Huge thanks to this month’s anonymous sponsor, who wishes me to lead with this public notice she spotted: “If special arrangements need to be made to accommodate residents with disabilities in order for them to participate in the public hearing, including a Spanish or Karen interpreter, please call…”
“Stablecoins: the next big financial crisis waiting to happen…
“Almost all major financial crises are strongly associated with deregulation and the “financial innovation” that inevitably follows in its wake… As with so much else, the big game changer is technology… According to some estimates, the market is likely to mushroom from around $250bn (£186bn) today to more than $2tn in two to three years.”
“Crypto lenders dial up risk with ‘microfinance on steroids’…
“Major Wall Street banks have also begun extending collateralised loans to some crypto holders. Cantor Fitzgerald earlier this month announced a $2bn “Bitcoin Financing Business” initiative to provide leverage to investors who hold the world’s most valuable digital asset.”
https://www.ft.com/content/c531a2bc-d258-431b-855c-2a6aaf230661
“The bond market maths does not add up for governments…
“…the basic arithmetic of bond markets has deteriorated; more supply coupled with a reduction in both reliable and speculative demand. And that means higher bond yields look probable, forcing governments to pay more to fund their ever-growing deficits.”
https://www.ft.com/content/22090918-f767-4496-ab9a-d9e92ec6cece
“America’s looming debt crisis could blow up the entire financial system…
“Deficits will also gobble up the supply of capital. “As government spending increases, the less productive public sector absorbs more labour and resources, starving the more productive private sector of these critical inputs,” as Seeking Alpha points out.”
https://moneyweek.com/economy/us-economy/america-looming-debt-crisis
“White House presses Fed for ‘dramatically lower’ rates as meeting looms.
“The White House on Sunday demanded “dramatically lower” interest rates as it raised pressure on US Federal Reserve chair Jay Powell for a substantial cut ahead of a key meeting of its rate-setting committee next week.”
https://www.ft.com/content/76f13fc1-bceb-4d2f-a326-bd1bf256fc04
“Trump’s $6tn bank tweak that risks triggering the next crisis.
“The change would allow America’s banking titans on Wall Street to effectively exempt Treasuries from the calculations about how risky their balance sheets are… “These rules effectively discourage banks from acting as intermediaries in the financial markets – and this would be particularly painful at precisely the wrong time: when markets get volatile,” [Jamie Dimon] wrote…”
“Britain risks following France into a terrifying debt crisis…
“We are borrowing enormous sums to pay the interest on past borrowings of enormous sums. We are getting dangerously close to what economists call “the debt trap”. This is when, under the pressure of rising debt interest payments, the debt ratio starts to explode.”
“The chief of the first police force [Lincolnshire, UK] to face bankruptcy says that without further funding he could be forced to scrap its neighbourhood policing team.
“External auditors found Lincolnshire police at risk of having to issue a section 114 notice, declaring itself effectively bankrupt… In recent years several councils that have been unable to balance their books have issued section 114 notices. No police force has yet done so.”
“Aid cuts are driving migrants to Europe, warns UN refugee chief…
“Filippo Grandi, the UN High Commissioner for Refugees, told the Financial Times that there was mounting evidence of Sudanese moving north towards Europe rather than staying in Sudan or neighbouring Chad, where many had found support previously.”
https://www.ft.com/content/976f5747-6e0b-4a62-ae81-13b0982388ab
“Looming US troop cuts in Europe raise questions about NATO’s future…
“Washington is currently conducting a review of its military deployments worldwide – set to be unveiled in the coming months – and the expectation is it will lead to drawdowns in Europe. That prospect is fraying the nerves of US allies…”
“Germany intends to significantly expand its armed forces with plans to enlist up to 40,000 teenagers annually for voluntary military service by 2031.
“The draft bill, set for cabinet review by late August, will offer competitive pay and flexible terms to attract 18-year-olds, government officials say.”
