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Authored by David Solway via The Epoch Times,

There was a time when politics occupied only a compartment of life.

A citizen might vote, follow public affairs, argue over taxes or foreign policy and then return to the ordinary business of living: work, worship, family, literature, music, sport, conviviality.

This older balance has been upended.

Politics no longer confines itself to government or elections; it increasingly permeates entertainment, education, business, sport, language—even private conscience. As I noted in my recent column about the “apolitical man,” today we inhabit a culture in which nearly every institution demands ideological participation, and where even silence or indifference may be interpreted as a political act.

The issue runs deeper than ordinary political disagreement. We are living through the gradual disappearance of non-political life itself. Today virtually everything arrives freighted with ideological significance. Everything must justify itself politically before it can simply exist.

As the great American political philosopher Harvey Mansfield observed in “The Rise and Fall of Rational Control,” modern society is crowded with instruments of state control “from the most trivial to the most coercive,” apparently to save us the inconvenience of thinking for ourselves. Yet these are also intrusions into privacy, exerting supervision and pressure over life and conduct. The modern political state no longer merely governs society; it increasingly seeks to furnish society’s entire meaning.

Polish philosopher Ryszard Legutko, having lived under both communism and liberal democracy, recognized the unsettling similarities between these ostensibly opposed systems. In “The Demon in Democracy,” Legutko argued that both systems tend toward ideological conformity and both believe themselves liberated from the obligations of history. The civilized past survives largely as maquillage—a decorative paste applied to glamorize a grubby political machine.

The result is what early 19th-century French political philosopher Alexis de Tocqueville foresaw in “Democracy in America”: a “network of small complicated rules, minute and uniform,” through which individuality is gradually softened, bent and guided into conformity.

De Tocqueville understood that democratic societies might drift not toward overt tyranny but toward a condition of permanent tutelage, in which citizens become increasingly dependent upon administrative systems regulating everyday life.

This tendency now permeates nearly every aspect of Western civilization. The quality of feeling itself has become political. Comedy is judged according to ideological criteria before anyone asks whether it is funny. Art becomes activism. Sport becomes moral theatre. Education concerns political formation rather than learning. Even the patent absurdities of wokism often fail to provoke laughter because they arrive stamped with a political brand.

The modern state increasingly treats culture not as an independent civilizational inheritance deserving protection but as raw material to be supervised, corrected, and ideologically aligned. The old pastoral ideal of the fulfilled and self-reliant individual citizen gradually gives way to the therapeutic subject: managed, supervised, controlled, yet perpetually assured of her freedom in “our democracy.”

One recalls the now-scrubbed World Economic Forum slogan: “You will own nothing and you will be happy.” This is the figment of the old apolitical man falsely wedded to the state. Dependency is rebranded as liberation. Administrative management becomes therapeutic care. The happiness of the classical apolitical man has been transformed into the imposed satisfaction of the political man.

The Russian theological philosopher Nikolai Berdyaev warned of this tendency in “The Destiny of Man” when he described the modern state’s willingness to sacrifice freedom—with its innate acceptance of risk and the possibility of failure—for the illusion of perfection. Once politics assumes responsibility for constructing moral meaning itself, there can be no genuine limit to state control. Every sphere of life becomes potentially political because every sphere may contribute either to ideological conformity or ideological dissent.

Meanwhile, the civilized inheritance sustaining the West steadily weakens. Our governing classes inhabit the architectural husk of antiquity while possessing little connection to the civilization that produced it. They have never read Plato or Cicero, scarcely know Virgil exists, and treat history largely as an embarrassment or political inconvenience. The shimmer of potentiality embodied in the classical world has been damped; the larger vista of human achievement increasingly redacted.

Yet not all is lost.

Churches, local associations, independent journals, small enterprises, and serious works of culture still preserve fragments of the civilization that politics alone cannot sustain. These “apolitical forces” remind us that human beings cannot live entirely within ideological systems without becoming spiritually diminished.

A civilization survives only when there remain spheres of life politics cannot wholly absorb. Once politics becomes everything, civilization itself begins to disappear.

