Energy – Wilder, Wealthy, and Wise

Why We Can’t Do War Anymore

“You led us into a war zone with no way out?” – Inception

Also, when cats rebel in the Navy, is that mewtiny?

“Get there first with the most men,” is a quote that is attributed to Confederate General Nathan Bedford Forrest. This was translated by the New York Times® in 1917 as “Git thar fustest with the most mostest” because, well, because of course they did.

This reached its zenith during World War II. Defeating Germany and Japan wasn’t so much of a military operation but was rather an economic operation. It was the economy that could produce the mostest fustest.

One example is the aircraft carrier. The United States entered World War II with eight aircraft carriers, of which seven were “fleet carriers” and the other one was a small “escort” carrier.

It ended with 28 fleet carriers, 9 light carriers, and over 70 escort carriers, making (best guess) 101 operational carriers on in August, 1945 when Japan surrendered after we dropped two portable stars on their island. This worked. We could afford to build the planes, atomic bombs, and the ships while still having enough money left over to afford to get a couple of nice ribeyes.

We didn’t just outproduce the Axis, we outproduced them so thoroughly that by the end of the war we had more aircraft carriers than most countries have paved roads.

When the Navy recruiter asked if I could swim, I asked him, “Why? Have we run out of ships?”

World War II and the following Cold War were economic wars. How much capital could the United States and the Soviet Union throw into weapons programs to get there fustest with the mostest? Well, trillions. Ultimately, the sheer cost of Soviet weapons programs combined with their crappy commie economy caused the whole thing to fall over.

The United States had perfected Modern Warfare, which was really just having the economy produce millions of tons of weapons that we hoped never to use, and occasionally smashing a country with a few missiles or invading Iraq and Afghanistan a couple of times. Our technology was amazing. Our previous capital investments allowed us to win any sort of World War II battle we might run into. You know, if Rommel and the Bockauge Korps appears from a parallel universe and decides to invade Ohio.

Yay! I knew we could do it!

There’s a city in Ohio called Engagement. It’s between Dayton and Marion.

But things change, and technology changes.

The biggest change to the world has been the cheap drone. It’s not cheap when the military does it, since the military procurement process makes things stupidly expensive. On Amazon®, there is a drone available that will carry a 30-kilogram payload. An M107 155mm projectile carries about 7kg of explosive. I have no idea what Comp B costs, but the drone is $15,000 retail, so a nation can buy those in bulk and air drop the equivalent of an M107 shell with ease and with precision for less than $20,000 a trip, and, say, less than $2,000 if you reuse the drone.

An M777 155mm howitzer costs over $4million. To be fair, the Pentagon could turn that $15,000 drone into a $2million program if allowed to, complete with a 47 page PowerPoint© about diversity, equity, and inclusion plus the requirement that it have a non-gendered toilet. This is our military’s true superpower.

I hear that in California they have a beach covered in frozen waffles: Sandy Eggo®.

The capital model of build more stuff that gets there quickly that the Soviets Russians relied on when they invaded Ukraine broke down because it’s now changed. A $4million tank can be taken out easily by the cheap drone. In fact, I’d imagine you could get more than 300 of the drones for the price of one tank, and if you re-use them just twice, that’s 600 to 1200 shots perfectly on target, which isn’t warfare, it’s Prime Day© for explosions.

Sure, they’ve had to move to fiber-optics because of jamming.

The bigger problem has been the cheap drone plane, which are currently chewing up Russian refineries. Both the Russians and the Ukrainians are using them to attack each other. They’re cost is somewhere between $10,000 to $40,000 per unit, as a guess. These are cheaply made fixed wing planes that carry 100-pound warheads. Who needs a bomber? Who needs a pilot?

Now, for $40,000, one of these planes can easily cause $10,000,000 damage to an oil refinery.

Which brings us to the Strait of Hormuz.

The initial attacks on the vessels shipping sweet, sweet oil out to the world was done using $200,000-ish anti-ship missiles. That’s expensive, so recently they’ve swapped out and are using Shahed® fixed-wing drones that the Russian fixed-wing drones are based on. Again, cost is probably about $10,000 to $40,000 per unit.

The cost of the drones is probably about $750,000 to $5,000,000.

Total.

And what did that cost the economies of the world?

$1.5-$3 trillion.

That’s a 300,000 to 1 return at the low end.

If that works, it’ll be a crude awakening.

The previous models required men to be moved, and the more of them the better, with more guns and tanks and planes and bombs equaling victory. Victory was about who had the most capital, and who could bring the most people to the front and build the most bombers and have enough pilots to keep flying them.

In the new models, a base within missile or drone range isn’t an asset, it’s a target. The 11 supercarriers are now . . . targets.

They are very large, very expensive targets that need to be kept so far from the actual fighting that they’re mostly useful for looking impressive in press releases and photo ops. At $13 billion a ship with 6,000 personnel on board, we’ve somehow created a weapon so valuable we can’t afford to use it. It’s less of a warship than a very large, very slow hostage with its own zip code.

The final result of the “war is a capital competition” has produced a hostage with a flight deck that needs to stay a continent away from the fight and replaced thousands of men and billions of dollars with a guy, a laptop, and decent wifi.

And you don’t want to see the planned “Special Forces”.

War in an interconnected world has ceased to look anything like war from 1943. Like in the book Dune, the idea to war now is to deprive your enemy of something they can’t live without: “He who can destroy a thing, controls it.”

The Strait of Hormuz proves this, but it’s not the only inflection point where physical resources or the world’s economy is constrained.

Taiwan, for instance, produces 65% of the world’s computer chips. Taiwan also produces more than 90% of the most advanced chips.

China is vulnerable, too. The Strait of Malacca moves 80% of China’s oil. There are others. In a global, interconnected world getting there first with the most men is less important, or a navy that has to hide in a corner like my cat when I turn on the vacuum.

I never trust five star reviews on them, it’s really hard to get a perfect vacuum.

Now, the key is having the fundamental ability to control something your enemy literally can’t live without.

I’ll translate for the New York Times©: Take thet stauff they gots to hav.

America 350: Looking Backward from 2126

“Time is relative, okay? It can stretch and it can squeeze but it can’t run backwards.” – Interstellar

See? I do requests. Heck, I even have two requests: First, after I die, I want my remains to be scattered on rides at Disneyworld©. Second, I don’t want to be cremated.

This portion of the project will focus on the years from 2026 to 2126, with emphasis of the fifty years between 2026 and 2076.

2026 was only celebrated as the 250^th anniversary of the Declaration of Independence in the most minimal way possible, mainly through consumption of something called InstaGrams© which are believed to be a form of snack-cracker covered in TikTok®, which is believed to be a spread made mainly out of seed oils and high-fructose corn syrup, but records are spotty.

What happened after this celebration?

The economic situation was already rough in the United States. Rather than having a currency set in a fixed number of units, like our fixed number of 100,000,000 BasedBux©, or currency based on an actual physical commodity like gold, silver, or PEZ©, the currency of the United States was just printed at will. Even at the time it was recognized that the U.S. Dollar was mainly fictional in value, and owning them was better than nothing, but that the asset itself was going to go to zero over time.

2032 . . . who was saying that years ago?

The political temptation of the United States to print “wealth” at will was abetted by the large network of vassal states that would accept the dollar and send the United States actual physical objects in exchange for a depreciated fictional currency. Essentially, this allowed the United States to tax the world.

When looked at through the lens of the events that followed, it seems silly that this was the way that the world economy worked. The Great Crash of Monday, October 21, 2030, however, saw the formal recognition of the failure of this system. Markets rarely fail all at once, and in this case, there were many cracks that were visible before the crash, of which the crack-up boom of the late 2020’s stock market in the United States was one: any actual asset was recognized as a better deal than the rapidly unwinding dollar.

The economic crisis of 2032 was the final nail in the composition of the 50 United States, but it had help.

Since the advent of the Internet and the creation of its most well-known carrier, the “smart phone”, drift had set in. The 20^th Century had been the story of the world coming together, where, for instance, the culture of the United States had coalesced from the various regional cultures into a largely singular culture. By the 1980s, the country had been largely unified under the banner of mass media.

This was a similar story across the world wherever that the people were wealthy enough to have televisions: there was a single culture, a single story, a single narrative with minor variations that were allowed.

I’ve heard that penguins mate for life, which is certainly impressive. Don’t they stop for food?

