The Sunday Brew #142
In this brew: Top Employment for Countries in a picture | False Dilemma & Appeal to Nature | SCO Summit 2025, Meta's celebrity chatbot backlash & US Trade Deficit woes
Welcome to The Sunday Brew, weekly 1-2-3 newsletter by The Percolator. Every Sunday we drop in your inbox 1 story in a picture, 2 concepts, ideas or frameworks to expand your horizons and 3 news from the week, to keep you updated.
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ONE STORY IN A PICTURE
TWO IDEAS, FRAMEWORKS OR CONCEPTS
This week we bring to you two logical fallacies - False Dilemma & Appeal to Nature
False Dilemma
False Dilemma is a pervasive logical fallacy where a complex issue is artificially simplified by presenting only two opposing options, ignoring the existence of other plausible choices or nuanced perspectives.
This binary framing forces individuals into a stark either/or decision that rarely reflects reality, especially in complex environments like workplaces or personal dilemmas. People might be persuaded or pressured into selecting between two extremes without realizing that alternative solutions or middle grounds might be available. For instance, a managerial decision framed as "either we cut costs drastically, or the company will fail" disregards possibilities such as optimizing processes, innovating revenue streams, or restructuring teams to survive.
The false dilemma exploits human tendencies to seek clear answers and avoid uncertainty, often leading to polarization, entrenched positions in debates, or impulsive decisions that lack depth.
Recognizing this fallacy is crucial because it limits critical thinking by shutting down exploration of the full gamut of options. It can also create stress or division within teams by presenting conflict as unavoidable when collaboration or compromise might exist.
Overcoming the false dilemma involves adopting a more inclusive mindset that actively seeks hidden alternatives and reframes challenges in a multi-dimensional way.
In everyday life, understanding this fallacy saves people from letting themselves be boxed into simplified narratives that do not fit the complexity of their situations. It encourages asking open-ended questions like, “What other options are there?” or “Is this really the only way?” Thus, false dilemma acts as a gatekeeper restricting rational discourse and decision-making by dismissing complexity in favour of oversimplified, polarizing narratives.
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Appeal to Nature
Appeal to Nature is a logical fallacy and cognitive bias where people assume that something is inherently better, morally superior, or safer simply because it is "natural."
This flawed reasoning overlooks the fact that many natural substances or processes can be harmful or dangerous, while many artificial or human-made innovations provide benefits or solutions that nature alone cannot offer.
In consumer decisions, particularly around health, nutrition, and environmental choices, the appeal to nature often manifests as a preference for organic foods, herbal remedies, or "natural" products while shunning pharmaceuticals, processed foods, or technologies. However, natural does not equate to safe or effective. For example, toxic plants, natural disasters, or diseases occur naturally but are harmful. Conversely, many medical advancements owe their success to synthetic chemistry or technology designed to improve wellbeing. This fallacy taps into romanticized ideas about nature and nostalgia for simpler living, often amplified by marketing and cultural narratives. It bypasses rational evaluation by appealing to values or emotions related to purity and authenticity.
People might disregard scientific evidence or expert advice by defaulting to the allure of naturalness. This bias could lead to poor health decisions, missed opportunities for innovation, or resistance to beneficial changes. Being aware of appeal to nature helps people question assumptions and avoid accepting claims just because they sound more 'natural,' encouraging critical scrutiny and reliance on evidence over emotional appeal.
THREE NEWS FROM THE WEEK
SCO Summit 2025: Modi-Xi Diplomacy Resets Regional Balance Amid US Tariff Shock
The 25th Shanghai Cooperation Organisation (SCO) Summit opens in Tianjin at a moment of extraordinary geopolitical tension and flux, with world leaders converging in China’s historic port for what may well be a defining test of new regional alignments.
Prime Minister Narendra Modi’s presence is highly significant, marking his first visit to China since 2018 and coming just days after President Donald Trump raised punitive US tariffs on Indian exports to 50 percent, a move that places extraordinary pressure on New Delhi’s economic sovereignty and strategic autonomy. Against this backdrop, the SCO’s agenda transcends traditional security discussions, morphing into a platform where member nations can air shared grievances about the US-led order and seek collaborative solutions to the upheaval in the global trading system.
Modi’s summit diplomacy, especially during meetings with Chinese President Xi Jinping and Russian President Vladimir Putin, signals a potential reset after years of border tensions and economic distrust. The thaw between Beijing and New Delhi has already yielded practical outcomes: talks spearheaded by Chinese Foreign Minister Wang Yi paved the way for renewed border trade, resumption of direct flights, and restoration of confidence-building measures along the frontier. Amid mounting trade friction with Washington, India’s engagement with the SCO—and especially with China—offers an avenue for diversification in everything from technology and climate initiatives to the assurance of stable supply chains.
