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Beneath the Surface

Bonus Grey Swan Event: Rise of the American Police State

Loading ...Addison Wiggin

January 2, 2025 • 6 minute, 1 second read


civil decaycybertruckGrey Swan EventTrumpviolence

Bonus Grey Swan Event: Rise of the American Police State

“Violence, even well-intentioned, always rebounds upon oneself.”
–Lao-Tzu


 

January 2, 2025 — Well, that didn’t take long. We published Grey Swan Event #1: Return of American Political Violence at 2 p.m. ET on December 31, 2024.

Less than 15 hours later, the first knucklehead of the year, Army veteran Shamsud-Din Jabbar, 42, a home-grown terrorist from  Houston, Texas, drove his Ford F-10 Lightning into a crowd of New Year’s revelers on New Orleans’ famed Bourbon Street.

Jabbar killed 15 people with the pickup truck and then got into a shoot-out with New Orleans police, wounding two officers.

Early reports indicate the assailant had some morbid fascination with ISIS. It’s too early to tell if that’s material to the incident or not. Video evidence on the Internet shows the dumbass was flying an ISIS flag from the back of his truck when he committed the crime.

Six hours later, a second as yet unidentified knucklehead exploded a Tesla Cybertruck in front of the Trump International Hotel in Las Vegas, killing himself and injuring seven other people minding their own business nearby.

Law enforcement told the media that the Cybertruck was rented to Matthew Alan Livelsberger, 37, an active-duty U.S. Army Special Forces intelligence sergeant serving in Germany who was on leave in Colorado at the time of the incident.

The two acts of domestic violence are not currently thought to be connected. But again, it’s probably early to tell on that account, too.

The Cybertruck, part of Elon Musk’s brand image, raging on fire in front of a Trump property is already the first iconic image of 2025.

Turn Your Images On

Source: Reddit

Like we said, that didn’t take long.

Here’s a bonus Grey Swan event that you might think is improbable but whose likelihood just gained a few determinant odds for the year: The U.S. law enforcement response will be strict and targeted to U.S. citizens. The long-feared American Police State has reached headline status in mainstream culture.

That’s not a Grey Swan event we would ever want to predict, much less see or experience. But, if ever Vonnegut’s expression “so it goes” is appropriate, it’s how we begin the year 2025.

To be clearer, a “law and order” response will likely swing the pendulum to the opposite extreme, inviting further attacks and an ever more strident police response, replete with a further erosion of civil liberties.

How did we get here? We look forward to your own ideas on these events. And prime the pump with a thoughtful response we received from Guillermo, a Grey Swan member, and American citizen, currently raising his daughter in the D0minican Republic.

What, in part, is the cause of America’s declining sense of civic duty and rising violent tribalism? Guillermo gives a specific response from his own perspective below. ~ Addison

The Decline of America’s Civil Institutions
Guillermo Garcia, Grey Swan Investment Fraternity

I’ve just read your email regarding what is happening in American society. Your article was a very good read in these difficult times the world is living. I’m an American citizen by birth and have been a lover of the USA ever since my parents sent me to a boarding Catholic high school from 1974 until 1978 in Maryland. That’s where I learned why and how the USA had become the greatest country in the world.

For years, I have been uncomfortably aware of the issues you describe. It is quite an experience to have known the States in high school in the ’70s and to have seen the decline of American society, little by little (which may be the worst way possible). After high school, I spent most of my adult life living overseas in the Dominican Republic, in Santo Domingo and yet, I never stopped reading the Wall Street Journal, among other news sources.

In 2013, I enrolled in the online University of Phoenix and was very surprised when I was told to read and learn about strange things, such as a textbook on how to be “politically correct.” Being a history lover with hundreds of history books under my belt, I remember quite well when I started feeling dismay for American society.

My daughter, who was born in the year 2000, went to an American school in Santo Domingo for her entire K-12 education. I saw how the “common core” education, introduced by Barack Obama for all American students in 2009, reminded me of books like “1984” and “Animal Farm,” by George Orwell.

I remember several instances of attempts to indoctrinate her, but I will only mention two here: once she told me in sixth grade that she had seen a movie about Hitler; I asked her what class she was in when they showed the movie to her; she said it was in English class. So I told her about Hitler and why it was a historical topic with nothing to do with the English language; I asked her if she agreed; she said, “Yes, you’re right,” feeling confused about the reason for seeing the movie; so I explained to her what indoctrination was and how the Obama administration was doing it with her generation.