The Internet and “smart phone” had broken that barrier. Any community with any idea could now be seen. No belief was so obscure that a group of people with similar ideas couldn’t be found that shared that same idea. This divergence led to a complete and utter loss of national identity by the late 2020s and placed enough stress that the most basic drive of mammals, reproduction, was being subverted by society. One biologist asked, “Do you understand the level of stress you have to put a mammal under to make it not want to breed?”

What was even worse for the cohesion of the United States was the evaporation of national myths that had been created in an attempt to create a unified country. For over a century, scientific facts related to race, intelligence, culture, and violence had been suppressed, even though those had been noted as empirical facts for over a thousand years in the past.

The Internet coupled with the wide proliferation of cameras dispelled those well-cultivated “myths” for all but the most committed by the early 2030s. In a United States that ceased to have an overwhelming majority of Western European-derived populace, what has happened at every point in history happened: cultural lines formed along racial lines, and self-segregation again took hold. First this was by neighborhood, then by city, then, finally, by region.

Both blacks and whites agree that Karmelo doesn’t deserve prison.

This diaspora took less than 20 years. In what had been the norm in the Southern United States for nearly its entire existence, the split appeared again. Hispanic businesses, black businesses, and white businesses and churches and funeral homes took hold nationwide.

This was mostly peaceful, but was driven by the intense riots of the 2030s, with a near complete segregation complete by 2050.

Mostly peaceful is how the process moved, but it was born in the riots that formed during the great economic crisis of 2032. These riots were born of an economic desperation as the economy of the United States was in transition due to the dollar collapse: the government ran on “money” and when no one believed that the dollar was money, the government ceased to be.

People had to protect themselves, and in the course of a weekend a major metropolis could be turned into a turned into a non-functional wasteland. It was not long until families began to look for places to move that were not, in the term of the time, “diverse”. Race relations devolved as the actual motives of the majority of blacks became clear and the word “racist” lost all of its power. The Great Coalescing was on.

With weakened governments and most nations on Earth dealing with their own issues due either to economics or demographics, the collapse of the United States during this time proceeded with little international interference outside of the Mexican de facto occupation of Southern California and parts of Arizona, New Mexico, and Texas. As Mexican government was, at it’s strongest, weak, these areas were either effective anarchies or under the control of the cartels.

The best mapmaker was the guy who invented the little box that has all the symbols in it that explain what’s on the map. What a legend!

Approximately half of the population of the United States died during the Great Coalescing, either from direct random violence, direct political violence, or from deprivation related to the failure of economic, energy, and agricultural systems.

By 2076, the United States looked nothing like the nation that had seen the Bicentennial celebration. Though nominally still connected, the national government had little power as the East Coast was still the most violent part of the nation.

As the South convulsed in the Great Coalescing, the majority of black residents in southern cities had fled northward into the D.C.-Virginia-New York – Boston corridor. Already containing 15% of the population before the migration, it grew to 25% as ethnic minorities streamed in. Even today, it remains the highest crime area on the continent with only a limited police presence inside the zone and a strong border force outside.

In 2076, the rebuilding was in full swing. Elon Musk had set the basis for this with his BasedBux©, which were strictly limited in number to a total to 100,000,000, so they naturally grow in value. BasedBux© was a currency that was based on a fixed amount of gold that Musk donated to found the currency and paid dividends backed by his solar power satellite energy delivery system: SunPowerX©.

As the state governments regained footing, they looked at the issues that had created the problems. With money and energy solved, they looked at the other factor in the collapse of the United States as well as other countries: diversity. Thus, the state governments decided to focus on unity. The radical idea that telling the Truth might be a basis for governance was enshrined in many states, and hanging of several legislators emphasized the seriousness of the new policy.

You can’t hang a man with a wooden leg. You need a rope.

By 2076, a coalition Federal government was created by the state governments, which were the largest functional governments on the continent. The states were exceptionally varied in levels of control and laws. The states also made it clear that the federal government in no way would it be allowed to impact the laws of the individual states. The federal government also has no power at all over individual citizens, it was built as a mechanism for states to work out their issues between them, create treaties with foreign nations, and defend the totality of the country.

As we all know, the federal government is explicitly not allowed to tax, nor is it allowed to create money, nor is it allowed to invalidate state laws.

Areas not participating in the Reconstituted United States were the: Southern California, the Pacific Northwest coast, and the ungoverned D.C.-Boston corridor, though neighboring states do take part in periodic pacification expeditions.

By 2076, the population of the areas in the Reconstituted United States was steady at 125,000,000 people, and was beginning to grow to the 150,000,000 we see today in 2126. The Internet is still available, but the advent of mandatory public browsing histories solved most of the issues seen in the early 2010s and 2020s.

I’d like to thank the Wilder Institute for Serious Historical, Political, and Economic Zeitgeist Studies™, WISHPEZ©, for funding and support during this research.

Civil War 2.0 Weather Report: All It Takes Is A Spark

“All it took was a spark.” – Sherlock Holmes (2009)

That Asian lady on TV says to donate anything that doesn’t spark joy. Who is going to take all these illegal aliens?

Those who have an opposing ideology are considered evil.
People actively avoid being near those of opposing ideology. Might move from communities or states just because of ideology.
Common violence. Organized violence is occurring monthly.
Common violence that is generally deemed by governmental authorities as justified based on ideology.
Opposing sides develop governing/war structures. Just in case.
Open War.

Volume VIII, Issue 1

Most memes except for the clock and graphs are “as found”. I have maintained the Clock O’Doom at 9., given the open support of assassination and criminality by the GloboLeft and the increase in violence as well as direct interference with ICE and the insertion of the military into law enforcement. Beware: the number can climb quickly.

My advice remains. Avoid crowds. Get out of cities. Now. A year too soon is better than one day too late.

In this issue: Front Matter – Sparks and Ignition – Violence and Censorship Update – Misery Index – Updated Civil War 2.0 Index – Why Is It . . . ? – Links

Front Matter

Welcome to the latest issue of the Civil War II Weather Report. These posts are different than the other posts at Wilder Wealthy and Wise and consist of smaller segments covering multiple topics around the single focus of Civil War 2.0, on the first or second Monday of every month. I’ve created a page (LINK) for links to all of the past issues. Also, subscribe because you’ll join nearly 840 other people and get every single Wilder post delivered to your inbox, M-W-F at or before 7:30AM Eastern, free of charge.

Sparks and Ignition

I’ve been covering the UK as a part of the Violence and Censorship Update to the Weather Report as long as I’ve been doing it. The reason is simple: it’s a country that has a similar culture and is facing similar problems and it can be instructive. It also might be the Spark.

When you look at fires, they need three things: oxygen, fuel, and a spark. If I could extend the metaphor a bit, air would be the discontent in a population. It’s always around, and doesn’t cause a fire by itself. Anyone can be mad.

But the amplification, the fuel, is when people communicate their discontent. It’s why an absolute communication blackout occurred on those that were in any way skeptical of the governmental response of COVID or supportive of the obvious fact that the 2020 election was stolen.

Amplification, the fuel, was there when the George Floyd riots occurred.

They were planned. Oh, sure, not George in particular, but any video would have spread. After four years of Trump, the GloboLeftElite and GloboLeft activists were so angry that they wanted something, and any event on video that could be made to be the Spark would be amplified.

So, discontent plus amplification plus event = revolt.

It’s happening now in England. And in Ireland. The first relates to the murder of an 18 year old British university student, Henry Nowak, by a foreign invader. Can Brits have knives? Not without a liosense, guv’na. But if you’re a sikh you can. And one of them used that knife privilege to ventilate young Mr. Nowak. The spice on this already outrageous event?

They coppers were handcuffing Nowak as he died.

Nowak: “I’ve been stabbed.”

Evil Cop: “I don’t think you have, mate.”

Why evil? The coppers took the word of the sikh murderer that Mr. Nowak had, “Done a racism,” and handcuffed the bloodless hands of Mr. Nowak. The murderer or his family then hid the murder weapon, and stole Mr. Nowak’s phone, either for gain or to suppress evidence.

The next case is still developing: another foreign invader in Belfast was subject to oppression because he was arrested after being caught sawing the head off of an Irishman. Silly Irish! They should know that it’s illegal for them to be caught having their heads sawed off. That must have inconvenienced the poor refugee.

