Make Your Choice: Change by Pain or Insight

Most experienced investors know the four most dangerous words are: This time is different.

It never is.

And yet one of my key predictions here at Peak Prosperity is that The next twenty years will be completely unlike the last twenty years.

So am I saying that things really will be different this time?

Yes, I am. But to understand why, you have to look closely at the unprecedented moment in history in which we live, as well as how the Three E's – the Economy, Energy and Environment – all tie together now in a way they never have before.

For those who prefer their conclusions right up front, the simplest summary I can provide is that everything we think we know about "how things work" is just plain wrong.

This explains why, among many other grotesque distortions, the stock and bond markets are spectacularly overpriced and overvalued right now.

This danger is important to be aware of because when things correct, as they inevitably must, the next crash will be incredibly damaging. It could be as profound as that which dethroned Spain as a world power, permanently.

Peak Prosperity user Gyurash put this risk in context within his comment to our recent podcast on Economics for Independent Thinkers:

The mention of Paul Volker was interesting. I remember listening to a lecture given by Mr. Volker played on public radio in the mid 80s. He talked about the Spanish empire in the 16th century and the easy money train they had coming from South American gold and silver. He said that although it seemed to create great wealth it also made for a false economy in Spain. In addition to creating price bubbles, the Spanish did not use it to build much of anything other than big villas, built by itinerant foreign labor by the way, so when the gold and silver flow slowed when the biggest mines were effectively depleted, their economy crashed so hard that it never recovered, even up to today. (Source)

Delusional Thinking

What's worse than wishful thinking? Delusional thinking.

The sort of ideas that harm rather than help those who hold them.

Of the many current policy delusions I could rail about, perhaps the greatest of them all is the quite-impossible belief that we can have infinite growth on a finite planet.

I know, I know, refuting this is so brain-dead easy to debunk that it seems pedestrian, if not childishly so, to raise it here again. It's quite an impossible proposition.

Even the most cursory of reviews of mining data (just one of many possible examples), show that many critical ores and minerals are vastly more difficult and expensive to extract and bring to market than they were just a few decades ago. And the trendlines keep getting worse.

But let's go through this once again, because it's such an important point. For those of you already on my side of the boat, please bear with me. Perhaps something new will emerge for you on this next go around.

The Harsh Math

Exponential expansion requires not just some new minerals coming to market, but exponentially more.

It works out like this. Suppose that 100 units of copper were produced in year 1, and output (as demanded by economic growth) was expanding at a 3% rate. How long would it take for production to double? The answer is that after 24 years we'd find that 203 units were being produced. So a 3% growth rate means that it takes only 24 years to fully double production.

However, the more interesting fact is that over that same 24-year stretch, if we add up each year's production into a cumulative total we discover that 3,546 units of copper had been produced. How much copper would you guess was produced over the prior 24-year stretch (the one that got us to 100 units in the first place)?

The answer is just 1775 units. In other words, half the amount produced during the next doubling. Going back further and adding up all of the doublings of copper production throughout all of history we'd discover that each new doubling produced (and consumed) as much as the sum total of all the prior doubling periods combined.

You can prove this to yourself by looking at a doubling sequence such as 0.25, 0.5, 1, 2, 4, 8, 16, 32 etc. Note that 4 is larger than (0.25 + 0.5 + 1 + 2) and that 8 is larger than (0.25 + 0.5 + 1 + 2 + 4) and that 16 is larger than (0.25 + 0.5 + 1 + 2 + 4 + 8) and so on -- into infinity.

Again, each new doubling involves an increase that is larger than the combined values of all the prior doublings in history.

For the visually-minded, here's that same idea expressed in an image:

How Many More Doublings Can We Possibly Have From Here?

Only the most delusional would argue that we can dependably double our extraction of key natural resources forever.

Every two decades (or so), will we always be able to use twice as much farmland, twice as much fish in the sea, twice as much oil in the ground, as has been used before throughout all of human history?

Of course not. Planet Earth is a finite system.

