The Economics of the Surveillance State

“That was a Beria operation in Stalin’s time.  It was deactivated twenty years ago.” – The Living Daylights

How did KGB agents commit suicide?  Two shots to the back of the head.  (all photo content as-found)

Remember Lavrentiy Beria’s cheerful advice:  “Show me the man, and I will find the crime”?  Back in the Soviet Union they had so many laws on the books that everybody broke at least one before lunch, I mean, when lunch was available.  And if they didn’t, they could make up something.  Beria just needed enough spies and informants to spot the right violation.

Beria would have loved modern America.  We’ve upgraded his whole operation with better cameras, faster computers, and added actual profit margins.

Let’s start with Flock™ cameras.

Flock Safety© cameras now line roads from coast to coast.  More than 100,000 of the little snitches sit on poles in ditches scanning license plates 24/7 and however many metric hours in a metric day and metric days in a metric week.  The cameras rolled out one quiet law enforcement contract at a time until the whole country is now blanketed.

Not everyone who comes into your life is your friend.  Some are just surveillance cameras. (btw, she was innocent, but the police didn’t apologize)

Maps of the cameras exist online, but those rely on humans, and it shows only three of the eight within five miles of my house in Modern Mayberry.  I could plot an avoidance route if I had nothing better to do than play spy versus spy on my commute, or build a detector like Benn Jordan did.

Most of us have jobs and families instead.  But, hey, we’ve funded a system so that every time you get on the road, you’re creating a record that will last as long as they have storage.  And cops can now use this to stalk their ex-wives, so it’s a double win, right?

How did the farmer stalk his ex?  He tractor.

Next up?

Ring™ doorbells joined the neighborhood watch program without asking their “owner’s” permission.  When several co-eds were murdered in Idaho a couple of years ago, investigators pulled Ring© footage to track a suspect’s car.  A subpoena moves quicker than a polite request and never waits for the doorbell to be answered, so they got all the data that they needed to catch the guy.  I’m okay with catching murderers, but how many people will be caught in fishing dragnets for being in the wrong place at the wrong time?

Where exactly are you going at 2 a.m., citizen?

Laptops aren’t safe, either.

A hacker got grabbed in Finland on his way out of the country.  Prosecutors used the connection with Microsoft’s© handy Global Device Identifier™ to identify him.  One persistent number tied his computer to all the mischief.  Microsoft® handed over the records after the usual court paperwork and a feeble, “oh, stop . . . customer privacy . . . .”  My operating system apparently keeps better tabs on me than my own mother, but at least Ma Wilder has the excuse of being dead.

I wonder if my FBI agent likes the jokes I make?

Then there is Windows Recall© on the fancy new Copilot™ machines.  It snaps pictures of your screen every few seconds while you work and builds a searchable scrapbook of everything you looked at.  Local storage only

They promise.  Pinky swear, even.

Still feels like my laptop decided to start a scrapbooking hobby without telling me first.

Besides, my ISP already knows every site you visit and how long you lingered.  Edward Snowden spilled the beans years ago on the big programs that pulled data straight from the servers of Microsoft™, Google®, Apple©, Facebook™ and the Rest®.  Fiber-optic taps caught traffic in bulk, Then three-letter outfits and tech companies worked hand in glove.

The result is giant databases full of regular people doing regular things.  But don’t worry!  If you’ve been good, you’re fine.  And if you’re Hillary Clinton or Jeff Epstein, all the data will be lost.

Big Tech loves this data game because it prints money for them.  They track my habits down to the weirdest details (really, kittens eating salami?) and sell the profiles to insurers, advertisers, and anyone else with a checkbook.

My patterns become their product.  They turn my life into a spreadsheet and then mark it up like a used-car dealer who knows you really need that transmission fixed today.

Speaking of cars, they’re getting chatty, too.

Modern ones log every trip, every hard brake, every late-night drive.  Some already phone home to the manufacturer and won’t work unless the software license is up to date.  Insurance companies will pay good money for a direct feed on how I actually drive instead of guessing from your age and ZIP code.

Soon enough, the car might call the cops if it thinks I had one too many.  My pickup turns into the world’s most expensive designated snitch.

Hopefully, during the 4th of July holiday you didn’t get distracted and miss the big picture:  The British blew a 13 colony lead.

