Individual Economists

FOMC Projections: GDP and Unemployment Revised Up; Inflation Down

Calculated Risk -

Statement here.

Fed Chair Powell press conference video here or on YouTube here, starting at 2:30 PM ET.

Here are the projections.  
The BEA's estimate for first half 2025 GDP showed real growth at 1.6% annualized. Most estimates for Q3 GDP are around 3.5%. That would put the real growth for the first three quarters at 2.2% annualized - well above the top end of the September projections. The FOMC revised up Q4 2025 and Q4 2026 GDP growth.
GDP projections of Federal Reserve Governors and Reserve Bank presidents, Change in Real GDP1 Projection Date2025202620272028 Dec 20251.6 to 1.82.1 to 2.51.9 to 2.31.8 to 2.1 Sept 20251.4 to 1.71.7 to 2.11.8 to 2.01.7 to 2.0 1 Projections of change in real GDP and inflation are from the fourth quarter of the previous year to the fourth quarter of the year indicated.

The unemployment rate was at 4.4% in September. There was no data for October due to the government shutdown, and the November report will be released on December 16th - so the FOMC was flying blind today on the unemployment rate. However, they increased the 2026 projection into the employment recession range. Note: An unemployment rate of 4.6% over the next few months might be recessionary.
Unemployment projections of Federal Reserve Governors and Reserve Bank presidents, Unemployment Rate2 Projection Date2025202620272028 Dec 20254.5 to 4.64.3 to 4.44.2 to 4.34.0 to 4.3 Sept 20254.4 to 4.54.4 to 4.54.2 to 4.44.0 to 4.3 2 Projections for the unemployment rate are for the average civilian unemployment rate in the fourth quarter of the year indicated.

As of September 2025, PCE inflation increased 2.8 percent year-over-year (YoY), up from 2.7 percent YoY in August.  Projections for PCE inflation were lowered slightly.
Inflation projections of Federal Reserve Governors and Reserve Bank presidents, PCE Inflation1 Projection Date2025202620272028Dec 20252.8 to 2.92.3-2.52.0 to 2.22.0 Sept 20252.9 to 3.02.4-2.72.0 to 2.22.0
PCE core inflation increased 2.8 percent YoY in September, down from 2.9 percent in August.   Projections for 2025 core PCE inflation were decreased.
Core Inflation projections of Federal Reserve Governors and Reserve Bank presidents, Core Inflation1 Projection Date2025202620272028Dec 20252.9 to 3.02.4-2.62.0 to 2.22.0 Sept 20253.0 to 3.22.5-2.72.0 to 2.22.0

FOMC Statement: 25bp Rate Cut

Calculated Risk -

Fed Chair Powell press conference video here or on YouTube here, starting at 2:30 PM ET.

FOMC Statement:
Available indicators suggest that economic activity has been expanding at a moderate pace. Job gains have slowed this year, and the unemployment rate has edged up through September. More recent indicators are consistent with these developments. Inflation has moved up since earlier in the year and remains somewhat elevated.

The Committee seeks to achieve maximum employment and inflation at the rate of 2 percent over the longer run. Uncertainty about the economic outlook remains elevated. The Committee is attentive to the risks to both sides of its dual mandate and judges that downside risks to employment rose in recent months.

In support of its goals and in light of the shift in the balance of risks, the Committee decided to lower the target range for the federal funds rate by 1/4 percentage point to 3-1/2 to 3‑3/4 percent. In considering the extent and timing of additional adjustments to the target range for the federal funds rate, the Committee will carefully assess incoming data, the evolving outlook, and the balance of risks. The Committee is strongly committed to supporting maximum employment and returning inflation to its 2 percent objective.

In assessing the appropriate stance of monetary policy, the Committee will continue to monitor the implications of incoming information for the economic outlook. The Committee would be prepared to adjust the stance of monetary policy as appropriate if risks emerge that could impede the attainment of the Committee's goals. The Committee's assessments will take into account a wide range of information, including readings on labor market conditions, inflation pressures and inflation expectations, and financial and international developments.

The Committee judges that reserve balances have declined to ample levels and will initiate purchases of shorter-term Treasury securities as needed to maintain an ample supply of reserves on an ongoing basis.

Voting for the monetary policy action were Jerome H. Powell, Chair; John C. Williams, Vice Chair; Michael S. Barr; Michelle W. Bowman; Susan M. Collins; Lisa D. Cook; Philip N. Jefferson; Alberto G. Musalem; and Christopher J. Waller. Voting against this action were Stephen I. Miran, who preferred to lower the target range for the federal funds rate by 1/2 percentage point at this meeting; and Austan D. Goolsbee and Jeffrey R. Schmid, who preferred no change to the target range for the federal funds rate at this meeting.
emphasis added

MBA: Mortgage Applications Increase in Latest Weekly Survey

Calculated Risk -

From the MBA: Mortgage Applications Increase in Latest MBA Weekly Survey
Mortgage applications increased 4.8 percent from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending December 5, 2025. Last week’s results included an adjustment for the Thanksgiving holiday.

The Market Composite Index, a measure of mortgage loan application volume, increased 4.8 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index increased 49 percent compared with the previous week. The Refinance Index increased 14 percent from the previous week and was 88 percent higher than the same week one year ago. The seasonally adjusted Purchase Index decreased 2 percent from one week earlier. The unadjusted Purchase Index increased 32 percent compared with the previous week and was 19 percent higher than the same week one year ago.

“Compared to the prior week’s data, which included an adjustment for the Thanksgiving holiday, mortgage application activity increased last week, driven by an uptick in refinance applications,” said Joel Kan, MBA’s Vice President and Deputy Chief Economist. “Conventional refinance applications were up almost 8 percent and government refinances were up 24 percent as the FHA rate dipped to its lowest level since September 2024. Conventional purchase applications were down for the week, but there was a 5 percent increase in FHA purchase applications as prospective homebuyers continue to seek lower downpayment loans. Overall purchase applications continued to run ahead of 2024’s pace as broader housing inventory and affordability conditions improve gradually.”
...
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($806,500 or less) increased to 6.33 percent from 6.32 percent, with points increasing to 0.60 from 0.58 (including the origination fee) for 80 percent loan-to-value ratio (LTV) loans.
emphasis added
Mortgage Purchase Index Click on graph for larger image.

The first graph shows the MBA mortgage purchase index.