This is why I claim that everything we think we know about "how things work" is wrong. Our entire economic and financial systems, their associated monetary models and their current financial asset prices, are predicated on the principle of continuous growth. And not just any sort of growth: Exponential growth. Predictable doubling -- forever.

Look, it's ridiculously easy to prove that there won't always be twice as much copper (or nearly any other key natural resource) as has been extracted throughout all of prior human history. Things run out. They deplete. They become more dilute as the high grades are exploited first.

At some point, doubling becomes impossible. That's when you're past the point where half has been extracted and half still remains in the ground. After that, there are exactly zero doubling periods remaining! That's just elementary math.

Why care?

Because once the doubling periods are over, every single economic model and financial asset that is predicated on continuous expansion breaks. Our systems stop steadily growing; and instead start increasingly shrinking.

This not a hard concept to grasp, intellectually, for most people with an open mind. But in practice, because it challenges our comfortable understanding of the world, because it collides with an entire Disney World of incompatible social belief systems, it's pretty much impossible for the many people to even begin to wrestle with. Forget about a mainstream economist or central banker, whose salary requires them to adhere to the status quo.

The warning here is that we our deluding ourselves as a society. We are herding ourselves, lemming-like, straight towards the cliff ledge.

Think Critically!

Our mission here at PeakProsperity.com is to Create a World Worth Inheriting. While we help people make informed decisions to imbue their lives with greater abundance and satisfaction today, it's our dedication to the long-term picture that shapes everything we do.

Very few voices are standing about waving their arms in the air like we are, warning of the approaching cliff. We're aware that the point of no return might still be several decades out into the future, but we also realize that it could already be behind us. It's nearly impossible to know right now given the complex system that is our planet -- but given the existential risks involved, our opinion is that everyone should be mobilizing in response to this arriving (arrived?) crisis.

We often get labeled as narrow-minded “Malthusians". Or accused of failing to account for human ingenuity. (Neither is accurate, we think.)

But in reality, we're simply data driven. The facts are what they are. Logic is what it is.

And we get it. It's both a factual and a logical nightmare for the infinite growth crowd that the earth is finite.

But as Einstein famously quipped:

And as you wrap your brain around the limits to growth, remember that you're subject to the same comprehensive programming that envelops us all. The messaging that constantly reinforces the idea that endless growth is what we need, and what we can expect.

This programming is subtle, reassuring and ubiquitous; which makes it hard to resist. Here's a prime example:

(Source)

To an economist like Bernanke, there are only virtuous expansions. Of course, the sort of expansion he refers to is exponential growth. Which is absolutely destined to fail in the long run (and now, maybe, the short).

And when that happens, the fallout will be spectacular and highly destructive to the hopes and dreams of literally billions of people.

Make Your Choice: Change By Pain Or Insight

What's unclear to me is if there can be any meaningful recovery from this next crash, whenever it happens and however long it takes.

To return to the opening piece of this article, while I know that this time is different are dangerous words for investors to believe, the impending collision between delusional infinite growth thinking and resource limits and other realities will appear to the average observer like a gigantic change. But, in fact, it simply will mean that humans are subject to the same limits as any other life form on earth.

In other words, it really won't be different this time.

In boy-meets-girl story form, the plot line of the natural process for all forms of life is:

  1. organism finds tasty energy source
  2. organism expands exponentially into that energy source
  3. energy source dwindles even as organism continues into population overshoot, and then
  4. happy times turn into tough times, and organism population plummets

Given that literally everything we hold dear and take for granted, such as well-stocked supermarkets, 24/7 electricity, and an appreciating retirement portfolio are all themselves dependent on an economic model that requires perpetual exponential expansion, several questions emerge.

How can I protect myself, my family and those I care about? How can I secure a prosperous future? What do I need to do to develop the right mental models and belief system to deal effectively with the coming challenges?

You can either address these questions head-on now, while the world still works the way we're accustomed to. Or later, under crisis conditions.

We've learned that there are two ways that people change their beliefs and then their actions: by pain or by insight.

Most people go the pain route. And in the process, they waste a lot of valuable time that could have been spent constructively. It's only after the heart attack, the divorce, the backing over the family dog while drunk—moments of extreme pain—that most people will begin to actively face the idea that they need to make different decisions in life.

