Individual Economists

A Montreal Narco Network Busted For Allegedly Smuggling Super Fentanyl Into America

Zero Hedge -

A Montreal Narco Network Busted For Allegedly Smuggling Super Fentanyl Into America

Submitted by The Bureau's Sam Cooper,

An elite Montreal-based narco network allegedly exported carfentanil and next-generation synthetic opioids 100 times deadlier than fentanyl to American consumers via the dark web, leading to the arrest of four yesterday, after 13 months of joint surveillance by U.S. federal agencies and Quebec police, and a seizure of more than 600,000 tablets of synthetic drugs in December.

The four suspects charged are reportedly connected, through their alleged street gang affiliate, to the Wolfpack Alliance — a network tied by DEA sources to a British Columbia fentanyl superlab, and by Canadian law enforcement and expert sources to Canadian outlaw motorcycle gangs, Iranian organized crime, and the Sinaloa Cartel.

On Wednesday, Quebec’s ENRCO — the unit mandated specifically to target organized crime leadership — arrested four residents of Montreal’s South Shore suburbs on charges connected to a network that had been, for more than a year, allegedly manufacturing and exporting carfentanil and industrial quantities of substances newer and deadlier than fentanyl to consumers in the United States. The investigation was conducted jointly with U.S. Homeland Security Investigations and U.S. Customs and Border Protection.

The four suspects are: Darren McAlpine, of Delson; Geneva Fournier, of Châteauguay; and Wanya Nathan Ellis and Cheyanne Buchanan-Dennis, both of Sainte-Catherine. All four municipalities sit in the region directly south of the Montreal Island. They appeared by videoconference before a judge at the Longueuil courthouse and face charges of possession for the purpose of trafficking, drug trafficking, and possession of a prohibited weapon.

The arrests followed searches executed on December 17, 2025, at addresses in Châteauguay and Sainte-Catherine. No U.S. federal charges have been publicly announced.

The December searches produced a seizure that reads like an inventory of the post-fentanyl synthetic opioid market.

Quebec police pointed to more than 600,000 tablets — comprising 288,000 metonitazene tablets, 128,000 methamphetamine tablets, 180,000 benzodiazepine tablets, and 10,000 MDMA tablets — alongside 81 litres of protonitazene in liquid form, cannabis, cocaine, dark web trafficking equipment, a loaded 9mm firearm, and 9mm ammunition.

The 81 litres of liquid protonitazene is an industrial-scale volume of a still-emerging synthetic opioid. The DEA permanently placed protonitazene in Schedule I in 2024; on February 11, 2026, it separately finalized Schedule I status for variants of metonitazene and protonitazene.

“Metonitazene and Protonitazene are substances not widely known to the public at present, but they are considered more potent than fentanyl,” Quebec police said yesterday.

In a previous interview, retired acting DEA chief Derek Maltz told The Bureau that chemicals like nitazenes are amplifying the existing threat from Chinese-supplied fentanyl — which he and many U.S. experts view as an intentional, war-like attack from Chinese state-linked networks aligned with Latin cartels.

We’re getting crushed with carfentanil, xylazine, etizolam, isotonitazene — all those different new psychoactive substances which are coming out of China. So it’s just another phase of the attack,” Maltz said.

Six weeks before the Quebec arrests, on February 10, 2026, Montreal’s regional public health directorate had already issued a public warning about protonitazene’s effects — suggesting that product from this network, or a network supplying the same substances, was already circulating in Montreal’s drug supply while the police operation was still running.

Carfentanil was developed to tranquilize elephants.

According to the DEA, it is 100 times more potent than fentanyl — which itself is lethal at the 2-milligram range — and 10,000 times more potent than morphine. Russian special forces deployed an aerosolized version against Chechen hostage-takers in a Moscow theatre in 2002. More than 120 hostages died. The DEA reported in 2025 that it had tested more than 100 kilograms of carfentanil mixed with other drugs in 2024 alone — more than the previous three years combined — and that the substance is now predominantly appearing in pill form, pressed to resemble prescription medications.

The network now charged in Montreal was allegedly supplying fentanyl southbound into the United States — a politically sensitive finding given that the Trump administration has partly justified tariffs against Canada on the allegation that Chinese Communist Party and Mexican cartel networks have increasingly leveraged Canada for fentanyl production, particularly via Vancouver, and shipment to the U.S. This new case adds Montreal as a major alleged node, one already associated with Mexican cartel human trafficking networks moving South American nationals from Montreal into New York State.

Evidence from the Canada Border Services Agency has identified China and Hong Kong as import sources for earlier nitazene variants. The seizure in this case — 288,000 metonitazene tablets and 81 litres of liquid protonitazene — represents the largest documented seizure of these substances in Canada on the public record.

Radio-Canada reported that the network is connected to Zone 43 — a Montreal street gang originating in the Montréal-Nord neighbourhood, Crips-affiliated, and engaged in a violent conflict with a rival Blood-affiliated group called the Profit Boys.

Vancouver Police arrested five Zone 43 members in June 2024 and seized more than 24 kilograms of drugs following a 14-month investigation into the gang’s expansion into British Columbia. VPD Organized Crime Section head Inspector Phil Heard described Zone 43 as posing “a very significant risk to the public,” noting the gang had been operating in Vancouver for several years and was actively seeking to take over drug lines and territory.

In B.C., Zone 43 reportedly operates in affiliation with the Wolfpack Alliance.

The Wolfpack is where the Mexican transnational architecture emerges and intersects with Ryan Wedding’s Sinaloa Cartel networks, a U.S. government source told The Bureau.

The source linked the Wolfpack and Wedding associates to what investigators have called the Falkland superlab, a large-scale drug production operation in British Columbia’s interior. Canadian law enforcement and expert sources have separately identified connections between the Wolfpack network and Canadian outlaw motorcycle gangs, Iranian organized crime, and the Sinaloa Cartel.

As reported previously by The Bureau, starting in the fall of 2022, pressure at the U.S. southern border began pushing Mexican nationals — and, by inference, cartel operatives — northward into the Canadian pipeline. From January to mid-October 2022, 7,698 Mexican asylum seekers took direct flights from Mexico City to Montreal, according to The Canadian Press. Nonprofit refugee assistance officials said most flew to Canada because they had learned of the Trudeau government’s visa-free policy and the availability of financial assistance while refugee claims were processed.

In their 2021 book The Wolfpack: The Millennial Mobsters Who Brought Chaos and the Cartels to the Canadian Underworld, journalists Peter Edwards and Luis Nájera established that the Sinaloa Cartel had developed solid control of cocaine shipments in and out of Canada, that the Arellano Félix organization held a foothold in western Canada — particularly Vancouver and Alberta — and that the Zetas were present in Canada through networks involving temporary migrant workers.

Asked in 2023 whether Canada’s importance to Mexican organized crime had increased in recent years, Nájera was direct: “I would say it has increased since criminal cells moved up north to settle and expand operations here. It is also strategic to have groups operating north of the U.S. border, close to key places such as Chicago and New York, and without the scrutiny of the DEA and rival groups.”

Don Im, a former senior agent in the DEA’s Special Operations Division, told The Bureau the Montreal seizure fits a pattern his unit began tracking at the end of 2019, when small clusters of nitazene overdose deaths began appearing in northern U.S. states — likely, he said, sourced from Canada but manufactured with Chinese precursor chemicals. The pattern intensified through the COVID years before a gradual decline, which Im attributes to cheaper Mexican-produced fentanyl flooding the market and displacing the Canadian supply.

That displacement, Im argues, may now be reversing.

With Mexican cartels disrupted by a wave of extraditions and leadership deaths, the fentanyl supply from the south is under pressure — and demand in the United States hasn’t gone anywhere. “Non-Mexican drug trafficking organizations in Canada are very likely picking up the slack and fulfilling the demand in the U.S. as addicts and local distributors in the U.S. are looking online,” Im said.

On the Chinese supply chain behind the nitazenes, Im was precise: Chinese companies have been designing and manufacturing synthetic drugs and precursor chemicals for at least 25 years, directed by the Chinese Communist Party to reduce dependency on Western pharmaceutical companies and incentivized by provincial governments to innovate and export. The result, in his assessment, was a perfect storm — Chinese synthetic precursors, Mexican cartel distribution networks, dark web and social media sales channels, and decades of indifferent Western drug policy — that produced what he called “the most deadly form of slow-motion weapon of mass destruction.”

Tyler Durden Fri, 02/27/2026 - 20:05

Lululemon Founder Blasts Board Again Amid Stock Collapse

Zero Hedge -

Lululemon Founder Blasts Board Again Amid Stock Collapse

Lululemon Athletica founder Chip Wilson blasted the board in a fiery message to shareholders earlier and ramped up calls for activism as the athletic apparel retailer is set for a lost year, lagging behind competitors, losing market share, and entangled in multiple see-through-leggings quality-control controversies with customers.

The nearly 70% collapse in Lululemon's market capitalization from its late-2023 peak of $511 per share to the current $186 level, compounded by 1.5 months of quality-control issues involving see-through leggings making headlines, has compelled Wilson to publish yet another update for shareholders, urging much-needed change at the board level.

"In support of all shareholders, I am pursuing a campaign to catalyze a quantum of change that is sorely needed at Lululemon. To effect that change, I have pursued private, constructive dialogues with the Lululemon Board of Directors (the "Board") for the past few months. My attempts toward a sensible solution have not been reciprocated," Chip wrote in a message to shareholders on Friday.

