[HN Gopher] Ukraine is a major producer of neon gas, critical fo...
       ___________________________________________________________________
        
       Ukraine is a major producer of neon gas, critical for lasers used
       in chipmaking
        
       Author : swores
       Score  : 617 points
       Date   : 2022-02-24 17:22 UTC (5 hours ago)
        
 (HTM) web link (www.reuters.com)
 (TXT) w3m dump (www.reuters.com)
        
       | YaBomm wrote:
        
       | angryGhost wrote:
       | who else said yesterday they would quit the news?
       | 
       | https://news.ycombinator.com/item?id=30430041
        
         | speg wrote:
         | I've got my head in the sand. Good thing I stopped checking my
         | investments too.
         | 
         | I'll let you guys on HN let me know when things are good again
         | :)
        
       | darkhorn wrote:
       | Some Russian products that you would like to avoid:
       | 
       | * Yandex * Lukoil * WinRAR * Kaspersky * Lada * Russian Standard
       | Original Vodka * Stoli Vodka * Baltika * Lukoil * Gazprom * Kamaz
       | * Masha and the Bear * Kalashnikov * Stolichnaya * Ural
       | motorcycles * VK
        
         | mrweasel wrote:
         | WinRAR/rarlabs is a German company.
        
           | darkhorn wrote:
           | The developer and his brother are from Russia. Also WinRAR is
           | free in Russia.
        
         | stjohnswarts wrote:
         | Yandex was the only one for me. I blocked it on all the hosts
         | files under my control and my pihole network dns
        
       | g45ylkjlk45y wrote:
        
       | perihelions wrote:
       | How is neon extracted and why does one country have a 90%
       | monopoly (in this specific grade)?
       | 
       | edit: Found this C&EN story from 2016 that adds context:
       | 
       | - _" Chip makers, which account for more than 90% of global neon
       | consumption, are already experiencing high prices and some
       | shortages stemming from the Russian conflict with Ukraine, Shon-
       | Roy says. The war, which started in 2014, interrupted global
       | supplies of the gas, about 70% of which comes from Iceblick, a
       | firm based in the Ukrainian city of Odessa."_
       | 
       | - _" Iceblick gathers and purifies neon from large cryogenic air
       | separation units that supply oxygen and nitrogen to steelmakers.
       | Most of the air separation units equipped to capture neon, which
       | makes up only 18.2 ppm of the atmosphere by volume, are in
       | Eastern Europe."_
       | 
       | https://pubs.acs.org/doi/10.1021/cen-09410-notw7
       | 
       | This is puzzling to me, because I don't get why _air separation_
       | should naturally concentrate in exactly one place. It 's not tied
       | to a rare and localized geologic formation, like helium sort-of
       | is.
       | 
       | Also there's cryogenic air separation plants all over the planet,
       | why don't they do neon too? (Asking in the spirit of curiosity)
       | 
       | edit #2: I've just found something that offers a possible
       | explanation and it's _far_ more interesting than I expected:
       | 
       | - _" Neon was regarded as a strategic resource in the former
       | Soviet Union, because it was believed to be required for the
       | intended production of laser weapons for missile and satellite
       | defence purposes in the 1980s. Accordingly, all major air
       | separation units in the Soviet Union were equipped with neon, but
       | also krypton and xenon, enrichment facilities or, in some cases,
       | purification plants (cf. Sections 5.4 and 5.5). The domestic
       | Soviet supply of neon was extremely large but demand low."_
       | 
       | https://www.deutsche-rohstoffagentur.de/DE/Gemeinsames/Produ...
       | (chapter 5.2)
        
         | staplers wrote:
         | As with chip making, it can be done anywhere but the tools and
         | factories setup to mass produce are concentrated in certain
         | areas. That's just how industry works sometimes.
         | 
         | It takes time to setup new supply chains for mass production.
        
           | jagger27 wrote:
           | We're seeing this with lithium. Canada and the US have
           | significant amounts in the ground but the mining and refining
           | infra simply isn't there.
           | 
           | Neon distillation does seem much simpler and cleaner, from my
           | layman perspective.
        
             | roughly wrote:
             | Mining (and refining) especially tends to come with some
             | nasty environmental effects that we've been quite happy to
             | outsource to other parts of the world with less empowered
             | citizenry (and often cheaper labor).
             | 
             | Rare-earth elements are the same way - they're relatively
             | abundant, but China is enormously over-represented in the
             | market because the west doesn't like mining and China
             | doesn't care.
        
               | martyvis wrote:
               | Not just lithium. This program aired on the Aussie ABC
               | last night on the terrible way Cobalt mining is being
               | done in Congo and the total dystopia that has been
               | allowed to occur. https://youtu.be/_V3bIzNX4co
        
               | daniel-cussen wrote:
               | Lithium mining is not that nasty. And Tesla for one wants
               | to make it even less toxic. Besides there's just not that
               | much life on the salt flat, yeah flamingos great, and the
               | brine shrimp they eat, but come on. That's one of the
               | meaningful defenses for mining in the Atacama, there's
               | very little life to harm. Much better than mining in the
               | middle of the Amazon, making four species endemic to the
               | orefield extinct, don't you think?
        
             | AlanYx wrote:
             | Lithium is a great example. Canada used to be one of the
             | major lithium producers in the 1950s and still has huge
             | deposits, but output has fallen dramatically over the years
             | and actually declined to zero in 2020.
        
         | adrian_b wrote:
         | Obviously the monopoly was due to the fact that they were able
         | to sell it at the cheapest price for the required purity.
         | 
         | There should be no significant problems to create production
         | capacities in other places, but then the price would become
         | higher and, more importantly, a few months or even years might
         | be needed until the neon production would be increased enough
         | to compensate for a sudden loss of the source from Ukraine.
        
         | saba2008 wrote:
         | It can be also tied to bespoke equipment, hard-to-transfer
         | expertise and experience. If consumption grows relatively slow,
         | it makes sense to expand single installation, rather than
         | duplicate it with 'copy exactly (which might take too long to
         | pay off).
        
         | Supermancho wrote:
         | > How is neon extracted and why does one country have a 90%
         | monopoly
         | 
         | Many "monopolies" around the world are market capture due to
         | being sunk cost low price leaders.
        
         | nbernard wrote:
         | As I understand it, it could be that air separation occurs
         | elsewhere, at different places, and that only purification to
         | extract semiconductor-grade neon is done by Iceblick in Odessa.
        
         | baybal2 wrote:
         | > How is neon extracted and why does one country have a 90%
         | monopoly (in this specific grade)?
         | 
         | " _Specific grade_ " - you need very, very, very high purity
         | gasses for lasers.
         | 
         | Noble gasses are very, very, very hard to purify because they
         | are chemically inert.
         | 
         | Welding gas (argon) is dirt cheap, 99.99% pure argon is
         | surprisingly expensive, and semiconductor grade Argon, or Neon
         | at 99.99999%+ purity far more.
         | 
         | Ultrapure neon is a great example of a single source critical
         | input for the semiconductor industry. There are hundreds of
         | similar small companies around the world supplying something
         | completely irreplaceable.
         | 
         | Semiconductor industry is extremely fragile.
        
         | roughly wrote:
         | Scale and geographic concentration tend to push prices lower,
         | even if just fractionally, and relatively low costs of
         | transport for basically anything in the world mean there's no
         | penalty for buying from far away, so there aren't many factors
         | pushing back from geographic concentration. Add to that
         | concentration in other industries - a market with fewer larger
         | buyers means larger average individual demand than otherwise,
         | which pushes towards larger or more concentrated suppliers.
         | 
         | Loosely, there's a lot of economic push towards concentration,
         | and not a lot pushing against it. Geopolitics usually operates
         | on a slower scale than market pressures, which means we get
         | weird things like a vested interest in Ukrainian national
         | security due to it being the only country bothering to
         | manufacture neon in the world.
        
           | ajross wrote:
           | > Scale and geographic concentration tend to push prices
           | lower
           | 
           | Neon is extracted from the atmosphere. There is no geographic
           | concentration to exploit (well, I guess technically
           | Antarctica is coldest and so has a volumetric advantage). If
           | Ukraine had the bulk of the supply it's simply because
           | someone decided to invest in a bunch of manufacturing
           | infrastructure there.
        
             | roughly wrote:
             | I didn't mean geographic concentration of the resource
             | (although that can be a factor) - geographic concentration
             | of firms can often have a knock-on effect on both
             | infrastructure and other supporting resources (a dock that
             | can support exporting neon, neon-extraction-machine repair
             | & service companies nearby, concentrated local expertise,
             | etc).
        
         | daniel-cussen wrote:
         | It's funny I was talking to precisely a steelmaker about
         | imports and exporters some time ago: "The American is no
         | patriot, if steel is 30% cheaper in Japan, he will buy it there
         | rather than at home." It looks like, in fact, these Ukranians,
         | also in the steel industry, might actually be doing something
         | patriotic--like people all over the world, America too--and
         | keep the surely very tricky and specific technology to
         | themselves.
         | 
         | It's not unlike German "hidden champions", companies that
         | figured out a niche safe from industrial espionage, usually
         | something involving very precise know-how regarding something
         | analog, and nobody can do it like they can. German hidden
         | champions are generally family-owned, rather than public
         | companies, and prefer it that way; they stay in Germany
         | typically; and there are 300 of them by some reasonable
         | reckoning. They make the critical thing that goes in the thing
         | that goes in the thing.
         | 
         | Taiwan does something similar--they see their chip industry,
         | which is also very dependent on human know-how and highly
         | analog, high precision--as a patriotic endeavor that protects
         | their sovereignty economically and geopolitically.
         | 
         | So, apparently the reason neon comes from Ukraine is some
         | pretty smart Ukrainians wanted it that way, for the good of
         | Ukraine, and specifically for Ukrainian sovereignty to matter
         | to the rest of the world.
        
         | [deleted]
        
         | Jiro wrote:
         | Neon is not the main reason they are doing it. It's a byproduct
         | that gives them a little extra profit once they've distilled
         | the air anyway for other reasons. Distilling the air _just_ to
         | get neon wouldn 't be profitable.
        
           | AnimalMuppet wrote:
           | No. But if you're Air Liquide or somebody in the US, and
           | you're distilling the air _anyway_ , adding the capability to
           | extract the neon might make sense.
        
