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How ‘Expert’ Worship Is Ruining Science

How ‘Expert’ Worship Is Ruining Science

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How 'Expert' Worship Is Ruining Science Tyler Durden Fri, 10/23/2020 - 21:40

Authored by Pasha Kamyshev via The American Mind,

What is science? Has it changed from past to present? Is it still working? The coronavirus pandemic has put a spotlight on the question of science as a whole and biology and drug research in particular.

Now, the popular narrative is that if only we listened to the scientists, we would have prevented this, presumably contrasting scientists against “politicians” and perhaps some un-specified “non-expert” others. The pandemic is happening against a completely unprecedented backdrop of censorship of what seems to me like normal-people discussion about the effects of different drugs and therapies.

The CEO of YouTube has specifically said that the platform would block people suggesting vitamin C has beneficial effects on helping one recover from coronavirus. This is, of course, done “in the name of” science, because everything ought to be done in the name of science in the West.

My current view is that large numbers of fields which are considered “scientific” in the West are a complete mess and lack the essential feature of what it means to be a science in the first place.

So, let’s go back to first principles here. What is a science? If we look at the field of science as a mechanistic process that takes some inputs and produces outputs, what are those inputs and outputs? Let’s take one the of the most classic examples of this: Newton’s theory of gravity.

The theory of gravity, as we learn in middle school, is on its surface a simple formula:

Where the force of gravity is Fm1 and m2 are masses of two objects, r is the distance between them (more specifically their centers of gravity), and G is a gravitational constant. Now this formula needs a few key variables to be known: you need to know the mass of the objects, the center of mass, and the distance between them. Underlying these measurements you may want to know many more things, such as what mass is exactly, what is distance, can gravity be blocked, etc.

Some interesting questions arise: why is the gravitational constant that particular number? Could it be smaller or higher in, say, another universe? But even if all those things are somewhat undetermined, you still have a functional mathematical instrument. Taken together, the notions of mass, distance and a formula, even if somewhat imprecise, comprise a model of reality. This model may not be perfectly accurate, but it does well enough for middle school physics problems.

Why do we care, or why do we need models of reality at all? There is a stock answer that “science helps engineering” and that improves our standard of living. This is true—but how, specifically, does science help engineering? By allowing us to compress parts of the world into a model, it allows reasoning over a model that hopefully translates into reasoning over the world.

Notably, this process is not automatic. It relies on certain assumptions, such as:

  1. There is, in fact, a model being produced, which is able to create falsifiable predictions about the future.

  2. The model doesn’t wildly vary over time (it embodies actual compression of universal laws).

  3. Reasoning over a model is simpler than reasoning over the real world and accessible to many people or algorithms.

  4. There are clear agreements about what the inputs to the model are and how to measure them.

  5. The model is over something that we are deliberately engineering, whether social or biological.

  6. Though some inaccuracies in models are somewhat inevitable and form the basis for new models, wildly contradictory data indicates a problem in either the model or the data.

Clearly the theory of gravity, whether that of Newton or of Einstein, passes the test. Indeed, many things we learn pass the test: most physics, chemical equations, models of the cell, some economic theories. Not every model is strictly mathematical, although the boundary between chemical equations and math may be somewhat artificial. Regardless of that particular distinction, the models are there to help make reasoning easier for people.

It’s worth emphasizing these basic requirements for scientific advancement to be useful in order to highlight a stark contrast between the ideal notion of science and what we have today. The models that scientists produce are meant to simplify and de-mystify reality for other people, including and especially non-scientists. “De-mystify” here does not mean “remove the sense of awe,” as is often the case, but rather remove the mystery of how things work. A good model is one that is both accurate and simple enough that it can be applied by nearly anyone.

Now, given how specialized all the disciplines are, not every person employed in science is able to produce models. There is a lot of work gathering raw data, coming up with theories, writing up grants, teaching existing material, etc., etc. The specialization means a lot of people work in science, but not that many look at the big picture: what is the output we are producing, especially in the realm of health and human sciences?

