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September 16, 2022
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Better Ingredients, Better Crypto

The Story

Meet the new and improved Ethereum.

What do you mean?

Yesterday, Ethereum — the world's second-biggest cryptocurrency — finished its big software upgrade. Cryptocurrency's been pitched as having all sorts of benefits. While volatile, some hoped it would prove a good hedge against inflation. Turns out, maybe not. But many still see it as an attractive investment…except for the whole mining thing.

Do tell.

Crypto miners use computer systems to compete to solve puzzles. No, really. That process helps verify transactions or create new crypto. But it requires a ton of energy. Think: a single Ethereum transaction can require as much power as the average US household uses in a week.

How does Ethereum's update play into this?

The Merge will use 'proof-of-stake' instead of 'proof-of-work.' Goodbye miners, hello validators. They'll basically enter a lottery for a chance to sign off on new transactions and get new tokens. It's a lot more energy efficient than computers running for hours to solve puzzles.

Hence the upgrade.

Right. For years, dozens of developers worked on building the new system. Ethereum says the switch will cut its energy consumption by a whopping 99.95%. And could make its transactions more secure. But crypto experts worry any glitches in the new system could allow scammers to steal tokens.

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Many have branded cryptocurrency as the future of finance. But it's had a rough year. If other crypto companies eye sustainability, it could make it more attractive to investors.

And Also...This

Where laws have people's attention…

Indiana. Yesterday, its near-total abortion ban went into effect. The legislation, passed last month, doesn't allow elective abortions at any stage of pregnancy. Instead, there are exceptions for rape and incest (before 10 weeks), lethal fetal anomalies (before 20 weeks), and medical emergencies. Doctors who perform illegal abortions will lose their medical licenses. Gov. Eric Holcomb (R) says the new law "accomplishes" the goal of protecting life. Others are concerned about how the ban could impact a state with one of the worst infant and maternal mortality rates in the country. The ACLU — which won a case in Ohio earlier this week — is challenging the ban in court.

Montana. Yesterday, a judge blocked health officials from enforcing a state rule that would prevent transgender people from changing the gender on their birth certificate. Last year, state lawmakers passed a similar law restricting birth certificate updates. It required transgender people to have a "surgical procedure" before being able to make a change. But the law's language was vague so it didn't hold in court. Now, the judge is saying 'if that law didn't stand, this rule can't either.' And has ordered the state health department to return to a simplified process. Tennessee, Oklahoma, and West Virginia also have restrictions in place.  


Who's trying to keep what happens in the US, in the US…

President Biden. Yesterday, he signed an executive order expanding a Treasury committee's review process on foreign investments in the US. The nearly 50-year-old committee mostly focused on ensuring that foreign investors don't buy US firms or companies that could impact national security (like military contractors). But under Biden's new order, the gov can now look into whether a pending deal would expose Americans' data. And whether a foreign gov or company would exploit that information. The White House isn't pointing fingers and Treasury Secretary Janet Yellen says 'this is totally about national security.' But it comes as lawmakers have expressed concerns about China's involvement in tech.


What put a ring on Saturn…

A moon. Yesterday, a new study revealed that Saturn may have gotten its ring after a moon got too close and shattered. Scientists say the moon pieces went on to orbit Saturn and eventually flattened into the ring we see today. TBD if that was a proposal or the moon tried breaking up. Ba dum bum. 


Who's got the tennis world up in arms…

Roger Federer. Yesterday, the 20-time Grand Slam champ announced he's retiring from playing tennis professionally. The 41-year-old, who's suffered from injuries and surgeries, says his final event will be next week at the Laver Cup in London. Federer called it a "bittersweet decision" and thanked the world for making "the dreams of a young Swiss ball kid come true."


While mortgage rates hit the roof...

Viola Davis's performance in "The Woman King" is hitting all the right notes.


What Ye is no longer Bound 2…

Gap.