Chip's core issue with the board is the lack of brand, creative, and marketing expertise, creating a disconnect between the yoga-maker's product and brand strengths and the board's ability to translate those into durable margins and long-term shareholder value.

He noted that the board ignored a reform framework in December that included three independent director candidates, adding that when the board finally responded more than 70 days later, the "response was weak and insufficient."

Chip continued, "While we have proposed changing three directors, our strong feeling is that more than three directors should be replaced."

In the third week of January, Chip blasted the board in a social media post over its "operational failure" involving the "Get Low" line, which was pulled from the e-commerce website for several days due to see-through quality issues before being brought back online. He said at the time that this came months after the failed launch of the "Breezethrough" leggings.

At the start of the year, UBS analysts led by Jay Sole warned that 2026 was shaping up to be a lost year for Lululemon.

 

Tyler Durden Fri, 02/27/2026 - 19:40

Soaring Electricity Demand Meets Gas Turbine Shortage

Zero Hedge -

Soaring Electricity Demand Meets Gas Turbine Shortage

Authored by Irina Slav via OilPrice.com,

  • AI-driven power demand is surging far faster than expected, but a shortage of heavy-duty gas turbines is creating a bottleneck.

  • Turbine makers like Siemens, GE Vernova, and Mitsubishi are ramping up production, but expansion projects could take up to 5 years.

  • Without enough gas capacity, AI growth could slow or grids may turn back to coal, potentially delaying coal plant retirements.

The surge in electricity demand in the world’s AI hotspots has prompted a comparable surge in the demand for reliable supply. That surge was not expected. There are not enough gas turbines to secure that supply. This means the AI revolution would either have to slow down, or the grid would have to increase its reliance on coal.

Natural gas has in recent years been marketed as a so-called bridge fuel between coal and oil, on the one hand, and wind and solar, on the other. When it became clear that “bridge” is in fact its own country of low-emission baseload generation, natural gas became the object of vilification from activists, to the point that some claimed it was even more harmful for the atmosphere than coal. Then came the AI race.

As Big Tech majors rush to expand their artificial intelligence capabilities and applications, demand for electricity is going through the roof. That jump, however, comes after decades of modest to no growth, reflected in gas turbine makers’ flat production.

Now, they are having to boost this really fast, really high. In the meantime, those with the insatiable electricity demand are having to make do with alternatives—including repurposed jet fuel engines.

Siemens Energy, one of the world’s top three gas turbine makers, earlier this month reported that its gas services business had seen a record quarter in orders, with a total of 102 new turbines in the backlog.

As much as 40% of these new orders came from the United States, and another 35% came from Europe. The report came after Siemens announced plans to invest $1 billion in grid equipment production.

GE Vernova, another turbine major, will be spending $600 million on turbine manufacturing capacity expansion, with an annual target of up to 80 heavy-duty turbines, equal to some 20 GW in generation capacity.

The company announced those plans a year ago, saying, “These strategic investments and the jobs they create aim to both help our customers meet the doubling of demand and accelerate American innovation and technology development to boost the country’s energy security and global competitiveness.”

Mitsubishi, the third Big Turbine manufacturer, said last year it would double its turbine production capacity in response to soaring demand.

The company’s chief executive noted that “We were working towards boosting production capacity by 30%, but that’s not enough to meet growing demand. Fulfilling those orders is our top priority.”

Yet all these plans take time to materialize, and industrial electricity consumers need it now, so they are converting jet engines to gas turbines. The Wall Street Journal reported earlier this month that the conversion of jet engine turbines to power generation turbines was a growing business enjoying a lot of investor interest. One such converting company, FTAI Aviation, had seen its shares gain 42% since it announced this new business, which takes just 30-45 days to convert a Boeing 737 jet engine into a power generation gas turbine.

Time is of the essence for the AI racers. The waiting lists for the big turbine makers are years long. But they need the electricity now because if momentum lets up, investors will flock out, or such appears to be the general perception in the AI space. Still, the turbine supply constraints may affect that momentum, according to some analysts.

“In the five-year period to 2030 that will supposedly be critical for the development of advanced AI, gas-fired plants will make a significant contribution to meeting increased US power demand,” Wood Mackenzie’s Vice Chair for the Americas, Ed Crooks, wrote in a recent opinion piece.

“But the availability of equipment, particularly heavy-duty gas turbines, is likely to remain a constraint on electricity supply growth, despite the new capacity being added by manufacturers,” Crooks also said.

He noted that the current wait time for new gas turbines was five years. This is definitely not fast enough for AI data center operators. Aircraft jet engines converted into gas turbines cannot be a complete substitute due to their much smaller capacity. And this means that either Big Tech loses momentum in AI, or it gets electricity right now, from somewhere else.

That ‘somewhere else” could be solar, for instance, at least according to pro-transition analysts. Yet even those analysts admit that this choice would also involve major investment in batteries—and backup generation capacity. To cut out the middle man, so to speak, tech companies may simply opt for the most readily available baseload capacity besides natural gas: coal. And this means that plans for the retirement of coal power plants are likely to be revised, according to Wood Mac.

Even with all that baseload generation, the AI racers may have to revise their own growth plans because there will not be enough electricity to go around, simply because of the physical laws of the world we all inhabit. And this, in turn, means that the race’s momentum will inevitably slow at some point.

Tyler Durden Fri, 02/27/2026 - 19:15

Vance Says 'No Chance' Strikes On Iran Would Become A Prolonged War

Zero Hedge -

Vance Says 'No Chance' Strikes On Iran Would Become A Prolonged War

Just to underscore how close we are to witnessing an American military attack on Iran, this is the current scene at Israel's Ben Gurion International Airport...

On Thursday Vice President JD Vance issued some curious and eyebrow-raising comments to The Washington Post regarding the looming prospect of unprovoked attack on Iran.

Vance asserted that there's "no chance" military strikes on Iran would result in the United States becoming involved in a prolonged war.

Speaking with The Washington Post on Air Force Two, he explained Trump is weighing military and diplomatic options to prevent Iran from obtaining a nuclear weapon - but Vance also sought to defend repeat promises previously given on the campaign trail which decried America's prior addiction to regime change wars and foreign quagmires.

"The idea that we're going to be in a Middle Eastern war for years with no end in sight - there is no chance that will happen," Vance said.

But if there's one thing the American public has learned after 20+ years of the so-called Global War on Terror, it's not to trust a politician when he says "trust me" concerning a 'limited' attack not becoming a disastrous entanglement.

Political leaders might say one thing, but Americans by and large hear another...

Vance is a Marine Corp combat veteran who has himself admitted he was "lied to" over the Iraq war, the architects of which were the Bush Neocons. Vance has at times even described himself as a "skeptic of foreign military interventions."

The VP further told the Post that "I think we all prefer the diplomatic option" - however, "it really depends on what the Iranians do and what they say," he explained.

And yet there's no controlling Iran's response should the US send missiles on Tehran or its nuclear sites. The Iranians have vowed to retaliate hard and with no limits should attacks be unleashed. It has warned no US base in the region will be safe. So once it's bombs away, there's no putting the genie back in the bottle.

Tyler Durden Fri, 02/27/2026 - 18:50

Bad Bets: Massive EV Subsidies Not Paying Off

Zero Hedge -

Bad Bets: Massive EV Subsidies Not Paying Off

Authored by James Varney via RealClearInvestigations,

The future was supposed to have arrived this year in a cluster of counties just east of Atlanta in the form of a state-of-the-art factory that would churn out 400,000 electric vehicles a year. But when JoEllen Artz looks about her lifetime neighborhood, all she sees are holes.

“Those shovel holes they made in the ground? That’s it,” she said of the planned site of a Rivian manufacturing plant. “It’s awful, awful.”

The problem is not a lack of funds. On the promise of thousands of jobs, elected officials in Washington, D.C., and Atlanta have pledged some $8 billion to the project, including a $6.5 billion loan the Biden administration green-lit in its final hours

Those loans are just two of the huge public bets, or investments, that state capitals and Washington, D.C., have made on EVs. While no one has calculated exactly how many federal and state dollars both Republican and Democratic elected officials have sent to that green sector, experts RealClearInvestigations consulted fixed the total north of $100 billion.

Overhanging that massive spending, however, is the issue of demand for EVs, or more precisely, the lack of it. In 2025, Rivian said it sold 25,000 EVs in the U.S., far below estimates of 40,000 to 51,000 vehicles. The company’s revenues were flat in 2024 and 2025, coming in around $5 billion. The Georgia plant was supposed to open this year, but the ribbon-cutting is now slated for 2028, according to the company. 

When it comes to electric vehicles, the U.S. consumer has spoken, as Ford CEO Jim Farley said earlier this month. Tesla is one of the few profitable manufacturers, and even its numbers are falling. But while people may not be opening their private wallets for EVs, the public purse for them is bulging. An RCI analysis has identified tens of billions of dollars in federal, state, and local subsidies to support EVs in recent years. Now, in light of market headwinds that show tepid consumer interest in the product and looming competition from China, the likelihood that the taxpayer loans will be repaid is diminishing. Experts say this may result in multiple, costly debacles of public “investments” in green energy projects like the Solyndra loan debacle during the Obama administration, which drew headlines at $500 million.

“This has been a colossal mistake,” said Thomas Pyle, president of the Institute for Energy Research. “This has been one of the worst examples of the government trying to impose its will on carmakers and the public.”