             | lazide wrote:
             | Only if the soviets hadn't already spent until billions
             | adding the capacity to overproduce it due to a perceived
             | national security need that didn't pan out.
             | 
             | It's essentially free for the company to do this since the
             | gov't already sunk the cost decades ago.
             | 
             | No one has done that for Air liquide, at least not yet.
        
         | tempnow987 wrote:
         | I think it might be tied to steelmaking? Ie, if you are already
         | doing work to generate oxy and nitrogen, getting a byproduct
         | like neon is easier?
         | 
         | So CAN the USA separate air? For sure. Maybe it's just cheaper.
         | A lot of these stories about disruptions are disruptions of the
         | CHEAP option.
        
           | belorn wrote:
           | It not really a byproduct per say of oxygen and nitrogen, but
           | the byproduct of that process has a higher amount of neon
           | than air by about 99 times. Still, the gas that we got is
           | about 93% argon, and then you got to remove the carbon
           | dioxide, but then its mostly neon left I think.
        
         | [deleted]
        
       | phkahler wrote:
       | Time to move on to free electron lasers powered by compact
       | accelerators.
        
       | blobbers wrote:
       | While the trade implications of this war are being consider,
       | let's think of the lives of our fellow hackers. These are people
       | who along side us develop the software of the world.
       | 
       | They're not necessarily soldiers, they're just regular people and
       | right now there are missiles flying at their homes, tanks in
       | their streets.
       | 
       | Surely there is a way we can help the people.
        
         | k0k0r0 wrote:
         | Yeah, anyone an idea? There is outages of the internet and
         | mobile communications in some areas? For example is there
         | anything one can do forom here about that?
        
       | pier25 wrote:
       | We should be talking about grain, not gas.
       | 
       | Russia is the biggest exporter of wheat in the world with 18%.
       | Ukraine accounts for 7% of the world's wheat.
       | 
       | https://www.aljazeera.com/news/2022/2/17/infographic-russia-...
       | 
       | This conflict will affect 1/4 of the world's wheat which will
       | affect food prices.
       | 
       | In 2010 Russia stopped exporting wheat due to wildfires burning
       | their fields (most likely caused by climate change). This caused
       | a hike in food prices which helped trigger the Arab revolutions
       | in 2011.
       | 
       | https://en.wikipedia.org/wiki/2010_Russian_wildfires
        
         | baybal2 wrote:
         | Worse, you have to add Kazakhstan, which is now under a Russian
         | thumb too, and Uzbekistan.
        
         | rplnt wrote:
         | > This conflict will affect 1/4 of the world's wheat which will
         | affect food prices.
         | 
         | That's not 1/4 of worldwide wheat production, but 1/4 of
         | exports of wheat. Those are numbers that differ by orders of
         | magnitude.
        
           | pier25 wrote:
           | Good point!
           | 
           | My main point still stands though.
        
         | immmmmm wrote:
         | We should be talking about human lives.
         | 
         | My Ukrainian colleague was terrified for his family today.
        
           | k0k0r0 wrote:
           | I agree completely. I feel shocked, I can't quite yet
           | comprehend, what has happened. Unfortunately, that doesn't
           | seem to be the same for most of my peers in my country, i.e.
           | germany.
           | 
           | Edit: Slight mistake.
        
           | pier25 wrote:
           | You think a global increase of food prices will not have an
           | effect on human lives?
        
       | steve76 wrote:
        
       | [deleted]
        
       | 34ylkjj45y wrote:
        
       | dcdc123 wrote:
       | https://archive.is/OBG4R
        
       | vondur wrote:
       | Since it's extracted from the air, it shouldn't be too hard to
       | start doing it here. I assume we do this for other gases already,
       | so ramping it up for Neon may not be that difficult.
        
         | MisterTea wrote:
         | This is exactly why this is a non-issue. It's not like the air
         | over the Ukraine is magically richer in neon.
        
           | tekno45 wrote:
           | How long does it take to establish that generation and supply
           | chain?
        
           | whatshisface wrote:
           | It's not a non-issue. You can't extract it from air with
           | tweezers, you need to build a lot of equipment. It takes a
           | long time to build a chemical plant, and if Intel is sitting
           | idle until that plant is built... well, that's an enormous
           | problem.
        
             | MisterTea wrote:
             | > you need to build a lot of equipment.
             | 
             | Cryogenic distillation of air is a solved problem. There
             | are plenty of plants already in operation all over the
             | globe meaning there only needs to be modification to
             | existing plants to further collect and crack the remaining
             | 0.1% of air. I'm sure this is not hard to do with existing
             | cryoplants.
             | 
             | If we already have the capacity then why are we without
             | Neon production is a good question. Neon isn't in high
             | demand like the easily extracted major components of air:
             | nitrogen (78%), oxygen (21%), and argon (0.9%). Neon is
             | something like 18ppm in air so a lot of energy has to go in
             | to get very little out. So my guess is economics where the
             | existing Ukrainian cryogenic plants have kept their prices
             | low enough to discourage adding this capacity to
             | new/existing plants elsewhere (maybe they get cheap energy,
             | subsidies, etc). Now it might be profitable.
        
               | baybal2 wrote:
               | People don't understand why semiconductor argon, and neon
               | can't be substituted by argon, and neon used in welding.
               | 
               | It's very hard to purify noble gasses, as they are almost
               | completely chemically inert, and chemistry needed to
               | make, say, same argon, to form compounds with anything
               | else is something needing very special equipment, and
               | know how.
               | 
               | Welding grade argon is dirt cheap, 99.999% argon is very
               | expensive, and 99.999999% argon is many times as
               | expensive as welding gas.
               | 
               | It's much worse with neon.
        
               | whatshisface wrote:
               | > _Cryogenic distillation of air is a solved problem.
               | There are plenty of plants already in operation all over
               | the globe meaning there only needs to be modification to
               | existing plants to further collect and crack the
               | remaining 0.1% of air. I 'm sure this is not hard to do
               | with existing cryoplants._
               | 
               | It can take months or years to make additions to existing
               | plants, there is an enormous amount of difference between
               | a solved textbook problem and a real problem being
               | solved.
        
           | NeoVeles wrote:
           | Although it is still an issue. While the resource is
           | everywhere, the technology for extraction is still in a
           | specific vulnerable position.
           | 
           | Once we have the extraction capabilities elsewhere - then is
           | is a non-issue. The turn around time on that? I have no idea.
           | It could be days, months or years.
        
       | dogma1138 wrote:
       | And Russia produces 50% of the worlds palladium which is critical
       | for manufacturing ceramic capacitors.
       | 
       | Looks like we're stuck between the hammer and the sickle...
        
         | Panoramix wrote:
         | The article quotes 35%.
        
       | atlantas wrote:
       | 90%! Did we really let ourselves become so reliant on Ukraine and
       | Taiwan for computer chips? Taiwan being the next country most
       | under threat.
       | 
       | In fact, Reuters just reported that "Taiwan warns Chinese
       | aircraft in its air defence zone"
       | 
       | https://www.reuters.com/world/asia-pacific/taiwan-reports-ni...
        
         | tiahura wrote:
        
         | cbfrench wrote:
         | It's worth noting that Chinese incursions into Taiwan's ADIZ
         | are a routine occurrence and don't really represent any
         | increase in aggression above the baseline:
         | 
         | "On Wednesday (February 23), two Chinese military jets flew
         | into Taiwan's air defence identification zone (ADIZ), marking
         | the 12th intrusion this month."
         | 
         | https://www.wionews.com/world/two-chinese-fighter-jets-enter...
        
           | [deleted]
        
           | ceejayoz wrote:
           | In part, because Taiwan's ADIZ _extends over mainland China_.
           | 
           | https://commons.wikimedia.org/wiki/File:JADIZ_and_CADIZ_and_.
           | ..
           | 
           | (ADIZs are also unilateral and not something set up in
           | international law; they're basically a request)
        
             | WillPostForFood wrote:
             | I agree these stories should not be overblown, and have
             | been a regular occurrence. It isn't a worrisome escalation.
             | 
             | But it is incorrect to say they are happening because the
             | ADIZ extends over Chinese territory. The repeated
             | incursions are out over the ocean, most commonly over the
             | SW corner of the ADIZ which is not over mainland China.
             | China is doing it intentionally, and is both testing and
             | prodding Taiwan.
        
               | slowmovintarget wrote:
               | China is testing and prodding the US, and you'd better
               | believe they're paying full attention to the (lack of)
               | response to the Ukraine situation.
        
               | ceejayoz wrote:
               | To be clear, though, under international law China _has
               | every right to fly in those areas_. Just like when we fly
               | /sail 12 miles off Russia, or send ships past the islands
               | China's making in the South China Sea.
               | 
               | When we do it, it's a "freedom of navigation" exercise.
               | Yes, it's testing air defenses, but it frustrates me when
               | officials breathlessly act like it's a big deal.
        
               | eloff wrote:
               | With military aircraft? I don't think that's covered by
               | international law, it doesn't sound right. Any country
               | would object.
        
               | ceejayoz wrote:
               | Yes, with military aircraft. ADIZs have no
               | (international) legal standing; international law says
               | countries control airspace only over their territory,
               | which means the same 12 mile limit ships are subject to.
               | Other countries have every right to fly or sail up to
               | that 12 mile limit.
               | 
               | Again, Taiwan's ADIZ extends _over China_.
               | 
               | When we fly close to Russia, they send fighters up to
               | escort. We do the same when they fly planes near Alaska.
               | 
               | https://www.cnn.com/2021/09/26/politics/russian-fighter-
               | jets...
               | 
               | https://taskandpurpose.com/news/us-fighter-jets-
               | intercept-ru...
               | 
               | > The Russian aircraft were in the ADIZ north of Alaska
               | for about 4 hours, according to North American Aerospace
               | Defense Command, which said the planes came as close as
               | 50 nautical miles to the Alaskan coast but did not enter
               | U.S. or Canadian airspace. The ADIZ extends 200 miles
               | from the U.S. and Canadian coasts, but territorial
               | airspace only extends 12 miles from the coast.
               | 
               | In fact, the US _explicitly_ says  "nuh uh!" to other
               | countries' ADIZs... https://en.wikipedia.org/wiki/Air_Def
               | ense_Identification_Zon...
               | 
               | > Moreover, the U.S. Navy's Commander's Handbook on the
               | Law of Naval Operations states the ADIZ applies only to
               | commercial aircraft intending to enter U.S. sovereign
               | airspace, with a basis in international law of "the right
               | of a nation to establish reasonable conditions of entry
               | into its territory". The manual specifically instructs
               | U.S. military aircraft to ignore the ADIZ of other states
               | when operating in coastal areas...
               | 
               | Here's a US RC-135 surveillance aircraft violating the
               | Chinese ADIZ to get about 20 miles from the mainland.
               | https://twitter.com/SCS_PI/status/1373886128177041410
        
               | toyg wrote:
               | Do you think the ships sent in the Straits or near Russia
               | are civilian ships...? Obviously not.
               | 
               | International law has to be enforced, one way or the
               | other.
        
