Santa’s New Home: The North Pole is Moving to Russia
The North Pole is moving and quickly. Is someone stealing Christmas?
It is not the Grinch or Vladimir Putin that is stealing Santa’s workshop, but instead it’s the natural processes of the Earth that are moving the North Pole. In fact, since scientists have been tracking the anomaly in the Arctic, the North Magnetic Pole has been shifting towards Russia.
So why exactly is the pole moving, and what does it mean?
Charting a Course: Magnetic North
A compass always points towards the North Magnetic Pole. Maritime and airplane navigation systems, defense systems, and even smartphones depend on accurate magnetic readings.
This magnetism has been long known, but the true origins of this force were poorly understood. In one of the first maps of the Arctic by Gerardus Mercator, the centerpiece of it was massive rock located exactly at the pole, Rupus Nigra et Altissima, or “Black, Very High Cliff.”
Most people thought that this rock formation was magnetic, which provided an easy explanation for why compasses point north. This did not convince Mercator, so he included a different rock, which he labeled the “Magnetic Pole.”
Mercator was right about the general location of Magnetic North, but he did not have the tools we have today to understand how the anomaly moves. The North Magnetic Pole is a spot on the top of the planet where the Earth’s magnetic ﬁeld lines converge and drive straight into its core.
As it turns out, the Earth’s physical structure is behind all this magnetic shifting. The planet’s inner core is made of solid iron, while surrounding that is a molten metallic outer core. It’s from here that heat escapes, creating electric currents in the conductive iron alloys in the core.
In other words, the processes that create the magnetic effect are far more complex — and occur way deeper in the planet — than Mercator could have ever imagined.
The Dynamo Effect
The Earth itself spins on its axis. The inner core spins as well, and it spins at a different rate than the outer core. This creates a dynamo effect that enables the Earth’s magnetic field.
Satellite data tracking the Earth’s magnetic field indicate that the pole is moving faster across the Arctic than previously recorded. While it’s hard to estimate an exact date by which the North Pole will lie in Russia (due to contested geographic claims in the Arctic), it will eventually get there.
What surprises scientists is the rate at which the movement has increased in recent history:
This is happening because of a push and pull between two unusually strong magnetic patches in the Earth’s outer core. One patch is under Canada while the other is beneath Siberia.
The North Magnetic Pole has historically lain within Canadian borders because of stronger pull of the Canadian magnetic patch, but that is changing rapidly.
The Evidence: How Do We Know What We Know?
Scientists can study the phenomenon of moving poles by examining the rocks lying on the ocean floor that captured magnetic traces of previous orientations of the Earth’s magnetic field.
According to the geological record, the last time the poles switched was ~780,000 years ago, and it has happened about 400 times in 330 million years. Each reversal takes roughly a thousand years to complete. The field has weakened about 10% in the last 150 years. Some scientists think this is a sign of a flip in progress.
Technology is advancing and providing new tools for scientists to study this phenomenon. In 2013, the European Space Agency (ESA) launched the SWARM mission to study the Earth’s magnetic field using satellites. This will provide data for modeling the geomagnetic field and its interaction with other physical aspects of Earth, offering a look inside the Earth from space.
Happy Holidays from Visual Capitalist
Just like Santa going down the chimney of every home to deliver presents to all the girls and boys, Visual Capitalist wants to deliver a better understanding of the world we live in, so we can better appreciate how amazing it is. This is our small present to the world.
Happy Holidays to all, and a prosperous New Year.
12 Ways to Get Smarter in One Infographic
Highlighting and breaking down the 12 most useful and universal mental models that will make you smarter and more productive.
12 Ways to Get Smarter in One Infographic
View the high resolution version of today’s graphic by clicking here.
The level of a person’s raw intelligence, as measured by aptitude tests such as IQ scores, is generally stable for most people during the course of their adulthood.
While it’s true that there are things you can do to fine tune your natural capabilities, such as doing brain exercises, solving puzzles, and getting optimal sleep—the amount of raw brainpower you have is difficult to increase in any meaningful or permanent way.
For those of us who constantly strive to be high-performers in our fields, this seems like bad news. If we can’t increase our processing power, then how can we solve life’s bigger problems as we move up the ladder?
The Key: Mental Models
The good news is that while raw cognitive abilities matter, it’s how you use and harness those abilities that really makes the difference.
The world’s most successful people, from Ray Dalio to Warren Buffett, are not necessarily leagues above the rest of us in raw intelligence—instead, they simply develop and learn to apply better mental models of how the world works, and they use these principles to filter their thoughts, decisions, strategies, and execution.
This infographic comes from best-selling author and entrepreneur Michael Simmons, who has collected over 650 mental models through his work. The infographic, in a similar style to one we previously published on cognitive biases, synthesizes these models down to the most useful and universal mental models that people should learn to master first.
Concepts such as the 80/20 rule (Pareto’s principle), compound interest, and network building are summarized in the visualization, and their major components are broken down further within the circle.
Mental Model Examples
Example #1: Pareto’s Principle (80/20 Rule for Prioritization)
In a recent Medium post by Simmons, he highlights a well-known mental model that is the perfect bread crumb to start with.
The 80/20 rule (Pareto’s principle) is named after Italian economist Vilfredo Pareto, who was likely the first person to note the 80/20 connection in an 1896 paper.
