November 19, 2015
Future business activity will reflect two economic realities: 1) the over-indebted state of the U.S. economy and the world; and 2) the inability of the Federal Reserve to initiate policies to promote growth in this environment. ... The first reality has been widely acknowledged, as developed and developing countries both have debt-to-GDP ratios sufficiently large to argue for a slowing growth outlook. ... The second economic reality is the failure of the Federal Reserve to produce economic progress despite years of wide-ranging efforts. The Fed’s zero interest rate policy (ZIRP) and quantitative easing (QE) have been ineffectual, if not a net negative, for the economy’s growth path. ... The evidence speaks for itself: the Fed cannot print money. The Fed does not have the authority or the mechanism to print money. They have not, they are not and they will not print money under present laws.
Wang Jianlin, one of China’s richest men, is creating a rival to the American dream factory, from scratch. ... Most americans probably associate Qingdao, China, with beer. In 1903, German and British settlers founded the Tsingtao Brewery there, and Teutonic influence can still be seen in some of the architecture in older parts of town. But the city’s temperate climate and coastal setting, almost 350 miles north of Shanghai, lend it an atmosphere that more strongly recalls Southern California, an association lately reinforced by the new buildings going up on the coastline southwest of town. There, on a steep green hillside that overlooks the Yellow Sea, you’ll see a gigantic sign with white freestanding characters: 东方影都, which translates literally as “Eastern Cinema.” It’s like the Hollywood sign that has overlooked Los Angeles since 1923, only bigger. ... On a sprawling 1,200-acre site at the foot of that hill, a gaggle of construction cranes is noisily building Qingdao Oriental Movie Metropolis, a vast development that includes a movie studio, a theme park and entertainment center, a 4,000-room resort-hotel complex, a shopping mall, a 300-berth yacht club, a celebrity wax museum, and a hospital. The Dalian Wanda Group, China’s biggest commercial real-estate developer and the world’s largest owner of movie theaters, has committed $8.2 billion to the project. Wanda Studios Qingdao is the linchpin of the new development, and when it opens its doors in April 2017, it will be one of the largest and most technologically advanced feature-film-production facilities in the world, encompassing 30 soundstages; an enormous temperature-controlled underwater stage; a green-screen-equipped outdoor stage that’s still larger, at 56,000 square feet; a permanent facsimile of a New York City street; and much more. ... In 2011, the research firm IBISWorld named postproduction one of America’s “dying industries,” along with DVD, game, and video rental; newspaper publishing; and photofinishing. ... In 2012 alone, the country added 10 theater screens a day; it now has more than 28,000. Only the U.S., with close to 40,000 screens, has more, and Wanda owns more than 5,000 of those.
How an experimental unit transformed the intelligence community. ... Tenet decided to form a group of contrarian thinkers to challenge conventional wisdom in the intelligence community and mitigate the threat of additional surprises through “alternative analysis.” On that evening, his instructions were simple: “Tell me things others don’t and make [senior officials] feel uncomfortable.” ... It is devoted to “alternative analysis,” which includes techniques like “what ifs,” Team A/Team B exercises, and premortem analysis, all of which are used to identify holes in a plan, model an adversary to understand their weaknesses, or consider all of the conceivable ways a plan can fail beforehand. ... “Given that our mandate is ‘to provoke thought,’ the scope of our readership is a useful metric. In the past couple of years, we have watched Red Cell readership in our online publications grow significantly. Red Cell products have led to vigorous virtual discussions among readers within the [intelligence community]. In addition, we receive a good number of requests for Red Cell products from a diverse set of senior policymakers, suggesting that Red Cell products spark interest and are useful.”
The National Football League wants to put at least one franchise in Los Angeles by the start of next season. Kroenke, the owner of the St. Louis Rams and arguably the most powerful owner in sports, wants it to be his. He’s ready to build a $1.9 billion stadium southwest of downtown. He has big backers. Jones, who built an 80,000-seat cathedral to excess known as “Jerry’s World” for his Cowboys in 2009, admires the grandeur of Kroenke’s plan and has sided with him against owners from the San Diego Chargers and Oakland Raiders, who want to build and share a stadium in the L.A. suburb of Carson, bringing two franchises to the city at once. ... Kroenke aims to turn a demolished horse racing track and parking lot in Inglewood, Calif., into an 80,000-seat stadium with a latticed open-air roof; an adjacent 6,000-seat arena; 1.7 million square feet of retail and office space; 2,500 residential units; and a hotel. To put the Rams there, he’ll have to secure the approval of at least 24 of 31 of his fellow NFL owners and give a stiff arm to his native Missouri. ... Along with the Rams, Kroenke owns the National Basketball Association’s Denver Nuggets, the National Hockey League’s Colorado Avalanche, Major League Soccer’s Colorado Rapids, and two-thirds of the English Premier League soccer club Arsenal—all separate from his wife Ann’s $3.8 billion inheritance.