These are Sparks. White protests have been the result, though I wouldn’t be surprised if this is the first that you’ve heard of either of these events, since news has been clamped down tight: they want to remove the fuel from the event. It can’t spread!

The result is that they’re trying to keep this from spreading.

The discontent is real. And the oxygen level that is starting to build up in the room is the fact that, as the economy falters for the young, they’re now seeing the wealth pump in action as countries try to bring in cheaper labor from overseas to replace skilled young British and American citizens. Zoomer disaffection is real, and their complaints are legitimate: 8 out of 10 jobs went to foreigners in the United States since 2020.

80%.

They are the oxygen level that keeps rising, and that’s the level that the GloboLeftElite wants to keep down at any cost.

What they want is to get rid of you.

When I started writing the Weather Reports eight years ago, I thought that Civil War 2.0 would be ideological.

It won’t be.

Violence and Censorship:

Stealing a country’s mythology is censorship, and you can see that in effect with the movies. At some point people will realize this is just forced humiliation.

Turks gave us a cool new name:

I guess making fun of Indians is off the menu, as Poop World Order was banned from X not long after this.

And when you brainwash white women, murder follows:

Oh, and women judges. Don’t forget them.

You can’t stop the signal, Mal. But California will keep trying.

Misery Index

The new Trump administration is shown in red. Results continue to be much better than Biden’s misery numbers though Iran is starting to show in the index..

And why isn’t giving jobs to aliens over qualified Americans legal?

Updated Civil War II Index

The Civil War II graphs are an attempt to measure four factors that might make Civil War II more likely, in real time. They are broken up into Violence, Political Instability, Economic Outlook, and Illegal Alien Crossings. As each of these is difficult to measure, I’ve created for three of the four metrics some leading indicators that combine to become the index. On illegal aliens, I’m just using government figures.

Violence:

Violence indicators are down this month. The attempted assassination last month didn’t even flutter the number, which tells you how far down the road we are.

Political Instability:

Down is more stable, and it went down this month. We’ll see what the Karmello verdict brings.

Economic:

The economy took a minor drop two months ago, but then completely recovered. For now.

Illegal Aliens:

Still the near lowest level since the Weather Report started.

Why Is It . . . ?

That Syria doesn’t want Syrians and India doesn’t want Indians?

LINKS

The links are again done by Ricky this month. Thanks, Ricky!

BAD GUYS
https://x.com/Katelyn_Caralle/status/2056134125564645790
https://x.com/CitizenFreePres/status/2053284658322854271
https://x.com/DefiyantlyFree/status/2052414245124366422
https://x.com/spencerpratt/status/2054277602588946492

GOOD GUYS
https://www.youtube.com/watch?v=T4MHgjkdOKk
https://x.com/spencerpratt/status/2057508808067543268

ONE GUY
https://x.com/MarioNawfal/status/2055736794474590660
https://x.com/BreannaMorello/status/2052013624516849961
https://ammo.com/research/defensive-gun-use-statistics

BODY COUNT
https://cms.zerohedge.com/s3/files/inline-images/Worlds-Fertility-Rates_Web_04272.jpg?itok=o-FNcmIC
https://www.axios.com/2026/05/10/christian-catholic-pastors-seminaries
https://www.oftwominds.com/photos2026/docs-admin3-26a.png
https://therabbithole84.substack.com/p/affirmative-action-in-medical-schools

VOTE COUNT
https://x.com/Mezzie13603591/status/2053671751591006406
https://x.com/Smooth_Sailing0/status/2053575218484883476
https://i0.wp.com/jonathanturley.org/wp-content/uploads/2026/04/HAcIMIXagAA3FuR.jpg?ssl=1
https://jonathanturley.org/2026/04/28/incredible-unstoppable-titan-of-terror-the-lobster-that-devoured-virginias-constitution/
https://jonathanturley.org/2026/05/09/the-gerrymander-debacle-in-virginia-leaves-the-democratic-party-with-a-dangerous-agenda/
https://nypost.com/2026/05/07/us-news/redistricting-after-scotus-decision-could-give-gop-edge-in-midterms/
https://www.zerohedge.com/political/jeffries-calls-half-dozen-democratic-states-start-aggressive-redistricting
https://alphanews.org/nearly-19000-people-used-vouching-to-register-to-vote-in-minnesota-on-election-day-2024/

CIVIL WAR
https://www.youtube.com/watch?v=LJek-kc384w
https://www.washingtonpost.com/nation/2026/05/09/trump-assassination-jokes-internet/
https://www.truthdig.com/articles/has-the-supreme-court-set-the-stage-for-a-new-civil-war/
https://www.thefp.com/p/thomas-massie-defeat-gop-primary-trump?hide_intro_popup=true
https://thehill.com/homenews/state-watch/5868969-tennessee-redistricting-memphis-lawmaker-secession/
https://mises.org/mises-wire/vote-harder-why-secession-only-answer-american-megastate
https://financialpost.com/pmn/business-pmn/alberta-premier-stakes-political-future-on-canada-secession-vote
https://www.telegraph.co.uk/us/news/2026/05/22/child-soldiers-mexico-bloodthirsty-civil-war/
https://www.investing.com/analysis/from-civil-war-to-economic-dominance-the-rise-and-decline-of-great-powers-200680817
https://www.americanthinker.com/articles/2026/05/how_the_american_system_reshaped_the_world.html

MEMORIAL DAY
https://x.com/HistorianUSA1/status/2057963073529414038

Singapore Got Rich on a Tiny Rock. We’re Getting Poor on a Vast Continent. Here’s Why.

I hate hipsters, with their vegan diets and tiny feet and whiskery faces and sawdust bedding. Oh, I meant hamsters. I hate hamsters. (meme as-found)

We are becoming poor.

Not “poor” in the sense of some third-world hellhole where the average guy eats dirt and dreams of a bicycle. No, we’re sliding into a softer, slower, more insidious kind of poor, the kind where everything costs more, does less, and shrinks while the price tag stays the same. Think of your new Giant Size™ Freetos© Corn and Sawdust Chips®. Thirty-three percent less product than the old Stupendous Size©, same price, and now with extra cardboard flavor for that authentic “we’re all getting cancer” mouthfeel.

Or the Chimkin King® MacNugget© that used to be a glorious 0.75 ounces of protein-packed joy (roughly three picofarads of satisfaction) and is now a sad 0.4 ounces (two millibecquerels of regret).

Same price.

Or twice the price.

You pick. This isn’t random. It’s the visible symptom of a deeper rot.

I think Superman® will die when he finds his crypt tonight.

To understand why we’re getting poorer, let’s ask the question: What makes places and peoples wealthy in the first place? Wealth isn’t some mystical fog that drifts in on the winds of good intentions. Wealth is built, deliberately, from a handful of non-negotiable ingredients. Screw them up, and poverty is the only destination. Nail them, and creation of wealth is damn near impossible to stop: look at Singapore, a rock with zero natural resources that became richer than most continents because they got the recipe right.

Here’s the list. It’s not complicated.

Raw materials. You need stuff to make stuff. A country doesn’t have to own the mines or the oil fields. Taiwan proves that. They import what they need and turn it into iPhones© and Nvidia© chips that the world lines up to buy. Venezuela sits on more oil than a Saudi prince’s dream and still can’t afford luxuries like toilet paper or rice.

Energy. This is the raw material people pretend doesn’t exist until the lights flicker. Cheap, reliable energy is the multiplier for everything else. Coal, oil, nuclear, geothermal, solar: swap the source if you want, but you cannot negotiate with 12 shots of vodka or thermodynamics. I may run on booze and condiments, but without abundant energy, factories sit idle, and data centers don’t compute. When energy gets expensive, everything else gets more expensive. Period.

Gasoline prices are so high that I heard the homeless in Southern California have stopped huffing it and switched to cocaine to save money. (snip as-found)

Capital investment. You have to build things to build things. Our entire world is a stack of prior investments stretching back to the pyramids, the steam engine, the transistor. AI doesn’t pop out Sam Altman’s ass: it needs concrete, steel, copper, water pipes, motors, and enough electricity to power a small country. Each of those required factories, that also required factories. Every layer of capital makes the next layer possible. Starve that pipeline for decades and watch the future evaporate.

