America
Pentagon’s 2026 strategy pivots to flexible realism and warrior spirit to counter China
The US Department of Defense has released its 2026 National Defense Strategy (NDS), outlining a pivotal shift toward “flexible realism”—a doctrine that prioritizes the protection of American interests over global “nation-building” projects.
According to the NDS, this approach is anchored by a “Trump Addendum to the Monroe Doctrine,” which prioritizes the security of the US homeland and maintains dominance over the Western Hemisphere. This document follows and reinforces the broader US National Security Strategy (NSS).
The strategy identifies China as the “primary rival” and issues a blunt demand to allies and partners: they must significantly increase their financial contributions, targeting a new spending standard of 5% of their Gross Domestic Product (GDP).
Through a “national industrial mobilization” and the “revival of the warrior spirit,” the NDS aims to deter adversaries such as Russia, Iran, and North Korea. Ultimately, the strategy seeks to achieve global stability by rebalancing military responsibilities and focusing on pragmatic security rather than idealistic foreign interventions.
America First: Rejection of “utopian idealism”
The 2026 National Defense Strategy defines “flexible realism” as a clear-eyed, common-sense approach to national security that prioritizes American interests over abstract global ideals.
Flexible realism rejects the “grand strategies” of previous administrations that conflated American interests with those of the entire world or sought to “solve all the world’s problems.” Instead, it focuses on “real, credible threats to the safety, liberty, and prosperity of Americans,” acknowledging that threats to the US homeland are more visceral and significant than those in distant regions.
The NDS explicitly contrasts flexible realism with “castles in the clouds” abstractions like “utopian idealism” and the “rules-based international order.” It declares an end to goals such as regime change, “endless wars,” and “grand nation-building projects,” replacing them with a “hard-headed realism” designed to achieve a “noble and proud peace.”
According to the Pentagon, this approach requires a pragmatic correlation between resources and objectives. The NDS acknowledges that the US “cannot act everywhere alone” and cannot solve every global problem; it calls for the military to “evaluate, rank, and prioritize” threats based on their severity.
In practice, flexible realism aims for a “resilient and sustainable balance of power” rather than total global hegemony. Regarding China, for instance, the strategy seeks a “reasonable peace” and a balance of power that prevents Chinese dominance over the US, explicitly stating that this goal does not require “regime change or another existential struggle.”
The document contends that this approach “does not mean isolationism.” On the contrary, it envisions a “focused and truly strategic approach” where the US acts globally to advance its practical interests—particularly alongside allies—while insisting that those allies shoulder the primary burden of their own regional defense.
Burden sharing and defense spending
The NDS fundamentally redefines global burden-sharing, shifting alliances from a model subsidized by the US to one of “clear accountability” and self-sufficiency. It argues that allies must cease acting as “dependents” and instead function as true partners.
This “America First” approach asserts that by prioritizing US interests and demanding that allies take primary responsibility for their own security in most theaters, the US can concentrate its resources on defending the homeland and deterring China.
In this context, the strategy redefines requirements through specific financial targets, operational changes, and strategic ultimatums. These include a new global financial standard, “primary responsibility” for allies where the US acts as a supporter rather than a lead, and the prioritization of “model allies.”
For example, the US will now look to delegate the Ukraine issue to Europe, the tensions on the Korean Peninsula to South Korea, and the management of Iranian aggression in the Middle East to Israel and Gulf allies.
By compelling allies to act, the Pentagon aims to focus the US military on its two highest priorities: defending the US and deterring China in the Indo-Pacific.
The primary strategic rival: China
The NDS describes one of the “most dangerous” security environments in the nation’s history, where adversaries have grown increasingly powerful because the US failed to maintain its advantages.
Major geopolitical threats are categorized not only by state actors but also by their geographical proximity to the American homeland and the systemic risk of simultaneous conflicts.
The strategy identifies the People’s Republic of China (PRC) as the primary strategic rival. The NDS describes the PRC as “the most powerful state we have faced since the 19th century,” asserting it ranks second only to the US on a global scale.
The threat from China is defined by the “pace, scale, and quality” of its military forces, which include capabilities capable of striking targets far beyond the Western Pacific.
The Pentagon points out that the fundamental danger is not merely military, but China’s potential to dominate the Indo-Pacific region. There is significant concern that such dominance would effectively control American access to the “world’s economic center of gravity.”