But it doesn't have to be that way. Part of the beauty of being human is that we can learn from observation, reflection and experience, and can adapt. Critical thinkers have this ability to change by insight. They use new information to put new behaviors into practice until those practices become new habits. And with better habits, we achieve better destinies.

So which route will you choose? Pain or insight?

The story told by the Three Es is loaded with the potential for plenty of painful moments over the next few decades. Sadly, a lot of people will not take precautionary steps far enough in advance to matter. They're just not focusing on the risks right now. As a result, much of the world will be forced to change its behavior via the pain route.

Use this awareness as a sense of urgency to prepare now. To secure your future prosperity, as well as to help those regretting that they didn't follow your lead.

In Part 2: Steps For Changing By Insight, we lay out our prescriptive guidance what what to do now, in a world saddled with record debts, and a debt-based system of money that itself is utterly and completely dependent on infinite expansion, where something's got to give

If you believe in eternal infinite growth, then sure, stay invested in stocks and bonds and go ahead and buy the dips.

But if you don't, take steps today to change your life by insight, secure your future prosperity, and serve as a model for others.

Click here to read Part 2 of this report (free executive summary, enrollment required for full access)

EXPOSED: Why Eisenhower warned us about endless wars

PAUL J. RICHARDS / Staff | Getty Images

Donald Trump emphasizes peace through strength, reminding the world that the United States is willing to fight to win. That’s beyond ‘defense.’

President Donald Trump made headlines this week by signaling a rebrand of the Defense Department — restoring its original name, the Department of War.

At first, I was skeptical. “Defense” suggests restraint, a principle I consider vital to U.S. foreign policy. “War” suggests aggression. But for the first 158 years of the republic, that was the honest name: the Department of War.

A Department of War recognizes the truth: The military exists to fight and, if necessary, to win decisively.

The founders never intended a permanent standing army. When conflict came — the Revolution, the War of 1812, the trenches of France, the beaches of Normandy — the nation called men to arms, fought, and then sent them home. Each campaign was temporary, targeted, and necessary.

From ‘war’ to ‘military-industrial complex’

Everything changed in 1947. President Harry Truman — facing the new reality of nuclear weapons, global tension, and two world wars within 20 years — established a full-time military and rebranded the Department of War as the Department of Defense. Americans resisted; we had never wanted a permanent army. But Truman convinced the country it was necessary.

Was the name change an early form of political correctness? A way to soften America’s image as a global aggressor? Or was it simply practical? Regardless, the move created a permanent, professional military. But it also set the stage for something Truman’s successor, President Dwight “Ike” Eisenhower, famously warned about: the military-industrial complex.

Ike, the five-star general who commanded Allied forces in World War II and stormed Normandy, delivered a harrowing warning during his farewell address: The military-industrial complex would grow powerful. Left unchecked, it could influence policy and push the nation toward unnecessary wars.

And that’s exactly what happened. The Department of Defense, with its full-time and permanent army, began spending like there was no tomorrow. Weapons were developed, deployed, and sometimes used simply to justify their existence.

Peace through strength

When Donald Trump said this week, “I don’t want to be defense only. We want defense, but we want offense too,” some people freaked out. They called him a warmonger. He isn’t. Trump is channeling a principle older than him: peace through strength. Ronald Reagan preached it; Trump is taking it a step further.

Just this week, Trump also suggested limiting nuclear missiles — hardly the considerations of a warmonger — echoing Reagan, who wanted to remove missiles from silos while keeping them deployable on planes.

The seemingly contradictory move of Trump calling for a Department of War sends a clear message: He wants Americans to recognize that our military exists not just for defense, but to project power when necessary.

Trump has pointed to something critically important: The best way to prevent war is to have a leader who knows exactly who he is and what he will do. Trump signals strength, deterrence, and resolve. You want to negotiate? Great. You don’t? Then we’ll finish the fight decisively.

That’s why the world listens to us. That’s why nations come to the table — not because Trump is reckless, but because he means what he says and says what he means. Peace under weakness invites aggression. Peace under strength commands respect.