According to the MBA, purchase activity is up 19% year-over-year unadjusted. 
Red is a four-week average (blue is weekly).  
Purchase application activity is still depressed, but solidly above the lows of 2023 and above the lowest levels during the housing bust.  

Mortgage Refinance IndexThe second graph shows the refinance index since 1990.

The refinance index increased from the bottom as mortgage rates declined, but is down from the recent peak in September.

Shellenberger: Civilizational Suicide Behind Europe’s Demand For Censorship Of X

Zero Hedge -

Shellenberger: Civilizational Suicide Behind Europe’s Demand For Censorship Of X

Authored on Dec. by Michael Shellenberger via X,

Today Last week, the European Commission fined Elon Musk’s X €140 million for, it says, breaking laws requiring social media transparency. Specifically, said the Commission, which is the executive branch of the European Union, X broke the law by making its blue checkmarks available to anyone, failing to make its advertising repository transparent, and failing to provide researchers with special access to its data. “Today’s decision has nothing to do with content moderation,” insisted the Commission’s spokesperson.

In truth, the Commission’s fine has everything to do with “content moderation,” which is censorship. The EU wants X to give its data to government-selected “researchers” so they can identify which posts and advertisements should be censored. This is a censorship-by-proxy strategy. The US Department of Homeland Security (DHS) from 2020 to 2022, and Europe today, have authorized government-funded NGOs to demand censorship of social media platforms in an attempt to deceive the public.

As such, the European Commission is spreading disinformation in order to demand censorship, and is openly engaged in a deception campaign aimed at confusing the people of Europe and the United States about what it is doing.

Many Americans may rightly wonder why they should care about what the European government is doing. President Donald Trump shut down much of the US censorship industrial complex, including by the DHS.

The reason we should care is that the goal of the European Commission, like that of the governments of Britain, Brazil, and Australia, is to censor the American people. As Public was the first to report in October, a pro-censorship activist think tank, the Stanford Cyberpolicy Center, hosted a gathering of global censorship officials to censor American social media platforms and American citizens. The Stanford Cyberpolicy Center was home to the fake “researchers” who oversaw the DHS censorship-by-proxy effort from 2020 to 2022.

Moreover, the EU is now in direct violation of the NATO Treaty, under which the US is militarily obligated to defend Europe. The NATO Treaty requires member states to have free speech and free and fair elections. France and Germany are actively and illegally preventing political candidates from running for office for ideological reasons, namely their opposition to mass migration. And the Romanian high court, with the support of the European Commission, nullified election results under the thin and unproven pretext of Russian interference, after a nationalist and populist presidential candidate won.

The X fine comes in the wake of a renewed push for governments to break encryption and read private text messages, known as “Chat Control.” The ostensible goal of this is to combat child abuse, and yet there is little evidence that such a system is needed. The heads of Signal and Telegram have strongly opposed the effort as a violation of privacy and a backdoor that others could exploit.

And last month, the European Commission launched a “Democracy Shield” program consisting of more funding for NGOs and “fact checkers” to “ensure swift reactions to large-scale and potentially transnational information operations. An independent European Network of Fact-Checkers will be set up to boost fact-checking capacity in all EU official languages…” In the past, activist NGOs have demanded that social media companies censor content based on fact-checks, including false ones.

The European Digital Services Act (DSA) rests upon a model of censorship by proxy. The proxies are NGOs, law enforcement organizations, and industry groups designated “Trusted Flaggers.” Noted Lorcán Price of the Alliance Defending Freedom in his testimony to Congress in September of year, “When a Trusted Flagger speaks, the service provider must listen and prioritize the review of the flagged content before that of its regular users. The service provider must review the flagged content to determine whether it violates the law of an EU member state or the EU itself. If so, the service provider must remove or disable access to the content.”

Notably, the European Commission announced its X fine on the same day that the Trump administration released its new security strategy, which reads, “We will oppose elite-driven, anti-democratic restrictions on core liberties in Europe, the Anglosphere, and the rest of the democratic world, especially among our allies.” The document implicitly threatens US commitment to military security for Europe. “It is far from obvious whether certain European countries will have economies and militaries strong enough to remain reliable allies.”

The European Constitution states that “Everyone has the right to freedom of expression. This right shall include freedom to hold opinions and to receive and impart information and ideas without interference by public authority and regardless of frontiers.” 

Why then is it now seeking to deny those rights?

Please subscribe now to support Public's defense of free speech, read the full article, and watch the full video!

Tyler Durden Wed, 12/10/2025 - 05:00

Turkey Plans Drone Facility In Pakistan

Zero Hedge -

Turkey Plans Drone Facility In Pakistan

Turkey, long a pioneer in military drone development and production, plans to set up a facility in Pakistan to assemble combat drones, part of Ankara’s drive to boost its defense industry in international markets, Bloomberg reported citing Turkish officials.

Talks over the project, which would see Turkey export stealth and long-endurance drones to be put together in Pakistan, have advanced significantly since October. 

The discussions are part of Turkey’s efforts to grow its defense industry, a strategy that underpins President Recep Tayyip Erdogan’s ambitions to strengthen his influence in the Middle East and further afield. The country has announced deals this year including an order by Indonesia for fighter planes and has plans to supply more arms to Saudi Arabia and Syria.

Turkey’s defense exports increased 30% in the first 11 months of this year to a record $7.5 billion, Haluk Gorgun, who heads the presidency’s defense-industry body, said last Thursday.

Turkey has long-standing ties with Pakistan and is building corvette warships for its navy under a co-production deal, according to both countries. Turkey has upgraded dozens of Pakistan’s F-16s and now wants Islamabad to join its Kaan fifth-generation fighter program, the people said.

The talks to bolster Pakistan’s military capabilities come in the wake of a ceasefire with India following a four-day military clash between the nuclear-armed neighbors in May. Tensions are also high between Pakistan and Afghanistan, leading to a series of clashes, ever since Islamabad accused the Taliban of hosting militant groups that plan attacks on the country.

Tyler Durden Wed, 12/10/2025 - 04:15

Rosneft Oil Cargo Wanders For Weeks As Sanctions Mount

Zero Hedge -

Rosneft Oil Cargo Wanders For Weeks As Sanctions Mount

By Tsvetana Paraskova of OilPrice.com

A cargo of crude oil from sanctioned Russian giant Rosneft has made an 11-week-long meandering trip around Europe and Asia in search of buyers and although it has anchored off a sanctioned Chinese import port, it’s not certain it has reached its final destination yet.

