Authored by Peter C. Earle, Ph.D,

Artificial intelligence may well be the most important technological development of the coming decade-and that is exactly why the current capital surge around it warrants skepticism. History is littered with transformative innovations that were nonetheless disastrously overbuilt and mispriced in their early phases. Austrian Business Cycle Theory was never a children’s story in which every boom ends with clowns, ashes, and worthless machinery; its real claim is subtler and nastier. When the price of time is falsified-when interest rates are pushed below their natural rate-often proxied, however imperfectly, by modern estimates of the neutral rate-entrepreneurs are encouraged to undertake projects that are more roundabout, more capital-intensive, and more time-sensitive than underlying saving and final demand can actually support. The neutral rate is a policy construct; the natural rate is an economic reality. Some of those projects may still embody genuine innovation.

The problem is not that AI must be fake; it is that a very real technological advance can be financed, priced, and physically built in ways that are wildly uneconomic.

That distinction matters because AI is about as roundabout as modern capitalism gets. This is not a boom in apps and slogans alone; it is a boom in data centers, power, cooling, transformers, specialized semiconductors, fiber, land, and the commodities and construction needed to house and feed all of it. Reuters reports that Alphabet, Amazon, Meta, and Microsoft are expected to spend more than $630 billion combined on AI-related infrastructure in 2026, up sharply from 2025, while separate Reuters reporting says Amazon alone projects roughly $200 billion of 2026 capex. Analysts also expect the hyperscalers’ debt issuance to keep climbing, with BofA lifting its 2026 forecast to $175 billion after Amazon’s jumbo deal and Reuters noting that these firms issued $121 billion in bonds in 2025 versus a 2020–2024 annual average of just $28 billion. In Austrian terms, this is not consumption drunkenness; it is higher-order production marching deep into the structure of capital with a flamethrower and an Excel model.

Now add the monetary backdrop. The Fed cut the federal funds target range to 0 to 0.25 percent in March 2020 and kept it there until liftoff began in March 2022. By contrast, the New York Fed’s r-star framework defines the natural rate as the real short-term rate consistent with full employment and stable inflation, and its recent research says global and U.S. r-star rose by about 1 percentage point after COVID; the New York Fed’s DSGE model in late 2025 put the short-run U.S. real natural rate around 2.0 percent for 2026. Today the policy rate sits at 3.5 to 3.75 percent, but that is after the incubation period. The relevant Austrian point is that the seedbed for this boom was years of money priced as if capital were infinite, patient, and nearly free: precisely the sort of signal that makes entrepreneurs think the economy has more real savings available for long-gestation projects than it actually does.

That does not prove AI is all, or even mostly, malinvestment. It does, however, establish favorable conditions for it. The most charitable case is that AI is a genuine general-purpose technology whose economics are merely messy in the early innings. OpenAI says ChatGPT had more than 900 million weekly users as of late February, and Bloomberg reports OpenAI’s annualized revenue topped $20 billion in 2025 while Anthropic is tracking near that level as well. There are also signs of real productivity gains in narrow use cases, especially coding and selected support tasks. But the bill is arriving much faster than the profits: Bain estimated the industry would need roughly $2 trillion in annual revenue by 2030 to support projected compute demand, yet expected a gap of about $800 billion. That is not a business model; that is a promissory note written in GPU ink.

The more worrying Austrian angle is not simply overvaluation in public equities, but miscoordination in the capital structure. If chips depreciate economically faster than accountants admit, if grid interconnections lag by years, if open models compress pricing power, and if customers love AI demos more than they love paying enterprise invoices, then the industry has a classic ABCT problem: complementary capital arrives in the wrong proportions and at the wrong times. And though not easily captured in formal models, technological history is clear: infrastructure-heavy systems rarely stay that way for long, and early capital often pays the price. The New York Fed warns that r-star is an estimate, not an oracle, but the larger point survives that caveat: if market rates were held too low relative to the economy’s true intertemporal balance, then the resulting investment pattern will look profitable only until bottlenecks, replacement cycles, and cost of capital reassert themselves. Bloomberg reports OpenAI has discussed infrastructure commitments above $1.4 trillion, while Anthropic has announced a $50 billion U.S. data-center push; meanwhile, the IEA has warned of grid-connection queues, transformer shortages, and permitting delays for the power build-out data centers require. A boom can survive many indignities, but not all of them at once.