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Skimm Picks

Here are today's recs to help you live a smarter life…

1. Sneakers that were made to be seen. Saysh's versatile, Olympian-created kicks (hiii, Allyson Felix) deserve to be shown off. And their newest style takes things to the next level. Think: suede accents, satin laces, and hand-painted detailing. PS: Skimm'rs get 10% off with code SKIMM10.*

2. A modern way to beat inflation. Two words: fine art. This app has seen a 26.8% average net annualized return on its investments since 2019. Which is…a big deal. No wonder it has over 500K users. PS: Skimm'rs can skip the waitlist.*

3. The best sales to shop this week. Prep your closet for the season ahead with staples from American Eagle and Banana Republic. While you're at it — snag a few discounted beauty products from Ulta too. Win-win.

4. All your most pressing fashion dilemmas and how to solve 'em. From clothes that'll be comfy during pregnancy to sustainably made items that'll last you longer. Check out our Relatable Fashion Week recs — where we've pulled together tons of solutions for your everyday wardrobe issues.

Skimm'rs

We like to celebrate the wins, big and small. Let us know how your friends, neighbors, coworkers (and yes, even you) are making career moves, checking off goals, or making an impact in the community.

Hit the road…Jack C (NY). He's running the London marathon to raise money for Save the Children. In the long run, you can't go wrong investing in charities. 

(Some) birthdays…theSkimm's Eugenia Finizio (NY), theSkimm's Allison Mazzetti (NY), theSkimm's Eugenia Cassidy (NY), theSkimm's Julia Hall (NY), Anna Bailer (NJ), Alessandra Trifero (ES), Jacque Ryal  (NY), Hunter Walk (CA), Paull Young (CA), Ellie Baker (NY), Lauren Kagan (CT), Sheina G (NY), Bobby DeLong (VA), Brandi Hovizi (IL), Chloe Turnbull (FL), Rose Mihaly (SC), Emily Hawkins (MN)

PS: Paging all members of theSkimm. Reach out here for a chance to be featured.

Skimm More

This week on "Skimm This," we explore the debate surrounding members of Congress and the stock market. And whether congressional stock trading poses a conflict of interest with representatives' roles as public servants. Move over real housewives. We're invested in the real financial lives of Congress.

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Skimm'd by Rashaan Ayesh, Kate Gilhool, Julie Shain, and Mariza Smajlaj

Welcome to Firstpost's Weekly Foreign Policy Fix

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Sreemoy Talukdar brings you the essential cheat sheet on foreign affairs covering India and the world
Narendra Modi is in Uzbekistan for the SCO meet (pic above), a key Eurasian platform that has brought together the Indian PM and Chinese president Xi Jinping on the same stage, face-to-face, for the time first time since April 2020. As we track the various facets of this meet, we also look at Putin and Xi's changed dynamics, India's careful balancing act by sending naval fleet to Japan and Australia and the latest on Azerbaijan-Armenia war.
TOP FIVE NEWS UPDATES
Modi attends SCO summit in Samarkand, slated to meet Raisi, Putin in bilateral but skips formal dinner

It has been a very busy week for global diplomacy. We start off with a summit in Centra Asia at Samarkand, Uzbekistan, which drew global attention by the sheer dint of attendees, at a time when Russia is still stuck in the Ukrainian quagmire and thousands of Indian and Chinese troops are still facing each other, armed to the teeth, in high Himalayas. The Shanghai Cooperation Organisation (SCO) Council of Head of States meeting has provided a chance for prime minister Narendra Modi to share the stage with Chinese president Xi Jinping, and perhaps for the first face-to-face meeting since the standoff in Ladakh since April 2020. It also set the stage for Xi, who left Chinese shores for the first time in two years, to meet Vladimir Putin. India has so far given no indication that Modi will meet Xi, though hints have been dropped that a Modi-Putin meet is on the cards. Modi landed on Thursday night and according to an MEA release, was received at the airport by Uzbekistan PM Abdulla Aripov. "On Friday morning (local time), prime minister (Modi) will participate in the SCO Summit and will hold bilateral meetings with the president of Uzbekistan and some of the other leaders attending the summit," added the readout. Times of India reports that Modi "will have bilateral meetings with Putin, Uzbekistan president Shovkat Mirziyoyev and Iranian President Ebrahim Raisi, foreign secretary Vinay Kwatra neither confirmed nor denied a meeting with Xi. Modi and Xi will be together on Friday in 2 SCO meetings — a restricted session for member-states and another extended one with Observers and others invited — and also join a lunch for participating leaders." In his departure statement, Modi said, "I look forward to exchanging views on topical, regional and international issues, the expansion of SCO and on further deepening of multifaceted and mutually beneficial cooperation within the Organization. Under the Uzbek Chairship, a number of decisions for mutual cooperation are likely to be adopted in areas of trade, economy, culture and tourism." The Hindu reports that "Modi was the last of the leaders of eight SCO members and seven invitees to arrive here, and missed both the pre-summit dinner hosted by Mirziyoyev and tree-planting ceremony that all the leaders other than president Xi undertook, leading to speculation that his late arrival was meant to avoid any inconvenient "photo-ops" while relations with China and Pakistan remain tense." The SCO's permanent members are China, India, Russia, Kazakhstan, Kyrgyzstan, Tajikistan, Uzbekistan and Pakistan. Chinese state media Global Times has called Modi's attending of the summit, that has raised some questions in the United States an example of "independent diplomacy".

