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US Industrial Production Is Growing At The Fastest Pace In 4 Years As Manufacturing Rebounds

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US Industrial Production Is Growing At The Fastest Pace In 4 Years As Manufacturing Rebounds

Amid hot inflation (CPI, PPI, Import/Export prices) and AI-infected growth scares, US Industrial Production data this morning added another twist, printing far better than expected as capacity utilization picked up further in September.

Headline Industrial Production rose 0.7% MoM in September (almost double the 0.5% MoM expected) with August’s unchanged revised up to +0.1% MoM. That is the sixth straight month of gains for industrial production…

…lifting the annual increase in US industrial production to +2.25% – the highest since Sept 2022.

Utilities were the main driver: +3.5% in September (and a strong +14.8% annual rate in Q3) and Mining picked up.

US Manufacturing rebounded from August’s dip (better than expected)…

Durable manufacturing was up only slightly as motor vehicles & parts fell 3.0%. Nondurables rose 0.4%, though semiconductors and related components were very strong.

Capacity Utilization also surprised to the upside (76.9% vs 76.5% exp).

That is the highest since Dec 2023 (but still 2.5 percentage points below its long-run (1972–2025) average).

Nevertheless, it was a clear beat on the side of growth (albeit uneven as autos lagged), driven largely by utilities, with manufacturing showing a modest rebound after prior softness.

Tyler Durden
Fri, 10/16/2026 – 09:34

Rate Hike Odds Tumble After Warsh Does Not Address October FOMC Meeting

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Rate Hike Odds Tumble After Warsh Does Not Address October FOMC Meeting

In our morning wrap we said that market sentiment was boosted overnight following Kevin Warsh’s speech at the IMF meeting in Bangkok, specifically “The day’s driver is Warsh (or rather what he didn’t say): with the blackout starting Saturday, the Fed chair declined to push back on rate expectations and instead talked up a “massive investment surge” from AI.”

Goldman set the context, with its chief economist Jan Hatzius writing in a note overnight that in comments at the IMF’s annual meetings, Fed Chairman Kevin Warsh did not specifically address the FOMC’s upcoming October meeting but said that “in the intermeeting period, the world has broadly conformed to our expectations [at the September meeting].” Hatzius adds that “alongside other recent comments from FOMC participants, Warsh’s comments indicate that the FOMC is set to pause in October. We continue to expect a second and final hike in December.“

Below we excerpt the highlights from Goldman’s note:

  • In comments at the IMF’s annual meetings, Fed Chairman Kevin Warsh did not specifically address the FOMC’s upcoming October meeting but said that “in the intermeeting period, the world has broadly conformed to our expectations [at the September meeting].”
  • In other recent comments from FOMC participants, Fed Vice Chair for Supervision Bowman said, “I don’t feel any urgency for taking further action at this point.” San Francisco Fed President Daly, speaking after the firmer than expected September CPI report, likewise said that she did not see an urgent need “to decide with a limited set of information.”
  • Taken together, these comments indicate that the FOMC is set to pause in October. We continue to expect a second and final hike in December.
  • In other comments during his fireside chat, Warsh highlighted that the US is experiencing “a massive investment surge” related to the AI buildout. He also noted that there has been a “synchronous tightening in monetary policy around the world” recently. 

Warsh’s comments, or rather lack thereof, coupled with the market’s interpretation that his lack of priming an October hike (which is hardly surprising for a Fed chair who has repeatedly refused to offer forward guidance) means one isn’t coming, was enough to send October rate hike odds sharply lower, or 13%, less than half where they were before Warsh…

… even as odds of a December rate hike rose to new contract highs.

One possible reason for the market’s near certainty that a rate hike is coming in the year’s final FOMC meeting: the Bloomberg Economics Federal Reserve Sentiment Index continues to rise, now at its highest level since 2023

More in the full Goldman note available to pro subs.

Tyler Durden
Fri, 10/16/2026 – 09:26

Britain Is Accelerating Towards Crisis

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Britain Is Accelerating Towards Crisis

Authored by David Betz and Michael Rainsborough via The Daily Sceptic,

Something is going badly wrong across Western societies, and the sense of political dislocation is no longer a fringe concern. Trust in institutions has fallen, established political parties are losing support and arguments over immigration and national identity have become sharp dividing lines.

In Germany, the President now warns openly of a return to the political divisions of the Weimar era. In France, a protest movement that began in schools has spread across the country, bringing arson, mass arrests and violent clashes with riot police to cities from Strasbourg to Marseille. Across Europe, insurgent parties of Left and Right prosper on dissatisfaction with political systems that seem increasingly unable to correct themselves. Britain exhibits the same symptoms. The question is why governments confronted by such conditions so often appear to aggravate the problems rather than address their causes.

Aggravating the conditions driving the crisis follows the logic of accelerationism. Most closely associated with the British philosopher Nick Land, accelerationism holds that an existing order contains forces which, once unleashed, drive change forward and ultimately overwhelm attempts to restrain them. Rather than arrest the process, accelerationist thought embraces its intensification, although versions of the idea on Left and Right differ markedly over where it might lead. The essential rationale remains: if the existing order contains forces capable of destroying or transforming it, remove the restraints and let them run their course.

Judged by that standard, Britain’s ruling classes are accelerationists par excellence. They oversee economic stagnation, mounting national debt, growing welfare dependency, the decay of town centres and public services, and deepening social divisions, compounded by rapid demographic change and repeated failures to deliver effective immigration controls. Their own reports document segregation, declining trust and failures of integration, yet governments refuse to change the policies contributing to those problems. As opposition becomes more organised and disruptive, the state responds with surveillance and speech restrictions, as well as two-tier policing and justice. Grievance produces resistance, resistance produces stronger enforcement, and stronger enforcement fuels the grievance.

We first raised the likelihood of Britain moving towards violent social breakdown in a short article ‘The British Road to Dirty War‘ in January 2019. At that time the prognosis was seen as controversial, not least within our own university. We were ‘cancelled’ and removed from our positions of authority in the Department of War Studies for daring to raise this heretical possibility.

Now, the prospect is no longer confined to supposedly dissenting academics. In June 2026, Conservative leader Kemi Badenoch warned that communal divisions risked taking Britain towards civil war. What was once been dismissed as an alarmist prediction was now being voiced by the leader of the opposition. Recognising the danger is one thing, though; reconsidering the policies contributing to the problem is quite another.

Governments are not spectators to the forces at work, which raises the most fundamental – and still largely unanswered – question in the civil war debate: why, despite endless warnings about growing social fracture and the prospect of civil strife, do Britain’s ruling classes continue pursuing policies that exacerbate these tensions? Why persist on a course that threatens to unleash forces capable of sweeping away the very political order upon which their own survival depends?

Is it simply incompetence?

The current debate over immigration illustrates this paradox most clearly. So, let’s begin from the obvious explanation: that it is all a case of ineptitude.

There is plenty of evidence of incompetence, but as an explanation for the failure to tackle the wider problems generated by unconstrained immigration, legal and illegal alike, it doesn’t quite wash. For example, consecutive administrations have promised to reduce immigration but then consciously moved in the opposite direction. Brexit should have removed one familiar explanation for the inability to control national borders. Instead, the system introduced in 2021 widened access to overseas labour by lowering skills and salary thresholds, removing the cap on skilled workers and abolishing the resident labour market test. Net migration subsequently reached 944,000 in the year ending March 2023. The rules were later tightened, and the figures fell but remain historically high.

Nor can governments claim that the negative social consequences are a surprise. As far back as 2001, the Cantle Report after the riots in Bradford and Oldham described communities living “parallel lives”. As Home Secretary, Theresa May warned in 2010 that poorly managed immigration placed pressure on public services and damaged community relations. David Cameron declared state multiculturalism a failure in 2011. The Casey Review reiterated many of these findings in 2016. In November 2024, the Government stated that its intent was to restore order to a “broken” immigration system. In 2025 Keir Starmer warned of Britain becoming an “island of strangers”, while the Government’s 2026 social cohesion plan acknowledges similar problems.

The recurrence of such warnings points towards more than poor judgement. Other forces are clearly at work. For example, large employers, notably in the health and social care sectors, have come to depend heavily upon international recruitment, giving them a powerful interest in maintaining existing arrangements, while the detrimental social impacts are borne by the population at large, including fiscal costs, pressure upon housing, infrastructure, health and welfare services, wage suppression and rising crime, especially in sexual offending.

These social costs did not have to be distributed in this way. Employers could have been encouraged to invest more heavily in domestic recruitment, training and retention. Such choices would have imposed burdens of their own, but political decisions necessarily involve trade-offs. Governments instead accommodated business demands for access to overseas labour while leaving the wider population, especially those on lower incomes and in already deprived areas, to bear the burden.

Over time, the logic acquired a momentum of its own. Dependence upon overseas labour was increasingly cited as a reason why immigration could not substantially be reduced. Policy created dependency; dependency became the argument for continuing the policy. Cue the inevitable smug Question Time audience member who bewails that without migrants, who will staff the NHS, and more importantly, who will serve us in Pret?

