Sunday, August 30, 2026

"SpaceX starts in-house turbine blade manufacturing to boost gas-powered generator output for Elon's AI data centers — new manufacturing strategy cuts generator delays by 18 months"

There are very few organizations that could bring together the engineering and the manufacturing expertise necessary to actually pull this off. Maybe two, and one of them is a country, China where BYD's manufacturing prowess combined with the engineering mavens at Beijing's Tsinghua University could get it done fast.

From Tom's Hardware, August 30:

Fine, I’ll do it myself.

Electricity supply in the U.S. is a limiting factor preventing AI data centers from coming online as quickly as possible. Because of this, many projects are turning to portable natural gas turbine generators to get the electricity they need and bypass long wait times to connect to the grid. This has driven demand for turbines, so Elon Musk said on X that SpaceX will bring turbine blade and vane casting in-house.

Musk was one of the first to deploy “portable” power generators to power a data center, allowing him to bring the Colossus data center in Memphis, Tennessee, online in record time. Note that these mobile generators aren’t small devices — they’re massive units about the size of one trailer and may also include another trailer or two of other necessary parts and accessories to run it (not including the tank needed for its fuel). OpenAI followed suit a few months later, announcing it will deploy turbines at the first Stargate data center to deliver additional power.

This sudden influx of demand has led to jet engine shortages for data center operators. Beyond the fact that engine manufacturers weren’t prepared for the AI boom, commercial aviation has already been suffering from its own shortages due to supply chain and engine design issues even before data center developers started buying up turbines....

....MUCH MORE 

Sometimes it seems Mr. Musk is China's only competition across a range of industries.

The latest is reusable rocket boosters.  

From Space.com:

Private Chinese rocket nails landing after 2nd-ever launch 

The Beijing startup LandSpace successfully landed the first stage of its Zhuque-3 rocket on Aug. 18, 2026, becoming the first Chinese company ever to do so during an orbital launch. 

And Tsinghua?

From Fortune, November 19, 2025

Move over Harvard and MIT—this university might be winning the AI race, and you’ve probably never heard of it 

...Tsinghua has produced more of the world’s 100 most-cited AI research papers than any other school, and the university generates more AI-related patents each year than MIT, Stanford, Princeton and Harvard combined. Between 2005 and the end of 2024, Tsinghua researchers filed 4,986 AI and machine-learning patents—including more than 900 last year—according to LexisNexis data analyzed by Bloomberg....

....MUCH MORE

It's not just computer engineering and AI. Robots and mechanical and electrical and civil engineering as well. Here's a vignette from January 2019:

In the introduction to "Is China’s plan to use a nuclear bomb detonator to release shale gas in earthquake-prone Sichuan crazy or brilliant?" I mentioned:

After the Three Gorges Dam was completed some very serious problems emerged, I mean beyond the environmental degradation and the slowing of the earth's rotation, some straight-up engineering concerns: shifting, cracking, earthquakes etc 
The civil engineers went to a very famous Chinese engineering Professor in search of solutions.
The first thing he told them was: "You are dealing with powerful forces, almost beyond human comprehension." 
I met him at his daughter's home, classic little old Chinese gentleman, pants pulled up to his armpits,  where he was singing, in German. It was a bit surreal....

The Professor taught and consulted from his perch at Tsinghua. 

"Late Victorian Holocausts: El Niño Famines and the Making of the Third World"

From the New York Times archive, an extended excerpt from the book by Mike Davis used as the introduction to the review by Nobel Laureate (economics) Amartya Sen, February 18, 2001: 

Victoria's Ghosts

The more one hears about this famine, the more one feels that such a hideous record of human suffering and destruction the world has never seen before.
—Florence Nightingale, 1877

"Here's the northeast monsoon at last," said Hon. Robert Ellis, C.B., junior member of the Governor's Council, Madras, as a heavy shower of rain fell at Coonoor, on a day towards the end of October 1876, when the members of the Madras Government were returning from their summer sojourn on the hills.

    "I am afraid that is not the monsoon," said the gentleman to whom the remark was made.

    "Not the monsoon?" rejoined Mr. Ellis. "Good God! It must be the monsoon. If it is not, and if the monsoon does not come, there will be an awful famine."

The British rulers of Madras had every reason to be apprehensive. The life-giving southwest monsoon had already failed much of southern and central India the previous summer. The Madras Observatory would record only 6.3 inches of precipitation for all of 1876 in contrast to the annual average of 27.6 inches during the previous decade. The fate of millions now hung on the timely arrival of generous winter rains. Despite Ellis's warning, the governor of Madras, Richard Grenville, the Duke of Buckingham and Chandos, who was a greenhorn to India and its discontents, sailed away on a leisurely tour of the Andaman Islands, Burma and Ceylon. When he finally reached Colombo, he found urgent cables detailing the grain riots sweeping the so-called Ceded Districts of Kurnool, Cuddapah and Bellary in the wake of another monsoon failure. Popular outbursts against impossibly high prices were likewise occurring in the Deccan districts of the neighboring Bombay Presidency, especially in Ahmednagar and Sholapur. Having tried to survive on roots while awaiting the rains, multitudes of peasants and laborers were now on the move, fleeing a slowly dying countryside.

As the old-hands at Fort St. George undoubtedly realized, the semi-arid interior of India was primed for disaster. The worsening depression in world trade had been spreading misery and igniting discontent throughout cotton-exporting districts of the Deccan, where in any case forest enclosures and the displacement of gram by cotton had greatly reduced local food security. The traditional system of household and village grain reserves regulated by complex networks of patrimonial obligation had been largely supplanted since the Mutiny by merchant inventories and the cash nexus. Although rice and wheat production in the rest of India (which now included bonanzas of coarse rice from the recently conquered Irrawaddy delta) had been above average for the past three years, much of the surplus had been exported to England. Londoners were in effect eating India's bread. "It seems an anomaly," wrote a troubled observer, "that, with her famines on hand, India is able to supply food for other parts of the world."