               | dirtyid wrote:
               | International law view Taiwan as province of China.
               | Nevermind the ADIZ / clipping median line drama, PRC can
               | "legally" fly over Taiwan airspace if it wanted to. And
               | vice versa. See ROC Black Cat squadron flying U2s over
               | mainland in the 60s. It would be destabilizing, but
               | legal. Either side can choose to resume Chinese civil war
               | if they wanted to.
        
         | philipkglass wrote:
         | Neon is used in excimer lasers that generate ultraviolet light.
         | These lasers are used in photolithography and for annealing
         | amorphous silicon to polycrystalline silicon in flat panel
         | display manufacturing. Laser manufacturers and users already
         | faced a Ukrainian neon crisis during the last round of fighting
         | and made changes to reduce consumption of fresh neon:
         | 
         | https://www.photonicsonline.com/doc/how-one-light-source-man...
         | 
         | https://www.gigaphoton.com/wp-content/uploads/2017/10/2017_E...
         | 
         | I expect that neon price spikes this time are going to impact
         | laser users less than they initially did back in 2015 since
         | lasers now require less fresh neon.
        
           | analog31 wrote:
           | Perhaps not as important but the humble helium neon laser is
           | also still an important practical standard for position
           | measurement at submicron accuracy.
        
         | PaywallBuster wrote:
         | I'd say its mostly about specialization
         | 
         | There could be 100s of companies selling NEON gas, but only a
         | handful is producing NEON gas purified to the degree required
         | by semiconductor industry.
         | 
         | In this case, it seems only one is supplying semiconductors
        
         | akmittal wrote:
         | I see same case with companies moving to aws
        
         | gjsman-1000 wrote:
         | Do you want a scary thought? Imagine if Taiwan gets invaded and
         | China manages to steal all of America's computer chip designs.
         | Technology problems solved.
        
         | godelski wrote:
         | If you're a small country in a dangerous position isn't this
         | probably the best strategy you can do?
        
           | arcticbull wrote:
           | This was I believe one of the major goals of TSMC. Even if it
           | wasn't (and my memory isn't serving me with a link) it
           | certainly has that effect now.
        
         | rootsudo wrote:
         | I wonder what great name they'll think up next.
         | 
         | Operation Iraqi Liberation. OIL.
         | 
         | What fits CHIP?
        
         | zucker42 wrote:
         | The nature of globalism is that there's many steps in the
         | supply change that are dependent on one or two countries.
         | Semiconductors are also dependent on the Netherlands (ASML) for
         | example.
         | 
         | Also violations of the air defense zone, though not
         | meaningless, are not super important. The air defense zone
         | covers a part of mainland China larger than Taiwan, as well as
         | waters that might at least be considered international waters.
         | News articles about that are pretty pointless.
        
         | 34ylkjj45y wrote:
        
         | Maximus9000 wrote:
         | Stockpiling is another option if you rely on something critical
         | that is difficult to produce at home.
        
         | mvc wrote:
         | Are we in favor of economics/capitalism here or are we not?
         | 
         | Because the economics literature is quite clear that
         | international trade is beneficial to all involved. It's what we
         | insist that developing countries focus on exports when loaning
         | them money. For many years, Taiwan has been the poster child
         | that we point to when trying to change the ways of Cuba or
         | Venezuela.
         | 
         | Are these principles so weak that we would allow a dictator who
         | doesn't even have the support of his own people to shake them?
        
           | Apocryphon wrote:
           | This entire theory has been disproved by modern China
           | essentially becoming a Singapore writ large with a very
           | bustling economy not only tied to but pivotal to the
           | international trade system, but managing to remain
           | authoritarian without liberalizing much.
        
           | blackbear_ wrote:
           | > Because the economics literature is quite clear that
           | international trade is beneficial to all involved.
           | 
           | If you narrowly focus on economics, yes. But what are other
           | consequences, outside of economics? By outsourcing
           | everything, you lose control. You allow uncontrollable
           | external factors to affect you. You open yourself to be
           | blackmailed.
           | 
           | So in a way yes, those principles are weak because they are
           | incomplete. They do not take into account the full range of
           | possibilities that can happen in the real world.
        
             | munk-a wrote:
             | In theory by allowing private entities to run these
             | businesses you're also losing control. If you need absolute
             | control then what you're asking for is a command economy -
             | I lean toward socialism but that's a bridge too far for me.
             | 
             | Some supply chain instability is the result of allowing
             | healthy economic activity especially when the modern goods
             | we're talking about are immensely complex and require
             | incredible specialization to reasonably manufacture.
        
               | lazide wrote:
               | Any theory which does not take into account a country
               | manipulating a market so it can get a monopoly on a key
               | economic element for other countries, then use that to
               | subjugate or conquer them is a hopelessly naive theory.
        
           | maybelsyrup wrote:
           | > economics/capitalism
           | 
           | lmao
        
           | car_analogy wrote:
           | > international trade is beneficial to all involved
           | 
           | But what _kind_ of trade? Not unrestricted - Taiwan itself
           | used protectionism to grow its industries when they were not
           | yet able to compete on the global market:
           | 
           |  _James K. Galbraith has stated that [..] " ... none of the
           | world's most successful trading regions, including Japan,
           | Korea, Taiwan, and now mainland China, reached their current
           | status by adopting neoliberal trading rules."_ - https://en.w
           | ikipedia.org/wiki/Comparative_advantage#Criticis...
        
           | krnlpnc wrote:
           | > Are these principles so weak that we would allow a dictator
           | who doesn't even have the support of his own people to shake
           | them?
           | 
           | In practice the principles don't matter too much. The reality
           | is that industry has optimized for cost and converged on a
           | small set of suppliers. The single points of failure
           | introduced as a side-effect of this could certainly be
           | exploited by a bad actor.
        
           | CogitoCogito wrote:
           | > Because the economics literature is quite clear that
           | international trade is beneficial to all involved.
           | 
           | Maybe the literature is wrong?
        
           | oneoff786 wrote:
           | Economics is clear on nothing. The curve maximizing behaviors
           | for international trade have a few assumptions built in, e.g.
           | that Taiwan does not get annexed by China and suddenly the
           | trade incentives change horribly.
        
             | mvc wrote:
             | I think the assumption is that when the system is
             | threatened, the leaders of all the countries benefiting
             | from said capitalism would grow a pair and do something.
             | 
             | Because if they don't, and the system collapses, then what?
        
           | nicoburns wrote:
           | I would say that the economics literature is very clear that
           | international trade is frequently not beneficial to all
           | involved. Haiti would be a clear example of a case when it
           | was not.
        
         | croes wrote:
         | Would we care without these dependencies?
        
         | e40 wrote:
         | How? Short vs long-term thinking.
         | 
         | And Xi moving on Taiwan at the start of increased activities in
         | Ukraine was the thing feared the most. What a shitshow it would
         | be if China invaded Taiwan. The pandemic shortages would pale
         | in comparison.
        
         | Rebelgecko wrote:
         | Doesn't that happen on more or less a weekly basis?
        
           | agilob wrote:
           | Yes, why does it still happen on a weekly basis?
        
             | Rebelgecko wrote:
             | Why would it stop? Not sure how the Chinese military works,
             | but presumably their pilots need a certain # of flight
             | hours to stay current. It's not like there's really a
             | downside for China
        
             | actuator wrote:
             | Every time they do this Taiwan has to scramble their own
             | jets in the air. So most likely it is to test Taiwan's
             | response times and wear out their aircrafts. Each flight of
             | those fighter jets adds to a maintenance cost on top of the
             | fuel costs, which is disproportionately higher for Taiwan
             | considering the size of the economy.
        
               | agilob wrote:
               | >So most likely it is to test Taiwan's response times and
               | wear out their aircrafts
               | 
               | Rings a bell, Russians were doing it on Baltic sea for
               | over a decade, and president of Estonia was called
               | paranoiac
        
               | rootusrootus wrote:
               | Indeed it apparently costs close to 10% of their military
               | budget just to respond to Chinese incursions. That's a
               | heck of an incentive.
        
               | newuser94303 wrote:
               | That makes sense. Most of China's military policy seems
               | to be economic. They make cheap subs for defense. US buys
               | really expensive subs so they can attack. They spend some
               | money their military and all the countries around them
               | spend more money on their military. The other countries
               | get poorer since military investment returns nothing so
               | they have to borrow from China for critical
               | infrastructure.
        
               | actuator wrote:
               | Not really, it is well alleged that CCP has a lot of
               | military spending off the books. So the % figure of GDP
               | we see might be higher.
               | 
               | Also, China's posturing is not just defensive but has an
               | offensive side as well, as seen by the naval bases it has
               | been trying to build across the world, even in Africa.
        
             | [deleted]
        
             | monkeywork wrote:
             | Because their airspace extends over mainland china...
        
             | Pulcinella wrote:
             | Taiwan's "Air Defense Identification Zone" extends over
             | mainland China. Though it seems it mostly cares about
             | incursions in the southwest corner. https://en.wikipedia.or
             | g/wiki/Air_defense_identification_zon...
        
         | honkycat wrote:
         | It is so disgusting to me that we allowed our oligarch class to
         | de-industrialize our country and ship all of the jobs and
         | everything we built overseas.
         | 
         | 100 years of industrialization and worker movements gutted,
         | abandoned, and disassembled with the help of our two-faced neo-
         | liberal[0] government.
         | 
         | And for what? 40 years of profit for the 1%? And then
         | encountering the fact that we have outsourced ourselves into a
         | profound strategic weakness in the international markets.
         | 
         | 0: As in: Both sides, globalization. Not as in Dem vs
         | Republican.
        