So: does AI constitute malinvestment? The best answer is that AI almost certainly contains both real innovation and a large malinvestment component. The technology is plausibly important enough to reshape production (and possibly upend labor markets) but that does not mean that every dollar spent on it is wisely spent, that every hyperscaler moat is durable, or that every valuation can be rescued by the word “transformational.” Austrian theory would suggest that when cheap money meets prestige competition, fear of missing out, and the intoxicating moral cover of “the future,” capital does not merely flow-it stampedes. AI may yet justify a great deal of what is being built. But prices, debt, and capex have very likely run ahead of demonstrated end-user value, which means the eventual disappointment-if and when it comes-will not prove AI was imaginary. It will merely prove that even a brilliant technology can be overcapitalized, overpromised, and purchased at a monetary hallucination.

The two-year anniversary of the catastrophic collapse of the Francis Scott Key Bridge at the Port of Baltimore is on Thursday.

Gubernatorial candidate Ed Hale criticized Democrats in the one-party-ruled state for their inability to properly manage the reconstruction of the Key Bridge, which is critical to the port and local economy and regional supply chains across the Mid-Atlantic region. 

Hale described the Democrats as exhibiting a “failure of leadership” and cited “unacceptable delays” in rebuilding one of Maryland’s major freight networks, which links to broader regional supply chains.

“Two years. And what do the people of this community have to show for it?” Hale asked reporters earlier. 

He said, “As a Maryland developer, I know what it takes to move projects forward. These delays are unacceptable, and Maryland families and businesses are paying the price every single day.”

Two years later. Where is the bridge?

It’s now been 2 years since Key Bridge fell in Baltimore. This is how much is rebuilt: pic.twitter.com/Gnc7uslGjq

— End Wokeness (@EndWokeness) March 24, 2026

Meanwhile, Maryland Democrats in Annapolis have prioritized providing “appropriately sized tampons” for men’s bathrooms while advancing a failed left-wing agenda that has sparked a massive exodus of residents, as the state’s fiscal status deteriorates.

Maryland Delegate Kathy Szeliga (R) EMBARESSES Democrats who want to force “appropriately sized tampons” into men’s bathrooms.

Szeliga: “I’ve never heard of such a thing… what do you consider appropriate???”pic.twitter.com/jjasHIMtRE https://t.co/gsjXEzXVre

— Libs of TikTok (@libsoftiktok) March 24, 2026

Baltimore City is broken. Maryland is broken. This is the direct result of one-party-ruled, left-wing politicians who masquerade as competent managers but are, in fact, incompetent DEI activists.

*  *  *

Click pic, add to cart, sleep like the dead with no grogginess

The long-anticipated Trump-Xi meeting will take place in Beijing on May 14 and 15, the White House said Wednesday, after the bilateral summit was previously pushed back due to the Iran war.

This marks a roughly six week postponement compared to when it was earlier supposed to happen. President Trump indicated in a fresh social media post that US representatives are “finalizing preparations for these Historic Visits.” He added that “I look very much forward to spending time with President Xi in what will be, I am sure, a Monumental Event.”

Since the war kicked off on Feb.28, White House officials have offered an ever-evolving timeline for offramp and exit from the war, vowing the whole time that it’s not a “forever war” and “not like Iraq and Afghanistan” – to quote from Hegseth’s latest Pentagon briefings. 

The latest administration assessment is that it will last around five weeks, and prediction markets are adjusting for that… 

White House Press Secretary Karoline Leavitt was specifically asked Wednesday whether Trump’s China trip means Washington expects the war will be wound down by mid-May. She responded: 

“We’ve always estimated approximately four to six weeks, so you could do the math on that.”

Should the war not be over by then, Beijing is likely to see Trump as being in a weakened position for Washington-Beijing negotiations. By then the media might also start increasingly applying the word ‘quagmire’ to the whole ordeal – and Trump may start losing political support at home if there’s no wind down, even among Republicans.

At the moment things aren’t looking great, given on Wednesday Iran’s Foreign Ministry sought to make clear “there are no talks with the US.” It also declared that the US and Israel have “failed” in their “war goals including quick victory and change of regime.”

There also remains another lingering potential complication from China’s perspective:

Behind the scenes, however, there remains caution. The summit may still “not necessarily happen as planned,” with the possibility either China or the US decides to pull out of talks, according to two Chinese sources familiar with the matter, speaking under the condition of anonymity due to the sensitivities surrounding the meeting.