In short, it shows that 20% of inputs (work, time, effort) often leads to 80% of outputs (performance, sales, revenue, etc.), creating an extremely vivid mental framework for making prioritization decisions.
The 80/20 rule represents a power law distribution that has been empirically shown to exist throughout nature, and it also has huge implications on business.
If you focus your effort on these 20% of tasks first, and get the most out of them, you will be able to drive results much more efficiently than wasting time on the 80% “long-tail” shown below.
Example #2: Metcalfe’s Law (Network Building)
Metcalfe’s Law is one of network effects, stating that a network’s value is proportional to the square of the number of nodes in the network.
From a mental model perspective, this is a useful way to understand how certain types of technology-driven businesses derive value.
If you have a smart grid that is only connected to one power source, that’s alright—but one connected to many different energy sources and potential consumers is much more useful for everyone on the grid. Each additional node provides value for the rest of the connections.
This mental model can be applied outside of strict technology or business terms as well.
For example, if you build a personal network of connections, each additional relationship can provide more value to the other people in your network. It’s the same principle that Harvard or other prestigious universities operate on: the more value a student can get from the alumni network, the higher price they can charge for tuition.
It’s hard to compete with a fully formed network at scale, as they create massive economic moats for the owner. Modern social networks and messaging apps like Facebook, Instagram, LinkedIn, TikTok, WhatsApp, and Snapchat all operate with this in mind.
The Power of Mental Models
These are just two examples of how powerful mental models can be effective in making you think clearer and work smarter.
If you want to be a top performer, it’s worth looking into other mental models out there as well. They can help you better frame reality, so that you can harness your intelligence and effort in the most effective way possible—and it’ll allow you to deliver results along the way.
This post was first published in 2018. We have since updated it, adding in new content for 2021.
Visualized: The Biggest Ponzi Schemes in Modern History
Learn the stories behind some of the world’s biggest Ponzi schemes in this illustrative infographic timeline.
The Biggest Ponzi Schemes in Modern History
Some things simply sound too good to be true, but when money is involved, our judgement can become clouded.
This is often the case with Ponzi schemes, a type of financial fraud that lures investors by promising abnormally high returns. Money brought in by new members is used to pay the scheme’s founders, as well as its earlier investors.
The scheme is named after Charles Ponzi, an Italian who became infamous in the 1920s for claiming he could double his clients’ money within 90 days. Since then, numerous Ponzi schemes have been orchestrated around the globe.
To help you learn more about these sophisticated crimes, this infographic examines some of the biggest Ponzi schemes in modern history.
Ponzi Schemes in the 20th Century
The 1990s saw a number of large Ponzi schemes worth upwards of $500 million.
|Country||Date Ended||Name of Scheme and Founder||Value (USD)|
|Belgium||1991||Moneytron, Jean-Pierre Van Rossem||$860M|
|Romania||1994||Caritas, Ioan Stoica||$1B - $5B|
|Russia||1994||MMM, Sergei Mavrodi||$10B|
|U.S.||1997||Great Ministries International, Geral Payne||$500M|
In many cases, these schemes thrived by taking advantage of the unsuspecting public who often lacked any knowledge of investing. Caritas, for example, was a Ponzi scheme based in Romania that marketed itself as a “self-help game” for the poor.
The scheme was initially very successful, tricking millions of people into making deposits by offering the chance to earn an 800% return after three months. This was not sustainable, and Caritas was eventually unable to distribute further winnings.
Caritas operated for only two years, but its “success” was undeniable. In 1993, it was estimated that a third of the country’s money was circulating through the scheme.
Ponzi Schemes in the 21st Century
The American public has fallen victim to numerous multi-billion dollar Ponzi schemes since the beginning of the 21st century.
|Country||Date Ended||Name of Scheme and Founder||Value (USD)|
|U.S.||2003||Mutual Benefits Company, Joel Steinger||$1B|
|U.S.||2003||Petters Group Worldwide, Tom Petters||$4B|
|U.S.||2008||Madoff Investment Scandal, Bernie Madoff||$65B|
|U.S.||2012||Stanford Financial Group, Allen Stanford||$7B|
Many of these schemes have made major headlines, but much less is said about the thousands of everyday Americans that were left in financial ruin.
For victims of the Madoff Investment Scandal, receiving any form of compensation has been a drawn-out process. In 2018, 10 years after the scheme was uncovered, a court-appointed trustee managed to recover $13 billion by liquidating Madoff’s firm and personal assets.
As NPR reported, investors may recover up to 60 to 70 percent of their initial investment only. For victims who had to delay retirement or drastically alter their lifestyles, this compensation likely provides little solace.
Do the Crime, Pay the Time
Running a Ponzi scheme is likely to land you in jail for a long time, at least in the U.S.
In 2009, for example, 71-year-old Bernie Madoff pled guilty to 11 federal felonies and was sentenced to 150 years in prison. That’s 135 years longer than the average U.S. murder conviction.
Outside of the U.S., it’s a much different story. Weaker regulation and enforcement, particularly in developing countries, means a number of schemes are ongoing today.
Sergei Mavrodi, known for running the Russian Ponzi scheme MMM, started a new organization named MMM Global after being released from prison in 2011. Although he died in March 2018, his self-described “social financial network” has established a base in several Southeast Asian and African countries.
If you or someone you know is worried about falling victim to a Ponzi scheme, this checklist from the U.S. Securities and Exchange Commission (SEC) may be a useful resource.
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