Incompetence alone cannot explain why governments pursue policies that heighten the danger of civil strife. Governments have certainly miscalculated, but they have also made deliberate choices, sustaining existing arrangements long after the resulting social tensions had been officially admitted.

Another failure, another report

Faced with declining social cohesion, governments have proved far readier to devise new administrative remedies than to reconsider the policies contributing to the problem. The latest example is Protecting What Matters, the Government’s 2026 social cohesion plan. It acknowledges that large-scale migration makes community bonds harder to maintain, points to continuing segregation and records falling trust and worsening tensions.

Having diagnosed the problems, Whitehall proposes national integration standards, local cohesion plans, new mechanisms for detecting communal friction and a Social Cohesion Measurement Framework. After 25 years of reports documenting deepening societal divisions, the answer is apparently another programme for managing the consequences, while leaving the policies contributing to those divisions untouched. One set of policies creates the problems that justify another.

To illustrate the contradictory thinking at work, in March 2026 Home Secretary Shabana Mahmood accepted that people seeing illegal small-boat arrivals and the pace of immigration more generally had good reason to feel that matters were “out of control”. Yet having conceded the failure of control, she turned to what she regarded as the more grievous threat: the growth of ethno-nationalism. Government policies, in other words, had provoked precisely the political reaction she now proposed to combat.

Combating the rise of the ‘far-Right’ gives government a new set of tasks. Anger over immigration is treated as a threat to social cohesion; hostility towards immigration becomes a potential source of extremism; communal tensions require monitoring and intervention. The policies generating much of the discontent stay in place, while government expands its efforts to contain the political reaction.

The accelerationist dynamic can therefore be summarised as a feedback loop. Policies that generate discontent are maintained; government seeks to contain the reaction they have caused; containment further exacerbates the grievance against the state. By treating the political expression of that grievance as a problem to be suppressed, the authorities intensify the very forces they are trying to control.

When political correction fails

Democratic politics depends upon the possibility of correction. Governments can be removed, policies reversed and lost arguments fought again at the next election. People can profoundly dislike a policy while accepting the political system, provided they retain confidence that democratic institutions offer a peaceful means of changing the direction of policy.

The scale and pace of recent immigration have tested that bargain. Governments of both major parties have promised greater control, yet policy has either barely changed or failed to deliver the promised results. The lesson is corrosive: when elections fail to translate public demands into political change, the appeal of seeking redress through other means inevitably grows.

Loss of faith in the capacity of elections to bring about meaningful change also extends to the institutions responsible for implementing government policy. The civil service, courts and police cease to appear as neutral instruments of democratic governance and come to be seen as obstacles to popular will, seemingly unresponsive to demands expressed through the ballot box.

Mismanaged immigration also accelerates the communalisation of politics. Competition over housing, schools and public resources, alongside disputes over cultural norms and practices, becomes organised increasingly around ethnic or religious identities. Government reinforces these divisions when it consults faith and community organisations, directs programmes towards particular groups and seeks representatives to speak on their behalf. A state that encourages minorities to consolidate politically along communal lines should hardly be surprised when the majority begins to do the same, and nativist demands follow.

If elections fail to change policy, while institutions meant to arbitrate political disputes are themselves seen as favouring competing communal interests, confidence that the system offers a peaceful route to political change begins to collapse. Opposition then moves beyond electoral politics. Protest becomes more confrontational, direct action more attractive and resistance easier to justify.

When containment becomes escalation

As opposition moves from protest to direct obstruction, the full weight of the state is brought to bear against those who resist. At Eastney Marina in Portsmouth, the authorities facilitated the landing and onward transport of migrants brought across the Channel by criminal smuggling networks, despite fierce local opposition. The determination to secure their passage stood in stark contrast to the refusal to reconsider the policies that had provoked the confrontation.

Such confrontations become tests of government authority: whether the state can enforce its decisions in the face of organised resistance. For those resisting, the same confrontation raises a question of legitimacy: whether governments that have consistently ignored demands for political change can still claim the obedience of their citizens.

Once resistance challenges the state’s authority, changing course becomes politically more difficult than an earlier correction would have been. A policy reversal secured through ordinary politics can be defended on its merits; one made under pressure from direct action risks demonstrating that disruption works. The policy becomes a test of the government’s resolve, giving ministers another reason to hold their ground.

For those resisting, the lesson is precisely the opposite, providing another reason to question the state’s legitimacy. Elections, manifesto promises and official reviews have failed to deliver the promised reductions in immigration. Yet a government perceived as unwilling to secure the national borders proves ready to deploy its coercive powers against those challenging its decisions. The contrast reinforces the belief that open defiance is the only language the state appears to understand.

The two responses feed upon each other. Resistance gives government stronger reasons to assert its authority; the resulting enforcement deepens the grievances driving resistance. A classic escalatory dynamic develops, with each side supplying the other with reasons for its next move.

The confrontation over illegal Channel crossings thus develops into a more fundamental struggle over political power: whether change can still be secured through ordinary politics, or whether the outcome will increasingly be settled by force.

The self-preservation trap

As things deteriorate, the state is much better equipped to suppress a protest than to address its underlying causes. No comparable machinery springs into action when a policy fails for 20 years. Revising immigration policy requires ministers to confront organised interests, institutional dependencies and assumptions embedded across government. Arresting someone who blocks a port is considerably easier than reconsidering the policies that brought them there in the first place.

The grievances behind such protests have accumulated through years of political choices whose costs have been deferred, dispersed or transferred elsewhere. Some difficulties have arisen from governmental inaction; others are the direct result of policies deliberately pursued. Yet governments that have shown little inclination to address these problems become remarkably decisive when the resulting tensions threaten their authority. The authoritarian impulse asserts itself as those in power seek to defend the political order over which they preside.

Accidental accelerationists?

Accelerationism ordinarily implies intention. There is little reason to presume that Britain’s ruling classes consciously seek the social upheaval or political destruction that accelerationist ideas envisage. Governments, however, are hardly innocent bystanders to the forces they help set in motion. They decide which interests to accommodate, determine which costs they are prepared to impose and follow the same course long after the dangers are plain to see. Absence of intention does not imply absence of responsibility.

Mass immigration and multiculturalism provide the clearest illustration. Neither simply happened to Britain. Both reflected political choices and, in some quarters, ideological convictions about diversity, national identity and the kind of society Britain ought to become. No democratic mandate was ever sought for so profound a transformation of British society.

The political and institutional interests sustaining mass immigration and multiculturalism also evolve over time. One government liberalises immigration for economic reasons; another preserves the system because public services have become dependent upon overseas recruitment; institutions built around multicultural policies acquire constituencies, practices and assumptions of their own. Later governments inherit both the policies and the costs of dismantling them. Choice becomes interest, interest hardens into dependency, and dependency is then presented as necessity.

Britain’s present difficulties are therefore no mere accident. The policies contributing to them were consciously chosen, defended and sustained despite successive official warnings about their effects.

So, are they accelerationists?

Why, then, do Britain’s ruling classes continue along a course that increases the danger of civil conflict? The answer lies in how the different forces we have examined combine to reinforce one another. Six propositions bring the argument together.

1. Incompetence explains part of the failure but cannot explain the refusal to change course. Governments make bad decisions, misjudge consequences and fail to deliver what they publicly promise. But such failings cannot adequately explain why, when the dangers have long been recognised, governments of both major parties nevertheless pursue much the same policies.

2. Powerful interests have a stake in maintaining the status quo. Employers and public services have become heavily dependent on overseas recruitment. Their interests are organised and well represented in government. Governments face stronger incentives to accommodate these organised interests than to address the consequences borne by the population at large.

3. Ideology shapes what governments are prepared to recognise and reconsider. Immigration and multiculturalism reflect convictions about diversity, national identity and the desirability of social transformation. Such beliefs influence which outcomes governments welcome, which difficulties they tolerate and which objections they regard as legitimate. Political commitments can survive mounting evidence that the resulting changes are generating serious divisions.

4. Political choices create institutional dependencies that make reversal progressively harder. Employers and public services organise staffing around overseas recruitment, while government builds institutions around the society its policies have helped create. Over time, decisions acquire powerful defenders and become embedded in administrative practice. Reversing these policies then requires governments to confront interests, assumptions and dependencies that their predecessors helped establish.

5. The failure of democratic correction encourages opposition beyond ordinary politics. Voters are promised greater control over national borders, but governments fail to deliver. Reports identify problems without resolving them; elections change governments without changing the direction of policy. As confidence in democratic redress weakens, resistance becomes more organised and disruptive. The failure to address grievances through established political channels creates the conditions in which more confrontational methods acquire greater appeal.

6. The defence of political authority can become a source of further escalation. Once resistance challenges the state’s ability to enforce its decisions, changing course risks appearing to reward direct action and weaken formal authority. Governments therefore become more inclined to suppress opposition, even as the causes of discontent go unaddressed. Stronger enforcement, in turn, reinforces the conviction among opponents that the democratic process offers no effective remedy. The effort to preserve authority risks intensifying the confrontation that threatens its legitimacy.