While it may seem like every government these days - not just Emerging but certainly all Developing countries too - has become a banana republic in light of the increasingly more idiotic fiscal and monetary policies adopted to kick the can at least until the next election, nobody is quite as cartoonish as Japan, the place where all modern-day central bank experiments started in the late 1980s.

While on one hand the Japanese finance ministry and Bank of Japan have, in recent days and over the years, engaged in aggressive currency day trading, where they try to avoid a collapse in the yen by purchasing the currency in exchange for reserves such as US dollars, on the other hand, the same authorities have been, for the past 3 decades, been engaging in unlimited yen printing through perpetual QE (which despite the country's soaring inflation and collapsing currency, goes on to this day even though Japan's Yield Curve Control is taking a short break). End result: between the selling and buying of yen, the only thing Japanese officials have achieved is becoming the laughing stock of the world. Meanwhile, Japanese bond yields have exploded to multi-decade, if not record highs, as we showed last night.

One reason, besides all the other "usual suspects" such as soaring energy import costs, an grotesque inability to hike rates and contain inflation, not to mention relentless capital flight, is that as Reuters reported overnight, Japan's government is likely to issue even more debt as part of funding for a planned extra budget to cushion ?the economic blow from the Middle East war.

Of course, any additional debt issuance would further strain Japan's ?already worsening finances and may accelerate rises in long-term interest rates. Actually, better make that "will" accelerate: the report pushed the yield on the benchmark 10-year Japanese government bond (JGB) to 2.8% on Monday, its highest since October 1996, and the 30-year yield to a record top.

On Monday, Prime Minister Sanae Takaichi said she had told Finance Minister Satsuki Katayama last week to start work on compiling a supplementary budget, a rather dramatic shift from previous remarks ruling out the chance of an extra budget.

The extra budget will focus on ?funding government subsidies to curb gasoline and utility bills, as surging oil prices caused by the Middle East conflict cloud the outlook for an economy heavily reliant on fuel imports ?from the region.

While the size of spending has yet to be worked out, the decision could cast doubt on the administration's laughable pledge to pursue a "responsible, proactive" ?fiscal policy. Spoiler alert: there is no "responsible" fiscal policy when your debt/GDP is over 200%. You can only hope for a peaceful death.

And the market was quick to react. 

"The about-face by Takaichi, who had been ruling out an extra budget all along, is making markets jittery and triggering a JGB selloff across the curve," said Katsutoshi Inadome, senior strategist at ?Sumitomo Mitsui Trust Asset Management.

In a proposal to the finance ministry, opposition party leader Yuichiro Tamaki called on Friday for an extra budget of about 3 trillion yen ($18.9 billion), which may serve as a benchmark ?for future debates on the size of spending.

"There's a host of reason to sell JGBs but very few to buy," Inadome said, adding that markets are starting to price in the chance of an extra budget to the scale of 5 trillion-to-10 trillion yen.

Finance minister Katayama, who is in Paris to attend the Group of Seven finance leaders' gathering, said on Monday she was instructed by the prime minister to "minimise various risks," when asked about the rise in long-term ?interest rates. 

"That's something I'm contemplating," Katayama said when asked how the government would fund the extra budget. She did not elaborate.

Japan already curbs gasoline prices with subsidies and eyes tapping existing funds to revive ?subsidies for utility bills (which of course means no demand destruction due to artificially low prices, but instead the massive new debt needed to subsidize said spending, will instead translate into state and sovereign destruction). An extra budget would come on top of a record 122-trillion-yen budget for the fiscal year that began in April, which makes up the core of the dovish premier's expansionary fiscal policy.

Critics warn that ?more spending plans, ?coupled with slow interest rate hikes by the Bank of Japan, could fan inflationary pressure in an economy already seeing rising energy costs from the Middle East war and higher import prices from a weak yen.

Japan's Nikkei stock average fell on Monday and the yen hit 158.97 per dollar, the weakest level since April 29, and it's about to explode even higher once the marker realizes the sheer idiocy of selling dollars to buy yen on one hand, and then turning around and doing QE - i.e., printing yen - to absorb all the new massive debt issuance about to hit a bond market where the BOJ has long since become a 50% holder of all JGBs and the marginal price setter. 

