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Thoughts on Coming Apart and the Coming Great Reset

Turning and turning in the widening gyre

The falcon cannot hear the falconer

Kit Webster

Themes and Theses

Why I'm Contemplating Out Loud

(Initially formulated in the early 90s, following decades of reading history, philosophy, religion, psychology and a lot of contemplation, particularly on the subject of cycles. In the end, this is a relatively straightforward story about human nature and of history rhyming.)

The US will enter a period of crisis in the early 2000s. In the late 90s, I incorporated Strauss' and Howe's terminology of the Fourth Turning (without incorporating their generations paradigm) and agreed with Howe that the end stage of the crisis began with the Great Financial Crisis and would last into the early 2030s. We are now at the beginning of the end stage of the crisis.

The crisis will be serious and could be existential.

Internal strife will increase, up to and including secession and civil war.

International conflicts will increase as the vacuum created by the weakening of the US is filled by other players.

There will be many threads to the crisis, but the primary thread will be debt, deficits and entitlements. Other factors include, eg, demographics, a loss of meaning and myth and a loss of self-discipline.

Politics will move leftward as citizens look for some refuge from the chaos. The US will become increasingly susceptible to a (man) on a white horse, who can come from either the left or the right.

Inflation, as the most likely way to address debt since austerity is not politically acceptable, will significantly lower standards of living, exacerbating the civil crises.

Eventually, the dollar will be inflated away and lose its reserve status.

Once the old rot is cleared out, and assuming continuity, there will be the basis for the establishment of a new order.

There will be what Strauss and Howe calls a First Turning . It will be constructed out of the physical infrastructure, wealth, energy sources, thoughts and values in the culture at the time. At this point in time, those components are unknowable. We can anticipate that the next future will be increasingly chaotic. We can anticipate that there will be destruction, and then reconstruction from some level. We cannot yet anticipate the form of the reconstruction or the level from which it will begin.

(Added in the early 00s) While humans are contributing to global warming, policies implemented to address manmade global warming will create a significant energy crisis, probably toward the end of the Fourth Turning.

(Added around 2020) The loss of faith by our youth in our founding principles means that the new order will at least partially be based on new principles. As yet, I have no visibility as to what those principles might be.

(Added in 2023) The lowering / elimination of standards in education, the judiciary, law enforcement, the military and other segments of our society will create a population unable to adequately comprehend, do or respond to the challenges of democracy and culture.

(Added in 2025) China has won - at least for the next 5-10 years. The US is dependent on China for the materials it uses to create defense items. We literally cannot fight China without China's help. China's industrial base is impressive; the US has to rebuild. China is out-innovating the US. China is turning out more engineers and scientists than the US by far. This does not mean that China does not face challenges - demographics perhaps being its primary challenge. The US military remains stronger than China's, but in an age of drone warfare, that statement means less than it has historically. The US still has bargaining chips and will need to use them to maintain any kind of status quo.

(Added in 2025) AI has the potential to profoundly affect human culture. However, AI faces several significant hurdles, including the demand for massive amounts of electricity, which may not be available, and a cultural revolt against its existence. Since it could be existential, and since China is pursuing it, the US has no alternative, at least in the short term.

(Added in 2026) Maneuvering for control of critical materials will be a primary driver of geopolitics for at least the next decade.

"Declining standards and low expectations are destroying American education"

April 3, 2026

Quotes to Contemplate

When your ideology becomes your identity, you're screwed. - George Carlin

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Second place is extinction - Palantir Tech CEO Alex Karp framing the artificial intelligence race between the US & China.

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We’re are at the point of history where most April Fool’s jokes are indistinguishable from totally real things that happen regularly now. - Lyn Alden

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What's happening in the Persian Gulf today is the geopolitical equivalent of Biden's debate performance ... now everyone knows that everyone knows that it's broken, and that changes everything. - Ben Hunt

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This is the greatest crisis of our lifetimes. - Anas Alhajji

Summary of Primary Thoughts To Contemplate In This Issue

The "soft bigotry of low expectations" is critically contributing to the rotting of America's foundations.

