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Daily Missive

The Pursuit of Chaos

Loading ...John Robb

April 10, 2025 • 4 minute, 42 second read


networkspolitical networksTrade war

The Pursuit of Chaos

 

April 10, 2025 — In one short year, the reborn red political network has:

  • taken over the Republican party,
  • neutralized the legacy media,
  • and thoroughly disrupted the blue political network that controls the Democratic party.

It’s proven it can wage an online political war and win, but now comes the hard part. Can it govern? Four years ago, the blue network faced the same situation. It put a candidate who mailed in his campaign into the White House and the red network was in tatters (particularly after Jan 6th).

However, a mere four years later, the blue network is shattered and out of power; a failure caused by flaws in how that network made decisions. Is the same fate in store for the red network and if so, what are these flaws?

Turn Your Images On

A Venn diagram of the two predominant political parties in the US doesn’t yield much crossover and even less in common.

We’re in the midst of trying to find a way to integrate networked decision-making into our system of societal governance.

  • The development of the printing press changed the way we think (at the neural level), and by extension, it changed the way we govern ourselves.
  • Over time, we developed three types of decision-making; bureaucratic (gov’t and corporate), market (financial, economic, and elections), and tribal (converted to nationalism); combining them into a functional, systemic whole. It was a turbulent process of trial, error, and disaster (the implosion of two failed systems, Communism and Fascism, in the 20th Century are a case in point).
  • Now, we’re adding networked decision making to the existing mix using two political networks (red and blue). Each network has their own way of making decisions and have the potential to become invaluable to how we make decisions, but they so new, they are filled with flaws and dangers. Don’t confuse this newness for weakness though. These networks have proven so powerful, it took less them than a decade to dominate our societal decision making system.

With this in mind, let’s dig into how we got to where we are today.

How Political Networks Evolve

The red and blue networks aren’t changing incrementally. They are undergoing a rapid process of evolution; birth, death, and rebirth (in a stronger configuration). The competition between them and the relative lack of friction in forming networked organizations, is driving this process forward at a torrential pace. Let’s use the evolution of the red network as an example:

  • Back in 2016, the red network was a decentralized open-source insurgency held together by a simple goal (put Trump, a weapon of mass disruption, in the White House).
  • Its extreme decentralization made the insurgency nearly impossible to suppress (the establishment tried) and its open source dynamic — Anyone could join in. Anyone could contribute. Successes were copied and amplified. — made it far more innovative than the establishment they were at war with.
  • This combination of strengths made it possible for the red network insurgency to take over the Republican party, overload the Democratic party, and place Trump in the White House in less than a year. However, that’s when things went sideways. Due to the way they work, open source insurgencies have a fatal flaw. They fall apart when they achieve their goal; in this case, when Trump won, the insurgency faded, leaving him to govern alone.

Four years of blue network rule later, a newly evolved red network emerged to put Trump into the White House and shatter the blue network.

  • The red network in 2024 wasn’t as decentralized as 2016’s open source insurgency because it didn’t need to be. Elon’s acquisition of X removed the blue network’s suppression (media, corporate, government, individuals) that made decentralization a requirement for survival in 2016.
  • Instead of millions of semi-anonymous individuals working to put Trump into the White House, the 2024 network was run by hundreds of big, powerful, and professional accounts (highly evolved digital ledgers with hundreds of millions of followers collectively) with a media presence many times that of the legacy media.
  • These accounts, acting as gatekeepers for innovation, amplifiers for online maneuvers, and the curators of narratives usable in governance. They anchored the network, providing it with a permanence and a cohesion it didn’t have in 2016. In this unevolved form, it didn’t have the capacity to persist after reaching its goal (win the White House).

The Collapse of the Blue Network

The blue network formed in 2017, to oppose Trump. At that point it was apparent to me (long before it became a journalistic cottage industry to complain about censorship, etc.) that the blue network’s decision-making processes were deeply flawed and that these flaws would drive it to seek increasing levels of centralization and control. Worse, my fear that this effort (particularly with AI on the doorstep) could rapidly overshoot the mark and plunge us into a stasis I named ‘The Long Night.”

—John Robb
Global Guerillas & Grey Swan

P.S. from Addison: As you might expect, the Grey Swan inbox has been active. And, well, animated. I’m happy to report Trump Derangement Syndrome (TDS) is alive and well. As are the folks who are critical of others who resist without providing productive alternatives. Oy!

For our part, we’ve been busy tending to the Grey Swan model portfolio and getting our April monthly bulletin in the hands of paid members. If ever there was a time for diligent updates… this would be it.

That said, the inbox continues to be a source of wonder and entertainment. Please share your ideas here: addison@greyswanfraternity.com. And thank you for your patience!


The Ghost of Bastiat

October 6, 2025 • Addison Wiggin

By then the receipts on my desk had arranged themselves into a sort of chorus. I heard, faintly, another refrain—one from Kentucky. In the first days of the shutdown, Senator Rand Paul stood alone among Republicans and voted against his party’s stopgap, telling interviewers that the numbers “don’t add up” and that he would not sign on to another year that piles $2 trillion onto the debt.

That, I realized, is what the tariff story shares with the broader budget theater: the habit of calling a tax something else, of shifting burdens into the fog and then celebrating the silhouette as victory. Even the vote tally made the point: he was the only Republican “no,” a lonely arithmetic lesson in a crowded room.

The Ghost of Bastiat
The Dollar’s Long Goodbye

October 6, 2025 • Addison Wiggin

Senator Rand Paul, (R. KY), who was the sole Republican to vote against a continuing resolution, seems to care about the actual finances of the government. “I would never vote for a bill that added $2 trillion in national debt,” Paul said in various interviews over the weekend.

The $2 trillion he’s referring to is the lesser of two proposals made by the national parties… and would accrue during this next fiscal year.

Oy.

We liked what Liz Wolfe at Reason wrote on Friday, so we’ll repeat it here: “One of the dirty little secrets of every shutdown is that everything remains mostly fine. Private markets could easily replace many federal functions.”

It’s a strange kind of confidence — one where Wall Street soars while Washington goes dark.

The Dollar’s Long Goodbye
A Vote For The Yen Carry Trade

October 6, 2025 • Addison Wiggin

The Liberal Democratic Party victory has sent Japanese stocks soaring, as party President Sanae Takaichi – now set to become Japan’s first female Prime Minister – is a proponent of stimulus spending, and a China hawk. The electoral win is a vote to keep the yen carry trade alive… and well.

The “yen carry trade” is a currency trading strategy. By borrowing Japanese yen at low interest rates and investing in higher-yielding assets, investors have profited from the interest rate differential. Yen carry trades have played a huge role in global liquidity for decades.

Frankly, we’re disappointed — not because of the carry trade but because the crowd got this one so wrong!

A Vote For The Yen Carry Trade
Beware: The Permanent Underclass

October 3, 2025 • Addison Wiggin

Back in the Global Financial Crisis (2008), we recall mass layoffs were driving desperation.

Today, unemployment is relatively low, if climbing.

Affordability is much more of an issue. Food, rent, healthcare, and childcare are all rising faster than wages. Households aren’t jobless; they’re stretched. Job “quits” are at crisis-level lows.

In addition to the top 10% of earners, consumer spending is still strong. Not necessarily because of prosperity, but because households are taking extra shifts, hustling gigs, working late into the night, and using credit cards. The trends hold up demand but hollow out savings.

It’s the quiet form of financial repression. In an era of fiscal dominance, savers see easy returns clipped, workers stretch hours just to stay even, and wealth slips upward into assets while daily life grows harder to afford.

Beware: The Permanent Underclass