“If the war in Iran causes major casualties of Chinese citizens, or major damage of Chinese assets in the region, then Trump would not be able to come,” said a source, describing one of Beijing’s apparent red lines.

Beijing meanwhile earlier in the day Wednesday commented on the Pakistani offer to host US-Iran talks aimed at ending the war, with Chinese Foreign Ministry spokesman Lin Jian telling reporters in Beijing: “Ceasefire and peace talks are more important tasks at hand.” 

White House Press Secretary Karoline Leavitt:

Trump’s meeting with Xi in China will now take place in Beijing on May 14–15. pic.twitter.com/6kfu8xMCTp

— Open Source Intel (@Osint613) March 25, 2026

“China supports all efforts conducive to easing tensions, de-escalating the situation and restoring dialogue,” the statement added. On Iran’s continued control of the Strait of Hormuz, Lin said: “Maintaining peace and stability in the Middle East and keeping shipping routes safe serves the common interests of the international community.”

News that SpaceX may file an initial public offering prospectus with the Securities and Exchange Commission this week or next sparked a rally across SpaceX-linked names, satellite broadband providers, space transportation firms, and even publicly traded closed-end funds that hold private SpaceX shares.

The Information reports that SpaceX is set to file an IPO prospectus with the SEC this week or next, with plans for shares to begin trading on U.S. exchanges sometime in June.

Wall Street advisers expect the offering to be the largest ever in the U.S., generating $75 billion for the space company leading the world’s rocket race and propelling the U.S. to the number one spot. The company’s final valuation and deal size would be set closer to the listing, but as of right now, the total market capitalization is north of $1 trillion.

Bankers are expected to pitch the SpaceX IPO to clients around three themes: its rocket-launch business, which has become a revenue driver; its rapidly expanding Starlink satellite internet business; and its prospects as a provider of orbital data centers. Hype around the stock will build as future Moon and Mars missions unfold.

🚨BREAKING: Goldman Sachs projected to lead SpaceX IPO. pic.twitter.com/Hg0y6zRok6

— Polymarket Money (@PolymarketMoney) March 25, 2026

Latest reports: 

Data Centers In Space Are Coming: Here’s How To Profit

SpaceX IPO Hype Ignites Blast Off For This Korean Broker Stock

Goldman Turns Bullish On Starlink Satellite Parts Supplier As Space Race Accelerates

Morningstar released a note earlier this month forecasting that SpaceX will generate nearly $16 billion in revenue in 2025 and $7.5 billion in EBITDA, driven “almost entirely by explosive subscriber growth” from its Starlink satellite internet unit, which had 10 million active customers as of last month. The company forecasts revenue of $150 billion in 2040, with EBITDA of $95 billion.

In February, Elon Musk’s artificial intelligence firm, xAI, was acquired by SpaceX in an all-stock transaction, making the AI chatbot company a wholly owned subsidiary and pushing the rocket company’s valuation to $1.25 trillion.

In public markets on Wednesday, wireless spectrum firm EchoStar, which owns a 3% stake in SpaceX, jumped more than 10%. Space transportation company Rocket Lab and AST SpaceMobile both soared more than 11%. Other moves included Globalstar up 20% and Viasat up 4.5%.

Karman Holdings does not appear to have a clearly disclosed direct ownership stake in SpaceX, but shares are 4% higher in the session because it is a space-and-defense supplier.

A newly listed fund, Fundrise Innovation Fund (VCX), which holds private shares in SpaceX and Anthropic PBC, jumped 64% in the session. 

Tesla shares were up 2% on the session. 

Rocket garden at Starbase.

You can see this from the public highway. https://t.co/hvlSOHkLr0

— Elon Musk (@elonmusk) March 16, 2026

It seems that the meme stock trading crowd is finding out about the space theme.

Authored by Naveen Athrappully via The Epoch Times (emphasis ours),

The Trump administration’s housing department launched an investigation into the Washington State Housing Finance Commission for allegedly violating the Fair Housing Act via its race-based housing finance program, according to a March 24 press release.

