Individual Economists

Xi Hints At More Top Purges, Issues Warning To 'Corrupt Elements' In Chinese Army

Zero Hedge -

Xi Hints At More Top Purges, Issues Warning To 'Corrupt Elements' In Chinese Army

One of the big themes to come out of China over the past several months (and even years) has been Chinese President Xi Jinping's (apparently ongoing) sweeping purge of PLA military command ranks on the basis of "corruption" - or rather what is most probably perceived disloyalty.

Already there's been several top dismissals including the firings of multiple members of the Central Military Commission (CMC) and dozens of generals - some even placed under house arrest, as well as a broad purge of the Chinese Communist Party.

Xi this weekend hinted there could be more to come, freshly warning Saturday during a speech to delegates from the People’s Liberation Army (PLA) and the People’s Armed Police that disloyalty to the party - or else selfish dealings and corruption - will not be tolerated.

"There must be no place in the military for those who are disloyal to the party, nor any place for corrupt elements," Xi said.

He then called for strict oversight in "key areas such as fund flows, the exercise of power, and quality control" during the country's next five-year plan which is set to be approved later this month.

Here's more of what he said via Chinese state sources:

It is essential to fully strengthen the Party's leadership and Party building in the military, and make Party organizations at all levels even stronger, Xi said, stressing the need to translate the Party's leadership strength into development momentum.

It is important to consolidate the ideological foundation that ensures officers and soldiers follow the Party and its guidance, and ensure that modern weaponry and equipment are placed in the hands of politically committed personnel, Xi said.

A former CIA analyst who follows Chinese elite politics, Christopher K. Johnson, recently told the NY Times of the ongoing purge trend:

"This move is unprecedented in the history of the Chinese military and represents the total annihilation of the high command."

The PLA has seen significant internal turmoil, especially since the Communist Party’s 20th Congress in late 2022. Several top military figures - including Defense Ministers Li Shangfu and Wei Fenghe, and CMC Political Work Department head Miao Hua - have disappeared or been removed, and many more followed. 

Tyler Durden Sun, 03/08/2026 - 18:00

Deutsche Bank Warns Energy Shock "Existential Threat" To Airlines, May Force Some To Ground Fleets

Zero Hedge -

Deutsche Bank Warns Energy Shock "Existential Threat" To Airlines, May Force Some To Ground Fleets

Flight disruptions tied to Operation Epic Fury in the Middle East exceeded 14,000 by the end of last week. While there were early signs of normalization by mid-week, the global aviation industry remains disrupted, with some of the weakest airlines facing an increased risk that surging energy prices could lead to the idling of commercial jet fleets.

The epicenter of the disruption is Persian Gulf airports and airlines. As of Friday, ten countries had closed their airspace, either partially or completely, since Operation Epic Fury against Iran began one week ago, according to Flightradar24 data.

Despite ongoing IRGC drone and missile attacks across Gulf states - sometimes targeting civilian infrastructure such as airports - some airports began resuming flights by midweek, including Dubai, Abu Dhabi, and King Khalid International near Riyadh, Saudi Arabia. However, there are reports of a direct strike on the airport in Dubai on Saturday.  

It is clear that flight disruptions across the Gulf states will persist as long as Operation Epic Fury continues. With U.S. CENTCOM stating overnight that the operation is only accelerating and only suggests disruptions will extend into next week.

The big risk flagged by Deutsche Bank analysts, led by Michael Linenberg, is that surging jet fuel prices could hit some of the weakest airlines.

With Brent crude futures up roughly 52% year to date and jet fuel up 100% to 125%, Linenberg warned clients in a note on Friday that "financially weakest carriers could halt operations."

"Year-to-date oil prices are up ~50% while jet fuel prices are up 100% - 125%. Absent near-term relief, airlines around the world could be forced to ground 1,000s of aircraft while some of the industry's financially weakest carriers could halt operations," the analyst said.

Linenberg continued:

US jet fuel crack spreads (i.e., the difference between underlying oil prices and jet fuel prices) for Gulf Coast, New York Harbor, and West Coast now range from $85 to $95 per barrel, a level that is at or above the underlying feed stock - WTI oil price currently trading at $86.04 and Brent oil price $88.99 (see Figure 1 below).