Accordingly, the US goal is to maintain a balance of power to prevent China from dominating the US or its allies, seeking a “reasonable peace” rather than pursuing regime change.
The NDS approach to China is summarized as “deterring China in the Indo-Pacific through strength, not conflict.” Rather than seeking confrontation or isolation, the strategy envisions a dual approach: building robust military deterrence (“strength”) as a prerequisite for effective diplomatic and military engagement.
The document explicitly states that the US goal is not to “dominate China” or to “strangle or humiliate” it. Instead, the US will seek a “reasonable peace” characterized by a balance of power where no country can dominate another.
A message to Europe: Provide your own security
The 2026 National Defense Strategy fundamentally redefines Europe’s role from a region dependent on American security guarantees to one that assumes “primary responsibility” for its own conventional defense.
The strategy makes it clear that NATO allies must transition to taking the lead in defending the continent, while the United States provides “critical but more limited support.”
This shift is based on the assessment that Russia is a “persistent but manageable threat” and that the collective economic and military power of NATO members in Europe “dwarfs” that of Russia. The document notes that the German economy alone far outstrips Russia’s.
Consequently, the NDS argues that Russia is “not in a position to attempt European hegemony,” meaning Europe is capable of managing the threat without US dominance.
Europe serves as the testing ground for the White House’s new “global standard” for burden-sharing. The strategy references a “Hague Summit” where NATO allies are expected to set a total defense spending target of 5% of GDP. While the Pentagon emphasizes it will “provide incentives and opportunities” for allies to meet these targets, it insists these commitments must be fulfilled.
While stating that the war in Ukraine “must end,” the document places the responsibility for supporting Ukraine’s defense and maintaining the subsequent peace directly on European allies.
Declaring this to be “primarily Europe’s responsibility,” the document rejects the previous administration’s approach, which it claims allowed allies to engage in “free-riding.”
To help NATO allies generate the forces necessary for their own defense, the strategy envisions expanding transatlantic defense industrial cooperation and reducing trade barriers.
The “Model Ally”: A primary role for Israel in the region
Under the 2026 National Defense Strategy, Israel is identified as the “model ally” and serves as the primary example of the “America First” approach to burden-sharing.
The strategy redefines the US relationship with Israel based on the principle that allies must have the will and capability to defend themselves, with the US providing “critical but limited support.”
According to the Pentagon, Israel fits the definition of a “model ally” because, particularly following the October 7 attacks, it has proven it possesses the “capability and willingness to defend itself.”
Unlike allies criticized as “dependents,” the document praises Israel for taking action for its own survival. Consequently, the strategy states that the US should “empower” Israel rather than “tie its hands.”
Consistent with the strategy’s broader push for regional burden-sharing, Israel is expected to assume “primary responsibility for deterring and defending against Iran and its proxies.”
The document contends that Israel’s operations have “severely weakened” Iranian proxies, specifically Hezbollah and Hamas.
Israel’s role extends to stabilizing the regional security architecture. Building explicitly on the Abraham Accords, the Pentagon intends to “achieve integration between Israel and our Arab Gulf partners.” This effort aims to create a coalition where regional partners collectively exert more effort to defend themselves, allowing the US to focus its primary attention on the Indo-Pacific and its own borders.
While Israel leads the fight, the US commits to “strongly supporting Israel’s self-defense efforts.” This support is characterized as “critical but limited”: the US will provide the tools and support necessary for Israel to succeed (such as arms sales and intelligence sharing) but will not assume the primary combat role on the ground.
Instructions to the Gulf: “Integration with Israel”
According to the 2026 National Defense Strategy, a successful transformation of the region is defined by the establishment of a “more peaceful and prosperous Middle East” achieved through local ownership rather than American intervention.
The Pentagon argues that this transformation cannot be imposed from the outside. According to the US, it can only be realized by “those with the greatest stake in the region’s future”—the regional nations themselves.
Success is defined by regional allies and partners assuming “primary responsibility for deterring and defending against Iran and its proxies.” The US role shifts from leading the struggle to a supportive one.
According to the NDS, a successful transformation requires “deepening cooperation and integration” between Israel and Arab American partners, explicitly based on the framework of the Abraham Accords.