There were other "anomalies." The newly constructed railroads, lauded as institutional safeguards against famine, were instead used by merchants to ship grain inventories from outlying drought-stricken districts to central depots for hoarding (as well as protection from rioters). Likewise the telegraph ensured that price hikes were coordinated in a thousand towns at once, regardless of local supply trends. Moreover, British antipathy to price control invited anyone who had the money to join in the frenzy of grain speculation. "Besides regular traders," a British official reported from Meerut in late 1876, "men of all sorts embarked in it who had or could raise any capital; jewelers and cloth dealers pledging their stocks, even their wives' jewels, to engage in business and import grain." Buckingham, not a free-trade fundamentalist, was appalled by the speed with which modern markets accelerated rather than relieved the famine:

The rise [of prices] was so extraordinary, and the available supply, as compared with well-known requirements, so scanty that merchants and dealers, hopeful of enormous future gains, appeared determined to hold their stocks for some indefinite time and not to part with the article which was becoming of such unwonted value. It was apparent to the Government that facilities for moving grain by the rail were rapidly raising prices everywhere, and that the activity of apparent importation and railway transit, did not indicate any addition to the food stocks of the Presidency ... retail trade up-country was almost at standstill. Either prices were asked which were beyond the means of the multitude to pay, or shops remained entirely closed.

As a result, food prices soared out of the reach of outcaste labourers, displaced weavers, sharecroppers and poor peasants. "The dearth," as The Nineteenth Century pointed out a few months later, "was one of money and of labour rather than of food." The earlier optimism of mid-Victorian observers — Karl Marx as well as Lord Salisbury — about the velocity of economic transformation in India, especially the railroad revolution, had failed to adequately discount for the fiscal impact of such "modernization." The taxes that financed the railroads had also crushed the ryots. Their inability to purchase subsistence was further compounded by the depreciation of the rupee due to the new international Gold Standard (which India had not adopted), which steeply raised the cost of imports. Thanks to the price explosion, the poor began to starve to death even in well-watered districts like Thanjavur in Tamil Nadu, "reputed to be immune to food shortages." Sepoys meanwhile encountered increasing difficulty in enforcing order in the panic-stricken bazaars and villages as famine engulfed the vast Deccan plateau. Roadblocks were hastily established to stem the flood of stick-thin country people into Bombay and Poona, while in Madras the police forcibly expelled some 25,000 famine refugees.

India's Nero 
The central government under the leadership of Queen Victoria's favorite poet, Lord Lytton, vehemently opposed efforts by Buckingham and some of his district officers to stockpile grain or otherwise interfere with market forces. All through the autumn of 1876, while the vital kharif crop was withering in the fields of southern India, Lytton had been absorbed in organizing the immense Imperial Assemblage in Delhi to proclaim Victoria Empress of India (Kaiser-i-Hind). As The Times's special correspondent described it, "The Viceroy seemed to have made the tales of Arabian fiction true ... nothing was too rich, nothing too costly." "Lytton put on a spectacle," adds a biographer of Lord Salisbury (the secretary of state for India), "which achieved the two criteria Salisbury had set him six months earlier, of being `gaudy enough to impress the orientals' ... and furthermore a pageant which hid `the nakedness of the sword on which we really rely.'" Its "climacteric ceremonial" included a week-long feast for 68,000 officials, satraps and maharajas: the most colossal and expensive meal in world history. An English journalist later estimated that 100,000 of the Queen-Empress's subjects starved to death in Madras and Mysore in the course of Lytton's spectacular durbar. Indians in future generations justifiably would remember him as their Nero.

    Following this triumph, the viceroy seemed to regard the growing famine as a tiresome distraction from the Great Game of preempting Russia in Central Asia by fomenting war with the blameless Sher Ali, the Emir of Afghanistan. Lytton, according to Salisbury, was "burning with anxiety to distinguish himself in a great war." Serendipitously for him, the Czar was on a collision course with Turkey in the Balkans, and Disraeli and Salisbury were eager to show the Union Jack on the Khyber Pass. Lytton's warrant, as he was constantly reminded by his chief budgetary adviser, Sir John Strachey, was to ensure that Indian, not English, taxpayers paid the costs of what Radical critics later denounced as "a war of deliberately planned aggression." The depreciation of the rupee made strict parsimony in the non-military budget even more urgent.

    The 44-year-old Lytton, the former minister to Lisbon, had replaced the Earl of Northbrook after the latter had honorably refused to acquiesce in Disraeli's machiavellian "forward" policy on the northwest frontier. He was a strange and troubling choice (actually, only fourth on Salisbury's short list) to exercise paramount authority over a starving subcontinent of 250 million people. A writer, seemingly admired only by Victoria, who wrote "vast, stale poems" and ponderous novels under the nom de plume of Owen Meredith, he had been accused of plagiarism by both Swinburne and his own father, Bulwer-Lytton (author of The Last Days of Pompeii). Moreover, it was widely suspected that the new viceroy's judgement was addled by opium and incipient insanity. Since a nervous breakdown in 1868, Lytton had repeatedly exhibited wild swings between megalomania and self-lacerating despair.

    Although his possible psychosis ("Lytton's mind tends violently to exaggeration" complained Salisbury to Disraeli) was allowed free rein over famine policy, it became a cabinet scandal after he denounced his own government in October 1877 for "allegedly attempting to create an Anglo-Franco-Russian coalition against Germany." As one of Salisbury's biographers has emphasized, this was "about as absurd a contention as it was possible to make at the time, even from the distance of Simla," and it produced an explosion inside Whitehall. "Salisbury explained the Viceroy's ravings by admitting that he was `a little mad'. It was known that both Lytton and his father had used opium, and when Derby read the `inconceivable' memorandum, he concluded that Lytton was dangerous and should resign: `When a man inherits insanity from one parent, and limitless conceit from the other, he has a ready-made excuse for almost any extravagance which he may commit.'"

    But in adopting a strict laissez-faire approach to famine, Lytton, demented or not, could claim to be extravagance's greatest enemy. He clearly conceived himself to be standing on the shoulders of giants, or, at least, the sacerdotal authority of Adam Smith, who a century earlier in The Wealth of Nations had asserted (vis-à-vis the terrible Bengal drought-famine of 1770) that "famine has never arisen from any other cause but the violence of government attempting, by improper means, to remedy the inconvenience of dearth." Smith's injunction against state attempts to regulate the price of grain during famine had been taught for years in the East India Company's famous college at Haileybury. Thus the viceroy was only repeating orthodox curriculum when he lectured Buckingham that high prices, by stimulating imports and limiting consumption, were the "natural saviours of the situation." He issued strict, "semi-theological" orders that "there is to be no interference of any kind on the part of Government with the object of reducing the price of food," and "in his letters home to the India Office and to politicians of both parties, he denounced `humanitarian hysterics'." "Let the British public foot the bill for its `cheap sentiment,' if it wished to save life at a cost that would bankrupt India." By official dictate, India like Ireland before it had become a Utilitarian laboratory where millions of lives were wagered against dogmatic faith in omnipotent markets overcoming the "inconvenience of dearth." Grain merchants, in fact, preferred to export a record 6.4 million cwt. of wheat to Europe in 1877-78 rather than relieve starvation in India.

