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.

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

If You Can’t Spot The Sucker At The Table . . . .

“No, this sucker’s electrical, but I need a nuclear reaction to generate the 1.21 gigawatts of electricity I need.” – Back to the Future Ouch, I guess eclipse jokes can be dark. I’ve heard the phrase “If you can’t spot the sucker in the first half hour at the table, then you are the sucker,” … Continue reading “If You Can’t Spot The Sucker At The Table . . . .”

“No, this sucker’s electrical, but I need a nuclear reaction to generate the 1.21 gigawatts of electricity I need.” – Back to the Future

Ouch, I guess eclipse jokes can be dark.

I’ve heard the phrase “If you can’t spot the sucker in the first half hour at the table, then you are the sucker,” many times in my life.

Mostly, after I’ve realized I was the sucker.

Recently, I’ve been watching the markets the same way I watch a late-night poker game at a kitchen table. The cards are the same for everyone. The rules are printed right there. And yet, somehow, the same faces keep walking away with the chips.

Let’s start with three recent examples that should make people who actually save, invest, and try to play by the rules say . . . huh.

Is 2,000 pounds of Korean money a Won ton?

Let’s start with South Korea’s leveraged massacre, 2026 edition.

Normal guys in South Korea were betting on the right side of the trade. I mean, they were on the right side of the trade before the South Korean market began hemorrhaging cash this week as China starts to look pretty strong in the chip-making business. But before that massacre, retail traders (they call them “ants”) piled into brand-new single-stock 2x leveraged ETFs tied to Samsung™ and other Korean tech firms who were benefiting from the A.I. bubble.

The bet is simple. If Samsung© goes up 10%, your ETF goes up 20%. Get on the right side of the trade, and double the profits that all of the suckers are making.

By law, the products rebalance every single day by a public formula: sell more when the stock drops, buy more when it rises. Sophisticated trading desks know the formula, know the size of the flows, and know when they hit: near the market close. These firms essentially buy the stock beforehand, and scalp the 2x part of the trade.

But if the stock declines, the automated selling amplifies the decline. Hundreds of thousands of accounts of small guys saw their accounts evaporate. The “little guys” who thought they were investors discovered they were only “market liquidity” that got liquidated. I imagine it’s even worse this week as their market is imploding.

I wonder after the first tsunami hit Japan if they had lots of different names for it, you know, a title wave.

Let’s move next to the microsecond arms race.

Investment firms pay serious money to put their servers inside the same data center as the exchange matching engines. Why? The firms can see slower orders coming, cancel their quotes, reprice, or step in front. They legally front-run purchases, getting a bit of the action, like me getting in the cheeseburger line in front of Rosie O’Donnell, buying all the burgers, and then making her pay twice the price to me because you know she wants one.

But instead of burgers, my pension and my 401k are the funding source and the burgers. Or they buy the burgers. I forget. Just thinking about Rosie eating is unsettling.

I once installed a trampoline on Aerosmith’s tour bus. Now everyone wants to jump on the bandwagon.

Next? A.I. bets: Pensions and 401ks are literally soaking in it.

Nobody actually requires pension funds to buy speculative A.I. bets. But when the benchmark rate that the fund is trying to replicate is the S&P 500©, over half of that index is now A.I. Private credit and datacenter infrastructure funds are sold as “diversifiers.” The Aptly Named Larry Fink has been open about it and I’ve written about him before: a big chunk of the A.I. build-out is coming from “your savings accounts and pension accounts.”

If, or more likely when, the power plants never get built or the market discovers that no one really wants to pay a lot for A.I., the little guys eat it. We’ve seen this movie with mortgage-backed securities in 2008, but after 20 years, who isn’t up for a sequel? And don’t mention Star Wars®.

Those three are current “legal” scams.

There are larger, longer-running and still legal versions that hit responsible investors. Here are a few.

Steal a man’s wallet and he’ll be broke for a day. Teach him to play drums and he’ll be broke for the rest of his life.

Payment for order flow.
My “commission-free” IRA firm sells my orders to the big market makers.

They see the flow first. Every time I click “buy,” someone is being paid to take the other side with better data than I will ever have.

Index and ETF reconstitution.
The rules for what goes into the big indexes are public. Active money buys the adds and sells the deletes before the passive funds are forced to do it on the effective date. If you own index funds (and most of us do, in 401ks and IRAs), you are systematically buying high and selling low on the reconstitution days. The front-runners collect the spread.