Putin admits Xi has 'concerns and questions' over Ukraine in first meeting since invasion

The other big news from SCO is the Xi-Putin meet, their first in-person schmoozing since the Russian invasion of Ukraine. The bilateral on the sidelines of the SCO summit took place on Thursday and it threw up a bunch of talking points. In televised remarks, Putin appeared to be going out of his way to show deference to Xi and reiterate Chinese positions. Putin said: "We highly value the balanced position of our Chinese friends when it comes to the Ukraine crisis," the Russian resident told Xi, whom he addressed as "Dear Comrade Xi Jinping, dear friend". In remarks that were later released by the Kremlin, Putin added, "we have firmly, in practice, abided by the One China principle. We condemn provocations staged by the United States and its satellites in the Strait of Taiwan." Interestingly, in an indication that Russia-China "no limits" partnership might not be as rosy as it appears, Putin also referred to some "concerns" and "questions" from the Chinese side that would point to some underlying tension in ties. Putin said he understood that Xi Jinping has "questions" and "concerns" regarding the Ukraine crisis and added that "during today's meeting we will certainly explain in detail our position on this issue." Politico points out, quoting China's version of the Xi-Putin meeting, that "there's not a single mention of 'Ukraine' in the readout. It also did not refer to the 'no-limits partnership." According to the Chinese readout released by the ministry of foreign affairs, Xi said China would "China will work with Russia to fulfill their responsibilities as major countries and play a leading role in injecting stability into a world of change and disorder." It does seem that Xi is unhappy with the way Putin's war has been going. However, Xi also "emphasized that China will work with Russia to extend strong mutual support on issues concerning each other's core interests, and deepen practical cooperation in trade, agriculture, connectivity and other areas." Noticeably, Xi skipped the pre-summit dinner Thursday that was attended by Putin. South China Morning Post reports that "Xi is reported to be meeting Indian prime minister Modi on Friday but the meeting has not been officially confirmed."

India, China complete disengagement at PP-15, Depsang, Demchok now in focus

The continuing standoff between Indian Chinese troops in Ladakh saw some positive developments this week with both sides disengaging from Patrolling Point-15 in the Gogra-Hot Springs region of eastern Ladakh Tuesday. Hindustan Times reports that the process involved "front-line troops moving back to rear locations, dismantling of temporary infrastructure created there and joint verification to assess the full implementation of the disengagement to follow, officials familiar with the matter said. This is the fourth round of disengagement between the Indian Army and Chinese People's Liberation Army (PLA) after the border row erupted in May 2020, and its completion has now turned the spotlight on frictions areas that are still unresolved along the Line of Actual Control (LAC) – Depsang and Demchok, said one of the officials cited above asking not to be named." The Hindu adds: "while India maintains that friction points at Demchok and Depsang remain, China has refused to accept them as legacy issues pre-dating the 2020 standoff. Demchok is one of the two mutually agreed disputed areas in Eastern Ladakh, while Depsang is one of the eight friction points in the area. In Demchok, while there are varying claims in the Charding La area, China has set up tents on this side of Charding nala." Possibly for this reason India hasn't sounded too enthusiastic over the latest development, with external affairs minister S Jaishankar saying that "I don't think I would say anything new… except I would recognise that we had disengagement at PP-15 and that disengagement as I understand was completed and that is one problem less on the border."

