The Sunday Brew #129
In this brew - Stablecoin funding in a picture | Segal’s Law & Pareidolia | Elon Musk exists DOGE, US Revenge Tax and Solar Storm knocking down Starlink Satellites
Welcome to The Sunday Brew, weekly 1-2-3 newsletter by The Percolator. Every Sunday we drop in your inbox 1 story in a picture, 2 concepts, ideas or frameworks to expand your horizons and 3 news from the week, to keep you updated.
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ONE STORY IN A PICTURE
TWO IDEAS, FRAMEWORKS OR CONCEPTS
This week we bring to you two concepts - Segal’s Law & Pareidolia
Segal’s Law
Segal’s Law is an adage that states, “A man with a watch knows what time it is. A man with two watches is never sure”.
On the surface, this saying highlights the paradox that having a single source of information can give a person a sense of certainty, while having multiple sources—especially if they conflict—can lead to confusion and indecision.
The deeper message, however, is more nuanced. While relying on just one source may provide confidence, it also means there is no way to detect errors or uncertainty in that information. With two or more sources, discrepancies become apparent, and the resulting uncertainty can make decision-making more difficult.
In today’s world, where information is abundant and often contradictory, Segal’s Law serves as a reminder of the pitfalls of information overload. Too much data, rather than clarifying, can complicate choices and delay action, a phenomenon sometimes called the “paradox of choice”. Yet, the law also subtly warns against blind trust in a single source, since apparent certainty may be misleading if there is no means to verify accuracy.
The value of Segal’s Law lies in its dual caution: it warns both of the dangers of overcomplicating decisions with too many inputs and the risks of complacency when relying on just one.
The adage encourages a balance—recognizing that while simplicity can aid decision-making, critical thinking and cross-checking information remain essential, especially in complex or high-stakes situations.
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Pareidolia
Pareidolia is a psychological phenomenon where the mind perceives familiar patterns, especially faces, in random or ambiguous stimuli. This tendency is not a disorder but a normal cognitive function that reflects the brain’s drive to assign meaning to sensory input, even when none objectively exists. Common examples include seeing faces in clouds, animals in rock formations, or the famous “man in the moon”.
Pareidolia extends beyond the visual; people may also hear hidden messages in music played backward or discern voices in random noise, such as static from a fan. The phenomenon is a specific form of apophenia, which is the broader human tendency to find meaningful patterns in unrelated data. From an evolutionary perspective, pareidolia may have provided survival advantages, as early detection of faces or threats in the environment could be crucial for safety.
Neurologically, the brain’s face-processing regions are so sensitive that even vague, incomplete patterns can trigger recognition, sometimes leading to false positives. While pareidolia can be playful or artistic, it also demonstrates how human perception is shaped by expectation, prior experience, and the brain’s inherent pattern-seeking nature.
The term itself comes from Greek roots meaning “beside” and “image,” emphasizing the idea of seeing something alongside or instead of what is actually present. Although pareidolia can sometimes lead to misinterpretation or superstition, it is fundamentally a testament to the brain’s remarkable ability to impose order and familiarity on a complex, often chaotic world.
THREE NEWS FROM THE WEEK
Elon Musk Exits DOGE, Ending Turbulent Tenure as Head of Government Efficiency Department
Elon Musk officially stepped down from his role leading the U.S. Department of Government Efficiency (DOGE) on May 28, 2025, marking the conclusion of a brief but controversial four-month stint in the Trump administration.
Appointed as a Special Government Employee with a limited 130-day term, Musk was tasked with cutting federal waste and streamlining government operations, a flagship initiative under Donald Trump's 2025 re-election platform.
During his tenure, Musk promised sweeping reforms and significant cost savings, claiming potential reductions in waste and fraud amounting to trillions of dollars over time. However, his leadership was marked by controversy, legal challenges, and criticism over chaotic management and layoffs, with limited measurable success reported. His departure followed public disagreements with Trump, particularly over the administration’s "big, beautiful" budget proposal, which Musk criticized for increasing the federal deficit and undermining DOGE’s efforts.