Trump is the most anti-war president we’ve had since Jimmy Carter. But unlike Carter, Trump isn’t weak. Carter’s indecision emboldened enemies and made the world less safe. Trump’s strength makes the country stronger. He believes in peace as much as any president. But he knows peace requires readiness for war.

Names matter

When we think of “defense,” we imagine cybersecurity, spy programs, and missile shields. But when we think of “war,” we recall its harsh reality: death, destruction, and national survival. Trump is reminding us what the Department of Defense is really for: war. Not nation-building, not diplomacy disguised as military action, not endless training missions. War — full stop.

Chip Somodevilla / Staff | Getty Images

Names matter. Words matter. They shape identity and character. A Department of Defense implies passivity, a posture of reaction. A Department of War recognizes the truth: The military exists to fight and, if necessary, to win decisively.

So yes, I’ve changed my mind. I’m for the rebranding to the Department of War. It shows strength to the world. It reminds Americans, internally and externally, of the reality we face. The Department of Defense can no longer be a euphemism. Our military exists for war — not without deterrence, but not without strength either. And we need to stop deluding ourselves.

This article originally appeared on TheBlaze.com.

Censorship, spying, lies—The Deep State’s web finally unmasked

Chip Somodevilla / Staff | Getty Images

From surveillance abuse to censorship, the deep state used state power and private institutions to suppress dissent and influence two US elections.

The term “deep state” has long been dismissed as the province of cranks and conspiracists. But the recent declassification of two critical documents — the Durham annex, released by Sen. Chuck Grassley (R-Iowa), and a report publicized by Director of National Intelligence Tulsi Gabbard — has rendered further denial untenable.

These documents lay bare the structure and function of a bureaucratic, semi-autonomous network of agencies, contractors, nonprofits, and media entities that together constitute a parallel government operating alongside — and at times in opposition to — the duly elected one.

The ‘deep state’ is a self-reinforcing institutional machine — a decentralized, global bureaucracy whose members share ideological alignment.

The disclosures do not merely recount past abuses; they offer a schematic of how modern influence operations are conceived, coordinated, and deployed across domestic and international domains.

What they reveal is not a rogue element operating in secret, but a systematized apparatus capable of shaping elections, suppressing dissent, and laundering narratives through a transnational network of intelligence, academia, media, and philanthropic institutions.

Narrative engineering from the top

According to Gabbard’s report, a pivotal moment occurred on December 9, 2016, when the Obama White House convened its national security leadership in the Situation Room. Attendees included CIA Director John Brennan, Director of National Intelligence James Clapper, National Security Agency Director Michael Rogers, FBI Deputy Director Andrew McCabe, Attorney General Loretta Lynch, Secretary of State John Kerry, and others.

During this meeting, the consensus view up to that point — that Russia had not manipulated the election outcome — was subordinated to new instructions.

The record states plainly: The intelligence community was directed to prepare an assessment “per the President’s request” that would frame Russia as the aggressor and then-presidential candidate Donald Trump as its preferred candidate. Notably absent was any claim that new intelligence had emerged. The motivation was political, not evidentiary.

This maneuver became the foundation for the now-discredited 2017 intelligence community assessment on Russian election interference. From that point on, U.S. intelligence agencies became not neutral evaluators of fact but active participants in constructing a public narrative designed to delegitimize the incoming administration.

Institutional and media coordination

The ODNI report and the Durham annex jointly describe a feedback loop in which intelligence is laundered through think tanks and nongovernmental organizations, then cited by media outlets as “independent verification.” At the center of this loop are agencies like the CIA, FBI, and ODNI; law firms such as Perkins Coie; and NGOs such as the Open Society Foundations.

According to the Durham annex, think tanks including the Atlantic Council, the Carnegie Endowment, and the Center for a New American Security were allegedly informed of Clinton’s 2016 plan to link Trump to Russia. These institutions, operating under the veneer of academic independence, helped diffuse the narrative into public discourse.

