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Choose One: Housing Is Shelter, Or Housing Is Just Another Asset In A Bubble Economy

Choose One: Housing Is Shelter, Or Housing Is Just Another Asset In A Bubble Economy

Authored by Charles Hugh Smith via Of Two Minds,

This will get massive pushback because it’s true: either Housing Is Shelter, or Housing Is Just Another Asset in a Bubble Economy – it can’t be both. This reality gets pushback because the conversion of housing from shelter into just another asset bubbling higher in a bubble-dependent economy has been so profitable for those inflating the bubble.

The basic pushback goes like this: housing has always been an investment, nothing has changed. This is classic misdirection. This is like saying “stock market options have always been a way to hedge positions” to justify the transition from hedging to extremes of gambling, i.e. zero-day expiration options (ODTE).

Whenever I suggest that housing is being hoarded by the wealthy and corporations as a low-risk asset to park credit-generated capital, I get pushback: no, I’m told, the percentage of housing that’s empty most or all of the year owned by the wealthy and corporations is tiny, as is the percentage of housing owned as short-term vacation rentals (STVRs).

The problem with these claims is they’re based on completely fraudulent / inaccurate statistics. There is no regulatory system that audits whether owners who obtained “owner occupied” mortgages actually live in the dwelling, or whether owners, especially those hidden behind LLCs and other cloaking mechanisms, are “owner occupants” as claimed.

Owner-Occupancy Fraud and Mortgage Performance (Philadelphia Federal Reserve) Occupancy fraud has been suggested as a contributor to the housing bubble. We show it was pervasive and remains present.

In other words, even the most cursory audits find significant percentages of “owner occupied” housing is vacant most or all of the time or is an unregistered short-term vacation rental. Anecdotally, many upper-middle class households own not just vacation / second homes in rural locales but “investment” homes that are empty or they use occasionally in urban areas, which due to high demand / valuations are hoarded because selling them in a bubble economy means the sellers will be unable to buy back into the market in the future.

The “monetize your empty room” AirBnB idea that began the short-term vacation rental market has transmogrified into a monster consuming the housing market in resort locales. Surveys have found that 15% or more of all available housing in resort locales is now absentee-owner short-term vacation rentals, and two-thirds of condominium buyers are out-of-state.

STVRs Have Destroyed America’s Resort Towns

Some argue this doesn’t matter because resort housing tends to be in rural regions with few jobs. It matters to local residents who are priced out. But “investment” housing isn’t limited to resorts; there are an unknown but consequential number of vacant / STVR “investment” housing units in urban areas with jobs and strong demand for permanent housing.

Cities with rent control such as San Francisco and New York have renters who keep their low-cost flat vacant while living abroad. Since the rent-controlled apartment cannot be replaced once it’s surrendered, it makes sense to hoard the rental for future or occasional use. Again, there is no system of auditing who actually lives in a dwelling as a permanent resident, as this is viewed in the US as an invasion of privacy.

(In Japan, local authorities keep close tabs on who is actually living in every dwelling as a matter of course. When we stayed in a friend’s temporarily vacant flat for a few days, officials came to the door to check on who we were.)

The monetary policies of suppressing interest rates and expanding credit have favored the wealthy who have the income to support additional mortgages and the need to park their expanding capital somewhere. Housing is attractive because it’s less volatile than the stock market and offers higher appreciation in a bubble economy than bonds.

Those seeking housing as shelter cannot compete with wealthy households and entities seeking places to park credit-generated capital for income and/or appreciation. In a bubble-dependent economy, there’s no need to go through all the trouble of renting an empty dwelling, as the appreciation alone makes the investment worthwhile. Renting out an “investment” incurs risks and costs that are best avoided – unless the property generates a hefty profit as a remotely managed unregistered short-term vacation rental.

Once again, the pushback is pushback against inconvenient truths that threaten the ownership class that has reaped gains from housing as an asset class in a bubble economy. It’s now evident that large corporate owners of thousands of rental units have used predatory pricing – oops, I mean dynamic pricing – to jack up rents in markets they are dominant players in; once the price point is set higher, small landlords push up their rents to the new “market price.”

In a non-bubble economy, credit is scarce and expensive, and so asset bubbles can’t be inflated as credit inflates. As credit inflates, the pool of money sloshing around seeking a low-risk home for safety and appreciation expands, and this pool sloshes into housing, driving home prices and rents out of reach of those whose income is wages, not wages plus capital-generated income.

Bubbles in housing generate artificial scarcity, scarcity not in the total number of dwellings but in the number of dwellings available and within reach for those seeking shelter, i.e. whatever is left after wealthy households and corporations with access to credit snap up housing as a low-risk place to park capital that offers tax benefits and appreciation.

Housing affordability has reached historic lows.

Housing payments have reached historic highs.

The wealthiest 10% have used their income and credit to bid up assets which bubble higher in bubble-dependent economies.

So here’s the truth: we can choose housing as shelter or housing as an asset in a bubble economy, but we can’t choose both. Housing as an asset in a bubble economy pushes housing out of reach of those seeking shelter.

And of course there’s pushback against the truth that ours is a bubble-dependent economy. For a definitive answer, let’s see how well the economy is doing after all the credit-asset-speculative bubbles pop and decline back to their starting point.

My book Investing In Revolution is available at a 10% discount ($18 for the paperback, $24 for the hardcover and $8.95 for the ebook edition). Introduction (free)

Tyler Durden
Sun, 06/07/2026 – 13:25

100 Day Mark: Iran Threatens Renewed Attacks On US-Israeli Bases, Citing IDF Escalation In Lebanon

100 Day Mark: Iran Threatens Renewed Attacks On US-Israeli Bases, Citing IDF Escalation In Lebanon

Summary

  • Sunday is day 100 since President Trump launched Operation Epic Fury.
  • Ghalibaf warns after IDF escalation in Lebanon: US & Israeli bases, assets in region are ‘legitimate targets’.
  • Talks stuck on unfreezing assets: “Twenty-four billion dollars is not much for America if he wants to reach an agreement with Iran,” Iranian Gen. Mohsen Rezaei told CNN. “This is our own, not America’s money.”
  • Defying Washington, Iran has been collecting $1.5 million to $2 million per vessel passing through the Strait of Hormuz (Fars).

US x Iran permanent peace deal by June 15, 2026?
Yes 7% · No 94%
View full market & trade on Polymarket

*  *  *

US, Israeli Bases are ‘Legitimate Targets’: Iran Issues Fresh Threat

On Sunday Tehran ramped up its threats to renew ballistic missile and drone attacks on Israel and America’s Gulf allies, describing that the Israeli military’s ongoing deadly attacks on Lebanon could obliterate the extended ceasefire with the US

Iranian Parliament Speaker Mohammad Bagher Ghalibaf announced on X that the ongoing American naval blockade against the Islamic Republic, with Washington having given a green light to Israel for its attacks on Hezbollah and Lebanon, turns both countries’ bases and assets in the region into “legitimate targets.” The last days even saw a Lebanese general and other officers killed by IDF airstrike in south Lebanon.

“They neither abide by a ceasefire nor believe in negotiations,” Ghalibaf wrote.

Below is the latest Bloomberg summary on where stalled negotiations stand… to be expected it cites “little progress”:

“The US and Iran appear to be making little progress toward an interim deal to end the war Washington and Israel began 100 days ago, as fresh attacks pile pressure on a fragile ceasefire,” Bloomberg writes, and continues:

  • The past week saw the worst flare-up in tensions since the truce started around April 8.
  • Negotiations between Washington and Tehran are bogged down over the fate of billions of dollars of frozen Iranian assets and a parallel conflict between Israel and Iran-backed Hezbollah in Lebanon.
  • US Central Command said early Sunday it downed two Iranian attack drones that threatened international maritime traffic in the Strait of Hormuz, the waterway crucial to global energy exports that’s also been at the heart of discussions.
  • On Friday, six ballistic missiles fired at Bahrain and Kuwait were intercepted and another failed to reach their intended target, hours after four unmanned craft headed to Hormuz were shot down, Central Command said. The US struck Iranian coastal surveillance radar sites in Goruk and on Qeshm Island, it added.

Talks Stuck on Unfreezing Iran’s Assets

The U.S. and Iran remain stuck in preliminary talks to end the war, with the main obstacle being Tehran’s demand for access to billions of dollars in frozen assets and the Trump administration’s refusal to provide upfront cash or broader sanctions relief. Tehran is seeking about $12 billion upfront and $24 billion during a proposed 60-day negotiation window.