President-elect Donald Trump’s nominee for Secretary of the U.S. Department of Housing and Urban Development, Eric Scott Turner, testifies before the Senate Committee on Banking, Housing, and Urban Affairs on Capitol Hill in Washington on Jan. 16, 2025. Madalina Vasiliu/The Epoch Times

The Department of Housing and Urban Development’s (HUD) Office for Fair Housing and Equal Opportunity (FHEO) notified the commission of the investigation into the state’s Covenant Homeownership Program.

Launched in 2024, the program offers down payment and closing cost assistance to homeowners, which, according to its website, seeks to rectify “state-sanctioned racial discrimination in housing.” Applicants for the program must have a household income at or below 120 percent of the area median income, and be a first-time homebuyer who had family living in the state before April 1968. Also, those relatives must have been black, Hispanic, Native American/Alaska Native, Native Hawaiian or other Pacific Islander, Korean, or Asian Indian.

Persons of European, Japanese, Arab, or Jewish ancestry do not appear to qualify, said the HUD statement.

“Fair housing is about equal rights, not extra rights. As HUD secretary, I will not stand for illegal racial and ethnic preferences that deny Americans their right to equal protection under the law,” HUD Secretary Scott Turner said in an X post.

According to the Fair Housing Act, direct providers of housing, including lending institutions, must not discriminate based on the applicant’s race or color, religion, sex, national origin, familial status, or disability.

“DEI is dead at HUD,” Turner said, referring to the so-called diversity, equity, and inclusion initiatives. “HUD will work to ensure Washington state follows the law and provides equal opportunity for all citizens seeking assistance under the commission’s programs. Under President [Donald] Trump’s leadership, HUD will vigorously enforce the Fair Housing Act and ensure all Americans have an equal shot at the American Dream.”

Regarding the eligibility of certain racial groups compared to others, the FAQ section on the Covenant program’s website said that the “initial eligibility criteria are intentionally narrowly tailored. While many racial, ethnic and religious groups in Washington were subject to unjust and egregious housing discrimination, the Covenant program considers not only this history but also its current impacts.”

“Some of the groups discriminated against continue to show much lower homeownership rates compared with the general white population. These are named in the initial eligibility criteria. However, for other groups (such as Jewish residents), the data is limited when it comes to documenting the lasting impacts of historical discrimination.”

The Epoch Times reached out to the Washington State Housing Finance Commission for comment but did not receive a response by publication time.

On March 16, a coalition of 16 attorneys general filed a lawsuit against HUD for withholding funding from state and local fair housing enforcement agencies, and imposing what they alleged were illegal conditions on HUD funding.

According to Illinois Attorney General Kwame Raoul, who co-led the coalition lawsuit, the Trump administration is seeking to undermine the existing partnership, based on the Fair Housing Act, between HUD and state agencies, by attacking the states’ ability to combat housing discrimination under their own democratically enacted state laws.

“These actions are part of a broader, ongoing effort by the Trump administration to subvert the legal protections our country has put in place to combat discrimination and to tear down the hard-fought progress we have made for civil rights,” Raoul said.

In a letter sent to the Commission notifying it about the investigation, Craig W. Trainor, HUD’s assistant secretary for Fair Housing and Equal Opportunity, said that the Covenant program was “groundbreaking” and “remarkably generous” but was discriminatory.

“This government-sponsored housing experiment appears to dole out spoils based on race and ancestry,” Trainor said. “[This discrimination] is morally reprehensible, socially perverse, and destructive of America’s pluralistic polity. The Trump Administration will not tolerate it. Not now. Not ever.”

Authored by Nick Giambruno via InternationalMan.com,

When Zimbabwe makes the news, it’s rarely for good reasons.

There’s a good reason for that.

The country has spent years in a state of perpetual crisis.

Hyperinflation obliterated its currency and decimated the economy.

Yet beneath the surface lies extraordinary wealth.

Zimbabwe is rich in natural resources: gold, platinum, diamonds, and some of the most fertile farmland on Earth.

That’s what led me to organize a research trip there about 10 years ago alongside legendary investor Doug Casey.

We also sat down with Gideon Gono, the former head of the central bank, who made everyone “trillionaires.”

From left to right: Nick Giambruno, Doug Casey, Gideon Gono

Gideon Gono was Zimbabwe’s central bank chief during the infamous hyperinflation of 2008–2009.

His signature appears on the now-iconic 100-trillion-dollar Zimbabwe note—the highest denomination of any currency ever printed.

Today, that bill is completely worthless… except as a novelty or collector’s item.