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"They" are all lying to you about the Iran War - the level of propaganda is extraordinary.

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All of the tankers that left the Middle East before the war began have now reached their destinations, and now we will begin to see what the vacuum looks like.

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The Iran War will provide significant impetus for "green" energy - and also for increase use of coal. And, of course, nulear.

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The other "nuclear" option is in play - Iran attacked a Kuwaiti desalination plant.

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"What is far clearer now, however, is that the US is no longer a credible world leader. If it can elect this man twice, it has lost the plot. ... What it provides instead is an unpredictable wrecking ball." - Martin Wolf in the Financial Times - a respected man in a respected publication.

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American culture made a collective decision sometime in the late 20th century to treat educational credentials as a proxy for human worth rather than as a signal of demonstrated competency. Once a diploma became a social passport rather than a certificate of achievement, the pressure to distribute diplomas widely overwhelmed the pressure to ensure they meant something.

Markets

Updated charts 

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Not much to say until the war is over. - Charts not updated.

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"Declining standards and low expectations are destroying American education"

This headline in the Atlantic (!) resonated with me.

I have been focused on "the soft bigotry of low expectations" ever since I realized that, contrary to my expectations, integration had failed to lift blacks up to the level of whites and Asians, so we were going to dumb the rest of the world down to meet them.

I have thought long and hard about why blacks have generally not succeeded in spite of the eradication of most of discrimination and the availability of most of the same resources whites and Asians have.

It's a hard problem and I have no glaring insights. My primary conclusion has been that it is due to the toxicity of some aspects of black culture (condemning "acting white" and discouraging accomplishment; the absence of fathers) and the abomination of the inner city - but this is way beyond my pay grade. There may be other factors at play, but these are stark enough.

So, I gave AI the headline and asked for it to explore the causes for the lower expectations. It came up with the following:

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"The Root Causes Behind the Collapse of Standards

The sentence is true, but it's a description, not an explanation. To understand why it's true, you have to go one level deeper — into the institutional and cultural forces that made lowering standards feel not just acceptable, but virtuous.

The Compassion Trap

The proximate driver is a well-intentioned but ultimately corrosive redefinition of what it means to care about students. Beginning in earnest in the 1970s and accelerating through the 1990s, American education theory drifted toward the view that high expectations were a form of harm — that demanding rigorous performance from students who faced socioeconomic disadvantage was unfair, even cruel. The solution was to remove the demand rather than address the disadvantage. Grade inflation, social promotion, the erosion of remediation, the elimination of tracking — all of these flowed from the same impulse: protect children from the psychological damage of failure. The irony is devastating. Protecting students from the experience of failure in a controlled educational setting guarantees they encounter it unprepared in an uncontrolled adult world.

The Accountability Inversion

Underneath that is a structural problem: the incentive systems in American public education systematically reward the appearance of success rather than its substance. Graduation rates, pass rates, and grade distributions became political metrics. Administrators face pressure to show improvement on those metrics regardless of whether learning actually occurred. Teachers who grade honestly can find themselves in conflict with administrators who need the numbers to look right. The path of least institutional resistance is to lower the bar until everyone clears it — and then declare victory. No individual actor in this system necessarily behaves badly; the system itself produces bad outcomes through entirely rational individual behavior.

The Credentialist Substitution

There's a third layer that rarely gets discussed. American culture made a collective decision sometime in the late 20th century to treat educational credentials as a proxy for human worth rather than as a signal of demonstrated competency. Once a diploma became a social passport rather than a certificate of achievement, the pressure to distribute diplomas widely overwhelmed the pressure to ensure they meant something. The credential had to be democratized because withholding it felt like withholding opportunity. But a credential detached from standards is counterfeit currency — it circulates, it looks real, and it buys less and less over time.