    Lytton, to be fair, probably believed that he was in any case balancing budgets against lives that were already doomed or devalued of any civilized human quality. The grim doctrines of Thomas Malthus, former Chair of Political Economy at Haileybury, still held great sway over the white rajas. Although it was bad manners to openly air such opinions in front of the natives in Calcutta, Malthusian principles, updated by Social Darwinism, were regularly invoked to legitimize Indian famine policy at home in England. Lytton, who justified his stringencies to the Legislative Council in 1877 by arguing that the Indian population "has a tendency to increase more rapidly than the food it raises from the soil," most likely subscribed to the melancholy viewpoint expressed by Sir Evelyn Baring (afterwards Lord Cromer), the finance minister, in a later debate on the government's conduct during the 1876-79 catastrophe. "[E]very benevolent attempt made to mitigate the effects of famine and defective sanitation serves but to enhance the evils resulting from overpopulation." In the same vein, an 1881 report "concluded that 80% of the famine mortality were drawn from the poorest 20% of the population, and if such deaths were prevented this stratum of the population would still be unable to adopt prudential restraint. Thus, if the government spent more of its revenue on famine relief, an even larger proportion of the population would become penurious." As in Ireland thirty years before, those with the power to relieve famine convinced themselves that overly heroic exertions against implacable natural laws, whether of market prices or population growth, were worse than no effort at all.

    His recent biographers claim that Salisbury, the gray eminence of Indian policy, was privately tormented by these Malthusian calculations. A decade earlier, during his first stint as secretary of state for India, he had followed the advice of the Council in Calcutta and refused to intervene in the early stages of a deadly famine in Orissa. "I did nothing for two months," he later confessed. "Before that time the monsoon had closed the ports of Orissa — help was impossible — and — it is said — a million people died. The Governments of India and Bengal had taken in effect no precautions whatever.... I never could feel that I was free from all blame for the result." Accordingly, he harbored a lifelong distrust of officials who "worshipped political economy as a sort of `fetish'" as well as Englishmen in India who accepted "famine as a salutary cure for over-population." Yet, whatever his private misgivings, Salisbury had urged appointment of the laissez-faire fanatic Lytton and publicly congratulated Disraeli for repudiating "the growing idea that England ought to pay tribute to India for having conquered her." Indeed, when his own advisers later protested the repeal of cotton duties in the face of the fiscal emergency of the famine, Salisbury denounced as a "species of International Communism" the idea "that a rich Britain should consent to penalize her trade for the sake of a poor India."

    Like other architects of the Victorian Raj, Salisbury was terrified of setting any precedent for the permanent maintenance of the Indian poor. As the Calcutta Review pointed out in 1877, "In India there is no legal provision made for the poor, either in British territory, or in the native states; [although] the need for it is said by medical men and others, to be exceedingly great." Both Calcutta and London feared that "enthusiastic prodigality" like Buckingham's would become a trojan horse for an Indian Poor Law. In its final report, the Famine Commission of 1878-80 approvingly underscored Lord Lytton's skinflint reasoning: "The doctrine that in time of famine the poor are entitled to demand relief ... would probably lead to the doctrine that they are entitled to such relief at all times, and thus the foundation would be laid of a system of general poor relief, which we cannot contemplate without serious apprehension...." None of the principal players on either side of the House of Commons disagreed with the supreme principle that India was to be governed as a revenue plantation, not an almshouse.

The `Temple Wage' 
Over the next year, the gathering horror of the drought-famine spread from the Madras Presidency through Mysore, the Bombay Deccan and eventually into the North Western Provinces. The crop losses in many districts of the Deccan plateau and Tamilnad plains (see Table 1.2) were nothing short of catastrophic. Ryots in district after district sold their "bullocks, field implements, the thatch of the roofs, the frames of their doors and windows" to survive the terrible first year of the drought. Without essential means of production, however, they were unable to take advantage of the little rain that fell in April-May 1877 to sow emergency crops of rape and cumboo. As a result they died in their myriads in August and September.

    Millions more had reached the stage of acute malnutrition, characterized by hunger edema and anemia, that modern health workers call skeletonization. Village officers wrote to their superiors from Nellore and other ravaged districts of the Madras Deccan that the only well-fed part of the local population were the pariah dogs, "fat as sheep," that feasted on the bodies of dead children:

[A]fter a couple of minutes' search, I came upon two dogs worrying over the body of a girl about eight years old. They had newly attacked it, and had only torn one of the legs a little, but the corpse was so enormously bloated that it was only from the total length of the figure one could tell it was a child's. The sight and smell of the locality were so revolting, and the dogs so dangerous, that I did not stay to look for a second body; but I saw two skulls and a backbone which had been freshly picked.

Officials, however, were not eager to share such horrors with the English or educated Indian publics, and the vernacular press charged that starvation deaths were being deliberately misreported as cholera or dysentery mortality in order to disguise the true magnitude of the famine.

    Conditions were equally desperate across the linguistic and administrative boundary in the Bombay Deccan. Almost two-thirds of the harvest was lost in nine Maharashtran districts affecting 8 million people, with virtually no crop at all in Sholapur and Kaladgi. The disaster befell a peasantry already ground down by exorbitant taxation and extortionate debt. In the Ahmednagar region officials reported that no less than three-fifths of the peasantry was "hopelessly indebted," while in Sholapur the district officer had warned his superiors in May 1875: "I see no reason to doubt the fact stated to me by many apparently trustworthy witnesses and which my own personal observation confirms, that in many cases the assessments are only paid by selling ornaments or cattle." (As Jairus Banaji comments, "A household without cattle was a household on the verge of extinction.") Ahmednagar with Poona had been the center of the famous Deccan Riots in May-June 1875, when ryots beat up moneylenders and destroyed debt records....