           | xadhominemx wrote:
           | Neon purification and leading edge chip manufacturing
           | concentrating in Ukraine and Taiwan respectively have nothing
           | to do with neoliberalism. The former is a historical accident
           | rooted in soviet space laser initiatives, and the latter is
           | because TSMC executed technology development better than
           | western, Japanese, and Korean competitors
        
         | roughly wrote:
         | But we saved some money by shuttering all our factories and
         | outsourcing everything, so, who's to say what the right answer
         | was.
         | 
         | (/s)
        
           | mannerheim wrote:
           | How do you identify all the vital components for not just
           | what you need to manufacture, but the components of those
           | components? How many people here knew Ukraine was a major
           | producer of neon prior to this, and its importance to
           | semiconductor manufacturing?
           | 
           | You could try to become totally autarkic, but then you have
           | to support a national semiconductor industry along with every
           | industry it relies upon indefinitely, while foreign
           | semiconductor companies won't be encumbered by restrictions
           | to purchase every component for their process from within
           | your country; they, at least, will have the option to go with
           | the cheapest or the best options. And so, if you want your
           | national semiconductor industry's chips to actually be used,
           | you have to provide incentives for that, too, and/or require
           | domestic electronics companies to use their chips. Then,
           | since you're making domestic electronics companies
           | uncompetitive, you have to incent consumers to purchase those
           | electronics, ban or heavily tax foreign electronics...
           | 
           | In a modern, globalised economy, it seems to me the only way
           | to have a semiconductor industry that isn't vulnerable to
           | these sorts of problems is full top-down control of a
           | substantial chunk of the economy.
        
             | fragmede wrote:
             | Does it need _full_ top-down control of a substantial chunk
             | of the economy to happen? A few regulations saying 10% has
             | to be made in-country, along with investigators and fines
             | to back it up seems like it would work without going full
             | centralized-and-planned economy.
        
           | bingohbangoh wrote:
           | And when the orange man came and said we should bring it
           | back, I laughed at home and call him an idiot!
        
             | voidfunc wrote:
             | A broken clock is still right twice a day.
        
             | AvesMerit wrote:
             | How much onshoring did orange man actually do? According to
             | St. Louis FRED - https://fred.stlouisfed.org/series/MANEMP
             | - basically nothing
             | 
             | > call him an idiot!
             | 
             | And you were and still are right to do that!
        
               | coolso wrote:
               | Love him or hate him, if you don't think Trump caused a
               | monumental, almost overnight shift in both public and
               | governmental opinion towards going back to promoting
               | American manufacturing, bringing jobs back to America,
               | and finally fighting back against China for their decades
               | of taking advantage of us... you're letting your bias do
               | all the talking, and that's sad.
               | 
               | You'll note that in his debates, Biden took some lines
               | almost directly out of Trump's playbook regarding those
               | subjects (made to sound more polite of course), and in
               | fact many of Trump's policies and executive orders, Biden
               | has kept in place. Because they're having a positive
               | effect. We just needed someone with balls like Trump to
               | finally enact them.
               | 
               | Big Tech, China, offshoring, and globalism can shove it.
               | The tides are finally turning. If there's one good thing
               | to come out of Trump's presidency, it's this!
        
               | heurist wrote:
               | Bernie was saying the same things before Trump showed up
               | - this is a general trend, not caused by anyone in
               | particular.
        
               | Gollapalli wrote:
               | Bernie and Trump basically had the same policies on
               | immigration as well (for labor politics purposes). Trump
               | was basically an old school labor democrat who said some
               | edgy things.
        
               | [deleted]
        
               | coolso wrote:
               | Politicians of all sorts have been saying lots of things
               | for decades. The fact is, nobody as influential or as
               | powerful as Trump ever actually did anything about most
               | of them. In particular, the anti-China anti-offshoring
               | sentiment.
               | 
               | It took Trump yelling about it from the rooftops for over
               | 5 years, and getting over half the population as
               | passionate about it as he was, and then Trump actually
               | doing things about it while in office, for things to
               | actually happen and be set in motion.
        
               | xadhominemx wrote:
               | Trump didn't do anything about it either
        
               | coolso wrote:
               | That's... unequivocally false.
        
             | roughly wrote:
             | Yeah, there was a definite "Trump said it so it's wrong"
             | zeitgeist among the left that led to some uncomfortable
             | moments. Tribal politics is a hell of a drug.
        
               | dkonofalski wrote:
               | That was not unique to the left.
        
               | roughly wrote:
               | Never said it was.
        
             | sophacles wrote:
             | Yes of course it was funny that a conman got millions of
             | idiots to believe he would do something that might hurt the
             | balance sheet of his biggest donors.
        
             | oneoff786 wrote:
             | Trump's claims were largely about bringing manufacturing
             | jobs to America. Not reducing defense dependencies on
             | vulnerable nations.
        
               | genericone wrote:
               | That was the stated goal for bringing steel production
               | back to the USA at least, not sure about the imputed
               | goals of other manufacturing jobs, but it should follow a
               | similar line of thought, redundancy of critical-supply-
               | chain parts.
        
               | oneoff786 wrote:
               | No, that was a jobs play. Steel is well diversified, and
               | we get our steel from a variety of largely trusted
               | producers. The largest import source of steel was Canada.
               | We also produce and export a lot of steel.
               | 
               | Steel is important but it's not similar at all to
               | something like Taiwan's unique situation
        
           | renewiltord wrote:
           | Oh no. We didn't do that. They just beat us. We kept our fabs
           | and we kept our fab engineers and we built and we built, but
           | they just beat us.
           | 
           | This technology isn't easy. Notice how far China is behind
           | despite massive investments. Sometimes we just don't have the
           | tech. But it's okay, TSMC and friends will bring it here.
        
           | dogecoinbase wrote:
           | I'm constantly thinking about this old HN comment, and how it
           | applies not only to Agile but most of the modern JIT wisdom:
           | https://news.ycombinator.com/item?id=18448602
           | 
           | > You saved some sprints but invalidated the purpose of the
           | project. Very agile.
        
           | 34ylkjj45y wrote:
        
           | daniel-cussen wrote:
           | Yeah that's your answer right there. American management, at
           | least those who go to business school, like how can I put it
           | fairly to the people I know who've studied business...They
           | just fucking hate paying wages. It's a huge business school
           | teaching to treat wages and taxes as counterproductive. Are
           | you really going to propose American management likes paying
           | taxes? The fair thing to say is they fucking hate paying
           | taxes. Those words carry the real emphasis of the negative
           | emotion, I'm not trying to be pejorative, that's just how
           | they actually feel about that matter. I've seen businesses
           | decline quite profitable opportunities because they'd produce
           | too much in taxes in the process, from some double taxation
           | effect.
           | 
           | So then, the MBA just has to hate the factory. After all,
           | that was where everybody used to get their wage.
        
             | xadhominemx wrote:
             | Intel's two core issues are engineering failures -- process
             | technology and processor architecture. Nothing to do with
             | the MBAs
        
           | RC_ITR wrote:
           | At least in terms of semi manufacturing, we tried our hardest
           | (visit Gilbert and Chandler AZ), we just were worse than
           | Taiwan.
           | 
           | Believe it or not, that's often the real reason we shut down,
           | people just blame it on cost savings for pride.
        
           | mym1990 wrote:
           | "We saved some money" is how economics works in price
           | competitive markets. This is a result of many players doing
           | what keeps each one competitive, but without collaborating on
           | what the large scale effects are down the road.
        
             | Terry_Roll wrote:
             | Thats what we get told, but there is always strategic
             | reasons with so much stuff which few people get to hear
             | about.
             | 
             | On the news a while ago, the news was going on about how
             | the UK is banning dual use goods, so this tells us some
             | Govt dept has audited potentially every business and its
             | goods and compiled a list of devices which can be
             | considered multi use. You see this alot with chemicals,
             | Glycerine, used as a cosmetic can also be used for
             | bombmaking. I only found this out when I purchased a litre
             | and then some internet forum started going on about how it
             | can be used for bomb making.
             | 
             | Its why we dont get taught everything, not even in the
             | news. Anyway oil prices have gone up which will push more
             | people towards electric vehicles, and yet Russia has the
             | largest oil reserves in the world, so no doubt they will
             | benefit, because if another internet forum is to be
             | believed, the Saudia's have all but exhausted their oil
             | reserves which is one of the reasons for them IPO'ing their
             | national oil producer.
             | 
             | Kind of explains why I also wasnt allowed an export licence
             | for an app but also highlights who was behind it!
        
               | Dracophoenix wrote:
               | >Glycerine, used as a cosmetic can also be used for
               | bombmaking. I only found this out when I purchased a
               | litre and then some internet forum started going on about
               | how it can be used for bomb making.
               | 
               | It's the chief component in dynamite.
               | 
               | >Kind of explains why I also wasnt allowed an export
               | licence for an app but also highlights who was behind it!
               | 
               | When do you need an export license for an app?
        
               | Terry_Roll wrote:
               | This was like 5-10years ago, I developed a bug reporting
               | app and developed a form of encryption which was
               | uncrackable. Now I'm not qualified in anything, never
               | even went to Uni, but what should have taken 6weeks with
               | the UK Dept BIS, took like more than that and then got
               | denied so I shut the business down I'd set up for it.
               | 
               | Dont have the source code anymore or anything and its not
               | ever going to happen now.
               | 
               | When I say it was uncrackable, it was based loosely on
               | code books which were used in ww2, which is something I
               | subsequently read about later on in the news.
        
             | car_analogy wrote:
             | Until running into an agent that _does_ exhibit
             | collaboration on large-scale, long-term effects, that uses
             | these economic principles against countries foolish enough
             | to hold on to them.
        
             | rob74 wrote:
             | Yup... and another result of that is climate change.
        
               | [deleted]
        
             | xvector wrote:
             | It's actually a result of the spineless geriatrics in the
             | government not being willing or able to keep up with an
             | evolving world. We see the same with climate change.
        
