Cheap Prosperity Or A Logistics Trick? Time Will Tell.

“They’re expecting transports, not gunships.” – Die Hard

Meat is murder.  And cake is battery.

I was sitting around Stately Wilder Mansion the other night thinking about beer and steak.  I like both beer and steak, so it was a pleasant thought.  Then I remembered that a ribeye was technically more valuable on a per-pound basis than my liver, especially with the number of miles I have on it, and began to think about just how important energy is to, well, all of it.

Let’s go back to the steak.  Chances are, this steak was raised in Texas.  Or Nebraska.  Or Colorado.  I bought my last steak at Wal-Mart™, so chances are really good that it came out of one of the 11 beef packing plants in the country that produce half of the beef for consumption.  Four are in Nebraska, three each in Kansas and Texas, and two in Colorado.

I still can’t believe they use that land to raise cattle rather than put in data centers.

Since Meat Loaf died, is he now Ground Beef?

Regardless, my steak probably came from one of those places.  It was raised on a ranch, probably in one of those states, since, if you add in Iowa, and who wouldn’t, those states produce 77% of the beef in the nation.  Then the beef is flung across the nation, as if from a merry-go-round whipping along at 37,000 rpm (40,000 kiloPascals).

This requires a lot of energy after the steak has so kindly and peacefully disassembled itself into its tasty parts and its leathery bits.  Almost all of the cow is used and sold in some fashion, so there’s not a lot of waste.  But it has to be cooled or frozen, otherwise by the time the beautiful steak reaches the counter, it won’t be very tasty at all and will smell like, well, not good.

The fact that steak could be shipped from Nebraska to New York for about $0.10 to $0.15 per pound is astonishing.  And it requires fuel and coordination on a continental scale.  Any disruption and the price of my steak goes . . . oh, my.

It’s already disrupted.

I once buried someone in the wrong hole.  What a grave mistake!

The same thing occurs with that fish I bought at Wal-Mart©, except now we’ve moved up the chain to a global scale.  It was caught off the coast of Chile, shipped to (checks notes) Vietnam for packaging, frozen, shipped to the United States for distribution, and then The Mrs. buys it because you’d never catch me eating fish while there are cows, chickens, and pigs still hoofing it around.

All in, this costs only $0.50 a pound or so.  Oh, and 60-90 days.  The fish has now moved thousands of miles.

Then, the Big Kahuna, oil.  Let’s take a barrel of oil and transport it from Saudi Arabia to the United States, and then take it (as a gallon of finished gasoline) to Iowa.  That can be done in good times for the astonishingly low price of about a quarter.  Nowadays when the transport market is whacked because of Iran?

Still less than $0.40 a gallon.  And that price whips that gallon of hydrocarbon halfway around the world.

We determined that the leading cause of dry skin in our house was towels.

Cool story.  What does it mean?  I mean, I know I’m not planning on eating fish, but cool story bro, but who cares?  The world is a web in 2026, interconnected in amazing ways to create supply lines that no human could manage, and yet that are brutally efficient.

Efficient, as I’ve mentioned again and again, means vulnerable.

Purchasing is done at the margin.  That’s economic nerd speak for, “Yeah, sure, but how much does it cost?”

If I look at taking a shower and water is $0.01 a gallon, I might sit there for half an hour until every part of my skin wrinkles up like Hillary Clinton’s face.  If water is $10.00 a gallon, that means I’ll likely have an entirely different relationship with showering and start rubbing myself with small fur-bearing animals to dry-scrub the stink off.

The ducks at the park keep biting my dog.  Shouldn’t have gotten one that was pure bread.

Right now, gasoline and diesel demand are dropping because their costs are going up in a painful way.  This is impacting the cost of every physical good, from water to steak, and not in the good way.  There are only two results from this situation:

  1. Recession, or,
  2. Inflation.

We have gone far beyond the time when politicians will allow a recession.  At any sign of those, the money printer goes brrrrrrrrr.  The result?  Huge inflation in things like wheat in poor countries, which leads to revolutions and uprisings.  People can’t eat, governments can’t govern.

Building a grain processing facility can be profitable.  I’m hoping to make a mill by the end of the year.

The time, though, when other countries can soak up the money-printing recession plot armor seems to be passing, at least based on everything that I can see.  This year?  Maybe.  Next year?  Possibly.  Six years from now?  Almost certainly.

The webs that brought us cheap prosperity and ludicrous supply lines seem to be under stress.  I’m thinking that opening up more data centers might help, just like a second dishwasher might stop a drought.

Oil, Oil, Toil And Trouble, Plus? Raccoons.

“No long, slow sleep of death embalmed.  We shall burn, like the heathen kings of old.  Bring wood and oil.” – Return of the King

AOC is introducing legislation to make him climate friendly and change his name to Vin Solar.

Arguably, the biggest machine humanity ever built is the hydrocarbon industry.  Annually over half of a trillion dollars are spent exploring for it.  Oh, sure, that’s what a Big Mac© will cost in 2036, but right now I wouldn’t turn it down. That’s just finding and getting it out of the ground.  All in, with pipelines, ships, rail cars, and refineries, it costs about $1.2 trillion a year.  Well, that was last year.

This year it will be more.

The killer is supply and demand.  Less oil is getting on a boat and going to Rotterdam, so that takes it off the market.  The Strategic Petroleum Reserve is nearing levels that some have said risk damaging the storage infrastructure itself, but it’s in Louisiana and Texas, so they’re used to the smell of oil in the morning.  Smells like . . . money.