The second was in her senior year in high school, when a teacher asked the entire class to raise their hands regarding their agreement with issues like abortion, prostitution, Etc… When she was the only one to answer against two of the “politically correct” answers, the teacher literally berated her in front of the entire class. She called me in tears. Just by coincidence, two weeks later was the day for us to have appointments with teachers, during a visit all parents would make to the school. So two weeks later I, asked the teacher about it, alone in his classroom with my wife. I minced no words, including about his job security, and the guy got scared. When we left she laughed and told me his hands had been trembling.

The present is a difficult time for the USA. It’s the result of a very expensive campaign by members of the World Economic Forum, an elite group of European and American economic, political and academic elites, founded by Klaus Shwab in 1973. They have been meeting and talking for decades; people who literally don’t know what to do with all the money they have. Just imagine!

On November 5, 2024, the USA came very close to destroying itself. I was in Florida and breathed very deeply when the end of the American experiment didn’t come. But it was too close for comfort. I had given more money than I should have to the Republican Party, but what the heck! It felt good, and maybe, just maybe, it made a difference. We are fighting on the same side!

Please receive my best regards Addison; from your fellow American, ~ Guillermo Garcia

Regards,


Addison Wiggin,
Grey Swan

P.S.  For the record, Guillermo’s response is the exact kind of thoughtful, experience-based reply we relish. This year, as we develop the fraternity, we expect to deploy a community chat feature to the Grey Swan website.

If you’re in favor of a member-driven community app, say “aye” and send your own comments on the top Grey Swan events of 2025 here: addison@greyswanfraternity.com.


The Debasement “Trade”

November 18, 2025 • Mark Jeftovic

Bitcoin isn’t a trade and trying to time it with chart patterns generally does not work.

I’ve never really felt like technical analysis carried much real predictive edge in general and when it comes to BTC, I’ve seen too many failed “death crosses” to change my opinion.

The one that just triggered in mid-November as bitcoin flirted with $90,000 is just the latest.

What really matters? It’s a monetary regime change – if market participants are trading anything it’s getting rid of a currency (“it’s the denominator, stupid”) for a store of value – and we’re seeing it in spades with Bitcoin and gold.

The Debasement “Trade”
The Cult of Stock Market Riches

November 18, 2025 • Addison Wiggin

White-collar hiring is, in fact, slowing. Engel’s Pause is taking hold of the jobs picture.

In the meantime, everyday Americans are rediscovering an ancient truth: there is wisdom in wearing steel-toed boots.

Jobs that struggle to attract bodies in boom times are now seeing stampedes of applicants.

– Georgia’s Department of Corrections: applications up 40%.

– The U.S. military: reached 2025 recruiting goals early.

– Waste management staffing: applications up 50%.

For now, economists call this “labor market tightness.” Anyone who has ever scrubbed a grease trap knows it by another name: fear.

The Cult of Stock Market Riches
Whales Buy the Bitcoin Dip

November 18, 2025 • Addison Wiggin

Bitcoin has historically weathered 30%+ corrections while still in a bull market. 

Global liquidity fears and lower odds of a Fed rate cut in December are driving bitcoin and other cryptos lower at present. 

As Andrew Zatlin described on Thursday’s Live! we can expect a series of stimulus efforts next year, ahead of the midterms, driving new liquidity. The $2,000 “tariff rebate” checks President Trump has been touting are but one example.

When higher liquidity hits the market – in whatever form it takes – today’s bitcoin buyers will be waiting.

Make like the whales, and use market selloffs and stimulus to your advantage.

Whales Buy the Bitcoin Dip
Private Credit’s Creditanstalt Moment

November 17, 2025 • Andrew Packer

The market seems to know something about private credit that we don’t. And in a big enough liquidity event for private credit, investors will have to sell off more liquid assets if they want capital.

That’s the danger private credit poses today, exactly at a time when rules are being eased to make it easier for retail investors like us to buy into this asset class.

I’m in the camp that this smells like a way to keep the party going by providing another source of liquidity – the passive investment flows from your regular 401(k) contributions. The smell takes on a sour note as this sector starts to falter.

Perhaps today’s selloff is simply a reaction to declining interest rates, the growth of private credit, and a few inevitable deals that have gone sour recently.

Private Credit’s Creditanstalt Moment