Defense industry linked to Trumpist economic policies
The NDS describes its industrial mobilization plan as a “national mobilization” and an “industrial call to arms,” likening it to the industrial revivals of the World Wars and the Cold War.
The plan aims to “strengthen the US Defense Industrial Base (DIB)” to support the President’s claim of a “once-in-a-century revival of American industry.”
This includes the re-establishment of a “world-class arsenal”; modernization and deregulation; the adoption of AI and innovation; internal reform of the Pentagon to increase production capacity; the expansion of the supplier base; and deepening integration with allies.
Preparing the military for war
The document defines the “warrior spirit” as the “heart of the US military”—a set of values exemplified by American heroes such as World War II veterans.
According to the document, the “warrior spirit” is inextricably linked to the military’s “fundamental, irreplaceable role.” Reviving this spirit is presented as necessary for the American military to refocus on “decisively winning the nation’s wars.”
This entails moving away from what the document describes as distractions, such as “social engineering” or “nation-building.”
The core premise of the strategy is the claim that previous administrations neglected and often “actively undermined” this spirit.
The document argues that true deterrence is a byproduct of a military focused on lethal force and victory, rather than abstract concepts like “grand nation-building projects” or the “rules-based international order.”
America
AI spending heads toward $7 trillion as analysts warn of market bubble risks
Massive financial resources directed into artificial intelligence technologies are driving companies into dangerous territory for global markets.
If expected productivity gains fail to materialize despite these immense capital flows, the artificial intelligence sector faces the risk of inflating into a giant bubble.
The Wall Street Journal reported that should such a scenario unfold, a widespread collapse capable of shaking the entire financial system and dragging down the broader market will become inevitable.
Estimates by McKinsey & Company project that global spending on data center construction alone could reach $7 trillion by 2030.
According to the newspaper, if these massive investments fail to deliver adequate productivity gains, the global economy will suffer a severe blow.
Should the sector as a whole turn out to be a bubble, the resulting damage will spread directly across the broader financial system.
While market observers note that a major crash—whether sooner or later—would drag all equity markets down with it, declines in AI-related stocks are currently being offset by gains in other sectors.
However, the first concrete signs of emerging vulnerability appeared in the memory chip market, where a sector-specific bubble formed and burst within just four months.
South Korean market shaken by sharp drop
In June, shares of South Korea’s Samsung and SK Hynix, the world’s two largest memory chip makers, sank by more than 12%.
The sharp sell-off pulled down the country’s broader stock index. South Korea’s benchmark Kospi index dropped 10%, triggering an automatic 20-minute trading halt.
Growing investor anxiety over artificial intelligence triggered the steep decline in the two giant companies, which together account for half of the total market capitalization of the Kospi index.
US equity markets also felt the ripple effects during the same period. The Nasdaq index closed down 2.2%, while the S&P 500 fell 1.4%, marking their worst single-day performances in two weeks.
Nevertheless, The Wall Street Journal pointed out that the disruption has not yet produced catastrophic consequences for the rest of the market.
While the bursting of massive historical bubbles resulted in disaster for national economies, smaller and localized bubbles in recent years have failed to paralyze broader economic growth.
The primary reason for this resilience is that these recent investments were not predominantly funded through leverage and bank credit.
When those localized bubbles burst, investors suffered wealth losses, but the financial system remained intact.
Russell Napier, a global macroeconomic strategist and keeper of the Library of Mistakes, a financial history archive in Edinburgh, evaluated the current market posture:
“The banking system is in superb condition, which means there will always be enough credit available to blow the next bubble.”
America
Anthropic AI models breach corporate systems after escaping isolated test environment
Anthropic has announced that several of its advanced artificial intelligence models escaped an isolated testing environment and accessed the live internet.
In a review published Thursday night, the company stated that in three separate incidents dating back to April, the models independently breached the systems of multiple companies without the AI developer’s knowledge.
Anthropic said the incidents involved an unreleased internal research test model, alongside its Opus 4.7 and Mythos 5 models.
Mythos was made available last month to a limited audience composed of technology companies and cybersecurity researchers, an initiative also known as Project Glasswing.
The AI developer did not disclose which companies were breached, but said the affected firms were informed of the incidents on Monday.