....MUCH MORE

And the review by Mr. Sen: 

Apocalypse Then

The little-known story of drought, famine and pestilence that killed millions at the turn of the last century. 

Most recently on the Monsoon:

May 29 - "India forecasts monsoon rains at 11-year low in 2026, fanning inflation risk" (90% of average forecast)

May 15 - Agriculture: "Monsoon rains to hit southern Indian coast early, spurring crop planting"

It is hard/impossible to overstate just how important* the monsoon is....

And as noted exiting May 2025's "Can India use AI to predict extreme weather events?":

....On a much more serious note, the December 2000 book  Late Victorian holocausts : El Niño famines and the making of the third world examines how the crop failures combined with British administrative mismanagement resulted in the deaths of some 60 million people.

The fact is that since the 1866 -1869 famines in Sweden and Finland famine is a political decision or lack of decision. The technology exists to move food to where it is needed.

Actually, in many respects the Irish famine years of the 1840's, two decades earlier,  were the first of the political famines.

*How important? June 2018:

India to Build Supercomputer To Better Forecast Monsoon
Complex chaotic systems are some of the toughest things for the human mind to understand and one of the biggest challenges for model makers. (another of the big challenges is model makers recognizing their own biases)

On a related subject, the current trend in supercomputer construction is to use a combination of CPUs and GPUs connected by superfast links which puts the Graphics Processing Unit manufacturers such as NVIDIA in an enviable position. Both the planned-to-be-fastest-in-the-world 'puter at Oak Ridge and the current 2nd fastest at ORNL use this approach as does the just upgraded Swiss machine (7th fastest)....
Also July 2009's "Naked girls and gold demand". 
A failure of the rainy phase of the monsoon cycle combined with crop failures in any one of the world's breadbaskets, Australia, Brazil, Canada, USA, Ukraine would lead to higher prices if it lasted one year, malnutrition if the combination lasted two years and outright starvation if it got to three growing seasons. 

On the other hand a rainy season that is too intense can kill thousands/tens of thousands across south Asia.

"Apollo chief economist says ‘China Shock 2.0 is here’ as new wave of Chinese technology floods global markets—and it’s bad news for American companies"

不战而屈人之兵,善之善者也
"To subdue the enemy's troops without fighting is the highest of the high"
—The most famous statement by Sun Tzu in The Art of War*

From Fortune Magazine:

China’s first multi-decade disruption to the U.S. market was easy to spot: exports of cheap clothes, furniture and electronics pouring in and the hollowing out of parts of the American manufacturing base. But the second is more subtle, comes with more ramifications for U.S. companies, and seems to have arrived. 

“China Shock 2.0 is here,” Torsten Slok, chief economist at Apollo Global Management, wrote in a note on Friday. He argued that this time, China is increasingly exporting the kinds of products that advanced economies once expected to dominate domestically, namely: EVs, semiconductors and other high-tech goods.

China’s exports rose 24% in July, slowing slightly from the month before but propped up by increased demand for EVs and electronics, with high-tech exports surging nearly 41% in the January-July period from a year before, just as semiconductor exports doubled

This means that the concern for companies now isn’t just that China is manufacturing cheaper goods, but that it’s competing with the U.S. in higher-value industries. This could threaten American companies even as consumers are less exposed to Chinese products and tech because of tariffs. 

China Shock 1.0 was on Walmart shelves, and the new one is in tech

Slok is not alone. Federal Reserve economists penned a note in May with a similar “China Shock 2.0” theme, finding that the products driving China’s export boom changed from labor-intensive goods in the early 2000s to capital- and tech-intensive industries now.

“Taken together, these elements suggest that “China Shock 2.0” is not simply a continuation of earlier trends, but a new phase of global trade integration,” they wrote. 

Slok himself referenced Brad Setser, a CFR senior fellow and former U.S. Trade Representative adviser widely credited with coining “China Shock 2.0.” Setser’s the one who first flagged that this round is different: China now controls the cutting-edge production itself, so there’s no cheaper country left to offshore to, and shrinking Chinese import demand means the export surplus just floods everyone else.

Electric vehicles are perhaps the clearest example. BYD surpassed Tesla as the world’s largest seller of fully electric vehicles in 2025, delivering 2.26 million battery-electric cars compared with Tesla’s 1.6 million. Ford CEO Jim Farley also called BYD the “best in the business” on cost, supply chains, manufacturing and IP.

What also distinguishes the second shock from the first is the new trade relationship China has with other countries. During China’s first export boom, Chinese factories often imported parts, assembled the finished product and shipped it abroad. This made it so that even as Chinese exports surged, manufacturers abroad could still benefit by supplying components.

Now, the Fed economists found that China is increasingly making those inputs itself, meaning that as China has exported more, it also began to import manufactured goods less....

....MUCH MORE 

At the Federal Reserve Board, FEDS Notes, May 29 2926:

China shock 2.0: How China’s ongoing export surge differs from the early 2000s 

China's accession to the World Trade Organization in 2001 marked the beginning of one of the most consequential episodes in the history of global trade. The subsequent surge in Chinese exports–often referred to as the "China Shock"–has been widely associated with large adjustments in production patterns, labor markets, and trade balances across the global economy (Autor et al. 2016; Pierce and Schott 2016)..... 

*不战而屈人之兵,善之善者也 (Bù zhàn ér qū rén zhī bīng, shàn zhī shàn zhě yě) 

— "To subdue the enemy's troops without fighting is the highest of the high." Literal translation: Not war yet subdue another's soldiers, [is] good of good — Sun Tzu's principle of winning without combat. Chapter 3 of The Art of War. Sun Tzu's most quoted principle: the best victory is the one where no battle takes place. Fighting is costly, risky, and destructive even when you win. The supreme strategist wins by causing the opponent to yield without combat — through positioning, deterrence, psychological pressure, or diplomatic isolation. Used when Quoted as the gold standard of strategy — winning without the costs of combat. Used in business (market dominance without price wars), diplomacy (achieving objectives without military engagement), and conflict resolution (defusing disputes before they escalate).

Chinese Proverbs Hub 

Saturday, August 29, 2026

"Blue-Collar Jobs Are the New Flashpoint in Data-Center Fight"

These are very good, very high paying ($80K to $240K per year plus gold-plated pension/medical/vacation time etc. benefits) jobs and the trades unions are not playing around.

