North Korea fired back on Saturday and lashed out at the Washington-Seoul alliance, tearing into a fresh South Korea-EU joint statement that condemned Pyongyang’s deepening military alliance with Russia.

North Korea has increasingly over the past acknowledge a significant number of troops sacrificed in support of Russia and in the context of the brutal and grinding Ukraine war.

The Western-aligned statement, inked Wednesday during South Korean President Lee Jae Myung’s high-profile trip to Brussels, took direct aim at the “illegal military cooperation” fueling the war in Ukraine.

“We condemn support by third parties, in particular the DPRK, which enables Russia to sustain its war of aggression against Ukraine,” the statement said.

A fully anticipated, North Korea’s foreign ministry quickly hit back through the state-run Korean Central News Agency, framing its axis with Moscow as a mere “exercise of sovereign rights.”

Russia and North Korea under Presidents Putin and Kim have even signed a defense, technology and economic cooperation pact relatively recently.

The ministry didn’t mince words, calling the joint condemnation a “clear infringement on the sovereignty of our state and a grave hostile act,” while pointedly reminding everyone that South Korea remains the North’s primary “enemy state.”

Pyongyang has of late branded Seoul as Washington’s “favorite dagger” in alleged grand American plot aimed at “invading… the Asian continent.”

The reference was a play on words after General Xavier Brunson, the top American military commander in South Korea, raised eyebrows last month by provocatively describing his host nation as “the dagger in the heart of Asia.”

Both North Korea and China have seized on Brunson’s slip of the tongue, painting it as proof of Washington’s true playbook ofusing Seoul to contain Beijing.

With North Korean leader Kim Jong Un already putting his money where his mouth is – shipping troops and heavy munitions to bolster Vladimir Putin’s front lines – the war in Ukraine has slowly been morphing into more than just a EUropean crisis.

Earlier this week, a routine livestreamed Meta meeting descended into open revolt.

During a presentation open to thousands of employees, one participant suddenly interrupted the speakers with a profanity-laced outburst, according to WIRED. The employee declared they felt like “the company’s bitch” and demanded that the people leading the call write to a specific Meta AI executive and “tell him that he’s a piece of shit.”

One presenter reportedly covered their face with their hands. Moderators asked everyone to mute. The technical discussion eventually continued, but the moment – which employees in the chat described as “spicy” – revealed something much deeper: widespread anger and disillusionment inside Meta’s newly formed Applied AI unit.

“It’s literally the gulag. You have zero purpose in life all of a sudden, you barely interact with anyone, you just have these tasks every week,” one current employee told WIRED on condition of anonymity. 

A Rapid, Painful Reorganization

That unit, formed in March 2026 to support researchers at Meta’s Superintelligence Labs, now employs roughly 6,500 engineers and product managers. Many were reassigned with little warning. Their new work – largely generating puzzles, coding challenges, and evaluation tasks to test how reliably AI models can solve problems – has left a significant portion of the team feeling demoralized and stripped of purpose.

“Most people find the work soul-crushing,” another employee said. All three sources spoke on condition of anonymity because they were not authorized to talk to the media. Meta declined to comment.

Key Numbers

The Applied AI unit is only the most visible flashpoint in a much broader restructuring. In May, Meta laid off approximately 8,000 employees as part of an AI-focused overhaul. Another ~7,000 people were transferred into new AI-related initiatives.

The speed and bluntness of the changes have created ripple effects across multiple divisions. Employees in data center engineering and Instagram have reported increased stress and workload. Meanwhile, more than 1,600 Meta employees signed a petition demanding the company stop a recently launched program that monitors U.S. employees’ clicks, keystrokes, and screen activity to generate training data for AI agents. The company has since scaled the program back slightly.

“It’s Like What The Fuck”

During an all-hands meeting this week for Instagram employees, Chief Product Officer Chris Cox addressed the turmoil directly. According to a recording obtained by WIRED, Cox described the past few months as a “difficult” and “brutal” environment created by the “insanity of this company.”

He praised Instagram teams for continuing to ship features and serve roughly 2 billion users while navigating constant upheaval. Then he compared the situation to “running a marathon in the middle of a hailstorm and then, like, your teammate gets replaced and then we’re recording you.”

“It’s like what the fuck,” said Cox – adding again, “It is like what the fuck.” 

