Welcome to The WC, a selection of five useful and interesting things shorn from my smooth brain and dropped into your inbox every Weds.
Trying something new at the end today…
Wyatt
Table of Contents
China is digging a deep hole
China is digging a hole for itself. An 11km (nearly 7 mi) hole that will penetrate through ten layers of the earth’s crust and allow their scientists to study rocks 145m years old.
The drilling of China's first borehole over 10,000 meters deep for scientific exploration began on Tuesday in NW China's Tarim Basin, a great feat in China's deep-Earth exploration. The project is expected to be completed in 457 days. pic.twitter.com/Qs7Sn9cZus
— People's Daily, China (@PDChina) May 30, 2023
Most of the noise they’re making is to do with the scientific merits of the project, but I suspect it’s more to do with the search for rare earth metals — the ones that power the exploding electric vehicle industry.
While this hole — which will take precisely 457 days to dig — will be very deep, it won’t be the deepest manmade hole ever.
That honour belongs to the Kola Superdeep Borehole in Russia, which was carved out during the Cold War. The Soviets made it 12km down before abandoning the project and welding it shut — the temperature in the hole was over 500 degrees Fahrenheit, and the tools kept melting.
Russia’s hole was dug in response to the America’s Project Mohole, which only made it a few hundred meters before the initiative was abandoned. Sounds like they had a lovely time, though:
In the late 1950s, the wonderfully named American Miscellaneous Society came up with the first serious plan to drill down to the mantle. The society-turned-drinking-club was an informal group made up of the leading lights of the US scientific community.
Germany had a go in the late 1980s and early 1990s but gave up when reunification took priority.
Digging very deep holes takes very deep pockets.
Back to China…this hole is part of president Xi’s four-pronged national security strategy outline in 2021: “deep Earth, deep sea, deep blue (meaning information technology), and deep space.”
I’ll check in again in 457 days to see how they’ve got on.
Dig deeper into alternate Cold Wars:
- Read about the hole-digging Cold War Space Race
- China is cementing its position as an Arctic superpower through Russia
- Listen to what it sounds like five miles deep
Saudi Arabia presses ahead
Three weeks ago I said Saudi Arabia will continue to press ahead in its bid for international recognition and legitimacy.
And so it continues.
Just this week, the Kingdom added three more notches to its bedpost.
First, it bought the PGA. Through Saudi-owned LIV’s merger with the Professional Golfers’ Association, the Kingdom is now the only outside investor in the only remaining professional golfing league.
Second, the Kingdom’s Public Investment Fund acquired the four winningest football clubs in the Saudi Pro League (SPL).
As part of today’s announcement of the Sports Clubs Investment and Privatization Project, four Saudi clubs – Al Ittihad, Al Ahli, Al Nassr, and Al Hilal – have been transformed into companies, each of which is owned by #PIF and non-profit foundations for each club. pic.twitter.com/TNZcbIniUE
— Public Investment Fund (@PIF_en) June 5, 2023
Those four teams have won the sixteen-team league 23 times in the last 25 years. Based on recent years, the league wasn’t very competitive before, but this will further skew the competition.
Third, and related, Real Madrid star Karim Benzema signed for reigning SPL champions Al Ittihad.
Feels like a significant moment in football. The PIF of the Saudi Arabian state financing the nation's four biggest clubs. Will distort football's ecosystem. Ronaldo signed. Benzema coming. Messi one of a dozen summer targets. Record wages funded. Welcome to LIV football. https://t.co/SMtgjCF23Z
— Colin Millar (@Millar_Colin) June 5, 2023
Seven more stars — including all-time great Leo Messi — are on the Kingdom’s radar this summer.
In addition to locking in high-profile spokesmen ahead of the 2030 World Cup bid, the ambition here feels bigger than domestic dominance, though. Because regardless of how many ageing stars Saudi Arabia can lure to the SPL, no one’s going to watch the matches. The Chinese Super League tried this several years ago, and the players languished in their well-paid obscurity.
Unless…
UEFA holds the world’s biggest international football competition — The Champion’s League.
If I’m Saudi Arabia, maybe I can convince UEFA to let me join. Nearby Israel, Turkey, and Cyprus are members. Why not me?
That would give the four privatised clubs — and the stars the PIF is luring in — a massive global stage.
All in service of the Kingdom’s larger ambition for legitimacy.
Living the good life
And now for something completely different.
Every so often, The FT curates the most egregious perks companies offer the C-Suite. Here are a few recent highlights:
- The CEO who was paid $2.2 million in relocation expenses.
- The $4.4 million in private air travel Sheryl Sandberg racked up before she left Meta. Zuck used half that.
- Rush Co spent $100k hosting its CEO at the company ranch.
- LiveNation spends $600k on the CEO’s personal security and another $585k on his private air travel. But more interestingly, the company’s general counsel and CFO were comped over $80k worth of event tickets.
I only got one Alts.co hoodie, and it’s got a spaghetti stain.
What’s rising faster than sea levels? Flood insurance prices.
Do you own a home in either/both Florida or California?
Because of the increased risk of flooding and wildfires, respectively, you’re probably struggling to insure it at a reasonable price all.
Hey #caleg, California's insurance market has a severe and growing crisis.
— Russell Lowery (@RussellLowery10) May 1, 2023
This little thread reflects what I think is going on.
Between the increasing number of catastrophes and rising cost to rebuild structures, many insurers are pulling out of those markets entirely.
California has tried to cap price rises and overall costs, but that’s just led to insurance companies refusing to operate in the state. In Florida, where there’s no cap, home insurance costs are up 57% since 2015 and are nearly triple the national average.
Businesses are struggling too. If a restaurant, winery, or tire change shop can’t afford to insure the building anymore, the doors shut and jobs go away.
So what’s worse? Having no insurance or not being able to afford the insurance available?
Solar power in the dark
The problem with solar energy is that it stops working when it’s nighttime. Or it’s cloudy. But you know where it’s never cloudy? Or nighttime? Outer space.
The nerds at Caltech have figured out how to collect solar energy in outer space and send it to earth as a microwave beam.
And they’ve done it in a cheap, robust, and efficient way.
It’s early days, but if this thing can scale with the help of ever cheaper rocket launch tech, we may be able to launch constellations of solar-collecting satellites into outer space and them send solar power anywhere in the world as easily as we do satellite TV signals.
And hopefully attach receivers to some ill-tempered sea bass.
Bonus Section!
Trying something new this week. If people find it helpful, I’ll continue. If not, I’ll crush it faster than insomnia has crushed my soul.
What I’m reading
Market Briefs — daily financial news that makes writing Alts Cafe easier.
What I’m listening to
Rage Against the Machine — it’s one of those days.
What I’m learning about
Alternative fuels — this is the way.
That’s all for this week; I hope you enjoyed it.
Cheers,
Wyatt
Disclosures
- This issue was sponsored by Franshares and we get a couple bucks if you subscribe to Prequel or Market Briefs.