"When countries like Japan and Britain contemplate fiscal stimulus, there's a tendency for that to trigger a triple selling of shares, currencies, and bonds because their economic growth is weak and inflationary risks are high," said Daisuke Uno, chief strategist at Sumitomo Mitsui Banking.

The extra budget will be compiled around June ?or July, when the administration will lay out ?plans to boost investment and details for a ?two-year freeze on an 8% levy on food.

Reuters tongue-in-cheekly adds that "the bond selloff would also complicate the BOJ's decision on whether to raise its short-term policy rate to 1% from 0.75% at its next meeting in June." Uhm, no, it wouldn't complicate it - it would make it an absolute farce as the last thing Japan needs if it is to sell even more debt, is higher rates. But then Tokyo better brace for a yen at 200 vs the dollar, unless the MOF is prepared to liquidate all of its USD-denominated reserves in an absolutely idiotic attempt to keep the yen from collapsing. 

At the June meeting, the BOJ will also review its existing bond tapering programme ?and unveil a new plan for fiscal 2027 onward.

The war-induced spike in energy prices, coupled with rising import costs from the collapsing yen, pushed Japan's wholesale ?inflation to a three-year high ?of 4.9% in April, bolstering the case for the central bank to raise rates as soon as next month.

While the BOJ tends to avoid shifting policy when markets are volatile, delaying rate hikes further could stoke already mounting fears it is behind the curve in addressing the risk of too-high inflation, analysts say. On the other hand, raising rates could spark an even more aggressive selloff across the curve, resulting in both a bond and FX market failure. Oops. 

Markets have priced in roughly a 70% chance of a June rate hike after a slew of recent hawkish signals from ?the BOJ ?and a split vote to the BOJ's decision to keep rates steady in April. Nearly two-thirds of economists polled by Reuters expect the ?BOJ to raise rates in June.

"If inflationary risks heighten, there's a chance the BOJ could raise short-term rates to 1.5% by the March end of the current fiscal year," said Mari Iwashita, executive rates strategist at Nomura Securities. The 10-year yield could ?head towards 3%, she added.

Via The Cradle

The UAE paid New York-based reputation management firm Terakeet more than $6 million to bury a 2017 report revealing that the Emirati ambassador to Washington, Yousef al-Otaiba, had ties to sex workers and traffickers, according to a New York Times (NYT) report published on Sunday.

The campaign was designed to push the Intercept report out of public sight on Google search results. According to Foreign Agents Registration Act records cited by the paper, Terakeet's work for the UAE began in July 2019 and continues today.

Much of the account focused on promoting tourism in the UAE, but NYT reported that Terakeet’s work also extended to suppressing the damaging Otaiba report. Otaiba declined to comment beyond confirming that Terakeet has worked for the UAE.

The effort was kept off paper, with account manager Kenneth Schiefer moving to Washington for more than a year to work directly with Otaiba at the UAE embassy, avoiding a trail of emails or text messages.

The reputation firm had built a personal website for Otaiba, planted favorable leadership profiles on institutional pages tied to him, and fed those profiles links to UAE-friendly blogs written by Terakeet staff. The firm also used an anonymous Wikipedia editor handle, VentureKit, to create a fake sockpuppet account, Quorum816, and add positive material to Otaiba’s page. Wikipedia reversed the edits and suspended both accounts in 2021.

The campaign succeeded, and by 2023, the Intercept story had been pushed to page two of Google results. NYT reported that today, it appears on around page five for most users.

The UAE account formed part of a wider investigation into Terakeet's reputation-cleaning business for powerful figures and major corporations with damaging public records. The firm’s client list has included MetLife, JPMorgan Chase, Oracle, Target, Walmart, Disney, and Bain Capital, according to NYT.

Terakeet later tried to scrub the online image of Goldman Sachs general counsel Kathryn Ruemmler after her relationship with convicted sex offender Jeffrey Epstein became a public liability.

