Submitted by Thomas Kolbe

Finance Minister Lars Klingbeil is a sensitive character. Such personalities tend to react irrationally and extremely defensively to criticism. They are prone to resentment and quick retaliatory reflexes.

So it was only a matter of time before the Federal Court of Auditors, too, felt the cold anger of the thin-skinned Social Democrat. Late last year, criticism from the auditors was promptly followed by a budget cut imposed by the Finance Ministry. The move was meant as a public warning shot across the bow of the recalcitrant watchdog, which traditionally plays the role of post-mortem critic. This comes with the unpleasant habit of describing the state of public finances as they actually are — not as Berlin prefers to imagine them.

The Court’s budget was subsequently reduced from €52 million to €47 million, officially on efficiency grounds. What Klingbeil failed to achieve, however, was to silence the auditors entirely.

It has become a bad tradition: as in every year, the Court again warned of an ever-accelerating debt spiral and a fiscal policy that appears to have lost all restraint. The state is living beyond its means, said President Kay Scheller. On the contrary, one might reply: this state is living beyond our means.

The current draft budget foresees total spending of €630 billion, with nearly every third euro financed through borrowing. By 2029, another €850 billion in new debt is planned — pushing visible public debt to €2.7 trillion, or roughly 67% of GDP.

Unfortunately, the Court’s analysis of debt dynamics remains superficial. In its assessment, however, it aligns with recent criticism from the Ifo Institute.

Both institutions criticize how the state handles new debt. We know from Ifo analysis that roughly 95% of the funds from special off-budget vehicles have been diverted to cover deficits across various layers of the welfare state. Germany is not investing — and the private sector is now running on negative net investment, effectively consuming its capital base.

Dig deeper into Germany’s debt swamp and it becomes clear why Berlin consistently avoids the issue.

A recent Ifo paper calculated non-contributory benefits in the statutory pension system. Economists concluded that these hidden costs could amount to as much as 50% of GDP in the long run. This explains why the overstretched state apparatus now acts merely as a firefighter, no longer capable of maintaining infrastructure. Even Scheller’s call to raise the public investment ratio from 8% to 10% is unlikely to materialize.

One can almost be grateful that the Court of Auditors is among the few institutions still attempting to describe the fiscal reality. Yet even it avoids addressing the root causes — deindustrialization, overstretched public finances, and structurally broken budgets at all levels of government. Unsurprisingly, Scheller and his team also steer clear of politically sensitive issues such as open-border policies, which are pushing the welfare state toward implosion.

There is no mention of the costs of the self-destructive Ukraine war, nor any call to halt funding for the sprawling NGO complex or dismantle the green subsidy machine.

The debate misses the core issue. The state is operating an unlimited welfare machine while committing itself to building eco-socialist economic structures. Under such conditions, a return to a lean state is impossible.

Those calling for a return to sound fiscal policy without naming the underlying causes only make it harder to reverse the ideological crash course. Their superficial criticism suggests that the current trajectory can be maintained with cosmetic reforms. The design of the state itself is not to be questioned.

Pressure for change will only arise when rising public debt — largely financed through new bond issuance — drives up refinancing costs. If bond markets eventually turn against Germany’s debt binge, the European Central Bank will likely step in as lender of last resort, pushing inflation sharply higher.

Already, around 8% of federal spending goes toward servicing interest on the growing debt pile.

Meanwhile, the government has outlined how it intends to deal with the incoming debt crisis — by targeting households. Family co-insurance in public health care will be scrapped, as will income splitting for married couples. Inheritance taxes will be broadly increased, and expect debate over a wealth tax alongside significantly higher social security contributions.

Extraction via the CO₂ mechanism will intensify, and wealthy individuals and capable businesses will leave the country. This is not a theoretical scenario but the result of a political relapse into socialist ideology. The spiral of impoverishment is accelerating.

About the author: Thomas Kolbe, a German graduate economist, has worked as a journalist and media producer for clients from various industries and business associations. As a publicist, he focuses on economic processes and observes geopolitical events from the perspective of the capital markets. His publications follow a philosophy that focuses on the individual and their right to self-determination

Chinese exporters are finally passing on the pain – right as they’re experiencing a major shortage of a key industrial material. After years of cutting prices amid overcapacity and cutthroat competition, manufacturers are now raising prices on everything from swimsuits and ski suits to medical syringes and air conditioners. The culprit: the Iran war’s energy shock, which has sent oil-linked input costs skyrocketing and is now rippling straight through to global store shelves.