From the Wall Street Journal, August 28:

Trade unions threaten to withhold support for politicians, joining the building backlash

Much of the public outcry over data-center construction has centered on electricity costs, water consumption and noise. Now, a new battlefront is opening up over jobs, too.

Call it the backlash to the backlash: Nationwide resistance to the construction has grown so broad that politicians on both sides of the aisle have halted approvals or tightened oversight as midterm elections approach. Unions and construction trade groups are now entering the fray from the other side, warning that such actions endanger thousands of building-related jobs. They are threatening to withhold support of candidates opposing the data-center projects.

In some cases, these groups are breaking with longtime political allies to support those who back construction. In a memo circulated to members and viewed by The Wall Street Journal, the Steamfitters UA Local 602, whose members install mechanical piping systems in Virginia, Maryland and Washington, D.C., wrote that it is drawing a “clear line” and won’t support politicians who oppose the facilities. “This is an existential moment for Local 602,” it said.

In Kansas, a union representing HVAC and railroad workers broke from decades of precedent to endorse Republican state Sen. Ty Masterson for governor, in part because of the Democratic candidate’s opposition to the construction. In some cases, the unions are working alongside companies building data centers and running artificial-intelligence models in their advocacy.

Sidney Bonilla, treasurer and business manager of Steamfitters UA Local 602, said his members knock on doors for candidates and help finance campaigns. Though the union has historically tended to back Democrats, Bonilla said those dollars and organizational support are on the line.

The union will scrutinize politicians’ records on the data-center issue before offering support, he said, and he expects other unions to follow suit. “We are dependent on these jobs,” he said.

The union support is a welcome development for data-center companies, which are now contending with a slowdown in approvals for new construction. The build-out is key for AI companies such as OpenAI and Anthropic to support more powerful models and meet growth targets, and it has become a major economic driver

All of that has made for tricky political terrain ahead of midterm elections. In Wisconsin, Democratic gubernatorial candidate David Crowley, the son of an electrician, has won support from some building trade unions and been attacked by Republican Rep. Tom Tiffany for being in the pocket of labor groups and the companies building data centers. Crowley has supported some restrictions on data centers but stopped short of backing a ban or pause.

In other races, Democrats have criticized their opponents for supporting the data-center boom. Some Republicans are adopting the tactic, even if they previously supported the facilities and their economic benefits.

“You’re not a friend if you’re taking away great career opportunities,” said Don Slaiman, political coordinator of IBEW Local 26, a union representing electricians in Washington, Maryland and Virginia. Many of the jobs pay good wages with benefits, he said. “This is a once-in-a-generation opportunity to really get in the upper-middle class.”....

....MUCH MORE 

Meanwhile, Axios (among others) is reporting (August 28):

China is secretly fueling America's data center rage 

I don't know if that is true, a lot of the pressure groups and their funders say it's not, but to repurpose a paraphrase from a July post:

As Clausewitz might have said, had he been born 200 years later than he actually was:

Chips are AI is just war by other means. 
I know. It's a paraphrase/misquote. But work with me here. And have some Clausewitz for being so patient:

The Softer Side Of Clausewitz 

https://upload.wikimedia.org/wikipedia/commons/a/a0/Clausewitz.jpg 

U.S. Drought Monitor: Fifth Consecutive Week Of Slow Spread/Increased Intensity

Data up front: 

Week
None
D0-D4
D1-D4
D2-D4
D3-D4
D4
2026-08-2522.5377.4756.6131.5911.761.75179
2026-08-1823.7976.2152.7029.8710.601.35171
2026-08-1126.3873.6250.3829.5010.271.04165
2026-08-0429.0570.9548.5428.579.510.95159
2026-07-2832.0867.9247.8928.3010.000.86155
2026-07-2134.7665.2445.7729.1410.710.93152

This is a 0 (wetter than water) to 500 (dryer than the driest desert) scale. 

The table and maps + commentary are from the University of Nebraska-Lincoln, August 27:

This Week's Drought Summary

During the early part of last week, an amplified ridge-trough pattern over North America brought widespread late summer heat to the West and south-central US, with milder temperatures overspreading the Corn Belt and gradually shifting to the Northeast and mid-Atlantic states. The north side of the mean ridge provided a focus for convective activity, with narrow swaths of locally heavy rainfall extending across Nebraska and Missouri, while shortwave troughs brought several rounds of storms to the eastern Corn Belt and parts of the mid-Atlantic and southern New England. Underneath the ridge, dry weather combined with excessive heat continued to promote rapid onset drought across much of the South region. Across the Southeast, summer convection competed with enhanced evapotranspirative demand due to hot temperatures, causing some degradation in areas that missed out on thunderstorm activity. Across the West, an active monsoon pattern continued to bring localized relief to parts of Arizona and New Mexico, while excessive heat and drier conditions promoted drought expansion across eastern New Mexico and portions of the Intermountain West, Great Basin, and the Northwest....

 https://droughtmonitor.unl.edu/data/png/current/current_usdm.png

....MUCH MORE 

The Big Change: From Journalism To Postjournalism

The key concept, that post-journalism is written to confirm the reader's biases is almost a truism, for it can be no other way. The economics of the business will not allow a platform to constantly challenge and make uncomfortable the reader who pays the bills.

From Andrey Mir at Human-as-Media, December 30, 2025:

Postjournalism: The reversal of the media from news supply to news validation 

“If the news is important, it will find me,” said Brian Stelter in 2008. People inevitably learn
 the news that matters to them. Neither effort nor payment is required. When the scarcity of 
content reverses to abundance, people no longer hunt for news—news hunts for people.

A chapter from The Digital Reversal. Thread-Saga of Media Evolution. 

With the internet, news reliability might have degraded, but overall, people became better informed. This flipped the value in content production: news stopped being a commodity and became bait to attract users for other purposes—mainly engagement. 

It wasn’t a tragedy for the news media yet, as they had always used news to attract audiences and sell them to advertisers. The real issue was that advertisers moved to digital platforms too, where they were provided with much better service than the media could ever offer.

First, classifieds moved to digital, taking a third of newspapers’ revenue with them. Corporate ads followed. By 2014, ad revenue in newspapers had dropped below 1950 levels. The entire economic foundation of the press vanished in just a decade.