Stating the Obvious

What we are producing instead of models are statements. Statements such as: a particular drug (e.g., Vitamin C/Vitamin D/HCQ) helps or does not help against the flu/coronavirus/scurvy. Now these statements are not useless, despite not being full models of reality. If they are true and we have good consensus on them, even without necessarily understanding the mechanism or models of actions behind them, they can still form useful guidelines for action on a deadly disease.

However, the question is: do they? What exactly does the science say and, just as importantly, when does it say it? This is a tricky question, often replaced in popular media by “what do the journalists say the science says?”—which is yet another link further removed from the truth.

Let me give a hypothetical example. Let’s say that I create an experiment with a control group and treatment group, each containing one person. I give the treatment group (one person) a drug and watch how both groups develop. Let’s say they both get better around the same time. What can we conclude?

If you are a follower of the scientific method, you might say that the sample size is too small to conclude anything. If you know statistical terminology, you might say that the experiment lacks “statistical power” for a negative proof of drug efficacy, which is a more precise way of saying the sample size is too small. Regardless, you might say that more data is needed.

However, according to modern journalistic “standards” in America, this study is definitive proof that the drug does not work, especially if to say so accomplishes some political goal. Of course, nobody does experiments of 2 people, but sometimes journalists do report on experiments of 30 people, which still lack power.

Even in the space of COVID and HCQ, there are plenty of other issues. One famous study of veterans features a whole gamut of issues, such as strange subgroup selection, observational studies passed off as control-based ones in media, bizarre hazard ratios that supposedly indicate that AZ + HCQ is much better than HCQ, but without further discussion of conclusions. Another Lancet study features a lot of those same problems, along with potentially being completely made up.

Our media and state epistemics—drug either=good (perfect cure) or bad (extremely harmful)—are completely incapable of handling issues as complex as “dosage” or “network effects” or person-dependent treatment.

This brings us to a philosophical question of what “evidence” is, what “evidence” should be, and how the term is used in practice. If you are a detective in a case, literally everything is likely evidence: how the person died, what the weapon was, where the people who knew him were on the night of the murder, what drugs they were normally taking. Now some of this, though it can be construed as evidence during the investigation, ends up not mattering at the end. However, until the judgement is done, it’s best not to dismiss particular things as not “evidence.”

In the view of a real scientist, everything is evidence—it is just very unclear how to interpret it. Science is about trying to explain reality. So, if we have two conflicting studies on a drug efficacy, there are many possible explanations here.

One we implicitly adopt, as a polarized society, is that one of the studies was done badly. While the general quality of studies done under the pressure of a pandemic can be assumed to be low, we also need to consider obvious other hypotheses, such as the drug working better for different people. For example, it’s a very plausible situation that the drug works better if we give it to people earlier in the disease. However, combining our desire to “help the worst off” with studies that follow the worst-infected people due to an easier time getting the drugs for them, makes us study efficacy on the people who are already really sick and might not be helped.

Now sometimes, these might be less strong “evidence” than a well-done RCT (even that is not guaranteed due to plausible network effects). But the issue here is that instead of considering “stronger” and “weaker” evidence, we consider one to be absolute truth and the other heresy. Instead of calling these things “evidence,” we have laid a claim on the term “evidence” as what journalists say are “studies,” which may or may not be RCTs, which may or may not be done or interpreted correctly.

“Evidence,” however important it is, is not the full story of science, which once again needs to produce models. How does the drug operate? Where does it operate? If one is doing an observational study, it’s worth asking what exact factors influence doctors to prescribe one vs. not, instead of simply throwing controls at the data until the desired outcome occurs.

Statements such as “the drug has a 20% chance of helping the disease” are seen as an “endpoint,” rather than a description of something we don’t know: what distinguishes those 20% from the 80%. The probability is not an “inherent” thing, but rather a pointer to missing puzzles in the causal graph. What we actually need is to work toward these causal graphs.

“Silence, Layman!”