So, are Britain’s ruling classes the ultimate accelerationists? Not in the literal sense, of course. Accelerationism consciously embraces forces within an existing order whose intensification drives towards its destruction or transformation. Britain’s ruling classes, one assumes, do not subscribe to any such doctrine. Yet their policies have set in motion a recognisably accelerationist dynamic. As elections repeatedly fail to produce the promised changes in policy, governments become more determined to assert their authority over those who resist. Governments unable to address the causes of political conflict prove considerably more capable of policing dissent. Suppressing resistance is easier, at least in the short term, than correcting the conditions that generate resistance.

Britain’s ruling classes need not seek the destruction of the existing order. They need only defend it until self-preservation becomes self-destruction.

David Betz is Professor of War in the Modern World, King’s College London. Michael Rainsborough is Professor of Strategic Theory and Director of the Centre for Future Defence and National Security, Canberra.

Tyler Durden
Fri, 10/16/2026 – 07:20

“Engineering Flex”: Flying Tesla Roadster Wows Wall Street, But Production Waits Until 2028

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“Engineering Flex”: Flying Tesla Roadster Wows Wall Street, But Production Waits Until 2028

Tesla shares rose 4% in early New York premarket trading after Thursday night’s flying Roadster reveal delivered what HSBC analysts called an “engineering flex.” However, for reservation holders who have been waiting years, the “Back to the Future”-style sports car that can perform midair barrel rolls using SpaceX air thrusters came with another dose of reality: production won’t begin until 2028.

HSBC senior global autos analyst Michael Tyndall wrote early Friday morning his first take on last night’s Tesla Roadster reveal, saying it was “an engineering flex rather than a demonstration of earnings power; still some wait for first deliveries.” 

Here’s Tyndall first take:

Tesla revealed the Roadster at a SpaceX facility on 15 October, almost nine years after it started taking orders/deposits for the model in November 2017.

Financials – limited details

  • No details on financial impact of the model (i.e. indication of potential units or pricing, other than reservation amount on Tesla’s website). The model is said to go into production in 2028. Global Mobility’s latest forecast (released 15 October) does not include any production estimates for this model.
  • On Tesla’s 1Q26 earnings call, CEO Musk had said that: “I don’t think it [Roadster] moves the needle massively from a revenue standpoint, but it is very cool”.
  • Tesla has not disclosed how many total orders it has for the model so far since Nov-17. The Founders Series that required a USD250k deposit (limited to 1,000 units) was sold out (totalling USD250m in deposits) but there is no clarity on the orders for the Standard version for which Tesla collected USD50k deposits per unit.

Regulatory approvals – no clarity

InsideEVs (15 October) notes that during the reveal event CEO Musk was “cagey about whether it would actually be legal to drive on public roads”. Tesla’s reservation page for the model says:

  • The base “Performance” version is “road ready”
  • The Thrust augment (limited release) is “race ready” – so potentially cannot be used on public roads
  • The Rocket augment is not approved for public road use and not available in all regions

Key questions

  • How much of the technology will make it to the final vehicles? How much of it will pass type approval legislation?
  • Is 2028 production time-line realistic? Given the novel nature of the technology are we likely to see further delays?
  • Given the pivot away from human-driven cars, does this represent a worthwhile use of R&D expenditure?

Separately, JPMorgan analyst Rajat Gupta, who rates Tesla neutral, said the new Roadster’s “rocket upgrade” showcases deep collaboration with SpaceX, though production remains years behind the original schedule.

“Production is targeted for 2028, compared with the original 2020 delivery target announced when the vehicle was first unveiled in 2017,” Gupta said.

Notably, the flying Tesla Roadster appears to borrow technology from SpaceX, such as air thrusters, which supports the case that Tesla and SpaceX share not just materials but also engineering. 

Barclays senior autos analyst Dan Levy wrote Thursday about the prospects of a Tesla-SpaceX merger, in which he said:

The possibility of a Tesla/SpaceX merger has increasingly become the consensus expectation, as widely highlighted by media reports. Even Elon Musk has publicly alluded to a combination: On the most recent Tesla earnings call, Elon Musk pointed to “more and more overlap” between Tesla and SpaceX, and in an interview at the All-In Summit last month, he noted, “With all this collaboration, on so many levels, who can imagine what action one might take when there’s so much close collaboration in so many areas.”

Levy expects a merger announcement ahead of Tesla’s annual general shareholder meeting in December 2026.

Tyler Durden
Fri, 10/16/2026 – 06:55

“Perfectly-Integrated” African Migrant On Trial For Strangling, Dismembering His Wife

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“Perfectly-Integrated” African Migrant On Trial For Strangling, Dismembering His Wife

Via Remix News

An African man, who was described as “perfectly integrated,“ is on trial in Bonn on charges connected to the strangling murder of his wife, whom he then dismembered. The woman’s remains were later found in several locations across Germany, according to court proceedings.

Asmerom G., 42, an Eritrean national, faces the charges in Bonn Regional Court in North Rhine-Westphalia. The case stems from events in mid-November 2025 involving his wife, Weghata A., 32. The couple had married in Ethiopia in 2019, and she arrived in Germany in 2024 through family reunification.

The defendant allegedly met his wife, 32-year-old Weghata A., inside his car, where they began arguing on their way back from a church visit. According to Bonner Generalanzeiger newspaper, Asmerom G. later told police that his wife told him their 3-month-old girl was not his biological child. He reportedly could not remember what happened next.

According to prosecutors, Asmerom G. then strangled his wife in the back seat of the car in a parking lot in Bonn, directly in front of the baby who was sitting in a child seat.

After the crime, the defendant is said to have driven with the body and the baby in the car to the Monastery of Saint Anthony, 160 kilometers away, where he abandoned the little girl in the stroller when it was only 2 degrees Celsius (35 degrees Fahrenheit).

Fortunately for the girl, monks found the child just 40 minutes after she was dropped off.

Asmerom G. then went to work dismembering Weghata’s body, including packing her hands and head in plastic bags.

He left the torso behind, which was found at the end of November 2025. Asmerom G. left the body parts on the side of the autobahn, on the A45. The head of the woman was discovered by garbage collectors in April 2026.

Asmerom G. was arrested in Ethiopia and extradited to Germany. He has a prior conviction for aggravated assault. On the first day of the trial, he declined to comment on the allegations. Defense attorney Martin Kretschmer has said the case rests largely on DNA evidence and mobile-phone data.

Kretschmer told Bild newspaper, “Until his arrest, he was considered perfectly integrated.”

German media was even singing his praises in 2016. The man from Eritrea had landed a job as an electrical assistant at a firm in Rheinbach, in North Rhine-Westphalia, and gave interviews about leaving his homeland three years earlier to escape political persecution.

He wanted German citizenship, he said. His boss at the time was quick to describe Asmerom G. as talented, reliable, and “capable of anything,” according to Bild newspaper.

However, then trouble began. Within a year, Asmerom G. was in trouble with the law. A brawl led to a conviction for grievous bodily harm at Siegburg District Court, earning him a six-month suspended sentence.

He moved on from Rheinbach and took up work behind the wheel of a freight truck. Somewhere along the way, he made a trip back to his home country – for reasons that remain unclear – and returned to Germany with a woman named Weghata A., who was 31 at the time, his wife under Eritrean law. On July 26, 2025, she delivered their daughter.

The child is now in the care of authorities. Lawyer Gesine Ickert, representing the daughter and the deceased’s father, has stated that the child is well looked after under the circumstances.

The trial continues.

Tyler Durden
Fri, 10/16/2026 – 06:30

Legendary Swiss Bank “Thinks The Unthinkable”; Report

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Legendary Swiss Bank “Thinks The Unthinkable”; Report

Swiss banking giant UBS is considering abandoning its home country and relocating to the United States as a bitter battle over government regulations threatens to upend one of the world’s most powerful financial institutions.

The Zurich-based banking powerhouse and its advisers have drawn up contingency plans to move its headquarters abroad if Swiss lawmakers impose sweeping new capital requirements, according to The Wall Street Journal.

The bank has also received approaches from potential American deal partners, although no negotiations are underway and no formal steps toward a transaction have been taken.

Such a move would mark a stunning rupture between Switzerland and a financial institution synonymous with the country’s centuries-old reputation as a global banking haven.

Among the options reportedly under consideration are acquiring a U.S. financial institution and redomiciling, merging with a European rival or selling UBS to an American banking giant.

The escalating confrontation traces back to the spectacular 2023 collapse of Credit Suisse, which forced UBS to absorb its longtime rival in a government-backed emergency rescue.

Last month, Switzerland’s upper house of parliament backed a proposal requiring UBS to support its foreign subsidiaries with 90% common equity tier 1 capital.

UBS estimates the measure would force it to hold roughly $16 billion in additional capital, phased in over seven years.

The proposal still requires approval from parliament’s lower house, where it could be watered down, and a final decision is not expected before next year.

