The White House (via OMB) strongly protests Congressional efforts within the FY 2027 NDAA to prohibit the purchase of warships from foreign shipyards. The Administration argues that these restrictions undermine national security by limiting flexibility and hindering its strategy of leveraging allied yards, such as in the 'Finland model,' to drive investment into U.S. shipbuilding capacity. This signals a significant policy shift toward integrating international partners into advanced naval construction, suggesting the Pentagon is prepared to bypass traditional domestic build requirements for future combat vessels.
A Reform Agenda for New Fed Chair Kevin Warsh
English Summary
The article argues that the Federal Reserve requires fundamental 'regime change' to restore monetary discipline, citing the failure to control post-pandemic inflation and an excessively large balance sheet. Key reforms proposed include shrinking the Fed's assets, ending interest on reserves, and replacing discretionary policy with a transparent, rules-based framework. Implementing these structural changes is critical for insulating the central bank from political interference and preventing future inflationary excesses driven by fiscal dominance.
中文摘要
本文主張，聯準會（Federal Reserve）必須進行根本性的「體制變革」，才能恢復貨幣紀律。文章指出，聯準會未能控制疫情後的通膨，以及其資產負債表過度膨脹，是主要問題。提出的關鍵改革包括縮減聯準會的資產、終止準備金利息，並將可自由裁量的政策轉變為透明、基於規則的框架。實施這些結構性變革，對於將中央銀行與政治干預隔離開來，並防止未來因財政主導而導致的通膨過度，至關重要。
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The Western Pacific remains a highly active theater defined by sustained U.S.-led military exercises and escalating great power competition. Key evidence includes continuous joint operations, such as RIMPAC 2026 in Hawaii and the deployment of CSGs into the South China Sea, juxtaposed with increased naval activity from both China (PLAN task groups) and Russia near Japan's critical straits. These movements underscore a strategic push by non-allied powers to assert presence and challenge regional norms. Policy implications dictate that allied nations must maintain robust multilateral cooperation and interoperability to safeguard freedom of navigation and manage escalating tensions in the Indo-Pacific.
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The article argues that the post-Cold War era of U.S. unipolarity, established by the perceived invincibility demonstrated during the Gulf War, has ended. This decline is driven by globalization and technological diffusion, which have democratized advanced military capabilities, allowing regional actors to challenge major powers. Consequently, policymakers must prepare for a more volatile international order marked by frequent crises, heightened costs for securing global trade chokepoints, and reduced predictability from American power. The new rules dictate that great powers can no longer effortlessly impose their will through force.
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The article argues that current market borrowing costs are rising independently of the Federal Reserve's policy stance, challenging the assumption that the Fed controls all rates. Evidence shows significant increases in key rates—such as 2-year Treasuries and mortgages—even while the effective federal funds rate remains steady. This divergence occurs because market rates reflect complex factors like inflation expectations, credit risk, and geopolitical volatility, which are outside the central bank's direct control. Policymakers should therefore recognize that sustainable rate moderation requires credible disinflation and disciplined government budgets, rather than relying solely on Fed intervention.
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Mini cities are temporary, child-run educational models—originating in Germany and Austria—that simulate real civic life by having children manage businesses, elect officials, pay taxes, and handle legal disputes. The core argument is that these hands-on experiences provide a superior learning environment compared to conventional schooling because children learn through the natural consequences of their actions rather than abstract grades. Policy implications suggest expanding this model from temporary summer programs into permanent, year-round structures that blur the line between play and real economic activity, potentially serving as a comprehensive 'launching pad' for future adult careers.