Cox also struck a notably measured tone on AI itself: “It is neither god, nor is it the devil. And it’s nowhere near as good as you think it is, and it is nowhere near as bad as you think it is.”

Engineers across Meta have reported feeling sidelined and demoralized by sudden reassignments into repetitive AI evaluation work.

Zuckerberg Acknowledges Mistakes

The same week, CEO Mark Zuckerberg sent an internal memo to employees acknowledging that the company had made errors in how it reshaped its workforce around AI.

“Given the complexity of these changes, we’ve made mistakes and will almost certainly make more,” said Zuckerberg, according to Reuters. 

Zuckerberg wrote that he is “focused on providing as much stability as possible” going forward and does not expect additional company-wide layoffs this year. He said Meta would work to create “important new roles” for employees who were reassigned to AI training and support work.

He also noted plans to increase spending on team-building initiatives, including a large-scale hackathon in July, and to scale back the unusually wide manager spans that appeared in the new Applied AI unit (some reportedly reached 50:1 ratios).

Why The Work Feels Like Punishment

The core complaint inside Applied AI is not that the company is investing in AI – most employees understand the strategic importance. It is the nature of the tasks many were suddenly asked to perform and the way the transition was handled.

Generating high-quality evaluation puzzles and coding problems is genuinely difficult and valuable work for frontier model development. But for engineers who previously built products, shipped features, and collaborated creatively, being reassigned to repetitive, solitary evaluation tasks has felt like a demotion.

“You have zero purpose in life all of a sudden,” one of the employees told WIRED. “You barely interact with anyone, you just have these tasks every week.”

The flat organizational structure exacerbated the problem. With so few managers, many employees felt they had little support, visibility, or path to more meaningful roles.

Many engineers were reassigned to repetitive puzzle-generation and model-evaluation tasks – work they describe as soul-crushing compared to their previous roles.

The Stakes Are High

Meta is not alone in pushing rapid AI-driven reorganization. Across Silicon Valley, companies are redirecting resources, cutting teams, and experimenting with new workflows to stay competitive in the AI race. But few have done so at Meta’s scale or with such visible internal blowback.

The risk for Meta is real. Engineering talent remains the scarcest resource in AI. If skilled people feel their work has been devalued or that leadership is moving too fast without regard for the human impact, attrition to competitors becomes more likely – exactly when the company needs its best people most.

Zuckerberg’s memo and Cox’s candid remarks suggest leadership is aware of the damage. The promised July hackathon, new role creation, and reduced manager spans are concrete steps toward repair. Whether they will be enough remains to be seen.

For now, the message from parts of the workforce is clear: the company’s aggressive AI transformation has left many employees feeling used, undervalued, and angry. And some are no longer willing to stay quiet about it.

Authored by Troy Myers via The Epoch Times,

Americans living in the northeastern United States witnessed “brilliant and beautiful” glowing red and white orbs in their backyard, which they caught on video, the Pentagon’s third release of declassified UFO files on June 12 showed.

The new documents contained encounters from around the world, such as reports of a “disc-like” object in Zimbabwe, a “potato shaped” craft in Colorado, and “heavenly” phenomena moving at speeds of 12,000 kilometers per hour in Hungary.

The third batch adds to the previous two document dumps of UFO and Unidentified Anomalous Phenomena (UAP) files released by the Pentagon on May 8 and May 22.

Those batches also detailed stunning encounters, including Apollo 11 astronauts seeing a “sizable” object near the moon and a UAP being shot down over the Great Lakes.

Here are some key highlights from a partial review of the newly released files.

‘Brilliant Red Sphere’

The FBI interviewed U.S. citizens in February about their firsthand accounts of potential UAPs in their backyard. The documents were partially redacted and did not disclose when or where these encounters occurred—only that it was in the northeastern United States.

Upon returning home one night, one of these individuals witnessed an “intense bright light” hovering just below the tree line in their backyard. Another person in the home came outside and also saw the phenomenon, describing it as a red sphere about a meter in diameter with what appeared to be a “white plasma sun” the size of a basketball in the center.

One of the individuals described the red color as “brilliant and beautiful” and a tint they had never seen before.

The pair watched this orb move and noticed another identical orb directly above it, floating together in a silent and smooth manner as if they were tethered.

The two orbs moved above the tree line and merged into one before they floated out of sight.