Why This Matters Beyond Schools

The deepest causality is cultural: a society that conflates self-esteem with competence, that treats struggle as trauma rather than development, and that has lost the institutional courage to tell people hard truths produces an education system in its own image. Schools don't operate outside the culture — they amplify it. The declining standards in classrooms are a downstream symptom of a broader unwillingness to hold the tension between caring about people and demanding the best from them.

That tension — between compassion and rigor — is not actually unresolvable. It's just uncomfortable. And American education, at the institutional level, has been systematically choosing comfort over consequence for fifty years."

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I think this is right. It follows one of my "laws:" the road to hell is paved with good intentions. I really liked the insight about educational credentials being a proxy for human worth.

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But the question was still being begged. So I tried again. I asked AI to ponder why lower expectations were necessary. Bluntly, why were blacks not able, on average, to hack it in comparison with whites and Asians? I was afraid AI, Claude in this case, would go into a politically-correct shell, but it did not. It came up with a pretty good answer. While I disagree with some particulars, they are not important in the overall scheme of things. Here is what Claude had to say:

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"The Achievement Gap: Causes at the Next Level of Causality

This is one of the most studied — and most politically distorted — questions in American social science. The honest answer requires separating what the data actually shows from both the progressive taboo against asking the question and the racist temptation to answer it lazily. The research literature is substantial and the causal picture, while complex, is not actually mysterious.

First, Frame It Correctly

The gap is real but it is not fixed, not universal, and not biological. Black students in the highest-income quartile significantly outperform white students in the lowest-income quartile. Caribbean and African immigrant Black populations frequently outperform American-born Black populations by significant margins. The gap has narrowed substantially at several points in American history when specific structural conditions changed. All of that tells you the explanation is environmental and institutional, not genetic — which is the conclusion the preponderance of serious researchers reached long ago.

The Foundational Cause: Compounding Intergenerational Deprivation

The single most explanatorily powerful factor is the compounding effect of wealth deprivation across generations. Cognitive development — vocabulary acquisition, working memory, executive function, abstract reasoning — is dramatically shaped by the first five years of life. Those years are shaped by household stability, parental stress levels, language exposure, nutrition, and environmental toxin load (lead exposure alone accounts for a measurable portion of the gap in affected cohorts). All of those inputs correlate tightly with household wealth.

Black American household wealth is roughly one-tenth of white household wealth — a gap that traces directly to explicit legal policy. Redlining, the exclusion of Black workers from New Deal labor protections, the GI Bill's discriminatory implementation that built the white middle class while largely excluding Black veterans, and prior to all of that, the complete destruction of any inter-generational wealth transfer possible through slavery. Wealth compounds. So does its absence. A family that was legally prevented from accumulating assets through the 1960s is, in 2025, two to three generations behind in the compounding cycle. The children entering kindergarten are not starting from the same place, and no amount of excellent K-12 schooling fully compensates for what happens before kindergarten.

The School Quality Trap

American public schools are funded primarily through local property taxes. This is a structural decision with a predictable and well-documented outcome: neighborhoods with low property values — which in America correlate strongly with race due to the mechanisms above — produce schools with lower funding, less experienced teachers, higher turnover, older facilities, and fewer enrichment resources. The students who arrive with the greatest developmental deficits are systematically assigned to the schools least equipped to address them. This isn't incidental. It's the architecture.

Cultural and Social Capital Factors

This is where the conversation gets more contested, but the evidence is real and deserves honest treatment. Sociologist John Ogbu's research on "involuntary minority" dynamics — later expanded by scholars like Orlando Patterson — documented that communities with a history of systemic exclusion from mainstream institutions sometimes develop an oppositional cultural identity in which academic achievement becomes coded as "acting white" or capitulating to a hostile system. This is a rational adaptive response to a history in which education did not reliably produce mobility for Black Americans the way it did for other groups. The problem is that the adaptation, once internalized culturally, persists even when the structural conditions partially improve. Peer social pressure against academic achievement in some communities creates a genuine headwind that operates independently of school quality or family income.