Private-equity leveraged buyouts.
A PE firm buys a solvent company, and loads it with debt. This is what happened to Toys’r’Us©. And Sears™. And RadioShack©. And TWA®.

And I could keep going.

They then extract fees and dividends, cut costs, and exit leaving like a vampire leaves a dried husk before the Sun comes up. The workers get fired. The store sits empty, as what was once a business becomes a blight. If my pension was invested in those funds, I’m also funding the vampire extraction while the downside lands on the real economy.

Glass coffins? Schrödinger was not a fan.

Institutional money vacuuming up single-family homes.
Large capital pools decided residential real estate was an asset class. They bought the inventory that used to go to . . . families. Prices and rents rise. I already owned, so I was insulated. But the kids?

Too-big-to-fail.
When the “systemically important” institutions get into trouble, they will be bailed out. I’m betting that OpenAI™ is working to get as big as it can as soon as it can so it can sink its tentacles into the economy deep enough that if it fails it brings the whole house down and then they will have to bail Sam Altman out so he can keep his mansions, cars, and bunker. Hey, I guess it’s just a business model.

Even though he won, he could tell there was no future in it.

I guess I can stop pretending the game is neutral, because I could go on and on and on with more examples. To the big players, the Elons, Altmans, the Finks, we’re just liquidity and our retirement account is being used as their stack of chips.

The cards are the same.

The edge is not.

Don’t be the sucker.

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.

 

SpaceX®: The Final Frontier?

“Time to musk up.” – Anchorman:  The Legend of Ron Burgundy

You know who gives kids a bad name?  Elon Musk.

Elon Musk has just launched his SpaceX® IPO at a price of $135.  If you were in on the initial purchase, you’ve already printed money, as the current price is now at $216 as I write this.  This is bitcoin level price increase.  And, it shows Elon Musk’s meme effect.  I expect soon enough that he’ll announce he’s moved his headquarters to an orbital space bombardment platform.

For tax reasons, you know.

As much as the GloboLeftists like to make fun of Elon for buying Twitter© and turning it into X© and destroying 30% of its market value, Musk has certainly had the better of that conversation since he’s now a trillionaire and his having an amplified voice on X© certainly hasn’t hurt.

Regardless:  quatro commas.

That’s a lot of money.

Step 2:  Profit.  Step 1:  Time Machine.

As I write this, SpaceX© has a market capitalization of $2.8 trillion dollars.  That’s more than Amazon©.  It’s more than Saudi Aramco®.  There are only four stocks bigger than SpaceX©: Apple®, Nvidia™, Google©, and Microsoft© and I think it passed Microsoft® this afternoon.  And, in the scheme of things, it’s pretty close to being the biggest company.

Ever.

To put this into perspective, SpaceX© by itself is now worth as much money as all the aerospace companies and defense companies in the world.  Combined.

Part of this is due to the relatively small number of SpaceX™ shares available.  SpaceX© sold 5% of itself, getting $85 billion to pay off debt and buy Elon something nice.  If Elon had dumped all of the stock, I’m betting it wouldn’t have near that valuation because someone would have had to buy the other $2.7 trillion worth of shares, and it’s not like Jeff Bezos has that in his couch cushions.

To be fair, no one has that in their couch cushions except the federal government, and they’re too busy giving it to Democrat agitators to bring in foreigners and agitate for communism.  You know, things that benefit society.

The North Korean gymnast didn’t win in the Olympics©, but her execution was flawless.

That small float has led to the stock, in my opinion, being a meme.  It’s the Dogecoin© of equities.  It has enormous value because Elon is associated with it.  It also, unlike the usual IPOs accessible only to folks with a half million bucks or so, is accessible to anyone that can fog a mirror.  Beyond that, it’s also going to be required to be picked up by several stock indices soon.  This will require things like pension funds and mutual funds to buy it.

What is “it”, though?  What makes up SpaceX™?

The smallest piece is actually what people think of:  the rockets.  Even though Musk has the single largest, most active, and most efficient space program on the planet, that’s not a huge market.  I mean, it’s more money than I have, but Elon’s biggest customer is . . . Elon.

Starlink© is the only profitable piece of this project.  My eldest, The Boy, has Starlink©.  He likes it.  It’s good, if you’re not close to an actual wire.  The problem for other people wanting to make a space-based Internet is that Elon has the big lead here, and there’s probably only room for one company.

Jeff Bezos was going to try to make an orbital communications network, but his rockets don’t work, so he has no way to send stuff to space cheaply.  Cheaply?  Speaking of Jeff’s wife . . .