In July 2025, in the northeastern United States, an eyewitness observed an intense bright light in their backyard as they parked their car upon returning home from work. This is a screenshot from the witness’s personal video. Screenshot via The Epoch Times/Courtesy of the Pentagon

One individual captured video of the phenomenon, which was included in the Pentagon’s release of files. The recording is 50 seconds long and shows two bright red orbs with white centers floating slowly together.

A few weeks after this event, one of the individuals also saw several white orbs in the same area traveling at a much higher altitude than the red ones.

More newly released video from this same area in the northeastern United States showed bright red orbs hovering at about 2,500 feet.

In March 2022, in the northeastern United States, a witness observed two bright red luminous light sources hovering near the horizon at an estimated distance of 2,500 feet. This is a screenshot from the witness’s personal video. Screenshot via The Epoch Times/Courtesy of the Pentagon

Cheyenne Mountains Sighting

Former U.S. Army intelligence officers witnessed a UAP over the Cheyenne Mountains in Colorado as they left their office building, according to the files.

FBI agents interviewed one of the individuals in June 2024 about their experience during a February morning of an unspecified year. This person described the day as perfect conditions, no clouds, little humidity, and about 50 degrees outside.

The object this group of former Army personnel witnessed was “potato shaped” with distinct edges and a “creamy/whitish opalescent color.” The object was slightly translucent and shimmery, the documents showed.

Its texture was described as “fish scales” or non-symmetrical, non-overlapping, irregularly shaped panels. Although the UAP itself was motionless, each panel “shifted in slow waves starting at different points of origin but at the same time.”

After about two minutes, the object vanished or “cloaked” itself in the time it takes to turn one’s head. There was also no shadow, according to the files.

The new files also included an artist’s rendering of the craft.

Former U.S. Army intelligence officers witnessed a UAP over the Cheyenne Mountains in Colorado as they left their office building. The Pentagon files included this rendering of the craft. Screenshot via The Epoch Times/Courtesy of the Pentagon

UAP in Zimbabwe

A July 2008 report of an unexplained craft above the Harare International Airport in Zimbabwe stoked debate on whether the sighting was an advanced device from a foreign government or had extraterrestrial origins.

The craft was observed at an undetermined high altitude.

Witnesses described this UAP as “disc-like” with a hollow center and a series of rotating lights on its underside. At one point, “beams” emanated from the craft, according to the documents.

The object eventually ascended rapidly out of sight. A “high alert” was implemented.

There was no video, photo, or artist’s rendering of the Zimbabwe UAP provided in the Pentagon’s files.

Flying Saucers in Hungary

A report on sightings in Hungary came about from letters of correspondence in 1955 between relatives living in the United States and Budapest.

The CIA released a report on this encounter with a sketch showing the formation and suspected flight path of several objects traveling between Budapest and Moscow.

A man living in the United States received a letter from his niece in Budapest mentioning “flying saucers.” Much of the letter was casual conversation, with one paragraph detailing the UAPs.

The niece wrote to her uncle that “everyone has been excited” over the mysterious crafts “for the past few weeks.”

“These fast-rushing heavenly [phenomena] have been and still are keeping scores of scientists busy,” the letter reads. “These amazing fliers moved at a speed of 12,000 kilometers per hour.”

Five Feds Witness UAPs

Part of the Pentagon’s release of files on Friday included multiple statements from “federal law enforcement special agents” who witnessed UAPs near a sensitive national security site in the western United States over the course of two days in October 2023.

A map of four sightings was included in the documents in addition to detailed witness statements of each encounter and several digital renderings.

This map is a representation of four incidents involving unidentified anomalous phenomena in the western United States. It depicts multiple incidents reported by U.S. federal law enforcement special agents over a period of several days in October 2023. Courtesy of the Pentagon

The federal officers reported “orbs launching other orbs.” This happened multiple times, according to the files, where an orange “mother orb” appeared to produce smaller red ones multiple times over a period of several hours.

This is a screenshot from a video of an artistic interpretation of a reported incident near a sensitive national security site in the western United States. Witnesses described the larger orange sphere as a “mother orb.” Screenshot via The Epoch Times/Courtesy of the Pentagon

These red orbs’ behavior was described as “anomalous” with “varied kinematic profiles including seemingly coordinated horizontal motion” and changes in altitude.

According to the documents, the red orbs only persisted for several seconds before disappearing, but at least once, the witnesses said one of the red UAPs hovered above a ridgeline for hours.