               | mym1990 wrote:
               | I think the big advantage that companies have is a
               | mission statement in which most everyone is progressing
               | towards within the company. Much of government operates
               | almost the complete opposite, and in a world that is
               | changing faster and faster every day, the politicians are
               | falling farther and farther behind.
        
             | roughly wrote:
             | Autonomous agents responding to their environments can
             | create some really wondrous outcomes and also some really,
             | really stupid ones.
             | 
             | https://en.wikipedia.org/wiki/Ant_mill
        
             | echelon wrote:
             | > "We saved some money" is how economics works in price
             | competitive markets.
             | 
             | It's also a great optimization criteria to use to position
             | yourself for checkmate.
             | 
             | Monopolies, countries...
        
               | mym1990 wrote:
               | Every company or government will eventually see itself in
               | checkmate. It is in the best interest of companies to
               | push that as far down the road as possible.
        
             | ghostly_s wrote:
             | Gee, one might almost reach the conclusion that unregulated
             | free markets are bad...
        
               | mym1990 wrote:
               | It really depends on the market...we have to weigh the
               | risks or worst case scenarios. While economics can be
               | pretty cut and dry, the real world is very messy.
        
             | stingraycharles wrote:
             | And most importantly, economics assumes that the market is
             | perfect, which it most certainly is not in practice.
             | 
             | What we didn't do enough is take the geopolitical landscape
             | into this equation (or a potential pandemic, for that
             | matter), which I hope changes after recent developments.
             | 
             | I blame the governments mostly for this, I completely
             | understand the businesses needing to do what's best for
             | business.
        
               | netizen-936824 wrote:
               | Business are still run by people. Nobody was forced to
               | see someone else doing something shitty and then say
               | "well I just need to be a bigger asshole than that guy!
               | Must be okay 'cause it's not illegal"
               | 
               | People have far too simplistic models of how things work,
               | this is the consequence of a lack of understanding and
               | shortsightedness
        
               | mym1990 wrote:
               | Per Einstein: 'A model should be as simple as it can be
               | but no simpler'. I think people tend to overcomplicate
               | things than oversimplify. A true understanding of
               | something can be hinted by being able to explain it in a
               | simple way.
        
               | netizen-936824 wrote:
               | I view the same quote from the opposite perspective. Our
               | current model is _far_ too simple, Einstein would have
               | said we 're missing a whole bunch of nuance and
               | variables.
        
               | lotsofpulp wrote:
               | Businesses also need to have customers. No clothes maker
               | was forced to manufacture in poor countries, but the
               | alternative was to simply stop existing since
               | insufficient customers are willing to pay the price
               | premium for purely American made clothes. Hence the only
               | solution would have been legislation forcing domestic
               | manufacturing.
        
               | netizen-936824 wrote:
               | That's assuming that our current model is the only/best
               | way of doing things, which is a bit shortsighted
        
               | lotsofpulp wrote:
               | You will have to elaborate on what life looks like
               | without businesses selling to customers, and otherwise
               | going out of business if they do not sell to customers.
               | 
               | At least it does not seem to involve any conventional use
               | of the word business.
        
               | netizen-936824 wrote:
               | Exactly, and that might be a good thing. I don't have the
               | answer to that question but it sure seems to me like our
               | current system ruins lives and the environment to enrich
               | the few who are willing to step on everyone else. Doesn't
               | seem ideal to put it lightly
        
               | roughly wrote:
               | > I blame the governments mostly for this, I completely
               | understand the businesses needing to do what's best for
               | business.
               | 
               | How do you blame government for businesses running around
               | with planning models that miss wars and pandemics, the
               | two most common causes of ruin and disruption for the
               | entire duration of human history?
        
               | salawat wrote:
               | ...Because making sure businesses in economies plan for
               | that sort of thing is generally something that you have
               | to be a non-transient actor to ensure.
               | 
               | Businesses/corps come and go ... the Nation of $nation
               | only tends to do so on the next timescale up. When their
               | actually looking out for systemic blindspots no one else
               | is, and not pandering to the elite.
        
               | version_five wrote:
               | Also (or as a corollary), otherwise businesses have no
               | incentive to plan for rare, adverse events. They will be
               | out-competed by businesses that don't care.
               | 
               | Personally I think the solution is for governments to
               | have a contingency plan, and opposed to forcing any
               | individual business to do anything, but if we did want
               | businesses to change their behavior, it's definitely a
               | government issue.
               | 
               | Unless somehow "buy my product , it's more expensive
               | because our business hedges against war and pandemics"
               | works in advertising (eco-friendly seems to get some
               | traction, so maybe?)
        
               | g_p wrote:
               | Part of the challenge is that governments tend to come
               | and go on 4 or 5 year cycles, so their priorities tend to
               | be focused on issues likely to (or certain to) happen
               | before the next election or other democratic event.
               | 
               | Governments often assume (wrongly) that businesses have
               | incentives to handle long-term risks, since they want to
               | exist for a long time and remain profitable. The reality
               | though is most are more focused on their share price and
               | dividend than handling strategic risks.
        
               | fsckboy wrote:
               | > _And most importantly, economics assumes that the
               | market is perfect, which it most certainly is not in
               | practice._
               | 
               | do physicists assume frictionless surfaces and perfectly
               | elastic collisions? yes when they're explaining the
               | basics of Newton's Laws, but they also develop theories
               | and models for friction, etc.
               | 
               | Same with economists, they study economies and do their
               | best to come up with complete models. Are they perfect?
               | no. Do they know more about economies than anybody else?
               | yes.
        
             | TearsInTheRain wrote:
             | We optimize for price so you cant align with something that
             | price doesnt capture. Taxes and subsidies allows us to take
             | those factors into consideration
        
             | baq wrote:
             | economists have a certain tendency to disregard tail
             | events, which happen much more often than they think, as
             | they don't follow the normal distribution. there's been a
             | plethora of six sigma market movements in the past few
             | years, and six sigma by definition should happen once every
             | 3 million observations or so...
        
               | lazide wrote:
               | ML models do the same thing - it's over fitting.
        
             | hammock wrote:
             | >"We saved some money" is how economics works in price
             | competitive markets. This is a result of many players doing
             | what keeps each one competitive, but without collaborating
             | on what the large scale effects are down the road.
             | 
             | An excellent and accurate elaboration of the modern
             | economic theory that led us, nevertheless, to our current
             | precarious position.
        
               | munk-a wrote:
               | Modern economic theory doesn't disallow subsidies - it's
               | very possible to exist in a primarily capitalist society
               | with either tariffs or domestic business subsidies to
               | ensure certain key industries remain on local shores - it
               | might be politically infeasible for such laws to be
               | passed in the US, but it is a very reasonable response.
        
               | pirate787 wrote:
               | The United States has all kinds of tariff and other
               | subsidies for key industries. Foreign airlines and
               | shipping companies are literally blocked from providing
               | domestic US services. (That's also why all major US
               | cruise ships touch a foreign port in their journey).
               | Steel and autos and much of agriculture are also heavily
               | protected.
               | 
               | These are all anti-consumer and bad public policy.
        
               | lastofthemojito wrote:
               | > That's also why all major US cruise ships touch a
               | foreign port in their journey
               | 
               | In a pedantic sense, major US cruise ships don't need to
               | touch a foreign port in their journey. The catch being
               | there is only one major US cruise ship - The Pride of
               | America, which generally does Hawaiian cruises:
               | https://en.wikipedia.org/wiki/Pride_of_America
               | 
               | The other major cruise ships you see operating in the US
               | are actually foreign-flagged so they can avoid US
               | environmental, gambling and employment regulations, etc.
               | These are the ships that must touch a foreign port during
               | their journeys.
        
               | vanviegen wrote:
               | Good info. But _why_ is this bad policy? Is globalization
               | really just better? Because  "the consumer" (whom is
               | usually also an employee/business owner and a citizen)
               | may be able to buy stuff for a bit less?
        
               | mym1990 wrote:
               | Generally anything that gets in the way of pure
               | competition shifts the incentives that players have to
               | make good products or services. When this happens, the
               | consumer is usually the one that gets the bad end of the
               | stick with faulty goods or services, while the producer
               | still gets to keep the proceeds.
        
               | vanviegen wrote:
               | Yes, but looking at this only from the perspective of a
               | consumer seems rather limited. One additional
               | consideration, the one we're talking about here, is the
               | importance of being somewhat self-reliant when shit hits
               | the fan.
               | 
               | And even if only consumers matter, what you're saying
               | only hold in theory, given a 'perfect market'. In
               | practice, consumers have imperfect (read: atrociously
               | bad) information, and big corporations hold many unfair
               | advantages.
        
               | vkou wrote:
               | > But why is this bad policy?
               | 
               | That's not the right question to ask. The right question
               | to ask is 'Who is this bad for?'
               | 
               | The Jones act, for instance, is good for US shipworkers,
               | and for enforcement of US shipping laws, but moderately
               | bad for Hawai'i, and really, really bad for Puerto Rico.
               | 
               | Who do you care more about? Preserving the comfort of the
               | continental American middle class employed in maritime
               | transportation, or a bunch of people in Puerto Rico? The
               | answer to that question determines how you see the Jones
               | act.
        
               | vanviegen wrote:
               | Left unchecked, globalization will likely lead to just a
               | single huge shipworking company, or maybe two or three.
               | Does that benefit shipworkers in either the US or Puerto
               | Rico?
        
               | hammock wrote:
               | It doesn't disallow them but it discourages them - the
               | ruling class of the Western world has been on the side of
               | globalization for many decades now (still is) and that is
               | really what is in question.
        
           | Aunche wrote:
           | On the other hand without globalization, there is no way the
           | relatively tiny island of Taiwan could have become the world
           | leader in chip manufacturing, and the US would have less
           | incentive to invest in their security.
        
         | livinglist wrote:
         | as a Chinese raised in China myself, this happens pretty
         | regularly since years ago. I don't think Winnie the Pooh has
         | big balls to attack Taiwan in recent future. China has too much
         | to lose right now.
        
           | actuator wrote:
           | But China is too much coupled with the western economy to
           | even sanction effectively. I think CCP must be watching this
           | to see the cost and benefits Russia gets for invading
           | Ukraine, which would definitely influence their decision even
           | more than Afghanistan would have. If the cost for Russia is
           | too low, then they wouldn't be risking much.
        