Federal Commitments

Public spending on green energy projects, including EVs, began in earnest in May 2009 when President Obama, flanked in the Rose Garden by Detroit and United Auto Workers executives, unveiled his National Fuel Efficiency Policy. It was, the crowd insisted, “good for consumers, good for the economy, and good for the country.” 

There has been bipartisan support for many EV initiatives, and the sector got a huge boost during the Biden administration when funding linked to a NetZero future spread throughout the federal government. The bill goes well beyond the billions of dollars in tax credits the federal government provided to EV buyers until that program was ended last September, and includes school buses, postal delivery vehicles, charging stations, and the big manufacturing loans.

The Energy Department, for example, has spent more than $30 billion. That chunk comes from the Advanced Technology Vehicle Manufacturing division. Prior to 2019, the ATVM, as it is known, had issued around $8 billion in loans to five different companies. Of those, Nissan repaid its $1.4 billion loan, while Tesla repaid its $465 million loan years ahead of schedule. A $5 billion loan to Ford remains active, but taxpayers lost nearly $210 million on loans to Fisker Automotive and Vehicle Production Group, both of which defaulted, according to the department. 

Since 2019, however, and especially after the new loan authority contained in the Inflation Reduction Act Biden and congressional Democrats pushed through via reconciliation in 2022, more than $21 billion has been approved for EV-related projects, records show. The $6.6 billion to Rivian was not the largest loan in that portfolio. Instead, a $9.6 billion loan to Blue Oval SK, a joint venture with Ford, for EV batteries and the EV supply chain production topped the bill.

At the Environmental Protection Agency, EV-related spending has topped $6.7 billion, with the lion’s share of that, $5 billion, in grants from its Clean School Bus Program to school districts to buy EV buses. 

The EPA has paid between $225,000 and $375,000 per EV school bus, which is roughly three times more expensive than a traditional internal combustion engine bus, and at those prices, it would cost more than $200 billion to replace the nation’s fleet. Such taxpayer largesse has been a boon to the bottom line of school bus manufacturer Blue Bird, but the EPA’s expensive program has suffered myriad setbacks, such as delayed deliveries, bus fires, route distances, and heating the buses in cold weather.

The U.S. Postal Service has spent an estimated $3 billion for EV vehicles in its fleet. A spokesperson said the Postal Service is in the midst of a $9.6 billion “investment” launched in 2022, but they declined to say how much of the remaining $6.6 billion has or would go to buying EVs. At the end of 2025, however, the Postal Service’s proposed EV fleet was running far behind schedule, with Republican Sen. Jodi Ernst ripping the plan as a “boondoggle.”

States Jump In

Some states have labored to force EVs into the market. More than a dozen of them have followed California’s lead, requiring at least 35% of cars offered for sale there annually be “ZEVs,” or “zero emission vehicles,” with all cars being ZEVs by 2035. This complicated, opaque system has made all cars more expensive, according to economists. Congress voted last year to kill California’s plan, but President Trump has not acted on that, and state officials have vowed to sue if he signs it.

On top of the costs of those market manipulations, which can be difficult to compute, are billions in direct state spending on EVs and EV-related projects. Both Republican and Democratic elected officials supporting these moves have done so on the grounds that it would provide an economic boost and be good for the environment.

Rivian, whose corporate communications did not respond to RCI’s request for comment, hasn’t only benefited from the Biden administration’s last-minute loan. In 2022, the state’s Republican leadership in Atlanta pledged up to another $1.5 billion – one of the largest incentive packages in Georgia history – including tax incentives, abatements, support programs, and more than $175 million for land acquisition and improvements. There has been an estimated $25 million in local incentives provided, too.

Georgia Gov. Brian Kemp and House Speaker Jon Burns, both Republicans, attended the groundbreaking ceremony there last September.

Today is another milestone in bringing quality, good-paying jobs to Georgians in this part of the state,” Kemp said.

The plan has seen repeated delays, however. Currently, Rivian builds its EVs at an Illinois plant, but the company has been losing roughly $39,000 per EV it sells.

Oversight of the sputtering EV project, which was announced in 2021 and is now slated to come online in 2028, has been given to the Joint Development Authority of Jasper, Morgan, Newton, and Walton counties, which did not respond to a request for comment. Opponents said that the maneuver protected the 2,000-acre site from local zoning restrictions.

The delayed timetable of factory construction, along with Rivian’s flat revenue and struggling sales, has led a group of six residents, including Artz, to step up their opposition to the project. They argue the massive construction could damage their water table, but their lawsuit against the plant lost in 2024, although they successfully battled Georgia’s attempt to make them pay legal fees.

We’re frustrated as taxpayers,” Artz told RCI. “They’ve spent hundreds of millions of dollars on this plant that doesn’t exist.

In December, Tennessee lawmakers said they might renegotiate a $500 million payment they had offered the Blue Oval SK battery factory in Haywood County after Ford scaled back its EV venture. The joint venture’s new plans will likely involve 1,000 fewer jobs than initially announced in 2021.

In addition, the Tennessee Department of Environment and Conservation noted another $8.5 million spent on EV buses and charging stations, although some of that money may have come from federal grants.

At Volkswagen’s Chattanooga EV factory, a labor dispute erupted with union workers last year after shifts were cut due to low sales numbers, although a tentative agreement on that was announced by the company this month.

The Wrong Incentives

EV supporters insist the vehicles are the future, and that American businesses and citizens need robust incentives to embrace technologies that will stave off the apocalyptic consequences of climate change. As with many other aspects of climate policy, backers have not only argued for the environmental benefits of EVs but have cast them as an economic boon that will create jobs and save consumers money. 

The key is designing incentives that convert new buyers, not subsidizing people who were going to buy an EV anyway,” said Mike Murphy, CEO of EVs for All America, a nonprofit public-education group working to ensure the benefits of electric vehicles reach every community. “A first-time ‘conquest credit’ is simply a smarter use of taxpayer dollars because once somebody switches to electric, data shows 80% stay with EVs. That’s the win for preparing the US auto makers to be competitive in the future car business, which will be dominated by EVs."

Ingrid Malmgren, senior policy director of Plug In America, said the move away from EVs will have dangerous long-term consequences as it “favors a return to fossil fuels over the growth of a clean energy economy.” Malmgren said, “This essentially will shift taxpayer liabilities from funding clean energy and manufacturing jobs to funding fossil fuel subsidies.”

Critics of Biden’s policies counter that the promised benefits of such policies – in a world where China is now by far the largest emitter of greenhouse gases – are dubious. What is clear is that tabulating all the ways the federal government props up the EV industry is a “herculean task,” the American Energy Institute concluded in a report last year, saying “the federal government is running roughshod over sound public policies.”

Institute CEO Jason Isaac said an accounting of the spending is long overdue.

Taxpayers have spent tens of billions of dollars subsidizing electric vehicles through direct tax credits, manufacturing incentives, charging infrastructure grants, and a web of regulatory mandates that shift additional costs onto consumers,” he told RCI. The dense web of regulations and credits has made spending opaque and “allowed regulators to game the standards in ways that masked the true costs.”

Huge Losses

Outside of government work, the market for EV makers is grim. On Feb. 6, Stellantis announced a $26 billion loss on its EV business. Ford has never been able to entice buyers to an electric version of its F-150 pickup, which for many years has been the best-selling car in America, and two months ago announced it will absorb losses of $19 billion on its EV ventures through 2027. In an earnings call this month, Honda revealed big 2025 EV losses, which have now cost the company close to $5 billion.

In between those staggering hits came General Motors, whose Chief Executive Mary Barra has been an outspoken booster of EVs. Last month, General Motors announced a $6 billion write-off, which, added to previous losses, brings GM’s EV hit to $7.6 billion. The German carmaker Volkswagen has seen declining sales of its EV cars in the U.S. – they fell off a cliff in the last quarter of 2025 after federal payments for buyers ended. VW executives said last year the company remained committed to spending $180 billion on its EV ventures, a slight reduction from initial estimates, but its flagship model, the ID4, is the slowest-selling car in the United States.

The Trump administration would seem to be opposed to massive spending on EVs, as it has said repeatedly that it wants energy policy focused on resilient, reliable, and less expensive energy sources than the renewables that comprise NetZero plans. On Feb. 12, Trump announced he was revoking the Obama-era decree that classified greenhouse gases as a public health issue that should be regulated. That finding has been the main regulatory arch supporting the green energy policies that followed.

Yet it is still not clear what action, if any, the Trump administration will take regarding EVs.

At the Department of Energy, which the Biden administration repurposed as a spearhead in the NetZero drive, a spokesperson suggested little has changed as yet. As always, it can be difficult to pluck specific threads from a quilt of federal spending, but when it comes to EVs and EV-related projects, 

Trump energy officials did not identify any specific changes they have made to the Advanced Transportation and Vehicle Manufacturing program, although they indicated some could be in the offing. 

 “(The Office of Energy Dominance Financing) has completed the thorough review of each project in its portfolio, ensuring that every taxpayer dollar is used to advance the interests of the United States. The review is complete – the actions of de-obligating or revising loans and conditional commitments are still ongoing,” a spokeswoman told RCI. EPA officials said they were “actively reviewing and revamping the Clean School Bus Program.”