The Fortis tanker with about 700,000 barrels of now sanctioned Russian oil dropped anchor near the Chinese port of Rizhao on the east coast on Tuesday, tanker-tracking data compiled by Bloomberg showed.

The Fortis did not make the entire trip from Russia’s western port on the Baltic Sea. The crude cargo from Rosneft began the journey on the Ailana tanker from the Russian export terminal of Ust-Luga at the end of September.   

Following a trip around Europe into the Mediterranean, and through the Suez Canal, the Ailana arrived near India at the end of October. 

But by then the U.S. had already slapped sanctions on top Russian oil producer Rosneft and the second-largest, Lukoil, to force Russia to genuine talks about ending the war in Ukraine. 

India stopped importing any crude known to have originated from or handled by affiliates of Rosneft and Lukoil to avoid angering the Trump Administration further. 

So the Ailana idled off Mumbai for two weeks, according to Bloomberg’s ship-tracking. Then most of the cargo was transferred onto the Fortis tanker which had shown destinations in India and South Korea before anchoring off the Rizhao port, which the U.S. Treasury also sanctioned in October as part of the pressure campaign on China over its purchases of Iranian crude.   

Despite being very close to the Rizhao port, it’s not certain the Fortis would offload the cargo there, according to Bloomberg. 

The three-month long trip and the ship-to-ship (STS) transfer suggest that buyers, especially in India, are steering clear of the sanctioned Russian companies and their cargoes. 

The U.S. sanctions on Rosneft and Lukoil upended all previous plans by Indian refiners, who hastened to withdraw from the spot market for Russian crude in December.

India’s Bharat Petroleum and India Oil Corporation have bought Russian crude from non-sanctioned companies for January delivery, at a discount of $6-$7 to Brent crude, reports emerged last week. 

Tyler Durden Wed, 12/10/2025 - 03:30

Germany Plans Largest Single-Year Investment In Arms, Equipment In Its History

Zero Hedge -

Germany Plans Largest Single-Year Investment In Arms, Equipment In Its History

At a moment the Russia-Ukraine war grinds on, and as Trump-led efforts to find peace have been frustrated - largely as Zelensky and his backers have balked at agreeing to any territorial compromise as the bases of a deal - Germany is busy transforming its military with an aim to boost Bundeswehr numbers and meet NATO targets.

That news dominated headlines last week, but added to this Bloomberg is newly reporting Tuesday that the troop expansion will coincide with a major tech and armament expansion, given lawmakers are expected to approve a record €52 billion (about $61 billion) in military procurement contracts next week.

This will mark the largest single-year investment in defense equipment in the country's history, underscoring Berlin's renewed push to modernize its armed forces amid the growing European standoff with Russia.

Source: Rheinmetall

As for 2025 numbers, prior approvals brought total defense commitments for this year to above €33 billion. So next year's could more than double, based on the new projected figures.

Much of the money is expected to flow to German defense manufacturers, including major firms like Heckler & Koch and Rheinmetall, both long well-known known for their advanced military equipment.

The new procurement package covers 73 major projects aimed at upgrading the Bundeswehr. Examples of key items slated for purchase include:

  • F-35 fighter jets: Advanced stealth aircraft essential for modern air operations.

  • Joint Strike Missiles: Precision munitions that significantly enhance Germany’s strike capabilities.

  • Aladin reconnaissance drones: Unmanned systems that will improve real-time surveillance and intelligence collection.

  • G95 assault rifles: Modern small arms intended to give soldiers more reliable, effective weaponry.

  • Air defense systems: Critical assets to safeguard German airspace from potential threats.

  • Armored vehicles: New platforms that boost troop protection and mobility in combat.

  • Additional small arms: A range of weapons to better equip personnel for varied missions.

German defense minister Boris Pistorius recently told Germans there was "no cause for concern...no reason for fear...The more capable of deterrence and defense our armed forces are, through armament through training and through personnel, the less likely it is that we will become a party to a conflict at all."

Pistorius and Chancellor Friedrich Merz have set a goal for having Europe's largest military and to be "war-ready" by 2029. Doing its part to promote German militarism, the Wall Street Journal'cited unnamed "military analysts [who] think Russia may be able and willing to attack NATO" by that year. 

Tyler Durden Wed, 12/10/2025 - 02:45

Europe's Brown New Deal

Zero Hedge -

Europe's Brown New Deal

Authored by Dmitry Orlov via ForumGeopolitica.com,

As living standards in Europe decline, the elites are inventing a fictional enemy: Russia. With staged provocations and historical distortions, they want to divert people's anger and justify higher military spending.

The result of the Green New Deal is steadily decreasing living standards throughout Europe stemming from the root cause of lower amounts of affordable energy per capita. In turn, it is superficially stable but steadily worsening living conditions, much more so than an outright crisis, that cause populations to rebel and to overthrow their ruling elites. The ruling elites of Europe know this, do not fancy being strung up on lampposts all over Europe, and seek to at least deflect the blame and, better yet, to engineer an outright crisis which they can then pretend to mitigate.

Their manufactured crisis of choice is the entirely fictional yet imminent attack on the European Union by the Russian Federation. The risible lie used to support this argument is that should the Ukrainian army be routed and should the Kiev regime fall, Russian tanks will then roll across Europe... just like they did in 1945! The thorny question of why Russia would ever be interested in such an escapade is avoided through anti-Russian bigotry: the very fact that the Russians happen to be Russian is taken as sufficient to guarantee their propensity for such insane and self-defeating behavior.

But we, not being irrational anti-Russian bigots, will take the time to answer this question. Let us consider Russia's stated demands for the former Ukrainian Soviet Socialist Republic first created by Lenin and Stalin: its denazification, demilitarization, neutrality and guaranteeing the rights of the Russian-speaking majority (which remains a majority in spite of most heavy-handed official efforts to force people to speak Ukrainian). Note that "conquering all of Europe" or "restoring the USSR" is not on Russia's to-do list.

Three years into Russia's Special Military Operation, we can consider the results.

