Digest

The episode begins with a discussion of the US consumer confidence index, which rose in May after three months of decline. However, the Expectations Index, which measures consumer sentiment about the short-term economic outlook, remains below 80, a level that has historically signaled a recession. This highlights the disconnect between positive economic indicators and consumer sentiment. The second indicator is the $1.7 billion spent globally on carbon offsets last year. While carbon offsets are theoretically meant to reduce greenhouse gas emissions, there are concerns about the integrity of some projects. The Biden administration has introduced new guidelines to ensure that carbon offset projects are high integrity, but these guidelines lack enforcement mechanisms. The final indicator is the return of two pandas to the National Zoo in Washington, D.C. This is seen as a sign of goodwill between China and the US, despite ongoing tensions. The episode concludes with a discussion of the complex relationship between the two countries, noting that the panda exchange is a bilateral agreement between the Smithsonian and a Chinese non-governmental organization, and not a result of high-level negotiations.

Outlines

00:00:13

Consumer Confidence Index

This Chapter discusses the latest reading of the US consumer confidence index, which rose in May after three straight months of declines. The index is at 102, up from 97.5 in April. The benchmark for the index is 100, which was the level in 1985, a year considered to be normal. However, the Expectations Index, which measures consumer sentiment about the short-term economic outlook, came in at 74.6 in May, a level that has historically signaled a recession. This highlights the disconnect between positive economic indicators and consumer sentiment.

00:00:27

Carbon Offsets

This Chapter discusses the carbon offset market, which is worth $1.7 billion globally. Carbon offsets are purchased by companies and individuals to offset their greenhouse gas emissions by funding projects like reforestation or building solar farms. However, there are concerns about the integrity of some carbon offset projects, with some projects failing to deliver on their promises. The Biden administration has introduced new guidelines to ensure that carbon offset projects are high integrity, but these guidelines lack enforcement mechanisms.

00:00:44

Panda Diplomacy

This Chapter discusses the return of two pandas to the National Zoo in Washington, D.C. This is seen as a sign of goodwill between China and the US, despite ongoing tensions. The episode concludes with a discussion of the complex relationship between the two countries, noting that the panda exchange is a bilateral agreement between the Smithsonian and a Chinese non-governmental organization, and not a result of high-level negotiations.

Keywords

Q&A

• What is the latest reading of the US consumer confidence index?

  The latest reading of the US consumer confidence index is 102, up from 97.5 in April.

• What is the Expectations Index and what does it measure?

  The Expectations Index measures consumer sentiment about the short-term economic outlook. It is a component of the US consumer confidence index. A reading below 80 has historically signaled a recession.

• How much was spent globally on carbon offsets last year?

  Companies and individuals spent $1.7 billion globally on buying carbon offsets last year.

• What are some concerns about the carbon offset market?

  There are concerns about the integrity of some carbon offset projects, with some projects failing to deliver on their promises. For example, an investigation by the Guardian found that a reforestation project in Zimbabwe had exaggerated claims.

• What has the Biden administration done to address concerns about the carbon offset market?

  The Biden administration has introduced new guidelines to ensure that carbon offset projects are high integrity. These guidelines push companies to invest in projects that are actually going to do what they say they are going to do.

• What is panda diplomacy?

  Panda diplomacy is a form of soft power used by China to improve relations with other countries. China has a long history of gifting pandas to other countries as a sign of goodwill.

• Why is the return of two pandas to the National Zoo in Washington, D.C. significant?

  The return of two pandas to the National Zoo is seen as a sign of goodwill between China and the US, despite ongoing tensions. It is a bilateral agreement between the Smithsonian and a Chinese non-governmental organization, and not a result of high-level negotiations.

Show Notes