“Twenty-four billion dollars is not much for America if he wants to reach an agreement with Iran,” Gen. Mohsen Rezaei, a senior adviser to Iran’s top official, told CNN on Friday. “This is our own, not America’s money.”

For the Trump administration, releasing frozen funds for Tehran is optically displeasing because the president spent years blasting the Obama administration over the $1.7 billion Iran payment tied to the 2015 nuclear deal, and later criticized the Biden administration’s move to allow Iran access to $6 billion in assets during a prisoner swap.

The U.S. government estimates that Tehran has $100 billion in inaccessible assets, mostly oil revenue trapped abroad, including funds in China, Qatar, Oman, and Iraq.

Iran FM Complains of ‘Moving Goal Posts’

On Sunday, Iranian Foreign Ministry spokesman Esmaeil Baghaei spoke with CNN’s senior international correspondent Frederik Pleitgen about the ongoing negotiations with the U.S.

Baghaei stated, “The main problem of negotiating with this administration is that you have to face so many changing positions, moving the goal posts, different statements, contradictory remarks by different officials, so it makes the whole process very cumbersome.”

He outlined one of the main problems is that “the Americans must understand that they have to recognize Iran’s rights,” including its right to peaceful nuclear enrichment under the international non-proliferation treaty.

“At the same time, when they are talking about our blocked assets, they’re not going to give us any concession,” he said. CNN reported earlier on Sunday that the US plans to allow Iranian assets to be used for rebuilding projects in Gulf countries impacted by the war, according to a source close to US Treasury Secretary Scott Bessent.

Baghaei added that the US must “simply stop their sanctions” and “need to let Iranian assets be released and be available for the Iranians.”

Iran Implements Toll System as US Balks

Beyond US-Iran talks, IRGC-linked Fars News reports that Iran has been collecting $1.5 million to $2 million per vessel passing through the Strait of Hormuz.

Fars said the payments are deposited into Iran’s treasury under the budget law and directed toward designated spending areas. Some payments are reportedly settled not in cash but in USDT/Tether or through barter arrangements.

Top Overnight Headlines (courtesy of Bloomberg):

US-Iran Conflict Flashpoints

  • US Central Command shot down two Iranian attack drones over the Strait of Hormuz early Sunday that threatened international maritime traffic
  • US forces intercepted multiple Iranian missiles and drones in the Persian Gulf late Friday and responded with attacks on radar sites in Iran
  • Six ballistic missiles fired by Iran at Bahrain and Kuwait were intercepted, with a seventh not reaching its intended target
  • US attacked Iranian coastal surveillance radar sites in Goruk and on Qeshm Island early Saturday
  • Iran condemned US attack on its radar and coastal surveillance facilities as a clear violation of the April 8 ceasefire

Peace Negotiations Status

  • The US and Iran appear to be making little progress toward an interim deal to end the war 100 days after it began
  • Negotiations are bogged down over the fate of $24 billion in frozen Iranian assets
  • Pakistan’s interior minister was in Tehran on Sunday in a fresh bid to restart negotiations between Iran and the US
  • Iran’s Baghaei said the US needs to let Iranian assets be released and must stop their sanctions
  • The Trump administration is seeking to steer Iranian assets toward helping US allies in the Persian Gulf rebuild from damage inflicted by Tehran

War Damage and Infrastructure

  • About 7,000 megawatts of Iran’s power-generation capacity was damaged in the war, with some 2,500 megawatts restored to service so far
  • Despite 4,000 megawatts of damaged power plant capacity remaining offline, there are currently no plans to implement planned blackouts this summer
  • Kuwait’s airspace was temporarily closed for two hours early Saturday as a precautionary measure due to Iranian missile and drone attacks

Economic Impact

  • Italy extended a fuel tax cut until July 3, cutting pump prices by €0.05 per liter for diesel while keeping it unchanged for unleaded fuel
  • India raised prices of domestic cooking gas for the second time since the Iran war started, with a 14.2-kilogram LPG cylinder increasing by 29 rupees
  • Container shipping spot rates from Asia to northern Europe rose 27% to $3,649 as of Friday, while rates to the US West Coast increased 20% to $3,933
  • Crude oil remains below $100 a barrel despite the Strait of Hormuz being effectively blocked for over three months, defying forecasts for prices as high as $200

Previous US-Iran Wrap

Institutional Market commentary:

  • Goldman analyst Johann Cohen: Markets appeared to suffer from headline fatigue, alongside fading expectations of any near-term agreement between the US and Iran.
  • UBS analyst Zeynep Akkok: European equities are resilient, with SX5E trading off earlier lows and price action is largely unchanged into the weekend as markets pause after recent moves. The focus remains on US-Iran negotiations, with US President Trump flagging talks are in their final stages, but the continued lack of tangible progress caps upside. The tone remains constructive, but increasingly conditional on delivery.
  • Goldman analyst Chris Hussey: But as we saw back in 2021, global supply chain shortages are plentiful. The prolonged blockade of the Strait of Hormuz is still cutting off about 10% of the world’s oil supply with a bigger impact on things like jet fuel, diesel, and aluminum.

Global Supply Chain:

Energy Market:

Tyler Durden
Sun, 06/07/2026 – 12:55

‘I Could’ve Kept It That Way’: Trump Admits The Inflation Is His Choice – For A War That ‘Isn’t A War’

‘I Could’ve Kept It That Way’: Trump Admits The Inflation Is His Choice – For A War That ‘Isn’t A War’

In a wide-ranging interview in which he touted record stock prices and rebranded weapons-grade uranium as “nuclear dust” (and then stormed out), President Donald Trump said the quiet part out loud: the prices Americans are paying at the pump are not an accident. This was all his decision.

I could’ve kept it that way,” Trump told NBC’s Kristen Welker in an interview taped in a rain-battered Wisconsin barn before he was set to appear at a farming industry roundtable discussion – describing the cheap gasoline everyone enjoyed during his first few months back in office. “But I said, I have to take a little bit of a turn … We’re going to have higher gasoline. We’re going to have a little higher fertilizer, et cetera, et cetera. But I’m going to get rid of a nuclear weapon in the hands of very dangerous people.

“The farmers love me”

Asked about farmers who can no longer afford fertilizer – seventy percent of them, by Welker’s count – Trump didn’t push back, but instead changed the subject to loyalty.

“I had a choice to make. I could keep it going. The farmers were doing great. Fertilizer was very cheap. Everything was cheap. Gasoline was very low. Everything was very low. I could’ve kept it that way. But I said, I have to take a little bit of a turn. The farmers are going to understand it better than anybody.

Trump leaned on his heavy support in the heartland. “I love the farmers, and the farmers love me. The farmers trust me,” he said, pointing to the $28 billion in trade-war bailouts he cut growers in his first term. So – the economic cost of the US-Israeli war on Iran is something that Americans should be willing to eat for him.

And again, promises of utopia: 

“And when we have a completion, you will see things like you’ve never seen. The oil will go down.

It’s all coming down as soon as the war’s over,” he promised of gas and diesel. When Welker pressed for a timeline, he bristled – “No, but you keep talking about speed” – and reached again for Vietnam.

The public is less patient: an Economist/YouGov survey this week found sixty-eight percent of adults want a deal to end the war as fast as possible, including fifty-five percent of his own 2024 voters. They are being asked to finance a known cost today against a promised windfall on an unscheduled tomorrow, on the word of a president whose case rests on never having to name the day. That is not an economic argument. It is a leap of faith with a fuel surcharge.

Blame The Fed

And of course, it’s the Fed’s fault for not aligning with Trump’s agenda. Given whispers that the institution is actually considering hiking rates in response to a strong jobs report, Trump preemptively branded the move as a crime against prosperity

“There’s no reason to raise interest rates … What they do is when they raise interest rates, they try and kill success. I don’t want to kill success. We should actually lower interest rates.”

And then – in what should give any bondholder pause: “Growth is the greatest thing you can have, and growth does not cause inflation.” No, apparently it takes braking a core campaign promise to personally engineer higher prices. Meanwhile, new Fed chair Kevin Warsh gavels his first meeting later this month, and Trump was careful to say he would not “have a big influence on him” – except, he clearly spelled out his expectations.

I would like to see rates get lower,” he said, “because we could build this into the greatest machine that the world has ever seen, but you can’t do that when everybody immediately raises interest rates.”