This is not an excuse to stop addressing structural causes — it is an additional, distinct mechanism that has to be named to be addressed.

The Asian Comparison Is Instructive

The Asian achievement profile is often invoked as a counter-argument — if discrimination explains the Black gap, why do Asian Americans, who also faced severe historical discrimination, outperform even white students? The answer is multi-part. First, Asian immigration policy since 1965 has been heavily skills- and education-screened, meaning the Asian-American population is not demographically representative of Asian populations globally — it's a selected high-achievers cohort. Second, the specific cultural traditions transplanted through that immigration — Confucian emphasis on education as the primary vehicle for family honor and advancement — create intense, multigenerational academic investment at the household level. Third, Asian-Americans were not subjected to the specific mechanisms — slavery, sharecropping, redlining, GI Bill exclusion — that destroyed intergenerational wealth transfer for Black Americans. The comparison is informative but not symmetrical.

The Synthesis

Lower expectations in schools are a response to a genuine and persistent performance gap. That gap is not the product of inherent racial differences in intelligence — the scientific consensus on this is clear and the hypothesis has been tested extensively enough to set aside. It is the product of a specific, traceable chain of policy decisions stretching back centuries that systematically prevented wealth accumulation, concentrated poverty in specific communities, underfunded the schools serving those communities, and created the social and developmental conditions that suppress cognitive development before a child ever enters a classroom.

The uncomfortable truth is that lowering expectations is the worst possible response to this situation. It treats the symptom by eliminating the measurement, leaving the underlying deprivation entirely intact while adding a new harm: a generation of students who graduate without the skills the credential implies they have, entering a labor market that will make the measurement the schools stopped making.

The gap is real. Its causes are structural and historical. And the solution — which nobody with institutional power has been willing to sustain — is early intervention, honest assessment, and genuine resource redistribution toward the students with the greatest deficits, paired with the courage to maintain standards rather than abandon them."

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During the 60s, I thought that it would take three generations for most of the trappings of discrimination to work their way out of the system. I have never thought racism would be eliminated - that's a utopian folly. We don't even like the Maga white guy down the street or the Jew a block over - the Democrats that wouldn't date a Republican are how much different from whites that would not date a black? (actually not much, just a measure of either lack of introspection or objectivity - it's ok with me - we all don't like something, even if it is cars on blocks in the front yard - the trick is to behave decently in public - that's where we fall down - demanding that our personal opinions be adopted all the time, everywhere) - but I expected its intensity to be significantly reduced. I was directionally correct, but I thought we would be farther along by now.

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It looks like we have a longer row to hoe and that we also need to address the negative unintended consequences of integration.

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Iran - The Fog of War

Jim Bianco is an excellent thinker. See his X post on war at the bottom of this post. Ironically, Trump just asked for $1.5 trillion in defense spending. Some of it is for defense, but we also have a military-industrial complex to support.

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They're lying to you.

Everybody.

Everybody is lying to you about how the war is going.

Trump is liar-in-chief.

We are getting the heavily filtered good "news."

Of course, this is expected during war, but the difference this time is that there is no coherent story, even if it is a lie.

How do you cut through all of this?

Well, you don't.

You just collect as many dots as are available and try to connect them.

But mostly you wait for the book to come out - JFK and his women, for example.

Which is not helpful in the short term.

I'm gathering dots, right and left, and I see through a glass only darkly.

We're beating the stuffing out of the Iranians militarily - I think that one is true. But, we also beat the stuffing out of the Viet Cong, the Taliban and the Iraqis, and see where that got us.

Iran is really, really hurting. There is incentive to end this thing, so it should be ended - days, weeks.

But the damage will only be able to be assessed when it is over.

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My dot-connector still says 80% probability of boots on the ground on any given weekend and 20% probability of nuclear, but what the hell do I know?