Although Biden’s Transportation Department had received wide criticism when news broke last year that it had constructed only eight charging stations as part of its $7.5 billion National Electric Vehicle Infrastructure (NEVI) plan, the Trump administration seems intent on spending that money.  

“In just five months since issuing revised NEVI guidance, Secretary (Sean) Duffy was able to obligate 39% more NEVI funds than the Biden Administration obligated in three years,” a spokesman said.

The most recent NEVI stats show some three dozen stations and 148 ports across 12 states, according to tracking by North Carolina State University.

The experts RCI spoke with said a tally of just what taxpayers have provided the EV industry should be made, but agreed that no one has successfully done so.

Similarly, just how much of this spending could be wasted in an industry that has enjoyed government support remains to be seen. But if some of the projects fail, the $500 million lost on Solyndra, which created a scandal at the time, will seem like small beer.

“There have been massive, mounting losses that are going to have to be made up somewhere,” Pyle said. “Washington bludgeoned carmakers into a timetable of efficiency standards and the carmakers went along with it. People should be vehemently opposed to anything mandatory, which in effect is what the government is doing.”

Tyler Durden Fri, 02/27/2026 - 18:25

Democrats Slam Democrats For 'Rigging' Democrat Primaries

Zero Hedge -

Democrats Slam Democrats For 'Rigging' Democrat Primaries

The party that won't stop lecturing America about democracy is once again rigging its own primary by endorsing - thereby biasing voters - towards certain candidates over others. On Monday, the Democratic Congressional Campaign Committee (DCCC) endorsed 12 candidates through its “Red to Blue” program to help Democrats win back the majority in the House of Representatives.

“Today, the DCCC announced the first slate of 12 top-tier candidates added to its highly competitive ‘Red to Blue’ program for the 2026 cycle,” the committee said in a statement. “This initial group of candidates will receive strategic guidance, staff resources, training, and fundraising support to ensure they are in the best possible position to win in November.”

The committee describes the “Red to Blue” program as a “highly competitive and battle-tested DCCC program that arms top-tier candidates with organizational and fundraising support to help them continue to develop strong campaigns.” 

Candidates earn spots in the program by hitting aggressive benchmarks for grassroots engagement, local support, and fundraising. 

Now, 17 Democratic congressional candidates are accusing the party's own campaign arm of torching the integrity of the 2026 primary process by interfering with the primary.

According to a joint statement from the snubbed candidates, this early backing by the DCCC “carries significant influence in the primary process —often shaping fundraising pipelines, access, and perceived viability before voters have had the opportunity to evaluate the full field.”

The statement highlighted mounting frustration among Democratic candidates nationwide, who are concerned about the increasingly aggressive pattern of early primary intervention by the DCCC, “a trend they say risks weakening voter trust and diminishing the role of voters in selecting their own nominees.”

 "Primaries are not an inconvenience, they are the foundation of democratic legitimacy," the candidates said. 

In multiple states and districts, party leadership has signaled preferred candidates well before voters have had the opportunity to evaluate the full field. Through early infrastructure support, fundraising advantages, and institutional backing, these actions show that outcomes are being shaped before ballots are cast.

[…] 

Candidates emphasize that their concern is not opposition to party infrastructure or general election strategy. Rather, they argue that legitimacy in the primary depends on fairness and openness in the months prior. 

“You cannot argue that democracy is on the ballot in November while narrowing democracy in the primaries from now through August,” the candidates who were passed over argue. “If a candidate is strong, they should be able to earn support in open competition. Protecting them from competition is not confidence.”

DCCC Chair Rep. Suzan DelBene defended the committee's picks with an answer that probably made the dissidents even angrier. "These are all strong candidates, they're the ones who are going to be the general election candidate and they're the ones that we think can win the general election," she said. 

"We are just six months away from the primary,” Knapp pointed out. “And it's incredibly frustrating.”

He added. “This is precisely what we've been voicing concerns about as Democrats for years, and it appears we are repeating the same mistakes.

Democrats have faced accusations of rigging elections for years. Last year, Bernie Sanders (I-VT) blasted his own party, accusing Democratic leaders of rigging elections and shutting down any semblance of a fair primary process. He even agreed with the assessment that the party has become “a threat to democracy.”

Sanders showed real grassroots momentum in his 2016 and 2020 presidential bids, but party effectively blocked his path to victory both times. The perception that entrenched establishment figures moved to stop him from upending the status quo has never really gone away — and Sanders himself all but confirmed it. 

Tyler Durden Fri, 02/27/2026 - 18:00

Border, Ballots, Birthrights: Top Supreme Court Cases To Watch

Zero Hedge -

Border, Ballots, Birthrights: Top Supreme Court Cases To Watch

Authored by Joseph Lord, Stacy Robinson, Troy Myers via The Epoch Times (emphasis ours),

The Supreme Court is poised to hear arguments on major constitutional and legal issues over the next several months.

The Supreme Court in Washington on Feb. 21, 2026. Madalina Kilroy/The Epoch Times Birthright Citizenship

One of the term’s most consequential cases arises from a class-action lawsuit alleging that the president violated the 14th Amendment by withholding citizenship for children of illegal immigrants. The case, Trump v. Barbara, is set for oral argument on April 1.

The clause of the 14th Amendment at issue guarantees citizenship to people “born or naturalized in the United States, and subject to the jurisdiction thereof.”

Trump, on his first day back in office, issued an executive order that calls for officials to deny citizenship documents to children if their mothers were unlawfully or temporarily present in the United States, and their fathers were not citizens or lawful permanent residents.

In 2025, multiple lower courts issued rulings blocking implementation of the executive order, titled “Protecting the Meaning and Value of American Citizenship.” The courts said that it violated the amendment and the Supreme Court’s decision in United States v. Wong Kim Ark.

In the 1898 case, the Supreme Court said the amendment guaranteed citizenship for a Chinese man whose parents were permanently domiciled in the United States but were not U.S. citizens.

Lower courts have said that the decision’s reasoning lent itself to guaranteeing citizenship for the children of illegal immigrants. The administration disagreed, arguing that the decision and the 14th Amendment indicated parents should have some kind of allegiance to the United States.

Attorneys also told the Supreme Court that even if Trump’s order complied with the 14th Amendment, it violated the Immigration and Nationality Act. That law uses the amendment’s language to guarantee citizenship for people “born in the United States, and subject to the jurisdiction thereof.”

The attorneys said that law was understood in the 20th century to include the children of illegal immigrants. The Justice Department said instead that the law’s meaning “depends on what the Citizenship Clause actually means, not what Congress thought it meant.”

The entrance to the U.S. Citizenship and Immigration Services location where a New York City Council data analyst and Venezuelan national was detained by Immigration and Customs Enforcement while making an immigration appointment, in the Long Island town of Bethpage, N.Y., on Jan. 14, 2026. Shannon Stapleton/Reuters Mail-In Ballots

In Watson v. Republican National Committee (RNC), the Supreme Court will consider whether states can count mail-in ballots received after Election Day.

This case has its origins in 2020, when Mississippi amended its state law to authorize counting mail-in ballots received up to five days after Election Day, so long as they were postmarked by that day. In 2024, the RNC and others alleged Mississippi violated a federal law that defines “Election Day” as “the Tuesday next after the first Monday in November.”

Mississippi Secretary of State Michael Watson, meanwhile, argued that the Elections Clause of the Constitution—which broadly allows states to choose the “manner” of their elections—protected the law.

After the RNC’s initial suit in 2024, a district court ruled in favor of Mississippi. Later, the U.S. Court of Appeals for the Fifth Circuit overturned that ruling, prohibiting Mississippi from accepting late-received ballots.

The Supreme Court accepted Mississippi’s appeal and scheduled oral arguments for March 23.

Election workers receive drop boxes for hand delivered mail-in ballots for processing at the Clark County Election Department after polls closed in North Las Vegas on Nov. 5, 2024. David Becker/Getty Images Gun Rights for Drug Users

Ali Danial Hemani was charged in 2023 with violating a federal law that prohibited firearm possession by individuals who unlawfully use controlled substances.

Hemani, who admitted to smoking marijuana approximately every other day, challenged his indictment, arguing that the wording of the statute was too vague and violated the Second Amendment.

In the case U.S. v. Hemani, the Supreme Court is set to reexamine its 2022 precedent in New York State Rifle and Pistol Association v. Bruen. There, the court said laws restricting the right to bear arms are constitutional only when they are “consistent with the Nation’s historical tradition of firearm regulation.”

The government has argued that the law at issue in Hemani’s case is “analogous to founding-era laws restricting the rights of drunkards.” Hemani’s attorneys disputed that comparison, arguing that “habitual drunkard” laws targeted people who regularly abused alcohol, not people who regularly drugs or alcohol, such as Hemani.

Oral arguments for the case are scheduled for March 2.

A visitor inspects a gun at the National Rifle Association Annual Meeting & Exhibits at the Kay Bailey Hutchison Convention Center in Dallas on May 17, 2024. Justin Sullivan/Getty Images Asylum at US–Mexico Border

The Supreme Court is set to hear oral argument on March 24 over the Obama administration’s policy of turning away asylum-seekers before they cross the southern border.

Although the Biden administration rescinded that policy, the Supreme Court is reviewing the results of prior litigation with consequences for future border enforcement. The main question in the case, Noem v. Al Otro Lado, is whether migrants have officially arrived in the United States if they stop on the Mexican side of the border.