             | egwor wrote:
             | Russia's economy is interesting. Russian debt is 14%. It
             | isn't like the UK which requires external input. Their
             | availability cash and balance sheet is quite vast. This
             | limits the immediate impact of sanctions?
        
             | newuser94303 wrote:
             | Militarily attacking Taiwan would destroy the chip
             | factories. China waiting 100 years to get HK back. They
             | will wait for Taiwan. Slow economic warfare and they get it
             | all without messy bullets.
        
               | actuator wrote:
               | It might but it also gives Xi something that will
               | immortalise him like Mao. CCP didn't have the military
               | might to fight the British Empire and by the time they
               | could think about fighting UK for Hong Kong, the lease
               | was about to get over and UK knew it might be difficult
               | to get ally support to keep Hong Kong with them.
        
             | Apocryphon wrote:
             | It's not the matter of sanctions. Any conflict disrupts
             | China's very own supply chains, the economic fallout would
             | be considerable.
        
             | heurist wrote:
             | China does not want to get involved in major conflicts.
             | They will be opportunistic if/when they have a chance to
             | take power, but they are not as risk tolerant as Putin.
             | Only since 2016 or so have they started to come out of
             | their shell to take advantage of relative American
             | weaknesses.
        
           | yumraj wrote:
           | > I don't think Winnie the Pooh has big balls to attack
           | Taiwan in recent future.
           | 
           | Not disagreeing with you, but I think people generally
           | _incorrectly_ assume that a dictator with absolute power
           | thinks and acts rationally.
        
             | deltaonefour wrote:
             | Ironically, I think the above statement is irrational.
             | 
             | Why does being a dictator automatically make you more
             | irrational? Absolute power has no direct causal bearing on
             | human intelligence. It does not make you more irrational or
             | more rational.
             | 
             | There are plenty of examples of good kings, bad kings, good
             | emperors and bad emperors throughout history both for
             | ancient china and plenty of other civilizations. Modern
             | China, despite all the negative press, has done plenty of
             | rational things in order to get toe to toe with the US as
             | both a military and economic rival.
             | 
             | I think the negative connotation associated with the word
             | dictator paints anyone labeled with it in a biased light.
             | Not saying anything bad or good about pooh bear in general.
             | Whatever that man is, him being a dictator is not a causal
             | origin of his current character.
        
               | baq wrote:
               | dictators are blind.
               | 
               | a single person does not have the mental nor
               | technological capacity to run everything. they must
               | delegate. the way dictarships work is the dictator's
               | subordinates, friends, whatever, must live in constant
               | fear of each other, so they are incentivized to lie (or
               | at least omit truths) to the dictator. a benevolent
               | dictatorship doesn't exist, because no benevolent person
               | would survive the process of getting dictatorship.
               | 
               | decisions based on falsehoods may look irrational from
               | the outside.
               | 
               | of course, putin may very well be getting plain crazy.
               | certainly no shortage of normal civilian russians admit
               | it off the record.
        
               | deltaonefour wrote:
               | >a benevolent dictatorship doesn't exist, because no
               | benevolent person would survive the process of getting
               | dictatorship.
               | 
               | Singapore is the first one that comes to mind.
               | 
               | See: https://www.wikiwand.com/en/Benevolent_dictatorship
               | 
               | Additionally monarchies are essentially old forms of
               | dictatorship with slightly different customs and titles.
               | It's one and the same and plenty of good kingdoms exist.
               | I have PLENTY of examples:                  The Pharaohs
               | of ancient Egypt;        The Byzantine Emperors;
               | The Habsburg Monarchy in its various incarnations;
               | The Capetian Kings of France;        The Tsars;
               | The Tang, Ming and Qing - my three favorite Chinese
               | dynasties;        The Incas.
               | 
               | If you're looking for something more present-day, I'd
               | look into Bhutan, Lichtenstein and Monaco.
               | 
               | Tibet it also an example. A little iffy this one, it's
               | actually not benevolent but the West has definitely
               | painted them as such to use as propaganda against China.
               | Chinas actions against Tibet were quite horrific and
               | wrong but even still... Tibet was not an example of a
               | benevolent dictatorship... more of an example how a
               | dictatorship can be PERCIEVED as benevolent and how your
               | perceptions can be easily influenced. Tibet and China is
               | an example of evil acting on evil to simplify the
               | situation, but again I want to emphasize that the actual
               | reality is not so black and white.
               | 
               | You may also want to look into the term enlightened
               | absolutism.
               | 
               | Also China is an example of a benevolent dictatorship
               | despite all the bad things they've done (TBH China is
               | more of a mixed bag, and by mixed bag I mean both
               | benevolent and self interested at the same time... but
               | then again so is the US).
               | 
               | You cannot deny that the rise of China has been
               | unprecedented. The amount of people lifted out of poverty
               | at such a velocity has never been seen before in the
               | history of human civilization. That is benevolence. While
               | of course what is happening in Xinjiang is not
               | benevolence; blinding yourself to the good because of the
               | bad is irrational. You must acknowledge both.
        
               | baq wrote:
               | Singapore, maybe. China, please.
               | 
               | https://en.wikipedia.org/wiki/Uyghur_genocide
               | https://en.wikipedia.org/wiki/Xinjiang_internment_camps
               | can't be bothered to look for atrocities they've
               | committed before 2010...
               | 
               | US has its share of bad stuff, too, but I never said
               | they're benevolent. They're a democracy, which means the
               | winner of a beauty contest is in power instead of
               | somebody who took forcefully or has been gifted it. No
               | good options here, but at least in the contest somebody
               | actually wins.
        
               | yumraj wrote:
               | > Tibet it also an example. A little iffy this one, it's
               | actually not benevolent but the West has definitely
               | painted them as such to use as propaganda against China
               | 
               | Or perhaps you've bought on to the Chinese propaganda to
               | justify Tibet's invasion, subsequent occupation and
               | genocide of Tibetans by China.
               | 
               | And, China benevolent, oh please...
        
               | bastardoperator wrote:
               | History is pretty clear, go check it out. Nobody wants to
               | be ruled by a single individual that operates with
               | impunity.
        
               | [deleted]
        
               | drdaeman wrote:
               | > Why does being a dictator automatically make you more
               | irrational?
               | 
               | Lack of constructive feedback paired with that all your
               | thoughts including irrational ones are amplified through
               | the echo chamber.
               | 
               | It's easy to get caught up with weird ideas (and the more
               | power you have the weirder it might get because you have
               | to solve more complex problems and have much more vast
               | capabilities). If you don't have external feedback you
               | need to be much more resilient to irrationality than
               | under normal circumstances.
        
               | yumraj wrote:
               | > Why does being a dictator automatically make you more
               | irrational?
               | 
               | People, including leaders, are influenced by those around
               | them.
               | 
               | A sane leader has advisors, which they trust to provide
               | rational arguments, which sometimes may differ from their
               | own.
               | 
               | A dictator on the other hand is only surrounded by _yes-
               | men_ since anyone else would be thrown to the lions. So,
               | there is no one to provide a counter argument to the
               | dictator 's own viewpoints and makes them believe in
               | their supreme power. This is what makes them dangerous
               | and act irrationally.
               | 
               | Pick any dictator/supreme leader and you'll see the
               | trends.
        
           | CountSessine wrote:
           | I think they'll be watching what happens in Ukraine very
           | carefully. Then they'll be calibrating their predictions
           | about what would happen if they invaded Taiwan with Russia's
           | experience in Ukraine.
        
             | chongli wrote:
             | I doubt the TSMC fabs would survive a PLA invasion of
             | Taiwan. If nothing else, the CIA would probably blow them
             | up during the attack.
        
               | bpodgursky wrote:
               | That's why China is trying to build out domestic
               | chipmaking tech.
               | 
               | They're fine burning the rest of the world's supply chain
               | down as long as it leaves them a monopoly.
        
               | CountSessine wrote:
               | I doubt they care about TSMC.
               | 
               | The CCP understands (or at least was predicting back with
               | Jiang and Hu) that eventually China will democratize.
               | Taiwan is a democracy right now. Democratic countries
               | almost never re-unite into a single country. I can only
               | name one instance of this happening in the last 70 years,
               | and in some ways East Germany wasn't really a democracy
               | yet.
               | 
               | The CCP knows that Taiwanese reunification will never
               | really happen peacefully. Leaders will talk about it,
               | they'll negotiate a bit, but then it won't happen because
               | the status-quo is always more attractive. They know that
               | their only chance at national reunification is now or in
               | the next 10 years or so.
               | 
               | It's now or never. It has to happen by force or it will
               | never happen. If China swallows Taiwan and then
               | democratizes, that can be managed - a restive province
               | can be placated and bought-off. But if China democratizes
               | before reunification, then Taiwan is separate forever.
        
               | deltaonefour wrote:
               | The CCP won't democratize. It was heading in that
               | direction under Hu, now under Xi Jinping things are
               | consolidating back towards a centralist power.
               | 
               | I do agree that to China, Taiwan isn't about TSMC. TSMC
               | is the reason why the US cares about Taiwan but not the
               | reason why China cares about it. If it was the main
               | reasoning why doesn't China go after the Dutch? The dutch
               | have ASML, which manufactures the more critical
               | components involved with EUV lithography. But China never
               | made a single move against ASML.
               | 
               | There is deep history between Taiwan and China, and it is
               | this history that is the main reason why China eyes
               | Taiwan. Think of it like if California rebelled and
               | became a separate country from the US 50 years ago. How
               | would the rest of the US think about California?
        
               | CountSessine wrote:
               | _The CCP won 't democratize. It was heading in that
               | direction under Hu, now under Xi Jinping things are
               | consolidating back towards a centralist power._
               | 
               | I agree completely. But if you're in the CCP, and a
               | Chinese patriot, you understand that that makes peaceful
               | Taiwanese reunification even less likely. Also, as long
               | as Taiwan is defacto-independent, there's a terrible risk
               | that they will declare themselves officially-independent.
               | That would be a humiliating loss of face for the CCP and
               | at the very least would probably precipitate a power
               | struggle within the party.
               | 
               |  _There is deep history between Taiwan and China, and it
               | is this history that is the main reason why China eyes
               | Taiwan. Think of it like if California rebelled and
               | became a separate country from the US 50 years ago. How
               | would the rest of the US think about California?_
               | 
               | Again, I completely agree.
        