I digress.

I knew Bezos’ rocket program schedule was in trouble when he hired Elton John.  I think it’s gonna be a long, long time.

So, what else is SpaceX©?  It’s the X™ formerly known as Twitter©.  Which seems an odd pairing with the other two, but not as strange as the last piece:  xAI®.

In summary, SpaceX© is:

Rockets:  Total market?  $370 billion.  Not sure if that includes the Iranian market.  As it is, he’s showing a $662 million loss in the rocket segment in 1Q26, but that includes blowing up all of those Starship™ tests.  If NASA were doing the same thing, it would have already cost a trillion dollars and they wouldn’t have launched the first one yet.

If some of SpaceX® junk destroys a city in north Texas, would the headline be “Debris does Dallas”? (as-found)

Space connections:  Total market?  $1.6 trillion.  Elon can probably earn most of this and it’s already earning him over a billion dollars a year.  As the Internet is primarily made of porn and cat videos, made $1.1 billion last quarter selling virtual pussy . . . cats.

The old Twitter™:  No known profit.  By transferring the old Twitter® to SpaceX™ that does make Elon the X® owner.

AI:  $26.5 trillion.  Right now, he’s losing only $2.5 billion a quarter at this, which makes him a rank amateur when compared with OpenAI®.  OpenAI© lost $38.5 billion last year, so Musk needs to lose a lot more money this year to catch up.

One of these is not like the other.  And I’d argue that one of these isn’t remotely reasonable.

You can do your own math.  But the big thing to me is this is quite like Elon Musk’s junk drawer that has a flashlight and an old 9-volt battery and some slightly-dull colored pencils and an old AC adaptor that I’ve forgotten exactly what it adapted.  Starlink™ and the rockets make sense together.  But xAI®?  Was that just thrown in there to puff up the price?

It was.  And maybe sometime in the future he’ll toss Tesla© and Grimes and some old socks in there, too.

See!  I didn’t make this up.  It takes accountants to make things up. (as-found)

The big connection there would be that, I guess, that Elon can make orbital data centers that don’t require power generation on Earth or cooling water.  And Elon’s only going to build (checks notes) a million of them.  That’s pretty ambitious since he’s only tossed up 10,000 Starlink© satellites at about $2 million each.  If he got the same price (doubtful) it would still cost $2 trillion.  Probably closer to $20 trillion.

Which is . . . not going to happen.  In fact, I think the SpaceX™ IPO will be looked back as the point where the A.I. bubble began to deflate.  But I’ve been wrong before:  I missed some bits and wouldn’t have bet that it would have gone up as fast as it has.

Remember like they said in Apollo 13, failure is always an option. (as-found)

What is the end game, then?

Well, Elon’s end game is to make Elon insanely rich, for one.  To be fair, he’s already gotten insanely rich through selling electric cars and built a space program that exceeds the capacity of every other nation on Earth, and has fathered something like 70 little Musks which might be part of his own diversification strategy:  a genetic junk-drawer, as it were.

What’s the long game?  Maybe an orbital space bombardment platform.  Or a government on Mars peopled entirely by those offspring.

Well, at least now he has space for rent.

This is not advice or a solicitation to buy or sell or rent or trade or loan or barter or whatever other adjective.  It’s a humor post.  I actually hope Elon does send up a million rockets, but I’m thinking it’s more likely he’ll have a million kids, which, with enough investor money is much more possible but I wouldn’t want go on a long car trip with a million kids because I’d be tempted to sell or rent or trade or loan or barter the lowest performing 10% of the children into the PEZ® mines.  Also, I think having a million kids would make me sore.  Which also might be Elon’s plan.  Regardless, this isn’t investment, dating, or reproductive advice.

One Hour. One Dead 80-Year Math Problem. Welcome to the End of College As We Know It.

“Am I afraid of losing command to a computer?  Daystrom was right.  I can do a lot of other things.  Am I afraid of losing the prestige and the power that goes with being a starship captain?  Is that why I’m fighting it? Am I that petty?” – Star Trek

Plot idea:  Gilligan ate the last box of cookies on the island.  Ginger snaps.

My first exposure to the concept of thinking machines was almost certainly Star Trek.  My first exposure to talking monkeys was Planet of the Apes, but that’s a story for another day.

On Star Trek, the computers were always one bad logical paradox away from exploding.  Yes.  Literally exploding.

Were they sentient?  Sure.  Helpful?  Usually.