???? The New York Times reports that the UAE paid more than $6 million to the reputation management firm Terakeet between 2020 and 2022 to manipulate Google search results and suppress damaging reporting by Drop Site co-founder Ryan Grim, then at The Intercept, about Emirati… pic.twitter.com/gHRcCZ0HhC

— Drop Site (@DropSiteNews) May 18, 2026

The effort intensified after Justice Department files showed Ruemmler's name appeared in more than 10,000 Epstein-related documents, including exchanges in which she discussed travel with Epstein, thanked him for lavish gifts, and offered him legal advice.

Terakeet also worked for Vista Equity Partners chief executive Robert F. Smith, who signed a 2020 non-prosecution agreement acknowledging that he had “engaged in an illegal scheme to conceal income and evade taxes” between 2000 and 2015.

Terakeet chief executive Mac Cummings defended the firm’s model, saying "Terakeet’s technology is built on a simple mandate: organizations must tell their own story."

Drop Site News reported in January that Jeffrey Epstein's close relationship with DP World chief Sultan Ahmed bin Sulayem helped foster UAE-Israel economic and security ties that later fed into the Abraham Accords.

Here’s the 2017 Intercept report: https://t.co/FV6gBQvDrl

— Drop Site (@DropSiteNews) May 18, 2026

The report says Epstein arranged meetings between Sulayem and former Israeli prime minister Ehud Barak, helped channel Emirati investment into Israeli firms, and maintained contact with Sulayem until his 2019 arrest on sex trafficking charges.

Submitted by Maryland Freedom Caucus,

President Donald Trump is demanding immediate action from the Department of Justice over Maryland's exploding mail-in ballot scandal, and he's not mincing words.

In a Truth Social post on Monday, Trump slammed the fiasco:

 "In Maryland, they sent out 500,000 Illegal Mail In Ballots, and they got caught! So now, they're going to send out 500,000 more Mail In Ballots, but nobody knows what's happening with the first 500,000 they sent. … I'm going to ask the Attorney General of the United States, and the DOJ, to bring an immediate investigation into this situation."

The Maryland State Board of Elections admitted late last week that a third-party vendor printed and mailed roughly 400,000 ballots for the June 23 gubernatorial primary, with an undetermined number of voters receiving the wrong party's candidates. Because officials cannot tell exactly who received the flawed ballots, they are re-mailing replacements to every voter who requested one before May 14. However, the original ballots remain in circulation.

The Maryland Freedom Caucus was first out of the gate. On May 16, we issued a press release exposing the crisis, demanding that Jared DeMarinis release Maryland's voter rolls for a federal audit, and warning that "400,000 double ballots in circulation" threaten the fundamental principle of one vote, one person.

To restore faith in Maryland's electoral process, decisive action is necessary. We must release the voter rolls to the federal government to allow for a thorough audit into the reported issuance of 400,000 incorrect ballots. pic.twitter.com/39PJlDyKiN

— Maryland Freedom Caucus (@MDFreedomCaucus) May 16, 2026

This is not an isolated glitch. Last fall, the Maryland Freedom Caucus and our partners at Secure the Vote MD blew the lid off the Ian Roberts case — an illegal alien from Guyana who was registered to vote in Maryland for years, requested absentee ballots, and remained on the active rolls even after his arrest. That single case proved what we've warned for years: Maryland's voter rolls are bloated with non-citizens, deceased voters, and people who no longer live here.

Worse, when the DOJ requested Maryland's full voter registration data last year, the State Board of Elections stonewalled. Administrator DeMarinis specifically asked whether the list would be used for immigration enforcement before providing anything meaningful - a clear admission that transparency threatens their continued subterfuge.

BREAKING: Another Maryland Man controversy!

Have you heard the story of Ian Andre Roberts, the Superintendent for Des Moines Public Schools? He was arrested late last week for a standing deportation order. Turns out, he is actively registered to vote in Maryland, despite being… pic.twitter.com/T7XlAobQ6O

— Maryland Freedom Caucus (@MDFreedomCaucus) September 29, 2025

President Trump's call for a DOJ investigation is the national spotlight this scandal desperately needs. Permanent, no-excuse mail-in voting was sold as "convenient and secure." In reality, it has become a black box that erodes public trust and invites chaos, exactly as the Maryland Freedom Caucus has warned.