Tech censorship of large amounts of info relating to the virus, including early videos from Wuhan, has been downright criminal. Big Tech has fully bought into the frame of “experts” vs “laypeople” as if experts are always “correct” and laypeople are “wrong,” (unless they are repeating a statement by the experts).

If the laypeople are “wrong,” then there has been a massive failure of education to produce correct models for people to use for home reasoning. Obviously, the default answer for many people is to simply pour more money into education. But we lack understanding of what science and science education even are. Science is meant to produce world models, and education is supposed to impart them to everyone else. Neither is doing this, really, and what we have in place of those instructions is one large uncanny valley of ever-changing statement production (how dangerous are public gatherings, really?).

Now, more abstract statements such as “Vitamin D/C helps with respiratory diseases” are what we would ideally have produced before the pandemic. Those can be operated on by laypeople and form a reasonable set of priors to be further refined when something new shows up. The original purpose of science is to produce functional information that can be operated on by both policy makers and laypeople. Said information can be shared by people who are themselves not scientists.

However, in our backwards society the idea of people coming to conclusions using previously available evidence is becoming taboo. This makes just about as much sense as tech companies censoring the correct calculation of gravity between two planets because the calculation wasn’t done by a scientist.

That’s not to say that all science needs to be public. There are good reasons for secrecy, such as scientific research into advanced weapons. However, all science that is public is there to empower people, not put them down. Not all science models need to be understandable by every person—sometimes models are too hard to understand and are thus more suited for use in a public open-source algorithm.

Again, that’s not to say that all censorship is unjustified. There can be harmful misinformation, but one key role of any future academy must be to define a formal Overton Window for the set of hypotheses that are “within” the realm of scientific discourse. If it’s a plausible hypothesis for an experiment, it’s likely plausible to be discussed in public.

What we have instead is a “debate” over HCQ, where academics are publishing papers conflicting with each other and doctors are giving people the drugs and reporting the results, before promptly being blocked by Big Tech on the grounds of being “unscientific.”

The debate over HCQ has both sides thinking the other is killing people. One side happens to be right. History will not judge those who were wrong on this very kindly. The American ideal of a citizen informed enough to make decisions in the voting booth is in direct contrast with a citizen who needs to be disciplined for making obvious logical conclusions about vitamins and virus relationships.

There is even an ironic, 1984-esque doublethink in the usage of statistics. You see, when society needs to make intelligent mathematical analysis happen, it will happen. Some teams at Microsoft, my previous employer, are masters of statistical analysis of both the Bayesian and the frequentist variety. If our society needs the truth about important things, such as how to make people click on ads, good honest statistics will be allowed to happen sometimes. But if we want to figure out whether a drug has a positive cost benefit for one’s health—forget about it.

Other sciences suffer from major problems as well. You can tell a particular field has issues by asking, “has society gotten better or worse on the factors studied by the science? And have we done so by looking at official advice or ignoring it?” The obvious example is nutrition. Obesity, as well as a host of other nutrition-related problems, has increased in America. If the entire nation is failing, then how good can the scientific establishment of nutrition be?

Of course, one could go paper by paper and see where individual publications make errors of judgment, but they are likely to fall into predictable categories: absence of actual models, lack of causal graphs, inappropriate controlling for variables. The problem here is that the science is failing as a whole, or we would not be having the health problems we are having. Understanding nutrition as a flawed science is perhaps one of the hallmarks of someone who is an intellectual versus someone who’s just pretending.

None of this is truly groundbreaking or new. I have heard stories of professors at Yale in one department being mad about professors in another department teaching p-hacking to students. Inter- and intra-discipline fights are common, which isn’t necessarily a bad thing as long as the overall combined output of the field is correlated with reality. However, the journalistic tendency to signal boost any paper that can have political impact amplifies some fights over others, further screwing up an already shaky system.

A New Birth of Reason

So right now science is losing its status among the general population. It is also losing status among those who can actually read statistics. This is both horrifying and encouraging. Without a structured way to sift actual reality into social reality, the social reality will diverge from reality, with further and further breakdown of health and sanity for society.