An earlier government proposal was even more aggressive, with UBS estimating it would have required approximately $24 billion in additional capital.

UBS has fiercely resisted the measures, warning that the requirements would leave it at a severe competitive disadvantage against American and European rivals.

The regulatory battle has also sparked a backlash from major shareholders.

Investment firm Artisan Partners, which manages more than 60 million UBS shares, urged the bank’s board in an October 1 letter to abandon Switzerland, blasting the proposed regulations as “punitive” and arguing there was no compelling reason to remain a Swiss company.

Activist investor Cevian Capital has similarly warned that the reforms would make it “not viable” to operate a global bank from Switzerland.

The threat of a dramatic departure has been building for months.

UBS was first reported to be exploring a potential relocation in early 2025, while Chairman Colm Kelleher later held private discussions with Treasury Secretary Scott Bessent about what moving the bank’s legal home to America might entail.

Losing UBS could deal a devastating blow to Switzerland’s status as one of the world’s premier financial centers.

The bank holds roughly $1.7 trillion in assets, equivalent to approximately 150% of Switzerland’s entire economic output.

However, Swiss officials are no showing any signs of backing down.

Swiss Finance Minister Karin Keller-Sutter dismissed the relocation threat, warning that abandoning the country would be “far more expensive and legally complex” than complying with the proposed regulations.

“It would also cease to be a Swiss bank,” she said in an interview with Schweiz am Wochenende, arguing that UBS’s business model depends on Switzerland’s legal system and political stability.

“UBS certainly doesn’t have to leave Switzerland. Many analysts and specialists agree that the requirements are reasonable and easily manageable for UBS,” she added. “The capital inflows experienced by private banks during the conflicts in the Middle East clearly demonstrate the confidence in Switzerland as a business location.”

Swiss National Bank President Martin Schlegel echoed those concerns.

“Ultimately, the choice of headquarters is a decision for UBS,” Schlegel told public broadcaster SRF. “Of course, it’s a large bank and brings benefits to Switzerland. But Switzerland, of course, also brings benefits to UBS.”

No final decision has been made, and UBS could ultimately choose to remain in Switzerland.

Tyler Durden
Fri, 10/16/2026 – 05:45

Record Tanker Rates Leave Heavy Crude Stranded In The Americas

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Record Tanker Rates Leave Heavy Crude Stranded In The Americas

Authored by Irina Slav via OilPrice.com,

  • Record tanker rates are creating a heavy crude glut in the Americas, pushing Canadian, Colombian, and Ecuadorian crude prices down roughly $10 per barrel.

  • Shipping costs have surged to $40 per barrel, making American heavy crude increasingly uneconomical for Asian and European refiners.

  • The global diesel crunch is set to persist, as tanker shortages prevent heavy crude from reaching markets where demand remains strong.

The Middle East crisis has driven tanker rates to all-time highs and created a shortage of vessels. This oil logistics problem is now causing a ripple effect, tipping the heavy crude market in North and South America into oversupply – while Asia and Europe grapple with a shortage of heavy grades.

Canada is producing over 5 million barrels of crude daily, most of it heavy crude. Some 4 million barrels daily of that goes south to U.S. refineries. Venezuelan production has also moved higher after the U.S. disposed of the country’s government and took control of the oil industry. According to Reuters, a lot of this heavy crude is stuck at home because of the record freight costs that have dampened appetite, pressuring prices in Canada, Colombia, and Ecuador. Venezuelan crude goes mostly to the U.S. Gulf Coast, so it is not as vulnerable to freight rate developments.

Prices for Canadian, Colombia, and Ecuadorian heavy crude have all shed some $10 per barrel in recent weeks, the report said, citing Argus data. All the flagship grades are now trading at the lowest in six weeks, with Western Canadian Select reaching $74 per barrel last week, before rebounding to $79.50 at the time of writing.

Ecuador’s flagship heavy crude grade, Oriente, has also recovered, after dropping to $76 per barrel last week, now trading at over 84 per barrel. Colombia’s Vasconia was the most expensive of the three last week, trading at $84 per barrel, and it has also probably gone up this week, as all oil gains on the flurry of tanker attacks in the Strait of Hormuz.

These prices cited above seem quite enticing on a market where Russian Urals fetches close to $120 per barrel, and Iran Light sells for $104 per barrel, despite the U.S. Navy blockade. However, these prices exclude freight costs and insurance, and these have reached up to $40 per barrel of crude, at a time when heavy crude is in especially strong demand because of the global diesel crunch. Heavy crude yields more diesel than lighter grades, which is quite a hot topic right now.

“You need a ship and the price of ships are going up, and the availability ships are going down,” TP ICAP analyst Scott Shelton told Reuters. Global tanker rates have soared this year due to Middle Eastern producers taking to ship-to-ship transfers outside the Strait of Hormuz. For this, they use shuttle tankers, including smaller carriers, to sneak the oil through Hormuz and then load it on supertankers in the Gulf of Oman. As a result, supertanker rates from the Gulf to Asia hit $1.4 million daily earlier this month.

Shipping costs on the route from the U.S. Gulf Coast to Europe, meanwhile, have surged to $46 million in total, equal to $24.50 per barrel of crude. That compares to $6.5 million, or some $4 per barrel, before the war. The price is even higher on the route from the Americas to Asia, at over $80 million or $40 per barrel. It is little wonder why refiners in Europe and Asia are balking at the price and staying away from purchases.

This combination of factors suggests that the diesel crunch is not about to go away anytime soon. With heavy crude barrels stuck in the Americas because of freight costs, and few alternative suppliers of the same scale as Canada, for example, the market imbalance appears set to stay for a while. As long as there are so many vessels tied up in ship-to-ship transfers, freight costs are unlikely to move down meaningfully enough to stimulate cross-Atlantic demand for more heavy crude.

Tyler Durden
Fri, 10/16/2026 – 05:00

Nearly Half Of Muslims & Jews Consider Leaving France If Le Pen Wins; New Poll Finds

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Nearly Half Of Muslims & Jews Consider Leaving France If Le Pen Wins; New Poll Finds

Authored by – Remix News Staff – via Remix News,

Nearly half of Muslim and Jewish respondents in a major French poll say they would consider leaving the country if Marine Le Pen wins the 2027 presidential election, according to an exclusive Ifop survey for the magazine Marianne.

The poll found that 46 percent of respondents identifying as Muslim would contemplate “leaving France to settle in another country” under a Le Pen presidency. Of those, 20 percent said they would “certainly” take that step. By comparison, 21 percent of the overall population expressed a similar willingness to leave.

The figure is part of a broader set of findings on identity, secularism, and anticipated reactions to a National Rally (RN) victory. Eighty-one percent of Muslim respondents believed a Le Pen win would lead to a rise in discrimination against their community. Twenty-seven percent said they would consider concealing their religious identity in daily life, including 18 percent who would stop wearing the veil in public.

Similar sentiments appeared in other groups polled.

Forty percent of the youngest cohort of French voters, 43 percent of France Unbowed (LFI) voters, and 44 percent of Jewish respondents said they would consider leaving. The survey also recorded elevated support for civil disobedience in some cohorts. For instance, substantial shares indicated they would refuse to respect laws they viewed as unjust.

Notably, while Le Pen has been antagonistic towards Islam in France, she has often cast herself as a protector of Jewish life in the country.

In 2024, she said, “The best shield for French people of the Jewish faith is the National Rally. It is the only movement that has the will, the conviction and the means to fight Islamist fundamentalism, which is the major danger facing them.”

Yet, nearly as many Jews said they would leave the country as Muslims.

François Kraus, director of the Politics and Current Affairs division at Ifop, described the results: “The arrival in power of the candidate favored by the polls risks creating significant obstacles and generates high levels of fear and a sense of insecurity.”

The National Rally has long advocated tighter controls on immigration, greater priority for French nationals in housing and employment, and restrictions on Islamic veiling in public spaces. Le Pen has indicated she would not impose an immediate ban on the veil upon taking office but would put broader restrictions to a national referendum.

Previous Ifop work has documented rising religiosity and support for more rigorous interpretations of Islam among younger French Muslims, including significant shares prioritizing Islamic norms over French civil law on issues such as inheritance or ritual slaughter in certain scenarios. Remix News reported on this poll last year.

Figures on the right treated these results as evidence of failed integration and the dangers of demographic change.

Currently, Le Pen has frequently led first-round voting intention polls, making her the favorite to win the presidential election.

It is important to note that many groups claim they will leave a country if their preferred candidate does not win an election, but actually leaving is an entirely different story. The 46 percent figure for Muslims and 44 percent for Jews is only an expressed willingness or contemplation in a hypothetical scenario, not concrete plans to leave France.

The reality is that family ties, employment, and economic realities mean that leaving is far harder in practice.

Tyler Durden
Fri, 10/16/2026 – 02:00

Tesla’s Flying Car Is Real!

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Tesla’s Flying Car Is Real!