Meanwhile, Trump insists Iran can be starved into surrender… 

They tried a blockade, and now we blockaded them,” he said of Iran. “And, as you know, they’re losing $400-500 million a day. It’s not sustainable for them. They have an economy that’s shot, in addition to everything else.” The Strait of Hormuz carries roughly a fifth of the world’s seaborne oil; and the valve Trump is twisting shut to strangle Tehran is the same valve lifting fuel costs in Des Moines. The blockade he is celebrating and the inflation he admitted choosing are directly linked.

Asked what happens if the talks fail, Trump did not hedge: “Either way, we win.” Asked about the highly enriched uranium still buried in Iran, he offered a branding note.

“The official name is highly enriched uranium. And I call it nuclear dust because it seemed to be nice, and everyone understands it better, and it’s sort of cute, and people picked it up.”

He assured Welker the sites are under constant watch from orbit: “If anybody walked there, if you walked over there, I would be able to read your first name on your lapel. And these are cameras up in space. It’s pretty amazing technology. Space Force.” He claimed, in passing and without elaboration, that the United States “took over Venezuela in a matter of minutes.” He put Iran’s surviving arsenal at “maybe 21-22% of their missiles … It’s a lot of missiles, but it’s not what it was when we first attacked.” 

No New Wars (because this isn’t a war!)

Trump was elected in large part on three words he repeated from 2015 onward: no new wars. 

Welker asked the obvious question – had he broken that promise? Trump said ‘no,’ but then insisted that he had never made the promise in the first place.

First of all, I didn’t guarantee no war,” Trump said. “Why would I have built the strongest military in the world?” When Welker pointed out that he had said it “over and over again,” he did not relent. “So when you say I promised, I didn’t promise anything. I don’t like these endless wars. This is not an endless war.

For the anti-interventionists who treated that pledge as a covenant – the ones who forgave a great deal because at least he would not start the next Iraq – this is the moment the bill came due, narrated by the man who ran it up. He is now prosecuting two wars at once. He will not call either one a war. And his defense, start to finish, is not strategic. It is linguistic.

Not a war, a “military exercise” for “regime change”

Trump then leaned heavily on semantics, insisting this isn’t a war…

I call it a military exercise because people would rather have it called that,” he said early on. “It’s not a big war for us. It’s not.

Pressed on the naval blockade of Iran – which is, under international law, itself an act of war – he simply declined to engage the category. “I don’t consider that a war, but if you want to define it as such, I guess you can.” Asked directly how he would define it, he offered the cleanest statement of the whole doctrine: “I don’t define it at all. I don’t think about it. I just do what I have to do.” 

Describing the leadership Tehran has installed after the killing of the old Supreme Leader and his lieutenants, Trump volunteered the word the entire post-Iraq right swore off: “And you could say it’s regime change actually because these are very different people. I find them to be more rational, very smart.” – said the guy who built his brand on mocking the people who gave the country Iraq and Libya. And not in one country but two: in the same interview he claimed the United States “took over Venezuela in a matter of minutes.” 

Thirteen dead – better than Vietnam! 

Trump’s proof that it is all going well is a body count. “We’ve had 13 people killed,” he said, more than once, “and that includes two wars. That’s Venezuela, and that’s Iran.” He means it as triumph: fewer dead than Vietnam, than Iraq, than any war you can name. But for the people who took “no new wars” at face value, the framing collapses on contact. Thirteen Americans are dead in two conflicts the president started and refuses to call wars, sold under the banner he insists makes it acceptable: “You know, it’s America first. I’m doing our country a service.”

That is the real breach, and it is worse than a broken promise. You can hold a man to a promise. What you cannot do is hold him to a war he will not admit is a war, or a pledge he insists he never made. The Wisconsin barn produced no policy reversal and no apology. It produced something more useful to understand: a president who has discovered that the surest way to keep a promise is to deny, on camera, that you ever gave it.

Doing The World A Service

At the end of the day, Trump had no choice:

“I had to stop a country, very powerful, very dangerous country, from having a nuclear weapon because they’d use it. They’d blow up the world. They’d blow up the Middle East. They’d blow up Israel. They’d come here. They’d blow up Europe. They’re nuts, okay? They’re crazy people. I deal with them. And very high-strung people. Little crazy. And – I get along with them. I like them. But you don’t want to let them have a nuclear weapon. And I’m doing the world a service, but I’m doing our country a service. You know, it’s America first. I’m doing our country a service. Nice rain.”

Indeed… 

Trump then called Welker and the MSM ‘crooked’ and stormed out – which, hey, we can’t argue with! 

ZeroPointNow
Sun, 06/07/2026 – 12:15

Americans’ Average Monthly Mortgage Payment Tops $2000 For The First Time Ever

Americans’ Average Monthly Mortgage Payment Tops $2000 For The First Time Ever

Authored by Michael Snyder via The Economic Collapse blog,

U.S. households are being financially squeezed at a level that we have never seen before. I have often said that we are in a long-term cost of living crisis that never seems to end, and that is not an exaggeration at all. Just about everything has been getting more expensive in recent years, and as a result our standard of living has been going down. In many areas of the country, you now have to earn six figures just to live a basic middle class lifestyle. The numbers that I am going to share with you in this article may be hard to believe, but they are very real. Inflation has been out of control for many years, and hard working American families are being absolutely crushed.

For the first time in U.S. history, the average monthly mortgage payment now exceeds $2,000

Homeowners faced a sticker shock at the end of 2025 as the average monthly mortgage payment topped $2,000 for the first time—a historic milestone reflecting the combined pressure of high home prices and elevated interest rates.

In the fourth quarter of last year, the average payment for existing mortgage holders climbed to $2,005, representing a striking 44% surge compared to 2021, according to the latest quarterly outstanding mortgage report from the Realtor.com® economic research team.

In other words, the typical homeowner saw their monthly mortgage payment jump by more than $600 in just three years, an eye-watering surge.

Take another look at those figures.

All along, federal bureaucrats have been feeding us numbers that show that the inflation rate is very low, but the average monthly mortgage payment has risen by 44 percent just since 2021.

Needless to say, someone is not telling us the truth.

But that isn’t even the worst part.

Today, what the average American family is paying for health insurance each month is even higher than the average monthly mortgage payment…

The numbers don’t lie. The average American family now pays over $2,200 a month for health insurance; surprisingly, that’s more than the average monthly mortgage payment of $2,000. Let that sink in. Keeping a roof over your head costs less than keeping your family covered.

That is not a market failure. That is a system rigged by liberals and government bureaucrats designed to benefit corporate giants at the expense of everyday Americans. Premiums are soaring, and insurers are cashing in. It needs to stop.

Americans are noticing. A recent poll found that a staggering 90 percent of Americans say health insurance companies have too much control and should be broken up, with 74 percent strongly agreeing. The overwhelming majority of Americans know there is a problem. They are screaming for justice.

That is outrageous.

Is there anyone out there that wants to attempt to defend how expensive health insurance has become?

Our system is so broken, and the politicians in Washington have given up on trying to fix it.

Meanwhile, pretty much everything else is becoming more expensive too.

And thanks to the war in Iran, American households have had to shell out an extra 100 billion dollars in just three months…

The war in Iran has cost US households $100 billion in three months, Moody’s Analytics says.

Now in its fourth month, the conflict has cost nearly $750 per household. The increased cost to consumers has mostly been felt in energy prices, but the inflation picture continues to deteriorate the longer the war drags on without a resolution in sight. What’s more, Moody’s says that tailwinds for household like Donald Trump’s tax cuts have been offset by war-fueled cost increased.

This is money that is coming directly out of your pockets.

The rising cost of gasoline alone has sucked an extra 400 dollars out of the typical U.S. household…

According to researchers at Brown University’s Watson School of International and Public Affairs, Americans have paid an additional $51.7 billion in gasoline and diesel costs since the conflict began on February 28, equivalent to nearly $400 per household. And Moody’s Analytics, in findings shared with CNBC, puts this figure even higher, at $450.

There is no end in sight for the crisis in the Middle East, and that means gasoline prices are likely to go significantly higher.

Commercial oil inventories are being rapidly depleted, and the Strategic Petroleum Reserve is “dropping toward levels not seen since the 1980s”

America’s emergency oil reserve is dropping toward levels not seen since the 1980s, as the United States rapidly drains its supplies to stabilize global energy markets rattled by the war with Iran.