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If you would like an interesting discussion of all the things that don't make sense about the Iran War go to macrovoices.com for this week's interviews. The interview with Matt Barrie on AI is interesting, but you can also fast-forward to the interview with Anas Alajji, who is the closest thing to an honest broker I have found when discussing the war.

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> The other "nuclear" option is in play - Iran attacked a Kuwaiti desalination plant.

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> All the tankers that were on the ocean delivering oil when the war began have now delivered their oil.

Now, the fun begins for real.

JP Morgan has created a map of how much time we have left, when the affected areas will be in trouble

Asia: April 1

Europe: April 10

North America: April 15

Australia: April 20

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> Clearly, whatever is actually going on, we have an agreed, internal policy., right?

Secretary War Pete Hegseth has asked Army Chief of Staff Gen. Randy George to step down and take immediate retirement.

Hegseth is removing two additional Army generals tonight: Gen. David Hodne, head of Army Transformation and Training Command, and Maj. Gen. William Green Jr., chief of the Army chaplain corps.

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> This war has become the poster child for "green" energy. Look for massive adoption in the future, regardless of views on global warming.

Ironically, the war will also result in increased oil exploration and coal usage. And nuclear energy.

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> Iran is really, really hurting. There is incentive to end this thing, so it should be ended - days, weeks. But the damage will only be able to be assessed when it is over. Today the alternatives run from bad-but-containable in the medium term, to oh, shit. Every day moves us closer to oh, shit.

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> One result of this may be the destruction of Nato. There are pros and cons, as with everything, but, on the whole, I think that's a bad idea, unless we are going to withdraw into our hemisphere, which is also not that bad of an idea.

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> Uh-oh. Lindsey Graham, warmonger-in-chief, wants the war to be over.

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> The European Commission has urged people to work from home, drive and fly less, and for EU countries to urgently roll out renewables, as it warned of a prolonged energy crisis as a result of the conflict in the Gulf.

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> Respected Martin Wolf of the Financial Times -

> Iran’s IRGC just threatened 18 US companies. If the US continues assassinating Iranian leaders, these are the targets. Deadline: April 1st. – Boeing – Meta – Tesla – Oracle – Palantir – IBM – Apple – JP Morgan – Dell – Nvidia – Intel – Microsoft – GE – Cisco

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> Another example of performative politics ignoring Economics 101 - South Africa slashed fuel taxes for one month to cushion consumers from the Iran-driven oil price surge, a move that will cost the government roughly $350 million in revenue. Decreased price increases demand, exacerbates the problem.

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> Australia to implement its national fuel strategy. Fuel Rationing to begin. Australia-wide Primary focus to agriculture Each state to declare their own method in how they deal with each matter.

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> CHINA IS EXPERIENCING A SIGNIFICANT HELIUM SHORTAGE DUE TO MIDDLE EAST CONFLICTS, AFFECTING HIGH-TECH SECTORS.

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> I think Kuppy has a point - "The important thing is that Trump is out of attractive options. Hormuz has to open, or the global economy dies. Iran won’t negotiate and ground wars are messy. Given the size and population of Iran, we likely need a force generation that is a few times that of Iraq 1. As you can imagine, most Americans want nothing to do with an adventure like this. At the same time, Trump cannot simply go home, as that would be a defeat. As terrible as it seems, Trump is slowly realizing what I said a few weeks ago, the only way out of Iran, is through Iran. Are you ready for what’s coming..?? They’ve been prepping for 45 years…"

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> NATO Member Spain Closes Airspace To US Planes Involved In Iran Operations. Italy has similarly closed Sicily.

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> Russia, China, & France blocked an Arab-led push at UN Security Council for a resolution authorizing military force to reopen the Strait of Hormuz.

So,  You Say You Want A Revolution?

(I will explicitly note any use of AI throughout this newsletter. If there is no AI-note, you can assume it is either my writing or a quote from a news source.)