But what people miss is that it’s a finely tuned industry.  It’s not like there are extra wells sitting around, waiting to produce.  And, after Ukraine sent all those flying lawnmowers covered in C4 into refineries in Russia, that stung.  It ended up taking out millions of barrels of capacity versus their peak refining capacity.  That’s less bubbling crude being turned into diesel.

What would Jed Clampett do?

Thankfully, we also have Gulf War VII, Part 58, so that the oil produced is actually even lower than the capacity of the refineries.  The IEA© (That stands for International House of Pancakes®, but in French, I think?) is guessing that things are rapidly falling apart when it comes to the amount of oil available and the fuel we can make out of it.

We have an oil tank.  And its level is dropping.

Even when the oil comes back, we still need to figure out how to mash it into diesel, which won’t happen overnight.

What does that leave?

Demand destruction.  Those are fancy words, but the short version is that the solution to high oil prices is high oil prices.  Yes, I used to drink gasoline like it was milk back in the day, because despite trillions of dollars being spent to find it, drill it, pump it, pipeline it, smash the dead dinosaur molecules around so the T. Rex bones don’t get stuck in the bottom of my gas tank, gas was cheaper than bottled water.

Was.

Now it’s expensive, so people will stop drinking gasoline and diesel.  And they’ll stop driving.  And they’ll stop idling their cars so they use less of that wonderful fuel.

If you lock your girlfriend and your dog in the trunk for an hour, generally only one of them is happy to see you when you open it back up.

As we’ve discussed before, the poorer nations will be hit first, and hit hardest.  For me, it means, well, nothing as far as my fuel purchases.  I drive about four miles a day on the average day, so add the three and carry the two . . . that’s about 120 miles a month.  At $4.50 a gallon and 20 miles per gallon, that’s, dang, complicated.  It’s too complicated to figure out.  You’d have to use multiplication or some other tool of the Devil.

As gas.  Not as the economy, and it’s an isolated view.

But the cost of fuel is a tax that hits every physical object that is moved in space to be bought and sold.  I know that now that if I want steak, because it’s steak and who doesn’t want steak, it will now cost more.  It costs more to get food to the cattle, move the cattle, convince the cattle politely to disassemble themselves into Wilder-sized portions, and move their soon-to-be-grilled-ribeyes to my house.

What’s more Irish than potatoes?  No potatoes.

If that gets too expensive, maybe I’ll have chicken.  But for the person who can already only afford chicken, I think they have to move to something like mouse.

The short version is that demand destruction means people don’t buy as much of whatever demand is being destroyed because they can’t afford it.  Demand destruction is just a fancy way of saying, “you’re all getting poorer, so learn to catch raccoon”.

There’s other positive news!

10 of 11 postwar (World War II, not the Franco-Prussian War) recessions were produced by . . . oil price highs that exceeded the three-year high.  Which is right where we are.  This didn’t happen in 2022, because everyone just decided to print money so we could build all the data centers we can eat instead of having a recession, so in my mind we just kicked the can down the road a bit.

Money printing is magic!  Do you think they’ll stop now?

No.  But what about oil.  We make and export oil now.  Surely, John Wilder, that will save us!

No, it won’t.

Surely that will never happen with the dollar, right?

I mean, sure, it’s nice that roughnecks will be getting some more hours in down in Texas, but that doesn’t help much when you’re a farmer trying to harvest the crop with diesel that’s now twice as expensive as you planned on.  On balance, my money is still on this increase in oil prices resulting in not only demand destruction but salary deconstruction.

Salary deconstruction?  Oh, nevermind that.  It’s just a fancy name for people getting fired, or not getting hired.  Raises will be down right at the time that people will be feeling more costs, and it will be harder to get a job.  In the 1970s we had stagflation.

I wish this would be Epsteinflation, because at least then we’d never see it.

No, this will be Zendayaflation, because even though no one wants Zendaya, Zendaya is everywhere and in everything.  Like the inflation we’re starting to see, small, mean looking, but you know that it’s going to grow and resemble a linebacker.

I bet when Zendaya starts counting carbs, she’ll go for a high score.

How do you get $1.2 trillion?

Just jam up the world’s biggest machine, and then create ones and zeros so we can spend them faster.  The downside of that Big Mac© that costs only $1.2 trillion?

You don’t get any fries.  And the burger isn’t exactly made of beef.

California, A Revolt Against Physics, And The Victor Davis Hanson Cycle

“In California, they’ll have warm weather tomorrow, gang wars, and some overpriced real estate.” – Groundhog Day

My friend cut an artery, and the first aid book said to apply pressure, so I yelled at him, “If you don’t stop bleeding right now, you’ll die!”

The State of California has, in its infinite wisdom, decided to change physics to what they would like it to be and picked a fight with friction.  The new law creates the first rolling resistance efficiency standards for replacement tires.  Yes.  That.  I know, I know, they said, “Join the GloboLeft, it’ll be cool baby, you’ll have all the weed you want.”

But, let them in to absolute power, and soon enough their inner Papa Stalin pops out.

The idea is a simple one:  have California create the Tire Immigration and Control Enforcement Division (TrICE) and set them to regulating.  Those will apply to nearly everyone.  Oh, if you have a Lambo®?  Yeah, you can still get grippy treads.  Same if you have the bucks for an extreme SUV that actually goes to places other than the grocery store and Pilates and the wine bar.