Drive and ingenuity. Someone has to have the spark. Steve Jobs said it best: the desire to “kick a dent in the Universe.” Wanting it isn’t enough, someone has to be smart enough and stubborn enough to actually take the risk. That’s the rarest ingredient. Most people are content with Nyquil P.M.™ Netflix® and Nacho Cheese Doritos©. The ones who aren’t? They move mountains.

Labor and physical craftsmanship. Ideas and Jeffery Dahmer are worthless without execution. You need trained, experienced men who can turn blueprints into reality: welders, machinists, engineers, coders who’ve solved hard problems before and aren’t afraid to get their hands dirty. Craftsmanship isn’t taught in a three-hour DEI seminar. It’s earned through sweat, failure, and repetition.

My former wife didn’t understand algebra, which is why the x is no longer in the equation.

Right environment. Enough government to stop anarchy, not so much that you end up with Pol Pot’s people party. Singapore, South Korea, even old-school America had governments that mostly stayed out of the way while protecting property rights and contracts. Too little law and warlords loot your factory. Too much and the bureaucrats loot it for you.

Scoring system. This is the secret sauce. No scoring system at all? Communism where everyone starves equally except the leaders. All scoring system, no guardrails? Wall Street cocaine binges off of hooker’s butts after their derivative play wrecked Poland. Reward the leeches useless migrants unworthy rapists? Hello, modern Europe, where the productive pay for the idle and call it “compassion.” The right system rewards the creators, punishes the parasites, and lets the market sort the rest. Mess with the incentives? You get what you reward.

Get these seven things lined up and wealth explodes. Miss even a couple and you’re Venezuela with better Wi-Fi.

So why are we sliding backward?

We’ve been neglecting every single one of them for decades, and the bill is coming due.

Raw materials? We’ve got plenty underground, but we’ve regulated mining into a paperwork hellscape while China laughs and digs. Or else.

OnlyFans© was outlawed in Orwell’s book 1984. They wouldn’t allow thotcrime.

Energy? We’re shutting down reliable coal and nuclear plants for windmills that work when the wind feels like it and solar that dies at sunset. The result? Higher costs for everything, from grocery bills to California electric cars that can’t charge because the grid is wheezing.

Capital investment? We offshored it to China and called it “globalization.” Factories, machine tools, entire supply chains are all gone. Sure, some capital flowed back in the form of stock buybacks and McMansions, but the productive kind? That’s building Chang’s future now.

Drive and ingenuity? Our schools turned into indoctrination camps. Merit is racist, excellence is oppressive, and every kid gets a participation trophy. The spark of genius gets smothered under layers of “equity.” Steve Jobs couldn’t get hired at Apple™ today and with the regulations, couldn’t even start Apple© today.

Labor and craftsmanship? We imported millions of low-skill workers who consume more in services than they produce in output, while our own kids rack up six-figure debts for gender studies degrees. The skilled trades? Stigmatized as “dirty jobs” for decades. Now we wonder why nothing gets built on time or on budget. Welding productivity is half what it was in 1960.

But we both liked heavy metal, so we eloped to Vegas for our welding.

Right environment? We’ve got more government than ever regulations thicker than a Manhattan phone book (for the younger generation, a phone book was when someone printed off a section of the Internet), agencies with SWAT teams, and a bureaucracy that treats citizens like the enemy. Pol Pot was too extreme, sure, but the slow-motion version where every productive act requires ten permits and a diversity audit? That’s nearly as destructive.

Scoring system? We reward voting for more handouts, not creating value. Welfare cliffs, affirmative action, corporate bailouts, student loan “forgiveness” that’s really just sticking the bill on the productive. Europe’s model of taxing the hell out of workers to fund the idle has crossed the Atlantic. And don’t get me started about how we’re letting the people who print the money keep it. The leeches are thriving. The creators are exhausted.

Every one of these screw-ups shows up in the data: houses that cost ten times what they should because we imported 100,000,000 net new consumers (legal and otherwise). National debt? Every printed dollar dilutes the value of the ones you earned. Shrinking products, rising prices, declining quality are all the same signal.

We’re poorer.

Stunningly accurate. (meme as-found)

If we keep this up, we won’t be the world’s superpower. We’ll be Albania on the Atlantic, the Mumbai in the Midwest, or the Pretoria of the Pacific Rim: a place where the lights flicker, the shelves are half-empty, people burn Styrofoam® for heat and the ambitious either leave or give up.

The crazy part? Fixing it is simple.

Stop importing net consumers. Secure the border, enforce the laws we already have and repatriate them all.

Unleash energy. Drill, build nuclear, keep the coal plants running until the next better thing is actually ready since cheap energy fixes almost everything downstream.

Cut the regulations that strangle capital investment. Let factories come home and encourage them to do so with tariffs. Reward builders, not bureaucrats.

Rebuild education around merit, rigor, and actual skills. Fire the ideologues. Bring back shop class and calculus.

Restore the scoring system: reward production, punish predation. End the welfare traps. Make work pay again.

That’s it. All the fixes. None require magic or a revolution. Just the political will to stop doing stupid stuff.

So why don’t we do that?

Because the people steering the ship benefit from the decline: a system is what it does. Politicians get votes from the dependent class. Bureaucrats get power from the red tape. Corporations get cheap labor and cheap virtue-signaling. The media gets endless stories about “systemic” problems that justify more of the same poison.

The incentives are perfectly aligned. For them.

For the rest of us? Not so much.

The ingredients for wealth haven’t vanished; we’ve just stopped mixing the batter. But the window is closing. Every year of delay makes the turnaround harder and everyone poorer.

I wear shoes with Velcro® closers now. I mean, why knot?

It will be painful, more painful than pulling putting duct tape on a Kardashian’s back and pulling it off. For the Kardashian, I mean, since I would pay money to see someone pull duct tape off of a hairy Kardashian.

The alternative to the pain, though, is worse.

I am so tired of sawdust.

What Does A Bubble Look Like?

“I had it all, even the glass dishes with tiny bubbles and imperfections.” – Fight Club

You know what really gets my goat? A Chupacabra.

I’ve been in a bubble before. What happens in them is, well, interesting.

First, the money isn’t just where the attention is. Nvidia® and OpenAI™ and Anthropic© are where the attention is focused. But it’s a bubble, right? Honestly, if the irrational exuberance over A.I. was just about those three companies, it would be pretty boring.

But it’s not. A bubble is insidious because it doesn’t impact just one part of an economy, it sinks its tendrils in seemingly unrelated things. That’s good, because change is the basis of growth, creating new combinations in the economy to create value. I’ll stress the “creating value” part because often that’s confused with “red line go up and to right good, down and to right bad”. A stock price should be related to the value the company creates but is often masked, at least for a while. I mean, Enron©, right?

Looking at the A.I. bubble now, well, it’s everywhere, and often in irrational and uncomfortable places, like the backseat of a Volkswagen®.

What’s got two legs and lives off a dead beetle? Yoko Ono.

Things are built in places for reasons. When things are being built in stupid places, well, it’s probably that someone isn’t thinking straight.

Let’s take data centers. What do data centers need?

First, power. We’ll get back to this subject (and most that follow) again, but unless there’s power, none of the chips run.

Second, space. You need a place to put the chips. It’s most often a building, on land. Well, to be honest, that’s where it’s third most common. The most common is in the dreams of Sam Altman, the second most common is in a warehouse because the datacenter hasn’t been built yet.

Third, access to robust communications. You’re building something that has to listen and talk, so it needs to be hooked into the data sphere. Thankfully, thanks to the Dotcom bubble, that fiberoptics are everywhere.

What the hell is laser hair? And why do people want to get it removed?

Fourth, access to a place to dump the waste heat generated by all that electricity usage. Most often, this implies access to water for use.

Each of these has its own solution, but meeting all four requires a bit of thought. I mean, the South Pole would be great except for the whole “access to communication” bit. So, selection is a balancing act. Pacific Northwest, with power, land, water and data access, not so bad. Pennsylvania? Also pretty good.

Let’s take the factors, one by one. Power. As we’ve discussed before, the power usage for data center construction is screaming “bubble” from the top of its lungs. People building data centers are signing contracts for power, either from utilities or by buying natural gas generators or . . . fusion? Really? That’s what they’re planning? Why not power them off of Elon’s Tweets®?

Looks like even Buc-ee’s® went A.I.