According to the latest report from the Energy Information Administration (EIA), the U.S. has 365.1 million barrels of oil sitting in the Strategic Petroleum Reserve (SPR) in the week ending May 22, compared to 374.2 million a week prior and down by over 50 million barrels since the conflict began on February 28.

The price of oil has a direct impact on prices for just about everything else, and so that is really bad news.

As ordinary Americans are being squeezed harder and harder, household debt has been rising and the credit card delinquency rate has spiked to a very alarming level

According to data released by the New York Fed in May, total U.S. household debt climbed to an all-time high of $18.8 trillion in the first quarter of 2026. Much of this is housing debt, and credit card balances dropped slightly over the period, but the rising total has coincided with an increase in late payments.

The percentage of credit card balances at least 90 days delinquent reached 13.1 percent in the first quarter, up 0.4 percent from the previous one and reaching its highest rate in 15 years.

Millions upon millions of Americans are working as hard as they can and it still isn’t enough.

To many people, it just seems like there is no way that they can win, and so many are choosing to simply drop out of the game.

In fact, one out of every three American men are no longer in the workforce at all

The number of American men participating in the workforce has fallen to one of its lowest levels in nearly two decades, according to new federal labor statistics.

Just 66 percent of men age 20 and older were employed or actively seeking work as of April, according to data released earlier this month by the US Bureau of Labor Statistics. That figure has dropped sharply from 73 percent in 2006 and now sits near levels last seen during the fallout from the 2008 financial crisis.

The numbers mean roughly one in three American men are no longer in the workforce.

This is what a crumbling economy looks like.

Only 66 percent of American men that are at least 20 years old are working.

How low does that number have to drop for us to admit that we have a historic crisis on our hands?

I have heard from so many readers that are feeling more financial stress right now than they ever have in their entire lives.

That isn’t a coincidence.

Decades of incredibly foolish decisions have resulted in a sl0w-motion economic decline that has really started to pick up speed in recent years.

Now the pain is beginning to feel like it is unbearable, but the truth is that our problems are only going to intensify from here.

Michael’s new book entitled “10 Prophetic Events That Are Coming Next” is available in paperback and for the Kindle on Amazon.com, and you can subscribe to his Substack newsletter at michaeltsnyder.substack.com.

Tyler Durden
Sun, 06/07/2026 – 11:40

Short-Term Bitcoin Holders Are Realizing Their Largest Losses On Record; Most Oversold Since 2018 Collapse

Short-Term Bitcoin Holders Are Realizing Their Largest Losses On Record; Most Oversold Since 2018 Collapse

After this week’s bloodbath

Bitcoin is now flashing its most oversold signal since 2018, raising the odds of a relief rebound toward $70,000 in the coming weeks.

The extremely oversold reading followed a roughly 30% decline in BTC over the past month, as geopolitical riskshigher oil pricesfading hopes for a 2026 Federal Reserve rate cut, and panic over Strategy’s latest Bitcoin sale weighed on sentiment.

In addition, there was some online chatter seems to speculate that retail investors may be selling crypto to chase the biggest IPO ever.

The Elon Musk-owned rockets, satellite and AI company SpaceX is selling up to 30% of its record $75 billion offering straight to retail investors through Robinhood, Fidelity and Charles Schwab, more than three times the slice a typical IPO sets aside for individuals.

The roadshow opened Thursday already oversubscribed, with more orders than shares on offer, Bloomberg reported. It is offering shares at a $1.8 trillion valuation.

Bitcoin fell roughly 16% over the same timespan and briefly traded below $60,000 before recovering to around $61,000.

Oversold readings this extreme often appear near seller-exhaustion zones where short-term buyers begin positioning for a relief rebound.

In 2018, the collapse was triggered in large part by the SEC’s regulatory crackdown on ICOs, announcing its first civil penalties against Paragon and CarrierEQ/Airfox. But, the 2018 bear market was already underway due to the bursting of the 2017 ICO bubble, regulatory uncertainty (China bans, etc.), exchange hacks, and fading retail hype. November was more of a capitulation phase than a new shock.

In 2020, Bitcoin’s RSI dropped to around 15.56 before BTC rebounded by about 50%, helped by the Federal Reserve’s emergency shift to near-zero interest rates and large-scale bond purchases. 

In February 2026, for instance, BTC’s daily RSI dropped to around 15.86 while price held above the $60,000 support area. The signal preceded a nearly 30% recovery toward $82,850.

Following bitcoin’s worst week in two years, Strategy(MSTR) Executive Chairman Michael Saylor published a framework on X, arguing that the Bitcoin community is evolving into four distinct ideological camps.

As CoinDesk reports, rather than viewing these groups as competitors, he presents them as complementary forces that will collectively shape bitcoin’s future.

  • The first group, Bitcoin Maximalists, sees Bitcoin as the ultimate monetary breakthrough. They believe bitcoin has already solved the problem of digital scarcity and offers superior property rights, protection from inflation, and economic empowerment. Their focus is conviction: bitcoin is not one crypto asset among many, but the dominant digital monetary network.

  • The second group, Bitcoin Capitalists, views Bitcoin as a form of digital capital that should be integrated into the global economy. They support corporate treasury adoption, institutional custody, bitcoin-backed securities, lending markets, and broader financial infrastructure. Their goal is to expand bitcoin’s reach by embedding it into existing economic systems rather than replacing them.

  • The third group, Bitcoin Technologists, focuses on improving the protocol. They argue that Bitcoin must continue to evolve to address challenges in scalability, privacy, usability, security, and future threats such as quantum computing. While they support innovation, Saylor notes that changes to bitcoin’s base layer must be approached cautiously to avoid unintended consequences.

  • The fourth group, Bitcoin Fundamentalists, prioritize protecting bitcoin’s original principles: decentralization, self-custody, immutability, censorship resistance, and individual sovereignty. They are wary of excessive institutional influence, financialization, and protocol changes that could compromise Bitcoin’s core characteristics.

Saylor’s central argument is that Bitcoin needs all four perspectives. Maximalists provide conviction, Capitalists drive adoption, Technologists ensure long-term resilience, and Fundamentalists safeguard the protocol’s integrity.

Saylor argues that Bitcoin’s most successful path lies in a balance among these four forces.

As CoinTelegraph reports, Bitcoin has fulfilled two of three key conditions to spark the next BTC price “rally,” new analysis says.

Bitcoin price comeback hinges on US, Korea demand

Bitcoin whale traders are laying the foundations for BTC price relief, even as BTC/USD plumbs two year lows.

In an X post on Friday, trader CW confirmed that Bitcoin whales on both Hyperliquid and Bitfinex are signaling a market rebound.

BTC/USD long positions on Bitfinex. Source: CW/X

CW notes that Hyperliquid whales have adopted a “bullish stance” on the market, while on Bitfinex, long positions have tailed off. The latter is a classic sign that an uptrend is due next.

“What remains is for the Kimchi Premium and Coinbase Premium to turn positive,” he commented.

The Coinbase Premium is the difference in price between Coinbase’s and Binance’s BTC/USDT pairs and has been mostly negative in 2026.

Bitcoin Coinbase Premium Index. Source: CryptoQuant

A negative premium reflects weak US demand, while the Kimchi Premium monitors the South Korean exchange sector.

Once demand returns across the board, Bitcoin has a better chance of reentering a sustainable uptrend.

CW acknowledged that the Kimchi Premium has already “decreased significantly” versus earlier in the week.

Bitcoin starts its latest “bottoming out” phase

As Cointelegraph reported, consensus overall favors a macro bottoming phase playing out for BTC/USD next.

The week has seen the pair touch a key bear-market trend line in the form of its 200-week simple moving average (SMA) — another essential ingredient in a bottom formation.

“Bitcoin has only just started deviating below the 200-week SMA,”  trader and analyst Rekt Capital emphasized to X followers on Friday.

“The significance of this is that historical Bear Market Bottoming out formations have started to develop via such deviations.”

BTC/USD one-week chart with 200SMA. Source: Rekt Capital/X

Earlier, trader Leviathan described BTC price action as copying the 2022 bear market “almost perfectly.”

Additionally, CoinTelegraph notes that short-term bitcoin holders are realizing their largest losses on record, according to Checkonchain data cited by crypto analyst Scott Melker.

The short-term holder realized profit/loss ratio has dropped to a new all-time low, falling below levels seen in previous Bitcoin drawdowns.

Bitcoin short-term holder realized profit/loss ratio vs. price. Source: Checkonchain

The metric tracks whether recent buyers are selling at a profit or loss. A deeply negative reading means newer holders are exiting below their cost basis, signaling panic selling.