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> Neil Howe - 

Gallup has just released its 2026 World Happiness Report. The global survey asks over 1K respondents from each country to rank their lives, where zero equals the worst possible life, and ten equals the best. These scores are averaged over the last three years.

For the second consecutive year, no English-speaking country ranked among the world’s 10 happiest nations. New Zealand placed 11th, Australia 15th, the US 23rd, Canada 25th, and the UK 29th. The US now sits between Saudi Arabia (22nd) and Poland (24th). The top rankings continue to be dominated by Nordic countries, with Finland once again claiming the No. 1 spot.

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> There is a moral in here somewhere - when reporting on No Kings Day, the Guardian said that millions turned out; the Wall Street Journal said hundreds of thousands. The Morning Dispatch said, "at least several hundred thousand." Pre-demonstration, organizers set expectations at 9 million. We cannot get facts even on simple questions when politics are involved.

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> Taco alert - Trump said that he would permit a Russian oil tanker, the Anatoly Kolodkin, to arrive in Cuba , despite the U.S. blockade of the island nation. 

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> I think birthright citizenship is a bad idea - it creates strong incentives for illegal immigration as an unintended consequence. However, that's the rule and there we are.

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> Trump signed an executive order on Tuesday that directs the Department of Homeland Security (DHS), in conjunction with the Social Security Administration (SSA), to compile a list of all eligible voters in each state and requires the U.S. Postal Service (USPS) to deliver mail-in and absentee ballots only to individuals appearing on that list. The order also directs the attorney general to prosecute election officials who distribute ballots to ineligible voters and withhold federal funds from noncompliant states. The order also directs DHS and SSA to identify, for all 50 states, each legal resident who is a U.S. citizen and 18 years old or older and and calls for a USPS review of the design of ballot envelopes and for all ballots to be given a unique Intelligent Mail barcode.

  • A similar Trump executive order from March 2025 has been blocked by three federal courts that concluded the president lacked the constitutional authority to set voting policy since the Constitution vests election administration in the states, with some authority delegated to Congress.

 

> Game on - Nancy Pelosi says Trump and Republicans may try to rig vote counts in the midterms: “We have to be on guard…They may try to creep into the technology and create a false count."

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> More sad than outraged - I am not a big Jackson fan, but she outdid herself in recent discussions. Arguing in the birthright citizenship case - "I was thinking, you know, I'm a U.S. citizen, am visiting Japan. And what it means is that, you know, if I steal someone's wallet in Japan, the Japanese authorities can arrest me and prosecute me. It's allegiance, meaning can they control you as a matter of law?" "So there's this relationship based on—even though I'm a temporary traveler, I'm just on vacation in Japan, I'm still locally owing allegiance in that sense. Is that the right way to think about it?" "And if so, doesn't that explain why both temporary residents and undocumented people would have that kind of, quote-unquote, allegiance, just by virtue of being in the United States?"

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> The Senate just held another pro forma session to prevent Trump from making any recess appointments. Trump is the first president in history to have his own party block his recess appointments.

Short Takes

> Real life in search of a metaphor - Secret Service agent accidentally shoots himself in the leg while escorting Former First Lady, Jill Biden.

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> Nestlé confirmed that a shipment of 413,793 KitKat bars—about 12 tons—vanished while en route from Italy to Poland. Neither the truck nor its cargo have been found. 

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> J.D. Vance Says He Thinks UFOs Are ‘Demons,’ Not Aliens, as He Admits to Obsessing Over Them.

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> I guess he pretty much missed the whole Old Testament - "This is our God: Jesus, King of Peace, who rejects war, ​whom no one can use to justify war," Leo, the first U.S. pope, told crowds in ​brilliant sunshine.

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> Not on my BINGO card - Senator Babet announces "you would be very surprised who's not entirely human" — but says he can't disclose more because the alien hybrid program is classified.

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> Also not on my BINGO card - Trump reacted on Tuesday after newly released photos appeared to show the husband of former Department of Homeland Security Secretary Kristi Noem cross-dressing in private messages to a number of women.