But calls for investigation without an immediate remedy will not restore Marylanders' confidence in their elections. Governor Wes Moore must immediately issue an executive order to restore strict chain-of-custody controls: end the use of unmonitored drop boxes, suspend the use of USPS for local delivery, require that all marked ballots be returned directly to a local Board of Elections office, and implement real-time logging so every ballot can be tracked from voter to canvass.

Wayfair CFO Kate Gulliver appeared at JPMorgan's conference Monday morning in a discussion with the bank's retail analyst, Christopher Horvers.

What caught our attention in the 35-minute conversation, which ranged from the online home-goods retailer's financial position to broader consumer trends, was Gulliver's outlook on home goods and housing markets.

A more active housing market typically drives demand for big-ticket home purchases such as sofas, tables, and other furnishings sold on Wayfair's online platform.

However, her forecast for the remainder of the year was decidedly muted, a gloomy outlook that may leave realtors and mortgage brokers uneasy.

Horvers asked Gulliver about the home goods and housing markets, including whether she was worried about soaring energy prices, the post-stimulus era, and how those factors could affect consumer demand for home goods over the rest of the year.

Her outlook for the rest of the year was not great. She noted that the home goods category "has not been a tailwind for us."

"At some point, this cyclical category will recover, but our expectations for 2026 and our guidance for the second quarter do not assume any category recovery. Our operating assumption for 2026 is that the category stays where it is," Gulliver explained.

Gulliver's dismal view of the home goods and housing markets for the rest of the year offers valuable insight because Wayfair is one of the largest online home-furnishings platforms in the U.S.

Much of Wayfair's consumer base consists of millennials and Gen Xers in the household-formation cycle, including raising a family, buying a home, or moving into a larger residence, all of which drive demand for furniture and such.

This muted activity she observes and forecasts also comes as the 30-year mortgage rate is back around 6.5%, up roughly 35 basis points from when the U.S.-Iran conflict began in late February.

Related:

• Most Americans Can't Afford New Homes

• Home Prices Register Biggest Annual Increase In More Than A Year: Report

• The Frozen Market For Homes

Gulliver's view serves as a proxy for the housing market. Her comments this morning offer no relief for the struggling realtors and mortgage brokers over the last several years.

Also to note, rate markets are pricing in hikes next year as energy inflation from the Hormuz chokepoint disruption pushes up inflation expectations and TSY yields soar.

Authored by MN Gordon via Economic Prism,

Does your American dream feel like it’s being put through a hydraulic press?

If so, you’re not alone. Between rising rent and gas prices, escalating grocery bills, and sky-high health insurance premiums, Americans are feeling a relentless squeeze from all directions. That’s the painful reality.

Recent economic numbers point to a weary consumer. In fact, consumer sentiment is at a 74-year low. To put that in perspective, Americans feel more pessimistic about the economy today than they did during the 2008 financial crisis, the stagflation of the 1970s, or the height of the 2020 lockdowns.

What’s going on?

Why does it feel like your paycheck is evaporating before it even hits your bank account, while the S&P 500 is hitting record highs over 7,400?

The answer has to do with the K-shaped reality of 2026.

For years, economists have tried to gaslight American workers and consumers. They blamed social media and partisanship. They reasoned that if your preferred politician isn’t occupying the White House, you complain a bit more to a pollster.

Several years ago, Kyla Scanton coined the term “vibecession” to describe a situation where the data looks fine on paper, but people feel bad in their souls. But what about when the data looks bad on paper?

Heather Long, chief economist at Navy Federal Credit Union, recently pointed out today’s reality. The vibes have officially been replaced by cold, hard financial pain. When the University of Michigan sentiment reading drops to 49.8, it’s not just because people are grumpy on Twitter. It’s because the cost of basic survival has outpaced the ability to pay for it.

What’s more, as middleclass families drown in debt, the wealthy flourish. This creates a highly visible divide that presages social instability.

A Tale of Two Americas

The fact is you likely took a pay cut last month. Even if your boss gave you a 3 percent raise this year, you’re still losing ground. With inflation rising at an annual rate of 3.8 percent, per this week’s CPI report for April, your real wages are in the red. Thanks to the U.S.-Israeli war in Iran the energy component of the CPI is increasing at an annual rate of 17.9 percent.