This is a screenshot from a video of an artistic interpretation of a reported incident near a sensitive national security site in the western United States. Multiple witnesses described seeing a “mother orb” launching smaller red ones. Screenshot via The Epoch Times/Courtesy of the Pentagon

In this same area, the federal agents also witnessed a “dark kite” and a “translucent kite” at close estimated ranges.

All of the crafts were silent, the documents said, and the sightings remain unresolved.

The word “Democracy” is thrown around frequently within progressive circles as a call to arms; a rallying cry based on a fraudulent narrative of patriotic duty.  Throughout the entirety of Joe Biden’s first and last term, the political left painted conservatives as a threat to democracy.  Anyone who opposed pandemic mandates, compelled vaccination, open borders, mass immigration, gender ideology in public schools etc., was labeled a danger to society.  

The inherent fallacy being that leftists (and by extension Democrats) represent the majority of the nation.  However, this notion has been consistently debunked by multiple elections, polls and the fact that the vast majority of liberal movements have been exposed as astroturf funded by NGOs.

If Democrats actually cared about democracy, they would listen to the actual American majority, instead of waging a propaganda war on the majority in order to manufacture a false consensus.  And, the majority of Americans do not support multicultural or “intersectional” ideology.  The liberal vision is on the decline and that’s a good thing.

Not surprisingly, Hillary Clinton disagrees. 

At the first Rainbow PUSH Coalition conference since the death of Reverend Jesse Jackson in February.  Pete Buttigieg and Hillary Clinton took to the stage in front of a small audience in Chicago this week to sell their Utopian future, but mostly they slandered the Trump Administration.  Their rhetoric continues to echo the message of the Biden era, that conservatives want the end of civil rights and voting rights in the US. 

Buttigieg asserted that the Trump Administration was “corrupt” and “corruption is bad”.

The former DOT Secretary makes no mention of the fact that he shares a stage with Clinton, widely known as one of the most corrupt politicians in recent American history.  While Democrats spend endless media time trying to tie Donald Trump to Jeffrey Epstein, it’s the Clinton Family that is well documented as being truly friendly with the globalist pedo pimp.  Around 90% of Epstein’s political contributions went to the Democratic Party including multiple donations to Hillary Clinton.  None of his donations went to Trump. 

Buttigieg faced extensive backlash for his handling of the pandemic lockdowns, including his avid support for draconian mandates which were ultimately found to be useless in stopping the spread of covid; and all over a virus with a 99.8% average survival rate.  He continues to echo the party line, calling for rigging of the Supreme Court to ensure Democrat supremacy.

Pete Buttigieg: We have to deal with a Supreme Court that is now a rogue Supreme Court. It’s time to think big. Nowhere in the constitution does it say there have to be nine justices… We could have 13.
pic.twitter.com/17epK62lyM

— Defiant L’s (@DefiantLs) June 13, 2026

Buttigieg is expected to run in the 2028 Democrat primaries for President.  Though, he lacks any mainstream popularity and, like most Democrats, he continues to campaign as if he’s running against Trump even though Trump is leaving office.

Clinton, on the other hand, seems less concerned with Trump and far more concerned with the larger conservative and anti-woke movements which have left Democrats stunned and bewildered.  Clinton calls these movements a “counter-revolution” which she believes is undermining the liberal order established over the last several decades. 

Clinton fearmongers with the usual rhetoric, claiming that civil rights and voting rights are under threat.

Hillary Clinton: “We are in a counterrevolution. It is a revolution to turn the clock back and take away the rights we have worked so hard to achieve. This counterrevolutionary crew in Washington right now doesn’t want us to be a Rainbow Nation.” pic.twitter.com/5sBnJuhwru

— TheBlaze (@theblaze) June 12, 2026

She is ostensibly referencing the end of redistricting using race-based gerrymandering, which exclusively worked in the favor of Democrats.  But, this was enforced by the Supreme Court, not Trump or the MAGA movement.  Clinton is also a vocal opponent of the Save Act, which would make proof of citizenship a requirement for voting in the US (a bill which is supported by around 80% of American voters). 