A group of 13 asylum-seekers and an immigrants’ rights organization sued in 2017. They  alleged the policy violated federal laws allowing migrants to apply for asylum and to be inspected by an immigration officer if they arrive in the country.

One of the laws states that “any alien who is physically present in the United States or who arrives in the United States” can apply for asylum regardless of his or her legal status.

The Justice Department told the Supreme Court that the plain meaning of arrival meant physical presence. It is asking the justices to reverse a 2024 decision by the U.S. Court of Appeals for the Ninth Circuit.

In a 2–1 decision, it ruled that noncitizens are considered to have arrived if they encounter a border official. The court said, among other things, that one of the relevant laws distinguished between physical presence and arrival, suggesting that some arrivals might not be physically present.

U.S. Border Patrol agents process illegal immigrants from Central America near Roma, Texas, on Aug. 17, 2016. John Moore/Getty Images FCC Penalties

The Supreme Court will hear two cases on April 21 involving the Federal Communications Commission (FCC) imposing fines on wireless carriers for sharing customer location data without consent.

In 2024, the FCC imposed nearly $200 million in fines on major telco firms, including $57 million on AT&T and nearly $47 million on Verizon.

The companies argued that the fines, which were investigated, decided, and ordered in-house at the FCC, violate their right to a jury trial under the Seventh Amendment.

Their cases—FCC v. AT&T and Verizon Communications v. FCC—are building off of a landmark decision from 2024. In that case, the Supreme Court said the Securities and Exchange Commission had to provide a jury trial if it wanted to impose civil penalties.

For the FCC, federal law allows the agency to issue a forfeiture order with a penalty. In response, the company can either pay the penalty and seek review in an appeals court, or it may refuse to pay, prompting the agency to potentially refer the issue for prosecution in a jury trial.

Because Verizon chose the first option, the U.S. Court of Appeals for the Second Circuit said its rights weren’t violated. Rather, it passed on its opportunity for exercising those rights. AT&T similarly paid the penalty, but the Fifth Circuit said the prospect of a future trial wasn’t enough.

Read the rest here...

Tyler Durden Fri, 02/27/2026 - 17:40

Iran Reportedly Agrees To Give Up Nuclear Material In Breakthrough: 'Peace Deal Within Reach'

Zero Hedge -

Iran Reportedly Agrees To Give Up Nuclear Material In Breakthrough: 'Peace Deal Within Reach'

Update(1737ET): Absolutely huge late Friday developing news, if it's confirmed and assuming it sticks, via CBS: "Iran has agreed to give up its stockpile of enriched material - zero accumulation - and allow for full verification by the IAEA of its nuclear program according to US-Iran talks mediator, Oman's foreign minister Badr al Busaidi."

The Iranian side also seems to be confirming its willingness to make this significant concession, also to stave off a massive US attack, given the immense build-up of Pentagon assets in the region. According to more breaking details via CBS:

Negotiators from the U.S. and Iran have made "substantial progress" toward a deal to curb Iran's nuclear program, Omani Foreign Minister Badr Albusaidi told CBS News on Friday, as President Trump considers strikes on Iran.

Albusaidi — who has mediated several rounds of U.S.-Iran talks over the last month — told "Face the Nation" moderator Margaret Brennan that a "peace deal is within our reach." 

He said Iran has agreed that it will "never, ever have … nuclear material that will create a bomb," which he called a "big achievement." The country's existing stockpiles of enriched uranium would be "blended to the lowest level possible" and "converted into fuel, and that fuel will be irreversible," according to Albusaidi.

President Trump had just before the headline hit struck a cautious and ambiguous tone, describing that Iran "does not want to go quite far enough" and for now it's "too bad" as the White House is not yet "happy with Iran negotiations".

It's still very premature at this point to point to any kind of 'done deal' - but this at least signals US strikes are unlikely to come this weekend, also as Rubio is still expected in Israel early next week.

But the pressure campaign is continuing, and with this new, strange designation - which no one will really notice:

* * *

After the third round of indirect US-Iran talks held in Geneva on Thursday, Omani Foreign Minister Badr Al-Busaidi - who was the chief mediator - cited "significant progress" - which echoed the generally positive assessment of the Iranian side.

Iran's Foreign Minister Abbas Araghchi initially declared, "We reached agreement on some issues, and there are differences regarding some other issues. It was decided that the next round of negotiations will take place soon, in less than a week."

He acknowledged that it was the most "intense" round yet, but still a "mutual understanding" was reached to "continue to engage in a more detailed manner on matters that are essential to any deal – including sanctions termination and nuclear-related steps." But there has been no deal, and Washington's attack plans are still in preparation phase.

via AFP

It must be recalled that President Trump said a week ago Tehran had two weeks to agree to Washington's terms, and so the clock is ticking as the huge American military build-up in the region continues.

The latest statement by FM Araghchi issued Friday lays out that the Trump administration must drop its "excessive demands" for a nuclear agreement to take place.

"Success in this path requires seriousness and realism from the other side and avoidance of any miscalculation and excessive demands," Araghchi reportedly said in a call with Egyptian Foreign Minister Badr Abdelatty.

There are reports that Washington may have actually dropped the ballistic missile reduction demand (or is at least not pressing it), but is still demanding zero enrichment, and that all remaining enriched uranium in Iran's stockpile be transferred to US custody. In the process, the US wants to see Iran further dismantle the damaged nuclear sites of Fordow, Natanz and Isfahan.

The Wall Street Journal reported soon after Thursday's talks wrapped up that no deal was reached, and that Tehran negotiators balked at the nuclear demands.

"Iran rejected the idea of transferring uranium stockpiles abroad. It also has objected to ending enrichment, dismantling its nuclear facilities and permanent restrictions on its program, Iranian state media and people familiar with the talks said," WSJ wrote.

Are the negotiations just a smokescreen to put all military assets in place before the big (unprovoked) attack?

With the next round (the fourth) of talks set to be held in Vienna this coming Wednesday, there remains the possibility that Trump could order some kind of strikes between now and then. Such an operation could be 'limited' - but there's no guarantee that Iran's response will also be limited in terms of the inevitable retaliation.

Tyler Durden Fri, 02/27/2026 - 17:39

SpaceX Readies IPO Paperwork For March, Targeting $1.75 Trillion Valuation

Zero Hedge -

SpaceX Readies IPO Paperwork For March, Targeting $1.75 Trillion Valuation

SpaceX is preparing to confidentially file for an initial public offering as early as next month, people familiar with the matter said, advancing plans for what could become the largest listing ever, according to Bloomberg.

The Starbase, Texas-based rocket and satellite company is expected to submit draft IPO paperwork to the US Securities and Exchange Commission in March, potentially positioning it for a June debut. That timing would make it the first in a possible wave of mega-offerings, with OpenAI and Anthropic PBC possibly following.

Deliberations are ongoing and plans could shift, the people cautioned, noting the filing could still be postponed.

Bloomberg writes that some of the people said SpaceX may pursue a valuation above $1.75 trillion, speaking anonymously because discussions are private. The company recently acquired xAI, Elon Musk’s AI venture, in a February deal valuing the combined business at $1.25 trillion, Bloomberg News reported. A confidential filing would allow SpaceX to receive regulatory feedback and revise disclosures before they are made public. A representative for the company did not immediately comment.

The IPO could raise as much as $50 billion, which would exceed Saudi Aramco’s record $29 billion offering in 2019. At a $1.75 trillion valuation, SpaceX would rank behind only five members of the S&P 500 Index — Nvidia Corp., Apple Inc., Alphabet Inc., Microsoft Corp. and Amazon.com Inc. — and would surpass Meta Platforms Inc. as well as Musk’s Tesla Inc. by market value.

In a memo, SpaceX said it is preparing for a possible 2026 IPO to finance an “insane flight rate” for its developing Starship rocket, space-based artificial intelligence data centers and a lunar base. The company has tapped Bank of America Corp., Goldman Sachs Group Inc., JPMorgan Chase & Co. and Morgan Stanley for senior underwriting roles and is weighing a dual-class share structure that could grant insiders, including Musk, enhanced voting control, Bloomberg News has reported.

The most prolific rocket launcher globally, SpaceX leads the industry with its Falcon 9 vehicle, transporting satellites and astronauts into orbit. It is also building toward a lunar foothold before ultimately pursuing Musk’s long-stated goal of sending humans to Mars.

Through Starlink — a vast network of low-Earth orbit satellites — the company has become the dominant provider of space-based internet, serving millions worldwide.

Tyler Durden Fri, 02/27/2026 - 17:20

'Sense-Making Seems Impossible...'

Zero Hedge -

'Sense-Making Seems Impossible...'

Authored by James Howard Kunstler,

The Man Who Might Wreck the Country

“That a government’s primary responsibility is to its citizens should not be a controversial proposition.”

- Coddled Affluent Professional on X

The zeitgeist is a rough beast, hard to ride as it slouches into the unknown.

Our country is trying to hang on while a party of goblins vexes and needles the beast from behind, and you cannot make them stop.

Sense-making gets to seem impossible.

We don’t have an explanation from Senate Majority Leader John Thune as to why he will not do what is within his power to do: pass election reform, known as the SAVE Act, by changing the filibuster procedure. At midweek Sen. Thune said Republicans were “not unified on pursuing a talking filibuster.” Understand that bringing back a real filibuster, with continuous speech in the well of the Senate, only requires the Majority Leader’s say-so, meaning Mr. Thune is prevaricating, concealing the truth.