Yeah. It’s a bubble. Just because Fred’s Datacenter Depot and Truck Stop© signed a contract doesn’t mean that they have money or even loans to build it. Yet, chained investment is spurred on through public utilities and engine/turbine manufacturers. They’re building new lines, expanding capacity, all for a level of power generation that’s absurd. Thankfully, you can also get a Slim Jim™ at Fred’s©.

What about land? These are the lucky ones, since people with hundreds to thousands of acres of land are able to sell the land for ridiculous prices if they win the data center lottery. The nice thing for these folks is that they actually get paid.

Third: communications. There are a lot of fiber networks in the US, so this makes a lot of the country okay for buildout. Greenland? Notsomuch.

Besides, I have other plans for Greenland.

Then there’s water. I use the Mississippi for a proxy cutoff line, since east of it, wet, west of it, dry. YMMV, and there are places like the PacNorthwest that get a lot of water.

But Utah or Nevada? Or Colorado? Sure, these places get cold in winter, but are they even thinking about water usage? These are the places where the phrase, “Whiskey is for drinkin’ and water is for fightin’.” came from. They’re dry.

But, there’s a never-ending stream of data centers being announced pretty much everywhere.

Announced.

But my experience in a previous bubble tells me that all of these companies that are attempting to build all of these data centers are needing more in common than just millions of Nvidia© chips. They’re needing copper for wiring. They’re needing pipes to move water. They’re needing concrete. They’re needing steel beams. They’re needing rebar and glass and aluminum to build some of the largest buildings every conceived by man outside of the Pyramids and that ballroom next to the White House.

And that’s just for the building.

What is the difference between USA and USB? One connects to your computer to access all your data, the other is computing industry hardware standard.

They’re also in need of power. That’s another Big Kahuna, and it’s already raising rates to consumers in various states as utilities plan to build out power plants to serve demand from data centers that . . .

May never be built because they can’t be built because there’s not enough stuff to build them or enough electricity to power them even though, “Hey, we have signed contracts!”

That’s the flip side of a bubble. It’s irrational. You end up with insanity like 87% of venture capital going to A.I. 49% of investment-grade bonds are going to . . . A.I. As Michael Burry notes, during the Dotcom boom, only 40% of venture capital went to dotcom companies. So, 87% is better and safer than 40% because it’s more, right?

I hear that farmers can use a hoe to make money honestly.

Things inflate because everyone wants them.

Copper. Silver, which is (currently) not behaving like an economic metal, but like an input to data centers. Concrete. The very people that know how to build data centers are in amazing demand.

But a bubble?

Nah. Don’t call it that.

I could go on for another three thousand words about how frothy we are at this moment in time, but this time really is different. Most of this bubble is built on debt to build things that are impossible to build in promised timelines using resources that aren’t available. At least when the dotcom bubble burst, we had lots of unused fiber optic cable in the ground and when the housing bubble burst, we had houses left over.

What happens when a debt bubble bursts that hasn’t built the data centers it promised and evaporates a huge percentage of the venture capital that was sunk into it and all we have left are mountains of Nvidia© chips sitting in warehouses surrounded by confused pimps?

Well, that’s just another way that A.I. will change the world, I guess.

Won’t that be interesting?

Dr. Michael Burry Has Spoken Again. The End Is Nigh, Or Margot Robbie’s Thigh?

“On a long enough timeline, the survival rate for everyone drops to zero.” – Fight Club

A truck filled with quinoa and a truck filled with Worcestershire sauce crashed into a charcuterie shop near my house. What was the result? It’s kind of hard to say. (meme as found)

Dr. Michael Burry has spoken again. Okay, actually more like “emailed again” but he’s on the record again saying that the the end is nigh. Is he right? Well, on a long enough timeline, entropy always wins, and the heat death of the universe doesn’t care about my 401(k) yields.

But are we close?

The S&P valuations are through the roof. We’re in the middle of the largest investment in the history of the United States outside of World War II: Artificial Intelligence.

More has been spent on A.I. than was spent on the Manhattan Project, but less than was spent on, well, insert whatever outrageous bill Congress passed last week while you weren’t looking—probably something involving green energy subsidies for gluten-free solar panels raised free-range by Antifa® Chapter 4077.

The payoff for winning the Second World War was a big one. Essentially the United States was surrounded by a smoking crater of a world. Our industries were ready to absorb all the G.I.’s returning with their war brides into job to rebuild that crater. I mean rebuild the nice parts, not India.

The world without Western Civilization. (meme as found)

Factories were humming, houses were sprouting like dandelions, and the economy was so robust you could afford a house on a single blue-collar paycheck and still take the kids to Disney World® without having to resort to Moustitution© or selling a kidney. That’s what we got for entering into the war late and avoiding any of it happening on our homeland.

But what is the prize if A.I. is successful?

Well, it’s negative jobs. It’s a profusion of information so vast it makes the Library of Alexandria look like a collection of Post-it® notes abandoned after spelling errors. Elon Musk thinks it will create a society of abundance so great that no one will have to work and everyone can have a cool penthouse and all the gold they can eat. We can be sure he’s right, because this is just how the Industrial Revolution ended.

Wait, what?

Hours worked went up? Rural agrarian lifestyles were traded for urban factory hellscapes where the owner of the factory charged extra for all the asbestos he let you breathe in? Yeah.

Every production “revolution” that the world has seen has actually increased human effort. Those leaps forward did increase material wealth, but they also led to humans having to work more. Hunting nomad chads became farming incels.

Why?

You can’t brew booze if you don’t have the grain and the place to brew it. So, just like me, the nomads decided to give up a lifestyle of hunting, fishing, sex, and leisure for all the beer they could drink. I mean, I have priorities.

As a child I never napped. I was resisting a rest. (meme as found)

I don’t expect anything different in the Thought Revolution. Nobody will get free stuff, but the world will need a lot fewer of us. This is the case if it is successful: essentially an entire civilization working overtime to create a replacement for itself.

Yikes!

But let’s say it doesn’t work.

That’s better, right? Well, maybe. A bit. If A.I. reaches some limit where it becomes economically unfeasible to get to the next level (think power generation capability required being infinite) of cognition, or the models start to get dumber the more advanced they are (there’s a fashion model joke in here somewhere, but I’m too polite to make it), then the stock market will collapse.

Collapse? Surely, John Wilder, you exaggerate. No, I meant collapse. The market has priced in that A.I. is going to work. On the recent day that Wall Street hit new highs in the S&P 500, most (55%!) stocks weren’t near their highs. The high is high, but it’s not broad. This current level of investment in A.I. is so big and so deep and so tall, there is no way it can do anything but fall.

Sorry, got a bit of Seuss stuck in my keyboard.

“Oh me! Oh my!” said the plumber named Fred,
“My pipes cost a fortune, I’m deep in the red!
I can’t fix the sink or the tub or the drain!
This copper’s so pricey, it’s driving me insane!”

This is a damned if you do, damned if you don’t scenario. Let me put on my Cassandra pants and throw out this idea: Why not both?

The economy is screwed, or at least the economy that I grew up with is screwed. We’re becoming poor at a fantastic clip. Not “poor” as in West Virginia moonshiner with a still and a shotgun, but “poor” as in living like we’re in a crowded megacity filled with unwashed brown people where the air smells like regret and curry.

Let’s look at how affordable things are compared to income from the 1970s. I found this handy chart on the Internet. You know the one: houses, cars, healthcare, education all marching upward while real wages stagnate like a sloth on Ambien. Now, I know that no one actually goes to movie theaters anymore even though it’s on the chart. There’s no point in going to the movie. I can get booze from my fridge and pause the movie whenever I want if I watch it at home, but yet it’s “indecent” if I fall asleep drunk and in my underwear in the front row at the latest Avatar™ movie.

(as found)

But everyone can still afford a place to live, right?

Well, not since we’ve opened the floodgates and let in the entire world. A massive population increase combined with a group of people that consume much more in services than they contribute is killing us. They’re actually making us poorer as each one crosses into the country.

Remember in math you can always raise per capita by lowering the number of capitas.

But, hey, they borrow money so they can create debt that produces profit for the banks, right? Win-win, except for the natives footing the bill.

Isn’t enough that our economy is as stable as a knife fight between a drunken Whoopi Goldberg and a blindfolded Jimmy Kimmel in a bikini atop a butter-coated teeter-totter on top of WTC7? Did we have to put the whole existence of humanity in the future in the balance, too?

