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Economics

Why the Retail Investor Cannot Solve the Prisoners' Dilemma

The AI buildout is individually rational for every company involved and potentially destructive in aggregate. The index fund owns all of them. That is not diversification. It is a bet that the prisoners collectively produce a tolerable outcome — and that you can identify which cell the warden opens.

4 Oct 20268 min read
Economics

What AI Investment Would Look Like in Peacetime

If AI were a normal capital allocation problem, the Kelly criterion would tell you to invest a fraction of what the hyperscalers are spending. The gap between the two is the war premium. China, constrained by chip sanctions, is not an exception to the war frame — it is the war frame with a smaller arsenal.

4 Oct 20266 min read
Reviews

AI Investments Are the War Bonds of the New Cold War

The AI buildout is not a bubble. It is a war bond market. $660 billion a year. Four CEOs who say they would rather go bankrupt than lose. War bonds pay off only in victory.

4 Oct 202610 min read
Reviews

$8 Trillion, Three Gulf Wars, and the Ghost of the Athenian Fleet

In 2026, the US opened its third Gulf War in 35 years. Two and a half millennia ago, another maritime superpower made the same bet on a distant, resource-rich region — and lost everything. The mechanism is the same. Only the scale differs.

4 Oct 20268 min read
Finance

$942 Billion in Buybacks, $500 Billion in Subsidies: The Real Economy Strikes Back

Two centuries ago, Napoleon sold wheat to Britain during a blockade rather than starve his enemy out of a war — because he wanted their gold. The same confusion between financial scores and strategic outcomes governed American outsourcing to China for 30 years.

4 Oct 202610 min read
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Trade4 Oct 2026

Trade Audit 004 · France

France's trade deficit collapsed from a record €161.7 billion in 2022 to €69.2 billion in 2025 — a 57% improvement in three years. The current account is essentially balanced.

Trade4 Oct 2026

Trade Audit 003 · Brazil

Brazil's trade surplus hit $59 billion in 2025 and is tracking toward $100 billion in 2026.

Trade4 Oct 2026

Trade Audit 002 · Australia

Australia sells rocks and gas to China, and buys cars and electronics from China. The trade structure has produced the fastest export growth of any advanced economy since 1990 — an 8.5× increase that generated a $30…

Trade4 Oct 2026

World Trade Hit $34.7 Trillion in 2025. Someone Forgot to Tell the Peak-Globalization Theorists.

The "peak globalization" thesis — that world trade has stopped outpacing GDP growth and the era of hyper-globalization is over — has been declared at least four times since 2008. Each time, trade has rebounded to new highs. The $34.65 trillion in goods and services traded in 2025 is the largest volume in history. The thesis persists because it conflates a noisy ratio with a structural shift, and because it misses a transformation happening on two fronts: what is being traded (services, growing at 8% a year) and who is doing the trading (intra-Asia and South-South flows are growing twice as fast as the global average).

Trade4 Oct 2026

China Would Need $150 Billion a Year to Halve Its Trade Surplus

The "boost Chinese consumption" prescription has become orthodox. Run through the numbers, it is directionally correct — but the mechanism it implies is structurally incoherent. A combined approach of import liberalization and targeted export rebalancing is the only arithmetic that works. It is slow, expensive, and politically uncomfortable in both Beijing and Washington.

Reviews series5 parts, 28 min

Beyond the Cold War frame

Five essays testing whether the US and China really are replaying the last century.

  1. 1China Is Not the Soviet Union. That Is the Problem.
  2. 2The Rigidity Trap
  3. 3AI Is Not the Space Race. A Better Analogy Is Electrification.
  4. 4The Leadership Gap
  5. 5The Containment Trap
Start with part one
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