What would you call a horror movie in California after they outlawed gasoline cars?  “The Silence of the Lambos.”

The good intention is that it will force allow California consumers the ability to avoid pesky choices and to spend an extra $200 to $400 per set of tires in 2033.  Now, that’s an “industry estimate”, which is suspect, but the “regulator estimate” is laughable of . . . $1.50 to $6.50 a tire.  $1.50 a tire?  Obviously, a lie.

Here, I’m for the consumer being able to choose what kind of tire they want.

Given that, it sounds like I’m a free-trader.  Mostly?  I’d prefer those tires be made in the United States, so I’m okay with a tariff if we decide it’s worth it for that industry.

I’m complicated.

Anyway, it’s not illegal to own these cheaper “non-eco” tires.  A Californian in 2031 can buy them in, say, Nevada and drive back to California.  The bet is that people will be too lazy to do that or gas will be so expensive that they’ll be out fighting to save their rebel refinery from BDSM-clad bikers so they can escape the desert.

My take?

None of that will happen.

What will happen?

We’ll have groups of illegal aliens opening up illegal car tire bodegas.  Sure, it’s illegal, but they’re already illegal.  They already skirt every law that they can.

Later Speedy© got a job installing carpet, you could hear him for miles, “Underlay, underlay!”

These might be fly-by-night places where a vacant lot turns into Speedy’s ¡Ándele, Arriba! Tire Stop® for a weekend.  Speedy will drive to Nevada, buy a truckload of illegal tires, and then sell them to you!  This is not unrealistic, because illegals already do everything they can to avoid paying taxes, so sales tax would probably be optional.

Then, the hard-working illegal aliens would take the used tires and dump them.  Probably at Victor Davis Hanson’s house.  Then, Victor Davis Hanson would get a citation for illegally operating a landfill.  Victor Davis Hanson would then go to court and plead innocent and maybe use the word “illegal alien” accidentally and then get charged with the Hate Crime of Illegally Discriminating Against Friendly Visiting Valuable Migrants by objecting to them using his farm for a landfill.  Then, they’d send Victor Davis Hanson to prison, and give the land to the Friendly Visiting Valuable Migrants because it was land that was stolen by colonialists anyway.

Sure, sounds like satire, but it’s a reality already that California has a three-tiered justice system:

  • A carte blanche for the media/techno sect of the GloboLeftElite,
  • Actual arrests and jail and taxes for the Average Joe,
  • Another hall pass anyone else who isn’t white or Asian.

Victor Davis Hanson is clearly inside the Average Joe classification, especially since in California because he’s white and not a movie star, so he’s stuck inside the only classification where laws are actually enforced in California.

I’m not trying to pick on VDH, he’s just the one that’s written most extensively about the abject failure to apply the law to illegals in California.  But he still lives there, so in the end the state may eat him.

Don’t let California know about the car that runs on dead leaves, if they find out they’ll mandate the autumn-mobile.

It is clear that California is headed down the road to a dystopian hellscape.  Sure, this is just tires, but California seems to think that they are capable of repealing the laws of physics.  Take, for example, that by 2035 California intends to ban the sale of gasoline powered passenger cars.  This was an executive order by Governor Zoolander Newsom, the Plastic Man with the Reptile Smile.

Did he ignore the fact that Pacific Gas and Electric, (NYSE Symbol “GRASSFIRE”) can’t produce enough electricity for Californians now without causing the place to blaze up like a Cheech & Chong® fan convention?  No, because they’re not allowed to actually build power plants, because that could cause carbon to go into the air.

Bad mayor, worse firefighter.

Instead, Californians just buy it from across state lines so carbon goes up into the air in a different state, so they can export carbon production and import smug virtue.  And higher prices.

But to Californians, the disconnect between the cause and the effect doesn’t matter.  “Something that’s been in motion for a decade makes my life miserable now?” is a thought that cannot occur in the mind of a California leftist because they are so inundated with the dopamine they get from their good intentions.

And the state gets crappier.  But, hey, no one wants to defund TrICE, right?

There are many variations on this theme that we could continue with, from the state’s affinity for illegal aliens to their declaring playground sand a carcinogen (yes, they did) to not building a train but spending billions to not do it to letting tens of thousands of criminals out of jail just as violent crime is increasing in California cities.

What do you call a group of deaf people?  I don’t know, but it’s definitely not a herd.

I’d blame it on incompetence, but the GloboLeftElite seem to have found a winning ticket in California with a modified Cloward-Piven plan to just make everything awful and blame it on someone else, say capitalism or Donald Trump or colonialism.

Each failure seems to bind voters tighter to them, while the Average Joes, to the tune of hundreds of thousands a year, are flooding to anyplace but California.

But, hey, at least they’ll have decent tires thanks to the only functioning institution left in the state:  Speedy.

Civil War 2.0 Weather Report, Force Assessment

“That way management can assess who’s valuable and who’s expendable.  It’s just business.” – American Beauty

There’s a new urban reality show where judges free inmates who like fishing, called “Off the Hook”.

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

Volume VIII, Issue 4

Most memes except for the clock and graphs are “as found”.  I have maintained the Clock O’Doom at 9., but given the lower numbers on the indexes and the lower number of violence and censorship events, will likely lower the level next month if violence stays low.  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 – Chinese Assessment, Civil War 2.0  – Violence and Censorship Update – Misery Index – Updated Civil War 2.0 Index – 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 920 other people and get every single Wilder post delivered to your inbox, M-W-F at or before 7:30AM Eastern, free of charge.