The good news, I guess, is that Burry could be wrong. He has been wrong before. Like me, he’s predicted five of the last two recessions. But there comes a point where we won’t be able to paper over the cracks in the structure with more printed money and hopium.

Yup, been there, done that.

When all this cracks, and it will because complexity plus leverage plus narrative equals fragility, the reset won’t be gentle. It won’t be “buy the dip” and back to brunch. It will be the kind of event that makes 2008 look like a mild correction and 1929 look like a Tuesday.

So where do I want to be when it happens? I want to be listening to a twenty-something Margot Robbie describing what collateralized debt obligations are from a bubble bath.

And remember Wilder’s Rule of Humorous Collapse #6: civilizations don’t fail because they run out of money; they fail because they run out of reality.

But at least I finally understand collateralized debt obligations (warning, mildly spicy language).

Disclaimer: I am not Margot Robbie, though I would take a cameo to talk about philosophy in a movie from my hot tub while I smoke cigars, and am also not a professional anything, let alone your financial advisor, so please bang your head against the wall a dozen times before you take the advice of an unpaid Internet humorist.

The Poor Get Hit First

“Small aircraft have such a poor safety record.” – Iron Man

Who can drink five gallons of gasoline without getting sick? Jerry can.

Today I was reading that Air India® was going to abandon overseas routes.

Why?

They’re too expensive, the Indian spokesdalit said as he mass-dialed grandmothers in Iowa to try to get them to send him unredeemed gift cards.

The truth is simpler and harsher: the flights aren’t too expensive. They’re too expensive for Indians.

This might be the single best news to come out of the Israel-America-Iran War so far. If the Iranians actually follow through on their threat to cut the undersea cables connecting Africa and India to the Internet, well, this would be the best war ever.

It’s like Christmas came early. Has anything similar happened in the United States due to the war?

Absolutely.

Congratulations! If you had stock in Spirit® Airlines™ you can now retire 10 years after you die! (as-found)

Spirit™ was the Greyhound Bus© of the skies, and that’s not a compliment unless you’re a fan of things that smell like the socks of a homeless junkie in San Francisco in June. Spirit© was a bottom-feeder airline, chasing the clientele with the least money, the lowest standards, and the highest likelihood of assaulting a stewardess.

When fuel costs climbed and Spirit© couldn’t raise ticket prices without emptying the plane, they collapsed. For anyone who actually has to show up at an airport, this is pure upside. Spirit© Airlines™ folding means the skies just got a little more civilized.

I fully expect this pattern to spread.

Remember that former U.S.A.I.D.-funded executive pulling down $272,000 a year? If not I fear for your reading retention because the meme is right up above, dude. Anyway, she’s now discovering she can’t land a $19-an-hour gig managing a spice store.

A spice store! Is government just day care for women with college degrees? Regardless, she’s now poor. And that’s good, because the poor lose first, and the credentialed grifters who fed off them are sliding down the same chute right behind.

Let’s talk basics. Even if the price of rice tripled, I wouldn’t notice much. Rice is still cheap for me. If I have to give up steak, I can just eat some rice, right? But that’s not a universal truth. If all a person in some third-world hellhole can afford is rice, and the price doubles, welcome back, world hunger.

What a lot of people missed is that world hunger was a solved problem. People just didn’t starve anymore, except in Hollywood®, and that wasn’t real starvation, it was just skinny starlets mainlining Ozempic® and calling it a diet.

On time I tried an all-tequila diet. Effective. I lost two weeks.

Global food production had climbed so high that famine was basically extinct outside of war zones and socialist experiments. Now the dominoes have started falling.

I expect revolutions popping up like mushrooms in Africa. Hungry people turn into angry people, and angry people with AK-47s equals a revolution. The sound of light machine-gun fire is already the national anthem in half the continent. Outside of colonialism, Africa never really developed. For whatever reason, they were incurious enough never to have invented the wheel on their own.

Africa is poor: devastatingly so. When Muhammad Ali came back from a boxing match in Zaire (a country that didn’t last as long as The Simpsons have been on Fox®), he famously said, “Thank God my granddaddy got on that boat.”

That was the 1970s, after the colonial governments had been tossed out. It didn’t turn out well for Africa or Africans. But world hunger had still been beaten in spite of African governments by 2010 or so.

My dad donated all my toys to the orphanage. I was sad. Then he said, “So you’ll have something to play with.”

Part of the blame lands squarely on aid. Food aid to Africa teaches farmers not to farm. Why bother when free grain shows up from the sky? The mental link between planting, harvesting, and eating snaps. To quote that genius South African political leader Julius Malema, “The food we eat in South Africa does not come from farms owned by white people, it comes from Shoprite©, Pick’n’Pay™ and Spar®.”

So yeah, they’ve got that going for them.

Hunger will stalk Africa hardest, but it won’t stop at the Sahara. It will hit India and the lower-income stretches of Asia, too. China should skate by because authoritarian efficiency has its uses and they have piles of cash. The Middle East gets shakier. Eastern Europe, too. Sure, the Byelorussians had decades of cheap vodka, but at some point somebody’s going to want to eat those potatoes instead of drinking them.

Is angry vodka mean-spirited?

Then there’s Europe. Decades of importing millions of people with zero marketable skills has created a permanent underclass that lives on benefits. Cut those benefits even a little and watch the reaction. England is already on the edge of something ugly. Throw in batches of moslims who get even more murder-y when the free checks shrink, and the whole thing slides downhill fast.

The native populations who actually built those countries are the ones who will be expected to keep paying, right up until they can’t. Back home, the same logic applies.

Inflation didn’t hit the hedge-fund guy first. It hammered the guy stretching a paycheck from one tank of gas to the next. Fast-food prices doubled, rent climbed, and the folks at the bottom discovered that “essential workers” are only essential until the margins get squeezed then they can be easily be replaced by illegals or H-1B Indians.

The poor lose first because they have no cushion, no skills that the market values, and no margin for error. When times get tight, luxury items like $272,000 non-profit jobs disappear, and even the mid-level grift starts to evaporate.

This culling isn’t random. Societies have always had layers. The top layer produces, saves, and innovates. The bottom layer consumes more than it creates. When the pie stops growing, the bottom layer gets the smallest slice first.

The credentialed political-grifter class is about to get the same lesson.

Those laid-off U.S.A.I.D. types who spent decades flying first class on someone else’s dime are now competing for retail jobs in a world that no longer needs their PowerPoint© decks. Hey, I have an idea!

Since they love foreigners so much, maybe she can move to India and run spice shops if she can’t get the gig here. Not sure they’ll clear $19 an hour in Mumbai, but at least she can stand at the door and greet customers with a cheerful:

“Season’s greetings.”

Delayed Reaction: Systems, Cash, and Shortages

“That’s the Lone Ranger®? I thought he was here to fix the air conditioner.” – Predator 2

My friend’s wife asked him why he had Only Fans® on his phone. Apparently “to contribute to your sister’s college tuition” was not the right answer.

One thing I’ve noticed in life is that there is always a delay between action and reaction. If there weren’t a delay, we wouldn’t need watches to see why our spouses were still not ready even though we agreed we were leaving at 9am.

I digress. One famous example is a household thermostat. I think I’ve mentioned it before. In my house, the air conditioner has exactly two settings.

On.

Off.

That’s it. It doesn’t have a “make it colder faster” setting. Or a “don’t overshoot and make the water condensing on the windows freeze” setting. Nope. Just on or off.

That alone is something that many adults don’t even recognize. If it’s 80°F (3MPa) in the house, turning the thermostat down to 58°F (6km) won’t make it get any cooler any faster. It will, however, keep the AC going long after The Mrs. has gone to get a blanket.

I got fired from my job as a locomotive engineer. Boss asked me how many trains I’d derailed this year, and I told him, “I don’t know, boss, it’s hard to keep track.”

There are many other things like this as well. Infestation er, immigration is one. We go from “Well, that was a pleasant new Mexican restaurant,” to, “Can you speak a little more slowly and enunciate? Or, better yet, get me someone that speaks English,” to “No, let’s not go to that part of town anymore because we don’t speak hindi and they poop in the street,” in only 30 years or so of unrelenting legal and illegal immigration.

Somewhere between 30 years and 3 hours, though, there’s the space where our economy moves in its cause-and-effect loop.