Customs data compiled by Trade Data Monitor and analyzed by Bloomberg reveal sharp year-on-year price jumps in March across more than a dozen categories of household goods – the first sustained reversal in a disinflationary trend that had helped keep a lid on inflation from the U.S. to Europe for nearly three years.

“I held off raising prices for as long as I could in March, but in the end I had no choice,” said Pang Ling, sales manager at a Shanghai-based medical catheter maker. “I panicked watching plastic costs climb almost every single day.”

Products reliant on rubber, plastic, and oil-derived chemicals were hit hardest. Syringes saw prices surge as much as 20%. Synthetic-fiber goods – including swimsuits, women’s trousers, and ski suits – rose in the low- to mid-single digits as polyester and fiber suppliers hiked prices daily. Home appliances faced a double squeeze from higher metals and semiconductor costs. Even as some sectors like toys cut prices under weak demand, the broader picture is clear: the era of ultra-cheap Chinese goods is ending.

The numbers tell the story. China’s export prices had been falling steadily since May 2023, shaving an estimated 0.3–0.5 percentage points off headline inflation in advanced economies, according to Capital Economics. That buffer is now vanishing. Bloomberg Economics says above-3% inflation in 2026 is “back in play” across the euro area, U.S., and U.K. – a dramatic reversal from pre-war forecasts of cooling prices. Goldman Sachs expects overall Chinese export prices to turn positive as soon as March data, due out around April 25.

A 10% rise in oil costs typically lifts Chinese export prices by about 50 basis points over the following year, with the peak impact hitting four to five months later, Goldman estimates. The full effect hasn’t hit consumers yet – many March shipments were ordered weeks or months earlier – but the pipeline is filling with higher costs.

The Ethane Shock: Why Plastic Prices Are Set to Soar

Nowhere is the pressure more acute – or more politically explosive – than in plastics.

As we noted earlier this week, China is facing a severe ethane shortage that is about to supercharge costs across the entire plastics supply chain. Ethane, a natural gas liquid, is the primary feedstock for producing ethylene, the essential building block for plastics used in everything from medical catheters and syringes to clothing fibers, packaging, and consumer goods.

For years, China relied heavily on naphtha and liquefied petroleum gas (LPG) from the Middle East. In February, just before the war, more than 50% of China’s naphtha imports and over 40% of its LPG purchases came from Persian Gulf nations. That supply line has now been severed for as long as the Strait of Hormuz remains blocked. China holds massive strategic petroleum reserves – 1.5 billion barrels of crude – but it has virtually no stockpiles of naphtha or ethane. Its petrochemical industry is suddenly, dangerously exposed.

The International Energy Agency warned last week that “petrochemical feedstocks display the most immediate effects of the war by far,” with Asian supply chains thrown into “disarray.” Naphtha-fed crackers still account for 57% of China’s ethylene capacity, compared with just 16% for ethane-based units.

Desperate for alternatives, Chinese petrochemical producers are turning to the United States in record volumes. Shipments of U.S. ethane are expected to hit an all-time high of 800,000 tons in April – roughly 60% above the monthly average – according to Chinese consultant JLC. Some crackers can switch to ethane, helping offset the naphtha and LPG shortfall.

But this lifeline comes at a steep and rising price. Ethane has become the preferred feedstock because it is cheaper and more stable than crude-linked naphtha right now – profits from ethane-based ethylene were tenfold those of naphtha as of April 15, JLC data show. New capacity, including Wanhua Chemical Group’s ethane unit and Sinopec Ineos’s multi-feed cracker, has also boosted demand.

The result? Polyvinyl chloride (PVC) – Pang’s key input – surged as much as 80% in March from pre-war levels and remains about 50% higher even after a partial pullback. With naphtha alternatives cut off and ethane imports surging, plastic resin and downstream product prices are poised to climb sharply in the coming months. Competition and weak domestic demand may limit how much Chinese firms can pass on, but the input-cost pressure is now structural, not temporary.

The timing adds a geopolitical layer. China’s buying spree comes just weeks before President Donald Trump’s planned mid-May visit to Beijing. U.S. energy exports are expected to feature prominently in talks — especially if the Iran conflict drags on. One year ago, during the height of U.S.-China tariff tensions, analysts openly debated the mutual dependencies: America’s need for Chinese rare earths versus China’s near-total reliance on U.S. ethane for its plastics industry. 