During our meeting, Gono recounted his impossible position as Zimbabwe’s central banker in the 2000s.

The country was flat broke—and it needed to pay the army.

In any country, failing to pay the military spells trouble. But in Africa, it almost guarantees a coup.

So when the Zimbabwean government ordered Gono to print money to pay the army and its other bills, he obeyed. There was no alternative.

He described it as “being in a car without gas,” yet being ordered to drive from point A to point B.

Everyone—Gono included—knew exactly where this was headed.

You didn’t need to be a financial genius to understand that printing currency to fund soaring deficits would end in hyperinflation.

And that’s exactly what happened.

The Gono episode lays bare the uncomfortable truth about central banks.

Central banks were never truly “independent.” It was always an illusion—a societal myth. They exist to siphon wealth from the public through inflation and funnel it to the politically connected.

What Gono did is no different from what the Federal Reserve is doing right now.

Just as the Zimbabwean central bank’s independence was always a sham, so too is the Federal Reserve’s. It’s a mirage—and it’s now fast disappearing.

Even establishment stalwarts like the Bank of England have explicitly recognized this. Here’s what they recently wrote:

“Central bank operational independence underpins monetary and financial stability. A sudden or significant change in perceptions of Federal Reserve credibility could result in a sharp repricing of dollar assets, including US sovereign debt markets, with the potential for increased volatility, risk premia and global spillovers.”

The Federal Reserve maintained its mirage of independence for over 110 years. But that’s changing as an increasingly imminent debt crisis forces the US government to fund itself more explicitly through the Fed’s printing presses.

Trump is simply doing what any leader in his position would do. No one believes China’s central bank is independent of Xi. If any nation faced a similar situation, its central bank would fall in line with government demands for easy money.

What is happening in the US is not that different from what happened in Zimbabwe—or in any other country where government finances became desperate. They always turn to the central bank to print currency to help finance their spending.

As the issuer of the world’s reserve currency and the most powerful government in the world, the US can extend the charade of solvency longer than any other entity on the planet. However, even the mightiest empires in human history couldn’t do so indefinitely—especially once they begin to struggle to service their debt.

One of the most potent and underappreciated forces responsible for the downfall of the most powerful empires throughout history has been debt.

While military defeats, political upheavals, and external invasions often dominate historical accounts of the fall of great powers, excessive debt—the “Empire Killer”—has quietly but relentlessly eroded the foundations of empires across the centuries.

From Rome to the Soviet Union, the over-extension of resources, poor financial management, and the inability to service massive debts have led to economic collapse, social unrest, and, ultimately, the demise of these once-mighty empires. The same pattern is playing out in the US right now.

In short, the US government cannot stop spending, which means deficits cannot stop growing, which means more debt must be issued, which means the government leans on the central bank to help ease the debt burden, which means the illusion of central bank independence evaporates.

And once that happens, ever-increasing currency debasement becomes unstoppable. That’s where we are today. But it won’t end with just higher prices. Capital controls, people controls, price controls, tax hikes, wealth confiscations, and countless other destructive government interventions are all on the menu.

The Gideon Gono story isn’t just a Zimbabwean cautionary tale—it’s a clean, unvarnished look at what happens when a government hits the point of no return and the central bank’s “independence” gives way to political necessity.

That same endgame is now advancing in the US, and when the “reset” phase arrives, the biggest losses will hit those who wait for official confirmation.

To help you prepare, I’ve put together a free special report, The Most Dangerous Economic Crisis in 100 Years… the Top 3 Strategies You Need Right Now, outlining the key trends unfolding now, what they could mean for your money and personal freedom, and the three strategies to consider immediately. Click here to download the free PDF.

Fox News found who might be the dumbest spring breakers in all of the United States – and you will feel dumber listening to what they have to say.

Fox producer Johnny Belisario hit the beaches in Florida and fired off multiple questions at partiers on current events, ranging from the U.S. and Israel’s war against Iran to President Donald Trump’s performance.

When asked what he thinks Trump “has been doing recently,” one woman with no shame replied, “The Gulf of America. That’s the last thing I kept up with.”

