Harry Chen Thinks Aloud

According to the data published by the US National Oceanic and Atomspheric Administration (NOAA), the concentration of carbon dioxide in the atmosphere has reached a record high.

Scientists at the Mauna Loa observatory in Hawaii say that CO2 levels in the atmosphere now stand at 387 parts per million (ppm), up almost 40% since the industrial revolution and the highest for at least the last 650,000 years.

The worst part of the news, though is expected, is that the situation is worse than scientists have previously predicated. The Earth is losing its natural ability to soak up CO2 each year.

Climate models assume that about half our future emissions will be re-absorbed by forests and oceans, but the new figures confirm this may be too optimistic. If more of our carbon pollution stays in the atmosphere, it means emissions will have to be cut by more than currently projected to prevent dangerous levels of global warming.

Source: World CO2 levels at record high, scientists warn, guardian.co.uk

News from the Hong Kong Cable TV reports that an Air China pilot was unable to communicate with the control tower in English minutes before landing at the JFK airport. Watch this YouTube video (in Cantonese).

In the interview, an Air China spokesperson blames the incident on the air traffic control agent accusing the agent failed to use the standard language. Some readers of the Virtual China blog believe that it’s the fault of the pilot. I’m actually sympathetic for the pilot but very angry at the officials.

First, I believe the pilot was doing the best he can. Learning English for the Chinese is not easy. The same is true for Americans learning Chinese. When American pilots flying into China, I doubt too many of them can communicate with the air traffic control agents in Chinese. Should Chinese force all American pilots to learn Chinese? For that said, I suggest serious English language training courses for the Air China pilots. Because English is a widely used language in the world today, which is something we can’t change overnight, it’s necessary for pilots to be fluent in English, especially for those who flying into the US.

Second, pilots unable to communicate the US control tower in English is the fault of the Air China officials and the pilot training agencies. They failed to set tough standards and provide adequate education. When serious incidents occurred, like the one reported in the news, not only they don’t admit fault, but also they blame the fault on other people. This is extremely irresponsible.

Third, meanwhile, American agencies, e.g., JFK control towers, should provide adequate language translation support in case foreign pilots do not speak fluent English. This is not a matter of national pride that everyone must speak English, it’s a matter of passenger’s life. If pilots failed to follow instructions this time, an accident may have happened and people may have died.

Let’s not putting people’s lives in danger because some people are “lost in translation”.

CNN video teaches a few words and phrases used by teens today.

• Break your crayons: making someone upset
• Agnorant: someone who is arrogant and ignorant at the same time
• Kraft singles: $1 bills

Watch this video and also learn the meaning of “Leave Britney alone”…

The price of New York City apartments skyrocketed in the past decade. Not only people are paying millions for apartments, they also spend millions to renovate and remodel them. While money may get people expensive apartments, but it can’t eliminate the mental stress of home renovation.

Julia Kim rapped her spiked Gucci heels along the floor of a Midtown furniture showroom earlier this year as she approached a $30,000 custom wraparound couch that will be the centerpiece of the Manhattan co-op apartment she plans to share with her fiancé, Stephen Rushmore.

This purchase was just one of many steps in the journey that began more than a year ago when Rushmore [and] Kim decided to buy a duplex just off Park Avenue for $6 million.

Indeed, even after paying top dollar for a luxury apartment, most buyers see the need for more work. Like Rushmore and Kim, they often embark on costly and lengthy renovations intended to reflect not only their own taste but also their ambitions to find a perch in the social and economic swirl of today’s Gilded Age.

In fact, it’s more stressful to own expensive homes because you have to do extra works in order to live up to the social expectation.

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Spotted on digg.

As home prices drop and interest rates increase, many homeowners are facing possible foreclosure on their homes. Politicians in Washington is debating whether or not the Government should try to help those homeowners.

My opinion is as the follows.

The Government shouldn’t rescue those homeowners who are unable to pay mortgages because they have been taking out risky loans to fund their luxury life styles or to buy houses that they can’t really afford. Doing so will only encourage similar behaviors to repeat in the future. People need to learn how to manage their personal finance.

On the other hand, the Government should rescue the US economy if it’s heading towards a wrong direction. For example, the Government should interfere the US credit market if businesses are finding hard to borrow money due to the market credit crunch. The economy is the backbone of this country, and it has the ability to affect the economy of other countries. Ensuring a healthy US economy should be the top most priority of the Government.

Some people may ask “shouldn’t the Government help homeowners because a negative housing market will discourage consumer spendings and subsequently bring down the US economy?” My answer is again no. The growth of our economy shouldn’t solely depend on consumer spendings, especially those spendings came from money borrowed against home equities. If the economy is healthy, any pullbacks in consumer spendings will only be temporary. Eventually, consumer confidence will be rebuilt as the time pasts.

Updated: Aug. 31, 2007

I’m not alone in thinking that the Government should leave the sub-prime mess alone, and shouldn’t bail out those who can’t pay their mortgages.

See Prof. Jeff Cornwell’s blog.

The US Dollar is trading historically low against many major currencies. Few questions come to my mind: (1) How did we come to this situation? (2) Who can and can’t benefit from a cheap US Dollar? (3) Should small investors be worried about a cheap US Dollar?

How did we come to this situation?

According to The Economist article, the US Dollar is trading historically low for three key reasons: high oil prices, a weak US economy and a troubled US credit market.

Who can and can’t benefit from a cheap US Dollar?

Individuals and companies benefit differently from a cheap US Dollar. For individuals, tourists travel in the US from countries with a strong currency can benefit. Travelers from Canada and EU find everything to be cheaper in the US. On the other hand, US tourists who travel abroad face a complete oppose situation — everything is more expensive abroad than at home.

A cheap US Dollar can help US companies and depress the economy of foreign countries. US businesses with an international market can benefit greatly from a cheap greenback. This is because the price of their exports are now more competitive than those from countries with a strong currency. Developing countries whose economy depend on exports to the US may be hurt by a cheap US Dollar — a weak US economy will demand less imports.

Should small investors be worried about a cheap US Dollar?

In general, small investors in the US shouldn’t be worried about a cheap US Dollar, assuming that their investment portfolios are diversified and are aimed for long-term investment. Currency exchange rates are cyclical — the US Dollar was the king in the late 90’s. It’s only a matter of time for the US Dollar to come out of its low (the question is when). Meanwhile, I think investors should continue to invest in the US stock market, in particular in S&P 500 companies. The profits of US national business may be hurt by a weak US economy, but multinationals should do relative well because of their diversified international markets.

These days investors of the stock market are happy because the Dow is at its all time high. However, US consumers are not very happy because of rising energy costs, grim housing markets and possible inflation and stagflation crisis.

This situation looks odd to many people. If the US economy is doing well, shouldn’t it benefit both investors and consumers (remember the age of dot-com)? If the US economy is not doing well, how is it possible for many companies to report record earnings?

Answers to these questions can be found in Robert Reich’s podcast — Wall Street’s up, Main Street’s down.

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