Via Remix News,

A move to end the EU-Israel Association Agreement has been struck down, led by objections from Germany, Austria, and Italy. The accord, in existence since 2000, has served as the framework for EU-Israeli relations pertaining to both trade and foreign policy, with a key pillar being Israel’s access to the markets of EU member states.

Last week, Spain, Ireland and Slovenia wrote a letter to the EU High Representative for Foreign Affairs Kaja Kallas, citing Israel’s decisions by Prime Minister Benjamin Netanyahu, as well as laws passed by its parliament and actions taken by its military.

It cited, most recently, the death penalty approved by the Israeli parliament as evidence of “systematic persecution, oppression, violence and discrimination exerted against the Palestinian population.”

“In such a grave situation, we call on the European Union to uphold its moral and political responsibility, and to defend the very core values that have underpinned the European project since its foundation,” they wrote.

Going even further, the letter highlighted that Israel has essentially broken its agreement with the European Union. “Not only a grave violation of fundamental human rights, but also a step backwards in Israel’s commitment to democratic principles, as underlined by your March 31 statement, and therefore a violation of Article 2 of the EU-Israel Association Agreement.”

Spain has cited Article 2 for more than two years to take action against Israel and attempt to invalidate the agreement.

“Bold and immediate action is required, and all actions must remain on the table. The European Union can no longer remain on the sidelines,” the letter concluded.

However, the ministers gathered at the  Foreign Affairs Council meeting in Luxembourg ultimately rejected the proposal.

German Foreign Minister Johann Wadephul called any move to suspend the agreement “inappropriate,” reports Politico, joined by his Austrian counterpart in a push for “critical, constructive dialogue.” 

Before the meeting, Italian Foreign Minister Antonio Tajani told reporters that “There are neither the numerical nor the political conditions” for such a measure to be taken.  

A partial suspension requiring majority approval would also not have passed, given Italy and Germany’s objections. According to Politico, Kallas did raise the possibility of targeted measures that do not dismantle the wider trade agreement and do not require unanimity, with Tajani reportedly supporting her on this. “I believe it is better to sanction individually those responsible, I am thinking of violent settlers,” he stated.

The next type of aerial system likely to be stockpiled at scale by militaries worldwide is the interceptor drone. We’ve already seen early evidence of this across Eurasia, with Ukraine selling its interceptor drones to the highest bidder.

The Russia-Ukraine war accelerated the development of cheap one-way attack drones. Early in the war, missile interceptors used by Ukraine were too costly and drained the stockpiles of Western militaries at dangerous rates.

The proliferation of cheap interceptor drones levels the playing field and provides a low-cost solution against Russian-produced Geran and Iranian-designed Shahed attack drones.

Ukraine’s interceptor drones are emerging as a cheap solution, costing roughly $1,000 to $3,000 each versus about $4 million for a Patriot missile used to down $20,000 Shahed drones. In the economics of war, this mismatch matters because missile use, especially in the U.S.-Iran conflict, has already outstripped the U.S.’ annual production capacity.

Ukrainian President Volodymyr Zelensky has previously stated that Ukraine can produce at least 2,000 interceptors per day and could double that with more investment, supplying another 1,000 daily to allies.

First, we are capable of producing at least 2,000 effective and combat-proven interceptors every day. We can produce more – it depends on investment. We need about 1,000 interceptors a day, and we can supply at least another 1,000 a day to our allies.

Second, we know how to… pic.twitter.com/vIB2qRho8P

— Volodymyr Zelenskyy / Володимир Зеленський (@ZelenskyyUa) March 17, 2026

This comes as Zelensky has emerged as a “Lord of War,” with Ukraine pitching its highly developed, low-cost drones and robotic warfare technology to the highest bidder.

According to war blog UNITED24 Media, these are the four main interceptors Ukraine is offering to its allies around the world:

P1-SUN, by Skyfall

The most publicized yet is the P1-SUN, a Ukrainian play on words referring to its phallic bullet shape.

Created by SkyFall, it’s a high-speed drone designed to take off vertically. At a speed of between 300 km/h, typical, and 450 km/h for its upper estimate, it’s one of the fastest drones on the market, able to take out the most common models of Shahed-136 that cruise at roughly 185 km/ hour.