“E.U. Cuts Aid to Ukraine Over Corruption Concerns…
“The European Union said on Friday that it would withhold 1.5 billion euros, or $1.7 billion, from an overall fund of 4.5 billion euros whose disbursement is dependent on achieving good governance standards and that can’t be used for military purchases.”
https://www.nytimes.com/2025/07/26/world/europe/eu-ukraine-corruption-aid.html
“Russia runs low on Soviet-era arms as North Korea fills gap…
“Measured by weight, some 52 per cent of shipments marked as “explosive materials” to Russia’s arsenals in 2024 came from Nakhodka, a port region on the Sea of Japan used by North Korea.”
https://www.ft.com/content/1b9ce558-551e-45d4-80ae-57e3cc32d7ed
“North Korea says it has ‘no interest’ in dialogue with South Korea…
“In a statement issued by state-run media on Monday, Kim Yo Jong dismissed South Korean President Lee Jae-myung’s efforts to mend ties with Pyongyang, including the cessation of loudspeaker propaganda broadcasts along the tense inter-Korean border.”
“Philippine troops kill 7 communist rebels in latest flare-up of decades-long insurgency…
“Army forces killed two New People’s Army guerrillas in a clash last week in Masbate province and then caught up with the fleeing insurgents early Sunday in the hinterlands of Uson town, where they killed seven of them in a 30-minute gunbattle, Maj. Frank Roldan of the army’s 9th Infantry Division said.”
https://www.independent.co.uk/news/manila-new-peoples-army-rodrigo-duterte-asia-norway-b2796755.html
“Thailand and Cambodia agree to peace talks after Trump intervention – but shelling continues.
“Thai and Cambodian leaders have agreed to meet for ceasefire talks. But even as hopes for a lasting peace grew, each country accused the other of shelling targets across the disputed border areas.”
“Iran’s plan to abandon GPS is about much more than technology…
“Iran’s decision to explore adopting China’s navigation satellite system may appear at first glance to be merely a tactical manoeuvre. Yet, its implications are far more profound. This move is yet another indication of a major global realignment.”
“Gunfight in Baghdad kills one as paramilitary group storms ministry.
“At least one police officer was killed and 14 fighters detained after a gun battle erupted in Iraq’s capital with members of the Popular Mobilisation Forces (PMF), a state-sanctioned paramilitary umbrella that includes groups loyal to Iran.”
“Breadlines and Bare Shelves: Suweida Faces Deepening Humanitarian Crisis [Syria].
“Sixteen days into a near-total isolation, the southern Syrian province of Suweida is grappling with a worsening humanitarian crisis. Long breadlines, empty markets, fuel shortages, and limited access to water and electricity have left residents struggling to secure the most basic necessities of life.”
“US used about a quarter of its high-end missile interceptors in Israel-Iran war, exposing supply gap.
“The United States blew through about a quarter of its supply of high-end THAAD missile interceptors during Israel’s 12-day war with Iran in June, according to two sources familiar with the operation, thwarting attacks at a rate that vastly outpaces production.”
https://edition.cnn.com/2025/07/28/middleeast/us-thaad-missile-interceptor-shortage-intl-invs
“Israeli soldiers and generals are turning their back on Netanyahu over Gaza…
“Gen Assaf Orion, the former head of strategic planning at the IDF, said while there were clear strategic goals in the Israel campaigns against Iran and Hezbollah in Lebanon, there was no longer any clear military imperative for the continuation of military operations in Gaza.”
“Houthis say they’ll target all ships linked to firms dealing with Israeli ports.
“Yemen’s Houthi terror group said on Sunday it would target any ships belonging to companies that do business with Israeli ports, regardless of their nationalities, as part of what it called the fourth phase of its military operations against Israel.”
“Ethiopia to inaugurate GERD in September amid ongoing Egypt-Sudan dispute…
“The announcement comes amid persistent regional tensions, as Egypt and Sudan continue to oppose Ethiopia’s unilateral management of the dam on the Blue Nile, a crucial artery of the Nile River system shared by all three countries.”