Spring Break goes WILD☀️ 🍺🤪

and the students have NO IDEA what’s going on🤣

“The BIGGEST issue in America is what BIKINI I’m wearing tomorrow”👙

“We’re going to war with IRAQ that’s been crazy”🤔

“I’ve NEVER heard the word Ayatollah in my life”🫢

“Is Venezuela in… pic.twitter.com/HD8kgli0Ok

— Jesse Watters (@JesseBWatters) March 24, 2026

When Belisario brought up slain Iranian Supreme Leader Ayatollah Ali Khamenei, the clueless respondents came up hilariously short in the bewildering clip.

“We’re going to war with Iraq – that’s been crazy,” another young woman said, botching the country of Iran.

“Who the fuck is ayatollah?” was another response.

When asked how they would “take on Iran” if they were president, one genius explained that he would “get a bunch of girls in bikinis and … make them run across the battlefield.”

Florida’s beach towns are getting stuck playing spring break whack-a-mole as rowdy crowds organize chaotic “takeovers” on social media, unleashing booze-fueled flash mobs that turn sunny shores into scenes of violence and mass arrests, according to the New York Post.

Cops were forced to lock down Daytona Beach this week after a rash of shootings and a wild beach “takeover” sparked a full-blown stampede, with panicked high school and college kids running for their lives.

That single blowout led to 133 arrests and pushed authorities to clamp down, turning the beach into a party lockdown zone, with steep fines and tight limits on crowd sizes, the Post said.

“It’s really these communities that start welcoming spring breakers that have things get out of control,” said Bay County Sheriff Tommy Ford.

* * * Make sure SPRING HAS SPRUNG

A jury in Los Angeles Superior Court reached a verdict Wednesday in a major “social media addiction” personal-injury trial  –  finding both Meta Platforms Inc. (Instagram) and Google (YouTube) liable for harms suffered by the plaintiff.

Lawyer Mark Lanier, of the plaintiff Kaley G.M., arrives at court in a key test case accusing Meta and Google’s YouTube of harming children’s mental health through addictive social media platforms, in Los Angeles, California, U.S., March 25, 2026. REUTERS/Mike Blake

The jury awarded the plaintiff – a now-20-year-old woman identified in court filings as K.G.M. (publicly referred to as “Kaley”) – $3 million in compensatory damages, assigning 70 percent of the award to Meta and 30 percent to Google, according to Courthouse News‘ Hillel Aron. The verdict came after more than eight days of deliberations. 

Case Details

KGM alleged that she became addicted to YouTube beginning around age 6 and to Instagram beginning around age 9. Her lawsuit claimed the companies’ platforms were defectively designed with features such as infinite scroll, algorithmic content recommendations, notifications, autoplay, and engagement-reward systems that foreseeably caused or worsened her depression, anxiety, body dysmorphia, and suicidal thoughts.

“This case is about two of the richest corporations in history, who have engineered addiction in children’s brains,” Lanier said in February.

TikTok and Snap Inc. settled with the plaintiff before trial for undisclosed amounts. The case against Meta and Google proceeded as the first “bellwether” trial in a massive coordinated proceeding involving approximately 1,600 similar lawsuits filed by individuals, families, and school districts.

Meta CEO Mark Zuckerberg, center, leaves the Los Angeles Superior Court after testifying in the social media trial tasked to determine whether social media giants deliberately designed their platforms to be addictive to children, in Los Angeles, on Feb. 18, 2026. Apu Gomes / AFP via Getty Images

Plaintiff attorneys argued that internal company documents showed Meta and Google were aware of the risks to minors but prioritized user engagement and revenue. Defense attorneys, meanwhile, maintained that the plaintiff’s mental-health struggles had other causes predating her social-media use and that the companies provide parental controls and safety tools. At the beginning of the trial, the jury was instructed that the companies could not be held liable merely for hosting user-generated content under Section 230 of the Communications Decency Act.

The trial, presided over by Los Angeles Superior Court Judge Carolyn B. Kuhl, featured roughly one month of testimony, including from the plaintiff, mental-health experts, former platform employees, and Meta CEO Mark Zuckerberg.

This Los Angeles verdict follows by one day a separate March 24, 2026, decision in New Mexico in which a jury found Meta liable under the state’s Unfair Practices Act and ordered the company to pay $375 million in a consumer-protection lawsuit focused on child safety and misleading marketing. Google was not a defendant in the New Mexico case.

The K.G.M. case is one of nine selected bellwether trials expected to guide resolution of the larger litigation wave. While the verdict is not binding on other plaintiffs, it is widely expected to influence settlement discussions across the consolidated cases.

