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Friday, July 11, 2025

Navigating Wealth in a World of Chaos: Understanding the Chaostan Model

By Tim Gamble
Note: This is an updated version of an earlier essay, reprinted to shed light on geopolitics and its impact on building personal and generational wealth.
Mental models shape how we understand the world and guide our decision-making. The better our mental models, the sounder our judgments. Military strategist John Boyd emphasized that in any conflict, victory goes not to the side with the most information, but to the one with the best understanding of the information at hand. This principle applies not only to warfare but also to navigating the complex world of geopolitics and wealth-building.The Chaostan Model: A Lens for Geopolitical ClarityEconomist and historian Richard J. Maybury’s Chaostan model offers a powerful framework for understanding global dynamics. Chaostan, meaning "land of chaos," refers to a vast swath of the world marked by political and economic instability, limited personal and economic freedom, and a lack of common (natural) law. These regions—spanning roughly 100 nations, including much of the former Soviet Union, Eastern Europe, Asia, the Middle East, and Africa—are often defined by tribal loyalties, ethnic divisions, and religious sects that overshadow allegiance to modern nation-states. (For more info, visit the Chaostan website.)Chaostan covers about one-third of the world’s land surface and holds a disproportionate share of its natural resources: at least 80% of global oil, 50% of coal, and the majority of rare earth metals critical to technology and the green economy. It’s also rich in natural gas, gold, silver, platinum, copper, tin, iron, zinc, timber, and grain—resources that underpin industrialized civilization. This gives Chaostan outsized influence over Western economies.Yet, despite this abundance, Chaostan’s people are often among the world’s poorest. While ruling elites amass vast wealth, the average citizen suffers from limited education and a lack of economic liberty and personal property rights—core pillars of prosperity.The Lands of Liberty: A ContrastMaybury contrasts Chaostan with the “Lands of Liberty,” nations with established traditions of economic freedom, property rights, and loyalty to nation-states over tribal or sectarian divides. These include the USA, Canada, Australia, New Zealand, Japan, Hong Kong, the UK, Ireland, and most of Western Europe. Here, domestic peace and prosperity prevail. Central and South America fall somewhere in between, their future direction uncertain.Why Chaostan Matters for Wealth-BuildingThe stark differences between Chaostan and the Lands of Liberty create tension and misunderstanding. Chaostan’s people often harbor resentment toward the West, fueled by religious differences, wealth disparities and historical grievances. Meanwhile, Westerners may view Chaostan as backward or threatening. Ignoring these differences—or worse, pretending both systems are morally equivalent—is a mistake.
The Lands of Liberty, despite imperfections, have demonstrably superior systems. Their domestic stability, economic success, and respect for human rights stand in sharp contrast to Chaostan’s chaos. However, imposing Western values on Chaostan through force, such as nation-building, is futile. Chaostan’s worldview and cultural foundations differ too fundamentally to be reshaped externally.
Yet, the West must protect itself from Chaostan’s threats. This includes controlling immigration, ensuring that newcomers from Chaostan assimilate into Western values, and rejecting accommodations like Sharia law that undermine our system. It also means preventing unstable regimes, like North Korea or Iran, from developing nuclear capabilities, as their lack of responsible governance makes them inherently aggressive.Interdependence and the Clash of CivilizationsIsolating from Chaostan isn’t an option. The West relies on its resources, while Chaostan needs Western markets, technology, medicine, and education. Decades of lax immigration policies have also brought millions from Chaostan to the West, often without requiring assimilation, creating internal cultural tensions.This dynamic fuels a broader clash of civilizations. Most global hotspots—wars, violence, poverty—stem from Chaostan’s lack of liberty, property rights, and stable governance, compounded by tribal and sectarian divides. The refusal of some Chaostan immigrants to integrate into Western societies further exacerbates these conflicts.A Warning for the WestChaostan serves as a cautionary tale for the Lands of Liberty. If we abandon personal and economic freedom, property rights, and our Judeo-Christian heritage in favor of collectivism, socialism, or enforced ideological conformity, we risk descending into chaos ourselves. The West’s current trajectory—toward centralized control and eroded freedoms—suggests this danger is real.Building Wealth Amid ChaosFor those seeking to build personal and generational wealth, the Chaostan model offers critical insights:
  • Resource Dependence: The West’s reliance on Chaostan’s resources means geopolitical instability can disrupt markets. Diversify investments to hedge against supply chain risks.
  • Cultural Awareness: Understand the cultural and ideological divides driving global conflicts to anticipate risks and opportunities in international markets.
  • Preserving Liberty: Protect the principles of economic freedom and personal property rights in your own country, as they are the foundation of lasting wealth.
  • Resilience: Build financial and personal resilience to withstand the chaos that may spill over from global hotspots or internal cultural shifts.
Credit and Further ReadingI owe full credit to Richard J. Maybury for the Chaostan concept. This article summarizes his geopolitical theory as I understand it. I do not in any way speak on his behalf. For more details, visit his website.Maybury’s “Uncle Eric Books” are an excellent resource for understanding economics, law, history, and personal finance. I especially recommend:
By understanding the Chaostan model, you can better navigate the complexities of our world, protect your wealth, and seize opportunities amidst the chaos.
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Thursday, July 3, 2025

