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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.

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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.


Marin Katusa: Silver Miner Q4 Earnings Will Set Records

January 16, 2026 • Addison Wiggin

Mining stocks amplify everything. First Majestic went from losing money to 45% margins without building anything new. They just held the line on costs while silver did the heavy lifting.

That cuts both ways. If silver drops hard, margins compress just as fast. Same leverage, opposite direction.

The miners with the lowest costs and cleanest balance sheets will hold up best in a pullback and capture the most upside if the deficit keeps grinding.

Marin Katusa: Silver Miner Q4 Earnings Will Set Records
“Dispersion Rising”

January 16, 2026 • Addison Wiggin

Economists at Goldman Sachs said this morning they expect core inflation to finish the year around 2% even while GDP rises at a “surprisingly strong” 2.5% clip.

In our view, their inflation forecast is optimistic. Their GDP call? Modest.

The last time we pumped this much liquidity into the system — 2020 through 2022—the result was a manic asset bubble, runaway inflation, and an epic hangover at the Fed.

Goldman’s optimism has triggered a fresh round of bullish bets: cyclical stocks are rallying, “dispersion” in the S&P 500 is spiking, and the Fed is expected to cut interest rates twice before Jerome Powell gets kicked out of Washington at the end of his term on May 15.

“Dispersion Rising”
The Boom Behind the Data

January 16, 2026 • Addison Wiggin

Anecdotally, we’re hearing stories of warehouses full of GPUs sitting unused for lack of energy to power them. It’s a natural feature of the heavy capital investment in new machines. The grid has to catch up!

While Trump’s great reset rolls on in 2026, keep an eye on modular nuclear reactors and increased demand for uranium, natural gas and related resources.

The Boom Behind the Data
The Economics of Precious Metals Stocks Today

January 15, 2026 • Shad Marquitz

These PM producers are literally printing the most ‘hard money’ that they ever have at these metals prices and record margins here at the midway point in Q4.

If there ever was a time for this sector to get overheated and frothy, this would be it… only that isn’t what we’ve seen playing out.

PM producers are still insanely profitable at even at current metals prices and should be far more valuable based on their margins, revenue generating potential, and their resources still in the ground.

The Economics of Precious Metals Stocks Today