Ninety-nine percent of us carry cell phones that never stop reporting.  Every search, every video, every song gets logged.  Cops have started treating a phone left at home like suspicious behavior (I’m not making this up).  The little rectangle in your pocket is the most reliable witness I never hired.

Big companies with this much reach do have a kryptonite®:  governments.  They do exactly what the government asks.  They bent over backwards to limit talk about COVID and elections under the last administration.  Books and posts that wandered off the approved script vanished from platforms:  I know, I made a COVID joke on a podcast and it was sent to podcast jail.

The same tools will work just as well for whoever sits in the big chair next.  They already proved they can move fast when someone important asks nicely.

Harvey Silverglate spelled this out in his book Three Felonies a Day.  Federal law has grown so broad and fuzzy that a decent prosecutor can usually find something to charge anyone with.  Normal life now sits inside a minefield of possible violations.  Add constant surveillance and the minefield gets floodlights, motion sensors, and a searchable menu.

Stalin put a ? after the name of every traitor:  they question Marx.

The Code of Federal Regulations stretches to roughly 190,000 pages or almost the number of words in a GloboLeftist meme. Rules multiply every year.  Nobody can read the whole thing, and if they did, another 10,000 pages would have been added in the meantime.  When surveillance supplies the evidence, the vague laws and regulations become precision weapons.  Who cares if you’re guilty?  Just being charged is punishment for the innocent.  The process is the point.

Government and Big Tech® now hold detailed maps of where you drive, what you read, who you talk to, and how you spend your time.  Also notice that they don’t bother to use these to catch murderers in Chicago or gang criminals.  No, they’re encouraging that violence.

Beria ran on fear and informants.  The updated model runs on sensors, algorithms, and sweet quarterly earnings.  It costs less to operate and reaches farther and hardly ever complains about running out of vodka.  The economics make perfect sense for the people building it, because collecting the data is cheap once the hardware is installed.

The Surveillance State runs on convenience for the watchers and profit for the builders. Beria would have been jealous of the efficiency and probably asked for stock options.

Don’t you love it when totalitarian communism and capitalism overlap?

Birthright Citizenship, The Economics Of Infinity, And The Inevitability Of War

“I want immunity from prosecution, asylum in the U.S., and citizenship.” – xXx

All media “as-found”

June 30, 2026, just shy of the 250th Anniversary of the signing of the Declaration of Independence, will live in infamy.

All five women of the Supreme Court voted for birthright citizenship on June 30. This includes the Chief Justice, John Roberts, who I assume identifies as a woman on Tuesdays and alternate weekends.

The five voted that popping a kid out anywhere that the United States has as a state or territory makes the invader kid a citizen. It’s called “birthright citizenship”, and wasn’t really a thing for the first 60 or so years, at least, of the 14th Amendment. The 14th was really about removing doubts about the citizenship status of freed black slaves and their children.

But now, if you’re Consuela from Caracas giving birth in Carlsbad, California, your cholo child is a citizen. If you’re Ning Naun from Nanking, giving birth in Nashua, New Hampshire, your nursling nipper is now a national. That’s the law of the land, even if you are here illegally.

This effectively removes the border.

If an illegal steps one foot into Arizona and squats a tot, the squatted tot is just as American as Neil Armstrong. If a woman on a legal visa drops a moppet, even if she overstays? It’s an American citizen, just as American as Mark Twain.

The American people, therefore, have no say in who becomes an American.

It’s like someone breaks into my house and pops a preemie there and now that preschooler is now my child and I have to treat it like my child and give it exactly the same (or better!) treatment as my other kids even though it’s much stupider, much needier, and much more violent.

I guess I would be fine with that if I hated my own kids.

But I don’t. I love my kids. And, I love my people.

I’ve gone over at length in previous posts how immigrants, both legal and illegal, are a net negative on the country as a whole economically. It’s not really arguable because the facts are so stark.

Why they’ve been allowed is simple.

For the GloboLeftElite, they represent a new voter bloc that’s skewed to vote against nationalism and for communism.

For the Institutional Elite, they represent more demand for their services and more job for their gay friends.

For the “Idaho Rancher” they represent a way to get cheap labor and avoid paying the prices it would take for Americans to do the work, and the “Idaho Rancher” doesn’t have to pay for the services like medical and child care and prisons.

For the “Wall Street Firm” it’s a way to get cheap labor that will never say no, and will never report you for doing something shady.

These groups are all traitors.