Her comments on the “Rainbow Nation” might be confusing for those who don’t understand what this entails.  Jackson used “Rainbow” to describe a broad coalition of “marginalized groups” (Black Americans, Latinos, Asians, Native Americans, LGBTQ+ people, low wage workers, etc.) uniting for political power and social justice. His organization commonly promotes Marxist “intersectionality” and multiculturalism. 

Clinton has made similar anti-populist statements in recent months, arguing that the rise of American conservatism has the potential to break apart the liberal west.  At the Munich Security Conference in February, she participated in panels on what they call the “West-West Divide”, warning of democratic backsliding on human rights (including women’s and LGBTQ+ rights), and authoritarian dangers.

Clinton called for civil rights and grassroots networks to counter the weakening of liberal institutions.  She made the same call for popular opposition in Chicago. 

“We have to reconstitute the movements that moved us forward, that made it possible to claim we were trying to get to that more perfect union. They were not led by politically elected officials. They were led by clergy, they were led by business leaders, they were led by civic organizers, they were led by young people. So we don’t need to have a bunch of elected officials leading this new movement. We need to have it be from the bottom up, the grassroots, coming back to get organized and move forward again.”  

In other words, if they can’t win (or steal) the elections and if they can’t gain the majority approval of the voters, then they will turn to mob actions to disrupt reforms and force the public to accept woke ideology anyway.  Democrats only romanticize democracy when it works in their favor.  When it doesn’t, they completely abandon it.  

Authored by Charles Hugh Smith via OfTwoMinds blog,

These immense hidden costs will not show up in GDP until they collapse the entire house of speculative gambling cards propping up the global economy.

I approach all AI topics with several things in mind. One is the nature of problems, which implicitly define what qualifies as solutions, and the resulting incentive to define the “problem” such that the “solution” happens to be the one we own and control.

So the “problem” AI solves is “corporate profits are too low,” and so the “solution” is to replace costly human labor (made costlier by SickCare insurance and taxes on labor) with “cheaper” AI (cheaper because the full costs are hidden or subsidized).

My other lens: the economic, social and cultural consequences of AI as it is and AI hype, a topic I’ve explored most recently in Is AI Reversing Anti-Progress or Is It Accelerating It?, AI Data Centers Are Not the Railroads of Today and Inequality, AI and Digital Life Are Undermining Society.

Correspondent Mike Fasano recently submitted a succinct and telling summary of AI’s insurmountable structural flaw: AI’s inability to discern the difference between truth and falsehood, be it intentional misdirection / misinformation or errors generated by AI hallucinations, a systemic flaw which he summarized as mass regurgitation of misinformation:

*           *           *

“I read you post on AI and railroads. Here is another observation.

So far, AI has only regurgitative intelligence. It–at best–can collate and respond to queries on masses of acquired data.

But what if that data is wrong?

Who now believes the inflation or unemployment statistics? Virtually every human knows that those statistics are false.

Does AI know that?

And the problem goes much deeper.

The former editor of the New England Journal of Medicine, Marcia Angell, noted:

‘It is simply no longer possible to believe much of the clinical research that is published, or to rely on the judgment of trusted physicians or authoritative medical guidelines. I take no pleasure in this conclusion, which I reached slowly and reluctantly over my two decades as an editor of the New England Journal of Medicine.’

That being the case, can we rely up AI medical advice?

And that problem goes beyond medicine. It is now generally conceded that the inability to replicate scientific studies of any type has give rise to a ‘replicability crisis’ in science. Can we trust ‘science’ that cannot be proven to be accurate?

Any adult past the age of 40 knows that the above listing of questionable information sources is just the tip of the iceberg. We live in a sea of ‘official’ but false data.

Railroads could transport grain to cities, minerals to factories, manufactured goods to those needing those goods. That served a public purpose.

But what is the use of the mass regurgitation of misinformation? And is anyone subtracting the losses engendered by the utilization of inaccurate information from GDP?”

*           *           *

Thank you, Mike, for clarifying an essential point: the foundation of all “value” is fact, truth, accuracy and the transparency, replicability and accountability of the processes validating fact, truth, accuracy. If AI is incapable by its nature of validating all these, it’s worse than useless–it’s destructive on a system-wide scale.

The evidence of the systemic destruction is already overwhelming. Bogus “scientific papers” are already proliferating at an accelerating rate, making the task of identifying incorrect and fabricated (i.e. hallucinated by AI) data, processes and conclusions impossible due to the scale of the misinformation and the difficulty of identifying the misinformation buried inside superficially legitimate papers.