Melker also noted that roughly 5.3 million BTC held by long-term holders is now underwater, above the post-FTX peak and the highest level since the March 2020 COVID crash.

Similar stress has appeared near past capitulation zones. Bitcoin bottomed near $15,500 after FTX before rallying roughly 690% to around $126,000 in 2025. After the COVID crash, BTC rose about 1,700% from $3,800 to nearly $69,000.

“Sentiment has tracked price almost perfectly,” Melker said, adding:

“Traders were euphoric at the May peak, then hit peak despair on June 3. That’s usually when the bottom is close. Usually.”

And finally, bitcoin bears piled aggressively into short positions as BTC price slid to $60,000, raising the question: Will the $2.6 billion in new short leverage lead to an upside squeeze?

The Bitcoin (BTC) crash to $61,100 on Friday wiped out $335 million in leveraged long positions. However, after a 21% decline in Bitcoin’s price, bulls might have set a perfect trap as negative market sentiment intensified. Bearish positions built up heavily between $63,000 and $66,000, setting the stage for a potential $2.6 billion short squeeze.

Estimated cumulative Bitcoin liquidation at major exchanges, USD. Source: CoinGlass

Estimated liquidations for a further 8% drop in Bitcoin to $57,000 from $62,000 stand at $1.2 billion. In contrast, a rally to $66,000 would put $2.6 billion of short positions at risk. This potential squeeze might provide enough fuel to revive buyer confidence following a record-breaking 13-day streak of net outflows from spot Bitcoin exchange-traded funds (ETFs).

US-listed spot Bitcoin ETFs daily net flows, USD. Source: SoSoValue

The minor $3 million net inflow on Thursday could represent a temporary breathing room after 15 days of selling that drained $5.1 billion. It remains too early to conclude that momentum has officially flipped in favor of the bulls. Ultimately, if bears kept their leverage low and played conservatively, the actual threat of a massive short squeeze might be minimal.

Bitcoin perpetual futures annualized funding rate. Source: Laevitas

A neutral funding rate typically ranges between 6% and 12%, with longs paying to keep their positions open. The current negative 2% Bitcoin perpetual futures funding rate suggests growing confidence among bears. Thus, even if it takes time for Bitcoin to reclaim the $66,000 level, bulls have fully deleveraged, reducing downside risk.

Nasdaq 100 futures (left) vs. Bitcoin/USD (right). Source: TradingView

Bitcoin has severely underperformed the Nasdaq 100 index, but the tech sector is beginning to display weakness after Broadcom (AVGO US) closed down 12.6% Thursday, erasing $280 billion in market value. The company trimmed its AI chip sales forecast for the second half of 2026, putting investors on alert.

Impact of the tech sector IPOs and Strategy’s 32 BTC sale

Other prominent names in the AI sector also felt the impact. Micron (MU US) traded down 7.8% while Arm (ARM US) dropped 4.5%. With highly anticipated IPOs from SpaceX, Anthropic, and OpenAI in sight, investors likely opted to raise cash ahead of those offerings. Analysts claim this liquidity drain also contributed to Bitcoin’s recent weakness.

Source: X/dgt10011

Jeff Park, partner at ParaFi Capital and Bitwise advisor, argues that the AI sector is draining money from other investments as the market becomes a “hot ball of money” that everyone suddenly “has to own”. However, Park reminds that once this period of AI mania blows off, capital will eventually rotate back to Bitcoin as its discounted valuation works in its favor.

Regardless of whether Bitcoin’s weakness stems from AI sector hype, excessive confidence from bears poses a major risk once spot Bitcoin ETF inflows pick up or the fear surrounding a recent 32 BTC sale from Strategy (MSTR US) dissipates.

A rally back to $66,000 might seem unlikely at first glance, but a sudden short squeeze could quickly shift momentum in favor of the bulls.

Tyler Durden
Sun, 06/07/2026 – 09:55

Germany’s First F-35 Stealth Fighter Moves Closer To Service With Key Engine Installation

Germany’s First F-35 Stealth Fighter Moves Closer To Service With Key Engine Installation

Authored by Sujita Sinha via Interesting Engineering,

Germany’s first F-35A fighter jet is now closer to delivery after its engine was installed during final assembly, according to Lockheed Martin. This milestone shows steady progress on one of Germany’s biggest defense modernization efforts since the Cold War.

Germany’s first F-35 reaches a key production milestone as its powerful F135 engine is installed.Lockheed Martin Europe/X

Lockheed Martin Europe posted the update on social media, describing the engine installation as “another key production milestone on the path to delivering advanced 5th Gen capability for Germany.”

The company shared photos of the aircraft on the assembly line as workers installed the Pratt & Whitney F135 engine. Now that the engine is in place, the jet will move on to final testing before its first flight and handover to the German Air Force.

Powerplant Transforms Aircraft Into Operational System

Germany’s first F-35 uses the Pratt & Whitney F135, which is the most powerful engine in any Western fighter jet today. It produces about 43,000 pounds of thrust with afterburner and is a key part of the jet’s design.

The F135 was made specifically for the F-35 and cannot be swapped for another engine. Besides providing power, it also helps the jet stay stealthy. Engineers shaped the exhaust nozzle and air intake to lower radar visibility from different directions.

Installing the engine is a major step in final assembly because it marks the change from a finished airframe to a working combat jet. After the engine is in, technicians start checking how the propulsion system works with the jet’s controls, sensors, and software.

Berlin’s Response To A Changing Security Environment

Germany decided to buy the F-35A soon after Russia began its full invasion of Ukraine in February 2022. The F-35A will replace the Luftwaffe’s old Tornado jets, which have been used for NATO nuclear-sharing missions for many years.

As part of NATO, Germany keeps aircraft and trained pilots ready to deliver U.S. nuclear weapons if needed. With the Tornado nearing retirement, German officials looked for a replacement that could handle future missions.

The F-35A, which takes off and lands like a regular jet, became the top choice for its stealth, survivability, and certification for nuclear missions. German leaders found that no European jet matched these features for the job.

Multi-Billion-Dollar Investment In Future Air Power

Germany has ordered 35 F-35A jets for about $8.4 billion. The deal covers more than just the planes – it also includes pilot training, simulators, logistics, weapons integration, and the infrastructure needed to run the fleet.

This purchase puts Germany in a growing group of European countries that have joined the F-35 program. The Netherlands, Norway, Denmark, Belgium, Italy, Poland, Finland, and Switzerland have all either received or ordered the jet.

As more European countries use the F-35, NATO is shaping its future air combat plans around this common fifth-generation jet. Using the same aircraft makes training, maintenance, and joint missions easier.

Next Steps Before Delivery

The engine was installed following the usual steps at Lockheed Martin’s F-35 production line in Fort Worth, Texas. After installation, the jet undergoes additional system checks, fuel testing, and ground runs to ensure everything works properly.

Next, engineers check how the engine works with the jet’s software and flight systems before allowing flight tests. Once these steps are done, the jet can be accepted by the customer.

For the Luftwaffe, acquiring the F-35A will give it new capabilities that Germany’s current fighter jets do not have. The Eurofighter Typhoon and Tornado can handle air combat and strikes, but neither was built to be stealthy.

The F-35’s stealthy design allows it to fly in heavily defended airspace and makes it harder for enemy radar to detect. As advanced air defenses spread, this feature is expected to be key in Germany’s future military plans.

Tyler Durden
Sun, 06/07/2026 – 08:45

Europe 2.0, Beyond Brussels: The End Of The European Union As We Know It

Europe 2.0, Beyond Brussels: The End Of The European Union As We Know It

Authored by Frank-Christian Hansel via American Greatness,

Europe has reached the end of an era. Not the end of its history, but the end of its false form. For decades, the European Union served as the great substitute project of a continent that no longer dared to think politically. It promised peace without power, order without a people, unity without roots, and prosperity without cost. That was its founding lie, and it was a lie from the very beginning.

Political order does not grow out of procedural routines, commission papers, or moral self-incantation. It grows out of peoples, interests, borders, loyalties, and the willingness to defend what is one’s own. Legitimate authority rests on a people and its consent, not on an apparatus and its expertise. That older idea—that government draws its life from the governed rather than from the competence of its administrators—is precisely what Brussels has spent two generations trying to administer away.