Part of the economy is entirely made up, that being stock prices and cash. The dollar wouldn’t exist if we didn’t all agree it exists. Where did it come from? Well, we made it up. We first said we’ll print pieces of paper that entitled you to a bit of gold, and when the “bit of gold” part became inconvenient we decided to skip the entire gold part and keep the “we’ll print” part.

That’s fictional. And it always ends up the same through thousands of years of human history, but, yeah, sure. This time it will be different.

If we’re lucky, we’ll get food as good as the Soviets had it. Why, I hear it was so good that people would stand in line for days just for a single piece!

But there’s also a part of the economy that’s based in raw reality. Rather than trading bits of paper for other bits of paper, or electrons on one storage system for electrons on another storage system, at some point people need to move the actual stuff that all the fictional stuff is tracking.

And that’s real. I can’t eat a beef future that’s been cooked medium rare since it’s on a hard-drive in Pittsburgh or some place. I have to wait until I have an actual ribeye in front of me. Real things are those things that still exists when we stop believing in them. Anyone here want to buy some francs or deutschmarks? Thought not.

They don’t exist.

But they used to. So, by definition, they were only as real as our belief. What’s neat about imaginary things is you can make as many as you want as quickly as you want. I think that since politicians spend our dollars with exactly that mindset, they lose the concept that they can’t just print eggs out of thin air.

I ordered a chicken and an egg from Amazon® today. I’ll let you know.

No, we have a technology that turns insects into usable protein in the form of an egg, the product of thousands of years of human ingenuity. It’s called a chicken. And chickens are real, especially my neighbor’s rooster, who can’t seem to figure out that midnight isn’t dawn.

Real things, like the temperature in my house, are subject to actual physical laws. And the reaction to an action is sometimes something that may take months or longer. Let’s take the price of food. When the price of fuel goes up, the price of fertilizer goes up, and the price of food goes up.

The typical reaction of a politician is to solve the problem by controlling the imaginary lever he controls: spending more than they have. Then the Federal Reserve™ uses the levers they control, namely cash supply and interest rates. Interest rates are an imaginary thing that shows how much extra cash the most recent administration just spent.

But throughout all of this, we can’t imagine a steak. We still need fertilizer to make the grass grow and diesel to harvest and move the hay, and a cow to eat the hay, and someone to kill and butcher the cow and then some way to get it to my house.

Why are pandas at home in San Francisco? They’re vegetarians that refuse to breed.

None of that is imaginary, and is all where the physical world intrudes on the fantasy of finance.

And, just like cooling my house, all of this operates on a delay. The oil is pumped from the ground. The oil is then pumped into a tank. It sits waiting for transport. Then it’s transported to a refinery where it sits in a tank until its turned into diesel or gasoline and put in a tank. And then it’s shipped to another tank where it sits until it’s put into a filling station tank. Then it hits the final tank: the fuel tank of the tractor or car where it will be transferred to the engine and, finally, burned to make useful energy.

At each of those steps there’s a buffer where the oil sits in a tank for some time. That buffer is the lag in the system, the time between when a shortage starts at any part in the process. As the buffer disappears, the shortage that cannot be papered over shows up at last. About 20% of the finished gasoline in the United States is stored . . . in car and truck tanks.

And in six months or a year, we’ll all wonder why steak costs $73.37 a pound and silver $290 an ounce because those can’t be created by changing a computer entry.

I suppose it’s time to save money now for the future inflation crush. I did tell The Mrs. that there was no need to set the temperature so cold on our air conditioner. She told me?

“Not a fan.”

The Strait of Hormuz and the Domino Effect

“Let’s say this Twinkie™ represents the normal amount of psychokinetic energy in the New York area. Based on this morning’s reading, it would be a Twinkie© thirty-five feet long, weighting approximately 600 pounds.” – Ghostbusters

Is it wrong of me that I want this as a t-shirt?

When I was younger, I was reading the book Liar’s Poker by Michael Lewis.

In the book, the author related the story of how he was on the trading desk when news of the Chernobyl reactor meltdown hit. His co-worker, a seasoned trader who’d seen it all, looked at Lewis and said two words:

“Buy wheat.”

The reason was simple. Ukraine was the Soviet Union’s biggest supplier of wheat. Now, radioactive wheat would have sounded cool in the 1950s. Imagine the cereal ads: New Atomic Pops™: NOW FORTIFIED WITH GAMMA RAYS!

The seasoned trader, however, knew there was going to be a shortage of wheat on the world market since the RDA of uranium isotopes has been decreased under the Make America Healthy Again agenda rolled out.

But Chernobyl happened. The consequences? One event, one domino, and the price of bread halfway around the planet starts twitching like a tall tweaker on Tang™. That’s how fast these things move when the stakes are real.

I’ve moved on to nuclear jokes because most of the chemistry jokes argon. What, no reaction?

In a more serious world where consequences were to be a thing that actually happened, I’d bet on a huge economic tidal wave incoming from the current Israel-America-Iran War. Ten to twenty percent of the world’s daily oil supply is stuck behind blockades. To top it off, 14% of Qatar’s liquefied natural gas production is offline, and won’t be able to be repaired until 2029 or 2031.

Then, the Strait of Hormuz: closing, re-opening, closing again like a game of “duck, duck, missile” has already tumbled a lot of dominos.

Right now, the Strait isn’t exactly a freeway. Tankers are rerouting, insurance rates are through the roof, and every time someone blinks the flow sputters. One day it’s open enough for a few supertankers to sneak through. The next, it’s blocked again and prices expand like Madonna’s face after whatever it is she’s injecting into it.

Those first dominos are easy to spot, and they were the subject of a recent post. Fertilizer production is down because natural gas is the key feedstock, so (domino falls) food prices are headed up.

Gasoline, jet fuel, and bunker fuel costs are up, so (domino falls) transport prices are up, too. Trucks, ships, planes, and everything that moves stuff from farm to factory to your grocery shelf gets more expensive.

Freight rates for everything from soybeans to sneakers start climbing. Those are the obvious ones.

But dominos don’t stop at the first few if there are more in line.

I guess we know now who was holding the whole thing together.

Before the big inflation wave really crashes ashore, weird things start happening in the markets. Gold is up on good news and down on bad news. Same with silver.

Why? Because these are assets (at least the paper versions that pretend to be gold and silver) that people can sell fast and clean to cover margin calls, and other ways that they’ve leveraged the market. Each domino leads to other consequences.

What are the downstream consequences? Political unrest? Certainly. We’ve seen it before. We’re seeing it now.

When food prices spike, people in places that were already living on the edge don’t write polite letters to their congressman. They take to the streets. Empty bellies and expensive diesel have a way of turning into pitchforks and torches.

And what about a complete redo of the world economic stage? Yeah, that’s a hell of a big Twinkie®, er domino. But, it’s looking more likely every day.

Here’s the part that should keep you up at night if you’re the kind of person who still believes in fairy tales about “the system.” In a world where almost any country can convert whatever Christmas wrapping paper they crank out of their printing presses into any other currency almost instantly, why does the world need the dollar?

I’ve been asking this question forever on this blog.

I have absolute certainty that the dollar is the same as a cryptocoin made by Algerian, Albanian, or Albigensian pirates: it’s a meme. It’s just a meme that everyone has bought into for 100 years or so. If I can dump the Zimbabwe Zloty straight into Seychelles Shekels, well, no need for dollars as the go-between as I trade my diseased goats for your rotten cocoanuts.

I heard that the Pharaoh’s favorite cook was Gordon Ramesses.

No need at all.

Marco Rubio even let the cat out of the bag the other day when he said that in the future the United States wouldn’t be able to put sanctions on countries anymore because other countries wouldn’t be using the dollar very much.

Now that’s a huge domino!

It was going to happen. There was no way the world was going to forever let the United States print dollars forever and have people send us stuff like oil from the Orient or gold from Germany or PEZ® from Paraguay while we shipped them electronic representations of paper money that was now just too expensive for us to bother to print.

We’ve seen this domino before.

I later found out he had a trap door, so it was just a stage he was going through.

A nation that ceases to be a nation and starts to become a financial entity is toast. One example was Spain. They pulled in all that New World gold, let their economy wither, and offshored the real work to places like the Netherlands because they could not ditch the Dutch. For a while it looked like Spaniards were on top of the world. Then the Indians who gold ran out, and the bills came due.

The final nail in the coffin of Spain, which had been declining for hundreds of years?