You could say “enlightened economic self-interest” but you’d be wrong. They are the ticks that view the United States as an economic zone to be sucked into an empty skin sack for profits or as a place to build political power for ideas that are inimical to our way of life.

I’m not an extremist.

I’m not opposed 100% to immigration. I think we should consider starting it again in 2326 after a 200-year moratorium. I mean, we should consider it then. Maybe.

The problem with this ruling is two-fold. I’ll start with the economic. There are between 400 million and 700 million people that would move to the United States if they could. Iowa would soon look like Islamabad, Pakistan. Lubbock, Texas would soon look like Lagos, Nigeria. Diluting the ability of the nation to make wealth won’t make us wealthier, it will just turn our country into a slum.

If it were only economic, I might be able to make the case that this was okay. We’d eventually catch up in wealth production. Eventually.

But it won’t, and that’s because of the second problem:

Genetics leads to culture leads to virtue leads to politics leads to outcomes.

That’s it. You can’t take 100, or 1,000 or 10,000,000 Nigerians and expect them to create anything but Nigeria. Same thing with Indians. Or Danes. Or Chinese. Studies of twins separated at birth prove that heritability not only of intellectual ability, but also attitudes and behaviors. Why are Indians turning Canada into India?

Because that’s what Indians do. Because that’s what Indians are. If you want your country to look like India, import more Indians. If you don’t want your country to look like India, don’t let them in.

And if you go back to my map, culture leads to virtue. This is the true failing of multicultural societies, since they cannot form a shared sense of virtue. Why are there rape gangs wherever Indians or Pakistani or Sub-Saharan Africans congregate, even in countries that don’t consider rape a spectator sport?

Because rape is okay in their culture, and if they bring their culture to Dublin, they’ll rape in Dublin. Look it up. It’s not a “because they’re in the United States or Europe” thing, it’s who they are. If only the most rape-y breed, well, then the people will become genetically more rape-y. So what happens when their people become the cops?

Pit bulls are different than golden retrievers. Wishing won’t make it less so, and why are we allowing a never-ending stream of pit bulls into the country?

Lee Kuan Yew, the father of modern Singapore said:

I started off believing all men were equal. I now know that’s the most unlikely thing ever to have been, because millions of years have passed over evolution, people have scattered across the face of this earth, been isolated from each other, developed independently, had different intermixtures between races, peoples, climates, soils . . . I didn’t start off with that knowledge. But by observation, reading, watching, arguing, asking, that is the conclusion I’ve come to.

If a country cannot determine who is allowed to become a citizen, then the result will be a multi-cultural society. What happens then? If the societies are close and have time, they can grow together, the British and Irish. Oh, wait.

To enforce a true multicultural society requires strong, swift, and sure enforcement of the rules. There was a 19-year-old American in Singapore who was caned in Singapore in 1994.

Why?

The American was being an ass. He deserved it. But also because Singapore has to be strict and severe because it is multi-cultural. To maintain a multi-cultural society that doesn’t turn into Mad Max® requires at least three of the four: justice, discipline, authoritarianism, and prosperity.

The alternative to that?

War.

War is not solely men in uniforms ranked in order on opposing sides of a line. If we encouraged people to move to a foreign country to take control, that would be war. How is that different from what India is doing? How is that different from what Islam is doing? How is that different from what Haiti . . . okay, skip that, Haiti isn’t bright enough to have a strategy more complicated than cannibalism.

In a multi-cultural society, it becomes a free-for-all, a war of all against all.

Multicultural societies don’t blend into harmony because we wish it so. History shows the exact opposite. But, hey, we’ve either got caning or cannibalism to look forward to, so there’s that.

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.

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.

Your Chatbot Is Cute. Theirs Is a Chained God. Here’s Why That Changes Everything.

“Have you ever seen the machines?” – The Time Machine (1960)

 

(all as-found)

I’ve been writing about A.I. for a while now, watching it go from goofy meme generators that couldn’t draw hands to something that’s theoretically (LINK TO ED ZITRON, who thinks it’s just a grift and has good points) eating jobs faster than Whoopi Goldberg can slam down a cheesecake.

However, the part nobody’s really talking about in the shiny TED Talks© and cable financial news talking head soundbites:  A.I. isn’t going to create a shiny utopia of universal luxury.  It’s going to split the world in two.

Again.

Only this time, the gap might make today’s rich-poor divide look like a disagreement over whether pineapple belongs on pizza in the comment section.