Summary:

  • Tesla Roadster Production Set for 2028 (yet another delay) 
  • Tesla Roadster Flies 
  • Imminent test of the Tesla Roadster with thrusters
  • Elon has taken the stage
  • Tesla Roadster reveal

Tesla’s Roadster demonstration showcased thruster-assisted barrel rolls over vehicles and 0-60 mph in under one second.

But Musk also revealed another delay, with production now slated for 2028.

Roadster Achieves 0-60MPH Sub 1 Second 

New View Of Roadster

Tesla Roadster Clears Multiple Vehicles 

Flying Cars Are Real

Tesla Roadster Revealed

Elon Has Entered The Stage

First Scenes From Test Area

Tonight’s Tesla Roadster Reveal

Elon Musk is calling tonight’s Tesla Roadster reveal the “greatest product demo of all time” and expects the “whole world will watch this.”

Tesla first unveiled its long-delayed Roadster as a prototype in 2017 with a $200,000 price tag and expected to enter production by 2020. Polymarket now assigns a 33% probability that it will be released by the end of 2027.

Tonight’s planned demonstration at SpaceX’s testing facility in McGregor, Texas, is expected to begin at 8:55 p.m. ET and will feature a remotely operated prototype equipped with custom-built rocket thrusters.

A separate Polymarket contract, “Will the Tesla Roadster fly for 1s+?”, prices in a 68% chance of that happening tonight.

Musk told top podcaster Joe Rogan during an October 2025 interview that the upcoming demonstration would be “unforgettable,” adding, “Whether it’s good or bad.”

The Information reported in mid-August that the Roadster would have limited “flying” capabilities, using SpaceX cold-gas thrusters to hover.

“New Roadster is beyond movies, beyond imagination, beyond human, yet still made by humans on Earth,” Musk wrote on X earlier this morning.

In other news, Barclays senior autos analyst Dan Levy published a note this morning on the prospects of an upcoming Tesla-SpaceX merger, in which he said:

The possibility of a Tesla/SpaceX merger has increasingly become the consensus expectation, as widely highlighted by media reports. Even Elon Musk has publicly alluded to a combination: On the most recent Tesla earnings call, Elon Musk pointed to “more and more overlap” between Tesla and SpaceX, and in an interview at the All-In Summit last month, he noted, “With all this collaboration, on so many levels, who can imagine what action one might take when there’s so much close collaboration in so many areas.”

Levy expects a merger announcement ahead of Tesla’s annual general shareholder meeting in December 2026.

Tyler Durden
Thu, 10/15/2026 – 23:35

The Coming Food Crisis May Look Nothing Like A Crisis Until It’s Too Late

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The Coming Food Crisis May Look Nothing Like A Crisis Until It’s Too Late

Authored by Madge Waggy via MadgeWaggy.blogspot.com,

Just after the morning deliveries and before the first customers, a supermarket looks both ordinary and slightly deceptive. The lights are on, the coolers hum, and the shelves hold exactly what they held last week. Strawberries show up in February, lettuce comes from ground that was desert two generations ago, and on the same shelf beef raised across three states sits beside bread baked from grain cut a thousand miles away. Someone pushing a cart through the whole store can finish the errand without once wondering how any of it got there.

That is part of why the American food supply is so easy to take for granted. Nobody praises the trucking fleets, the cold storage, the seed suppliers, or the packing houses, because a thing that rarely fails stops being noticed. Two or three generations have grown up treating food the way they treat running water: as a fact of the world, unremarkable and about as interesting.

Reliability, though, is not the same as resilience, and the two are easy to confuse because the difference only appears when something goes wrong. A farm can still bring in a decent harvest during a dry year, until that dry year coincides with expensive fertilizer, a thin labor crew, and a delayed shipment. Shelves can stay full while carrying fewer brands at higher prices. The country is not running out of food. What it may be running out of is the cushion that once let a bad season pass without anyone noticing.

This article rests on three kinds of claims, and it is worth keeping them apart. First come the demonstrated problems: measured facts about the age of farmers, the drawdown of aquifers, the concentration of meatpacking, the cost of inputs, the price of food. Then comes an interpretation, which is mine and can be argued with: the suggestion that these separate trends, taken together, are eroding the system’s ability to absorb a shock. Last come scenarios, which are conditional rather than predictive, describing what could happen over the next decade or two if several pressures arrive at once and little changes. The text will say which is which as it goes.

What follows is not a forecast of collapse. It is an attempt to look past the grocery aisle at the people who grow the food, the water and soil they depend on, the infrastructure that moves it, and the habits of a public that has rarely had a reason to worry.

A system built to keep moving

American food logistics are organized around movement rather than storage. Warehouses are designed for turnover, distribution centers run on delivery windows that assume trucks arrive when promised, and most supermarkets carry only a few days of stock, though the exact figure varies by product; fresh produce and bakery items turn over within days, while canned and frozen goods sit much longer. Very little slack exists by design, because idle inventory costs money and motion does not.

This is what the industry calls just-in-time, and for decades it worked remarkably well. Waste fell, prices stayed low, and a range of food reached the shelf that no earlier era could match. The bill for that efficiency comes due only under stress, and when it does, the buffers get spent quickly. A single failed truck route can empty a produce section for days, and one plant going dark for repairs can thin meat counters across several states. Fewer alternate paths run through the network than most people assume, and the paths that do exist tend to funnel through the same handful of junctions.

Older food economies leaned on redundancy instead. Grain sat in silos, towns fed themselves, and a surplus worked as insurance against a bad year. In the modern version, surplus reads as waste and storage reads as cost, so redundancy survives mainly where it happens to escape the spreadsheet. What remains runs beautifully when conditions hold and begins to creak the moment several things break at once. The efficiency is real, and so is the fragility that comes with it.

Concentration belongs to the same design. A small number of plants handles an enormous share of the nation’s meat, grain, and packaged food. Four companies – Cargill, JBS, Tyson, and National Beef – slaughter roughly 80 to 85 percent of the country’s fed cattle, a figure the Government Accountability Office put at about 85 percent in a 2021 report and which has moved little since. The top four pork firms account for roughly two-thirds of hog slaughter, and poultry is more concentrated still. On the grain side, four international traders, often nicknamed the ABCD firms, have long handled a large share of world flows, with American exports passing through a shrinking number of elevators and ports.

When the packing sector sneezes, the meat case in every region catches cold. The clearest recent example came in the spring of 2020, when COVID-19 tore through crowded slaughterhouses. A Smithfield pork plant in Sioux Falls, South Dakota, processing something like 4 to 5 percent of the nation’s pork at the time, shut down after becoming one of the largest single-source outbreaks in the country. A Tyson beef plant in Columbus Junction, Iowa, closed. JBS and National Beef idled facilities in Colorado and Kansas. At the peak, beef and pork production fell by roughly a quarter, and the shock moved in both directions at once: prices paid to farmers collapsed, sometimes to the point that hogs were euthanized for lack of processing capacity, while retail meat prices climbed. The same disruption reached producers and consumers from opposite sides, which is what concentration does. It transmits a local failure across the whole chain.

None of this makes consolidation irrational. Real reasons stood behind it: economies of scale, thin margins, decades of mergers, and a regulatory climate that looked kindly on size. A large plant can slaughter more animals per hour at lower cost than a small one, and consumers have benefited through cheaper meat. What the system traded away was its detours, and with them the ability to route around a failure.

Leverage hides inside that structure without anyone seizing it deliberately. It emerges on its own from squeezing production and transport into fewer hands in the name of cost. Abundance becomes conditional rather than guaranteed, and a small number of failures can move food away from millions of tables at once.

Interpretation begins here. It is tempting to say that just-in-time always made the system fragile, but that oversimplifies. Grocery stores have always carried limited shelf stock; a butcher in the 1950s did not keep weeks of beef either. What has changed is the network behind the shelf, with fewer plants, fewer carriers, fewer alternate routes, and thinner reserves at every layer. The modern system is not more fragile because it moves goods. It is more fragile because the number of places where a single failure can stop the flow has grown while the number of ways around those places has shrunk.

Rebuilding redundancy is slow. Storage, local processing, and alternative routes take years to restore once they have been allowed to disappear, and the disappearance happens on a schedule of cost savings rather than of visible shortages, so the consequences arrive long after the decisions that caused them. A regional plant closed in 2015 to save money does not show its cost until a disruption in 2025, by which point the plant is a parking lot.

One wrinkle rarely enters the discussion. Efficiency and resilience are not opposites so much as competing goods, and the trade-off stays invisible because its cost is deferred. Every dollar saved by running leaner shows up immediately on a balance sheet, while every unit of resilience given up materializes only in a bad year. In good years the lean system looks strictly superior, which is why it keeps winning and why the arguments for holding reserve keep losing. The logic is not wrong. It is incomplete, because it prices the present and discounts the future.

That asymmetry explains a great deal about how the system got where it is. Managers are rewarded for the savings they can demonstrate and only occasionally punished for the resilience they quietly surrender. A warehouse that keeps a little extra stock looks wasteful until the day a truck is late, and by then the person who approved the extra stock may have moved on. Over decades these small decisions compound in one direction, and the system ends up leaner than anyone consciously chose.