Chinese Assessment, Civil War 2.0 

This is a longer piece.  Obviously, I don’t have a friend in the PLA’s Institute of War Studies who sent this to me (THANK YOU SO MUCH CHANG!) but I do have a large number of readers from the People’s Republic of China, so here’s a shout out to you guys!

Part of being in the United States is that we’re invested in the outcome of a potential future Civil War in a big way.  The Chinese?  They’re interested.  So, I tried to come up with what a somewhat neutral third party would say about Civil War 2.0.  I do know this about militaries, they have plans for everything, so I know that China has a document based on a future American Civil War, so I thought, Wilder, what if you wrote one from China’s perspective?  Here’s my attempt.  It’s dry.  Only one joke.

People’s Liberation Army
Institute of War Studies
For:  General Staff/Theater Strategic Research Cell
INTERNAL DRAFT – NOT FOR RELEASE

Subject:  Possible forms of large-scale internal armed conflict in the United States; relative combat potential; implications for our strategy
Character:  Contingency estimate and outcome review.  This is not a strategic directive.
Constraints:  No actual names of U.S. persons.  No executable strike list against the U.S. homeland.

  1. Mission and Purpose of the Estimate

This estimate reviews four questions:

  1. If the United States enters a large internal conflict between an inland nationalist, armed civil-society coalition and an urban–institutional–transnational coalition, what is the balance of war potential?
  2. On what time scale could the conflict unfold, and how cities and logistics could fail?
  3. How would outside states recognize, hedge, or feed both sides?
  4. What window and what risk does this create for our main strategic direction: Taiwan, the Western Pacific, energy and grain routes, and dollar clearing?

An American internal war is not two field armies advancing on a front, instead it is the splitting of a state machine.  From our viewpoint, the decisive prizes are fragments of nuclear command authority, which government foreign nations will still treat as a government that can sign contracts and that can keep ports and bulk food moving.  A rapid national reunification by either coalition is usually worse for us than a long dual-authority stalemate that cripples external power projection.

  1. Situation and planning assumptions

Assumption A.  The trigger is domestic:  a disputed transfer of power, a federal–state armed standoff, a nationwide attempt to confiscate arms or starve ammunition supply that states refuse, or a systematic civil-liberties crackdown that produces organized nullification.

Assumption B.  The active-duty force does not split cleanly along electoral maps.  State National Guard, some reserve components, veterans, and local law enforcement will show regional tilt.

Assumption C.  In the opening period, intercity trucking and regional electric service are interrupted for days and possibly weeks.  This follows from just-in-time urban design and capitalist logistics.  It does not require a precision sabotage campaign to create failure.

Assumption D.  We do not seek American territory. The task is window management, risk hedging, and competitive shaping.

The United States has on the order of 340 million people. Partisan identification is close. Cities hold population and a majority of output. The interior holds land, calories, and most onshore hydrocarbons. That is the base conflict map.

  1. Identification of the Two Coalitions
Label Center of Gravity Geographic Weight
Red Force, the state-rights /traditional Americans Rural and small-town population, a majority of veterans by affiliation, higher personal firearms density, many state executives and county law officers in the interior Heartland, Plains, Mountain West, much of the South and Appalachia, growing Sun Belt interiors
Blue Force, urban/ institutional/ globalist Dense metros, universities, much of media, ports, hospitals, finance, a large share of the federal civilian apparatus Coastal and Great Lakes cores, a few deep-blue states, the diplomatic and dollar-clearing nodes

 

  1. Relative Combat Potential

4.1 Numbers

Blue Force has the larger share of people and of high-value economic output in compact space. Red Force has the larger share of land and of counties that produce food and fuel.  Raw headcount favors Blue. Staying power on territory favors Red.

4.2 Age and Manpower Quality

Younger urban cohorts lean toward Blue, especially young women. Older cohorts and a large share of military-age males with weapons experience lean toward Red. Red Force’s core is older. Blue Force’s demographic is younger and has no experience with hardship, especially in field conditions.

4.3 Means

The largest force asymmetry is distributed firearms and veteran skill on the Red side.  This is counterbalanced by the institutional, financial, medical, and information infrastructure on the Blue side.

Personal gun ownership is on the order of twice as common in the general voter on the Red side as in the Blue aligned voters.  A key factor is the he national stock of firearms is measured in the hundreds of millions.  However, active-duty United States military services remain the only formation that can move at continental scale with aviation, logistics, and nuclear custody.  Their loyalty is the war’s hinge but it is not sure that they will follow either coalition.

4.4 Cohesion

Red Force coheres around land, faith networks, veterans’ organizations, and distrust of coastal institutions.  It fractures around personalities and between libertarian, populist, and traditional-conservative currents.

Blue Force coheres through bureaucracies, universities, city governments, and remaining national media.  It fractures among socialists, corporate liberals, and identity factions the moment scarcity arrives.

4.5 Command

No single chain exists at the start.

  • Governors command Guard forces until a federalization fight is won or lost.
  • Active-duty officers swear to a constitution, not a faction.
  • Blue Force has more practice running large organizations and talking to foreign ministries.
  • Red Force has more small-unit and land skill and more of the interior’s elected law officers.

Expected command picture:  federated, messy, multiple “capitals,” local strongmen.