Denazification: where are the Ukraine's neo-Nazi battalions which sported German Nazi-inspired flags and insignia and whose members were easily distinguished by swastikas and portraits of Hitler with which their limbs and torsos were tattooed? The ones regularly called out for the most war crimes are the Azov Battalion (now a regiment), the Aidar Battalion, the Kraken Regiment, and Right Sector. The Azov battalion was founded by far-right nationalist Andrey Biletsky, which used the Nazi Wolfsangel as its emblem. Pravy Sektor's ultranationalist members played a major role in the Euromaidan revolution of 2014 and in the war in the Donbas in 2014-2015. Aidar battalion was charged with human rights abuses by Amnesty International and Human Rights Watch. Svoboda (Freedom) Party recruited fighters using ultranationalist and antisemitic rhetoric. All of them had a good run and caused much murder and mayhem, but by now much of their initial membership is dead, and although their names are still being used for propaganda purposes by the Kiev regime, the organizations themselves are half-dead. At this point, the Nazi battalions are mostly being used as barrier troops, blocking the raw recruits thrown at the advancing Russians from retreating and trying to kill them when they try to surrender.

Demilitarization: for the first year or so of the Special Military Operation, the Ukrainian forces had no shortage of volunteers, but now there are none. Instead, men are being grabbed off the streets and press-ganged into service (unless they can afford to pay a hefty bribe) while recruitment officers have become filthy rich and universally loathed and despised. Initially, Ukrainian troops were armed with Soviet-era weapons, left over from Ukrainian SSR, or scrounged from all over Eastern Europe by formerly Warsaw pact but now NATO-member countries. The Ukrainian military was organized and operated in accordance with Soviet-era field manuals and rule-books. And it posed a formidable threat and inflicted considerable casualties on the Russian side. The Soviet-vintage weapons supply was gradually depleted and replaced with NATO weapons, which proved much less effective and far easier for the Russians to destroy, designed, as they are, to maximize profits for American defense contractors rather than to provide adequate defense (since nobody is attacking America in any case). The NATO armories are by now substantially depleted as well, as are the funds available to procure more weapons. European leaders in Hungary, Slovakia, Czechia and elsewhere are starting to reject the idea of further military spending on behalf of the Kiev regime.

Meanwhile, back in the Ukraine, Soviet-era manuals and rule-books were replaced with "NATO standards" and training, which proved to be far less effective than the Soviet ones. NATO members learned the methodology from the Americans, who, in turn, learned it from former Nazi German officers, who, if you will recall, lost the war to the Red Army. NATO, and now the Ukrainian army, are thus reliant on military doctrines, organizational principles and operational practices of the losing side. NATO, which is mostly just the Americans, was able to achieve results (though never quite an outright victory) against such weak adversaries as Serbia and Libya, but its favorite technique — indiscriminate bombing campaigns —would have inevitably escalated to a nuclear exchange if it were ever attempted against Russia.

A truly ridiculous situation has emerged: the Ukrainians, role-playing as Nazi Germans, with NATO in a support role, is involved in a high-intensity conventional conflict with Russia, role-playing as the Red Army, and achieving the same end result. Since this implies extreme stupidity, a quick look at national IQ ratings seems warranted: Russia's average is 103; the Ukraine's is at 95.4 — the lowest in Europe. The US does a bit better with an IQ of 99.7 — still very far behind China's 107. "Dumb and Dumber go to War" would have made a good movie title, if it weren't for all the blood and the gore and the Ukrainian military graves stretching beyond the horizon.

From all of this, it is possible to draw the conclusion that Russia is, slowly but surely, succeeding in the stated goals of its SMO by winning a war of attrition against both the Ukraine (in manpower) and NATO (in weapons). With the Ukrainian ultranationalists mostly dead and the Ukrainian and NATO armories depleted, and more and more Ukrainian soldiers refusing to fight, the military operation will inevitably draw to a close, the Kiev regime will fall, the Russian-speaking majority in the Ukraine will reassert its rights and, if all goes well, there will be a return to constitutional order which was destroyed during the US-organized putsch in the spring of 2014.

Will Russia then go on to more Special Military Operations to denazify, demilitarize and defend the human rights of large Russian minorities living in Estonia, Latvia, Lithuania and Moldova? Russia is treating the plight of the Russians still living in these parts as a humanitarian rather than a military issue, easily absorbing the influx. For instance, there is half a million Moldovans now living in Russia while the total population of Moldova is now just two million and falling fast. The picture for the Baltics is similar, although the numbers are too small to matter.

But each of these semi-defunct former Soviet Socialist Republics, lovingly crafted out of bits of the Russian Empire and nurtured by internationalist-minded Bolsheviks to Russia's lasting regret and chagrin, also has certain strategic considerations for Russia: Estonia, together with Finland, almost blocks the Gulf of Finland which provides critically important sea access to St. Petersburg and the nearby ports of Ust-Luga and Primorsk with a total cargo volume of around 170 million tonnes per year. Lithuania provides a land bridge to the Russian exclave of Kaliningrad. Moldova has a separatist region of Transnistria, inhabited by half a million actual Russian passport-holders whom the Russian state is theoretically sworn to defend.

But which of these issues would Russia ever attempt to solve by going on attack? A less than completely insane, deranged Europe should be able to resolve such issues amicably and without recourse to violence. We can only hope that a resounding NATO defeat in the Ukraine will cool the NATO-heads who are currently seeking to escalate the conflict.

If a military conflict involving the four countries mentioned above were to erupt, it is important to keep in mind that they would have to be defended by troops from elsewhere in Europe. All four of these countries are largely emptied of young people: since there are hardly any jobs there, young people leave as soon as they can, leaving behind countries sparsely populated by increasingly destitute pensioners, with more and more empty school buildings being converted to care for the old who can no longer take care of themselves.

In turn, how likely is it that American, British, French, German, Spanish and Italian youths can be drafted and sent to die in a futile conflict to defend Estonia, Latvia, Lithuania (NATO and EU members) and Moldova (not)? If just 16% of German men say that they would definitely be willing to take up arms to defend their own Fatherland, then what percentage of them would be willing to go and die for Lithuania? We can only guess, so let us guess 2% — and these would be the mentally defective, suicidal ones! We can also hope that a less than utterly insane German society would generate considerable political pressure to force their government to just give the Russians whatever they want, which isn't much: open and secure highway and railway corridors to Kaliningrad and widened sea lanes and air corridors through the Gulf of Finland is all it would take to resolve the issue amicably as far as the Baltics.