This is true both for academics and non-academics. The anti-science polarization does not necessarily arrive at the truth, as it is subject to its own signaling spirals. But it at least provides some counterpoint to the bizarre hegemony of ideas such as “if the disease doesn’t have a cure, then all attempts to establish helpful drugs must be banned”—the implicit philosophy of the tech sensors.

There are deeper problems than just the type signature of what is being produced or false assumptions about what is “evidence,” “information,” or “misinformation.” Each discipline of science generally has an incentive to ensure that their discipline grows and doesn’t get incorporated into other disciplines. If, for example, it is found that large aspects of mental illness are based on particular known social or nutritional problems, then the mental illness industry could become dissolved into a social science or some biological science. This is disadvantageous to the industry, and thus the industry is disincentivized to uncover causality of the concepts underlying itself.

True foundational research in a scientific discipline does not look to expand said discipline, but rather collapse it, just like a good engineer automates himself out of a particular task. However, our general epistemic foundation keeps coming up with a large number of conceptual ideas as “things-in-and-of-themselves” with independent identity disconnected from causality.

These “things-in-and-of-themselves” then find their way into identity, Twitter bios, and politics, closing the feedback loop of establishing social reality, complete with the social prohibition: “do not ask what causes this, that’s unscientific!” This is a key problem of social order that eventually leads to the destruction of social order and civilization as a whole, all under the name of “science.” It has been noted by many philosophers, yet no society has ever come up with a lasting solution.

For example, even something like “climate” is now a “thing-in-and-of-itself”, which means it can only be either “good” or “bad” along with an established set of possible actions that are allowed to affect it. Of course, one could ask a more precise question, such as “if we cut down more trees on the west coast, would we have less intense forest fires there?” without trying to invoke the “climate” as a whole. However, this is taboo, since “climate” is sacred and asking questions about parts of the sacred is taboo.

Is there still hope that we can convince the current “scientific establishment” to get back to the roots? I don’t have much. Reform will more likely be driven by a cadre of people who don’t think of themselves as “scientists,” unless in jest, but who have rapid enough feedback cycles from reality to begin to notice previously hidden patterns in it.

The future of science, as the Russian proverb goes, is its well-forgotten past: something that is produced by experts, but either understood by the common man or precise enough to be understood by a computer, as long as all the steps are verified. The future of science is models, not statements, and causal diagrams rather than frequentist nonsense of chasing p-values and correlations. Whether or not this will come under the banner of “science” remains to be seen.

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Analyst reviews Apple stock price target amid challenges

Here’s what could happen to Apple shares next.

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They said it was bound to happen.

It was Jan. 11, 2024 when software giant Microsoft  (MSFT)  briefly passed Apple  (AAPL)  as the most valuable company in the world.

Microsoft's stock closed 0.5% higher, giving it a market valuation of $2.859 trillion. 

It rose as much as 2% during the session and the company was briefly worth $2.903 trillion. Apple closed 0.3% lower, giving the company a market capitalization of $2.886 trillion. 

"It was inevitable that Microsoft would overtake Apple since Microsoft is growing faster and has more to benefit from the generative AI revolution," D.A. Davidson analyst Gil Luria said at the time, according to Reuters.

The two tech titans have jostled for top spot over the years and Microsoft was ahead at last check, with a market cap of $3.085 trillion, compared with Apple's value of $2.684 trillion.

Analysts noted that Apple had been dealing with weakening demand, including for the iPhone, the company’s main source of revenue. 

Demand in China, a major market, has slumped as the country's economy makes a slow recovery from the pandemic and competition from Huawei.

Sales in China of Apple's iPhone fell by 24% in the first six weeks of 2024 compared with a year earlier, according to research firm Counterpoint, as the company contended with stiff competition from a resurgent Huawei "while getting squeezed in the middle on aggressive pricing from the likes of OPPO, vivo and Xiaomi," said senior Analyst Mengmeng Zhang.