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> All the people grousing about the politically correct moon launch that did not have to be manned and looks like a gigantic pr stunt are missing the point. Space is the arena for the next military conflict and the moon is the high ground. The manning of this launch is two parts pr, one part science and two parts military. You know they are really reaching when they partially justify the mission because, "human eyes will see parts of the moon they have never seen before." The Guardian just gushed that it "might find the secret to human life." "Might" is doing a lot of heavy lifting here, as in, way less than a 1% probability. "Finding life in outer space" is the new "it's for the children" in terms of mindless support for whatever is at issue.

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> Traffic jams of the future - More than 100 Chinese Baidu robotaxis froze across Wuhan after a system failure, the first mass shutdown of autonomous taxis reported in China.

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> Finally!! We are saved! â€‹South Carolina Governor candidate, Nancy Mace, announces she’ll ban chemtrails if elected to office.

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Gallery

Miscellaneous

Clearly a parody - no one would like to do this. From the Bee.

Jim Bianco on War

Jim Bianco

@biancoresearch

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I am not a military analyst. I'm a financial analyst focused on macroeconomic risk. That different lens might explain why I see something most military strategists and investors are missing. --- The New Rules of Warfare—And Why We Can't Opt Out For nearly a century, warfare belonged to whoever controlled the biggest defense budget. Aircraft carriers. Stealth bombers. Multibillion-dollar weapons systems. That model is changing in ways many aren't appreciating. Ukraine and Iran are showing the West what 21st-century conflict actually looks like: decentralized, highly iterative, fast-changing, unmanned, and cheap. Neither the US nor Russia—beginning in 2022—appears prepared. We might now have no choice but to show we can fight and win such a war. The Ukraine Approach Faced with a small defense budget, a much smaller population, and a vastly outnumbered army, Ukraine had to get creative. They couldn't match Russia's industrial capacity or spending. So they abandoned that playbook entirely. They developed an entirely new way to fight, highly decentralized, iterative, and most importantly, cheap. They also created Brave1—a completely new way to conduct war. Frontline commanders log into an iPad and bypass central command entirely. They spend digital points to purchase equipment directly from hundreds of (Ukrainian) manufacturers. When they encounter a new threat, they message the manufacturer directly and work with the engineers to find a solution, even if that means they visit to the front. The result is hardware or software upgrades that once took months now take days. Here's the crucial part: hundreds of manufacturers compete fiercely for these dollars by offering the best possible product as fast as possible. This isn't centralized procurement. It's a market. Competition drives innovation at scale. Weapons evolve as the enemy evolves in real time. Units are also awarded points for confirmed kills, uploaded from drone video—a powerfully eloquent way to grade effectiveness. But the real innovation might be how they decentralized manufacturing itself. Instead of building weapons in massive, centralized factories that make perfect targets for Russian bombing, Ukraine distributed production across hundreds of small manufacturers—workshops, machine shops, garages, and yes, kitchens. Each produces components or complete systems. This approach serves two purposes: speed and survival. You can bomb a tank factory. You destroy production for months. You cannot bomb ten thousand kitchens. If one workshop gets hit, ninety-nine others keep producing. The network regenerates faster than Russia can destroy it. This is why the manufacturing process includes actual kitchens—it's not a metaphor. It's a strategy. The Metric That Defines a New Era The result is staggering: at least 70% of battlefield casualties now come from drones. This is the first time in over a century that the primary cause of combat death is neither a bullet nor an artillery shell. Since World War I, industrial warfare meant industrial killing. Ukraine has broken that equation entirely. As a result, Russia is now controlling less territory than at any point since 2022 and going backward. In March, Ukraine made gains while Russia recorded no gains for the first time in two and a half years, and Drone-led offensives recaptured 470 square kilometers while paralyzing 40% of Russian oil