However, the new jet-powered Shahed-238, which can reach up to 550-600 km/h, can prove much more difficult to stop in the long run. The P1-SUN can reach an altitude of up to 5 kilometers. It is also guided by a pilot and has optional AI-assisted targeting.

The drone costs roughly $1,000 to produce and can carry a small modular charge, depending on the needs and the target. The company estimated it could manufacture up to 50,000 interceptor drones a month and export 5,000 to 10,000 without hampering local needs, Reuters reported.

As of March, SkyFall appears to be the clearest large-scale commercial player, described by Reuters as a major drone maker, with the P1-SUN interceptor among the main anti-Shahed systems now drawing foreign demand.

STING, by Wild Hornet

The STING, produced by Wild Hornet, is also a serious contender for international exports. Also bullet-shaped, the STING looks roughly the same as the P1-SUN, with its four high-trust motors, designed to maximize forward acceleration but not hover efficiency.

Tuned to outrun Shahed drones, this model has a proven speed of roughly 280 km/h, can reach up to 7 kilometers in altitude, has a range of up to 37 kilometers, and has an endurance of up to 15 minutes, the company says.  

The interceptor can be guided by a pilot and, through AI, automatically lock the target during its final phase. The model has a daylight and a thermal camera, allowing it to detect Shahed engine heat at night. It can hold some warheads weighing 500 grams, according to the company.

Combat-proven and priced between $1,000 and $2,500, it’s cheap and scalable, producing 10,000 units or more per month, says the company representative.

STRILA, by WIY DRONES

The STRILA, described by its manufacturer, WIY DRONES, as a “rocket-type air-defense” interceptor despite its four motors, can reach speeds of over 350 km/h and, during testing, was accelerated to 400 km/h, the company said.

The interceptor is reportedly capable of operating at a distance of up to 14 km in tactical mode and covering up to 28 km at maximum range, reaching altitudes of up to 4 kilometers.

Its latest Strila system version features a communication system that enables operation without GPS and increases resistance to electronic warfare jamming.

The operator can now also switch communication channels during flight. The daytime and night cameras have also been upgraded.

The company says it is currently manufacturing about 100 interceptors per day, has begun serial deliveries under government contracts, and cut the unit price to roughly $2,300 in January 2026.

Zerov-8, by The Fourth Law

The Fourth Law recently unveiled the Zerov-8, a vertical takeoff and landing interceptor that can turn mid-flight horizontally, resembling a small quadrimotor airplane.

Compared to the P1-SUN and the STING, it trades agility for efficiency and range, with a 20-kilometer radius, the company says. It can reach a maximum speed of 326 km/h, making it slower than its quadcopter challengers but more efficient in cruise mode during horizontal flight.

Its core feature? An AI-based detection and tracking module that allows it to identify Shahed, track them autonomously, and guide the interceptor on its own during its terminal phase before impact, according to the company.

The Zerov-8 can carry a 0.5 kg warhead and thermal cameras, but the company didn’t disclose its price, as it’s still at an experimental state.

Octopus, by Project OCTOPUS

The Octopus, a high-speed quadcopter interceptor, has a maximum speed of 300 km/h, a combat radius of roughly 30 km, can reach up to 4.5 kilometers in altitude and has an endurance of 15 minutes with a payload of 1.2 kg, Ukrainian military-tech company TAF Drones Industries said.

Thanks to its automatic terminal guidance module and AI image recognition, it can pick a target and finish it off without pilot output, according to the Royal United Service Institute (RUSI).

Ukraine and the UK were set to begin the joint production of 1,000 Octopus interceptor drones per month starting in February 2026, Ukraine’s former Defense Minister Denys Shmyhal announced in January. The drones themselves were presented in London by Zelenskyy in late October 2025.

Separate from Ukraine, war news outlet Defense Blog has revealed that Russia has “begun front-line deployment of the fixed-wing Lys-2 counter-drone interceptor after a test phase, distributing it directly to combat units.”

Russia has begun deploying the Lys-2 counter-drone interceptor to front-line units, marking a move from testing to operational use.

Read more: https://t.co/R9kInuTN35 pic.twitter.com/CFuJLTvJhj

— Dylan Malyasov | 🧐 (@DylanMalyasov) April 20, 2026

Not to be the bearer of bad news, but stopping the rise of ‘Skynet’ looks nearly impossible at this point.