               | betwixthewires wrote:
               | "Good riddance."
               | 
               | Jokes aside, if that were to happen, the rest of the US
               | wouldn't think "they belong with us whether they like it
               | or not." It would take a significant government
               | propaganda campaign to get Americans to be okay with
               | forcibly reuniting a state like that.
        
               | segfaultbuserr wrote:
               | It's worth pointing out that even physical destruction
               | may be unnecessary. Due to the complexity of the
               | semiconductor supply chain, many say that an embargo of
               | materials and the removal of experts are enough to
               | paralyze the fabs for many years to come...
        
               | tomatotomato37 wrote:
               | Any Taiwan invasion would be spearheaded by surgical
               | strikes against those fabs via some type of special
               | forces. Whether those forces would be able to
               | successfully secure the fabs before they get blown or not
               | is anyone's guess, but China isn't stupid enough to think
               | this is something they can just throw their standard
               | troops at.
        
               | oneoff786 wrote:
               | If I were Taiwan, I'd be stationing troops at the
               | facility as a dead man's switch to destroy it if invaded.
        
               | deltaonefour wrote:
               | No, that's what'd you'd do if you were the US because
               | China is your rival. This is what you want from a foreign
               | perspective.
               | 
               | If I was Taiwan, or in other words a shareholder or OWNER
               | of TSMC, I wouldn't want something I own being destroyed.
               | I would rather fold into the new regime and keep my
               | original ownership.
        
               | oneoff786 wrote:
               | If China has to eat the cost of the TSMC being destroyed,
               | it's probably less likely to invade. China in a large
               | part depends on TSMC whether it "owns" Taiwan or not.
        
           | atlantas wrote:
           | Wasn't that what people were saying about Russia's aggression
           | too? Yet here we are.
        
             | vkou wrote:
             | It's not yet clear whether or not this war will end like
             | the one with Georgia, or with a worse outcome.
        
             | heurist wrote:
             | We've been watching Russia prepare for major war for more
             | than a decade. Anyone who said they wouldn't be willing to
             | enter this war was deluding themselves. It was a matter of
             | when, not if Russia would embark on this path.
        
           | olliej wrote:
           | The western world's economy is dependent on china - _any_
           | sanction immediately hurts the local economy. That 's why
           | every country is happy to fund the Chinese government's
           | genocide.
        
           | allisdust wrote:
           | Has China ever sent their army into another country post
           | their independence ?
        
             | zabzonk wrote:
             | Independence from whom?
        
             | swagasaurus-rex wrote:
             | Vietnam https://en.wikipedia.org/wiki/Sino-Vietnamese_War
             | 
             | Tibet https://en.wikipedia.org/wiki/Annexation_of_Tibet_by_
             | the_Peo...
             | 
             | North Korea https://en.wikipedia.org/wiki/Korean_War
        
               | zabzonk wrote:
               | Also, Mongolia.
        
               | sudopluto wrote:
               | and India
        
             | Rexxar wrote:
             | Depends if you consider Tibet as a country or not.
        
           | jazzyjackson wrote:
           | if I may, "recent future" implies some time travel to make
           | sense, you might instead say immediate or forseeable future
        
             | robbedpeter wrote:
             | You wollen haven be a temporal grammar enthusiast, I see.
        
           | robbedpeter wrote:
           | You can't assume dictators are rational. Xi Jinping thinks he
           | is singularly entitled to run the lives of billions of human
           | beings.
        
           | deltaonefour wrote:
           | Yeah Chinese people place commerce over patriotism first.
           | It's just the general attitude we have... unlikely Pooh bear
           | will conduct an attack.
           | 
           | We should only be worried about an attack if the the effects
           | on commerce and military retaliation becomes negligible.
           | That's when China will strike.
        
         | wyldfire wrote:
         | Global trade has been a peacekeeping incentive for decades.
         | 
         | But despots don't act for the sake of the people's will, so
         | it's not easy to account for that.
         | 
         | But anyways most markets are emergent, not planned
         | strategically .
        
           | buscoquadnary wrote:
           | I've heard that repeatedly and I used to believe it to;
           | however I have been recently studying WW1 and found out there
           | were many people back then who said pretty much the same
           | thing. They said that no one would want a war things were too
           | profitable and there was too much trade, they were terribly
           | terribly wrong.
           | 
           | The problem is WW1 wasn't one big "let's go to war" like
           | Hitler and WW2, WW1 was the effects of hundreds of little
           | consequences, edge cases, and constraints upon individuals
           | and nations that interacted in a way no one could see. I
           | believe the same thing will happen again, and it will
           | probably come as a result of a Pakistani-Indian conflict or
           | something from Iran. It isn't something anyone can see right
           | now, but its coming, just like no one would've guessed the
           | assassination of an Archduke would lead to 10 million dead
           | across Europe, in the same way it will be something we can't
           | determine right now that will push upon the constraints,
           | agreements and edge cases to push us towards another global
           | war.
        
           | e40 wrote:
           | My non-expert POV says the problem isn't global trade it's
           | unbalanced global trade. Everyone depends on China, so Xi has
           | little incentive to fear economical reprisals.
        
       | gjsman-1000 wrote:
       | First Crimea. Then Hong Kong. Then Afghanistan. Now Ukraine. Next
       | Taiwan.
        
       | amelius wrote:
       | EU and US response to Russia is totally ineffective. They should
       | have moved troops in from the beginning.
        
         | scyzoryk_xyz wrote:
         | And risked an enormous escalation with a nuclear power? That
         | would be reckless.
         | 
         | Don't get me wrong - I would also like to see decisive action
         | to this attack. But escalating a relatively local dispute into
         | a conflict between world powers would risk a WW. Moving in
         | troops into a non-NATO ally would also be extremely difficult
         | to explain on the world stage.
         | 
         | There probably is decisive action being implemented behind the
         | scenes right now, it's just not visible to the public.
        
           | amelius wrote:
           | Putin is very rational and predictive. The nuclear option is
           | not relevant.
           | 
           | He moved troops to the borders, waited for a response. And
           | this response was what he expected to be: just sanctions.
           | This gave him the "ok" to invade.
           | 
           | Sending troops would be a clear signal. Costly, but you can
           | also see it as a good exercise.
        
             | k0k0r0 wrote:
             | > Putin is very rational and predictive.
             | 
             | To be honest this war does make me doubt my assption that
             | Putin is very rational and predictive. What is the
             | rationale behind such a full-scale invasion? I don't see
             | benefits that outweight the costs. I am happy to hear them,
             | if they are any.
        
               | fosk wrote:
               | If Ukraine becomes a NATO member, Russia won't be able to
               | defend it's border from a conventional attack.
               | 
               | By looking at a map, this is quite evident.
        
               | cjbgkagh wrote:
               | CIA Director Bill Burns predicted exactly this back in
               | 2008 when George Bush declared Ukraine would eventually
               | join NATO.
        
         | jamesy0ung wrote:
         | US and EU are superpowers. Superpowers fighting would have
         | caused WW3.
        
         | EastSmith wrote:
         | Probably a long and slow game to win economically (as in the
         | First Cold War).
        
       | krazerlasers wrote:
       | I was personally hit by this back in 2015 as a grad student. We
       | called up our process gas supplier and asked for a k-cylinder of
       | Neon and were laughed off the phone, so we ended up running our
       | experiment on krypton for setup and used a lecture bottle of Neon
       | that a partner lab had left over for the few minutes of data
       | collection we needed to get our result[1].
       | 
       | At the time, we were cursing the semi industry for using up all
       | of the remaining Neon with their billion dollar operating
       | budgets...
       | 
       | [1]https://iopscience.iop.org/article/10.1088/0953-4075/49/15/1..
       | .
        
       | twarge wrote:
       | Here in NJ they separate neon from the air. This is not a
       | problem.
        
       | londons_explore wrote:
       | Neon is a byproduct of producing liquid nitrogen, oxygen and
       | other gas products.
       | 
       | Many other plants could start producing neon pretty easily. They
       | just haven't so far because neon isn't profitable to produce and
       | sell. But with a relatively-large but globally-insignificant
       | price increase it would be.
        
       | tgflynn wrote:
       | Can someone explain why neon is critical for "lasers used in chip
       | manufacturing" ? I don't think they'd be using He-Ne lasers, and
       | if they are I would think those could be replaced fairly easily
       | with solid-state lasers.
        
         | jbay808 wrote:
         | There could very well be HeNe lasers used as an interferometric
         | length standard in lithography equipment. There are some solid-
         | state lasers that could substitute for that role, such as NPRO
         | lasers, but they're much more expensive and not widely
         | produced.
        
         | perihelions wrote:
         | Deep-ultraviolet excimer lasers, I think (?). Not a domain
         | expert!
         | 
         | - _" Excimer laser gas mixtures are a combination of rare gases
         | (argon, krypton, xenon, or neon) and halogen gases (fluorine or
         | chlorine). The mixture of gases determines the wavelength of
         | DUV light produced. Argon+fluorine+neon (193nm) and
         | Krypton+fluorine+neon (248nm) are the two most common mixtures
         | used. In terms of volume; neon makes up approximately 96-97.5%
         | of the mixture."_
         | 
         | https://www.linde-gas.com/en/images/Gasworld%20Excimer%20Las...
        