Currently, however, there seems to be no interest in the West in resolving issues amicably, instead concentrating on staging provocations. On September 10, some number of drones entered Polish airspace. These were subsequently discovered to be Russian-made Gerbera drones —decoys which lack an explosive charge and are used to confuse and to deplete air defense systems. Based on their limited range, they were launched from Kiev regime-held territory. They overflew part of Belarus, where some of them were shot down, while others continued on to Poland. Belarus authorities issued a warning to their Polish counterparts: "Incoming, watch out!"

Polish and other NATO forces scrambled jets — but jets are useless for shooting down such small and slow-moving targets. The drones were Russian-made but there is no evidence that they were Russian-operated. Such drones regularly fall out of the skies in the Ukraine and can be patched up, refueled, reprogrammed and sent on. It is possible that the Russians were behind the provocation if their goal was to demonstrate that NATO is defenseless against even such primitive drones, in which case they did prove their point, but it is far more likely that it was the Kiev regime trying to keep the "Russian aggression" narrative alive.

Such plausibly deniable demonstrations do seem to take place. For example, there was the Chinese weather balloon which overflew continental United States from January 28 to February 4, 2023. Its flight path was a beautiful arc covering Alaska, Western Canada and then the contiguous United States from Washington State to Myrtle Beach, South Carolina. It flew too high for the US Air Force to shoot down but it gradually lost altitude and was shot down by an F-22 Raptor at an altitude of 18,000 meters. It was either an accident (the balloon blown off-course) or a demonstration of the Americans' inability to defend their airspace against... weather balloons!

Just 10 days after the episode featuring unarmed Russian drones flying unhindered over Poland, there followed a scandal with Russian jets supposedly violating Estonian airspace. According to the Estonians, three Russian Mig-31 jets entered Estonian airspace "without permission and remained there for a total of 12 minutes." The jets were on their way from Leningrad region to Kaliningrad region, following the air corridors over the Gulf of Finland and the Baltic which are frequented by air traffic between these two Russian regions and which circumvent the three Baltic countries. In particular, the international free passage corridor between Finland and Estonia is 370km long but only 11km wide and it is theoretically possible that the Migs strayed over the southern, Estonian edge of it. In any case, Mig-31s cruise at 2,500km/h, or 41km/min, and in 12 minutes would have covered 491km, overshooting the mark by some 122km. Essentially, there isn't enough Estonian territory for them to have taken that long.

The Estonian side failed to present any evidence of such a transgression while Russia's defense ministry said that the jets were on a "scheduled flight... in strict compliance with international airspace regulations and did not violate the borders of other states, as confirmed by objective monitoring". That should have been the end of it, but noooo! Was it worth scrambling jets and calling an emergency NATO conference in accordance with Chapter 4 of the NATO charter over such a nonevent, be it intentional, accidental or fictional? Only if the intent was to create much ado about nothing and a tempest in a teacup.

Zooming out from the particulars, such provocations are necessary: the transition from the now defunct Green New Deal to the new Brown New Deal — European militarism, that is — requires an enemy. There are just no other candidates: North Korea is too hot to touch; Iran, if sufficiently provoked, would destroy Israel; and China already has the European and the American economies in a submission hold and will choke out the round-eyes if they don't start to behave. The only safe enemy is Russia, but that is also a problem: Russia is not sufficiently threatening. It is therefore necessary to stage provocations in order to keep the myth of "Russian aggression" alive in the minds of Europeans, in the hopes of convincing, and, failing that, coercing them into accepting high levels of defense expenditure, just as they accepted high levels of spending on "green" energy — for the European ruling elites to pocket.

However, it turns out that halfhearted provocations are hardly enough to keep the myth of "Russian aggression" alive, never mind making it sufficiently compelling to motivate scores of true believers to queue up at recruitment centers, eager to die battling aggressive Russians Ukrainian style. Luckily, barely believable provocations are not all that the collective West has to offer: there are also efforts being made at constructing a compelling image of the enemy. These efforts are quite extensive and intricate and have been in the works for centuries. They include a fanciful rewriting of history that consigns to oblivion all the episodes that fail to portray Russia in an entirely negative light. We will take them up next.

Tyler Durden Wed, 12/10/2025 - 02:00

Modern Warfare: Lessons From Ukraine

Zero Hedge -

Modern Warfare: Lessons From Ukraine

Authored by Adam Sharp via DailyReckoning.com,

Before Russia invaded Ukraine in 2022, we had very little insight into what modern warfare would look like.

How would hypersonic and cruise missiles perform?

What impact would drones have on the battlefield?

How important is artillery in modern warfare?

How relevant are tanks?

And what about electronic warfare?

All these questions have been answered by this war.

Today let’s review what we’ve learned so far. The future of war is looking more science-fiction by the day.

Drones are Key

The soldier, with a GoPro camera strapped to his helmet, hides in an abandoned building. He’s breathing heavily.

Suddenly, the loud whir of a drone appears. The soldier whispers a prayer and takes cover.

BOOM! The drone explodes nearby. Screaming from a wounded soldier erupts.

I’ve seen this situation play out dozens of times. For both Russian and Ukrainian soldiers.

It’s a terrifying scenario. Sometimes I’ll see a video where a group of soldiers is being attacked by dozens of these killer drones at a time. The whine of a drone’s electric engine has become an ominous sound on the front lines.

These new weapons systems are cheap. A $300 civilian drone combined with a $50 RPG warhead can take out a $4 million tank. This is asymmetric warfare perfected. Tanks will likely maintain a role going forward, but it will be substantially diminished.

Each side uses tens of thousands of these drones per month. They’re so common that 12 gauge shotguns have become essential kit for soldiers on the front-lines. It turns out that birdshot is among the most effective counters. See this video for an example of how effective shotguns can be.

But electronic warfare is also becoming a key defense against drones. The Russian anti-gun drone below works by scrambling a drone’s signal, causing it to crash.

Re-purposed civilian drones have already changed warfare forever. At first they were primarily a scouting tool, but now they’ve become a deadly weapon.

The abundance of weaponized drones on the battlefield has made advancing extremely difficult. A small hidden group armed with a few dozen drones can hold back hundreds of vehicles from advancing.

Of course, there are also dozens of new models of military-grade drones being released every year. There are now mass-produced killer drones of all types being churned out by the tens of thousands. We covered some of the more important modelsback in July.