The decline of ad revenue in newspapers. 
Source: The Newspaper Association of America. [i]

The collapse of advertising was a catastrophe. Throughout the 20th century, the media were 70–80% funded by ads. Journalism was built on the advertising model. When ad revenue dropped below what the media could survive on, further reversals became inevitable.

The first was the reversal of the business model itself. In 2014-2015, newspapers’ ad revenue dropped below circulation revenue. Not because subscriptions or copy sales grew—they stalled or declined as well. But ad revenue declined faster.

(Experts know that later the New York Times demonstrated subscription growth unmatched in the industry, but it had little to do with subscriptions to news. Most of the growth came from other products and packages.)

Similar dynamics hit TV and radio—ad money was diverted to digital platforms. As a result, the business model of news media flipped from predominantly relying on ads to relying more on readers/viewers. The flip happened in the early 2010s everywhere.

***

Unrecognized by the public and the industry, the business reversal changed newsrooms’ approaches and mentality. After some awkward attempts to replace lost revenue with auxiliary businesses, the media returned to their point of origin: the readers.

As everything was moving online—it was the period of the Digital Rush—the media tried to keep up. They started chasing digital audiences, which at the time consisted mostly of the educated, urban, young, and progressive. Most MSM targeted them as potential digital subscribers.

This is where another unnoticed reversal happened: instead of covering news for a broad audience, as they did under the advertising model, news media started catering to a narrow group of digital progressives. The reversal in business model led to an ideological reversal.

Attempts to attract early digital audiences radically changed news coverage, but no business came out of it. Progressives were truly progressive—they didn’t consume news from old media. Most paywalls, a popular trend in the industry in 2011–12, failed.

The environment itself delivered the news. One didn’t even need to visit media websites—news outlets posted their best headlines in our newsfeeds. With friends’ comments selected by the Viral Editor, it provided a fairly reliable picture of the day.

However, if something worrisome happened, people still needed someone authoritative to confirm how bad it was. Old media suited the role of bad-news notaries very well. They got the prompt and flipped news supply into news validation....

....MUCH MORE 

Previous visits with Mir:

Over the years we've linked to some of Mir's own writing with most links embedded in:
Andrey Mir: "How the Media Polarized Us"

...Having read a lot* of Mr. Mir's words I think he is too facile in timing the polarization; that he is shoehorning the facts into his mental matrix. To be clear, this piece is far, far from as egregious an example as some of the books that were popular a decade or two ago: "Business Lessons From Attilla the Hun," where an author might have one decent insight but then tries to stretch it out for two hundred pages, jamming as many square pegs into round holes as necessary to get the needed word count. 
 
Rather, in Mr. Mir's case it's just that he doesn't put as much emphasis on the fact that American media has always been partisan, and that in the half-decade 1985 -1990 it went hyper-partisan. 
However, even if that observation is true (it may not be, who knows?), Mir knows more about media ecology than just about anyone writing on the topic. period.
*Previous links to Andrey Mir:
I'll get off this Andrey Mir, post-journalism kick, I promise. But not yet. (shades of St Augustine)

The reason for my borderline obsession is the fact that mass media has changed so dramatically over the last five or ten years, which makes it imperative to understand and possibly channel the forces that attempt to shape our everyday view of reality. And it really is getting close to the point that the call to arms "If it isn't censored, it's a lie" is a description of what is going on.

And that would be a shame, we like journalists and, among other reasons, get some of our best ideas from them.

Originally posted January 24, 2026

Capital Markets—Looking Ahead: "September 2026 Monthly"

From Marc Chandler at Bannockburn Global Forex, August 29:

September brings a cluster of events that will shape the macro narrative into year-end. A Xi-Trump meeting, German state elections, a Federal Reserve decision with a new Summary of Economic Projections, and an ECB meeting that is not finished hiking. Each carries its own logic, but together they sketch the contours of the fourth quarter.

In our more frequent analysis, we noted that while the dollar had been dragged down by disappointing economic data and pushing of a Fed rate hike further out, we were cautious as the momentum indicators were over-extended.  The tension has been resolved.  The market took a hawkish message away from Fed Chair Warsh at his Jackson Hole speech, increasing the odds of not just a September hike but another one before year end.  And the momentum indicators for the dollar turned higher.  Even if the market has overreacted to Warsh's comments, the upside dollar correction has only just begun, it would appear. 

Xi-Trump: Trade, Not FX....

....MUCH MORE 

"Nine Dynastic Sagas That Consider the Architecture of Inherited Power"

From Observer, 

Spanning Renaissance Florence, Jackie Onassis’s Manhattan and 1990s Morocco, these titles trace what happens when wealth and legacy become inseparable. 

From the biblical tale of Cain and Abel to HBO's Succession, family sagas centering on power and inheritance have always exercised a hold on the public imagination. There is something raunchy, dramatic and almost thrilling in witnessing the freewheeling fortune of a legendary family, idolizing the patriarchs, romanticizing the women and observing the scions, who stumble and more often than not self-destruct in the eye of the masses. Whether it's the families embodying politics and prestige, such as the Kennedys, Windsors and the Gandhis, generational American billionaires like the Rothschilds and the DuPonts, or corporate empires selling taste like the Agnellis and the Hermès family, visceral impulses and unforgettable drama result when wealth and power are inextricably tied to bloodlines.

Far before the term "nepo baby" was coined or the Kardashians premiered on reality TV, tabloids, an entire literary shelf of memoirs and biographies and Graydon Carter's Vanity Fair were devoted to narrating the lives of the rich, famous and trust funded (or those with Swiss bank accounts: take your pick). And yet, more than just money, these dynasties dictated fashion, taste and culture. The 1980s saw an excess of Gucci trademark handbags, the interlocking Gs in the logo signaling an almost tacky wealth, and the Medicis in medieval and Renaissance Italy commissioned enduring works of art like Botticelli's The Birth of Venus and Donatello's bronze statue of David, the decapitated head of Goliath lying at his feet.

Even within the realm of literature, the drama of lineage and succession remains timeless, ranging from Zeus overthrowing his father to Shakespeare's plays about the Plantagenet battles for the throne of England. Classics like John Steinbeck's East of Eden and William Faulkner's Absalom, Absalom! spotlight power struggles around the primordial sense of belonging that can only be tied to one's last name. It's no surprise then that the dynastic wheel of fortune continues to fascinate with its twists and turns, particularly now when the 25 richest families in the world have amassed $2.9 trillion. The following books trace how the world's most storied families, real and imagined, turned fortune into myth and, in some cases, myth into a battle of heirs.

