⌛️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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🧵Some thoughts re inflation.
Not the data today, but two deep issues we should prob spend more time thinking about. 1. While economists and policymakers may have convinced themselves that the cost of living squeeze is over, for millions of households, it doesn't feel that way.
The key thing to remember here is that when economists talk about inflation what they're really talking about is the ANNUAL RATE at which a basket of goods and services changes price. And certainly, that rate is much lower than the 2022 peaks...
But, as I say, what that number is is simply looking at the difference in the LEVEL of prices over the past year. This chart is that level. (The actual consumer price index!).
And yes, look over the year to May and it's up 3.4%.
🧵Why, barely 24 hours after the Spending Review, is everyone already going on about tax rises?
Are they REALLY coming?
Or is this an "incoherent argument", as one leading minister calls it?
Well here's a thread explaining what's really going on here.
Bear with me...
First things first.
Key thing to remember is that the main job of HMT is to generate enough money, mostly via taxes (left hand bar here), to finance all its spending (right hand bar).
If that left hand bar isn't high enough, we have to borrow to fill the gap.
That's the deficit!
This week's Spending Review was about the right hand column, obvs. But not ALL of the column.
Actually more than half of govt spending is on stuff that WASN'T covered by the spending review - on benefits, debt interest, pensions etc. It's called "annually managed expenditure"
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You may recall a spate of stories a few years ago about appalling working conditions & abysmally low pay in Leicester's clothes factories.
The hope was those stories would shame businesses into improving working conditions.
But here's what ACTUALLY happened next...
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Instead of staying in Leicester, most brands abandoned it & shifted production to N Africa & S Asia.
Today Britain's biggest centre of textile & apparel manufacture is battling the threat of extinction.
It's a mostly untold economic story we've spent recent months documenting
Once upon a time Leicester was the beating heart of UK clothes manufacturing.
The city was dotted with factories making clothes for big name brands.
Now, according to one estimate, the number of clothes factories has dropped from 1500 in 2017 to under 100 this year. A 95% fall.
How big a deal is the new trade agreement unveiled between the US and the UK? Here are some initial thoughts.
Start with this: this is total UK exports to the US over the past 5yrs: £273bn. Right now most of this will face a 10% tariff. Some things (eg cars) face 25% extra
Let's break down that total. The biggest chunk is cars. Just under £30bn. That's covered under the agreement. So too are steel/aluminium exports. Much smaller at £2.7bn...
These sectors will benefit from special deals (though much of the detail still remains vague).
Rolls Royce will apparently get tariff free access for its jet engines. That mostly helps Boeing, but also Rolls Royce. Jet engines comprise a surprisingly large chunk of UK exports to the US, about £17.3bn. So let's shade that red too...
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The Chinese owners of British Steel say they are now considering shutting their blast furnaces and end steelmaking at Scunthorpe in early June - only a few months away.
It would mean an end of virgin steelmaking in the country that invented it during the industrial revolution
British Steel say the main question now is timing: whether the operations will close in June, in September or later.
It says tariffs are one of the reasons the blast furnaces are "no longer financially sustainable".
Press release 👇
The news means @jreynoldsMP faces two interlocking crises in the coming months: 1. The imposition of US tariffs on an ever growing segment of British exports 2. The end of virgin steelmaking (the UK would be the first G7 country to face this watershed moment).
This is big stuff
Donald Trump just announced 25% tariffs on anyone importing oil from Venezuela.
This is odd.
Because the country importing the most crude from Venezuela is... the US.
Capital Economics chart of Ven oil exports by Capital Economics via @rbrtrmstrng
But it raises a bigger point
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Why does the US import so much oil from Venezuela?
Mainly for the same reason it imports so much oil from Canada.
And no it's not just because they're close.
It's because most US refineries are set up to refine the kind of oil they have in Venezuela and Canada.
To understand this it helps to recall that crude oil is actually a broad term. There are LOTS of different varieties of crude - a function of the geology of where the oil formed and the organic ingredients that went into it millions of years ago.
It's called "crude" for a reason