* * * Get addicted to some nice Mangoes

Another day, another very ugly auction.

After yesterday’s appallingly bad 2Y auction, moments ago the Treasury sold $70BN in 5Y paper in what was another terrible auction.

Just after 1pm, the auction stopped at a high yield of 3.966%, up from 3.608% in February and the highest since May 2025. It also tailed the When Issued 3.966% by 1.4bps, the biggest tail since Oct 2024.

The bid to cover was 2.29, down from 2.32 last month and the lowest since Sept 2022. 

The weak demand picture was also seen in the internals, where Indirects dropped to 61.9% from 62.5%, but was above the recent average of 61.7%. Like yesterday, Directs dropped – if to a lesser extent – taking down 22.48% of the auction, down from 24.70% and the lowest since May 2025. Dealers were left to cover the balance, taking 15.6%, the most since May 2024. 

Overall, this was another very ugly auction, if slightly better than yesterday’s dismal sale of 2Y paper. Still, that is hardly a endorsement at a time when the US is about to see a surge in war-related deficit funding demands. 

China has made clear that it condemns the US-Israeli attack on Iran, saying the war should have never started, but is now signaling strong support to Pakistani-mediated efforts at finding peace.

Beijing has commented on the Pakistani offer to host US-Iran talks aimed at ending the war, with Chinese Foreign Ministry spokesman Lin Jian telling reporters in Beijing: “Ceasefire and peace talks are more important tasks at hand.” The statement comes amid fresh reports that Tehran has rejected an initial 15-point draft plan delivered by Islamabad. 

US Navy/Handout via Reuters

“China supports all efforts conducive to easing tensions, de-escalating the situation and restoring dialogue,” the statement added.

On Iran’s continued control of the Strait of Hormuz, Lin said: “Maintaining peace and stability in the Middle East and keeping shipping routes safe serves the common interests of the international community.”

Iran has said “non-hostile” vessels can still pass through the Strait of Hormuz – of course largely with its main crude buyer China in mind – even as traffic through the chokepoint collapses and fuels what’s shaping up to be the worst global energy shock in decades.

In a statement Tuesday delivered to the United Nations, Tehran said ships may use “safe passage” – but only if they “neither participate in nor support acts of aggression against Iran” and strictly adhere to its security rules, which has included reports of paying a $2 million passage fee.

Also on Tuesday, Chinese Special Envoy to the Middle East Zhai Jun said at a briefing after his ​shuttle-diplomacy trip that included recent stops in Saudi Arabia, the United Arab Emirates and Kuwait that the US-Israeli operation against Iran must immediately cease or else a “vicious cycle” toward destabilizing the region and disrupt global trade would persist.

“Should hostilities continue to escalate and the situation deteriorate further, the entire region will be plunged into chaos. The use of force will only lead to a vicious cycle… the war should not have begun in the first place,” Zhai declared.

It was only days ago that President Trump called on China and Japan to assist in getting the Hormuz Strait back open, but something which especially China has little incentive to do on a military front, as its instead content to watch the US get bogged down in a quagmire amid Tehran’s unexpected resilience under the bombs. China itself presumably also already had guarantees of safe passage directly from Tehran.

Iran’s foreign minister meanwhile held a phone call with China’s foreign minister on Tuesday, per Bloomberg: “Chinese Foreign Minister Wang Yi on Tuesday called on all parties in the Iran war to seize every opportunity and window for peace and start peace talks as soon as possible, Xinhua reports. Wang made the appeal in a phone conversation with Iranian Foreign Minister Seyed Abbas Araghchi.”

China Warns Escalation in Iran Conflict Could Spiral Into Chaos, Urges Ceasefire and Talks

Beijing’s Foreign Ministry cautions against further military escalation in the Middle East, calling for an end to hostilities and a return to diplomatic negotiations to prevent regional… pic.twitter.com/gMXwcaNjUj

— Washington Eye (@washington_EY) March 23, 2026

China has long been a powerful ally of Tehran providing with diplomatic cover, institutional support, military cooperation and an economic lifeline – especially as its major oil buyer; however, China is not expected to go further with any kind of direct military support.

There are claims that it could be, alongside Russia, providing some intelligence support though. If this is the case, there is not much Washington can do about it – also as the White House response to widespread reports of Russian intelligence-sharing has been met with some pretty mild and meager statements out of the White House.