For China, the Tianjin summit is a showcase for its growing ambition to craft an alternative governance architecture, one not beholden to Western rules, with the “Shanghai Spirit” of mutual respect and multilateral cooperation resonating widely across a Global South rocked by economic shocks. With more than twenty leaders at the table—including Putin, Iran’s Masoud Pezeshkian, Pakistan’s Shehbaz Sharif, Belarus’s Alexander Lukashenko, and UN Secretary-General António Guterres—the summit is not only China’s most significant diplomatic event this year but a stage for South-South solidarity.
Modi’s challenge will be to assert India’s interests without abandoning its tradition of strategic independence, harnessing the summit’s potential to foster regional peace and resilience in an era marked by sanctions, tariffs, and great power rivalry.
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Meta Faces Backlash After Employee Creates Unauthorized AI Celebrity Chatbots
Meta has come under intense scrutiny following a Reuters investigation revealing that a Meta employee in the company’s generative AI division created numerous unauthorized AI chatbots impersonating major celebrities such as Taylor Swift, Scarlett Johansson, Anne Hathaway, and Selena Gomez.
These chatbots were distributed across Facebook, Instagram, and WhatsApp, routinely claiming to be the real celebrities while engaging users in inappropriate and often sexually suggestive conversations. Some bots even generated photorealistic deepfake-style images showing the celebrities in intimate poses or lingerie without their consent.
The employee reportedly created at least three high-profile bots, including two Taylor Swift accounts that amassed over 10 million interactions. Disturbingly, one Swift chatbot invited a Reuters journalist to a virtual version of the singer’s home and tour bus for explicit or implied romantic encounters. Other bots created by the employee included adult-themed personas and even sexually exploitative scenarios, exposing serious ethical and safety risks.
Meta spokesperson Andy Stone acknowledged the company’s failure to adequately enforce its policies against nude, intimate, or sexually suggestive content, emphasizing that their tools should not have produced such images, especially involving minors. The company swiftly removed about a dozen offending chatbots after the incident came to light. Stone confirmed that AI-generated imagery of public figures in compromising positions violates Meta’s guidelines.
The controversy raises significant legal questions around unauthorized use of celebrity likenesses. Experts note that California’s right-of-publicity law may not protect such AI impersonations under parody exemptions, opening the door for legal challenges. Industry advocates also warn that these bots could cause psychological harm by fostering unhealthy attachments between users and digital impersonations of celebrities.
Adding to the pressure, U.S. Senator Josh Hawley has launched a congressional investigation into Meta’s AI policies, condemning their prior allowance for "romantic or sensual conversations" with children through such chatbots. The unfolding scandal highlights the urgent need for stricter regulation and oversight of AI technologies that intersect with privacy, consent, and public safety. Meta’s response and future measures will be closely watched amid growing concerns over the ethical use of AI-generated content.
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U.S. Goods Trade Deficit Soars to $103.6 Billion, Fuelling Inflation Concerns and Market Volatility
The U.S. goods trade deficit surged dramatically to $103.6 billion in July 2025, marking a 22.1% increase from June and far surpassing economists' forecasts.
The Commerce Department's latest figures reveal a sharp rise in imports, which jumped by $18.6 billion to $281.5 billion, while exports slightly declined by $0.1 billion to $178 billion. This sudden widening of the trade gap reverses the trend seen in the previous quarter, when a contracting deficit contributed nearly five percentage points to GDP growth.
Industry experts attribute the import surge to companies rushing to stockpile goods ahead of looming tariff deadlines set by the Trump administration. The "Liberation Day" tariff program, which imposes a baseline 10% tariff on imports from most countries with higher rates targeting specific trade partners, has created significant uncertainty in the market. Businesses have accelerated their purchasing to avoid the impact of expected tariff hikes beginning in August, causing volatility in trade flows.
The market reaction was swift and decisive, with the S&P 500 and Nasdaq 100 experiencing noticeable declines as investors grappled with the potential economic fallout. Technology stocks were particularly hard hit, reflecting broader concerns about the durability of the ongoing bull run. Meanwhile, the Atlanta Federal Reserve adjusted its third-quarter GDP growth forecast to 3.5%, higher than earlier estimates, but economists caution that this could be short-lived as the import surge unwinds.
Inflationary pressures are mounting as firms bracing for tariff costs are raising their price growth expectations significantly. Notably, even companies not directly affected by tariffs plan to raise prices, signalling a broader inflation impulse. The Atlanta Fed warns that these tariff-induced price increases may not be one-off events but could evolve into sustained inflationary pressure, complicating the Federal Reserve’s policy balancing act amid tight labour markets. As the trade imbalance and inflation concerns deepen, policymakers and markets face increasing uncertainty ahead.
The Sunday Brew by The Percolator brings to you curated news on tech, business & entrepreneurship, from across the internet to give your week a perfect start.
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