• Ukraine Becomes World’s AI Weapons Laboratory

Russia’s deployment of next-generation counter-drone interceptors highlights the hyperdevelopment now underway in low-cost aerial warfare, where both interceptor drones and Shahed-style one-way attack drones are increasingly likely to be stockpiled by the millions across the world’s militaries.

Via Remix News,

The year 2026 will go down in the history of European integration as a special moment. The European Union, under the banner of protecting democracy, has begun systematically restricting freedom of speech and real political pluralism. Thus, it embarks on the well-trodden historical paths of every authoritarian regime, resorting to violence and censorship as public support wanes.

A report recently published by the Ordo Iuris Institute leaves no doubt: we are dealing with a project for a profound overhaul of the public sphere that will primarily target conservative communities, including Catholics.

The new EU mechanisms, ironically referred to as the “Democracy Shield,” are not a single piece of legislation. This is a coordinated regulatory system—from the Digital Services Act (DSA), through codes of conduct on “hate speech” and “disinformation,” to the regulation on political advertising. Their common denominator is the now-official departure from the European cult of free speech and its replacement with a system of preventive restrictions, in the name of… true freedom and democracy.

The European Commission claims that its aim is to create a “safe” information space in which “reliable” messages are meant to dominate, that is, in practice, narratives aligned with the liberal consensus . The problem is that the criteria for the EU’s “credibility,” for what is considered prohibited “disinformation,” and—what is particularly harmful—”divisive speech” are extremely vague and prone to ideological interpretation. As a result, it will not even be independent courts, but online platforms cooperating with non-governmental organizations selected by Brussels that will decide what content may reach citizens of the European Union. Including Polish citizens.

This system is multi-stage. First—mechanisms for reporting and removing content that, in practice, incentivize rapid takedowns, even at the expense of freedom of expression. Secondly—a labeling system under which statements labeled as “unverified,” “misleading,” or “political” are subject to mandatory restrictions on platforms such as Facebook or X. Thirdly—there is to be algorithmic intervention that limits the reach of content deemed problematic.

It is worth emphasizing the role of so-called trusted flaggers and fact-checker networks. It is precisely these entities, often financed with public funds from the European Union or the Member States and ideologically uniform, that gain a privileged position in the content moderation process. In practice, this means cleverly delegating censorship to entities that are not subject to any democratic oversight.

Even more troubling are the regulations concerning political advertising. The definition of “political speech” has been framed so broadly that it encompasses not only the activities of political parties but also public awareness campaigns concerning the protection of life, the family, or national identity. This means that Catholic pro-life organizations or movements defending marriage as the union between a woman and a man may be subjected to restrictive requirements and even sanctions. Even now, our own Ordo Iuris Institute and Center for Life and Family, as well as our friends from Polonia Christiana’s PCH24 news portal and their editorial team should start preparing to implement a “replacement language.” The censorship game, well known here in Poland from the communist era, is making a comeback.

At the same time, restrictions on the targeting and funding of political messages make it much more difficult to reach voters. In practice, the largest platforms, such as Facebook, have already stopped running “political” ads to avoid legal risk. It is no longer possible to freely promote petitions opposing abortion or same-sex unions there.

The Polish political context cannot be ignored. The introduction of these instruments specifically in 2026, just before the crucial parliamentary campaign in Poland, is no coincidence. Restricting the reach of conservative speech, making it harder to organize public-interest campaigns, and selectively labeling content as “problematic” will have a real impact on election results.

From the perspective of socially engaged Catholics, this is particularly dangerous. Unequivocal assessments concerning the protection of life from conception, the indissolubility of marriage, the condemnation of the aberrations of gender ideology, and even clear support for national sovereignty within the European Union will increasingly be classified as “controversial” or “divisive.” In the new regulatory model, such content may be restricted not directly—through a ban—but through invisible mechanisms of reach reduction and stigmatization.

This does not, of course, mean that the state has no right to combat crimes online or to protect citizens from real threats. The problem is that the European Union has crossed the line between protection and control, between security and social engineering.

Therefore today, more than ever, courage is needed to defend freedom and the right to publicly proclaim one’s faith. Not as a privilege for the select few, but as the foundation of a healthy society. If we allow, under the pretext of combating “disinformation,” the voices of those who defend life, the family, and sovereignty to be curtailed, democracy will quickly become a grim dictatorship hidden behind a facade of apparent diversity and tolerance.