4.6 Public Order

Urbanization predicts recorded violent crime better than party label. Dense Blue cores will face faster public-order failure when lights and food stop.  Rural Red areas will face their own disorder:  freelancers, score-settling, and local bosses.  Neither coalition is “the professional army” and neither is “the mob.” Both will generate both, though Red coordination structures are likely more resilient to the certain outages of power and information and less prone to the civil violence commonly seen among blacks.

  1. Environment: terrain, logistics, systems

5.1 Terrain

Continental distances, the Rockies, the Appalachians, the Mississippi system, deserts, and northern winter all punish long supply lines.  The countryside is hard to occupy.  The city is impossible to live in without electricity and trucks.

5.2 Food and fuel

California leads agricultural production on a per dollar basis, but most food (grain, oilseeds, cattle, hogs) is produced in the Midwest and in the Plains.  Metros run on continuous inbound trucks.  Retail inventories of food in large cities are measured in days.  Western and southwestern cities are more exposed to food-supply shock than Midwestern and northeastern cities.

Onshore oil and gas are concentrated in Texas, New Mexico, North Dakota, Oklahoma, Pennsylvania, Louisiana, Wyoming, and similar interior producers.  Coastal Blue states are large consumers and are generally net energy importers.

5.3 Power

The bulk power system consists of three grids Eastern, Western, ERCOT.  Texas is nearly an electrical island.  Peak imports into California have already been source of unreliably during long durations of elevated temperatures.  Urban counties show higher outage burden than rural counties in recent published studies.  When bulk power fails, water pumps, sewage, hospitals, elevators, and card payments fail behind it.

5.4 Chokepoints of national significance

Interstate junctions, rail hubs, river locks, pipelines, a small number of container ports, and a small number of food-distribution counties. Blue Force lives at the receiving end of these systems. Red Force lives nearer many of the producing nodes.

  1. Urban System Under Multi-Day to Multi-Week Loss of Power and Food Shipments

Planning assumption: inbound freight and bulk power are unreliable for days and possibly weeks. This is enough to break modern metros.

“Collapse” means loss of municipal control and mass uninhabitability.

“Hold” means some authority, a port or river, nearby production, or milder climate keeps a fraction of the population in place.

6.1 Blue-aligned cores most likely to collapse first

  • Desert metros (Las Vegas type; Phoenix type).  No local water or calories at metro scale.
  • Hyper-dense coastal islands (New York type).  Four to five days of point-of-sale food in official city studies; extensive use of bridges and tunnels; and apartments that need electricity for water.
  • Inner Bay Area type.  Peninsula geography, little staple production, dependence on Central Valley corridors and imported peak power.
  • Los Angeles basin type.  Conditionally fragile.  Nearby valleys can feed it only if corridors and pumps still work.  Population scale and imported water make simultaneous failure catastrophic.
  • South Florida strip type.  Peninsula, heat, storms, imported food.
  • Boston or New England type.  Winter energy tightness and thin local staples.
  • Federal district core.  Political value high, local calories near zero. Survival depends on neighboring state authorities.
  • Hawaii. On the order of nine-tenths of food imported. Sealift and air cargo stop, stores empty in days.

6.2  Blue-aligned cores that may hold

  • Chicago type. The country’s central food and freight node beside Illinois–Iowa production.  Lake water still needs treatment and pumps. If farms still sell into the city, it lasts. If the farms withhold, it becomes New York.
  • Twin Cities type. Grain and protein nearby; winter without gasoline is the killer.
  • Sacramento type. Sits in the Valley rather than at the end of a long hose.
  • Willamette/Portland type. Actual nearby mixed farming.
  • San Diego type. Naval and port footprint; milder climate than desert metros; survival rises if naval authority keeps the harbor working and Los Angeles out.
  • Philadelphia–Baltimore type. Mid-Atlantic farms and ports; less isolated than Manhattan, yet in the midst of collapse already.
  • Great Lakes rust-belt cores. Poor social baseline, better food geography than the Southwest.
  • Atlanta type and other blue city halls inside mixed or red states. Resilience is political: the surrounding state may provision the tax base or quarantine the enclave.
  • Front Range type. Some nearby production; long truck bridge; water is the weakness.

None of these are self-sufficient if the regional truck and grid system is actually down. A collapsed city is not automatically captured by Red Force, it may simply cease to be a city.

  1. Victory Objectives

Neither coalition can cheaply occupy the other’s core terrain.

A Red Force win looks like: enough territory and calories to deny Blue a working national government; surviving state machines; a settlement, partition, or “restored constitution” that Red Force recognizes.  Occupying hostile coastal megacities would consume Red Force.

A Blue Force win looks like: retention of federal forms, the dollar, ports, and foreign recognition; isolation of interior resistance.  Occupying the interior against a dispersed armed population would consume Blue Force.

Most likely military-political outcome: multiple authorities, a humanitarian disaster, a poorer and less sovereign United States.

  1. External Actors

Outside countries will not “join a side” as in a treaty war.  They will protect their interests and choose to deal with the winner that best serves their national interests.

8.1 China’s Preferred Outcome

A United States that can no longer concentrate power in the Western Pacific, while still buying our goods and servicing dollar assets until a substitute currency system is in place.