Modi at SCO; Navy conducts 'JIMEX' with Japan, 'Kakadu' with Australia; IAF completes 'Pitch Black'

While prime minister Narendra Modi is in Uzbekistan for the SCO meet, Indian troops are engaging with Japan, Australia for war games — indicating the panache with which India is balancing different geopolitical blocs. As Modi sits down with Putin, who is at war with the West, "India and Japan are now conducting the bilateral `JIMEX' naval combat exercise in the Bay of Bengal, even as an Indian warship and maritime patrol aircraft have also reached to take part in the multi-nation `Kakadu' wargames there… The two exercises are a reminder of the way India has stepped up defence ties with the other two `Quad' countries of Japan and Australia in a major way, which add to the already existing flurry of exercises with the US every year", reports Times of India. Indian Express adds: "The JIMEX began in January 2012 with a special focus on maritime security cooperation between India and Japan. Its last edition was conducted in October 2021 in the Arabian Sea. Rear Admiral Hirata Toshiyuki, Commander of the Escort Flotilla Four leads the Japan Maritime Self-Defence Force (JMSDF) ships that include the helicopter carrier Izumo and guided-missile destroyer Takanami. From the Indian Navy, stealth multi-role frigate INS Sahyadri and anti-submarine warfare corvettes INS Kadmatt and INS Kavaratti led by Rear Admiral Sanjay Bhalla, Flag Officer Commanding Eastern Fleet, are participating in the exercise." Meanwhile, "INS Satpura and a maritime patrol aircraft of the Indian Navy have reached Darwin on September 12 in Australia to take part in multinational Exercise Kakadu-2022, hosted by the Royal Australian Navy," The Print reports, quoting India's defence ministry. "The two week-long exercise, both in harbour and sea, involves ships and maritime aircraft from 14 navies. During the harbour phase of the exercise, the ship's crew will engage in operational planning interactions and sports activities with participating navies," says the report, quoting a statement. Earlier on Tuesday, an Indian Air Force contingent flew home from Australia. For the last three weeks, it has been taking part in an air warfare drill, Exercise Pitch Black. Indian Express reports, "Organised by the Royal Australian Air Force (RAAF), Exercise Pitch Black this year included air forces from 17 countries including India, and saw participation of 100 aircraft and 2,500 personnel operating primarily from RAAF Bases in Darwin, Tindal and Amberley."

Azerbaijan, Armenia declare ceasefire after another eruption of border clashes in Nagorno-Karabakh

In 2020, Azerbaijan and Armenia fought a fierce war for more than six weeks in what came to be known as the Nagorno-Karabakh conflict, resulting in the death of over 5000 soldiers from both sides. That war has erupted again. BBC reports that since Monday more than 100 Armenian soldiers have been killed in border clashes with Azerbaijan, quoting Armenian prime minister Nikol Pashinyan. "Azerbaijan said on Thursday that 71 of its troops had been killed, in fighting which both sides blame on the other. It is the latest in a series of long-running conflicts fought between the two former Soviet republics over the disputed Nagorno-Karabakh region." In 2020, says Reuters in a report, "Azerbaijan had won significant territorial gains in and around Nagorno-Karabakh. The fighting was ended by a Russian-brokered ceasefire, but skirmishes have erupted periodically since then despite the presence of Russian peacekeepers. In the latest flare-up, Yerevan said several Armenian towns were attacked overnight. Azerbaijan said it was responding to Armenian provocations." On Tuesday, Russia announced "that it had negotiated a ceasefire following fighting that killed at least 100 Azerbaijani and Armenian troops. But on Wednesday, Armenia's Defence Ministry said "the enemy re-launched its attack by using artillery, mortar, large-calibre firearms in the directions of Jermuk, Verin Shorzha" on the border." Associated Press reports that another peace attempt has been made and quoting Armen Grigoryan, the secretary of Armenia's Security Council, reported the announcement of a truce on Wednesday. A previous cease-fire that Russia brokered Tuesday quickly failed. "Several hours before Grigoryan's announcement, Armenia's Defense Ministry reported that shelling had ceased but it didn't mention the cease-fire deal. The cease-fire declaration followed two days of heavy fighting that marked the largest outbreak of hostilities between the two longtime adversaries in nearly two years. Late Wednesday, thousands of protesters took to the streets of Armenia's capital accusing Prime Minister Nikol Pashinyan of betraying his country by trying to appease Azerbaijan and demanding his resignation."