Senator Mitch McConnell shadows Majority Leader John Thune

Which might be that he does not want to pass election reform. It appears he wants to set up the midterm elections with the now-familiar kit of unverifiable mail-in ballots, millions of non-citizen motor-votes, and dragged-out vote-counting so that Democrats will seize control of the House (if not the Senate) in order to crank-up the impeachment machine again and finally get rid of President Trump. It does not look like anything else, certainly not any kind of cunning game.

What might change that would be an FBI analysis of the 2020 election year ballots, voter rolls, and vote tabulation tapes recently extracted from the Fulton County, Georgia, Elections Hub, leading to indictments. They’ve had this mass of material for a month. There was already plenty of preliminary evidence of fraud from earlier investigations — which is how come U.S. Magistrate Judge Catherine Salinas of the U.S. District Court for the Northern District of Georgia found probable cause to approve a search warrant for the FBI.

They must have an idea by now of what the evidence shows. It’s not that complicated.

There’s no fixed statutory timeline for a referral. The FBI can pass along the matter to the DOJ for prosecution whenever they determine the evidence is sufficient. Referrals are customarily secret, as they occur during ongoing investigations and involve sensitive, non-public information. DOJ policies emphasize confidentiality in pre-charging stages to protect investigations, potential witnesses, sources, and the integrity of any future prosecution. In general, the public learns of an FBI referral only indirectly — through later developments like indictments, or news media reporting via “sources.”

Criminal referrals on the Fulton County case might have already been made, and indictments might be forthcoming. That would have to prompt some kind of attitude adjustment for Senate Majority Leader Thune on behalf of election reform. It could happen at any time. It would at least put Senator Thune between a rock and a hard place. It’s well-understood that at least 80-percent of people polled want the SAVE Act passed.

There is no debating position that reasonably argues against it. You might have noticed that Mayor Mamdani of New York City called for volunteers to shovel snow in the latest blizzard, and that anyone who stepped-up was required to show two types of photo ID to work the job. Yet, Mamdani, a member of the Democratic Socialists of America (DSA), aligns with the party’s longstanding opposition to voter ID laws, including the SAVE Act. No need to go figure on that. It’s just arrant dishonesty.

The president emphasized clearly why the Democrats are against election reform in this week’s State of the Union speech: because the party can only win elections by cheating, by employing massive systematic fraud. He said it so that everybody tuned-in could hear it, and the Democrats just sat stone-faced on their side of the chamber — and that was only minutes after they refused to stand for the proposition that the government’s main job was to act in the interest of American citizens.

It’s unlikely that the president can alter election procedure himself, through executive order or by declaring some kind of national emergency. Any attempt would be instantly litigated and shut down by the judiciary. The Constitution assigns primary authority over the “times, places and manner” of elections to the states (with only Congress able to alter them by law).

Either Senator Thune will do his duty or not. He must have some self-awareness that he risks going down as the greatest villain in our history, the man who wrecked the country. Does anything like personal honor still exist in this land?

Views expressed in this article are opinions of the author and do not necessarily reflect the views of ZeroHedge.

Tyler Durden Fri, 02/27/2026 - 17:00

Watch: DSNY Heads Supplicate To Allah With Mayor Mamdani In Coercive Islamic Ritual

Zero Hedge -

Watch: DSNY Heads Supplicate To Allah With Mayor Mamdani In Coercive Islamic Ritual

Authored by Steve Watson via Modernity.news,

New York City’s sanitation leadership has been caught on camera participating in an Islamic supplication ritual led by Mayor Zohran Mamdani, a move critics slam as a blatant push toward Islamification.

The scene, captured during a gathering with officers, shows DSNY brass raising hands in dua—a form of prayer to Allah—before wiping them over their faces as instructed in Islamic hadith, all prior to sharing a meal.

While some mistakenly reported those involved as being NYPD, their core point is still salient. Why are the leaders of the DSNY engaging in such behaviour?

New York City’s sanitation leadership has been caught on camera participating in an Islamic supplication ritual led by Mayor Zohran Mamdani, a move critics slam as a blatant push toward Islamification.

Another highlighted the broader implications:

Another highlighted the broader implications: 

The videos, which have racked up views on X, depict the DSNY officials in uniform engaging in the ritual alongside Mamdani, who has long been a controversial figure for his far-left stances and ties to anti-Israel activism.

The development echoes the growing concerns over cultural shifts in New York City, where unchecked immigration and progressive policies have amplified Islamic practices in public spaces. 

Just days ago, we covered the massive Ramadan prayer gathering in Times Square that drew comparisons to an “invasion” and sparked backlash from figures like Professor Gad Saad, who quipped sarcastically about the event in the shadow of 9/11.

The Times Square spectacle included chants of “Allahu Akbar” amid the iconic neon lights.

Now, with DSNY leaders openly partaking in such rituals, those worries appear more justified than ever.

Critics argue this isn’t mere inclusivity but a power play, pressuring public servants to conform or risk career stagnation. 

In a city already grappling with rising crime and migrant-related chaos, diverting police focus toward religious rituals under a radical mayor raises red flags about priorities.

Mamdani, elected amid New York’s shift toward socialist-leaning Democrats, has pushed policies that prioritize globalist agendas over traditional American values. His leadership now seemingly extends to spiritual mandates, blurring the lines between governance and religious coercion.

This ritual joins a pattern of events eroding the city’s secular fabric, from prayer mats in public squares to potential pet bans rooted in foreign doctrines. As one observer put it in our earlier coverage, these gatherings represent a “cancer” weaponizing free speech while labeling opposition as racist.

With over 285,000 Muslims in NYC, such events may become normalized, but pushback is mounting. From Rep. Fine’s legislative efforts to online outcry, Americans are signaling they won’t surrender their freedoms without a fight.

If this trend continues unchecked, the Big Apple could mirror Europe’s capitulation to radical elements, where Sharia patrols and no-go zones have taken root.

Your support is crucial in helping us defeat mass censorship. Please consider donating via Locals or check out our unique merch. Follow us on X @ModernityNews.

Tyler Durden Fri, 02/27/2026 - 16:20

Top Nike Distributor Sounds Profit Alarm As BNP Says China Remains "Red Flag"

Zero Hedge -

Top Nike Distributor Sounds Profit Alarm As BNP Says China Remains "Red Flag"

Nike has reported declining quarterly sales in China, where demand remains under pressure from mounting macroeconomic headwinds, and the brand continues to lose market share to newer competitors. This weakness has dented the shoemaker's broader turnaround efforts and suggests a much-needed reset in the Chinese market.

The stock is down 65% from its 2021 peak and is now trading at 2017 levels, as investors hope management will accelerate a turnaround plan to reverse this devastating multi-year bear market. However, a profit warning from a major distribution channel and commentary from BNP Paribas analyst Laurent Vasilescu only suggest more trouble ahead.

On Friday, Pou Sheng, a major distribution and retail channel for Nike in Greater China, warned that its 2025 attributable profit will likely plunge 57% year over year to RMB 211 million, while revenue is expected to decline 7.2% to RMB 17.1 billion.

Management blamed "operational deleverage, due to intense discount pressures and a decline in sales, which significantly constrained the Group's profitability."

"The mainland China market encountered subdued consumer confidence and elevated industry inventory levels, leading to aggressive promotional activities and impacting the Group's top-line performance," the supplier wrote in a profit warning update on Friday.

The supplier continued, "Its retail stores experienced a further slowdown in sales momentum, driven by sustained weakness in foot traffic and a mid-teens percentage decline in same-store sales. Lower-tier cities also saw sluggish foot traffic, substantially undermining the performance of its sub-distributor channels."

BNP Paribas analyst Vasilescu said Pou Sheng and Top Sports are the two main operators of Nike's roughly 5,000 mono-branded stores in China and noted that Top Sports also faces mounting structural pressure.

He noted this reinforces his long-term bearish view on Nike, saying his top concerns, overreliance on classic franchises, a flawed DTC strategy, and China weakness, are all continuing to unfold.

The BNP Paribas analyst downgraded Nike three years ago on the premise that China is a "red flag" for two major reasons: overdependence on classic franchises and a DTC strategy that is not working.

Vasilescu now sees a chance that Nike could announce a major China restructuring when it reports fiscal 3Q results on April 2.

He rates Nike as underperform with a $35 price target. Bloomberg data show Nike still has mostly bullish Wall Street coverage overall, with 28 buys, 14 holds, and 2 sells, and an average price target of $76.

Vasilescu expects Adidas earnings next week to show "strong" China trends, implying "Nike weakness."

Tyler Durden Fri, 02/27/2026 - 15:45

Trump: "Maybe We'll Have A Friendly Takeover Of Cuba"

Zero Hedge -

Trump: "Maybe We'll Have A Friendly Takeover Of Cuba"

President Trump told reporters on Friday afternoon that the U.S. could pursue a "friendly takeover" of Cuba, a comment from the president that comes as his administration moves to secure the Western Hemisphere and intensifies pressure on the communist regime in Havana through a crude-oil blockade.

"The Cuban government is talking with us. They're in a big deal of trouble, as you know. They have no money, no anything right now, but they're talking with us, Trump told reporters on the White House lawn. "Maybe we'll have a friendly takeover of Cuba.

Trump repeated, "We could very well end up having a friendly takeover of Cuba."

He continued, "After many, many years, we have had a lot of years of dealing with Cuba. I've been hearing about Cuba since I was a little boy. But they're in big trouble. And something very well - and something positive could happen."

