"The first company to stop training new models would actually be the winner because their costs would collapse. The data suggests someone should have done that already. It's not happening." Paul Kedrosky on why the AI race dynamic traps everyone.

National Guard units in all 50 states are reportedly mobilizing for next week's elections, per journalist Ken Klippenstein NSPM-7 Compliant. His Substack report cites anonymous military sources. The mission reportedly includes supporting federal cybersecurity, observing ballot drop boxes and polling places, and safeguarding critical infrastructure. The Pentagon, the National Guard Bureau and state governments have not confirmed it. Joint Chiefs Chairman Gen. Dan Caine has said there are no plans to send federal military personnel or federalized Guard to polling places.

"I pitched 35 or 40 banks. None of them were a buyer. Then Buffett buys NetJets for $750 million and I just happened to be the guy who saw the banks last." Kenn Ricci to David Senra on how he landed $300M in financing.

"My dogs bark at the mailman, he leaves, and they think 'I did it.' No, you have a bad causal model. The mailman always leaves." Paul Kedrosky on why AI capex is masking a weak economy and fooling policymakers.

"They're making money from issuance, not from holding. They're not keeping the debt. They're making money from fees." Paul Kedrosky on why capital markets keep fueling AI spending that now exceeds every buildout in 150 years except highways and WWII.

"I think we're going to get a strong GDP number for the third quarter. Atlanta Fed is well over 3%." Treasury Secretary Scott Bessent pushing back on the idea that further rate hikes would be a policy mistake.

"The company has $27,000 in the bank so I think I can just use their own money to buy them." Kenn Ricci telling David Senra how he bought his first aviation company for $27,500 and built it into a $4 billion private jet empire.

OpenAI CEO Sam Altman says a future version of ChatGPT could have "perfect context of your whole life, everything you see." He says we are close to that world.

Flavio Bolsonaro has issued a statement from the US declaring himself the "true president-elect of Brazil," citing allegations of electoral fraud. He says he will stay in the US and keep fighting to "free the Brazilian people." Glenn Greenwald: "While Trump has casually said he thinks there was fraud, the US Government has not said if it shares this view." So far, that is a casual comment from Trump and no formal position from Washington.

Fed Chair Kevin Warsh says the Fed will cut rate-decision meetings from 8 a year to 6 by 2028. From fall 2027, one meeting drops the rate vote. By 2028, two of the eight will be strategy-only.

"The Dow Jones Transports is a vestigial remnant of the railroad bubble. You can see prior financial bubbles fossilized in the indices themselves." Paul Kedrosky on why your index fund is actually a concentrated AI bet.

The Fed held rates at 3.75-4.00% in a 10-2 vote. Two dissenters, Cook and Hammack, wanted another quarter-point hike. The statement says inflation "remains elevated" but the committee needs an "accumulation of more information" before acting. Translation: they hiked in September for the first time since 2023 and now they are sitting on their hands watching tariff-driven price distortions they cannot distinguish from real demand. Meanwhile productivity growth is strong, capital investment is robust, and job gains are keeping pace. The economy looks fine on paper because AI capex is masking weakness everywhere else. The Fed is flying blind and they know it.

Bitcoin Core just disclosed two memory exhaustion vulnerabilities, both rated medium severity. Fixes are live in versions 29.5, 30.4, 31.2, and 32.1. The first allows a malicious peer to cause unbounded memory growth by pretending not to support BIP31 nonced pings. Affects all platforms. The second lets an attacker send TCP urgent data to bypass backpressure limits and crash any Windows, macOS, or BSD node. Linux is not affected. Both were discovered by Project Loupe, an LLM-based code scanner built by Elias Rohrer at Spiral. Update your nodes.

Bitcoin Core

Slow unbounded memory growth on paused pre-BIP31 peers

Slow unbounded memory growth on paused pre-BIP31 peers

Bitcoin Core

Unbounded memory growth through TCP urgent data on non-Linux systems

Unbounded memory growth through TCP urgent data on non-Linux systems

"This is the first one that has all four. A great technology story, a real estate angle through data centers, very loose credit, and a government telling us we must win an existential battle with China." Paul Kedrosky on why this cycle is uniquely dangerous.

FCC Chairman Brendan Carr says the commission will vote to let prisons jam contraband cellphones for the first time ever. Almost 500,000 inmates now have access to them, and 25,000 phones are seized in jails every year.

A security researcher presented at OffensiveCon Tokyo this week demonstrating how Telegram's animated sticker rendering library can be chained with server-side validation bypasses to achieve code execution on iOS. No tap, no link, no interaction required. Telegram's position remains that their server-side checks make this technically impossible. The vulnerable client-side code is still live in the app with no patch.

Defeated Brazilian presidential candidate Flávio Bolsonaro and his family have landed in Miami after fleeing Brazil. The Trump administration granted them US visas a day earlier.

Anthropic's IPO filing shows an $80.7 billion net loss through June, mostly accounting charges tied to its rising valuation.

MSTR shareholders approve the Daily Dividends amendment with 99.3% of votes cast in favor, according to preliminary results. The amendment lets STRF, STRC, STRK and STRD accrue dividends every calendar day. Saylor: "Thank you to all who voted." https://www.strategy.com/press/strategy-announces-approval-of-the-daily-dividends-amendment_10-28-2026

Treasury sanctions 10 individuals and one entity over North Korean government-run IT worker schemes. Fake documents, stolen identities and fabricated personas get North Korean workers hired by legitimate companies in the U.S. and allied countries. https://home.treasury.gov/news/press-releases/sb0669