“Sudan paramilitaries announce a parallel government, deepening the country’s crisis.
“a notorious paramilitary group and its allies in Sudan have formed a parallel government in areas under the group’s control, which are mainly in the western region of Darfur where allegations of war crimes and crimes against humanity are being investigated.”
“Democratic Republic of Congo: At least 34 people killed after Islamic State-backed rebels attack Catholic church…
“A civil society leader in Komanda, in the northeastern Democratic Republic of Congo, told the AP news agency that the attack was believed to have been carried out by the Allied Democratic Forces (ADF), a Ugandan Islamist rebel group.”
“Billie Marten: “Mostly, artists are in financial ruin – we’re all paying Taylor Swift”…
““Mostly, artists are in financial ruin no matter how successful they appear to be,” the Yorkshire singer-songwriter explained… Marten pointed to the discrepancy between the money going to artists and to executives: “Everyone that’s hanging onto the artist is buying houses and having families and going on holiday. And the artists could never dream of doing that. It’s funny.””
“I study the apocalypse – this is how the world will probably end…
“We’ve lost the skills to rebuild humanity… there would need to be about 80,000 of us [left] for society to have the range of skills required to get things back on track. But we would be in a far more fragile position. One epidemic, or one war, could tip us over the edge.”
https://inews.co.uk/inews-lifestyle/study-apocalypse-world-end-3820914
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You can read the previous “Economic” thread here. I’ll be back tomorrow with a “Climate” thread.
Obviously the last article’s author isn’t aware of self-reinforced feedback loops causing such an accumulation of energy into our oceans (and land) causing runaway greenhouse effect?
I mean clearly, NYT even just posted a chart showing warming increasing at a faster rate in recet years. We’ll be living on a hell planet with half of the world killing the other half (at minimum) by 2040.
Surrounded by morons.
Jeez, he really is a moron! To echo your point, Doom Wizard, I don’t think there was one single mention of climate change or fossil fuel depletion.
“It might be that, even on our current course, we are doomed to fall back into a higher-tech version of the Dark Ages.” These types always hope for a “higher-tech” version. Hahahahah. Sure, dude.
I have a dim recollection that I’ve actually posted one of his pieces before. As with this, the headline was too tempting, but, yes, he is a self-proclaimed Anglofuturist, who misses a lot.
He reads like a human exceptionalist so probably can’t comprehend of anything as minor as mother nature being a threat to our existence.
Yeah nothing about all of our computer technology that runs everything to and what happens when you dont have redundant non computer systems back ups you can’t run things that way they will just crash and burn.
Hello Pan
I did some research on that GERD dam in Ethiopia. One thing remains unclear… how are they going to recoup their investment?
The Dam and the Drought: Ethiopia’s Hydropower Paradox
In September, Ethiopia will celebrate the official commissioning of the Grand Ethiopian Renaissance Dam (GERD). The inauguration marks the culmination of a megalomaniac project that since 2011 has symbolized national pride, patriotic sacrifice, and technological progress.
Located on the Blue Nile near the border with Sudan, the dam will be Africa’s largest hydroelectric power plant with a capacity of 6,000 megawatts. But behind the ceremonies lies a painful paradox: Ethiopia can hardly use the electricity generated, while the fixed costs and risks remain entirely on the country’s shoulders.
The construction of the GERD has been largely financed by domestic resources: government bonds, wage deductions, and voluntary contributions from citizens, civil servants, and the diaspora. The Italian contractor Salini Impregilo was responsible for its construction. The Ethiopian government presents the project as a ‘sovereign’ development path, free of foreign loans and conditions. But that sovereignty is only optical. As soon as the dam starts supplying power, it will become clear that the domestic market is too small, too fragmented, and structurally underdeveloped to absorb the electricity. The national grid is weak, transmission lines to Addis Ababa are limited, and the industrial base is too narrow.
