.
The chips in EVERY single computer & smartphone in the world only exist thanks to the sand from a SINGLE place. Spruce Pine.
It might be the single most important place on the planet.
And most people have never heard of it
In part this is because we rarely stop & ask: hang on, where does the stuff we rely on every day actually COME from?
It's a question I've tried to answer in my book #materialworld. This thread is one tiny fragment of hundreds of stories in there. lnk.to/MaterialWorld
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What does a trade war look like?
Much of what you've heard about tariffs is prob soundbites from politicians & economists.
But what does a trade war actually FEEL like at ground level?
We've spent the past year working on a film on just that.
Here's some highlights
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Best place to start is with this👇
It may look like a lump of metal but don't be fooled.
This is a die: a sort of mould used to shape plastics. Looks simple but it's super-engineered - designed to withstand enormous pressure.
Without dies like this there's no manufacturing...
Dies and moulds are the unsung champions in modern mass production.
One of the single most impressive things about Tesla's manufacturing processes is what @elonmusk calls the Gigapress: a massive machine that shapes metal. And at the heart of the gigapress are enormous dies.
The PM keeps repeating the figure £16bn in relation to the OBR's latest forecasts - giving the impression that this would have left a big hole in the public finances. What he fails to acknowledge is that that this is LITERALLY ONLY ONE PART OF THE STORY.
Here's why...
Yes: the OBR downgraded the fiscal numbers by £16bn (actually £15.6bn) due to weaker productivity (red bar below).
But it also simultaneously UPGRADED them by a whopping £32bn (blue bars).
This chart from @TheIFS shows it pretty clearly👇
Banging on about the £16bn productivity - as the PM did repeatedly in his press conference today - without also mentioning the £14bn inflation UPGRADE and the £17bn of other UPGRADES seems... pretty misleading to me.
It's simply NOT the full picture...
NEW
UK abolishes its "de minimis" rules which exclude cheap imports below £135 from paying tariffs.
A massive deal for the fast fashion/cheap Chinese imports sector: this is the so-called loophole used to great effect by SHEIN and Temu.
Should also bring in some tariff revenue
For more background on this, here's our investigation from earlier this year on de minimis and what it means in practice - including a glimpse inside the planes carrying these imports into the UK 👇
The flip side to this policy is:
a) stuff (yes, a lot of it is tat but even so) will get more expensive
b) it primarily hits lower income households
c) as you'll see from my thread, de minimis was a lifesaver for small regional airports. Its demise is v bad news for them...
NEW
"Data center alley" in North Virginia.
Home to the biggest cluster of server centres in the world.
Here, more than anywhere else, is the global epicentre of AI.
It's where the recent AWS outage happened.
And we've secured rare access INSIDE one of the data centres...
The inside of one of the centres, run by Digital Realty, one of the biggest datacenter companies in the world.
Extremely high security. Long, long corridors, flanked by rooms in which those servers are operating.
This is the very heart of the biggest economic story right now
And inside one of those rooms, here is one of the supercomputers powering the AI boom. This Nvidia DGX H100 is the physical infrastructure making AI a reality.
🚨EXCLUSIVE
The firm at the heart of Britain's critical minerals strategy has ditched plans for a rare earths refinery in the UK, and will build it in the US instead.
It's a serious blow to the Chancellor and her plans for "securonomics" ahead of next month's Budget👇
Not long ago Pensana was being hailed as key to Britain's industrial future.
It had plans to ship rare earth ores to the UK and refine them in a plant just outside Hull, creating 126 jobs and bringing in hundreds of millions of pounds of investment...
Its Saltend site was where the then Biz sec Kwasi Kwarteng launched the govt's official critical minerals strategy a few years ago, saying: "This incredible facility will be the only of its kind in Europe and will help secure the resilience of Britain's supplies into the future"
📽️Is Britain REALLY facing a 1970s-style fiscal crisis?
Why are investors so freaked out about UK debt?
Is this REALLY worse than under Liz Truss?
Who's to blame? Rachel Reeves? The Bank of England?
And would a bit of productivity really solve everything?
📈 Your 6 min primer👇
OK, so let's break it down.
Start with the chart everyone (well, everyone in Whitehall) is talking about.
The 30yr UK government bond yield. Up to the highest level since 1998. And it's still rising.
Does this mean the UK is facing a fiscal crisis? Let's look at the evidence
First let's compare the UK to other G7 countries.
There's two ways to do this.
First, look at absolute levels👇
And it looks pretty awkward for the UK.
Pre-mini Budget we were middle of the pack. That changed post-Truss. And now, under Labour, the UK is even more of an outlier.