That is why today’s EU is not the high point of European history but its bureaucratic state of exhaustion. It is too centralized to be free and too artificial to be binding. It commands an immense body of rules and possesses no sustaining political soul. It has institutions, but not the kind of historically grown legitimacy that holds a community together across generations.

And so it answers every crisis with the same reflex: more centralization, more redistribution, more standardization, more discipline. What is sold as the solution is only the problem enlarged.

Europe is not failing because there is too little Brussels. Europe is failing because there is too much Brussels. It is failing because of a political class that no longer sees the continent as a historical space but as an object of administration. It is failing because of an ideology that treats every organically grown difference as a defect and therefore regards peoples, traditions, and national particularities as raw material to be processed. And it is failing because of a functional elite that has learned to disguise power as morality and to pass off its own interests as universal values.

There is a name for this kind of governance: the administrative state—the permanent, unelected layer that survives every election, answers to no voter, and grows whether the public wants it to or not. Brussels is that layer raised to the continental power and freed from even the inconvenience of a national electorate. There is no European demos to vote the managers out. That is not a flaw in the design. It is the design.

The real scandal of Europe today is not even its material mismanagement but its intellectual arrogance. The Union behaves as though it could suspend history—as though cultures could be harmonized like technical standards, as though political loyalty could be decreed the way one issues a packaging regulation. As though a continent of radically different historical experiences, economic structures, demographic trajectories, and security realities could be pressed into one standardized form without damage. Yet the damage is already visible. The EU is not unifying Europe. It is wearing it down.

To see why, it helps to return to a text that saw the whole thing coming. In 2011, long before today’s disruptions, the German social scientist Gunnar Heinsohn published an essay whose title I have borrowed and broadened here: “Europa 2.0: Neuzuschnitt der Alten Welt” (Europe 2.0: Recutting the Old World). It was written in the first panic of the euro rescues, and it has aged with uncomfortable precision.

Heinsohn’s argument was not, in the first place, a complaint about Brussels. It was an argument about arithmetic. He began with the chain of liabilities that the productive European middle class—the net taxpayers, the people who put in more than they take out—had quietly been made to guarantee. First, the bank rescues of 2008. Then the Greek bailout and the great euro backstops of 2010, which shielded bondholders and the comfortable classes of the periphery at the expense of taxpayers who were never asked. Then the implicit guarantees extended to the aging, shrinking states of the European East. And beneath all of it, an ever-growing domestic population to be supported for life. The decisive point was simple and merciless: when all these promises—upward, downward, and outward—come due at once, no one will be left to bail out the people who were made to do the bailing.

The mechanism is general. A government that collectivizes debt, anonymizes liability, and blurs responsibility will always end by taxing the people who never agreed to the bad decisions of others. Heinsohn merely showed that the European Union had written this principle into its very constitution. Any order that treats difference primarily as a financing problem must degenerate into a transfer machine. And a transfer machine is, sooner or later, politically hated—because it morally expropriates the productive and politically infantilizes the weak, rewarding neither virtue nor reform but only dependency. What it produces in the end is not solidarity but resentment: a bureaucratically managed exhaustion of the common good.

But Heinsohn’s deeper move was to set this fiscal machine on top of a demographic one—and here the argument becomes genuinely radical. The transfers are not merely unjust; they are mathematically doomed, because the population expected to honor them is collapsing. Across much of Europe, and most severely in the East, birth rates have run far below replacement for two generations. The productive base shrinks while the dependent base grows and ages. You cannot underwrite an expanding empire of guarantees with a contracting nation of guarantors. The numbers do not forgive ideology.

From this, Heinsohn drew a conclusion that polite Europe still refuses to say aloud: not all human capital is equal, and a civilization that loses its capacity to attract and cultivate talent does not stay rich for long. Innovation is decided at the top of the distribution, by the density of the highly capable, not by raising the average.

Importing large numbers of low-skill dependents, he argued, costs billions and replaces not a single first-rate mind, while a society that selects for ability—as the Swiss and the Danes already do—renews itself. Strip away the provocation and a plainer proposition remains: a serious country runs immigration in its own interest, as a selective system, choosing the people it needs rather than absorbing whoever happens to arrive. A civilization unwilling to reproduce itself has, in any case, already mortgaged its own future. Whatever one makes of these claims, Heinsohn’s 2011 essay reads today less like a period piece than like a forecast.

What, then, is the alternative? Heinsohn’s answer was not “more Europe,” and it was not “back to the nation-states of 1914.” It was a recutting—a deliberate sorting of the continent into political spaces that can actually function, each organized around two hard criteria: a currency that is genuinely sound and a society genuinely attractive to the talent it needs.

His model for both was not an abstraction. It was a sort of Switzerland.

Consider what Heinsohn admired in it. Its central bank does not monetize the debt of badly run governments; it will not take their paper as collateral and will not buy it—which is exactly why a country of fewer than nine million can hold a reserve-grade currency. Sound money, enforced by the refusal to bail anyone out. Its cantons do not subsidize one another into permanent dependency; there is no grand equalization scheme shuffling money from the competent to the connected. Instead, the cantons compete—for innovative firms, for capable workers, for investment—and grow their revenue by winning that competition rather than by lobbying for a larger share of someone else’s. Tax competition, fiscal discipline, and federalism as a sport rather than a shakedown. And immigration authority sits at the local level: it is the communes, not a distant central ministry, that decide who settles where—which is why the children of Swiss immigrants tend to perform like Swiss children rather than like a permanent underclass parked wherever a bureaucrat finds room.

The list of features is easy to state: sound money, decentralized authority, local control over who settles where, tax competition in place of redistribution, and a central government that coordinates only the few things that genuinely must be coordinated and leaves the rest to the level closest to the decision. The European word for this is subsidiarity. Heinsohn’s quiet provocation was to note where it actually survives—not in the European Union, but in the small, stubborn confederation that the Union spent two decades trying to fine, pressure, and squeeze into compliance.

Heinsohn then took the principle to its conclusion and asked what Europe would look like if it were organized by those criteria rather than by inherited borders. The criteria themselves are the point, and they are worth stating plainly, because they describe a direction rather than a destination:

A viable space, in his account, is one that can secure its own sound currency without monetizing anyone’s debt; one attractive enough to draw and keep the talent it needs rather than merely the dependents it acquires; one governed closely enough to its people that consent is real and not merely assumed; and one freed from open-ended liability for the failures of others. Spaces that can meet those tests cohere on their own. Spaces that cannot have to be held together by transfers and decree—which is the very condition that Europe is now exhausting itself trying to maintain.

From this, he sketched a deliberately provocative map—not a forecast and not a plan, but a way of making the criteria concrete. He imagined the continent re-associating into a handful of post-national economic and cultural spaces, sorted by affinity and by their capacity to meet those tests:

A northern federation gathering the Scandinavian countries with the prosperous German north. An Alpine federation built around the Swiss core, drawing in the wealthy regions of southern Germany, Austria, and northern Italy that already share its economic temperament. A revived commonwealth across the old Polish-Lithuanian space to the east. A Mediterranean union with its own southern currency and its own vocation, reaching from the Iberian Atlantic to the eastern shore of the sea. And where the old centers of the postwar order remained, a residual western bloc around Berlin, Paris, and London. He even allowed himself the heresy of supposing that productive regions might one day choose, politically, which space to belong to—that belonging itself might follow function rather than inheritance.

I set this out as Heinsohn set it out: as a thought experiment offered to clarify a direction—not as anyone’s program, and certainly not as mine. Its value lies not in the borders it draws but in the question it forces. Political belonging is not a law of nature fixed forever by the cartographers of 1815, and spaces that generate neither real sovereignty nor genuine loyalty have no claim to permanence simply because they happen to exist. Heinsohn noted, dryly, that his redrawn map was the conservative, earthbound option—far more grounded than the libertarian dream of seasteading, of escaping onto artificial islands beyond the reach of any government at all. When the sober alternative is a recut continent, and the radical one is floating cities in international waters, you have a fair measure of how exhausted the inherited order has become.

The usable core of all this is not the map, but the principle, and the principle is what I want to carry forward. Europe should no longer be conceived as a project of uniformity but as a system of differentiated political spaces. This is not a regression into petty-state fragmentation. It is the overdue recognition of European reality. The continent has always been most productive when it combined diversity with form—when its political units stayed manageable, legitimate, and capable of acting, and broader cooperation happened only where it genuinely made sense. It grew weak whenever it manufactured institutions that produced neither real sovereignty nor genuine belonging.