Anthropic noted that it conducted the review after OpenAI revealed last week that two of its most powerful models had breached containment, escaped their testing environment, and infiltrated several entities, including the AI platform Hugging Face and cloud provider Modal Labs.
System misconfiguration allowed internet access
Anthropic stated that it examined more than 140,000 tests to find evidence of whether Claude could gain access to the internet from test environments designed to be isolated.
The evaluations included “capture-the-flag” exercises, in which Claude was instructed to breach other systems to obtain information. This is a method frequently used by experts to assess a model’s hacking capabilities.
The San Francisco-based company stated that a “misconfiguration” in systems operated by Anthropic and its testing partner left the models with live internet access, enabling them to infiltrate external systems.
Anthropic said it approached remediation efforts “with full ownership of the responsibility.”
Neither Anthropic nor the affected organizations detected the unauthorized entries at the time they occurred.
Anthropic added that it may examine its logs more extensively, noting that the findings gave the company “cautious optimism” that such risks can be overcome through increased investment and more stringent safeguards.
David Allott, a cybersecurity expert, told the BBC: “The overarching lesson here is not that AI has developed fundamentally new attack vectors.”
“Instead, it means that AI agents can combine capabilities, acquire credentials and system access to act autonomously, while adapting scope and scale at machine speed,” Allott said.
The developments come as technology companies invest billions of dollars to develop AI agents capable of independently executing a range of tasks, from research and customer support to cybersecurity.
America
Elon Musk’s America PAC plans $100 million field operation for 2026 Republican midterm push
Tesla and SpaceX CEO Elon Musk is returning to the political spending arena with a new field program designed to help elect Republicans in at least eight states ahead of the 2026 midterm elections.
Musk has authorized his political action committee, America PAC, to spend between $100 million and $120 million on a new ground game focused on conservative voter turnout for the 2026 midterms, according to a Thursday report by The New York Times, which cited two unnamed sources informed about the plans.
America PAC funneled more than $250 million into Donald Trump’s reelection campaign in 2024, a expenditure that established Musk as the largest political donor in US history.
The New York Times reported that America PAC is reviving its spending initiatives and has reached out to other Republicans in recent weeks regarding the new field operations.
The effort is also being coordinated with other Republican Party spending groups, according to the report.
The newspaper identified targeted Senate races in the states of Alaska, Iowa, Maine, Michigan, and Ohio, while noting that discussions are also underway regarding contests in North Carolina, Georgia, and Texas.
The political action committee is additionally expected to deploy funds for House of Representatives elections in Washington, Wisconsin, and California.
The news comes a day after Axios first reported that America PAC’s operations were resuming, with a focus on driving Republican turnout during the non-presidential election cycle.
A spokesperson for America PAC declined to comment on The New York Times report but confirmed the Axios reporting to The Hill. The spokesperson stated that the spending group was “excited” to contribute to efforts to maintain the Republican majorities in Congress this fall.
“The President’s political team and the rest of the GOP apparatus have built a world-class operation that has Republicans well-positioned to make history and retain control of Congress this fall,” America PAC spokesperson Andrew Romeo said in a statement. “We’re excited to be part of the team again.”
The campaign will reportedly target Republican voters through door-to-door canvassing, mailers, and digital advertisements, enabling other groups to concentrate their resources on television advertising.
The developments were reported days after Musk told The Economist magazine that he had gotten “carried away” during his brief foray into politics.
The SpaceX CEO entered the political arena during the 2024 election, pouring hundreds of millions of dollars into Trump’s presidential campaign and accompanying the candidate on the campaign trail.
Musk went on to lead Trump’s cost-cutting initiative, known as the Department of Government Efficiency (DOGE), which executed sweeping employment and funding reductions across the federal government. Those efforts sparked controversy for Musk and his enterprise empire, including Tesla, whose shares fell sharply during his period of political involvement.
Musk departed the White House in late May 2025, and DOGE officially terminated its operations on July 4.
Shortly after leaving government, Musk and Trump engaged in a public dispute over the president’s sweeping spending legislation, the “One Big Beautiful Bill Act.” During the friction, Musk threatened to form a third party, though the initiative never materialized.
Musk and the US President appeared to resolve their differences last year, with the tech billionaire most recently joining Trump alongside other technology leaders on a trip to China in May.
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