  • 'The House of Gucci: A Sensational Story of Murder, Madness, Glamour and Greed' by Sara Gay Forden
  • 'Empire of Pain: The Secret History of the Sackler Dynasty' by Patrick Radden Keefe
  • 'Medici Money: Banking, Metaphysics and Art in Fifteenth-Century Florence' by Tim Parks
  • 'Marella Agnelli: The Last Swan' by Marella Caracciolo Chia
  • 'At 24 Rue Faubourg Saint Honoré' by Frédéric Laffont
  • 'Wide Sargasso Sea' by Jean Rhys
  • 'An Oresteia' by Aeschylus, Sophocles and Euripides
  • 'Jackie As Editor: The Literary Life of Jacqueline Kennedy Onassis' by Greg Lawrence
  • 'I'll Take the Fire' by Leïla Slimani
  • 'The House of Gucci: A Sensational Story of Murder, Madness, Glamour and Greed' by Sara Gay Forden

    "Who is that girl over there in the red dress who looks so much like Elizabeth Taylor?" Maurizio Gucci asked a friend at a party in 1970. He then approached Patrizia Reggiani, sparking the tempestuous romance that made and broke the Gucci dynasty. Ambitious and wanting to marry a man with an esteemed name, Patrizia helped Maurizio take control of the Florentine fashion house and revive the brand on the international market, even as lawsuits from relatives flooded in. And yet, it was precisely Patrizia's "relentless criticism and bossiness" that precipitated their bitter divorce, and later, Maurizio's murder at the hands of a hitman hired by his scorned ex-wife. Pulsing with passion and betrayal, Forden's book is a murder mystery rooted in detangling the complex feuds of the Gucci family, fixating any reader with its real-life rise and fall.

    'Empire of Pain: The Secret History of the Sackler Dynasty' by Patrick Radden Keefe

    The story of the Sacklers is the apex of the American Dream: Jewish immigrants in Brooklyn who initially ran a small grocery store, growing into a multibillion-dollar empire at the intersection of copywriting, medicine and finding pharmaceutical solutions for psychiatric illnesses. In his 640-page magnum opus, Radden Keefe traces the lineage of the Sacklers from the brilliant, philandering Arthur Sackler, who ran the first experiments using histamine, helmed the ad agency that marketed Pfizer and other groundbreaking drugs to hospitals, and outsourced his rare art collection to the Met, to the family's ongoing downfall in several lawsuits charging Purdue Pharma with causing the opioid epidemic. True to form, Radden Keefe's painstaking research of archives, more than 100 interviews and attention to visual detail in photographs lend vigor to the lifelike narration of the book. Empire of Pain is more than just a journalistic investigation; it's a family epic of mythic proportions.

    'Medici Money: Banking, Metaphysics and Art in Fifteenth-Century Florence' by Tim Parks

    Perhaps the most iconic family of bankers in history, the Medicis famously funded the Italian Renaissance, propping up architectural landmarks like St. Peter's Basilica and championing artists like Botticelli, Michelangelo, da Vinci and more. In chatty, witty prose, Tim Parks breaks down the Medici family's inner dynamics and the chokehold they had on Europe by gifting the Vatican generous loans. Ranging from Machiavellian schemes of murder, the sexual hedonism of slave-concubines and illegitimate children, and the management of money that kept it all going, Parks illustrates the links between Catholic guilt (and punishment), Italian art and the Medicis....

    ....MUCH MORE  

    "The wine made by British monks that’s making bank"

    From The Hustle, July 1:

    No one drinking anymore? Not on their watch

    You’ve seen the bottles of health elixirs lining the grocery store. Want to hit a bar on a school night? There’s a mocktail for that. Cans of seltzer and near-beer line grocery store shelves. No one is drinking anymore.

    Across the US and North America, alcohol sales are down. Alcohol spending, as a share of overall spend, is at a 40-year low.

    Revenues are in freefall: Bloomberg estimates shares of the world’s top alcohol companies have lost ~$830B in the last four years.

    One British company, with a wild, checkered past, is bucking the trend. How?

    Wreck the hoose juice

    Known now to local fans as “wreck the hoose juice,” “commotion lotion,” or just “Bucky,” Buckfast tonic wine had more dignified origins.

    Production began in 1882. Initially sold as a medicine, the tonic was first adapted from a Spanish mistella recipe. A group of Benedictine monks living in the stately Buckfast Abbey on the moors of Devon, England, added a proprietary spice mix, and Buckfast tonic wine was born.

    As a side hustle to help fund their charitable works, the monks opened a bottle shop and filled orders that came in by mail.

    By 1927, they were selling 1.4k bottles a year.

    That same year, the abbott and a group of business partners established a new company, J. Chandler and Co., to handle the wine’s distribution. Demand kept growing.

    Advertisements extolled it as a “health restorative of unequalled excellence,” made “from a secret process known only to the monks.” The monks’ reputation, they said, was guarantee of its purity, and it could help with convalescence, depression, anemia, depleted vitality, loss of appetite, and more.


    Advertisement from Dublin’s Evening Herald in 1928. (Photo by newspapers.com)

    Over the decades, Buckfast’s recipe sweetened and evolved. J. Chandler and Co. distributed the wine through chemists, which added to its medicinal image. In winter, and during reported flu outbreaks, sales went up. By the 1950s, they were advertising it as giving imbibers “a new lease of life” if they were recovering from an illness.

    In 1968, new regulations meant companies without any health benefits had to tweak their advertising. “To make you feel better, be better,” one advertisement read....

    ....MUCH MORE 

    Friday, August 28, 2026

    Deutsche Bank Research: "AI at 70: 14 lessons from a lifetime of boom and bust"

    Following on the post immediately below, "Would There Be an AI Revolution If There Were No Nvidia?" (NVDA).

    From the Deutsche Bank Research Institute via Beijing's 36Kr-European Central Station, August 18: 

    Deutsche Bank sorts out the 70-year development trajectory of AI and sums up 14 historical takeaways. AI is witnessing exponential non-linear growth, and falling costs will spur even greater demand. However, technical routes see frequent iterations, with bottlenecks emerging in hardware and supply chains. While AI has gained rapid popularity among consumers, its commercial application in the enterprise segment is still in the early stage. Current market valuations are nearing historically high levels, and investors need to stay alert to risks brought by technological iteration and supply chain disruptions.