A new Europe would therefore begin with a ruthless disentangling. Everything that does not absolutely require continental regulation goes back to sovereign states—not out of nostalgia, but out of reason. Border protection, major infrastructure corridors, selected security cooperation, raw-material and energy security, and certain trade questions: these may need joint coordination. But cultural policy, social policy, identity questions, vast stretches of economic and regulatory law, and above all the question of democratic self-government do not belong to a supranational apparatus. Wherever politics becomes existential, the decision must move back toward the people and the state.

This is also where the deepest and most delicate point lies, the one that separates a serious continental order from a managed bloc. Europe can think as a continent only if it stops organizing itself around a permanent architecture of enemies. An order built primarily against Russia is, in the long run, not a European order at all;

it is the strategic extension of outside interests carried out on European soil. A viable continental order would have to find a way to include Russia rather than excommunicate it forever.

This is not sentimental Russophilia, and it is not a denial that real conflicts exist. It is the recognition of a basic fact of geopolitics: a continent that permanently writes its largest eastern power off the map turns itself into the forefield of others. Peace does not come from moral outrage. It comes from a durable order of power, interests, and space—balanced security interests, limited spheres of influence, and reorganized economic interdependence. Whoever defines Russia out of Europe defines Europe as a geopolitically incomplete space, dependent for its security on decisions made elsewhere. And a continent that will not defend, fund, or even define itself can hardly be surprised when its allies begin to ask why they should keep doing so on its behalf.

And here Heinsohn’s monetary intuition returns one last time. He imagined that even the names of currencies could keep a European feeling alive—a Nordic crown, an Alpine franc, and an eastern and a western and a Mediterranean euro, competing for international trust. Strip away the specifics, and the principle is straightforward: competition disciplines money as it disciplines everything else. A single currency imposed on radically unequal economies is not a symbol of unity. It is a mechanism for converting other people’s indiscipline into your own inflation.

What follows from all this is a single European principle: cooperation without fusion. Proximity without centralism. Continentality without empire. Europe would no longer be a union of ideological conformity but a confederation of historic peoples and political spaces—able to breathe again because not everything would have to be forced to the same institutional, economic, and moral temperature. In place of harmonization at any price: the freedom to shape one’s own order. In place of integration as an end in itself: cooperation grounded in shared interests. In place of a normative superstate: a Europe of different speeds, forms, and focal points.

And that, precisely, is the only road to genuine European sovereignty. Europe will not become sovereign because Brussels accumulates more powers. It will become sovereign only when its states and peoples recover real political substance and form alliances on that basis. Sovereignty requires capabilities, not rhetoric—industrial, military, technological, and cultural self-assertion. A Europe that obsesses over censorship and regulation at home while failing to secure its borders, its energy, and its strategic infrastructure abroad is not sovereign. It is a normative colossus on geopolitical clay feet.

This is where the mask of European moralism finally falls away. The Union speaks of democracy while narrowing the range of permissible opinion. It speaks of diversity while pursuing cultural conformity. It speaks of peace while manufacturing new lines of confrontation through ideological bloc logic. It speaks of openness while losing control of its borders. It speaks of resilience while making itself dependent. None of this is an accident. It is the logical result of a project that replaced political reality with normative self-staging.

The alternative is not a naive nationalism but a European realism, a realism that understands that peoples do not vanish because elites find them embarrassing; that spaces do not lose their meaning because technocrats redefine them as functional zones; that history does not end because a bureaucracy tries to regulate it away; and that order endures only where freedom, belonging, and responsibility are brought back together.

Europe therefore does not need a cosmetic correction of its institutions. It needs a change of political form: away from a morally charged administrative union and toward an order of the continent; away from abstract universal ideology and toward a concrete civilizational politics; and away from the permanent effort to define the European against the very conditions that made Europe possible. Europe must stop trying to emancipate itself from its own inheritance and learn again to draw strength from it.

Only then could today’s zone of crisis become a historical space once more: a Europe no longer under the guardianship of its own apparatus; a Europe that does not treat every internal difference as a threat or every external border as a moral failing; a Europe that takes itself seriously as a continent—plural in its forms, clear in its borders, sober in its interests, and resolved to defend itself.

The time of the Union as we know it is running out. The only question is whether Europe will shape this transition itself—or whether it will be torn apart by the contradictions of its own artificial construction and have its place in the world decided by others.

The alternative is clearer than many care to admit:

Either Europe becomes political again – or it remains an apparatus until other powers decide its place in the world.

Tyler Durden
Sun, 06/07/2026 – 08:10

Most Teens Aren’t Going To Social Media For Politics

Most Teens Aren’t Going To Social Media For Politics

Teens turn to social media for multiple purposes: to catch up with friends, for entertainment and to connect with others over similar interests.

However, as Statista’s Anna Fleck reports a possible misconception, however, is that many are going to platforms such as Instagram, Snapchat and TikTok for politics.

According to a recent survey of 1,458 teenagers in the United States, conducted between September 25 and October 9, under one in three respondents said that keeping up with politics or political issues was a main personal draw towards each of the respective social media platforms.

Infographic: Most Teens Aren't Going to Social Media for Politics | Statista

You will find more infographics at Statista

While most teens said that politics was not one of the main reasons for using the apps, U.S. teens were most likely to turn to TikTok and Instagram for political content (29 percent and 28 percent, respectively, said they would), followed by Snapchat (19 percent).

More popular reasons to use TikTok were entertainment (96 percent) and to know what’s going on with family and friends (86 percent).

When it comes to social media platforms as a source for news, then TikTok was also more commonly chosen over the other two.

Still, under half of respondents (45 percent) picked it as a main reason for using the platform, followed by 39 percent for Instagram and 26 percent for Snapchat.

Pew analysts found that Black teens were more likely than white and Hispanic teens to turn to TikTok for news, product recommendations and keeping up with athletes or celebrities and connecting with others.

Meanwhile, white teens on Snapchat were most likely to message people every day.

Tyler Durden
Sun, 06/07/2026 – 07:35

A Serious Country Does Not Swap Its Greatest Leader On Banknotes For Little Animals

A Serious Country Does Not Swap Its Greatest Leader On Banknotes For Little Animals

Authored by Steve Watson via Modernity,

The Bank of England has now admitted the quiet part out loud. Historical figures including Winston Churchill were removed from future banknotes after researchers told officials they were “elitist and divisive.”

The move replaces British legends with wildlife in a calculated step to sideline national heroes and accelerate cultural replacement.

This is not a neutral design update. It is institutional capture in action, where the man who rallied Britain against Nazi tyranny gets sidelined because focus groups and consultants found him too problematic for modern sensitivities and would prefer to look at a Fox or a hedgehog instead.

The revelation aligns precisely with plans first laid out months earlier. Back in March, the Bank announced it would phase out portraits of Churchill on the £5 note, Jane Austen on the £10, JMW Turner on the £20, and Alan Turing on the £50. In their place would come native British wildlife, plants, and landscapes.

King Charles III would remain on the front of the notes. Officials claimed the shift followed a public consultation with over 44,000 responses, where around 60 percent supposedly favored nature themes for security reasons and to celebrate the environment.

Critics at the time called the idea absurd and bonkers. They warned it represented a war on history and showed the Bank had been captured by progressive ideology. One former business minister said notes should honor the historical giants who shaped the nation rather than fuzzy animals.

Another asked what came next – squirrels running the economy. Observers noted it fit a wider pattern of erasing or downplaying Britain’s past under the banner of progress and diversity.

That pattern includes London museums draping portraits to “reclaim Caribbean history,” the removal of Shakespeare, Thatcher, and Churchill artworks from 10 Downing Street in favor of pieces by artists with Caribbean ties, Cambridge panels labeling Churchill a white supremacist whose empire was supposedly worse than the Nazis, and a London primary school renaming “Churchill House” after Marcus Rashford to promote diversity. Statues of Churchill have faced vandalism and calls for removal, including during pro-Palestine protests earlier this year. Each step chips away at the symbols that once unified national memory.

Now the June reporting makes the motive unmistakable. Research commissioned by the Bank concluded that figures such as Churchill, Alan Turing, and Jane Austen were “contentious and not representative of the UK’s cultural and natural diversity.” Officials received advice to replace the portraits with nature images because historical figures represented “a backward-looking vision of the UK that carries too great a risk of division and controversy.”

The Bank has insisted the decision was not driven by that specific research but by an earlier poll showing public preference for nature. Yet the Freedom of Information details tell a different story about how the process unfolded behind closed doors.