  • A fast Red Faction victory is dangerous if the survivor is coherent, energy-rich, hostile over Taiwan and technology, and still willing to use export controls and naval power.  It is less dangerous if that survivor withdraws from Asia.
  • A fast Blue Faction victory is dangerous if it restores a working Pentagon, alliances, and export-control regimes and insists on maintaining its cultural hegemony.
  • A long stalemate is the best of the bad outcomes:  while markets seize, naval fleets argue over which orders are legitimate.  During this period, Taiwan is isolated and external military force projection become impossible for the United States.

Therefore, the rational course for China is dual-track:  public language of stability and non-interference.  But we will fund either side with covert information, finance, and selected commodities to prevent a short decisive win.  We engage in recognition of whoever holds the UN seat, but will continue to provide enough life support to the other fragment to keep the split active.  We buy soy, pork, and energy from the interior and sell finished goods into coastal metros.

A famine that kills our suppliers and a coastal crash that kills our consumers are both to be avoided.  The best condition would be a managed paralysis.

8.2  Goals of Countries Hostile to the United States

Russia/Iran/Best Korea:  Aligned with China in wanting a weaker United States, and longer term Russia has designs on Alaska.

8.3 Neighbors of the United States

Mexico will prefer a Blue Force victory due to a need for an outlet for their excess population and as a source of funding.

Canada is more tightly bound to the United States since they are wired into the electrical grid, and export automobiles, grain and energy.  A non-functional United States is an existential Canadian problem, though a potential Chinese foothold on the continent.

8.4 U.S. allies

Pacific:  Japan, ROK, Taiwan, Australia, and New Zealand

They ask one question:  is there still a navy and a nuclear deterrent that will appear in the Pacific?  They will follow continuing command authority.  Their only win is for Red Force to win decisively and keep the fleet intact.  A Blue Force that holds ports but loses interior fuel and manpower looks will provide no support.  They have little ability to influence the events of a civil war in the United States.

European Union and the United Kingdom.

There is a cultural affinity with Blue Force.  They are in terror of Red Force abandoning NATO; and feel equal terror of a collapsed America.  They have little ability to influence the events of a civil war in the United States.

  1. Wild Cards
    Urban gangs and border cartels.
    Winter, hurricanes, western fire and drought.
    Nuclear and strategic-asset custody.
    Dollar collapse.
    A disease event on top of disorder.
  2. Implications for Our Strategy

10.1 The window

A United States arguing over which fragment owns the Pacific fleet is a United States that cannot run a two-theater war.  That is the operational meaning of this contingency for the first island chain.  As cracks open, we should have plans in place to take advantage of the advantage this will give us.

10.2 Risks to us

  • Financial contagion that destroys our reserve portfolio and export demand.
  • Loss of U.S. soy, pork, and energy shipments if interior authorities stop exporting or if ports freeze.
  • A surviving American fragment that is poorer, angrier, less legally constrained, and considering expansion.
  • Allied emergency coordination that freezes the map against us (United States bases stay manned by European allies).  This is unlikely.

10.3 Recommended posture for study

  1. Treat prolonged dual authority as the outcome to shape toward.
  2. Prepare recognition and trade channels for more than one U.S. fragment (ports, grain houses, energy terminals) without early exclusive commitment unless that commitment comes with extraordinary opportunity.
  3. Insulation of our own grain, energy, and payment exposure to a dollar seizure or a Gulf–Pacific simultaneous crisis.  Continue to build stockpiles of critical minerals and commodities.
  1. Estimate in One Paragraph

Red Force is stronger in distributed arms, veterans, land, food, and hydrocarbons.

Blue Force is stronger in people, money, ports, formal institutions, and the existing alliance-and-dollar network.

Neither can cheaply occupy the other’s core.  Desert and hyper-dense coastal Blue metros fail first when power and trucks stop.  Blue Midwest lake-and-rail metros fail later.

Outside powers will not crown a winner if they are thinking clearly.  Our interest is a United States that cannot concentrate, not a United States that has been replaced by a single hostile survivor.

Violence and Censorship:

War was declared on Spain, yet they’re not fighting back:

Ireland . . . excellent!

England, however, hates itself and is censoring it’s national symbol:

Never forget, the GloboLeftElite hates you.

Misery Index

The new Trump administration is shown in red.  Results continue to be much better than Biden’s misery.

But all those data center jobs?

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 way down.  Too hot for all that?

Political Instability:

Down is more stable, and it went down again this month to a near-record low.

Economic:

The economy ticked up slightly last month but I’m concerned.

Illegal Aliens:

Still the near lowest level since the Weather Report started, but remember who they are.

LINKS

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

BAD GUYS

https://www.zerohedge.com/political/inflection-point-arrives-dsas-unofficial-america-hating-communist-mascot
https://www.wsj.com/politics/policy/the-dsa-is-using-coffee-with-comrades-and-socialist-softball-to-convert-the-curious-ffcbcc65
https://nypost.com/2026/08/15/us-news/socialist-ny-lawmaker-emily-gallagher-says-shoplifters-have-a-biological-need-to-steal/
https://www.zerohedge.com/political/democratic-socialists-openly-call-erasure-constitutional-government
https://www.zerohedge.com/political/inflection-point-arrives-dsas-unofficial-america-hating-communist-mascot
https://twitter.com/i/status/2042031825887936702
https://modernity.news/2026/09/05/copycat-clancy-horror/
https://www.telegraph.co.uk/us/news/2026/08/09/mexican-influencers-murdered-live-streams/

GOOD GUYS

https://www.youtube.com/watch?v=QYSaeU5qC70
https://x.com/FoxNews/status/2096564604646068341