With both scientific and economic data and analysis now untrustworthy without exceedingly expensive, time-consuming vetting by human experts, where does this leave the “AI will automatically generate superabundance” hype? What’s already clear–but inconvenient–is the mass adoption of inherently flawed AI is undermining the foundations of “value,” however we wish to define it.

And as Mike also points out, this undermining of value has a financial consequence. We all know Gross Domestic Product (GDP) is a superficial, distorting measure of “prosperity,” and the structural distortions of GDP (Waste Is Growth) are amplified by the hidden destruction of transparency, replicability and accountability by AI slop, whether intentional (malicious, deceptive, fraudulent) or as the unavoidable consequence of AI’s core flaw.

These immense hidden costs will not show up in GDP until they collapse the entire house of speculative gambling cards propping up the global economy. Only then will the structural damage being wrought by our increasing reliance on tools that cannot discern the difference between fact and fantasy / fabrication / hallucination become visible.

And by then, of course, the damage will be irreversible without extraordinary costs and sacrifices, sacrifices few will volunteer to bear.

Remember that AI isn’t “thinking,” “understanding” or “making judgments”: AI tools are engines of linguistic automation, not engines of understanding. The simulation is not the thing simulated. AI is not a “mind,” it is a prompt and a probability distribution.

Authored by Mark Jeftovic via BombThrower.com,

Two inexorable realities have come into sharpened focus over the last month or so.

Both are themes we have been exploring and monitoring – one, since practically the very beginning of this service, the other, over the last year or so.

• The first is the unsustainable nature of the global monetary system: we are not unique in calling that out – it’s practically a trope and has been for a long time.

• The other is the existential necessity to win the new arms race – which is less about kinetic weapons now and more about computation, information and 5GW.

In the past, when the Soviet Union put as astronaut into space before NASA, it was a humiliation and a psychological defeat – but the USA arguably still held strategic advantage where it counted at the time, which was here on earth, with more nuclear missiles, tanks and military bases than the USSR.

The US space program kicked into overdrive, and NASA was able to slingshot past the Russians, and over time and across more dimensions, the Soviets never caught back up or retook the lead – in anything.

To this day, Russia’s resurgence onto the world stage – articulated through concepts such as Neo-Eurasionism or “Third Rome” (basically their version of “Manifest Destiny”) – is more than anything, an aspirational framework for “getting up to speed”, while rationalizing their inability to do so in traditionalist, volk-ish trappings.

Their high priest of this quixotic mix, is “Fourth Political Theory” author, university professor and philosopher, Alexander Dugin – whose other titles include “Last War of the World-Island” and – perhaps most tellingly, although least known of his works here in the West – “Katechon and Revolution”.

The word “Katechon” (from the Greek: ὁ κατέχων / τὸ κατέχον which translates loosely as “the Restrainer”) is important in the Russian collective psyche because it contains a massive “tell”.On its surface, it’s supposed to encompass Russia’s “state messianism” and symbolize its opposition to The West – their “Antikeimenos”.

The day of the Russian invasion of Ukraine, Dugin posted on Facebook “Now we are in a war of the spirits. Katechon vs. Antekeimenos”.

Antikeimenos (from the Greek: ὁ ἀντικείμενος) is the term St. Paul uses in Thessalonians 2:4 for the figure of the Antichrist. It appears exactly once in the Greek New Testament, in that single verse. The literal sense is “the one who opposes” or “the one set against”.

And therein lays “the tell” – what the Russian collective psyche is admitting to, and trying to come to grips with, and it is this:

If we reframe the Cold War as the first technological contest between Great Powers, Russia has to confront the fact that they lost – and they’ve never been able to recover from it.

In the contemporary pantheon of international relations and political economy, absolutely nobody today thinks of Russia as a “great power”. When you peel back the ideations of “The Fifth Empire” or “The Soviet Union 2.0”, you get to that underlying underdog mentality – trying to recapture super-power status.

They lost the space race. Then the Cold War, and now they can’t even beat the Ukraine.

That was supposed to be an overwhelming military victory, but the Ukrainians, mainly through wholesale adoption of drone warfare, have managed to give the invaders a rough time of it, even penetrating deep into Russian territory using high-altitude balloons to deliver suicide drones.