Ground and Sea Drones

It’s not just flying drones. Unmanned ground combat vehicles (UGVs) are also coming into play. The screenshot below shows Ukraine’s new UGVs armed with .50 caliber machine guns.

For now, these ground-based drones are crude with limited range and ammunition. But within a few years they will evolve into intimidating juggernauts roaming the battlefield. In the near future tanks and artillery will also be unmanned.

Drone warfare extends to the seas. And Ukraine has nearly perfected this form of warfare.

Below is the Magura V5, a Ukrainian sea drone which has sunk a number of valuable Russian warships. It was commemorated with the stamp shown below by the Ukrainian postal service.

The latest version of the Magura can carry an explosive payload of 1,400 lbs. That’s enough to sink almost any ship with proper placement. And the latest models even come equipped with anti-air missiles mounted on the top to counter Russian helicopters and jets.

Sea (and submarine eventually) drones will be an absolutely critical aspect of future wars. Imagine a swarm of 50 of these high-speed sea drones converging on an aircraft carrier strike group, while a swarm of airborne drones attacks from above. It’s virtually impossible to stop such an attack.

The age of mega-ships like aircraft carriers is drawing to a close. It seems likely that naval forces of the future will mostly consist of smaller missile boats and submarines.

Modern Missiles

One part of this war which wasn’t a surprise is Russia’s missile advantage. The country has always specialized in long-range fires, because it realized it couldn’t compete with NATO when it comes to traditional airpower (jets).

That investment has proved to be a wise one. Missiles have been a key advantage in this war. From hypersonic models like the Kinzhal and Iskander-M, to cruise missiles like the Calibr and KH-101, they’ve all been critical to Russia’s progress in the war.

The Iskander has been the most effective missile system of this war. The Iskander is a mobile ground-launched hypersonic missile which Russia mass produces.

An Iskander-M launcher via Wikipedia

The Iskander-M has a range of up to 500 kilometers and carries a warhead of up to 700kg (1,534 lbs). It moves fast, with a burnout speed of Mach 5.9. It can maneuver during flight, and contains decoys and flares which are released as it approaches its target. Each launcher carries 2 missiles and is often accompanied by a reloading vehicle.

The Iskander-M has proven very difficult to intercept, as we covered back in October. The Patriot missile defense system has mostly been outmatched by it.

Iskander missiles are used to strike valuable targets such as command centers, Patriot missile defense systems, ammo/fuel depots, and HIMARS rocket launchers.

Speaking of HIMARS, this American-made rocket system has proven to be an extremely effective weapon for Ukraine.

HIMARS launching a guided rocket, via Wikipedia

The HIMARS system fires 227 mm guided rockets at ranges up to 150 km. The warheads are relatively small at around 200 lbs, but have proven effective at taking out enemy command centers and other valuable targets. Each “pod” contains 6 rockets and is disposable. HIMARS can also fire a single larger ATACMS missile with a ~450 lb warhead.

Early on, the HIMARS was a wonder weapon for Ukraine, having devastating effects on Russian ammo/fuel depots and troop concentrations.

However, as the war has gone on, Russia has figured out how to “spoof” the satellite signals used to guide HIMARS rockets, and the weapons system has become less effective as a result. I’m sure the engineers at Lockheed Martin are working on fixing this, but it’s going to be an ongoing game of cat and mouse for the foreseeable future.

This is another takeaway from the Ukraine/Russia war. Electronic warfare is absolutely critical in modern conflicts.

Conclusions

The Ukraine war has been a wakeup call to the world. Drones are going to be the focal point of future conflicts. When a $350 piece of equipment can take out a $4 million tank and 4 specialist soldiers, the game has changed.

Soon, tanks and artillery units will also be unmanned.

Due to the rise of drones and unmanned systems, electronic warfare will become increasingly important. If you can jam the signal, you can stop the weapon. I expect future battlefields to be absolutely flooded with radio signals and microwaves.

We didn’t even get to AI in this piece, but will look to cover that in depth in the future. Drones and missiles are already becoming capable of autonomous action. But both sides are understandably secretive about their capabilities.

The bottom line is that the hunter-killer robots from The Terminator are moving from sci-fi to reality.

Combined with this new generation of hypersonic missiles, it’s a completely different landscape than it was just 20 years ago.

I am hopeful the war in Ukraine ends soon, but it has given us a rare peek into what modern warfare truly looks like. And it’s terrifying.

This is the age of asymmetric warfare. Pinpoint long-range weapons systems have eliminated the advantage of large troop concentrations and capital ships like aircraft carriers.

For a long time, only superpowers like America and Russia had access to these types of systems. Now they have proliferated throughout the world. The implications have yet to be fully realized.

Tyler Durden Tue, 12/09/2025 - 23:25

Western Colleges Help Build China's Digital Dragnet With Taxpayer Funds, Study Warns

Zero Hedge -

Western Colleges Help Build China's Digital Dragnet With Taxpayer Funds, Study Warns

Submitted by The Bureau's Sam Cooper,

Over the past five years, some of the world's most technologically advanced campuses in the United States, Canada and the United Kingdom — including MIT, Oxford and McGill — have relied on taxpayer funding while collaborating with artificial-intelligence labs embedded in Beijing's security state, including one tied to China's mass detention of Uyghurs and to the Ministry of Public Security, which has been accused of targeting Chinese dissidents abroad.

That is the core finding of Shared Labs, Shared Harm, a new report from New York–based risk firm Strategy Risks and the Human Rights Foundation. After reviewing tens of thousands of scientific papers and grant records, the authors conclude that Western public funds have repeatedly underwritten joint work between elite universities and two Chinese "state-priority" laboratories whose technologies drive China's domestic surveillance machinery — an apparatus that, a recent U.S. Congressional threat assessment warns, is increasingly being turned outward against critics in democratic states.

The key Chinese collaborators profiled in the study are closely intertwined with China's security services. One of the two featured labs is led by a senior scientist from China Electronics Technology Group Corporation (CETC), the sanctioned conglomerate behind the platform used to flag and detain Uyghurs in Xinjiang; the other has hosted "AI + public security" exchanges with the Ministry of Public Security's Third Research Institute, the bureau responsible for technical surveillance and digital forensics.

The report's message is blunt: even as governments scramble to stop technology transfer on the hardware side, open academic science has quietly been supplying Chinese security organs with new tools to track bodies, faces and movements at scale.