The solution? Export. Mainly to Kenya, where demand is growing faster and a 500 kV line has recently become partially operational. But export requires stability, diplomatic trust, and payment security—three factors that are by no means guaranteed in East Africa. Meanwhile, Ethiopia remains responsible for the maintenance of turbines, dam walls, and reservoir management.
The ecological and hydrological risks associated with drought, sedimentation, or faulty releases also lie solely with the owner. This creates a bizarre model: a power plant on the periphery that runs on patriotic capital, without national consumption capacity, with geopolitically dependent customers, and a permanent maintenance burden that must be borne internally.
The GERD is less an energy transition than a symbolic export machine, built on the backs of a population that invested in hope—and ends up with an electricity bill in foreign currency.
The real question is not how much electricity the GERD generates.
The question is: who bears the burden when the neighbors pull the plug?
that was the most interesting comment that I have read so far in the year 2025. And it is in the top 10 for this century
High praise indeed, Curt! I agree it is a very interesting comment, for which many thanks, Zip.
“The solution? Export. Mainly to Kenya.”
The Horn of Africa has a few of these uneasy, cross-border dependencies, it occurs to me – with Egypt relying on water from Ethiopia and other upstream nations; landlocked Ethiopia reliant on Djibouti on the Red Sea for most of its international trade, and South Sudan reliant for the bulk of its income on oil that needs to transit through pipes in Sudan.
Trump was making headlines recently pushing for a solution to the GERD damn friction between Egypt and Ethiopia and claiming that the US had helped fund it. The Ethiopian government has hotly denied the latter:
“An Ethiopian official has denied Donald Trump’s claim that the United States helped fund Ethiopia’s new megadam on the River Nile, saying it is false and “destructive”. Last week, President Trump said the controversial dam was built “with United States money, largely”.”
https://www.bbc.co.uk/news/articles/c89e41z388qo
Cormac McCarthy meets Willie Nelson?
On “The Road” of men.
The life I loved is gone with all my friends
As I stumble down “The Road” again.
In “The Road” are men
Goin’ places that they’ve never been
Seeing things they hope they’ll never see again
Yet have no choice but to get on The Road again
In “The road” is when like a band of gypsies
We go down the highway.
All that’s left of men … still insisting that
The whirled keep spinning our way
Down the highway
So like the Joads, I wend; I can’t feed
My son, so get right back on “The Road” again.
Rob, I am a total ignoramus when it comes to Willie Nelson’s music, so I can’t figure out what song you are riffing on in your magnificent mash-up.
For anyone who hasn’t seen the movie adaptation of “The Road”, the final image is a still from it, featuring Viggo Mortensen and young Kodi Smit-McPhee. I found it a bruising watch, with added poignancy because it seems to me a potentially realistic depiction of our future.
Showing your youth, Panopticon!! It’s On The Road Again – a Willie Nelson classic we used to belt out when we got…on the road again.
https://m.youtube.com/watch?v=M6Ggp3TJjuE&pp=ygUfb24gdGhlIHJvYWQgYWdhaW4gd2lsbGllIG5lbHNvbg%3D%3D
Ahh, thanks for enlightening me, Kali. I don’t get described as youthful much these days, so thanks for that, too. 😂
Rob – brilliant! You are quite the wordsmith and punster, I have noticed.
Moi? 🫣 Thnx, Kali, this site is an inspiration!
https://www.youtube.com/watch?v=djPGiDhPiUY
Arizona is screwed and they are making it public now! A really bad winter and dams with water and groundwater depletion.
Thank you for the update on this, Heather – “The U.S. Bureau of Reclamation warns that Lake Powell might drop below critical levels by 2026, endangering power generation.”
Limits encroaching everywhere… Also, you reminded me of this largely forgotten 80’s gem:
https://www.youtube.com/watch?v=Q7UdUrHAero
It’s great to wake up every morning to the denial of AGW & the damage created by unregulated capitalism. The silver lining is that it gets worse everyday.