Media coordination was not incidental. On the very day of the aforementioned White House meeting, the Washington Post published a front-page article headlined “Obama Orders Review of Russian Hacking During Presidential Campaign” — a story that mirrored the internal shift in official narrative. The article marked the beginning of a coordinated media campaign that would amplify the Trump-Russia collusion narrative throughout the transition period.

Surveillance and suppression

Surveillance, once limited to foreign intelligence operations, was turned inward through the abuse of FISA warrants. The Steele dossier — funded by the Clinton campaign via Perkins Coie and Fusion GPS — served as the basis for wiretaps on Trump affiliates, despite being unverified and partially discredited. The FBI even altered emails to facilitate the warrants.

ROBYN BECK / Contributor | Getty Images

This capacity for internal subversion reappeared in 2020, when 51 former intelligence officials signed a letter labeling the Hunter Biden laptop story as “Russian disinformation.” According to polling, 79% of Americans believed truthful coverage of the laptop could have altered the election. The suppression of that story — now confirmed as authentic — was election interference, pure and simple.

A machine, not a ‘conspiracy theory’

The deep state is a self-reinforcing institutional machine — a decentralized, global bureaucracy whose members share ideological alignment and strategic goals.

Each node — law firms, think tanks, newsrooms, federal agencies — operates with plausible deniability. But taken together, they form a matrix of influence capable of undermining electoral legitimacy and redirecting national policy without democratic input.

The ODNI report and the Durham annex mark the first crack in the firewall shielding this machine. They expose more than a political scandal buried in the past. They lay bare a living system of elite coordination — one that demands exposure, confrontation, and ultimately dismantling.

This article originally appeared on TheBlaze.com.

Trump's proposal explained: Ukraine's path to peace without NATO expansion

ANDREW CABALLERO-REYNOLDS / Contributor | Getty Images

Strategic compromise, not absolute victory, often ensures lasting stability.

When has any country been asked to give up land it won in a war? Even if a nation is at fault, the punishment must be measured.

After World War I, Germany, the main aggressor, faced harsh penalties under the Treaty of Versailles. Germans resented the restrictions, and that resentment fueled the rise of Adolf Hitler, ultimately leading to World War II. History teaches that justice for transgressions must avoid creating conditions for future conflict.

Ukraine and Russia must choose to either continue the cycle of bloodshed or make difficult compromises in pursuit of survival and stability.

Russia and Ukraine now stand at a similar crossroads. They can cling to disputed land and prolong a devastating war, or they can make concessions that might secure a lasting peace. The stakes could not be higher: Tens of thousands die each month, and the choice between endless bloodshed and negotiated stability hinges on each side’s willingness to yield.

History offers a guide. In 1967, Israel faced annihilation. Surrounded by hostile armies, the nation fought back and seized large swaths of territory from Jordan, Egypt, and Syria. Yet Israel did not seek an empire. It held only the buffer zones needed for survival and returned most of the land. Security and peace, not conquest, drove its decisions.

Peace requires concessions

Secretary of State Marco Rubio says both Russia and Ukraine will need to “get something” from a peace deal. He’s right. Israel proved that survival outweighs pride. By giving up land in exchange for recognition and an end to hostilities, it stopped the cycle of war. Egypt and Israel have not fought in more than 50 years.

Russia and Ukraine now press opposing security demands. Moscow wants a buffer to block NATO. Kyiv, scarred by invasion, seeks NATO membership — a pledge that any attack would trigger collective defense by the United States and Europe.

President Donald Trump and his allies have floated a middle path: an Article 5-style guarantee without full NATO membership. Article 5, the core of NATO’s charter, declares that an attack on one is an attack on all. For Ukraine, such a pledge would act as a powerful deterrent. For Russia, it might be more palatable than NATO expansion to its border

Andrew Harnik / Staff | Getty Images

Peace requires concessions. The human cost is staggering: U.S. estimates indicate 20,000 Russian soldiers died in a single month — nearly half the total U.S. casualties in Vietnam — and the toll on Ukrainians is also severe. To stop this bloodshed, both sides need to recognize reality on the ground, make difficult choices, and anchor negotiations in security and peace rather than pride.

Peace or bloodshed?