The same logic runs through transportation. Trucking moves the large majority of American freight by weight, commonly estimated at around 70 percent, and the industry has cycled through driver shortages for years, with trade associations citing gaps in the tens of thousands. Rail, which hauls grain, fertilizer, and other bulk goods, has consolidated down to a handful of Class I carriers, and service complaints spiked in 2022 as the railroads cut crews and lengthened trains in pursuit of their own efficiency. Ports handle imports of everything from coffee to out-of-season produce, and when they clog, as Los Angeles and Long Beach did through 2021, the delay propagates through the whole country.

None of these links is broken. Each is simply running with less give than it once had, and give is exactly what a shock consumes.

The people and resources behind the harvest

The hands working the land are older than they used to be, a pattern any drive through farm country will show and the numbers confirm. According to the 2022 Census of Agriculture, published by the USDA’s National Agricultural Statistics Service, the average age of an American farm producer has reached 58.1 years, and the share past 65 keeps rising. Fewer young people are stepping in behind them.

The reasons are not mysterious. Farming means heavy debt, expensive equipment, volatile input prices, and weather that no longer keeps its word, and a single ruined season can erase years of work. Against a steady city paycheck, that is a hard case to make to someone choosing a career. So when growers retire, the land often fails to pass to new hands. It gets bought by larger operations, cut into subdivisions, leased for something other than food, or simply left idle because keeping it in production no longer pays.

The scale of the shift is easy to understate. The 2022 census counted about 1.9 million farms, down from roughly 6.8 million in 1935, and the long decline has never really reversed. Land in farms, a category that includes pasture and range as well as cropland, totaled about 880 million acres in 2022, down slightly from 2017. Cropland proper is smaller, on the order of 300 million acres, and it matters not to blur the two, since a ranch in Nevada and a cornfield in Iowa are counted under the same headline even though they function very differently. What matters for the food supply is the cropland, and the trend there is gentler than the farm-count trend, though still downward at the edges.

A second pattern sits underneath the averages. Most farms are small, and most production comes from a few of them. Roughly 9 percent of farms, those with sales above one million dollars, account for the bulk of the total value of what American agriculture produces, while the bottom half of farms by sales contribute only a sliver. The median farm household often earns more from off-farm work than from farming itself. This is less a sign of failure than a structural fact: the business of growing food has concentrated into fewer, larger, more capitalized operations, while the small farm survives as a part-time pursuit.

The consequence for resilience is not obvious. A large operation can invest in irrigation, storage, and equipment that a small one cannot afford, which arguably makes it more robust. But the same operation is also more exposed to a single shock, whether a bad commodity price, a failed crop, or an interest-rate move on a large loan, and the loss of many small, diversified farms removes a kind of distributed redundancy that the system once had without anyone counting it.

A second loss draws even less attention, and it is buried inside that shift: knowledge leaves with the people who hold it. When to plant a difficult crop, how to read a particular patch of soil, which pests arrive in which week, how to carry a marginal field through a dry August. None of that lives in a manual. It passes down through generations and goes quiet when a farm changes hands. Machinery can replace some of it and not the rest, and the part it cannot replace is often the part that matters most when conditions turn strange.

The coming handover is substantial. Farmland is old, and a great deal of it will change hands in the next couple of decades as the current generation retires. Estimates vary, but the American Farmland Trust has projected that on the order of several hundred million acres could transition ownership in the next twenty years, and whether that land passes to working farmers or to developers and investors will shape what the countryside looks like. When a farm is sold to a larger neighbor, the land stays in production but the family knowledge often does not transfer with it; when it is sold for houses, the production stops altogether.

Small fruit growers in Washington state offer one illustration. Orchards there have long depended on skilled hand-picking, and older growers perfected a judgment about ripeness, timing, and handling that no machine has fully matched. As those growers retire, the expertise thins, and yields can suffer even though the land itself is unchanged.

Labor enters the picture next. Much of American agriculture runs on seasonal work, and seasonal work answers to biology rather than to anyone’s schedule. Fruit and vegetables ripen inside narrow windows, and missing the window loses the crop no matter how good the growing season was. Labor gaps have already left produce rotting in fields for want of pickers. The work leans heavily on immigrant crews, and a large share of hired farmworkers are foreign-born, with a substantial minority lacking legal status. The estimates vary, but the foreign-born share is well above half in many crops. Any kink in that pipeline turns directly into food left to spoil in the sun.

The H-2A visa program, which brings in temporary agricultural workers, has grown dramatically as a result, from roughly eighty thousand certified positions a little over a decade ago to several hundred thousand today. That growth is itself a signal: American agriculture increasingly cannot staff its harvests from the domestic labor pool alone, and the program that fills the gap is subject to political weather.

Timing is what makes the labor question brittle. A factory can pause a line and restart it later without losing much. A field cannot. Crops do not wait for a policy debate to settle and do not care what the calendar says. A shortage does not simply reduce the harvest; it reduces the harvest at the exact moment the crop is worth the most, because fruit that was perfect on Monday is mush by Friday. Processing plants that expected a delivery sit idle, freight schedules slip, and availability drops just as demand peaks.

Tomatoes must be picked and moved within a short span before they soften. Berries tolerate almost no delay and almost no rough handling. Lettuce and leafy greens are cut in tight windows and spoil quickly. Each depends on crews arriving exactly when they are needed, so any disruption, whether a change in immigration policy, an economic downturn, or a public health emergency, lands directly on harvest timing.

On top of labor sits cost. Modern growing depends on a web of inputs most people never picture: diesel for machines and freight, fertilizer produced through energy-hungry chemistry, spare parts drawn through global supply chains, irrigation tied to water that keeps moving, and packaging hostage to industrial cycles. Fertilizer prices in particular spiked in 2021 and 2022, in some cases doubling or tripling, driven by natural gas costs and the war in Ukraine, since nitrogen fertilizer is essentially made from natural gas. Diesel followed oil, and farm debt has climbed past half a trillion dollars.

When those costs surge, farmers do not usually fold right away. They get careful. They plant fewer acres, walk away from marginal ground, choose crops that demand less labor and carry less risk, and cut output to protect the balance sheet. Every decision is sensible from where the grower stands, and every decision narrows the national supply a little further.

For a customer, the shrinkage stays invisible for a season or two. It accumulates quietly, spread across regions and years, until the gap reaches the shelf and nobody can say where it came from. Four adjustments recur: fewer acres planted, marginal land abandoned, a shift toward low-risk crops with steady demand, and lower overall output to stay solvent. Each move is rational on its own, and collectively they shave both production and resilience at the same time. No farmer sets out to weaken the food supply. The weakening falls out of thousands of private decisions made for private reasons, none of them coordinated, all of them pointing the same way when costs keep rising.

Consumers rarely see one piece of this, and it deserves its own moment because it reframes who pays. The share of the retail food dollar that reaches the farmer is small and has been small for a long time, on the order of fifteen cents by the USDA’s own accounting, with the rest absorbed by processing, packaging, transport, marketing, and retail. When retail prices rise, the increase does not flow evenly back to the farm. During the 2020 meat disruption, the gap between what farmers received and what shoppers paid widened sharply, and much of the spread stayed with the middle of the chain even after production recovered. The point is not that anyone is cheating. It is that the farm is a small and vulnerable node within a long chain, and shocks that look like a food problem from the aisle often register at the farm as a price collapse.

Water, soil, and weather

Some of the pressure comes from the ground and the sky, and the mechanisms are worth separating, because they are often lumped together into a vague sense of climate without anyone distinguishing what is actually happening.

Start with water. The Ogallala Aquifer, which underlies parts of eight plains states from South Dakota to Texas, supplies a significant share of American irrigation, often cited at around 30 percent of the nation’s irrigation groundwater, and it has been declining for decades. The decline is uneven: some areas have dropped by more than a hundred feet since large-scale pumping began, while others have been steadier. Kansas, which depends heavily on the aquifer, has recorded some of the steepest losses, and wells have run dry in parts of the Texas Panhandle. The depletion is patient rather than dramatic. Where water becomes uncertain, planting becomes a bet, and land without reliable water cannot reliably feed anyone. Over-extraction leaves its own damage: sinking ground, rising salinity, falling yields.

California’s Central Valley tells a related story with different mechanics. The valley is the core of a state that grows a large share of the nation’s vegetables and tree fruit, and it leans on both surface water and groundwater. During droughts, farmers pump harder, and the aquifer beneath the valley has dropped in some places dramatically, causing the ground itself to sink, with subsidence that has damaged canals and roads. The state’s Sustainable Groundwater Management Act, passed in 2014, requires the most stressed basins to reach sustainability by 2040, which sets up a genuine reckoning: bringing pumping into balance will likely mean taking a substantial amount of land out of irrigated production. That 2040 deadline is one of the few hard dates in this story, and it is worth remembering when the later scenarios arrive.