Earlier this week, the United Nations' top official for Cuba warned that daily life on the island was rapidly deteriorating, with massive strains on healthcare, water services, and food distribution.

There are reports that the Cuban government has between six and seven weeks of fuel left before a major power blackout, and what could only be described as a total economic collapse unfolds.

One of the most interesting stories this week was about a Florida-registered speedboat carrying 10 Cuban nationals residing in the U.S., which entered Cuban territorial waters armed with assault rifles, body armor, improvised explosive devices, camouflage uniforms, and telescopic sights, in what the government says was a "foiled armed infiltration" into the Caribbean island nation.

Cuba reported that its border guards killed four and wounded six on the speedboat and said the group was planning to "carry out an infiltration for terrorist purposes."

U.S. Secretary of State Marco Rubio commented on the incident, saying, "What I'm telling you is we're going to find out exactly what happened and who was involved. We're not going to just take what somebody else tells us. I'm very confident we will be able to know the story independently."

Last week, in the Western Hemisphere, Mexican Army Special Forces' decapitation strike against the Jalisco New Generation Cartel (CJNG) killed Nemesio "El Mencho" Oseguera Cervant. This operation was aided by U.S. intelligence and shows ongoing dismantling of the Mexican cartel command and control networks appears to be gaining momentum.

By late week, the State Department issued a release stating that the U.S. government would offer $10 million for the capture of two alleged Sinaloa Cartel bosses in Tijuana: brothers Rene "La Rana" Arzate Garcia and Alfonso "Aquiles" Arzate Garcia.

Let's not forget that last month's high-stakes U.S. Delta Force raid to capture far-left Venezuelan leader Nicolás Maduro was part of the Trump administration's broader effort to reshape the Western Hemisphere, moving it away from left-wing communist regimes and aligning it more closely with U.S. interests.

Related:

Latest on Polymaket...

Polymarket odds of a US invasion of Cuba this year spiked to nearly 20% after Trump's comments.  

Tyler Durden Fri, 02/27/2026 - 15:25

DOE Closes Massive $26 Billion Loan For Southern Co.

Zero Hedge -

DOE Closes Massive $26 Billion Loan For Southern Co.

Here comes more of those “Hundreds of Billions”

The DOE announced Wednesday that its Office of Energy Dominance Financing (EDF) has closed a $26.54 billion loan package (the largest in the agency’s history) to two Southern Company subsidiaries.

Georgia Power will receive $22.4 billion and Alabama Power $4.1 billion. The roughly 30-year loans, drawable through September 2033, will finance more than 16.7 GW of reliable generation and transmission upgrades across the Southeast. This new loan dwarfs the previous billion dollar loan recently secured by Constellation for Three Mile Island. 

The portfolio includes approximately 5.3 GW of new natural-gas capacity, 6.3 GW of nuclear improvements through uprates and license renewals at existing plants (including Vogtle), 1 GW of hydropower modernization, battery energy storage systems, and more than 1,300 miles of new transmission lines and grid enhancements.

DOE and Southern project the financing will deliver more than $7 billion in electricity cost savings to customers in Georgia and Alabama over the life of the loans. Once fully drawn, the lower, taxpayer-backed interest rate is expected to cut Southern’s annual interest expense by more than $300 million, costs that would otherwise be recovered from ratepayers. 

Said another way, the burden for upgrading the grossly under-maintained grid will be passed from the local ratepayer to the federal taxpayer. Yay?

“These investments will support the extraordinary and transformative projected growth we're seeing across our company” Southern Chairman and CEO Chris Womack said. “These loans will help lower the cost of investments in our grid that will enhance reliability and resilience for the benefit of our customers”

Energy Secretary Chris Wright framed the deal as a direct fulfillment of the Trump administration’s energy policy. “Thanks to President Trump and the Working Families Tax Cut, the Energy Department is lowering energy costs and ensuring the American people have access to affordable, reliable, and secure energy for decades to come”.

The timing aligns with explosive load growth in the region. Georgia Power alone has secured roughly 7 GW of large-load commitments, largely from data centers and manufacturing, and is pursuing far more. Latitude notes the loans were restructured after the election to emphasize additional gas-fired resources alongside nuclear and transmission. It’s exactly the infrastructure needed to meet hyperscaler demand that utilities say private markets could not finance at comparable rates.

For taxpayers, the structure is debt, not a grant. In theory, the Treasury could break even or better versus Southern borrowing at higher private-market rates. DOE officials, including EDF Director Gregory Beard, stress that individual projects will undergo viability reviews to protect ratepayers and the public balance sheet.

Tyler Durden Fri, 02/27/2026 - 15:00

AI Takeover Complete: Data Center Construction Surpasses Office Construction For The First Time

Zero Hedge -

AI Takeover Complete: Data Center Construction Surpasses Office Construction For The First Time

On August 19, 2025 we published what we thought was "the most insane chart", one showing that value of data center construction was about to surpass the value of office construction. We added that we would reach the intersection point within 6 months. 

We were right: earlier today the US published the much-delayed Construction Spending report for the month of December. It confirmed, that just as expected, the value of Data Centers constructed in the US has officially surpassed the value of Offices, a historical and very symbolic crossover which makes it clear that going forward machines, and not human workers will provide the bulk of US productivity. 

Source: Census Bureau

And while the long-term trend here is assured - at least until there is a new luddite revolution and (soon to be unemployed) humanity revolts against its new chatbot masters, burning down every data center in sight - there may be some near-term volatility. That's because according to more real-time measures, real estate brokerage CBRE reported that construction of new data centers in the US fell for the first time since 2020 despite soaring demand for artificial intelligence computing capacity, as developers face delays in permitting, zoning and power procurement.

Capacity under construction fell to 5.99 gigawatts at the end of 2025 from 6.35 gigawatts at the end of 2024. Still, in light of the layoff tsunami, it is certain that construction of offices has slowed down even more thus keeping data centers in the pole position. 

The construction delays and faster long-distance networks are driving development to move outside traditional data center sites like Northern Virginia, Gordon Dolven, CBRE’s data center research director, said in the report. The good news is that overall vacancy rate in primary markets fell to a record low 1.4% at year-end.

“Combined with growing interest in markets that offer available land and power, this is spurring investment beyond traditional hubs and reshaping the North American data center market,” Dolven said.

Meanwhile, as we warned last year, local pushback against massive AI data center projects has intensified in recent months, with the tide turning from welcoming the economic benefits of major construction projects to scrutinizing their resource-intensiveness and the associated soaring electricity prices. 

Last week, Illinois Governor JB Pritzker sought to temporarily halt incentives for data centers in a bid to contain soaring power costs Bloomberg reported. An Oracle Corp. site in New Mexico that scored a package of tax incentives and support from government-backed bonds has prompted protests largely focused on its potential environmental impact. And tensions have flared in Northern Virginia, where some residents are now looking to flee what’s become one of the largest data center hubs in the world.

Still, these are just growing pains and once behind the meter power sources are mandated, and small modular reactors become an everyday phenomenon, data center construction will resume its surge. That's because AI demand is forecast to require $3 trillion in data center investment, including related power supplies, according to estimates from Morgan Stanley. New tenants absorbed a record 2.5 million gigawatts in 2025, up 38% from a year earlier, CBRE said.

Construction underway fell 29% in Northern Virginia, followed by a 15% drop in Hillsboro, Oregon, and a 14% decline in Silicon Valley, CBRE reported. Projects soared 169% in Chicago and 15% in Dallas-Fort Worth.

Atlanta had more than 2 gigawatts of projects under construction, ahead of 1.9 gigawatts in Northern Virginia, in the second half of 2025.

Tyler Durden Fri, 02/27/2026 - 13:45

Biden Admin 'Invited' Fani Willis To Get Lucrative Grant While She Prosecuted Trump

Zero Hedge -

Biden Admin 'Invited' Fani Willis To Get Lucrative Grant While She Prosecuted Trump

Authored by Luis Cornelio via Headline USA,

The DOJ under the Biden administration “invited” disgraced Fulton County District Attorney Fani Willis to apply for a generous taxpayer-funded grant as she prosecuted President Donald Trump

The arrangement came to light after Willis referenced the grant in December 2022 correspondence with DOJ Senior Advisor Scott Pestridge of the Office of Justice Programs.  

The document was first revealed on Thursday by Just the News through open records requests filed by the outlet and nonprofit America First Legal. 

According to Just the News, Willis referenced the Office of Justice Programs’ Community-Based Violence Intervention and Prevention Initiative grant, which ultimately awarded her office $2 million. 

The timing of the award coincided with her office’s aggressive prosecution of Trump, who at the time was running for president against then-President Joe Biden

“I want to document your recognition of our progress and services provided with dynamic partners, as we complete sole source steps for our new grant award, a grant in which you invited us to apply,” Willis wrote to Pestridge, according to Just the News. 

Willis described the award as a “sole source” grant, indicating her office faced no competing applicants. 

The $2 million award was part of roughly $18 million the Biden DOJ provided to Willis’s office between 2021 and 2024.  

She claimed the funds would help “at-risk” youth avoid falling into crime or assist with reintegration into society, according to Just the News. 

Documents released by Willis’s office in response to open records requests show her office maintained consistent coordination with the DOJ after Trump left office in 2021, when she became one of several left-leaning prosecutors pursuing cases against him.  