ADP vs. BLS Jobs Reports: Decoding the June 2025 Disparity

By Tim Gamble (with an assist by Grok, created by xAI)

The labor market is a chaotic beast, and two key reports — the ADP National Employment Report and the U.S. Department of Labor’s Employment Situation Report — often paint conflicting pictures. In June 2025, ADP reported a loss of 33,000 private-sector jobs, while the BLS announced a gain of 147,000 total nonfarm jobs. Why the stark difference? Understanding these reports is critical for investors navigating economic uncertainty. Here’s a breakdown of their differences and what drove the June 2025 divergence.


Why the Numbers Clash


The ADP and BLS reports measure employment differently, leading to frequent disparities. Here’s how they differ:


ADP:

    • Uses real-time payroll data from 25 million employees across 460,000 businesses using ADP’s services, covering only private-sector jobs.
    • Excludes government jobs, gig workers, and small businesses not using ADP. It focuses on private-sector trends.
    • Aggregates actual payroll transactions, offering a granular, high-frequency snapshot but limited to ADP’s client base.

BLS:

    • Relies on surveys, with the Current Employment Statistics (CES) survey sampling 119,000 businesses and government agencies, including public-sector jobs.
    • Captures both private (74,000 jobs added in June 2025) and government jobs (73,000 added, driven by state and local hiring).
    • Uses sample-based surveys, adjusts for seasonality, and revises data over time, which can lead to initial inaccuracies.

What Happened in June 2025?


The ADP’s reported loss of 33,000 jobs contrasted sharply with the BLS’s gain of 147,000. Key factors explain this:

  • The BLS reported 73,000 new government jobs, particularly in education, which ADP doesn’t track, accounting for much of the total gain.
  • ADP showed losses in professional services (-56,000) and healthcare/education (-52,000), while BLS reported gains in healthcare (+39,000) and construction (+15,000).
  • ADP noted hiring hesitancy due to uncertainty, possibly tied to policy changes like tariffs. BLS’s broader sample suggested resilience.
  • ADP’s data reflects its client base, which may underrepresent small businesses, while BLS’s survey-based approach can overestimate initially but is revised later.

Takeaways for Investors


The ADP report offers a timely, private-sector pulse, while the BLS provides a comprehensive view, including unemployment (4.1% in June 2025) and government jobs at all levels. Their frequent divergence highlights the labor market’s complexity. For clarity, cross-reference with indicators like jobless claims or JOLTS data. In June 2025, the BLS suggests a cooling but robust market, while ADP flags caution in private hiring. Use both to navigate the chaos and inform your wealth-building strategy.


Takeaways for Workers


For workers, these reports highlight a solid but perhaps softening jobs market, particularly in certain areas (federal government, professional services, middle management). On the other hand, state and local governments appear to be hiring, as well as the healthcare, construction, and AI/coding-related sectors. Best recommendations for workers is to stay informed, upskill, and prepare for uncertainty.


Related Articles

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You're Fired. Now What?

By Tim Gamble
You’ve been laid off, downsized, restructured, or “let go.” It hurts, especially in today’s shaky economy, with job losses like the 33,000 reported by ADP in June 2025. But you can bounce back. Here’s how to find your next job, even in chaos.
1. Work Your Network
Most jobs come through personal connections, not job boards. Email or call friends, family, former colleagues, and industry contacts. Update your LinkedIn profile and ask, “Know anyone hiring?” Don’t hide your job loss — openness sparks opportunities.

2. Balance Online and Offline Tools
Use Indeed or LinkedIn, but don’t let them consume you. Optimize your profiles with industry keywords, but prioritize networking events or local meetups to build real connections.

3. Tap Into Resources
Check CareerOneStop, sponsored by the U.S. Dept. of Labor, for job fairs or retraining programs. Community colleges offer low-cost courses, resume help, and skills assessments for all. If you’re a college grad, your alma mater’s career office can connect you to alumni job boards.

4. Stay Flexible and Resilient
Take temp or part-time work to stay afloat (check state rules on unemployment benefits). 
Don’t hold out for the perfect job; a stepping stone now keeps you moving forward. Explore trades; programs like mikeroweWORKS highlight shortages in skilled trades. 

5. Keep Going
Losing a job isn’t the end. Update your resume, reach out to one contact, or explore a new skill today. What’s your next step? Share your job-hunting tips in the comments!

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 Lost your job? Now’s the perfect time to pivot to a high-demand tech career. Code: The Hidden Language of Computer Hardware and Software by Charles Petzold is the ideal starting point for beginners. This acclaimed book breaks down coding and computer fundamentals in a clear, engaging way, empowering you to build skills for a future-proof career in tech. Whether you’re eyeing programming, AI, or IT, this is your first step. Get your copy now and start mastering tech today!
Buy it on Amazon (currently 23% off).