ONE GUY

https://www.youtube.com/watch?v=LpWxamM96bg&t=31s
https://cowboystatedaily.com/2026/08/26/trans-protestor-has-self-defense-hearing-over-drawing-gun-in-laramie-street/

BODY COUNT

https://www.dailymail.com/health/article-16044311/massachusetts-governor-maura-healey-abortion-law.html
https://www.visualcapitalist.com/mapped-how-the-american-population-map-will-shift-by-2050/
https://cms.zerohedge.com/s3/files/inline-images/2026-08-12_09-25-50.png?itok=Ogu-3AuJ
https://archive.ph/LaP2e

VOTE COUNT

https://www.youtube.com/shorts/XgSnP_KD_CU
https://www.michigannewssource.com/2026/08/michigan-sheriff-receives-whistleblower-allegation-state-software-automatically-registering-noncitizens-to-vote/
https://www.themidwesterner.news/2026/08/citizen-only-voting-initiative-faces-monday-canvassers-vote-after-staff-recommends-rejecting-petition/
https://ballotpedia.org/When_states_can_begin_processing_and_counting_absentee/mail-in_ballots,_2022

CIVIL WAR

https://www.amazon.com/dp/1984801376
https://www.pbs.org/wnet/amanpour-and-company/video/a-second-civil-war-and-the-country-fractured-in-two-thats-the-imagined-future-in-author-kurt-andersens-new-novel-xexbrf/
https://www.axios.com/2026/08/30/socialists-fight-aoc-2028
https://www.thebulwark.com/p/gop-plot-to-sabotage-jd-vance-2028-prospects
https://www.nytimes.com/2026/08/10/style/america-is-atomizing.html?unlocked_article_code=1.4VA.1iQ7.eLCo7EZHLM8d&smid=url-share
https://www.zerohedge.com/political/socialist-leader-says-quiet-part-out-loud-affordability-pitch-masks-guerrilla-class-war
https://modernity.news/2026/08/09/uk-intelligence-warns-of-civil-war-plot-against-migrants-convenient-demonisation/
https://www.nytimes.com/2026/08/18/magazine/national-blackout-power-electricity-outage.html?unlocked_article_code=1.6VA.oPoZ.in0JSEQwfHWI&smid=url-share

Strippers, Credit Cards, Basement A.I., And Economic Collapse

“I’ve calculated the precise distance, taking into account the acceleration and wind resistance retroactive from the moment the lightning strikes, which will be in exactly 7 minutes and 22 seconds.” – Back to the Future It’s easy to confuse Stephen Hawking and Tony Hawk.  Both loved ramps. Everything is fine before the car hits the … Continue reading “Strippers, Credit Cards, Basement A.I., And Economic Collapse”

“I’ve calculated the precise distance, taking into account the acceleration and wind resistance retroactive from the moment the lightning strikes, which will be in exactly 7 minutes and 22 seconds.” – Back to the Future

It’s easy to confuse Stephen Hawking and Tony Hawk. Both loved ramps.

Everything is fine before the car hits the wall.

And everything looks fine. Let’s think about the economy compared to a car.

The car is at a stop sign. It’s moved zero feet. It’s at rest, and it isn’t accelerating. I know, I know, still no reason for a woman to be behind the wheel.

Now it starts to move. It’s moved 200 feet (10 kilometers). It’s now moving at around 15 feet per second (10 millicuries/fortnight). Since it was initially at rest, we can assume it has accelerated. Accelerated is just a fancy term for “put the pedal down”. I accelerate smoothly at the same rate since I’m neglecting air resistance and have determined that the world is perfectly spherical, frictionless, isothermal and isosomethingelse.

I hear the Orc© siege engines used Mordor oil.

Eventually, some time down the road the car reaches my desired speed, which is five miles over the limit, just like everyone else. I pull my foot back so that it’s moving along at a constant velocity. I’m chewing up the miles, and soon enough will be there at the appointment to have my backhair waxed off again.

Reasonable, right?

NO! This is a catastrophe! It’s hitting a brick wall. I mean, it’s a catastrophe if my car is made by Nvidia©.

Nvidia® has a Price to Earnings ratio (PE) of 31. That means that people are betting that not only will Nvidia™ keep accelerating, it will do so for a while since it would take 31 years of earnings to equal the current stock price.

Nvidia© is the largest company in the world at nearly $5 trillion in valuation . . . has to get about 40%-50% bigger to match the same PE as, say, Microsoft®. That’s the bet on companies like that.

But A.I. is different. The bet isn’t that the company will keep growing, the bet is that the growth will keep accelerating. Forever. That’s what keeps Jensen Huang in champagne, leather jackets and hot chicks. Okay, he’s apparently happily married, but I’m not letting the truth get in the way of a good line.

What gets burning hot right before they freeze? Laptops.

But even the projected growth of A.I. is . . . not going to keep up.

In 2023, the big 4 spent $145 billion.
In 2024, the big 4 spent $230 billion.
In 2025, the big 4 spent $410 billion.
In 2026, the big 4 are projected to spend $725 billion.
in 2027? $920 billion.
In 2028? $1.08 trillion.
In 2029? $1.22 trillion.

Now, I don’t believe these numbers. At all.

But in them is an interesting nugget. If you look not at the spend, but the rate of increase in the spend, it goes down starting in 2027. You can do the math. The foot is coming off of the accelerator.

In reality, these projections are already bogus.