Musk announced his exit via his social media platform X, expressing gratitude for the opportunity while emphasizing that the DOGE mission would continue to grow within government operations. Despite stepping back, Musk indicated he would reduce his involvement but remain supportive of the initiative’s long-term goals.
The end of Musk’s involvement with DOGE also signals a shift in his focus back to his core businesses, including Tesla and SpaceX, amid financial challenges and shifting political sentiments affecting demand. The Trump administration is now preparing to offboard Musk and determine the future leadership and direction of DOGE.
Musk’s departure closes a headline-grabbing chapter that saw a tech titan attempt to disrupt federal bureaucracy, leaving behind a legacy of ambitious promises and contentious outcomes. The future of DOGE remains uncertain as the government looks to build on Musk’s groundwork while addressing the challenges exposed during his tenure.
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Wall Street Rattled as 'Revenge Tax' Threatens to Reshape Global Investment Landscape
In a move that has sent ripples through financial markets, President Trump's administration is pushing forward with a controversial tax provision that could fundamentally alter the flow of foreign capital into the United States.
The provision, buried within the "One Big Beautiful Bill Act" that recently passed the House of Representatives, would empower the U.S. to impose punitive taxes of up to 20% on foreign investors from countries deemed to have "discriminatory" tax policies against American businesses.
Known colloquially as the "Revenge Tax," Section 899 specifically targets investors from nations that have implemented Digital Services Taxes or similar measures affecting U.S. tech giants. Countries potentially in the crosshairs include major U.S. allies such as Canada, the UK, France, and Australia.
Wall Street executives and global investment managers have expressed serious concerns about the legislation's potential impact. Deutsche Bank's George Saravelos characterized the provision as the "weaponization of US capital markets into law," warning it could transform the current trade conflict into a full-blown "capital war".
The Congressional tax scorekeeper has validated these fears, predicting the measure would indeed drive foreign investors away from U.S. markets. With foreign direct investment in the U.S. totaling approximately $5.5 trillion and representing 20% of GDP, the stakes are exceptionally high.
International investors, including sovereign wealth funds and pension funds that frequently invest in U.S. assets, would face escalating tax rates starting at 5% and potentially rising to 20% over three years. Canadian investors, who contributed significantly to the $21.3 billion invested in U.S. commercial real estate in 2024, could be particularly affected.
As the bill moves to the Senate, which could still amend or remove the provision, global investors remain on edge, with many already reconsidering their U.S. investment strategies ahead of the potential January 2026 implementation.
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Solar Storms Force Dozens of Starlink Satellites to Plummet Back to Earth
A surge in solar activity has triggered a wave of premature re-entries among SpaceX's Starlink satellites, with NASA confirming that intense solar storms are accelerating their descent and cutting their operational lifespans by up to 10 days. The phenomenon, linked to the recent solar maximum—the sun’s peak in its 11-year activity cycle—has caused Earth’s upper atmosphere to heat and expand, increasing atmospheric drag on satellites in low Earth orbit.
NASA scientist Dr. Denny Oliveira explained that satellites are re-entering the atmosphere much faster than anticipated during geomagnetic storms. In one striking case, 37 Starlink satellites re-entered just five days after launch, compared to the usual 15 days. Between 2020 and 2024, NASA tracked 523 Starlink re-entries, a number expected to rise as solar activity continues and the Starlink constellation grows.
SpaceX, which operates more than 7,000 Starlink satellites and plans to expand further, faces mounting challenges as frequent re-entries could disrupt global internet coverage and increase operational costs. While accelerated re-entry helps clear defunct satellites and reduce space debris, it also raises concerns about surviving debris reaching Earth’s surface and the environmental impact of burning satellites.
Experts warn that as mega-constellations like Starlink expand, the risks of satellite collisions, atmospheric pollution, and interference with astronomical observations will intensify. The current solar maximum marks the first time such a vast satellite network has faced the full force of heightened solar weather, underscoring the urgent need for improved space weather forecasting and adaptive satellite design.
The Sunday Brew by The Percolator brings to you curated news on tech, business & entrepreneurship, from across the internet to give your week a perfect start.
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