“Although the iPhone 15 is a great device, it has no significant upgrades from the previous version, so consumers feel fine holding on to the older-generation iPhones for now," he said.

A man scrolling through Netflix on an Apple iPad Pro. Photo by Phil Barker/Future Publishing via Getty Images.

Future Publishing/Getty Images

Big plans for China

Counterpoint said that the first six weeks of 2023 saw abnormally high numbers with significant unit sales being deferred from December 2022 due to production issues.

Apple is planning to open its eighth store in Shanghai – and its 47th across China – on March 21.

Related: Tech News Now: OpenAI says Musk contract 'never existed', Xiaomi's EV, and more

The company also plans to expand its research centre in Shanghai to support all of its product lines and open a new lab in southern tech hub Shenzhen later this year, according to the South China Morning Post.

Meanwhile, over in Europe, Apple announced changes to comply with the European Union's Digital Markets Act (DMA), which went into effect last week, Reuters reported on March 12.

Beginning this spring, software developers operating in Europe will be able to distribute apps to EU customers directly from their own websites instead of through the App Store.

"To reflect the DMA’s changes, users in the EU can install apps from alternative app marketplaces in iOS 17.4 and later," Apple said on its website, referring to the software platform that runs iPhones and iPads. 

"Users will be able to download an alternative marketplace app from the marketplace developer’s website," the company said.

Apple has also said it will appeal a $2 billion EU antitrust fine for thwarting competition from Spotify  (SPOT)  and other music streaming rivals via restrictions on the App Store.

The company's shares have suffered amid all this upheaval, but some analysts still see good things in Apple's future.

Bank of America Securities confirmed its positive stance on Apple, maintaining a buy rating with a steady price target of $225, according to Investing.com

The firm's analysis highlighted Apple's pricing strategy evolution since the introduction of the first iPhone in 2007, with initial prices set at $499 for the 4GB model and $599 for the 8GB model.

BofA said that Apple has consistently launched new iPhone models, including the Pro/Pro Max versions, to target the premium market. 

Analyst says Apple selloff 'overdone'

Concurrently, prices for previous models are typically reduced by about $100 with each new release. 

This strategy, coupled with installment plans from Apple and carriers, has contributed to the iPhone's installed base reaching a record 1.2 billion in 2023, the firm said.

More Tech Stocks:

Apple has effectively shifted its sales mix toward higher-value units despite experiencing slower unit sales, BofA said.

This trend is expected to persist and could help mitigate potential unit sales weaknesses, particularly in China. 

BofA also noted Apple's dominance in the high-end market, maintaining a market share of over 90% in the $1,000 and above price band for the past three years.

The firm also cited the anticipation of a multi-year iPhone cycle propelled by next-generation AI technology, robust services growth, and the potential for margin expansion.

On Monday, Evercore ISI analysts said they believed that the sell-off in the iPhone maker’s shares may be “overdone.”

The firm said that investors' growing preference for AI-focused stocks like Nvidia  (NVDA)  has led to a reallocation of funds away from Apple. 

In addition, Evercore said concerns over weakening demand in China, where Apple may be losing market share in the smartphone segment, have affected investor sentiment.

And then ongoing regulatory issues continue to have an impact on investor confidence in the world's second-biggest company.

“We think the sell-off is rather overdone, while we suspect there is strong valuation support at current levels to down 10%, there are three distinct drivers that could unlock upside on the stock from here – a) Cap allocation, b) AI inferencing, and c) Risk-off/defensive shift," the firm said in a research note.

Related: Veteran fund manager picks favorite stocks for 2024

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Major typhoid fever surveillance study in sub-Saharan Africa indicates need for the introduction of typhoid conjugate vaccines in endemic countries

There is a high burden of typhoid fever in sub-Saharan African countries, according to a new study published today in The Lancet Global Health. This high…

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There is a high burden of typhoid fever in sub-Saharan African countries, according to a new study published today in The Lancet Global Health. This high burden combined with the threat of typhoid strains resistant to antibiotic treatment calls for stronger prevention strategies, including the use and implementation of typhoid conjugate vaccines (TCVs) in endemic settings along with improvements in access to safe water, sanitation, and hygiene.