The implied new capacity of electric power required for this nonsense proves it:
in 2025, 37GW
in 2026, 66GW
in 2027, 84GW
in 2028, 98GW
in 2029, 111GW.

Hahahahahhahahahaha!

Not happening. Marty will never get back to 1985!

How does A.I. make sweaters? On the Interknit.

New electrical generation and transmission often takes 4-10 years to come online. If Nvidia® is making their chips, the place they’ll have to go is a warehouse center on a pallet, not a data center, since current projections show a 30GW-60GW gap already in 2027.

111 GW in 3 years? This is not happening.

And it’s even worse. Elon’s big data center running old Nvidia® chips, and not even the new extra-spicey chips? He’s renting that one out. Yeah, SpaceX® is an A.I. company, but apparently, they don’t need the whole place. But we need to spend nearly a trillion this year to make places like the one Elon is renting out.

Hmm.

If that was it, we could all just sit back with popcorn and watch the whole thing catch fire. But that’s not it. By shoving over a trillion dollars in spend and probably $2 trillion more in orders for concrete and steel and Transformers© and Autobots® the economy has been horribly distorted.

Don’t worry, they say. This is all funded from private credit and equity. So what if Nvidia© drops back into the tres comma club after being in the quatro comma club. What’s a few trillion between friends? A.I. is soaking up all the money in the country.

But wait! Private credit is being bundled up into batches and sold into pension plans. It’s investment grade, just like those CDO mortgages. Remember those and how well all that went back in 2008? This is innovation. Besides, 401ks already all in. A.I. and tech stocks are already more than half of the S&P 500, probably 20% more than back before Dotcom.

One of my commenters said my posts were medium-rare. Well, what he actually said was “They’re not well done.”

A.I.? Your economy is soaking in it! The aptly named Larry Fink noted that the funding for A.I. is coming from “your savings accounts and pension accounts.” He’s betting $10 trillion in the next decade will be spent on this.

But, as amazing as that sounds, that’s not everything. A.I. is fluffing up the profits of nearly every other business in the country. My laptop is more expensive because of this. Electricity is more expensive because of this. Natural gas is more expensive because of this. Gasoline? Yup. Those jobsite gennies don’t run on SpaceX® stock.

A.I. has infected everything. Hey, don’t have a frown. OpenAI® lost only $38.5 billion in 2025. That’s the sort of performance I want to bet the entire economy on. Oh, and OpenAI© just barely missed their ad revenue target by 90%.

It’s got a comfy feeling. Especially when a six-year-old Chinese kid shows up with a free and open-weight A.I. model that’s nearly as good as the top-line A.I. models. It’s called Kimi K3 and I could run it in my house with a few Apple® machines.

Comfy, right?

I mean, it’s comfy if you’re Sam Altman who has a bunker to protect him from people with missing pensions and plentiful pitchforks. I mean, a 3-d printer can print a pitchfork, right?

“You can say hate, can’t you? I thought you could.”

We got off “easy” from the Dotcom bubble because it was based on equity. Pets.com® just imploded, and people lost a few bucks in the market. Painful, but it didn’t really strike at the core of the economy, and it left us with a batch of fiber optics that we’re still using and still (at least in some places) haven’t maxed out. The Dotcom Bubble was going out on a weekend bender when your wallet was flush with cash and being broke on Monday morning.

This is more like the Great Recession, which also used housing prices to creep into every activity, but also was focused on using debt to fuel the party. This was going out on a weekend bender and waking up to find out that you’d maxed out your credit cards on Charity. Not UNICEF®, no, the stripper, Charity. And that she might be pregnant.

And that she gave you herpes.

Unpleasant, but when we could just borrow again, we could get through the 2010s, plus I think they’ve got some sort of pill that controls outbreaks.

Now? It’s probably both of those put together. And while the data centers might be useful to train up yet a newer A.I. with more parameters, the data centers won’t be needed to run the models. I can run a top-of-the-line A.I. in the basement of my house for a modest investment and a few kW.

With all the race swapping Disney® is doing now, the lead character from Beauty and the Beast will now be a Mexican, Taco Belle.

Not GW, kW. That I could have running in a week, for about $40,000, all while Larry Ellison is sacrificing virgins during the Blood Moon© to help keep the critical path of the construction schedule from slipping. You can bet that if this is real, they’ll make it illegal.

It’s going to break. When?

2026? 2027?

How bad?

Best case, the economy contracts 1% or 2.5%.
Base case, the economy contracts 2.5% to 5%.
Run and hide case, the economy contracts 5% to 8% to . . . ?

I asked my doctor why he uses the little rubber hammer. “Oh, I get a kick out of it.”

Who loses, besides us?

Well, Jensen Huang might have to start drinking Boone’s Farm© instead of champers. Larry Fink might have to skip a dip in his money bath. Elon Musk might have to take his 47 kids to Denny’s©. I kid. Nothing will change for these guys.

And that long, straight, flat road I was talking about? It might just turn into a roller coaster once the foot comes off the accelerator. Here’s hoping that you’re tall enough for this ride, because Charity is probably going to want her back payments.

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 250th 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 20th 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?

  1. Those who have an opposing ideology are considered evil.
  2. People actively avoid being near those of opposing ideology.  Might move from communities or states just because of ideology.
  3. Common violence. Organized violence is occurring monthly.
  4. Common violence that is generally deemed by governmental authorities as justified based on ideology.
  5. Opposing sides develop governing/war structures. Just in case.
  6. 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?