 
 
 
 
TOP ANALYSES OF THE WEEK
Chinese public impressed by Modi's foreign policy

MS Ptahibha of Manohar Parrikar Institute for Defence Studies and Analyses, writes in Indian Express that Chinese public opinion about India, and especially Prime Minister Modi, has changed in the wake of India's principled stand on the Ukraine crisis. India's assertion of an independent foreign policy has generated much discussion online in China.

What Modi's SCO attendance says about India

Hindustan Times in an editorial argues that prime minister Modi's presence in the SCO meet at Samarkand shows India is engaging with the world on its own terms.

Putin discovers 'limits' of Xi's friendship

Clara Ferreira Marques writes in Bloomberg that in his first meeting with his Chinese counterpart Xi Jinping since the invasion of Ukraine, Russia's leader Vladimir Putin got mostly hot air.

Ideology of 'nonalignment' dead long ago

Western leaders should ignore the widespread rhetoric about a global south "unwilling to choose" and focus instead on the individual concerns, vulnerabilities, and interests of key states in the developing world, C Raja Mohan of Asia Society Policy Institute writes in Foreign Policy.

Xi will increasingly make China look like North Korea

Cai Xia, who was a professor at the Central Party School of the Chinese Communist Party from 1998 to 2012 before she was expelled from the party and now resides in the US, writes in Foreign Policy that while Xi may be able to secure a third term as president despite growing elite dissent within the party, he will China look increasingly like North Korea.

'PP-15 disengagement a no-win for either side'

Lieutenant General Rakesh Sharma (retd) tells Archana Masih of Rediff in an interview that the disengagement from PP-15 in Ladakh is a "no-win situation for either side."

US back to old game of 'balancing' India and Pakistan

Former Indian foreign secretary Kanwal Sibal writes in News18 that America's contention, that in providing "upgrades" to Pakistan F-16 fleet it is not changing "the military balance in the region, as stated in the Stae Department's release, suggests that the idea of 'balancing' India and Pakistan has resurfaced in US diplomacy in the region."

We need a rethink on engineering of free-flowing rivers

On the Teesta river impasse between India and Bangladesh, Sanjib Baruah, professor of political studies at Bard College, New York, writes in Indian Express that "it is time we consider having a moratorium on the engineering of the world's last remaining free-flowing rivers–some of which fortunately, are in these parts of the world -- and rethink the framework of regional cooperation on water-related matters."

India, Japan ties set to get deeper

Sujan Chinoy, a former ambassador to Japan, writes in Indian Express that India's emergence as the fifth-largest as well as the fastest-growing economy in the world will definitely ensure a further quantum leap in strategic ties with Japan.

India has hit geopolitical sweet spot

"India has a lot going for it, with its economy doing relatively well and its diplomacy bringing the West closer despite some points of difference, even as China falls out of favour with the West', argues Harsh Pant, professor of international relations, King's College London, in Livemint.

PODCAST
What is China's gameplan after PP15 disengagement?

In light of Indian and Chinese troops disengaging from Gogra Hot Springs area in Ladakh, in this episode of StratNews Global's podcast, host Nitin Gokhale speaks to China watcher Jayadeva Ranade and former commander of 14 Corps Lt Gen. Rakesh Sharma (Retd) to get a sense of the Chinese game plan and what lies ahead.

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