The Colorado River adds a third case. The river’s flow is allocated among seven states and Mexico under a compact written in 1922, when the river was running higher than it does today, and the allocations exceed the actual supply in most years. A long drought, punctuated by negotiations and emergency cuts, has forced the basin’s users to reduce withdrawals, and the lower basin states have committed to significant temporary reductions. The river irrigates a great deal of winter vegetable production in Arizona and California, so what happens on the Colorado reaches dinner plates across the country.

Soil comes next, and the common shorthand that chemical fertilizer erodes fertility needs a little care. The heavier problem is more physical than chemical. Decades of intensive tillage have stripped organic matter and broken up soil structure, and degraded soil holds less water, resists erosion less well, and recovers more slowly. Fertilizer can mask some of that loss by supplying nutrients directly, which is why yields have stayed high even as the soil underneath has thinned. It is a patch rather than a repair, and ground that has been mined rather than farmed does not recover on its own. Rebuilding it takes cover crops, rotation, and patience, the kind of patient work a system tuned to quarterly results does not always reward.

The numbers here are hard to pin precisely, but the direction is well established. Soil erosion on American cropland runs to roughly one and a half to two billion tons a year by common estimates, most of it tolerable in any given year but cumulative over decades. Cover crops, one of the main remedies, are used on a small minority of cropland, on the order of five percent, though growing. No-till and reduced tillage are more widespread but uneven. The farmer and writer Wendell Berry called soil “the great connector of lives, the source and destination of all,” and the line reads less like poetry and more like a specification once you understand what healthy ground actually does.

The weather itself comes last. Farmers once leaned on patterns inherited across generations, reading rainfall, planting windows, and the rough shape of a normal season from what their parents and grandparents had seen. That inheritance is coming apart, though coming apart is itself a metaphor, and the concrete changes are more useful. From 2000 into the early 2020s, southwestern North America experienced a megadrought that researchers, in a widely cited 2022 study in Nature Climate Change, judged the worst in at least twelve hundred years. Global average temperatures set records in 2023 and again in 2024. The USDA redrew its plant hardiness zone map in 2023, and much of the country shifted warmer. Flash droughts, sudden and intense, have become more common, and the extremes have grown more extreme, with heavy downpours in some places, prolonged heat in others, and the same region sometimes seeing both within a year.

Gradual change is manageable. Volatility is harder, because when the pattern stops being trustworthy, planning turns into guesswork. A grower can adapt to a warmer average by planting earlier or switching varieties. A grower cannot easily adapt to a season that swings from flood to drought and back, because the equipment, the contracts, and the calendar are all built around a rhythm that no longer holds. Heat that once came in predictable waves now lands at odd hours, stressing animals and trimming yields in ways growers struggle to anticipate.

The 2021 Texas freeze, Winter Storm Uri, offered a preview of how these pressures interact. The storm knocked out power and water across the state, froze citrus and other crops, and disrupted food processing and transport, all at once. It was a weather event, but its damage ran through the same channels that every other pressure uses: energy, water, labor, and logistics.

Each factor alone would be survivable. Together they compound, and a system never designed for persistent unpredictability feels the strain in every decision a grower makes. It is also worth noting that climate is not a single lever. A warmer average, a drier aquifer, and a more volatile season are three different problems with three different remedies, and conflating them makes the response vaguer than it needs to be.

The distance between farm and table

Food in this country routinely crosses thousands of miles between field and fork, which requires cheap fuel, available drivers, working highways and rail, and ports that keep flowing. A snag anywhere delays everything downstream. Often the food exists and simply cannot arrive in time, a distinction that matters more than it sounds, because shortages frequently erupt not because nothing was grown but because what was grown could not move. A household staring at a bare shelf has no way to tell the difference.

The idea of food miles is often overstated, since a tomato trucked from Mexico can carry a smaller carbon footprint than one grown in a heated local greenhouse, but distance matters for a different reason: it multiplies the number of things that can go wrong. Every additional mile is another chance for a breakdown, another border, another handoff. A short local chain has fewer failure points by construction, even if each one is not inherently more reliable.

Four weak points carry most of the risk. Fuel spikes make every mile costlier and push marginal routes toward unprofitability. Driver shortages limit how much can be delivered even when the trucks exist, and the trucking industry has cycled through shortages for years, with the American Trucking Associations estimating gaps in the tens of thousands and warning they could grow. Port congestion stalls the imports and exports the domestic system depends on. And aging infrastructure, from bridges to rail lines to terminals older than most of the people using them, raises the odds of a breakdown along a route with no realistic alternate.

The 2021 port crisis is instructive. Backed-up container ships off Los Angeles and Long Beach, driven by a surge in imports and pandemic-era bottlenecks, delayed everything from furniture to coffee and forced retailers to reroute and ration. The ports eventually cleared, but the episode showed how a single chokepoint on the coast can ripple into shelves two thousand miles inland. Rail had its own version of the same problem in 2022, when service deteriorated badly enough that regulators held hearings and shippers complained of missed deliveries and unpredictable schedules.

Cold chain adds a layer most people never consider. Produce, meat, dairy, and frozen goods all depend on an unbroken sequence of refrigerated storage and transport, and a break anywhere, whether a power outage at a warehouse or a failed compressor on a truck, can spoil a whole load. The cold chain is one of the genuine engineering achievements of the modern food system and one of the most brittle, because it has no tolerance for interruption.

The infrastructure itself is old. A large share of American bridges are past their design life, and the rail network, while privately owned and generally well maintained on the main lines, has seen deferred maintenance on the margins. The country has underinvested in the physical layer of its food system for decades, not because anyone decided to, but because maintenance is invisible and unglamorous while new projects are visible and political.

Fuel deserves a special note, because it sits underneath everything else. Diesel powers the trucks, the trains, the tractors, and the ships that move food, and it also powers the fertilizer and the irrigation pumps. When diesel prices spike, as they did in 2022, the cost propagates through every link at once, and it hits the most marginal operators hardest, meaning the small trucking firms, the family farms, and the regional distributors, which is to say exactly the nodes that provide redundancy to the system. A fuel spike does not just make food cost more. It quietly removes some of the smaller players who would otherwise have absorbed a shock.

None of these needs to fail completely to matter. Each only has to slow down, and the delays stack. A driver shortage, a port backup, and a fuel spike in the same quarter do not add up to three problems. They multiply into one much larger one, because the system has no slack to absorb them in sequence.

What consumers notice first

The softest vulnerability may live inside people’s heads, but it is worth being precise about what the public actually experiences, because the easy claim that Americans have never known scarcity is only partly true and can mislead.

It is true that the national system rarely runs out. Shelves are almost always full, and a shopper in a well-served suburb has to try hard to encounter an empty aisle. Scarcity in America is less a question of whether stores have supplies than whether those supplies remain affordable and accessible. According to the USDA’s own annual report, food insecurity affected roughly 13.5 percent of American households in 2023, on the order of eighteen million households, up from around 12.8 percent the year before. That is a large minority for whom the question of dinner is not rhetorical, even as the national system distributes plenty. The two facts sit together: the system is abundant, and a substantial share of households struggle to afford it.

For the argument, that distinction matters. A household already stretching to afford food has no buffer to absorb a price increase, so the same trend that a comfortable household experiences as mild inflation registers for them as a tightening. Food-at-home prices rose by roughly a quarter between 2019 and 2023, one of the sharpest cumulative increases in decades, and while wages eventually caught up in the aggregate, the catch-up was uneven, and the shock landed first on those least able to absorb it.

Food deserts add a spatial dimension. The USDA has defined food deserts as areas with limited access to affordable, nutritious food, and by its 2017 count, some six thousand census tracts qualified, affecting roughly nineteen million people. The urban kind tends to lack supermarkets within walking distance; the rural kind tends to lack them within a reasonable drive. A national system that delivers to warehouses does not automatically deliver to a neighborhood without a store.

Beyond price and access, the earliest visible symptom of a thinning system is shrinking choice. Aisles do not go bare, but brands evaporate, products get swapped for cheaper stand-ins, and seasonal favorites become permanent absences. Organic options blink out for stretches. Cuts of meat contract toward the standard. Portions quietly shrink, the phenomenon often called shrinkflation, where the package gets smaller while the price holds or rises. Shoppers adapt by substituting and absorbing the cost, and the adjustment is quiet enough that the range of what is available can shrink in real time without anyone quite noticing.

Behind the shelf, the same logic runs at the level of the field: growers plant fewer varieties to hedge risk, softer produce crowds out labor-hungry kinds, and small diverse farms fold into larger, blander ones. Each choice is sensible on its own. Together, they strip out the diversity that resilience is built from.

The adaptation itself is the trap. People are remarkably flexible, and in a system like this, that flexibility doubles as a blindfold. Americans will not read thinning as scarcity. They will drift, shifting diets around what is on hand, accepting smaller portions or unfamiliar cuts, trading fresh food for processed stand-ins, and normalizing higher prices until they feel like weather. What once would have rung an alarm now shows up as a mild annoyance. By the time the public recognizes the system as thinner and more brittle, much of the damage will already be set, and reversing it will take longer than anyone wants to admit.