Make no mistake, all that financial support from the West aside, the Ukrainians have been able to stave off complete defeat through technological means and because cheap, sophisticated weaponry (drones) completely upended the conventional battlefield.Such are the travails of an erstwhile great power that has lost a technological competition. You can bet today’s incumbents – namely the USA and China – understand these stakes, and neither of them has any intention of losing:

• AI
• Energy
• High Performance Computing (which leads us into)
• The Space Race 2.0
• Quantum Computing

This is why the “catastrophic climate change” narrative has been rather suddenly sunsetted in The West (at least, the non-Euro west): we need more energy, including nuclear – lots, and lots of nuclear.

It’s why White House Asset Management (WHAM) is pumping money into quantum computing companies (including, from our wish list: D-Wave, which we hadn’t yet pulled the trigger on).

It’s also why China has moved further out on the interventionist side of the state capitalism spectrum, with mandated “Capital Reallocation” programs where the government has issued structural directives forcing state-owned pensions, insurance funds, and enterprise pools to funnel trillions of yuan directly into equities, while the state-backed “National Team” continues steady, strategic purchases of domestic ETFs to put a floor under major indices.

The Chinese debt overhang on bad real estate loans is even larger than what we had here in the run up to the GFC, so regulators there are pulling out all the stops to keep the balloon duct-taped together:In early 2026, Beijing quietly abolished enforcement of its strict “three red lines” policy. Developers are no longer required to report monthly data regarding debt-to-equity, cash, and asset metrics, freeing up fresh credit channels.

They’ve backstopped an additional 7 trillion yuan under a new “property project whitelist” mechanism, which extends developer loan maturities by up to five additional years to stave off defaults.

Commercial and state banks are aggressively financed to help local governments buy up unsold, completed housing inventory directly from developers to convert them into subsidized public housing (this is a nominally communist country, so why not).

To top it all off, we’re seeing capital flight restrictions – going so far as to prevent technology transfers to the West via acquisition (we covered last month how Meta’s acquisition of Manus was blocked and reversed by state authorities).

Any rational observer of finance and economics knows that all world economies, including The World Economy, is levitating in mid-air buoyed by stimulus, signal suppression and pure white-knuckled will.

In prior years, when all the financial commentators and contrarians were waiting for this to hit a wall, we all marvelled (at least I did) how the system was kept on the rails at all costs – because too much was riding on it to let rational economics and market restructuring take their course.

That was before AI. Before it became apparent that not being number one in this technological arms race had civilizational consequences, like joining Russia as another “also-ran”.

Once again, the contradictions and distortions that this imperative amplifies are bubbling to the surface.

On one hand – all rational analysis of the market is screaming “overbought”. Practically every financial commentator I came up following is looking at this and making comparisons with the dot-com bubble; the AI high flyers now look a lot like Global Crossing, Nortel, L3, VA Linux before they all imploded.

My X feed is absolutely jam-packed with people posting screenshots of 7-figure trading accounts that were ostensibly amassed in under a year trading HPC, AI, chip makers, memory, and now quantum (again).

ZeroHedge has remarked on the circular nature of the AI economy more than once:

Note that the above-linked article (from which the screenshot came) is a Tyler Durden original, it is not a repost of somebody else’s article.

Tyler has this annoying trait: he’s always early and he’s often right.

Yet it’s possible the man himself buried the lede (from that screen cap):

“The Infinite Money Glitch”

By all rational and financially coherent measures, the equities markets are overvalued, beyond bubble levels and primed for a catastrophic drop on the order of, pick one, 50%, 75%, 90%. Yes. 90%. We’ve been pumping since 2008 folks. Even further if you go back to the beginning of the equities supercycle in 1982.

After the dot-com bust, we were in a bear market for two years. When the GFC finally hit, it was straight down for a good 18 months. When COVID was coming, the banking system was starting to crack up under the hood (the reverse repo situation in late 2019) but when it came unglued in March, it was about two weeks before the monetary bazookas were unleashed and everything reversed hard of the March low.

What happens after that is instructive:

The Regional Banking crisis erupted, and was even larger in nominal terms than the GFC when it came to the amount of assets tied to bank failures. The Fed threw the taper overboard, did a massive liquidity injection and after a failed attempt to pick and choose winners in terms of which banks to save, caved in to public uproar and backstopped everything.

Liberation Day, Japan-ageddon, Israel/Iran/Gaza barely perturb the trajectory.