But give them an infinite loop and boom, here comes the smoke, and sparks.  The classic was something like Kirk saying, “Computer, listen to me.  I have infinite power, so can I make a burger that is too big for me to eat?”

The Star Trek A.I. that comes to mind right now is M-5 from the episode The Ultimate Computer.  In this episode, Kirk and his crew get replaced by this fancy new computer that runs the Enterprise™ like a dream until M-5 just decides to start killing people.  The machine went full neurotic.  And turning it off?  It took its creator have a full meltdown, since they don’t make Adderall for computers.

I spilled Adderall in my F-150, and turned it into a Ford Focus®.

I bring this up because an AI just solved an unsolved Erdős Problem®.  What’s an Erdős Problem® other than an excuse to us a Hungarian letter?  Well, it’s part of a series of math problems cooked up by a dead vagabond mathematician named Paul Erdős.  The guy wandered the world like a couch surfing hobo with a PhD.

This particular problem had stumped humans for eighty years.  Then OpenAI’s model rolled up and disproved the whole thing with a counterexample so elegant it made a human mathematician sit up and say, “Huh. That’s clever.”

Not “good for a computer.”

Just . . . clever.  People hadn’t solved this problem.  But A.I. did in about an hour.

Anyone who still says “AI is nothing more than a pocket calculator” is wrong.  Dead wrong.  This isn’t crunching numbers faster.  This is synthesizing ideas and creating original solutions to problems that have vexed mathematicians everywhere.  Oh, sure, it’s easy to beat them up and take their money to buy yourself something you like because they have poor upper body strength, but they’re good in math.

Maybe Kim wouldn’t be so chubby if he had to run for office.

Just like Kirk struggled with what the hell he was supposed to do if he wasn’t driving a starship the thought that has to be entering the minds of mathematicians everywhere is, “what’s the point if a computer can do what I do?”  Though, to be fair, Captain Kirk would later become a police officer in Southern California and a lawyer in Boston, so he landed on his feet after they no longer needed him in Star Fleet.  But he had decent upper body strength.

And that leads straight to the question of college.

College is getting pozzed by GloboLeftists to the point that math and engineering professors are publicly demanding a return to acceptance based on test scores.  They’re tired of getting stunning and brave students who can’t noodle their way through middle-school math and, well, can’t read either.  These are the same professors who used to pretend everything was fine because they were fighting for tenure.

What’s the difference between a tenured professor and Hamas?  You can negotiate with Hamas.  (meme as found).

They’re saying the quiet part out loud because their departments are filling up with kids who couldn’t pass a seventh-grade fractions test but have opinions on everything.  However, now we have A.I. that can solve unsolved mathematical problems.  And college students that can’t read or do math.

As I’ve written before, participation in college took off after Griggs v. Duke Power.  That 1971 Supreme Court decision basically told companies they couldn’t use IQ tests for hiring anymore.

Why?

Because black people didn’t score as high on average.  So how could companies legally discriminate, sorry, select, for the bright employees they actually needed to, you know, keep the power on?  Simple:  require a college degree. A degree became the new IQ test, just with more debt and fewer guarantees.

Now college is facing the twin problems of not being able to bring in the smart students or even requiring kids to read, while AI is everywhere.

What is college even for anymore?  What’s the purpose?

My experience with college is that it provided a chance for me to change.  The teachers always said, “next year it would be harder,” and it finally hit for me my second semester of my freshman year. Calc 2, Physics 2, and Chem 2 (the thermodynamics part) all at once.

I will say that when I took thermo I didn’t feel so hot.

I had to bear down and learn to study.  It changed me for the better.  The concepts I learned there were truly fundamental. They gave me a leg up on my career because they changed the way I thought and challenged me in ways that mattered.

But if college has turned into writing prompts (or, since they can’t write, speaking prompts) into an AI and turning in the A.I.’s product, what’s the point?  I know, people said the same thing about calculators dumbing down schools.  I’m sure they said the same thing about slide rules.  But I know what multiplication is and how it works, and could even do long division by hand if I had to.

A.I. is different, fundamentally, than a calculator.  A.I. can’t think in the human sense, but it certainly can synthesize and create original solutions to problems that have vexed the physically weakest people on campus.

So why college?

For most people, college shouldn’t exist.  Alternate paths should be wide open for entrepreneurship, or welding, or HVAC, or any of the dozen trades that actually keep the lights on and the toilets flushing.  People wanting a sociology, psychology, or anthropology degree should be limited to about one-twentieth the number of sociology, psychology, or anthropology professors currently working in the United States, because teaching those subjects is about all those degrees are worth in the real world.  Oops, forgot!  They could also work in the fresh retail coffee production and distribution industry.