It lands just as Washington and its allies move to tighten controls on advanced chips and AI exports to China. In the Netherlands' Nexperia case, the Dutch government invoked a rarely used Cold War–era emergency law this fall to take temporary control of a Chinese-owned chipmaker and block key production from being shifted to China — prompting a furious response from Beijing, and supply shocks that rippled through European automakers.

"The Chinese Communist Party uses security and national security frameworks as tools for control, censorship, and suppressing dissenting views, transforming technical systems into instruments of repression," the report says. "Western institutions lend credibility, knowledge, and resources to Chinese laboratories supporting the country's surveillance and defense ecosystem. Without safeguards … publicly funded research will continue to support organizations that contribute to repression in China."

Cameras and Drones

The Strategy Risks team focuses on two state-backed institutes: Zhejiang Lab, a vast AI and high-performance computing campus founded by the Zhejiang provincial government with Alibaba and Zhejiang University, and the Shanghai Artificial Intelligence Research Institute (SAIRI), now led by a senior CETC scientist. CETC designed the Integrated Joint Operations Platform, or IJOP — the data system that hoovered up phone records, biometric profiles and checkpoint scans to flag "suspicious" people in Xinjiang.

United Nations investigators and several Western governments have concluded that IJOP and related systems supported mass surveillance, detention and forced-labor campaigns against Uyghurs that amount to crimes against humanity.

Against that backdrop, the scale of Western collaboration is striking.

Since 2020, Zhejiang Lab and SAIRI have published more than 11,000 papers; roughly 3,000 of those had foreign co-authors, many from the United States, United Kingdom, and Canada. About 20 universities are identified as core collaborators, including MIT, Stanford, Harvard, Princeton, Carnegie Mellon, Johns Hopkins, UC Berkeley, Oxford, University College London — and Canadian institutions such as McGill University — along with a cluster of leading European technical universities.

Among the major U.S. public funders acknowledged in these joint papers are the National Science Foundation (NSF), the National Institutes of Health (NIH), the Office of Naval Research (ONR), the Defense Advanced Research Projects Agency (DARPA) and the Department of Transportation. For North America, the warning is twofold: U.S. and Canadian universities are far more entangled with China's security-linked AI labs than most policymakers grasp — and existing "trusted research" frameworks, built around IP theft, are almost blind to the human-rights risk.

In one flagship example, Zhejiang Lab collaborated with MIT on advanced optical phase-shifting — a field central to high-resolution imaging systems used in satellite surveillance, remote sensing and biometric scanning. The paper cited support from a DARPA program, meaning U.S. defense research dollars effectively underwrote joint work with a Chinese lab that partners closely with military universities and the CETC conglomerate behind Xinjiang's IJOP system.

Carnegie Mellon projects with Zhejiang Lab focused on multi-object tracking and acknowledged funding from the National Science Foundation and the U.S. Office of Naval Research. Multi-object tracking is a backbone technology for modern surveillance — allowing cameras and drones to follow multiple people or vehicles across crowds and city blocks. "In the Chinese context," the report notes, such capabilities map naturally onto "public security applications such as protest monitoring," even when the academic papers present them as neutral advances in computer vision.

The report also highlights Zhejiang Lab's role as an international partner in CAMERA 2.0, a £13-million U.K. initiative on motion capture, gait recognition and "smart cities" anchored at the University of Bath, and its leadership in BioBit, a synthetic-biology and imaging program whose advisory board includes University College London, McGill University, the University of Glasgow and other Western campuses.

Meanwhile, SAIRI has quietly become a hub for AI that blurs public-security, military and commercial lines.

Established in 2018 and run since 2020 by CETC academician Lu Jun — a designer of China's KJ-2000 airborne early-warning aircraft and a veteran of command-and-control systems — SAIRI specializes in pose estimation, tracking and large-scale imaging.

Under Lu, the institute has deepened ties with firms already sanctioned by Washington for their roles in Xinjiang surveillance. In 2024 it signed cooperation agreements with voice-recognition giant iFlytek and facial-recognition champion SenseTime, as well as CloudWalk and Intellifusion, which market "smart city" policing platforms.

SAIRI also hosted an "AI + public security" exchange with the Ministry of Public Security's Third Research Institute — the bureau responsible for technical surveillance and digital forensics — and co-developed what Chinese media billed as the country's first AI-assisted shooting training system. That platform, nominally built for sports, was overseen by a Shanghai government commission that steers AI into defense and public-security applications, raising the prospect of its use in paramilitary or police training.

Outside the lab, MPS officers have been charged in the United States with running online harassment and intimidation schemes targeting Chinese dissidents, and MPS-linked "overseas police service stations" in North America and Europe have been investigated for pressuring exiles and critics to return to China.

Meanwhile, Radio-Canada, drawing on digital records first disclosed to Australian media in 2024 by an alleged Chinese spy, has reported new evidence suggesting that a Chinese dissident who died in a mysterious kayaking accident near Vancouver was being targeted for elimination by MPS officers and agents embedded in a Chinese conglomerate that the U.S. Treasury accuses of running a money-laundering and modern-slavery empire out of Cambodia.

The new reporting focuses on a former undercover agent for Office No. 1 of China's Ministry of Public Security — the police ministry at the core of so-called "CCP police stations" in global and Canadian cities, and reportedly tasked with hunting dissidents abroad.

Taken together, cases of alleged Chinese "police station" networks operating globally, new U.S. Congressional reports on worldwide threats from the Chinese Communist Party, and the warnings in Shared Labs, Shared Harm suggest that Western universities are not only helping to build China's domestic repression apparatus with U.S. taxpayer funds, but may also be contributing to global surveillance tools that can be paired with Beijing's operatives abroad.

To counter this trend, the paper urges a reset in research governance: broaden due diligence to weigh human-rights risk, mandate transparency over all international co-authorships and joint labs, condition partnerships with security-linked institutions on strict safeguards and narrow scopes of work, and strengthen university ethics bodies so they take responsibility for cross-border collaborations.

Tyler Durden Tue, 12/09/2025 - 22:35

Israel Launches New Wave Of Huge Airstrikes On Lebanon

Zero Hedge -

Israel Launches New Wave Of Huge Airstrikes On Lebanon

Israel's military has confirmed it carried out new waves of air attacks in southern Lebanon that damaged several homes and buildings, which the IDF said primarily targeted Hezbollah training camps.