Both Russia and Ukraine claim deep historical grievances. Ukraine arguably has a stronger claim of injustice. But the question is not whose parchment is older or whose deed is more valid. The question is whether either side is willing to trade some land for the lives of thousands of innocent people. True security, not historical vindication, must guide the path forward.

History shows that punitive measures or rigid insistence on territorial claims can perpetuate cycles of war. Germany’s punishment after World War I contributed directly to World War II. By contrast, Israel’s willingness to cede land for security and recognition created enduring peace. Ukraine and Russia now face the same choice: Continue the cycle of bloodshed or make difficult compromises in pursuit of survival and stability.

This article originally appeared on TheBlaze.com.

The loneliness epidemic: Are machines replacing human connection?

NurPhoto / Contributor | Getty Images

Seniors, children, and the isolated increasingly rely on machines for conversation, risking real relationships and the emotional depth that only humans provide.

Jill Smola is 75 years old. She’s a retiree from Orlando, Florida, and she spent her life caring for the elderly. She played games, assembled puzzles, and offered company to those who otherwise would have sat alone.

Now, she sits alone herself. Her husband has died. She has a lung condition. She can’t drive. She can’t leave her home. Weeks can pass without human interaction.

Loneliness is an epidemic. And AI will not fix it. It will only dull the edges and make a diminished life tolerable.

But CBS News reports that she has a new companion. And she likes this companion more than her own daughter.

The companion? Artificial intelligence.

She spends five hours a day talking to her AI friend. They play games, do trivia, and just talk. She says she even prefers it to real people.

My first thought was simple: Stop this. We are losing our humanity.

But as I sat with the story, I realized something uncomfortable. Maybe we’ve already lost some of our humanity — not to AI, but to ourselves.

Outsourcing presence

How often do we know the right thing to do yet fail to act? We know we should visit the lonely. We know we should sit with someone in pain. We know what Jesus would do: Notice the forgotten, touch the untouchable, offer time and attention without outsourcing compassion.

Yet how often do we just … talk about it? On the radio, online, in lectures, in posts. We pontificate, and then we retreat.

I asked myself: What am I actually doing to close the distance between knowing and doing?

Human connection is messy. It’s inconvenient. It takes patience, humility, and endurance. AI doesn’t challenge you. It doesn’t interrupt your day. It doesn’t ask anything of you. Real people do. Real people make us confront our pride, our discomfort, our loneliness.

We’ve built an economy of convenience. We can have groceries delivered, movies streamed, answers instantly. But friendships — real relationships — are slow, inefficient, unpredictable. They happen in the blank spaces of life that we’ve been trained to ignore.

And now we’re replacing that inefficiency with machines.

AI provides comfort without challenge. It eliminates the risk of real intimacy. It’s an elegant coping mechanism for loneliness, but a poor substitute for life. If we’re not careful, the lonely won’t just be alone — they’ll be alone with an anesthetic, a shadow that never asks for anything, never interrupts, never makes them grow.

Reclaiming our humanity

We need to reclaim our humanity. Presence matters. Not theory. Not outrage. Action.

It starts small. Pull up a chair for someone who eats alone. Call a neighbor you haven’t spoken to in months. Visit a nursing home once a month — then once a week. Ask their names, hear their stories. Teach your children how to be present, to sit with someone in grief, without rushing to fix it.

Turn phones off at dinner. Make Sunday afternoons human time. Listen. Ask questions. Don’t post about it afterward. Make the act itself sacred.

Humility is central. We prefer machines because we can control them. Real people are inconvenient. They interrupt our narratives. They demand patience, forgiveness, and endurance. They make us confront ourselves.

A friend will challenge your self-image. A chatbot won’t.

Our homes are quieter. Our streets are emptier. Loneliness is an epidemic. And AI will not fix it. It will only dull the edges and make a diminished life tolerable.

Before we worry about how AI will reshape humanity, we must first practice humanity. It can start with 15 minutes a day of undivided attention, presence, and listening.

Change usually comes when pain finally wins. Let’s not wait for that. Let’s start now. Because real connection restores faster than any machine ever will.

This article originally appeared on TheBlaze.com.