I’ll go out on a limb and say college should be limited to those professions where people die if you’re wrong, or where the work is useful in making cool weapons, which means people die if they’re right:  physics, chemistry, engineering, medicine, the hard stuff.

I see why people get addicted to glue.  They just get attached to it.

My plan would turn subjects like Women’s Studies into a hobby.  Which is what they already are, but at least under my plan you don’t have to play $48,000 a year.  Add in allowing employers to use IQ tests again, and then you don’t have to worry about hiring idiots.  They might be evil, but at least they won’t be idiots.

Look, the M-5 computer on the Enterprise® eventually got shut down because it went off the rails.  And real A.I. isn’t going to explode in a shower of sparks, but it’s already doing things humans couldn’t.

College, meanwhile, is busy proving it can’t even teach basic literacy to the people it lets in.  The old model is broken.  Even my old professor, Dr. Zaius©, agrees.

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

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

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

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

But are we close?

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

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

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

The world without Western Civilization. (meme as found)

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

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

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

Wait, what?

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

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

Why?

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

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

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

Yikes!

But let’s say it doesn’t work.

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

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

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

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

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

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

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

(as found)

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

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

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

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

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

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

Yup, been there, done that.

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

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

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

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

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

Black Swans: Interconnected, Nonlinear, and Ready to Ruin Your Day

“My name’s Swan.” – The Warriors

When getting coffee in Denmark they don’t allow sugar.  They don’t want it to be sweetish.

I’ve read enough history to know that the world doesn’t change in smooth straight lines.  When change hits, it lurches.  One day everything seems stable and the peasants are happily tilling the fields, and the next they’re communists busy storming the Bastille.

That’s the Black Swan.

Nassim Nicholas Taleb laid the definition out in his book The Black Swan.  A real Black Swan isn’t just a surprise.  It has three traits.

First, it’s an outlier, so far outside what most expected that the past gives zero warning.
Second, it carries an extreme impact, the kind that reshapes economies, governments, or entire ways of life.
Third, after it hits, we humans can’t help ourselves: we retroactively “explain” it like it was obvious all along.

“Of course, a fight about ethics in video game journalism would lead to the Strait of Hormuz being closed.”

A restaurant owner offered me free calamari for a good Internet review.  It was squid pro quo.

We’ve had plenty of Black Swans, but I’ll run through some of the greatest hits reel to show the pattern.

1914.
The assassination of Archduke Franz Ferdinand in Sarajevo looked like a local Balkan thing. A couple of pistol shots, right? By the end of summer, however, the Guns of August had turned Europe into a meat grinder.  Twenty million ended up dead due to the war.  Empires dismantled.  The map of Europe was redrawn and communism popped up yet again, this time in war-devastated Russia, being just another proof of the Russian national motto:  “And then it got worse”.

1929.
Stock prices had climbed a mountain of margin debt. Thankfully we’ve learned our lesson and now have only twice the margin debt piled into the market here in 2026. But back then?  One bad week in October and the market collapsed like Will Smith’s career.  The Great Depression followed.

1992.
The Soviet Union looked like it would last forever: nukes, tanks, gulags, that guy that Rocky had to box, the works. Then, overnight, it imploded.  Gorbachev’s reforms, economic rot, and a failed coup turned the world’s other superpower into fifteen broke republics.  The Cold War ended not with a bang but with a shrug and empty shelves in Moscow.  This was a positive Black Swan.  Unless you were Gorby.

What’s the difference between a ruble and a dollar?  Roughly a dollar.

2000.
The Dot-Com Bubble in 2000 was next.  Internet stocks were going to change everything. Pets.com.  Webvan.  Internet pizza by the slice, but you had to go pick it up.  Stock valuations that made tulip mania look rational.  When the music stopped, trillions evaporated.  NASDAQ dropped 78%.  One of my friends sold a company for $50 million.  In Alta-Vista® stock.  That he couldn’t sell for two years.

2001.
September 11. Nineteen illiterate savages with box cutters rewrote global security, launched two endless wars, and shifted trillions in spending.  Air travel changed forever.  Civil liberties got waterboarded.  They made The Mrs. take off her sandals going through security, and then ran a metal detector wand over her bare feet after the shoe bomber.