Finally a practical use of AI.

In a world swimming in debt and overrun by government bloat and corruption, Dubai is taking a big step into the future. On Thursday, Sheikh Mohammed bin Rashid Al Maktoum, Vice-President of the UAE and Ruler of Dubai, announced that in two years, 50% of UAE’s government sectors, services, and operations will run on Agentic AI, arguably the best use of the new technology yet. 

The new “government model” was launched under the directive of UAE President Sheikh Mohamed bin Zayed Al Nahyan. It will make the UAE the first government globally to operate at this scale through autonomous systems. 

“AI is no longer a tool. It analyses, decides, executes, and improves in real time. It will become our executive partner to enhance services, accelerate decisions, and raise efficiency,” the Dubai Ruler said in a post on X.

“This transformation has a clear timeline. Two years. Performance across government will be measured by speed of adoption, quality of implementation, and mastery of AI in redesigning government work,” he continued.

“We are investing in our people. Every federal employee will be trained to master AI, building one of the world’s strongest capabilities in AI-driven government. Implementation will be overseen by Sheikh Mansour bin Zayed, with a dedicated taskforce chaired by Mohammad Al Gergawi driving execution.

“The world is changing. Technology is accelerating. Our principle remains constant. People come first. Our goal is a government that is faster, more responsive, and more impactful,” Sheikh Mohammed added.

Under the directives of the President of the UAE, we launch a new government model. Within two years, 50% of government sectors, services, and operations will run on Agentic AI, making the UAE the first government globally to operate at this scale through autonomous systems.

AI… pic.twitter.com/53OQLe7RXl

— HH Sheikh Mohammed (@HHShkMohd) April 23, 2026

The project includes a phased implementation across ministries and federal entities, based on continuous performance and impact assessment. This will pave the way for wider rollout, ensuring optimal results across the federal government.

Special attention is placed on developing national capabilities by training and empowering government employees to master generative artificial intelligence technologies and their applications. Which of course is reflexive, so in effect government employees are supposed to train their own replacements. 

Accroding to Khaleej Times, the move to adopt Agentic AI across government operations builds on 20 years of digital transformation in the UAE’s government, from the early adoption of eGovernment and service digitalization to mobile government and integrated systems such as the UAE Pass identity verification system to full-service redesign and integration, supported by programs such as Government Services 2.0, which introduced proactive, data driven service delivery.

In 2017, the UAE became the first country in the world to appoint a Minister of State for Artificial Intelligence and launched the UAE Artificial Intelligence Strategy 2031 under the UAE Centennial 2071 vision. The establishment of the Ministry of Artificial Intelligence, Digital Economy and Remote Work Applications in 2020 further strengthened this direction.

The UAE is especially well suited for agentic implementation: the Gulf state has spent more than a decade building digital infrastructure that connects government entities, making it one of the most advanced public service ecosystems globally. Platforms developed under entities such as UAE Government and Digital Dubai already allow residents to access hundreds of services online, from paying fines to registering businesses.

The latest plan shifts the focus from digitizing services to redesigning them, allowing AI systems to manage entire workflows rather than just assisting at specific stages. For residents, this changes the experience from navigating systems to simply requesting outcomes, with the complexity handled behind the scenes.

While the progression reflects a broader pattern seen across advanced economies, the UAE is moving faster than most.

The first phase involved putting services online, which reduced paperwork and eliminated many in-person visits.

The second phase introduced mobile apps, automation, and AI tools, improving speed and accessibility while still requiring users to manage processes themselves.

The next phase moves beyond interfaces, with systems designed to complete tasks independently, meaning the user defines the objective and the system handles execution.

Back in the US, a recent attempt through Elon Musk’s DOGE to cut back on government inefficiency and corruption came to an abrupt halt last summer when it became obvious that the deep state would fight to the death (or at least hire assassins to effect the death of others) to prevent any change in the well-paid status quo. Perhaps AI will succeed where everyone else has failed. 

Gold demand during one of India’s key buying festivals stayed muted on Sunday as record prices curbed jewellery purchases, ​offsetting a modest uptick in investment demand, according to Reuters. 

Indians celebrated Akshaya Tritiya, the ‌second-biggest gold-buying festival after Dhanteras, when purchasing precious metals is considered auspicious. Only this time near record gold prices – the precious metal closed just over $4800 – kept buyer enthusiasm rather subdued. 