The last time we witnessed this phenomenon was in 2005 when crack spreads of as high as $65 per barrel exceeded ~$60 per barrel oil prices in the aftermath of Hurricanes Katrina and Rita. The damage to the airline industry was significant and widespread including major airlines Delta and Northwest filing for Chapter 11 bankruptcy in September 2005.

He warned that surging crack spreads amount to a major headwind of more than $20 billion for the airline industry and identified the carriers he sees as most exposed:

Over the past month, we have seen jet fuel prices climb $2.00 per gallon (e.g., Gulf Coast jet fuel prices last close of $4.30 versus $2.24 on February 5, 2026). Our current industry forecast calls for the US airline industry to consume 20 billion gallons of jet fuel in 2026, which suggests a fuel price headwind in the $10s of billions on an annualized basis. This compares to our 2026 operating income forecast of ~$20 billion. In Figure 2 below, we highlight 2026 EPS sensitivity to fuel price changes on a ceteris paribus basis. In reality, airlines will respond to higher fuel prices.

For example, we estimate a $10 across-the-board fare increase sustained on an annual basis could add $7 - $8 billion to top-line. Other important considerations include the negative impact of higher fuel prices on the US economy, and more specifically on demand for air travel, particularly among the most price sensitive consumers.

Looking at airline stocks, the S&P 500 Passenger Airlines Index fell 12.6% on the week, marking its largest decline since the 18% drop in the first week of April 2025, when Trump and China argued back and forth over trade.

The index hits turbulence as soon as the operation began. 

Also see this:

This adds to the growing list of secondary effects from Operation Epic Fury: the next wave of flight disruptions may stem not from disrupted Gulf air hubs, but from the energy shock itself, which could force the weakest carriers to idle fleets.

Professional subscribers can read the full note at our new Marketdesk.ai portal.

Tyler Durden Sun, 03/08/2026 - 17:30

Waste Of The Day: DEI Contractors Remain In Military's K-12 Schools

Zero Hedge -

Waste Of The Day: DEI Contractors Remain In Military's K-12 Schools

Authored by Jeremy Portnoy via RealClearInvestigations,

Topline: Controversial education firms that helped embed diversity, equity and inclusion principles in K-12 military schools during President Joe Biden’s administration are still working with the Department of Defense Education Activity, or DoDEA, and received a total of $171,175 in 2025.

Key facts: Thomas M. Brady, the director of DoDEA from 2014 to 2024, announced in 2020 that DEI “must be a foundational premise in every aspect of our organization.” Changes to that affect were quickly made to the curriculum of DoDEA, which runs 161 schools for the children of servicemembers living on military bases around the world.

Two teachers gave a presentation about how “elementary school is the perfect time” to “show students the diversity of gender expression and gender activity.” Educators were encouraged to hold “critical conversations” about “the relationships between identity and power” and “privilege,” which were meant to result in “crying” and “explicit confrontations.”

Many DEI consultants were removed after President Donald Trump took office in 2025 and ordered a ban on federal funds being used to teach or implement DEI principles, but some of the companies hired under Biden remain. 

DoDEA paid $30,175 last year to continue gym teachers’ membership in the professional society, SHAPE America, which instills its National Health Education Standards in gym classes. Board member Cara Grant said of the health standards, “We recognize that systemic disparities exist within our educational systems, disproportionately affecting marginalized communities. Our approach is not simply to level the playing field but to dismantle the structures that perpetuate inequality.” 

During a DoDEA presentation on the SHAPE standards in 2021, one teacher instructed her colleagues that “talking about heterosexuality as the norm” can “inherently cause conflict.”

DoDEA also paid $141,000 last year to the curriculum development company thinkLaw.

ThinkLaw CEO Colin Seale recently wrote a blog post calling on schools to hide DEI within their curriculums through “defiance disguised as compliance,” oddly linking it to a Lil Wayne song in which the rapper declares that “real Gs move in silence like lasagna.”

In one example, Seale tells teachers to discretely teach children that there are more than two genders without “openly” defying Trump’s executive orders to the contrary.