Typhoid Conjugate Vaccine Introduction in Madagascar vaccination

Credit: IVI

There is a high burden of typhoid fever in sub-Saharan African countries, according to a new study published today in The Lancet Global Health. This high burden combined with the threat of typhoid strains resistant to antibiotic treatment calls for stronger prevention strategies, including the use and implementation of typhoid conjugate vaccines (TCVs) in endemic settings along with improvements in access to safe water, sanitation, and hygiene.

 

The findings from this 4-year study, the Severe Typhoid in Africa (SETA) program, offers new typhoid fever burden estimates from six countries: Burkina Faso, Democratic Republic of the Congo (DRC), Ethiopia, Ghana, Madagascar, and Nigeria, with four countries recording more than 100 cases for every 100,000 person-years of observation, which is considered a high burden. The highest incidence of typhoid was found in DRC with 315 cases per 100,000 people while children between 2-14 years of age were shown to be at highest risk across all 25 study sites.

 

There are an estimated 12.5 to 16.3 million cases of typhoid every year with 140,000 deaths. However, with generic symptoms such as fever, fatigue, and abdominal pain, and the need for blood culture sampling to make a definitive diagnosis, it is difficult for governments to capture the true burden of typhoid in their countries.

 

“Our goal through SETA was to address these gaps in typhoid disease burden data,” said lead author Dr. Florian Marks, Deputy Director General of the International Vaccine Institute (IVI). “Our estimates indicate that introduction of TCV in endemic settings would go to lengths in protecting communities, especially school-aged children, against this potentially deadly—but preventable—disease.”

 

In addition to disease incidence, this study also showed that the emergence of antimicrobial resistance (AMR) in Salmonella Typhi, the bacteria that causes typhoid fever, has led to more reliance beyond the traditional first line of antibiotic treatment. If left untreated, severe cases of the disease can lead to intestinal perforation and even death. This suggests that prevention through vaccination may play a critical role in not only protecting against typhoid fever but reducing the spread of drug-resistant strains of the bacteria.

 

There are two TCVs prequalified by the World Health Organization (WHO) and available through Gavi, the Vaccine Alliance. In February 2024, IVI and SK bioscience announced that a third TCV, SKYTyphoid™, also achieved WHO PQ, paving the way for public procurement and increasing the global supply.

 

Alongside the SETA disease burden study, IVI has been working with colleagues in three African countries to show the real-world impact of TCV vaccination. These studies include a cluster-randomized trial in Agogo, Ghana and two effectiveness studies following mass vaccination in Kisantu, DRC and Imerintsiatosika, Madagascar.

 

Dr. Birkneh Tilahun Tadesse, Associate Director General at IVI and Head of the Real-World Evidence Department, explains, “Through these vaccine effectiveness studies, we aim to show the full public health value of TCV in settings that are directly impacted by a high burden of typhoid fever.” He adds, “Our final objective of course is to eliminate typhoid or to at least reduce the burden to low incidence levels, and that’s what we are attempting in Fiji with an island-wide vaccination campaign.”

 

As more countries in typhoid endemic countries, namely in sub-Saharan Africa and South Asia, consider TCV in national immunization programs, these data will help inform evidence-based policy decisions around typhoid prevention and control.

 

###

 

About the International Vaccine Institute (IVI)
The International Vaccine Institute (IVI) is a non-profit international organization established in 1997 at the initiative of the United Nations Development Programme with a mission to discover, develop, and deliver safe, effective, and affordable vaccines for global health.

IVI’s current portfolio includes vaccines at all stages of pre-clinical and clinical development for infectious diseases that disproportionately affect low- and middle-income countries, such as cholera, typhoid, chikungunya, shigella, salmonella, schistosomiasis, hepatitis E, HPV, COVID-19, and more. IVI developed the world’s first low-cost oral cholera vaccine, pre-qualified by the World Health Organization (WHO) and developed a new-generation typhoid conjugate vaccine that is recently pre-qualified by WHO.