Right now, A.I. is democratic-ish.  I can hop on Grok™ or Claude® or ChatRPG© for a few bucks a month and get something that’s already much smarter than the pointy-haired boss in a Dilbert© comic strip.

It feels accessible.  But economics has a way of reminding us that “free” and “widely available” and “cheap” are temporary states like “sober” and “conscious” on New Year’s Eve.

The rich already live in a different reality.

Jeff Bezos even lives in a world that made him think his wife is attractive.  (meme as-found)

Think about it.  When’s the last time Jeff Bezos changed his own oil?  Has Elon Musk wandered the aisles of a grocery store lately, comparing prices on store-brand peanut butter versus the fancy stuff that isn’t made from off-spec styrene?  Probably not.

Their world is comprised of drivers, chefs, assistants, concierges, and layers of people who handle the mundane so they can focus on the tough business of being rich.  Breathing and, well, the other end of the digestive process are about the only things they share with the rest of us.

A.I. will supercharge that separation.

For the ultra-wealthy and national governments (which are basically the same thing at that scale), the A.I. of the future won’t be the public chatbot.  It will be a custom, proprietary, always-on system with access to individual datasets, massive private compute clusters, and real-time integration into their empires.  Imagine an A.I. that doesn’t just answer questions:  it anticipates needs across global supply chains, optimizes investments with keen foresight, runs entire divisions of virtual employees, and even simulates political and market outcomes with terrifying accuracy.

These systems won’t be running on shared servers in the cloud where your prompts might train the next version for everyone.  They’ll be air-gapped, secured, and jealously guarded.  Why share when you don’t have to?  And they’ll be created for maximum loyalty:  they will be, in essence, chained gods.

People they’re not building this for:  you. (meme as-found)

The rest of us?  We’ll get the consumer version.  The good enough.  Best Value® A.I.:  the one that’s rate-limited, censored in annoying ways, and always trying to sell me something or nudge me toward approved opinions.  It’ll be helpful for writing emails or generating images of cats on porches, but it won’t be the strategic weapon the elites wield.

This isn’t conspiracy, it’s simply the outcome of every technological advancement, ever, scaled to the size required by A.I.  The best models, the best hardware, the best data have costs.

Enormous costs.

The people who can pay will pay whatever it takes to stay ahead.  The split is already showing up in research papers and quiet boardroom discussions:  one track for the cognitive elite with private super-A.I., another for everyone else.

What has kept civilization and the elite in check has been the wide dispersion of talent that the genetic lottery of intelligence was in charge of:  talent.

Talent has always been the great equalizer.  A smart kid from a nowhere town could hustle, learn a trade or profession, and climb.  Companies needed human brains.  That paid for engineers, lawyers, marketers, analysts, and middle managers.  The path to wealth, while never easy, existed.

My biggest natural talent is sleeping:  I can do it with my eyes closed. (meme as-found)

When the rich have A.I. that can do most of that thinking better, faster, and without needing health insurance or vacation days, the demand for actual human talent craters.  Why should I pay a six-figure salary for a strategist when my private A.I. can simulate a thousand scenarios overnight?

The path to becoming rich effectively dies for 99.999% of humanity.

Not because people suddenly get dumber, but because the economic leverage of human capital evaporates for most.  The elites won’t need the vast pyramid of workers and consumers in the same way.  They’ll have their closed ecosystems.

Universal luxury from A.G.I. the benevolent master brain that creates enough wealth so we all get whatever luxury we want along with our private penthouses?

See, no free A.I.  (meme as-found)

That was always a fairy tale sold by people who want us to be calm while they consolidate power.  More likely is a world that looks like a high-tech feudalism:  a tiny class at the top with god-tier tools, a small retainer class to service them, and everyone else competing for scraps in an economy that doesn’t particularly need their labor or their spending.  This is the pattern history has shown us, and I see no reason that it would change.

We’ve seen such splits before.  The Industrial Revolution created massive wealth but also urban slums and child labor until society adjusted.  The internet promised to democratize information and ended up creating a few trillion-dollar companies while attention economies turned us into dopamine addicts.

A.I. will be bigger.

It hits directly at the part of us that separates us from being apes or, in for the French, poodles.  And when the cognitive tools are unequally distributed at this scale, the feedback loops get nasty.