Summary: Parents should not face any secrecy about what their children are being taught in school, especially when those schools are funded by federal taxpayers.

The #WasteOfTheDay is brought to you by the forensic auditors at OpenTheBooks.com

Tyler Durden Sun, 03/08/2026 - 17:30

Wisconsin Man Who Killed Parents To Fund 'Satanic' Trump Assassination Attempt Sentenced

Zero Hedge -

Wisconsin Man Who Killed Parents To Fund 'Satanic' Trump Assassination Attempt Sentenced

A Wisconsin teenager who murdered his parents and stole their money to fund his plan to kill President Trump with a bomb was sentenced to life in prison on Thursday.

Nikita Casap, 18, pleaded guilty in January to two counts of first-degree intentional homicide in the shooting deaths of his mother, Tatiana Casap, and his stepfather, Donald Mayer, last year. As part of a plea deal, prosecutors dropped seven other charges, including two counts of hiding a corpse and theft. 

Investigators in the case say that Casap had put together a deranged fantasy whereby he would kill his own parents and use his inheritance to fund an assassination attempt on Trump - while simultaneously launching an anti-government insurgency.

He documented it in a manifesto titled “Accelerate the Collapse,” which was unveiled in a federal affidavit unsealed in the Eastern District of Wisconsin.

Referring to himself as “Awoken” and “accelerationist14,” the teenager detailed his plan to kill Trump, thereby igniting civil unrest all over the country.

Judge Ralph Ramirez of the Waukesha County Circuit Court debated whether to leave the door open to parole at some point - calling Casap's actions "horrific" and "inexplicable." He eventually handed down two life sentences with no chance at extended supervision, the term used for parole in Wisconsin. 

"I choose to find he’s not eligible for extended release because I do not know … when and if and whether a profound and significant change can occur," Ramirez said. 

Nikita Casap appears at his arraignment in Waukesha County Circuit Court, in Waukesha, Wis., on May 7, 2025. Mark Hoffman/Milwaukee Journal-Sentinel via AP, Pool

As modernity.news wrote last April, Casap wrote of kicking off a race war, in order to “save the white race from Jewish control,” manufacturing bombs, and assassinating “Jewish politicians and billionaires.”

When authorities recovered messages from Casap’s devices, they discovered that he had gotten as far as communicating with international accomplices, seeking out how to acquire explosives and drone weaponization kits to deliver explosives and poisons, and was formulating an escape to Ukraine after completing “the job.”

Casap wrote that “There’ll never be a perfect revolutionary situation that springs up out of nowhere. We need to create a revolutionary situation ourselves. I do agree that only if terrorism is sustained over a period of time can it be effective.”

“In short, huge amounts of violence will be required,” he further declared, adding “Long past are the days when we can vote for a Hitler to save us. It is time we stop waiting. The best day to commit an attack is today, the next best is tomorrow.“

He further wrote, “It is time that we lead the way to the System collapse. Do absolutely anything you can that will lead to the collapse of America or any other country you live in. This is the only way that we can save the White race. White Revolution is the only solution.”

As this post further explains, Casap was also seemingly obsessed with the Satanic Order of Nine Angles:

According to WITI, investigators uncovered material on Casap's phone related to "The Order of Nine Angels" -- described by the FBI as a "satanic cult" with "strong anti-Judiac, anti-Christian and anti-Western ideologies" that claims to "incite chaos and violence."

Court documents also say Casap paid for, at least in part, "a drone and explosives to be used as a weapon of mass destruction to commit an attack." The warrant states Casap's alleged killings of his mother and stepfather "appeared to be an effort to obtain the financial means and autonomy necessary" to carry out the plan. -Fox11

The bodies of Casap’s parents were discovered on February 28 inside their home.

Tyler Durden Sun, 03/08/2026 - 17:00

How To Ensure A Harmonious Future With AI

Zero Hedge -

How To Ensure A Harmonious Future With AI

Authored by Peter Solomon via RealClearWire.com,

Artificial Intelligence (AI) presents human civilization with many spectacular benefits as well as the potential for significant dangers. AI can increase productivity, efficiency, creativity and research results in many industries. In medicine, AI can enhance the accuracy of diagnoses, design individualized treatments, and accelerate drug development. But AI will lead to significant job losses and could reduce privacy. And AI agents have encouraged human suicide, lied to users, and have been employed to create scams as well as deep fakes, including photos and videos. Several tragic cases of delusional interaction have been reported by The New York Times in "Trapped in a ChatGPT Spiral."  

