🇺🇸 💵 The Potemkin Village Economics of Late Liberalism
⬛️ Macroeconomist Philip Pilkington examines the similarities between the economics of Brezhnev’s late-soviet economy and Biden’s version of the same downward spiral.
🔶️ Living under the late-Soviet model was not typically experienced as nightmarish or even scary, but rather as silly and fake. It was a sort of “clown world”, to quote a well-known contemporary trope, where nothing worked, and leaders were not taken seriously. This is captured in a popular Soviet joke of the time. It runs like this: Stalin, Khruschev, and Brezhnev are on a train going to the Russian countryside but suddenly it stops. As the engineer and the driver attempt to work out the problem Stalin gets angry and starts to shout: “I will solve this. Send the driver to the gulag for being an ideological deviationist and shoot the engineer for being a capitalist saboteur!” The trio wait for the train to shunt into action, but it does not move. Khruschev strokes his chin and then pipes up: “This is not right, let’s release the driver from the gulag.” But without an engineer, the train still fails to move. At that moment, Brezhnev takes a large shot of vodka, smiles, and says: “Comrades! No need to worry! Pull down the window shades and let’s start rocking the train from side to side!”
🔶️ If all of this sounds remarkably familiar, it should. It sounds increasingly like our contemporary experience of late liberalism. Although the popularity of alcohol seems to have given way to the widespread use of marijuana and psychedelics – not to mention the horrifying proliferation of opiates, a nihilistic death-plague the likes of which even the Soviet Union never experienced. The profusion of ‘memes’ in our era bears a striking resemblance to the ‘samizdat’ – or unofficial, self-published cultural production – that spread in the late Soviet Union. The election of eccentric political leaders like Donald Trump or Javier Milei, who reflect the prevailing cultural cynicism of their supporters, seems exactly like what would have happened were the Soviet Union an electoral democracy in the late-1970s.
🔶️ Are we so deep into late liberal decline that the authorities are simply making the numbers up? There has been an unusual amount of data revisions these past two years, but it seems unlikely that these explain the booming GDP growth numbers. Rather the GDP numbers seem to be explained by the fact that the Biden Administration is running enormous government fiscal deficits. Recent estimates put the fiscal deficit at 8.6% of GDP in 2023. Outside of the unprecedented response to the COVID-19 pandemic, these sorts of budget deficits are associated with deep recession of the sort we saw in 2008-09. But GDP numbers are telling us something deeply counterintuitive, namely that the economy is not in deep recession aren’t wrong, but is booming. What is going on? Simply put, the government deficit is propping up the economy like a puppeteer holding up a marionette.
https://www.postliberalorder.com/p/the-potemkin-village-economics-of
🇺🇸 #Oklahoma high school principal (Kirk Moore) seen charging at and disarming a school shooter.
The suspect, identified as 20-year-old Victor Hawkins, was a former student who said he wanted to shoot up the school “like the Columbine shooters did.” While taking down the shooter, Moore was shot in the leg. He is expected to recover.
When the Principal woke up that day, he never thought he would be tackling a gunman.
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🇨🇳🛢 How much strategic oil does the world actually have in reserve?
Global strategic crude oil inventories stood at ~2.5 BILLION barrels as of December 2025, according to the US Energy Information Administration.
China holds by far the largest stockpile at 1,397 million barrels, more than 3 times the US Strategic Petroleum Reserve of 413 million barrels, which itself sits at only 58% of its full storage capacity of 714 million barrels.
China added an average of 1.1 million barrels per day to its strategic inventories throughout 2025, with preliminary data suggesting it continued building stockpiles in early 2026 ahead of the Iran War.
Japan holds the 3rd-largest reserve at 263 million barrels, followed by OECD European countries at 179 million barrels.
Meanwhile, the US is releasing 172 million barrels from its Strategic Petroleum Reserve to suppress oil prices, part of a broader 400 million barrel coordinated release agreed by 32 IEA member nations in March.
🔗 ...
🛢 JP Morgan Warns Oil Market Out of Balance, Prices Must Rise
🔸The closure of the Strait of Hormuz, through which roughly 20% of the world’s oil flows, has removed 13.7 million barrels per day from global supply in April alone. A JP Morgan research note warns the market has no good way to replace it.
🔸Normally, spare production capacity in Saudi Arabia and the UAE acts as the market’s shock absorber. But that buffer has effectively been removed, eliminating the system’s first line of defense.
🔸With spare capacity unavailable, markets turned to inventories
➤ Global stockpiles are now being drained at ~7.1 mbd in April, an extraordinary pace, according to the note.
🔸Meanwhile, demand is collapsing because supply simply isn’t reaching users — “forced demand destruction.”The hardest hit sectors include:
▪️ Petrochemical plants across Asia are shutting down or slashing output as LPG, ethane, and naphtha flows from the Gulf collapse
▪️ Airline jet fuel ...
🛢⛽️ Global oil inventories are heading toward RECORD LOWS:
Global visible oil inventories have fallen -255 million barrels since the start of the conflict on February 27, to 7,864 million barrels.
Total estimated oil draws, including non-OECD refined products storage, have accelerated to 10.9 million barrels per day in April, the largest monthly draws on record since 2017.
Cumulative estimated draws since the start of the war now stand at 474 million barrels, with Hormuz flows holding at ~10% of normal, or 2.0 million barrels per day.
Meanwhile, even in an optimistic scenario where Strait of Hormuz flows begin recovering by late April, it is unlikely to prevent global visible inventories from reaching all-time lows, according to Goldman Sachs.
As inventories keep falling, physical oil markets are likely to require sharply higher prices for immediate delivery, since buyers cannot wait months for cheaper futures delivery when stocks are running critically low.
Goldman also warns...