         | krazerlasers wrote:
         | Somewhat counterintuitively, the primary gas species used in
         | excimer lasers are noble gasses. A typical gas mix for a 193nm
         | excimer laser would be ~97% neon and just a few percent of the
         | actual argon/fluorine excimer mix. [1]
         | 
         | Since you mentioned them -- as hard as it may be to believe --
         | HeNe lasers are only just beginning to be phased out in the
         | semi industry in the somewhat esoteric use case of precision
         | position measurement using interferometry. The output
         | wavelength of a HeNe lase is extremely stable--with a simple
         | feedback loop on the cavity length (ie, temperature) a HeNe
         | laser is essentially an atomic clock locked to the 473.612248
         | THz 5s2 - 3p HeNe line. Interferometers built around such
         | systems can accurately measure sub-nanometer displacements and
         | are able to achieve a lifetime absolute stability of better
         | than 10ppb--comparable to a rubidium atomic clock! [2]
         | 
         | [1] https://www.linde-
         | gas.com/en/images/Gasworld%20Excimer%20Las...
         | 
         | [2] https://www.repairfaq.org/sam/laserhst.htm#hstish3
        
       | [deleted]
        
       | perihelions wrote:
       | I've found the reason (I think) 90% of the world's semiconductor-
       | grade neon production is concentrated in one country. Per this
       | German government whitepaper about the noble gas industry: the
       | USSR massively overinvested in neon capacity in the 1980's, in
       | order to build space-based excimer laser weapons. Ukraine's
       | extant plants date (probably) to the 1980's; they're responsible
       | for a global oversupply that's persisted since the Cold War.
       | 
       | - _" Neon was regarded as a strategic resource in the former
       | Soviet Union, because it was believed to be required for the
       | intended production of laser weapons for missile and satellite
       | defence purposes in the 1980s. Accordingly, all major air
       | separation units in the Soviet Union were equipped with neon, but
       | also krypton and xenon, enrichment facilities or, in some cases,
       | purification plants (cf. Sections 5.4 and 5.5). The domestic
       | Soviet supply of neon was extremely large but demand low."_
       | 
       | - _" Following the collapse of the Soviet Union, global crude
       | neon production was approximately 500-600 million l/a (=
       | 500,000-600,000 m3/a). It was dominated by far by large-scale air
       | separation units associated with metallurgical combines in Russia
       | and Ukraine. Simultaneously, demand was estimated at around 300
       | million l/a (cf. Section 4.2). In the years between 1990 and
       | 2012, therefore, most crude neon was not purified, but released
       | into the atmosphere, because there was no customer base."_
       | 
       | https://www.deutsche-rohstoffagentur.de/DE/Gemeinsames/Produ...
       | (chapter 5.2)
       | 
       | For context, this would have overlapped with Energia/Buran's
       | launch of the _Polyus_ weapon (which was a megawatt CO2 laser).
       | 
       | https://en.wikipedia.org/wiki/Polyus_(spacecraft)
        
         | credit_guy wrote:
         | Given this piece of information, it's hard to see how
         | 500-600,000 m3/a could be used for the lasers used in chip
         | manufacture. Even if the whole world production drops by 99.9%,
         | there's probably going to be more than enough for those lasers
         | to continue working.
        
         | jessriedel wrote:
         | Did the US have a similar project? I'm aware of Project
         | Excalibur, but I think that was significantly more ambitious
         | (nuclear powered x-ray laser) and wasn't developed nearly as
         | far.
         | 
         | https://en.wikipedia.org/wiki/Project_Excalibur
        
         | [deleted]
        
       | Borrible wrote:
       | I'm more concerned about the probable loss of wheat supplies to
       | the near east, especially Turkey and Egypt. But of course,they
       | could just eat Revani or Basbousa instead.
        
         | londons_explore wrote:
         | Wheat is pretty easy to ship, and globally is usually
         | 'overproduced' due to farm subsidies. People won't be going
         | hungry just because one countries production stopped.
        
       | eanc wrote:
       | I'm glad to see we have the right reasons at heart for caring
       | about human events.
        
       | RspecMAuthortah wrote:
       | What would be some good stocks to invest to capitalize this?
       | Perhaps some trading in Russian/Ukrainian Stock Exchange? Is
       | there any significant US company listed in Nasdaq or NYSE in this
       | space?
        
         | dang wrote:
         | We detached this subthread from
         | https://news.ycombinator.com/item?id=30458819.
        
         | snemvalts wrote:
         | Don't put any money into both stock exchanges right now,
         | especially the russian one.
        
           | s1artibartfast wrote:
           | Why not? Seems like a great time. Buy low
        
             | Cthulhu_ wrote:
             | But will it go lower? Will it ever go back up higher? Will
             | the company you invest in go bankrupt, or its factories get
             | destroyed (intentionally or accidentally)?
             | 
             | I mean if you have the money and confidence by all means,
             | take the gamble, but keep in mind it's a gamble. Don't sell
             | your house, don't spend your reserves, don't bet everything
             | on one horse.
        
               | s1artibartfast wrote:
               | On the Ukrainian side, I think those are real risks. I
               | don't think there is chance of Russia loosing the war or
               | major Russian companies going under.
        
             | verve_rat wrote:
             | Because sanctions might mean you can't get your money back
             | from Russia.
             | 
             | And Ukraine might not exist as a country soon.
        
               | s1artibartfast wrote:
               | What money would go into Russia? Just buy on a US stock
               | exchange
        
               | jannyfer wrote:
               | You replied to a comment suggesting not putting money
               | into Russian or Ukrainian stock exchanges, asking why
               | not.
               | 
               | > Don't put any money into both stock exchanges right
               | now, especially the russian one.
               | 
               | Then you are asking what money would go into Russia...
        
               | s1artibartfast wrote:
               | Fair, but you can still buy Russian company stock on
               | other exchanges, pink sheets, ect.
        
             | coenhyde wrote:
             | Ever heard the phrase "don't try to catch a falling knife"?
             | We don't know how far this crisis will go. And we've only
             | just started on the path of serious sanctions.
        
               | s1artibartfast wrote:
               | Seems like the risk that Russia and Russian based
               | companies won't exist 5 years from now is low
        
               | kadoban wrote:
               | The risk that it's illegal or impossible to get your
               | money out is not as low.
        
               | s1artibartfast wrote:
               | I guess that is the speculative aspect. I think the risk
               | is extremely low that there will be sanctions on retail
               | stock investment 5 years from now.
        
               | wcoenen wrote:
               | The risk of the companies disappearing may indeed be low.
               | 
               | One historical fact does come to mind: the St. Petersburg
               | stock exchange reopened in 1917 (after being closed for
               | world war 1), then closed two months later because of the
               | Russian Revolution. It did not reopen and shareholders of
               | Russian stocks lost everything.
               | 
               | I don't see something like that happening today. But what
               | if Russia confiscates the shares of foreign shareholders?
        
       | Yuioup wrote:
       | Not anymore they're not. Time to find another supplier.
        
       | Guthur wrote:
       | This is not the reason.
       | 
       | Pure and simply Russia needs people, its dying.
       | 
       | Low birth rate, high death rate, little immigration to make up
       | the short fall (who wants to move to Russia :)), and to top off a
       | weak economy that will struggle to support a small less active
       | workforce. Interestingly Ukraine has pretty much the same
       | population problem.
       | 
       | This will be increasingly common problem for countries as
       | population growth slows.
        
         | javajosh wrote:
         | Aging population implies a decades spike in demand for elder
         | care. How does it imply an invasion?
        
           | Guthur wrote:
           | You need a strong services based economy to support an aged
           | population, this is not what russia has by a long shot.
           | 
           | Russia has few choices to fix this in timeline they'd have to
           | work with. Population demographics take a long time to solve
           | peacefully.
        
         | partiallypro wrote:
         | The entire Western world is declining birth rates. It's very
         | worrying. People complained about over population, but a nose
         | dive in birth rates can become near irreversable.
        
           | rodgerd wrote:
           | There is no lack of people in the world. This is only an
           | issue if you have some sort of deep-set racist need to only
           | be around people of a particular skin colour.
        
             | cik2e wrote:
             | The issue is what happens when you have a vast population
             | of childless retirees and not enough younger working people
             | to subsidize their existence.
        
         | replygirl wrote:
         | ukraine's population growth and birth rates have been negative
         | and below russia's for some time now, so annexation only makes
         | that worse per-capita.
         | 
         | it's not clear that a flattening of the growth rate is a bad
         | thing for quality of life or economic security, in spite of how
         | it affects an economy on paper
        
         | lurker619 wrote:
         | In the long term, perhaps climate change would make russia an
         | attractive destination for immigration:
         | https://www.youtube.com/watch?v=SY9NjD_5WWo
        
       | umvi wrote:
       | Russia's actions make me nervous that China will be emboldened to
       | do the same for Taiwan
        
         | seanw444 wrote:
         | It's a matter of when.
        
         | amelius wrote:
         | Yes this is scary. Chinese defense budget is considerable at
         | 1/3 of US budget.
        
           | serf wrote:
           | I always think that's a weird comparison when it's made; the
           | U.S. has a long history of hiding 'true-black' project
           | budgets in non-military (usually scientific) ledgers.
        
           | jthrowsitaway wrote:
           | Interesting. I wonder if China has the same amount of waste
           | and overspending in their military industrial complex.
        
             | atlantas wrote:
             | That's highly relevant! China may spend 1/3, but they are
             | more efficient. We probably waste 1/2 or more of our
             | spending. So it's possible we are closer to parity than it
             | would appear if solely comparing budget.
        
               | dcchambers wrote:
               | > they are more efficient.
               | 
               | Citation needed.
        
               | bobberkarl wrote:
               | Your F35 price is set by the market. Their FC-31 price is
               | set by the CCP.
        
               | stjohnswarts wrote:
               | They aren't more efficient. However, their costs
               | (especially for labor) are much lower than in the USA
               | except for stuff they can't source from government owned
               | sources.
        
         | nacs wrote:
         | I wonder if they'll also call the invasion a "peace keeping
         | operation".
        
           | stjohnswarts wrote:
           | Now you're thinkin! It's strange that this would fool anyone.
           | The US has been transparent and accurate with stories, and it
           | doesn't seem that USS... er Russia is firewalling off the
           | internet just yet. Although I think that is soon to follow so
           | that western stories will be limited except to those who
           | tunnel through. I had hope Putin was just doing some dick
           | swinging before April elections but it looks like I'm 100%
           | wrong. it's not like he was going to lose anyway or that he's
           | anything other than a dictator.
        
       | jcadam wrote:
       | I'm more concerned about Ukraine's wheat exports, personally.
       | Likely to become a critical issue much more quickly than neon
       | gas.
        
         | hnthrowaway0315 wrote:
         | Agreed. It exports a large amount of wheat.
        
         | baq wrote:
         | and corn. ZC=F today was crazy.
        
           | cwkoss wrote:
           | What does ZC=F mean?
        
           | nacs wrote:
           | Corn is less of an issue -- US has a massive surplus of corn.
        
       | tammer wrote:
       | well that explains a lot
        
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