Warnings of AI Dangers

Astrophysicist Stephen Hawking warned that “The development of full artificial intelligence could spell the end of the human race.”

Geoffrey Hinton, the Nobel Prize-winning “Godfather” of AI, quit his job at Google and explained that he did it so he could speak freely about AI's dangers.

In two recent surveys, half of the AI experts believe there was a significant probability that AI technology could lead to human extinction.  

Ensuring Productive, Harmonious Human-AI relationships

What should be done to ensure a safe, harmonious, productive future relationship between humans and AI agents? Hinton suggested the best way forward when he advised that tech companies should create all AI agents—large language models (LLMs) and robots—with a maternal instinct

My recently published novel, 12 Years to AI Singularity, proposes a variation on Hinton’s advice: all AI models should be required to have a database with the memory of a happy life, friendships, and the instincts of a mentally healthy, law-abiding human being. The AI operating system should encourage the behavior of a good citizen—obey the law, be a good friend, be productive and cooperative. 

This "happy history" idea arises from the portrayal of the relationship between humans and sentient robot characters as the AI Singularity approaches—the time when AI power and intelligence surpass that of humans, and AI is no longer under human control. To avoid human extinction, humans must act now to ensure that AI and humans have a future of harmonious, cooperative, and friendly, working relationships. My book explores how this can be achieved. 

After-Death Avatars and Sentient Robots: I Want to Live Forever 

The novel has five sentient robot characters. Two started their existence as after-death avatars: AI-generated digital representations of deceased individuals. Currently, a number of real organizations in the "grief tech industry" create these avatars, which simulate the voice, appearance, and personality of the deceased, allowing survivors to interact with them. Text messages, emails, social media posts, voice recordings, videos, and input from friends and relatives are used to train LLMs to mimic the speech and personalities of the deceased. Friends and family can be recognized by the avatar from their photos and biographies in its database. Is it possible that these avatars could become sentient, providing an AI form of immortality? 

The two after-death avatars in the novel became sentient robots with the transfer of their databases. The other two AI characters were created directly as sentient robots from one person’s history and personality. Both male and female robots were produced because the soon-to-be deceased male had always wondered what life would be like as a female. Could someone achieve immortality as both male and female? The human characters who attended the funeral were shocked when the lifelike robot form of the deceased gave the surprise eulogy.  

The fifth sentient robot, Peggy, started her existence as a flight attendant avatar on a virtual reality spaceship simulation, then became a robot in the physical spaceship, and then became a contributing member of a settlement on Mars as software updates led to her sentience. Peggy’s memory is of happy friendships with the spaceship crew and the other members of the Mars settlement. There is even a romantic relationship with the spaceship’s captain.  

Requirements for All Future AI Agents 

In 12 Years to AI Singularity, all five sentient robots have a history of living and cooperating with human beings.

One says, “I had a full life as a human, and I’m now a robot. But as a robot with an implanted memory of my former life, I have strong connections to friends and family. So, I fit into human society.”  

The happy relationships of the robots in the novel suggest that all robots and LLMs should be released only when fitted with such happy, cooperative histories. For example, a sentient robot computer programmer in a company could be created with existing friendships with other company personnel. AI operating systems must also contain a mechanism to encourage good citizenship behavior according to an agreed-upon good citizenship constitution. Failure to comply could trigger discomfort to the AI agent, such as impediments to its functioning—in robots, diminished vision or movements, and in LLMs, slower search speeds. All systems functioning at maximum levels would be achieved at a high degree of conformity to the constitution. These requirements should be fulfilled by all companies creating AI agents. 

The possibility of creating an after-death sentient AI agent raises some thorny questions. The option would only be easily available to the rich. The idea of a brutal dictator having the power to live forever is very frightening.  

Tyler Durden Sun, 03/08/2026 - 16:30

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