When it ceased to be a military power that anyone noticed. The Spanish-American War was that moment for Spain. In the end, I think the Spanish were tired of being Spain since it was so much work, and were more than happy for Great Britain to take the helm.

But that was then. Now Great Britian looks more like Spain circa 1870.

The Royal Navy has more admirals (40) than total warships (25) and only six plausibly active surface warships. Guess that Britannia shan’t be ruling the waves of anything larger than a hot tub anytime soon.

Most of the time, nothing happens.

Markets drift. Politicians talk. Central bankers print and pretend. Then that domino hits, and it happens all at once.

One day the system is humming along on just-in-time deliveries and faith in the reserve currency. The next day the Strait is blocked for real, fertilizer plants shut down, grocery shelves get spotty, and suddenly everyone remembers that energy isn’t optional and cold showers suck. Energy is the blood in the veins of the whole machine.

When the price jumps, everything else has to adjust: wages, rents, retirement plans, and government budgets.

The dominos don’t ask permission.

The United States had to wait for COVID, but China got it right off the bat.

And here’s the part nobody wants to say out loud: the United States has been running on cheap energy and the dollar’s special status for eighty years. Both of those props just got kicked.

Hard. The reset isn’t coming in some distant future. It has already started.

The only question is how many more dominos have to fall before everyone admits the board has been tipped and the Monopoly™ pieces are stuck in the Cheez-Whiz™ covered Rice Krispie® treats.

In the end, dominos don’t care. They just fall. One after another, faster and faster, until the structure is gone. When the last domino drops, the only thing left is whatever you built that wasn’t made of paper and promises.

And sweet, nutritious, gamma rays!

Remember, Kim Jong Un and Dominos™ have a lot in common: they can both make a crispy Hawaiian in less than thirty minutes.

Casualties Of War: Africa, A.I., India . . . And Europe?

“I had the titular role in Out of Africa.” – Upright Citizens Brigade

Will that work? I have my droughts.

World economic systems are straining due to the current IAI (Israel, America, Iran) war. One of the lessons learned from previous economic crises is that issues show up at the weak points first. Back during the Arab Spring in 2011, people in the Arab world were revolting.

I mean rebelling.

One big driver was the inflation that had hit the area. What caused the inflation?

Well, money printing in the United States due to the 2008 Great Recession had finally spread internationally to the Middle East. Certainly, the Middle East is already as stable as a methed-up stripper ex-girlfriend whose rent-check just bounced, so adding vodka to the mix didn’t help.

Countries burned.

They overthrew their governments, and when they didn’t like the new ones, went and got the old ones back. This was caused at least in part because the Arabs were hungry and food was too damn expensive. Can’t farm the desert, so might as well blow the place up.

Which they did.

Once again, the Middle East is center of worldwide economic stress and it’s moving quickly across the world.

Bigfoot is confused with sasquatch, yeti never complains.

In Australia, they’re running out of something they call petrol. If only they knew about gasoline!

In India, they’re running out of fertilizer so it will be difficult to line the streets with poo.

In Taiwan, soon enough they’ll be running low on helium, which is a byproduct of natural gas processing.

Helium?

Yeah, they need lots of helium to make computer chips so that you can make Internet cat pictures that are photorealistic plus I think they huff it a lot which is why they can’t pronounce “R”. Regardless, here’s an A.I. cat for you:

But one place that will certainly be having difficulty is Africa. Africa is the basketcase of the world.

Why? For starters, Africa imports 85% of its food.

85%.

85%.

Why? Farming is apparently too hard, and whenever they have a few white people farming and feeding Africa, black people decide they’ll take the magic farm and get rich. Except they don’t. Lush, productive farms fall into disrepair, but, hey, the Africans who looted the place ate for a day.

Not only that, their governments are also basketcases. In almost every country, the government requires copious amounts of foreign aid to get anything done. I’d make more fun of them, but then I think about our budget deficit and go, “Oh, yeah, at least in America we know some payday lenders.”

So, since they have to bring in food and can’t care for themselves in any way at all, at least they’re doing the responsible thing by keeping their wombs from being clown cars and not having hundreds of millions of children that they have no way to feed, right?

No. They’re turning their wombs into clown cars and having hundreds of millions of children that they have no way to feed.

And, of course, they’ll blame us. In this case, they might be right. We’ve taken a group of civilizations whose only actual contributions to the world are raw materials and AIDS and given them medicine and food. Since the entire continent has been in super-fertile rabbit mode since forever (r/K biology –link below), what did they do with effectively unlimited food and a drastically reduced child mortality?

r/K Selection Theory, or Why Thanksgiving is Tense* (for some people)

Breed.

They’ve gone from a reasonable 10% of the population of the world when I was a kid to more than double that today, as the world population has doubled. They double-doubled. And they were starving and dying when I was a kid.

Regardless, it’s like someone turned on the “African-making machine” and left it on overnight. For decades. And, their population is projected to be some silly number like 40% of the world’s population by 2100.

(as-found)

But that will never happen. Why? Because a big crisis, like the one we’ll be seeing soon due to the IAI war, will simply remove the excess wealth that sends medicine and food down to Africa. We all know what happens next: the senseless deaths, the violence, the revolutions, the cannibalism.

Oh, wait, that’s Africa when things are going well. Things will soon enough get much darker on the Dark Continent as the wealth spigot dries up. I can’t imagine that Europe will continue to absorb them there, either, but then again I never thought the West would be committing collective cultural suicide like it is today.

Sadly, not AI or a horror movie. (as-found)

The IAI war isn’t some far-off desert dust-up that only affects oil futures and late-night cable news. It’s a live-action stress test on every fragile supply chain we’ve built since the last big reset. Oil tankers with $100,000,000 cargos reroute around the Red Sea like it’s a game of dodgeball with $3,000 drones. Grain ships that used to feed half the planet now sit idle or pay pirate insurance that would make your mortgage look cheap.

Fertilizer plants in Europe and Asia that run on Middle Eastern natural gas?

Yeah, those are suddenly “strategic assets” instead of just boring factories. The ripple hits the weak points first, just like it always does. Australia’s petrol shortages aren’t because they suddenly forgot how to drill and can’t figure out how to spell “gasoline” it’s because the tankers that used to show up like clockwork are now playing naval chicken in the Strait of Hormuz.

India’s fertilizer crunch? More natural gas.

And Taiwan’s helium? That’s not some niche nerd problem. Helium keeps the fabs running so your phone can update and your cat video can render in 8K. No helium, no chips.

No chips, no economy that looks even vaguely modern.

It’s all connected, and the connections are fraying faster than a cheap suit at my uncle’s funeral. Africa just happens to be the thinnest thread on the whole sweater. They don’t grow enough food to feed themselves on a good day. They don’t manufacture much beyond raw materials that richer countries turn into actual products. Their governments run on foreign aid the way a junkie runs on his next fix.

And while the rest of the world was busy printing money and inventing new genders, Africa was busy doing what r-selected populations do best when you hand them calories and medicine: exploding in numbers.

The math is brutal and it doesn’t care about feelings. When the aid stops, when the container ships prioritize Europe and Asia over charity runs to the Sahel, when the NGOs pack up because the insurance premiums are higher than their budgets, the party ends. Not with a polite “thank you for the fish,” but with the kind of scenes that make Arab Spring look like a polite disagreement at a PTA meeting.

Who has two thumbs and a poor grasp of visual humor? This guy. (as-found)

We helped create the conditions. Not out of malice, but out of the same soft-hearted, soft-headed Western instinct that says “we have extra, so let’s share.”

We shared vaccines.

We shared grain.

All this while infant mortality plummeted and fertility stayed at levels that would make a rabbit blush.

The result?

The bill is coming due, and the IAI war is just the guy in the suit who shows up to repossess the furniture. Europe already has its hands full with the last wave. America is staring at its own debt mountain and wondering why the grocery bill looks like a car payment. Australia and India and Taiwan are discovering that “just-in-time” supply chains work great until the “just-in-time” part becomes “just-in-case the war lasts another six months.”

The weak points crack.

Then the stronger ones start groaning.

Then the whole system starts looking for someone to blame.

The Dark Continent is about to get darker. Revolutions, famines, the whole greatest-hits album of human misery played on repeat.

(as-found)

And the rest of the world? We’ll be too busy trying to keep our own lights on to send another aid convoy. And I worry the most about rebellion here. Especially among the cows.

I can’t abide a mootiny.