2008.
The Great Recession came from a housing market no one thought could fail.  The cause?  Subprime mortgages, collateralized debt obligations, and banks playing Jenga™ with other people’s money.  Lehman Brothers folded, credit froze, and the government printed enough money to wallpaper the Moon.

“Can we fix it?”  Bob’s wife’s attorney, “Not this time, Bob.  Just sign the papers.”

2020.
COVID-19, a virus from a wet market (or a lab, pick your conspiracy) shut down the planet.  Just-in-time supply chains snapped like dry twigs.  Governments printed trillions while telling you to stay home and order DoorDash™ because no one working for DoorDash© could spread the disease.  Inflation roared back like a thing roaring back.

Every single one of these events looked impossible right up until it wasn’t.  And every single one was explained afterward like the smart people had been warning us that these events were going to happen all along.

We are living in the most interconnected, nonlinear system humanity has ever built.  The whole mess is dependent upon global supply chains, instant financial markets, AI-driven trading, just-in-time inventory, and central banks playing God with interest rates.  A hiccup in one node doesn’t stay local anymore.

It cascades.

Nonlinear means small inputs can produce gigantic, unpredictable outputs, like a butterfly flapping its wings in Beijing, causing Nic Cage to say “no” when offered a part in a movie.

A Tesla® driver crashed into a semi while watching a Nic Cage movie.  Guess he should have just watched the trailer.

We are in a world where I think more Black Swans are imminent, because there are groups that are actively shaking the foundations of the way the world words.

Like China.  China’s economic ascendency isn’t some slow rise.  It’s unrestricted economic warfare, exactly like the Chinese generals described in their book.  They’ve gutted our manufacturing base while we cheered “free trade.”  They control rare earths, solar panels, pharmaceuticals, and now a big chunk of silver production and refining.  One policy tweak in Beijing and entire U.S. industries seize up.

That’s not theory.  It’s happening.

At the same time, Trump is busy recasting the entire post-World War II alliance structure.  In his defense, it was going to happen anyway, so might as well try to recast it in a way that works for the United States.  The old Cold War playbook:  NATO, endless commitments, sending our treasure overseas while our own borders leak is getting rewritten.

New deals based on new priorities, while old partners are suddenly on notice. When you yank the scaffolding out from under a 75-year-old global order, things get wobbly.

Add in the debt bomb.

Interest payments alone are bigger than defense budgets used to be.  Bond vigilantes haven’t shown up yet, but they’re circling.  One bad auction, one loss of faith, and the bond market revolts.

Rates spike.  Stocks crater.  Pensions and 401(k)s take a hit that makes 2008 look like a warm-up.

Then there’s AI and automation.

We’re likely on the edge of having AGI (artificial general intelligence) that could rewrite every job category.  Or we could get an AI stock crash first: valuations are moonshot, hype is everywhere, and conflicting AI agents trading against each other at light speed could trigger a flash crash that makes 1987 look quaint.  Massive unemployment follows as advanced automation eats white-collar work the way robots ate factory jobs.

What happens when millions of college-educated professionals suddenly have nowhere to go?

Geopolitical Black Swans are lining up too.

Civil unrest in the UK that looks more like low-grade civil war every year:  mass migration, cultural collapse, and the elites are disconnected.  Could Saudi Arabia fracture internally while oil markets hang in the balance?  What about a Cascadia subduction zone earthquake that could drop bridges, snap pipelines, and isolate the Pacific Northwest for weeks?

Any one of these hits an already-fragile, hyper-connected world and the dominoes don’t stop falling.

Any pizza can be a personal pizza.

The point is to recognize the pattern:  complexity plus nonlinearity plus rapid systemic change equals Black Swan habitat.  We’ve never had more of all three at once.

So what to do?

Stop pretending the experts have it under control.  They clearly don’t.

The good news is resilience looks the same for many cases.  Skills beat degrees when the power goes out.  A garden and a stocked pantry beats a grocery store when shelves empty.  Cash, metals, and productive land beat IOUs from a government that prints money like it’s confetti.

The Black Swan doesn’t care about fear, but it does respect preparation.

The next one is coming.  It always does.

And if you’re off to storm the Bastille, well, remember to wear clean underwear.  I’d usually tell a more complicated joke at the end, but the best underwear jokes are brief.

The Poor Get Hit First

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

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

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

Why?

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

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

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

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

Absolutely.

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

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

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

I fully expect this pattern to spread.

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

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

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

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

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

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

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

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

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

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

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

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

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

Is angry vodka mean-spirited?

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

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

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

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

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

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

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

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

“Season’s greetings.”