Armageddon tired of all these rapture jokes. (meme as-found)

The elites won’t experience the same A.I.  Their versions won’t hallucinate on basic facts or refuse controversial topics.  It will be tuned to maximize their outcomes.  Ours will be tuned for engagement, safe ideas to keep the population docile, and for the extraction of more data.

What does this mean for regular folks?

First, stop waiting for the rising tide.  It’s not coming.

Build skills that are hard to automate or that the elites might still need humans for in the transition:  things involving real-world messiness, physical presence, trust, or creativity that can’t be faked at scale.  Yet.

Second, understand the game.  The split isn’t a bug for the elite, it’s the feature of late-stage capitalism meeting exponential tech.  The people at the top have every incentive to keep the best stuff private like they always have throughout history.

Third, maintain your own sovereignty.  No, not in the “this court doesn’t have subject matter jurisdiction” way but in the “keep thinking critically” way.  If you thought that Madison Avenue and the CIA knew how to persuade, imagine them with superhuman intelligence at their disposal.  Use the cheap AI tools while they’re useful, but don’t become dependent in ways that atrophy your own capabilities.

How did they train that cat to do all that??  (movie as-found)

The future isn’t written, but the trends are clear should A.I. succeed.  We’re heading toward a world where the rich don’t just have more money, they will become masters of reality.

The cultural and class divide we already complain about?  It’s about to get orders of magnitude wider.  Not out of malice, necessarily, but out of cold economic logic and the nature of power.

Or not.  As I’ve written recently, A.I. has caused what I believe to be the biggest bubble in the history of the world, and may pop with datacenters yet unconstructed and with billions in Nvidia© chips rotting in warehouses.

But, hey, why not both?  Why not an economy ending collapse of markets and the advent of godlike A.I. in the hands of the elites and government?  I can imagine Jeff Bezos having one of his factories making cheesecake for Whoopi Goldberg, and the machine going berserk and filling the entire island of Manhattan with cheesecake.  The horror!

The streets would be desserted.

What Does A Bubble Look Like?

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

You know what really gets my goat?  A Chupacabra.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Looks like even Buc-ee’s® went A.I.

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

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

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

Besides, I have other plans for Greenland.

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

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

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

Announced.

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

And that’s just for the building.

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

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

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

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

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

Things inflate because everyone wants them.

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

But a bubble?

Nah.  Don’t call it that.

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

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

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

Won’t that be interesting?

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

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

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

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

But are we close?

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

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

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

The world without Western Civilization. (meme as found)

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

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

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

Wait, what?

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

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

Why?

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

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

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

Yikes!

But let’s say it doesn’t work.

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

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

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

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

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

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

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

(as found)

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

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

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

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

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

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

Yup, been there, done that.

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

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

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

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

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

The Poor Get Hit First

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

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

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

Why?

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

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

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

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

Absolutely.

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

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

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

I fully expect this pattern to spread.

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

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

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

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

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

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

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

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

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

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

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

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

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

Is angry vodka mean-spirited?

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

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

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

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

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

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

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

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

“Season’s greetings.”

 

Every Where You Look: The Game

“I’m giving you a choice:  either put on these glasses or start eating that trash can.” – They Live

“I’m hear to chew bubblegum and kick ass.  And I’m all out of bubblegum.”  (all memes as found)

Most posts aren’t connected, outside of they’re all written by me.  However, the last few have been following a theme that’s pretty old:  mistaking The Game for reality, even Plato wrote about it.  There are times we all get stuck in it.  It’s pretty seductive.  We mistake The Game for reality, often to our own detriment.

What’s The Game?

The Game is where life moves away from reality.  Money (or currency, or cash, which are not the same thing but we’ll use interchangeably in this post) was invented as a way to make trade easier.  Gold and silver were great because they didn’t rust, could be split up in itty bitty increments, and couldn’t be printed.

Money is an invention.  Collectively, humans made it.

We also invented interest rates.  Back a year or so ago (I’m too lazy to look it up) I invited everyone to think differently about the world by changing one simple thing:  eliminate interest on money.

If you haven’t seen the movie They Live, you should.  But when I suggested that “Let’s pretend that interest rates don’t exist,” I felt like Rowdy Roddy Piper trying to get Keith David to put on the ZZTop® sunglasses that (spoiler) allowed humans to see that half the people around him were aliens.

I mean, we didn’t get in a fistfight that lasted 20 minutes, but no one wanted to play a different version of The Game.  It was such a fundamental departure from the way the current world worked that people just couldn’t imagine it.

This is what The Game does.