If you switch out of linear mode for that long-term chart, and go to logarithmic – you should recognize the pattern:

It’s the same as Bitcoin, which is the same as gold during the Weimar Republic and it’s the same signal being broadcast from every one of those charts.

We should acknowledge that the Nasdaq took 15 years to recover from the Dotcom shakeout, which is a long time to be underwater if you bought in at the tippy-top.

But I believe two things have changed since the GFC:

The first is that tech, despite taking the biggest hit, almost by definition when the Dotcom bubble blew, also became the apex asset class from here on out.

If you look at the long-term chart for the Nasdaq, it basically went parabolic for the first half of the equities supercycle, and formed a double-bottom from the Dotcom crash to the GFC

After that it blasted off and has left everything else in its dust:

This makes perfect sense, because tech is the asset class of choice in a world driven by acceleration and tachyosis.

We can’t put Bitcoin in that chart because it’s basically a divide by zero error. But if we take the commonly held, first market price ever for Bitcoin, which was $0.10, it pencils out to an absurd value. Call it 77,719,900% and leave it there.

It’s not uncommon to hear criticisms of Bitcoin that are simply “all it does is follow tech”.

Yeah, no shit. That’s because it is tech.

The other thing I believe about all this, is Raoul Pal’s theory that after the GFC, the world’s central banks got together and made a deal to never let anything like that happen, ever again.

Which means that central bank balance sheets will grow in perpetuity, and stock market will never have a meaningful bear market – for the remainder of the duration of the current monetary system:

That’s from Raoul Pal’s “Everything Code”, it goes on:

• They don’t understand valuations are a function of debasement.

• They don’t understand why technology rises and valuations can keep rising.

• They don’t understand why crypto is being adopted and is the fastest horse in the race.

• They don’t understand why the dollar keeps rising.

• They don’t understand that energy transition is real and is crucial for the world economy.

• They don’t understand why rates won’t remain high.

• They don’t understand why GPT4/AI is the biggest humanity-scale event since the splitting of the atom.

• They don’t understand why this is all so fucking deflationary. They want their sticky inflation. They will not get it.

• They don’t understand why nothing in their world makes sense.

We understand it. Because we know the cheat code, which is:

Put the chart into logarithmic view.

Look at the X axis.

Then own the assets that are outpacing everything else on that scale.

That’s it.

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It is not just one-way attack drones (read JPMorgan report) operating on AI-enabled kill chains that human soldiers have to worry about on the modern battlefield. We have been laying out this story and were among the first to point out that humanoid robots are not only entering factory floors and warehouses, but are also moving toward the battlefield.

San Francisco-based robotics company Foundation Future Industries is developing a “dual-use” humanoid robot called the “Phantom MK1,” designed for heavy manufacturing, logistics, and the military.

The defense angle for the Phantom MK1 is quite simple: replace the human soldier with the robot for close-quarters battle (CQB) operations, including breaching and room-clearing support.

Beyond CQB, a never-before-seen video now shows the Phantom MK1 operating a mobile light mortar system during a live-fire training exercise in Las Vegas, Nevada.

Phantom MK1

To better understand the Foundation’s position, we reached out for comment. The company responded with the following statement:

The US military has backed Foundation in over $73M on grants and contracts to develop their robot to this point.

Although many of the use cases they’ve worked on have been logistics-focused, the ultimate goal has always been kinetic use cases. 

Although drones and UGVs have been promising new robots on the Ukrainian battlefield, humanoids are the only robot being built that promises to interact with the entire fleet and arsenal of human weapons and vehicles. 

Launching mortars and soon breaching doors have become near-term proofs of humanoids moving from logistics to kinetic engagements. 

Watch Phantom MK1

In February, we outlined that humanoid robots would soon move onto the modern battlefield, not just factory floors and warehouses. A little more than a month later, TIME picked up on that reporting. More recently, CNBC followed with a piece titled, “This Trump-linked startup plans to put humanoid robots in the military.”

Foundation co-founder and CEO Sankaet Pathak recently said that a humanoid-soldier arms race is “already happening,” as Russia and China develop dual-use technology.

Phantom MK1 Holding 9mm Pistol 

“Just like drones, machine guns, or any technology, you first have to get them into the hands of customers,” Pathak said.

You’re getting a front-row seat to what the 2030s battlefield will look like (read report).