When consumer prices rise faster than your income, that’s not a vibe. That’s the real time erosion of your income. And this is just the beginning…

Joseph Brusuelas, chief economist at RSM, warns that as the supply shocks from the Middle East filter through the system, May is going to be even worse. We are essentially footing the bill for global conflicts through higher prices.

Yet the effects of inflation are felt differently throughout the economy. Those in the higher income brackets are benefiting from an inflating stock market. Retail sales are up 4 percent year over year. So, too, Disney recently confirmed that its domestic park bookings and cruise reservations remain strong through the second half of 2026.

Then there are those in the middle- and lower-income brackets who can’t keep up. They don’t own stocks. They don’t own a house with a 3 percent mortgage. For this group, personal loan applications are spiking. Credit card debt is at an all-time high. They’re also being forced out of their cars and onto the bus because they literally can’t afford the commute.

These diverging stories are both true. This is the tale of the K-shaped economy.

The top line of the K is heading toward the moon. These are the households earning $150,000 or more. For them, the squeeze is a gentle love pat. Their homes have skyrocketed in value, and their stock portfolios are thriving as the S&P 500 bubbles up.

The bottom line of the K, however, is a steep slide downward. This represents the bottom 50 percent of the income distribution. For these families, the resilience everyone has talked about for the last few years has finally hit a wall.

Quiet Desperation

When wages don’t cover the bills, people don’t stop eating. They reach for the plastic. Hence, there’s been a massive increase in people turning to personal loans and credit cards just to make it from one Friday to the next.

This is the latent phase of a recession. It doesn’t show up in the unemployment numbers (which are still a steady 4.3 percent) or the payroll data (115,000 jobs added in April). It shows up in the quiet desperation of an ascending balance on a 24 percent interest credit card.

When people finally get to the end of their credit card rope, we enter the demand destruction phase. This is when people are too broke to buy stuff. Lower-income households are forced to cut back on gasoline and non-essential spending.

There’s also a big picture issue coming into focus that Mohamed El-Erian, chief economic advisor at Allianz, has zoomed in on. Specifically, labor’s share of GDP has hit its lowest level in BLS history.

What that means is that of all the wealth being generated in the USA, a smaller and smaller piece of the pie is going to the people who actually do the work. In other words, more and more of the economy’s capital is being directed to the people who own the stocks, land, and the companies.

This is why the stock market is hitting record highs while the average worker feels like they’re drowning. The market likes muted wage growth because it means companies keep more profit. But for the person trying to pay rent, muted wage growth is a disaster.

Beyond the Siren

Regardless of whether the economy enters a full-blown recession, a large segment of workers and consumers are suffering a painful squeeze. For those being squeezed it adds insult to see people booking luxury cruises when they’re having to choose between buying gas or buying groceries.

As households max out their credit cards, we can expect to see a wave of defaults. If this persists, the banks may get nervous and tighten credit. This will make it even harder for the bottom half to get the loans they need to survive.

Also, with the cost of living so high, middle-class families are raiding their 401(k)s or stopping contributions altogether. People are trading their future security for today’s gas and bread.

The American worker and consumer have proved to be resilient over many years. They persevered through pandemic lockdowns, supply chain meltdowns, and years of inflation. But even the strongest rubber band snaps if you stretch it far enough.

The current sentiment data isn’t a vibe. It’s a warning siren. While the top earners continue to power the retail numbers and fill up the Disney parks, the foundation of the economy – the working and middle class – is being hollowed out by a combination of geopolitical shocks and a declining share of the nation’s wealth.

Until wages outpace the cost of a gallon of gas and a bag of groceries, the American consumer will continue to get squeezed. Alas, there appears to be no relief on the horizon.

With the Strait of Hormuz effectively shuttered, this squeeze will only intensify. As global energy flows cease, surging crude prices will inevitably bleed into your grocery bill. From the diesel powering delivery trucks to the fertilizers growing our crops, the cost of survival is headed for a painful, sustained peak.

*  *  *

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