She later charged Trump under Georgia’s RICO statute, accusing him of attempting to subvert the 2020 election results in the state. 

Her case ultimately unraveled after it was revealed that she had engaged in an affair with Nathan Wade, the special prosecutor she selected to lead the prosecution.  

Willis took vacations with Wade while her office paid him, later claiming she reimbursed him in cash, though she never produced receipts to substantiate those payments. 

Both Wade and Willis were ultimately disqualified from leading the case. After Trump returned to office in 2025, the prosecution was effectively nullified. 

Tyler Durden Fri, 02/27/2026 - 13:05

Kristi Noem Says DHS Staffers Put Spyware On Her Phone And Laptop To Record Meetings

Zero Hedge -

Kristi Noem Says DHS Staffers Put Spyware On Her Phone And Laptop To Record Meetings

Authored by Debra Heine via American Greatness,

Department of Homeland Security (DHS) Secretary Kristi Noem revealed on Thursday that certain DHS staffers had allegedly installed spyware on her phone and computer, as well as on devices belonging to other political appointees.

“You wouldn’t even believe what I’ve found since I’ve been in this department,” Noem told conservative podcaster Patrick Bet-David .

Noem said she discovered the spyware last year with the assistance of former DOGE chief Elon Musk and his team.

“They helped me identify that some of my own employees in my department had downloaded software on my phone and my laptop to spy on me to record our meetings,” Noem said.

Bet-David was flabbergasted by the bombshell revelation.

Stop it!” he exclaimed. Wow!”

“They had done that to several of the politicals,” Noem added.

The DHS Sec. said that if it wasn’t for Musk’s technology experts, there would probably still by spyware on DHS laptops and phones.

Noem also disclosed that a SCIF (Sensitive Compartmented Information Facility) was just recently discovered containing files “no one knew existed.”

“An employee walked by a door and wondered what it was and started asking questions,” she explained, adding that when Trump officials went inside to check it out, they found “individuals working there that had secret files that nobody knew about” on controversial topics.

Noem told Bet-David that the secret files were turned over to attorneys for review.

The secretary went on to say she has seen “eye-opening” data from Customs and Border Protection (CPB) and the National Laboratories regarding the scientists who traveled to the infamous Wuhan Institute of Virology in China to conduct gain of function experiments on coronaviruses.

“It was eye-opening,” she said.

The FBI and Department of Energy (DOE) have determined with moderate/low confidence that COVID-19 leaked from the Wuhan lab.

Noem told Bet-David that she never doubted that the “deep state” (entrenched liberal resistance within the bureaucracy) existed, but never would have guessed that it was a bad as it is.

“I’m still every day trying to dig out people who don’t love America, not just in this department, but throughout the federal government,” she said.

Tyler Durden Fri, 02/27/2026 - 12:25

Brutal: Democrats Walked Straight Into This

Zero Hedge -

Brutal: Democrats Walked Straight Into This

Authored by Steve Watson via Modernity.news,

A new advertisement from conservative group American Sovereignty hammers Democrats for staying seated during President Trump’s State of the Union call to prioritize American citizens over illegal aliens, using footage that lays bare their priorities.

The ad, which dropped Thursday, features Trump stating, “If you agree with this statement, then stand up and show your support: The first duty of the American government is to protect American citizens, not illegal aliens.” 

Republicans rose in applause while Democrats remained glued to their seats, with overlays labeling the divide and accusing Dems of siding with “illegal immigrant criminals.” 

The spot cuts to Trump’s “These people are crazy” remark before closing with “Republicans are for you.”

As we highlighted in previous coverage, Democrats’ behavior during the SOTU revealed whose side they’re on—and it’s not the American people. 

Many boycotted the event or sat through applause for victims of illegal alien crime, exposing their allegiance to open borders over citizen safety.

They doubled down afterward, with figures like Debbie Wasserman Schultz labeling the speech “absolutely revolting” for prioritizing Americans.

Even more telling, Rep. Rashida Tlaib appeared to chant “KKK” while Republicans chanted “USA!”—a moment ripe for its own ad.

The ad’s release comes as Republicans eye midterms, with a GOP spokesperson telling the Washington Examiner that vulnerable House Democrats should “get comfortable re-watching the moment they revealed they’re nothing more than America-hating scums who stayed glued to their seats.”

The Democrats handed Republicans a raft of campaign material just in time for the midterms. They don’t even try to hide their hate for Americans

If they can’t stand for ‘protect Americans first,’ what exactly are they standing for?

This ad marks the first in a seven-figure blitz targeting battleground states like North Carolina, Michigan, and Georgia, per Politico, aiming to leverage the SOTU optics for electoral gains.

Trump himself called out Democrats during the speech, saying “you should be ashamed of yourself” for not standing, a moment echoed in White House criticisms and conservative commentary.

As midterms loom, this footage serves as a stark reminder: Democrats’ refusal to stand for American priorities hands Republicans ammunition to rally voters against policies that put citizens last.

Your support is crucial in helping us defeat mass censorship. Please consider donating via Locals or check out our unique merch. Follow us on X @ModernityNews.

Tyler Durden Fri, 02/27/2026 - 11:45

Pakistan Declares 'All-Out War' Against Afghanistan, Hundreds Dead In Overnight Clashes With Taliban

Zero Hedge -

Pakistan Declares 'All-Out War' Against Afghanistan, Hundreds Dead In Overnight Clashes With Taliban

Overnight, Pakistan launched airstrikes across Afghanistan, including targets in the capital of Kabul, soon after which Pakistan's Defense Minister Khawaja Asif by Friday morning declared an "all-out war" between the two countries.

Hours prior to the commencement of airstrikes and heavier clashes, Afghan Taliban forces reportedly attacked Pakistani border troops Thursday night in retaliation for Pakistani airstrikes earlier in the week.

A Pakistani military spokesman has said that 274 Taliban fighters have been killed and more than 400 injured by Pakistani strikes, adding that 74 Taliban posts were destroyed and 18 captured - and counting.

Taliban near the Torkham border, via AFP.

The Taliban for its part has said that 55 Pakistani soldiers were killed and 19 posts seized. Kabul have acknowledged Taliban fighters killed, 11 wounded, and 13 civilians injured in the mountainous northwest border region where the line of fighting is concentrated.

Since the Taliban returned to power in 2021, relations between Afghanistan and Pakistan, which share the disputed 1,600-mile Durand Line, have shifted from cautious engagement to open hostility. The history has been marked by shifting from one-time allies to on-and-off again enemies. Many analysts are pointing to 'blowback' for Pakistan after sponsoring the Taliban's rise in the first place, decades ago (which also had the help of the CIA in 'Operation Cyclone').

Islamabad accuses Afghanistan of sheltering Tehrik-i-Taliban Pakistan (TTP) militants who carry out cross-border attacks.

Analysts say the latest escalation marks the first time Pakistan has directly targeted Taliban government sites, or essentially going all out against Kabul, rather than limiting strikes to alleged TTP positions.

Pakistan has said its forces have taken out a number of tanks and armored vehicles, as well as artillery positions. The Taliban relies on equipment left behind and confiscated after US and NATO forces rapidly withdrew from the country in the summer of 2021.

It remains that Pakistan's army has total force domination; however, the Taliban can still inflict pain through acts of terrorism, which Pakistani cities have suffered immensely under.

Acts of terror by Islamist groups have become almost a regular occurrence in Pakistan - with many suspected of having support through Afghanistan. For example, we reported on this major incident just weeks ago as follows:

At least 31 people were killed and 169 others injured on Friday when a suicide bomber struck a Shia mosque on the outskirts of Islamabad during Friday prayers, Pakistani officials said, in one of the capital’s deadliest attacks in over a decade.

The blast happened in the Khadija al-Kubra Imambargah mosque in the outskirts of Islamabad, with police saying the attacker had been stopped at the mosque gate before opening fire and setting off explosives among worshipers, according to officials cited by Reuters.

As for how the warring sides compare, regional publication Al-Monitor lays out the following:

Pakistan's armed forces benefit from good recruitment and retention, bolstered by equipment from its main defense partner China. Islamabad continues to invest in its military nuclear programs and is also modernizing its navy and air force...

Pakistan has 660,000 active personnel in its defense forces, of whom 560,000 are in the army, 70,000 are in the air force, and 30,000 are in the navy.

The strength of the Afghan Taliban's military is thinner, with only 172,000 active personnel. The group has, however, announced plans to expand its armed forces to 200,000 personnel.

The Taliban's international isolation has meant that it cannot modernize its military - but still, there have been reports of drone usage against Pakistan positions.

As is typical, Pakistan points the finger at Israel and India for fomenting instability in the region:

Taliban authorities said their forces carried out drone strikes against military targets inside Pakistan as clashes between the two countries continued, according to statements from the defense ministry and a government spokesperson on Friday.

Pakistan’s Information Minister Attaullah Tarar said Pakistani Taliban militants attempted to deploy drones against targets within Pakistan, but air defense systems intercepted them and no casualties were reported.

via Al Jazeera

Overall, Pakistan is experiencing some serious blowback for its years-long policies... Sky News' Yalda Hakim points out that "Pakistan spent decades backing and sheltering the Afghan Taliban - its defense minister acknowledged that to me on camera. Now it says Taliban-ruled Afghanistan is providing sanctuary to militants attacking Pakistan. The consequences are unfolding in real time."

Tyler Durden Fri, 02/27/2026 - 11:25

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