This is where the argument becomes genuinely uncomfortable, because the adaptiveness that protects people in the short run is also what allows the erosion to go unchallenged. A country that panicked at every shortage would force fixes; a country that shrugs and substitutes will tolerate a long slide. Every individual adjustment is reasonable, which is exactly why no single person ever feels the moment the baseline drops.

There is a deeper point about expectations. What people call normal is not a fixed standard but whatever they last got used to. A shopper in 2025 whose baseline was set in 2020 will experience a narrower, pricier store as normal rather than degraded, because they never knew the wider version. This ratchet runs in one direction: baselines rarely reset upward. Once the variety is gone and the price is absorbed, the lower level becomes the reference against which the next reduction is measured, and each generation inherits a slightly thinner normal than the last.

When risks compound

The trouble is never any one pressure. It is that they run in the same season, through the same narrow channels, and the risks do not so much add as amplify one another when they arrive together. A grower can usually survive a dry year, a distributor can usually survive a fuel spike, and a retailer can usually survive a labor gap, but even alone a severe drought or a major processing disruption can hurt, and when several arrive at once the system runs out of room to absorb them one at a time, having already spent its cushion on the first.

The 2020 meat disruption is the cleanest example, because it combined a health shock, a labor shock, and a concentration shock, and produced effects that no single cause would have generated. The 2021 Texas freeze is a second, combining weather, energy, and logistics. Neither was a food crisis in the sense of empty stores nationwide, but both showed how quickly a local event can travel when the network is thin.

Some places are more exposed than others, and the list is not exhaustive. The Central Valley leans on water-hungry crops and a shrinking aquifer, with a hard 2040 groundwater deadline approaching. The Ogallala plains depend on irrigation that is slowly running down. The Midwest answers to drought and tired soil. The South faces hurricanes and heat that punishes livestock. Cities depend on long supply chains with almost no slack built in.

An irony sits here worth stating plainly. The most exposure is now carried by regions that once fed themselves locally, while cities stay chained to a central system that keeps growing less sturdy. The two fail in opposite ways. Cities lose access first, producing almost nothing of their own and relying entirely on trucks and rail that can be delayed. Rural areas lose capacity first, because their land, water, and labor are the resources the system draws down, and the drawdown shows up locally long before it reaches a national statistic. Neither can bail out the other, since both draw from the same machinery.

Rather than repeat the whole catalogue, four things are worth holding in mind, because they are where the pressures actually meet:

  • The system has very little stored reserve, so a delay anywhere turns into a shortage somewhere else.
  • The most critical nodes, from packing plants to ports, are few enough that one failure travels nationally.
  • The natural base, meaning water and soil, is degrading slowly and unevenly, with the damage concentrated in the regions that produce the most.
  • The public has little reserve and adapts quickly, which delays any political pressure to fix the problem.

The point of gathering them is not to list ten separate troubles but to show one system with several places it can give.

What the next decades might bring

Here the ground shifts from measurement to scenario, and it is important to say so. Nothing in this section is a forecast in the strict sense. It is what could happen if the present trends continue and little is done to reverse them. Different assumptions produce different outcomes, and a determined policy response could change much of it.

Take the nearer term first. If several stressors converge within a few years, whether a prolonged drought in the West, a heat wave in the South, a fuel spike, a labor shortfall, or a plant failure or two, the plausible result is not collapse but a squeeze. Shelves stay populated, but with less variety. Seasonal fruits and vegetables get replaced by processed alternatives. Meat narrows toward standard cuts while specialty items thin out. Prices rise steadily over months rather than in a single shock, reshaping consumption without a moment anyone can point to. Restaurants simplify menus, and food deserts, already present, could widen if distribution costs push marginal stores out.

None of that is certain, and the word likely should be used carefully. The reduction in variety is plausible because the mechanisms behind it are already visible. The expansion of food deserts is a reasonable expectation but not a demonstrated trend. The disappearance of specialty items is a guess. What can be said with more confidence is that the system will keep running while quality, variety, and reliability slip a notch, and that by the end of such a stretch Americans will have adapted without protest and will believe the changes ordinary.

Extend the line to 2040 and the picture sharpens without turning catastrophic, though the sharpening depends on the assumptions. The 2040 date is not arbitrary: it is the deadline California set for its most stressed groundwater basins, so a real, measurable contraction of irrigated acreage in the Central Valley is built into current law unless the law changes. On that basis, and on the continuation of the other trends, a scenario for 2040 might include stores that remain open but with narrower choice, seasonal produce that is largely imported or industrially preserved, meat consumption narrowed to standard cuts, prices that keep climbing in small steps, and rural areas facing deeper water scarcity and poorer soil. Urban populations would lean harder on processed food, and consolidation would continue.

The honest way to present this is as one scenario among several, not as a prediction. A faster transition to drought-tolerant crops, a serious national push on storage and local processing, or a technological surprise could all soften the picture. A run of bad years or a major geopolitical shock could sharpen it. What the scenario does is show the direction of travel if nothing changes, which is the useful thing to know.

What emerges, if the scenario holds, is not collapse but persistent contraction, in which abundance gives way to sufficiency, reliability to uncertainty, and variety to standardization. None of that is dramatic, and that is the point. A country can lose resilience for twenty years and feel almost nothing, because the loss shows up as a slightly worse version of normal rather than as a break.

Building resilience

The American food supply is not going to disappear. It is becoming less forgiving, however, and its weaknesses run together: concentration without redundancy, aging growers and vanishing knowledge, harvest labor on a knife’s edge, rising input costs, a more volatile climate, water running down, soil running out, freight that must never stall, and a public with little reserve. None of this points to a sudden rupture. The future of food in this country will more likely be written by slow subtraction than by a single event, if it is written by drift at all.

Most of the work would be expensive and slow, and the honest thing is to say so. Rebuilt slack in the form of storage and reserves would help, but storage costs money every year and pays off only in bad ones, which is precisely why it keeps getting cut. Restored local capacity, meaning regional processing, regional distribution, and more food grown closer to where it is eaten, would shorten chains and reduce the number of things that can go wrong, but it fights economies of scale and would raise some prices. Rotation, cover crops, and reduced tillage would protect the soil base, but they demand patience and sometimes lower short-term yields.

Policy can help, and it can also mislead. Subsidies exist and are large, but they have historically favored a handful of commodity crops and large operations, which shapes what gets planted and who survives. Crop insurance is valuable, since it softens the blow of a bad year, but it can also encourage planting in marginal places. Environmental rules get enforced unevenly, and water rights are politically contested, so allocation follows power as much as hydrology. The gaps are not secret; they are hard to close, because each lever sits with a different set of hands, and none of them coordinates with the others.

Technology can blunt some risk, and it would be wrong to dismiss it. Precision agriculture, drought-tolerant seed, better irrigation, and improved cold chain all help, and none of it is free. Capital, know-how, and infrastructure are needed, and smaller producers often cannot reach them, so the benefits pool where the money already is. Technology also cannot fix a social problem: no sensor restores a retired farmer’s knowledge, and no app replaces a harvest crew that did not arrive.

What would make the biggest difference is probably the least glamorous thing, which is treating resilience as something worth paying for in advance rather than regretting in hindsight. That means valuing the buffer, the spare plant, the local mill, the cover crop, and the extra warehouse, even when they look inefficient in a good year. It means measuring the system not by how cheaply it runs in calm weather but by how gracefully it fails in bad weather.

The hardest part is that resilience has no constituency. It has no ribbon-cutting, no dramatic rescue, no visible hero. A storage facility that quietly prevents a shortage is never celebrated, and a plant that stays open is never news. The rewards of redundancy are invisible precisely when they work, which is why they keep losing to the visible rewards of cutting costs. Changing that would require a shift in how the system measures success, and such shifts are slow.

The alternative is to keep adapting, keep shrugging, and keep calling each new reduction normal. That path is not catastrophic. It is a long, quiet slide, punctuated by a few bad years that everyone experiences as bad luck rather than as the bill coming due.

The margin

What makes the situation worth watching is not the drama it promises but the drama it withholds. The shelves stay full, the lights stay on, the strawberries keep appearing in February, and the system keeps running right up until the day it runs a little worse than the day before. By then the adjustment will already be underway, and most people will call it nothing at all.

There is no day when the country wakes up to a food crisis. There is only a sequence of ordinary weeks in which the margin gets a little thinner each time, and a population that adapts so gracefully it never quite notices what it has lost. The food is still there. The ease of having it is what is quietly going away.

If there is a single idea worth carrying out of all this, it is that abundance and resilience are different things, and the country has been measuring only the first. Abundance is what you can see on the shelf. Resilience is the room behind it, the part that only shows up in a bad year. For a long time the two moved together, which is why nobody learned to tell them apart. They have started to separate, and the separation is the whole story. What matters now is whether anyone notices while there is still time to close the gap, or whether the country simply adjusts, again and again, and calls the result normal.

Tyler Durden
Thu, 10/15/2026 – 23:10