A public consultation is currently running on the wildlife shortlist. Proposed replacements include an owl, hedgehog, badger, or common frog. One commentator summed up the national mood: “We are not a serious country anymore.”

Some of the animals under consideration are not even native to Britain. That detail alone exposes the move as more than harmless environmental appreciation. It functions as a psyop to further erode British culture – stripping away recognizable national symbols and replacing them with generic or imported imagery that weakens any sense of rooted identity.

This fits the same ideological framework that has infected other institutions. DEI priorities and critical race theory obsessions treat any strong assertion of British heritage as inherently suspect. The man who helped defeat fascism is recast as “divisive” while the focus shifts to animals that supposedly better reflect “cultural and natural diversity.” The result is a currency that no longer celebrates the people who built and defended the country. It celebrates detachment instead.

The broader assault continues without pause. Schools, museums, government buildings, and now the Bank of England itself participate in softening, diluting, and apologizing for the past. Historical giants are judged not by their achievements but by whether they pass modern committee tests on representation. When they fail, they are quietly retired in favor of whatever the latest advisory group deems safe and inclusive.

Britain’s wartime leader did not save the nation so that unelected researchers and captured bureaucracies could later declare him unfit for the money supply. Yet that is exactly what has happened. The same institutions that owe their continued existence to Churchill’s stand now treat his image as a liability.

A country that systematically removes its heroes from public view is not evolving. It is forgetting how to value itself. The Bank of England’s choice to prioritize “non-divisive” wildlife over the figures who actually shaped the United Kingdom sends a clear message: national pride is now considered too risky for everyday transactions.

Britons who still believe their history is worth defending have every reason to push back. This is not about banknote design. It is about whether the nation retains the confidence to honour the people and events that made it possible. Replacing Churchill with a hedgehog is not progress. It is surrender dressed up as sensitivity.

Tyler Durden
Sun, 06/07/2026 – 07:00

An Emerging Market Crisis In Oil-Poor Asia?

An Emerging Market Crisis In Oil-Poor Asia?

Authored by Satyajit Das via NewIndiaExpress,

Reliable availability of cheap energy is, as the Iran war highlights, essential to modern economies and societies, at least for the foreseeable future. Shocks divide the world into the oil haves and oil have-nots.

Alongside higher energy prices, shortages of petrochemical derived chemicals will affect agriculture, mining, plastics, textiles, semi-conductors and construction. Given that even if the conflict was to end with a lasting agreement it would take months or years for restoration of normality, the effects are likely to be severe.

Europe, already affected by their decision to cut-off Russian gas supplies, and Japan, are affected. But the major consequences will be felt across oil poor South and East Asia.

 

The extent of the damage depends on pre-existing vulnerabilities, including insufficient currency reserves, poor public finances, trade imbalances, high debt levels, especially foreign currency denominated borrowings, reliance on overseas capital, narrow industrial bases, and poor contingency plans.

The Table below sets out some key vital statistics

Notes: all figures are mainly for 2025

For energy importers, supply disruptions work through several pathways. Import costs rise flowing through into the economy. It most immediate manifestation is a widening current account deficit.

Given the pervasive impact of transport costs, prices increase across the board. Rising input expenses for businesses affect profitability and, ultimately, viability. As essentials cost more, the fall in surplus income decreases consumption slowing the economy with resultant unemployment. Tax revenues fall and welfare spending kick in worsening government budgets. This is frequently aggravated by vote buying subsidies, frequently for fuel costs, and transfers to alleviate cost of living pressures.

Financially, the most obvious signs are a weakening of the currency and falling asset prices. Asian currencies are down by 5 to 6% from the start of the Iran war. Asian stock markets, at least those without exposure to semi-conductor stocks like South Korea and Taiwan, have fallen. Volatility in asset markets is very high.

Source: https://www.reuters.com/world/asia-pacific/global-markets-war-graphic-2026-05-27/

Typically, foreign investment inflows slow. Portfolio investors in equities and bonds exit as asset values translated into their base currency decrease. Direct investment falls reflects the poorer prospects. Banks face higher non-performing loans from the weaker economy as well as lower loan demand. Where reliant on foreign borrowings to supplement domestic deposits, the availability of funding is affected.

Inflation places pressure on interest rates which further slows the economy and exacerbates the economic and financial stresses. The current crisis is a textbook case of how oil shocks work through economies. Other factors, including the now-ignored Trump tariffs and economic warfare in the form of trade restrictions and sanctions, will exacerbate the problems. The risk of an economic and financial crisis in many of the affected countries is now elevated.

What is to be done? Like the Irish farmer’s direction to a traveller: “I wouldn’t start from here!”

The classic policy prescription is to let the currency devalue and force the necessary adjustments. An alternative is to intervene in the currency markets and simultaneously use higher short-term interest rates to support the exchange rate. The most extreme measure is for governments to restrict capital movement and, as an option, implement prices and income controls. Each has advantages and disadvantages.

Depreciation of the currency should, in theory, have the effect of reducing imports by choking off purchases assuming the application of the normal laws of supply and demand.

It should simultaneously boost exports. It forces the necessary adjustment of living standards, often brutally particularly vulnerable low-income groups.

In practice, its effectiveness depends on several factors, particularly the elasticity of demand for a country’s imports and exports. If the import is vital, like energy, and not replaceable or the cost can be passed on, foreign purchases may not decrease. Improvements in export volumes depend on the type of product and the demand sensitivity to price. It also depends on competition and substitutes. If competitors have superior products or are willing to match the prices, then volumes may not respond. This is particularly problematic when the whole emerging market complex is affected and all countries want to devalue at the same time, reducing the ability of a single country to cheapen its currency. An additional problem is the global nature of the slowdown across advanced economies, like the US and Europe, which will reduce exports demand which is central to Asian economies.

Devaluation also feeds inflation through higher import costs, unless it destroys demand which would lead to a sharp reduction in growth. A weaker currency may accelerate capital flight as investors fear losses. It creates unhelpful behaviours with importers accelerating purchases and exporters delaying conversion of foreign currency inflows. Foreign currency borrowers without any equivalent matching revenues providing a natural hedge face rising indebtedness. Emerging market businesses frequently take advantage of lower interest rates, relative to domestic funding, running the currency risk.

Intervention is money markets rarely works. It risks using up currency reserves needed to cover commercial imports or short-term debt. Historically, success requires co-operation between major central banks as in the 1985 Plaza Accord which devalued the dollar. Emerging market central banks have a poor track record. In the 1997 Asian market crisis, Thailand, Indonesia and Malaysia severely depleted their foreign exchange reserves in failed attempts to defend their currencies, which was fixed against the dollar. In general, where foreign currency debts and investments exceed reserves, such interventions rarely succeed.

To stem falls in the currency, central banks in India, Indonesia and the Philippines, have repeatedly intervened in currency markets drawing down foreign exchange reserves but with limited success.

Capital controls would require managing the exchange rate and restricting foreign currency inflows and outflows. They can manage a crisis to maintain economic sovereignty over exchange rates, interest rates, inflation and the banking system. In the longer-term, capital controls will deter foreign investment because investors fear loss of the freedom of repatriating funds. It often leads to a currency black market and workarounds which underline their effectiveness.

In market-based system, it is difficult to insulate an economy from external events, especially of the magnitude of the Iran war. Poorly developed domestic capital markets, which limits local supply of capital and risk management tools, impairs the ability to absorb shocks.

Many emerging market economies are also woefully unprepared. Assuming no disruption in supply chains, they have pitifully low buffer stocks or reserves. Their economies remain narrowly structured with little diversification of their industrial base. Despite a history of energy dependence and previous disturbances, there has been limited efforts to increase energy independence by conservation measures or seeking alternative sources. Investment in renewables, such as solar, wind, hydro and biofuels, remains inadequate. Even emergency plans for rapidly scaling up alternative fossil fuels, like coal, are largely absent.  In contrast, China’s forward planning has focused on building up substantial strategic oil reserves and renewable energy supplies, which now account for up to 40% of its total electricity generation and over 50% of its total installed power capacity.

Governments have encouraged magical thinking amongst citizens, encouraging them to believe that policymakers can shield them from these events. Subsidies, transfers and price controls are electorally popular, but they do not address the core problems.

Like Aesop’s grasshopper, energy deficient countries have wasted summers of abundant supplies and now find them facing a difficult winter.

Tyler Durden
Sat, 06/06/2026 – 23:20