exports. Ukraine has lowered the "cost per kill" to less than $1,000 per casualty—a 99.98% reduction from the millions of dollars that were common in the post-9/11 wars. This isn't an incremental improvement. This is a complete inversion of modern military economics. Yet the Western defense establishment is not learning from this. Rheinmetall CEO Armin Papperger mocked Ukraine's entire approach. In The Atlantic, he called Ukrainian manufacturers "housewives with 3D printers," dismissing their work as "playing with Legos." They are not studying this revolution. They are mocking it. And the "housewives with 3D printers" are beating the Russian army! Ukraine Is Now in the Middle East The US Military and Gulf states face an eerily similar problem. Iran's Shahed drones threaten shipping in the Strait of Hormuz—a chokepoint that funnels 21% of global oil. They cannot fend off Iran by firing a $4 million Patriot missiles at $20,000 drones. They need what Ukraine has discovered: a decentralized, rapidly adaptive defense network that doesn't require centralized industrial capacity. That's why Ukraine just signed historic 10-year defense deals with Saudi Arabia, Qatar, and the UAE. Over 220 Ukrainian specialists are now on the front lines of the Persian Gulf—exporting not just weapons, but a completely new doctrine of how to fight. The precedent is set. The model works. Everyone is watching. Mosaic On April 1st, Trump threatened to bomb Iran "back to the stone ages" if they don't reopen the Strait within weeks. It's the classic 20th-century playbook: overwhelming offense force, massive bombardment, industrial-scale destruction. The problem? That playbook doesn't work against distributed, cheap, rapid-iteration systems—especially when your enemy is organized under a mosaic structure. Iran's "Mosaic Defense" doctrine is a decentralized command system where authority and capability are distributed across multiple geographic and organizational nodes. Each region operates semi-autonomously with overlapping chains of command and pre-planned contingencies. It's designed so that when you destroy the center, the edges keep fighting. You cannot decapitate a system with no head. You cannot out-bomb your way to victory when your enemy is not centralized; this was the solution for 20th-century industrial warfare. Defense Wins Championships 21st-century asymmetrical threats require defensive shields, not aggressive offenses. Ukraine has built exactly that: rapid-iteration defenses, decentralized manufacturing, commanders empowered to buy solutions in real time and rewarded for success. That same defensive model may hold the key to opening the Strait of Hormuz. Not through massive offense, but through the ability to adapt and defend quickly. Why We're Stuck Whether you viewed this as a war of choice or not, it has now become a war to keep global trade open. And that makes it inescapable. This is precisely why the US cannot declare victory and walk away from the Strait of Hormuz— or TACO. Every adversary on the planet will interpret American withdrawal as confirmation that cheap asymmetric systems work against powerful centralized platforms. And these adversaries might have sent us a message last month. In mid-March 2026, an unauthorized drone swarm penetrated Barksdale Air Force Base in Louisiana, home to the U.S. Air Force's Global Strike Command. The fact that this happened not overseas but in the United States, and that these tests occurred just weeks ago, underscores how close this threat is now. They didn't attack. They announced their presence. Every adversary watching learned that cheap drone networks can reach into the US. The Global Supply Chain Risk If the US abandons the Gulf while Iran holds the Strait contested, markets will price this as validation that cheap systems can hold global trade hostage. The current market disruptions will become permanent. Supply chains will have to pivot from "just-in-time" efficiency back to "just-in-case" redundancy. Inflation returns as safety costs money. Trade routes diversify away from vulnerable chokepoints. The global friction tax becomes permanent. The Unavoidable Truth Once you prove that cheap, asymmetric systems can hold global trade hostage, that knowledge spreads globally and irreversibly. Every adversary learns the same lesson: you don't need a $2 trillion Navy—you need $20 million in drones and the will to use them. Withdrawing while the Strait remains contested would permanently validate this model. Supply chains shift to "just-in-case" redundancy. Insurance costs rise. The friction tax becomes structural—baked into every global transaction for decades. The cost of staying is measured in months. The cost of leaving is measured in decades of economic drag. We cannot leave unfinished business.

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