    Deutsche Bank's latest research report sorts out the development context of artificial intelligence since its birth in 1956, extracts 14 key insights from historical patterns, and provides a reference for investors to judge the trend of the current AI boom.

    This August marks exactly 70 years since the 1956 Dartmouth Summer Research Project on Artificial Intelligence, the birthplace of AI. Adrian Cox, Thematic Strategist at Deutsche Bank Research, points out in the latest report that the 70-year history of AI has been filled with alternating booms and busts, and the current round of investment and valuation frenzy is repeating the paradigm of technological revolutions that have appeared many times in history.

    The report argues that "context" is critical to understanding the future direction of AI. From non-linear growth and infrastructure bottlenecks to the expansion and bursting of valuation bubbles, historical signals are clearly identifiable. The report states directly that some people may claim that "this time is different", but the data from the past 70 years provides another frame of reference — for investors betting on the AI track, these insights are directly related to asset allocation logic and risk judgment.

    01 Growth is not linear, and is often severely underestimated

    The report highlights the core feature of AI progress at the beginning: non-linearity. Presenting the historical data of training computing power on a logarithmic scale, it can be clearly seen that since 1956, the growth of computing power used to train major AI systems has spanned dozens of orders of magnitude, while the visual presentation of linear charts almost completely obscures this trend. Exponential growth is intuitively very easy to underestimate, which is the first cognitive threshold for understanding the AI wave.

    Closely related to this, the progress speed of AI has surpassed Moore's Law. Traditional computing power doubles every 18 to 24 months, but after entering the era of deep learning, the average annual growth rate of computing power has reached about 4 times, far higher than the annual growth rate of about 1.4 times before the deep learning era. The reason lies in the simultaneous improvement of multiple factors such as system scale expansion, memory enhancement, and algorithm optimization, forming a superposition effect.

    02 Technical routes continue to iterate, today's leader is not necessarily tomorrow's winner

    The report presents the 70-year evolution of routes through the AI technology spectrum: from symbolic logic and expert systems to statistical machine learning, deep learning, and then to the currently dominant large language models. Each generation of mainstream technology has gone through a cycle from rise to replacement. Some routes (such as recurrent neural networks) have been surpassed, while others are still evolving in parallel. The report points out that large language models may give way to new paradigms such as "world models" in the future, and the intergenerational replacement of technologies does not depend on the will of current leaders.

    Historical changes in market share also confirm this point. Internet Explorer once outperformed Netscape, but was later replaced by Chrome. In the current competitive landscape of generative AI platforms, ChatGPT leads in monthly visits, but Google Gemini, DeepSeek and Claude are all catching up rapidly. Early advantages do not equal long-term moats.

    03 R&D accumulation determines the competitive landscape, and the rise of DeepSeek is no accident

    The sudden rise of Chinese AI models, represented by DeepSeek, seems to be "overnight success" on the surface, but it is actually the result of years of R&D investment accumulation. Data shows that China has surpassed the United States in total R&D expenditure in 2024, and its catching-up speed in the number of major AI models is also remarkable. In terms of the number of AI patent grants, China's growth curve is also far ahead of other economies. For investors, this means that changes in the competitive landscape often accumulate at the underlying level for many years before they are visible on the surface.

    04 Cost reduction will not compress demand, but will instead expand demand

    The report cites the "Jevons Paradox" to illustrate that the sharp drop in the cost of AI use will not lead to a reduction in total expenditure, but will instead stimulate a surge in demand. Since 2006, the cost of GPU computing power has dropped by more than 99%, but according to the forecast of the International Energy Agency (IEA), global data center power consumption will double from 2024 to 2030. Lower marginal cost means more application scenarios and higher total demand....

    ....MUCH MORE 

    Here's the original at DB, 17 page PDF, downloadable.

    If interested see also the RAND Corporation's relationship with AI: 

    RAND: "Artificial Intelligence and Biotechnology: Risks and Opportunities"

    RAND has a very deep history in artificial intelligence. From Jeremy Norman's History of Information:
    Newell, Simon & Shaw Develop the First Artificial Intelligence Program

    During 1955 and 1956 computer scientist and cognitive psychologist Allen Newell, political scientist, economist and sociologist Herbert A. Simon, and systems programmer John Clifford Shaw, all working at the Rand Corporation in Santa Monica, California, developed the Logic Theorist, the first program deliberately engineered to mimic the problem solving skills of a human being. They decided to write a program that could prove theorems in the propositional calculus like those in Principia Mathematica by Alfred North Whitehead and Bertrand Russell. As Simon later wrote,

    "LT was based on the system of Principia mathematica, largely because a copy of that work happened to sit in my bookshelf. There was no intention of making a contribution to symbolic logic, and the system of Principia was sufficiently outmoded by that time as to be inappropriate for that purpose. For us, the important consideration was not the precise task, but its suitability for demonstrating that a computer could discover problem solutions in a complex nonnumerical domain by heuristic search that used humanoid heuristics" (Simon,"Allen Newell: 1927-1992," Annals of the History of Computing 20 [1998] 68).

    The collaborators wrote the first version of the program by hand on 3 x 5 inch cards. As Simon recalled....

    For a bit more on Mr. Simon here's the introduction to 2016's "Interview: Manuela Veloso Head of Machine Learning, Carnegie Mellon University":

    Our readers probably know Carnegie Mellon more for the  top-ranked financial engineering program (Master of Science in Computational Finance) but artificial intelligence was pretty much invented at CMU by Herbert Simon and Allen Newell. Simon received the Nobel in Economics but it actually could have been for any of four or five subjects, he was quite the polymath.

    Newell had to settle for the Turing award (along with Simon) from the Association for Computing Machinery, probably the root'in-tootin high-falootinest tchotchke in the computer biz.
    The Association for the Advancement of Artificial Intelligence along with the ACM subsequently named an award in Newell's honor. Ditto for CMU.

    The University's machine learning department was the first in the world to offer a doctorate and as far as I know is still the largest.
    A department, for one branch of AI.

    Carnegie-Mellon used to have a world class robotics Institute but Uber gutted it with a combination of cash and stock options leaving a Dean and a couple robots to rebuild.
    One of the robots is said to be in advanced negotiations with the Ube-sters.