June 14, 2022

Happy birthday, bourbon! As legend goes, the first batch of bourbon was made in Kentucky's Bourbon County on June 14, 1789. The maker of the maize-based liquor was a Baptist minister named Reverend Elijah Craig. Each bottle was blessed in the name of the father, son, and holy spirits.

In today's edition:

• Wall Street's un-bear-able day
• Ancient frog bones
• Sports Treasure Hunt

 Key Stories

Google Engineer Says AI Is Sentient

A Google engineer was put on leave after claiming that an artificial intelligence (AI) chatbot is sentient

• The engineer, Blake Lemoine, posted a series of text messages that he believes demonstrate that the program, LaMDA, has achieved sentience
• Lemoine told Google execs that LaMDA is the equivalent of a young child and may have a soul. He said engineers should need consent to run tests on it
• Google’s ethics team said it reviewed the situation and decided “the evidence does not support his claims.” Lemoine was put on leave for violating Google’s confidentiality policy

• Do you think computers can be sentient? Let us know in today's poll of the day.

Wall Street Enters Bear Market

Wall Street entered into a “bear market” on Monday after the S&P 500 dropped 3.9%

• A bear market occurs when a major stock index, such as the S&P 500 or the Dow, drops 20%+ from its high point. They often precede economic slowdowns
• At closing, the S&P was down 21.8% from its record-high on Jan 3. Tech stocks, startups, and cryptos have taken the biggest beatings lately, as investors move away from riskier investments
• Markets are spooked by high inflation and worries that the Fed, the US’s central bank, may cause a recession by raising interest rates to fight inflation

• Fertilizer prices, which indicate where food prices are headed, are 24% below the record high set in March, while container shipping rates are down 26% since an all-time high, set in September. There is generally a lag between input prices dropping and lower prices in stores

No "Double Jeopardy" for North Americans

The US Supreme Court ruled that Native Americans tried in certain tribal courts can also be tried in federal court

• The defendant, a Navajo Nation man accused of rape, was convicted in a Court of Indian Offenses before being tried and sentenced again in federal court
• He claimed that the second ruling violated the US’s “double jeopardy” clause, which prevents US citizens from being tried twice for the same crime
• The Supreme Court disagreed, citing the fact that tribes are sovereign. The US retains the right to try him again, the court stated

• "Because the Tribe and the Federal Government are distinct sovereigns,” Justice Amy Coney Barrett wrote, “[the second ruling] did not offend the Double Jeopardy Clause”

ALS Treatment Approved in Canada

Canada approved Albrioza, an experimental ALS drug

• ALS, also known as Lou Gehrig’s disease, is a rare neurological disorder that results in the loss of motor neurons, leading to muscle deterioration. It is fatal, usually within 2-5 years of diagnosis
• In March, the US FDA ruled that the drug was safe but that there was not sufficient evidence of its effectiveness. The study Canada based its decision on found that those who took the drug gained 6.5 months before hospitalization or death
• A portion of the drug’s funding came from the Ice Bucket Challenge, which raised $115M for ALS in 2014

• Many US doctors and ALS support organizations have asked the FDA to conditionally approve the drug, citing its potential to help ALS patients which few drugs can. The FDA is expected to make a final decision by September

• Nuke kids on the block: The global nuke arsenal will increase this year for the first time since the Cold War, according to one of Europe's top defense think tanks
• True love: Jack Daniel's and Coca-Cola are partnering to make Jack & Coke in a can. The drink will generally contain 5% alcohol
• Runnin' up that chart: Kate Bush's 1985 hit "Running Up That Hill" has soared to #4 on the Billboard Hot 100 after a Stranger Things feature

 What do you think?

See yesterday's results below the Wrap!

 Roca Wrap

On March 13, 1968, oil explorers hit gold on the northern tip of Alaska: They discovered the North Slope basin, one of the world’s largest oil deposits. To date it’s produced over 15B barrels of oil -– and made Alaska rich.

The Trans-Alaska Pipeline – which connected oil fields on Alaska’s north with ports on the south – was built soon after the discovery, and the money came flooding in. The Alaskan government gave out the initial drilling leases for $900M, but spent all of that money within a few years. 

To avoid a repeat of that and to ensure that oil money would outlast the oil itself, Alaskans voted in 1976 to create a fund to save and reinvest future oil income. At least 25% of oil royalties – which companies pay for oil extracted from Alaskan land – would have to be invested into the Permanent Fund.

In 1977, the fund received its first deposit – $734,000. In the years after, the state debated what to do with the money: Keep investing it to grow the cash on hand, or spend it to stimulate the Alaskan economy?

The debate continued as the fund grew. In 1980, another $900M was deposited. 2 years later, all Alaskan citizens received a $1,000 check – the first of many oil dividends. By 1990, successful investments were causing the fund to grow on its own, while $1B in surplus oil revenue was being added each year. 

Overseeing the Alaska Permanent Fund is the Alaska Permanent Fund Corporation (APFC), a state-owned corporation that oversees various state investment organizations. These include the Alaska Permanent Fund and the Alaska Mental Health Trust fund, which provides mental health services to all Alaskans and is the only state organization of its kind in the US. 

Today, the fund operates simply: It takes oil revenues and reinvests them while paying out dividends to Alaska residents. Those dividends are cash deposits eligible to almost all Alaskans. The amounts range from $800 to $2000+, depending on the price of oil.

To receive the 2021 $1,114 payment, residents must have lived in Alaska for all of 2021, intend to stay in Alaska for 2022, and not have residence in another state or country. They also can not have been sentenced or incarcerated for a felony in 2021. 

Today, the fund holds $81B. For context, Alaska’s entire economy is worth $51B. The figure equates to about $70,000 per Alaskan.

With oil prices at record highs, Alaskans are in for a nice bonus this year. 

 Roca Clubhouse

Yesterday's Poll:

Yesterday's Question:

 Final Thoughts

Spread the Wave!