IVI is headquartered in Seoul, Republic of Korea with a Europe Regional Office in Sweden, a Country Office in Austria, and Collaborating Centers in Ghana, Ethiopia, and Madagascar. 39 countries and the WHO are members of IVI, and the governments of the Republic of Korea, Sweden, India, Finland, and Thailand provide state funding. For more information, please visit https://www.ivi.int.

 

CONTACT

Aerie Em, Global Communications & Advocacy Manager
+82 2 881 1386 | aerie.em@ivi.int


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US Spent More Than Double What It Collected In February, As 2024 Deficit Is Second Highest Ever… And Debt Explodes

US Spent More Than Double What It Collected In February, As 2024 Deficit Is Second Highest Ever… And Debt Explodes

Earlier today, CNBC’s…

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US Spent More Than Double What It Collected In February, As 2024 Deficit Is Second Highest Ever... And Debt Explodes

Earlier today, CNBC's Brian Sullivan took a horse dose of Red Pills when, about six months after our readers, he learned that the US is issuing $1 trillion in debt every 100 days, which prompted him to rage tweet, (or rageX, not sure what the proper term is here) the following:

We’ve added 60% to national debt since 2018. Germany - a country with major economic woes - added ‘just’ 32%.   

Maybe it will never matter.   Maybe MMT is real.   Maybe we just cancel or inflate it out. Maybe career real estate borrowers or career politicians aren’t the answer.

I have no idea.  Only time will tell.   But it’s going to be fascinating to watch it play out.

He is right: it will be fascinating, and the latest budget deficit data simply confirmed that the day of reckoning will come very soon, certainly sooner than the two years that One River's Eric Peters predicted this weekend for the coming "US debt sustainability crisis."

According to the US Treasury, in February, the US collected $271 billion in various tax receipts, and spent $567 billion, more than double what it collected.

The two charts below show the divergence in US tax receipts which have flatlined (on a trailing 6M basis) since the covid pandemic in 2020 (with occasional stimmy-driven surges)...

... and spending which is about 50% higher compared to where it was in 2020.

The end result is that in February, the budget deficit rose to $296.3 billion, up 12.9% from a year prior, and the second highest February deficit on record.

And the punchline: on a cumulative basis, the budget deficit in fiscal 2024 which began on October 1, 2023 is now $828 billion, the second largest cumulative deficit through February on record, surpassed only by the peak covid year of 2021.

But wait there's more: because in a world where the US is spending more than twice what it is collecting, the endgame is clear: debt collapse, and while it won't be tomorrow, or the week after, it is coming... and it's also why the US is now selling $1 trillion in debt every 100 days just to keep operating (and absorbing all those millions of illegal immigrants who will keep voting democrat to preserve the socialist system of the US, so beloved by the Soros clan).

And it gets even worse, because we are now in the ponzi finance stage of the Minsky cycle, with total interest on the debt annualizing well above $1 trillion, and rising every day

... having already surpassed total US defense spending and soon to surpass total health spending and, finally all social security spending, the largest spending category of all, which means that US debt will now rise exponentially higher until the inevitable moment when the US dollar loses its reserve status and it all comes crashing down.

We conclude with another observation by CNBC's Brian Sullivan, who quotes an email by a DC strategist...

.. which lays out the proposed Biden budget as follows:

The budget deficit will growth another $16 TRILLION over next 10 years. Thats *with* the proposed massive tax hikes.

Without them the deficit will grow $19 trillion.

That's why you will hear the "deficit is being reduced by $3 trillion" over the decade.

No family budget or business could exist with this kind of math.

Of course, in the long run, neither can the US... and since neither party will ever cut the spending which everyone by now is so addicted to, the best anyone can do is start planning for the endgame.

Tyler Durden Tue, 03/12/2024 - 18:40

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