“The sharp rally in prices curbed jewellery demand. In volume terms, buying was lower as consumers ​held back, though in value terms spending was higher due to ​elevated prices,” said Amit Modak, chief executive of PN Gadgil ⁠and Sons, a Pune-based jeweller.

Since consumers are, like everyone else, subject to the laws of supply and demand, it is natural that a higher price will lead to lower demand. Gold prices hit a record high of $5,594.82 ​per ounce on January 29 and are now trading just over $4,800.

Gold futures in ​India, the world’s second-biggest gold consumer, closed at 154,609 rupees ($1,670) per 10 grams on Friday, nearly 63% higher than at the last Akshaya Tritiya festival. Except in a few ​southern Indian states, demand was lower than normal across the rest ​of the country, said Surendra Mehta, national secretary at the India Bullion and Jewellers Association. Meanwhile retail ‌buyers ⁠have been stacking shifting toward gold coins, which are easier to liquidate, even as jewellers offered discounts on fees for crafting jewellery to attract buyers, said a Mumbai-based jeweller.

The AI funding frenzy continues, with Google planning to invest $10 billion in Anthropic at a $350 billion valuation, deepening its relationship with the San Francisco-based AI company best known for building Claude.

Bloomberg reports that Google’s deal with Anthropic includes an initial $10 billion investment at a $350 billion valuation, with the potential for another $30 billion if certain performance milestones are achieved. That would bring the potential deal size to as much as $40 billion.

Part of the deal includes Google Cloud providing 5 gigawatts of computing capacity to the AI startup, founded in 2021 by former OpenAI employees, including Dario Amodei and Daniela Amodei, over the next five years. Additional capacity could follow.

Earlier this week, Amazon committed another $5 billion to Anthropic at the same valuation, with the option to invest an additional $20 billion over time.

Amazon’s scramble for compute was detailed earlier in a deal with Meta:

• Scramble For AI Compute: Meta Inks Multibillion-Dollar Deal With Amazon For CPU Chips

Bloomberg pointed out that the Google-Anthropic deal is an “expansion of an agreement announced earlier this month between Anthropic, Google, and Broadcom.”

For Google, the agreement with Anthropic strengthens demand for its cloud services and in-house TPU chips, which have become viable alternatives to Nvidia’s AI chip stack.

Earlier this week, Google unveiled two new chips for the agentic era, including the TPU 8t, designed for training AI models, and the TPU 8i, designed for inference, or running AI services once they are developed and deployed. Again, this is all positioned to take on Nvidia.

There has been increased scrutiny around “circular” AI financing since we broke down the math and called it an epic “circle jerk” last fall.

Washington is eyeing how to pressure Spain out of the NATO alliance, after the Spanish government has taken firm anti-Israel positions, as well as come out strongly against Trump’s Iran war, even disallowing some base and logistics access to the US armed forces.

An internal Pentagon email lays out options for the United States to punish NATO allies it says failed to support US operations in the war with Iran, including suspending Spain from the alliance and reviewing the US stance on United Kingdom sovereignty over the Falkland Islands, a US official told has told Reuters in a report published Friday.

In the Trump administration’s eyes, Spain has also been a non-contributing thorn in the side both both US and NATO policy. To a large degree it’s also easier for the US to single out and punish a country like Spain, compared more powerful and economically stronger nations like Turkey or France.

The policy options appear in a note expressing frustration over allies’ reluctance or refusal to grant access, basing, and overflight rights – known as ABO – for the Iran war, the US official explained.

The email specifies that ABO is “just the absolute baseline for NATO,” according to the official, who indicated this is being considered in senior policy circles.

However, it remains a big unknown whether the alliance can actually suspend a longtime permanent member, and the reality is that many other European countries are sympathetic to Spain’s stance.

A NATO official told Reuters, “NATO’s Founding Treaty does not foresee any provision for suspension of NATO membership.”

And the reality is that any kind of suspension process would probably take so long that it would outlast the current US administration. 

But Washington could take other steps, such as drawdown in large-scale fashion its long-running force presence in Europe. This is already on the table, to the point that some European allies are already anticipating it and making preparations. 

The Pentagon and Trump administration have said of Spain, “they are not there for us.” But perhaps from Spain’s point of view, (and its population), it is putting Spain’s national interest first. – and doesn’t want to get bogged down in yet more US-led adventurism in the Middle East.