I’ll guarantee that your great grandparents moving across the American West or settling in Kentucky or working a farm in Virginny could have imagined life without interest rates.  Many of them may not have borrowed money at interest at all.

In their lives.

It’s not that money didn’t matter, it most certainly did.  But if you grubstaked a house on the prairie you might have had to borrow a dollar or two until the crop came in, but it was probably to the store, and it probably wasn’t at interest.  Who would even loan against a farm?  Land was free for those that could homestead it.  Banking for everyone is a new invention.  Just like interest rates, it was just a new rule for The Game.

The reason?  Why not extend The Game to everyone so that they could transfer their wealth at six percent per year to the owners of a bank?

Large amounts of society are like this.  It is a large part of why it was so crucial to the COVID tRUsT tHe ScIENce crowd.  This was in a time of general insanity as the “trans-women are women” and “women are exactly like men” and “black people are really oppressed and George Floyd was murdered” hysteria hit peaks.

All of these are symptoms that The Game is afoot, and there is nothing a person who has bought into The Game will fight more than having the rules of The Game challenged.  And if individuals fight hard, the system will fight even harder.

January 6, anyone?

If I were a suspicious man, I’d think this was all an intentional plan to move away from the real to the fantasy world of make-believe things like money.  The transition for money moved from:

  1. Money is something tangible. Gold, yes.  Silver, maybe along with some copper and nickel.  But I don’t trust silver or copper or nickel much.
  2. Okay, gold is so important you can’t touch it but you can keep your silver coins. Only the government.  Oh, and the gold that we just took from you?  We’re going to immediately double its value.  But the dollar will always be backed by gold.
  3. Silver in coins are too expensive to make. We’ll just make them out of base metals.
  4. Gold?   We’re just going to have dollars.  You can buy your gold back.
  5. Pennies? Too expensive to make, we lose money on every single one we make.  We’ll skip ‘em.
  6. Say, have you tried some of this electronic digital cash so we can track everything you buy? So convenient and easy!

The reality has been twisted, and taking your money from you via interest payments and taxes wasn’t enough, they had to take the money, too.  The rules of The Game have been changed.

And me arguing that getting rid of interest rates is a crazy thought experiment?

The way your money was taken the same way your rights are taken.  They are removed slowly, people are nudged.  If you follow the Supreme Court, the plain language of the document has been twisted so far as for some judges to believe that somewhere in the Constitution is the protected right of dual citizens to

  1. Exist, and
  2. Serve in jobs like congressman or as a federal judge.

But, yet, the plain language allowing me to own military-grade weapons means that I shouldn’t be allowed anything more powerful than a shotgun pellet gun bb-gun squirt gun dart gun Nerf™ gun, and my right to the Nerf® gun isn’t absolute.

The rules of The Game have been changed.

Okay, I made this one.

The same way that your rights are taken is the same way your values are taken.

Imagine society in 1950.  Perfect?  No.  If you didn’t mow your lawn, you couldn’t get a job or a loan.  Society rejected you, but those may have been features, rather than bugs.

Likewise, gays couldn’t adopt and certainly couldn’t get jobs where they would be alone with children – that would be insane!  But then The Game changed.  The Catholic Church decided that they could trust gay priests, since priests were celibate and, besides, God loves gay people, too, right?

Ouch.  Not so much.  It wasn’t the “priest” that caused the problem, it was the “gay”.

Gay people existed then.  Not in such large numbers because, for large numbers of gay people today “gay” is a choice.  And back then, the choice was made for you, and communities who had sexual fetishes about latex-covered toasters didn’t exist because there was no Reddit™ to connect them all.

That was better.  Rule changes to The Game have spread farther, faster in our connected world.

But our values have been ripped away via rule changes to The Game.  Nothing is wrong, except thinking something is wrong.  Silly.  The Game is about inclusion.  Even to the point of including people who hate you.  This is what is wrong with the world today.

Yeah.  See what that’s doing with birth rates.  But its also on purpose.  These values have been chipped at every year since at least the 1950s until the only value that The Game will leave you with is the value of money.

And they’ll even take that away from you.

Just try on the damn glasses, why don’t you?

Delayed Reaction: Systems, Cash, and Shortages

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

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

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

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

On.

Off.

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

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

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

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

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

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

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

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

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

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

They don’t exist.

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

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

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

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

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

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

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

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

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

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

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

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

“Not a fan.”