The largescale attacks occurred despite what's supposed to be a agreed upon truce in effect going all the way back to November 2024. Prior to that, Hezbollah had been engaged in daily exchanges of rocket and drone fire, in a war which kicked off in tandem with the Gaza war.

via Associated Press

Lebanon’s National News Agency reported late Monday that new strikes hit Mount Safi, the town of Jbaa, the Zefta Valley, and the area between Azza and Rumin Arki, and cited that "several waves" were launched, but there appeared no initial reports of casualties.

Despite the ceasefire, Israel is vowing to essentially finish off Hezbollah after already having largely decimated its leadership in 2024. The IDF announced that "military structures and a launch site belonging to Hezbollah, used to advance terror attacks against IDF troops and the State of Israel, were also struck."

"The targets that were struck, and the military training conducted in preparation for attacks against the State of Israel, constitute a violation of the understandings between Israel and Lebanon and a threat to the State of Israel," the statement added.

Significantly, the aerial assault reached some 20-30 km north of the Israel's border, as described by Israeli Army Radio.

Finance Minister Bezalel Smotrich has said these operations are "likely" to continue and that Israel will not stop until 'terror infrastructure' is destroyed and dismantled. Israeli citizens of far northern settlements and communities have only recently been able to safely resettle in their homes. 

"We are enforcing in Lebanon, without compromise, against any Hezbollah armament and any violation of the ceasefire," Smotrich said.

"It is likely that we will soon need to return and operate there to preserve the gains achieved against Hezbollah," added the minister.

"We will not allow Hezbollah to remain. Residents of the north deserve to live in complete security in their communities," he described. "There will no longer be a situation in which towns are the front line and the IDF is behind them. The IDF will be the front protecting the communities, and the communities will be behind it."

Washington has also lately been pressuring the Lebanese government to disarm Hezbollah; however, the Shia militant group is actually far better armed than the Lebanese Army. Ironically it has been the United States which has kept Lebanon's military intentionally weak, on fears that any heavy armaments could be used against Israel.

Tyler Durden Tue, 12/09/2025 - 22:10

'Iryna's Law' And The Bad Decisions That Make It Necessary

Zero Hedge -

'Iryna's Law' And The Bad Decisions That Make It Necessary

Authored by Daniel McCarthy via The Epoch Times,

What will it take to get crime under control in our subways and public transit systems?

On Monday, Dec. 1, news broke of another passenger set on fire in New York City’s subway—although this story wasn’t all it seemed.

The homeless man who at first said he was the victim of an attack turned tight-lipped when police pressed him about what happened.

Had he set his own clothes ablaze to attract attention?

In the wild environment our subways have become, a malicious attack or a madman’s self-inflicted injury are both all too believable.

Most trips on the New York City subway or Washington’s Metro system don’t resemble a clip from “Mad Max,” but sooner or later anyone who rides the rails of our cities regularly encounters insanity, aggression, and the prospect of violence—or actual violence, including the murderous kind.

The life-changing and very nearly life-ending attack on Bethany MaGee, the woman set aflame on a Chicago Blue Line train last month, was no hoax.

Nor was the assault that killed Iryna Zarutska on a commuter train in Charlotte, North Carolina, this summer.

Nor was the burning alive of Debrina Kawam on the New York City subway in December 2024.

None of those women had any reason to fear for her life, yet a commute turned into unspeakable terror.

And it was predictable—not because these victims had anything special to fear but because everyone knows what’s allowed to happen in the tunnels and on the trains.

If a thug with 72 arrests to his name—such as the man who tried to immolate the 26-year-old MaGee in Chicago—or with “just” 14 arrests—such as Zarutska’s murderer—decides that this is the day to take an unsuspecting victim, what chance does the victim have?

Her fate was already decided by judges who chose to not lock up men who were a demonstrated threat to the public.

The killers and would-be killers are only half the problem.

The other half are the judges and lawmakers who put them on the streets in the first place, leaving them free to ambush unsuspecting victims on train cars, where they can’t escape.

(MaGee did try running, but her attacker caught up and torched her.)

Legislators in North Carolina, at least, are trying to stop this murderous chain of events before it begins, by putting men with criminal records like those of Zarutska’s killer in prison or mental institutions as soon as they start breaking the law.

“Iryna’s Law” restricts cashless bail, requires judges to order more mental evaluations, and makes it easier to involuntarily commit offenders found to be disturbed.

It also attempts to restore the death penalty in North Carolina, which has been blocked for nearly 20 years by legal challenges.

The law is a good start, and other states need similar reforms to incarcerate and institutionalize more of the people who commit horrors such as the subway attacks of recent months.

There’s a federal role in this, too, including rigorous enforcement of immigration law.

Sebastian Zapeta-Calil, the man charged with burning Kawam to death, is an illegal immigrant who should never have been in this country to begin with.

Yet more is needed: not only zero tolerance toward violent and repeat offenders, but also zero tolerance in the political process for judges who go easy on them.

Some states elect judges, and voters in those places can make known just how they feel about judges’ culpability for crimes committed by the lawbreakers they set loose.

And states have provisions for impeaching judges, just as the federal government does.

Where judges egregiously endanger the public with their leniency toward criminals, they should be impeached and removed from office.

It wouldn’t take many examples before soft-on-crime judges got the message.

Of course, judges themselves, where they aren’t elected by the public, are appointed by politicians who have to answer to voters—and those pols should feel the heat, too.

Five years ago, progressives were pushing, in all seriousness, to “defund the police” and “abolish bail,” meaning, in the latter instance, simply releasing a wider array of arrestees.

In most of the country, those slogans were not political winners, but advocates for these policies count more on elite sympathy, especially within the legal profession, than they do on ballot-box victories.

Their gamble is that most Americans pay no mind to the inner workings of state courts and legislatures, so what loses in an election can still win where laws and legal precedents are actually made.

This populist moment in national politics arises from the distrust our leaders have engendered among the public.

But leaders in states and cities have betrayed Americans’ trust, too, and their betrayal turns public transportation into scenes of public execution for innocents such as Zarutska.

Tyler Durden Tue, 12/09/2025 - 21:45

Mississippi Has The Highest Credit Card Delinquency Rate, Florida The Lowest

Zero Hedge -

Mississippi Has The Highest Credit Card Delinquency Rate, Florida The Lowest

The map, via Visual Capitalist's Bruno Venditti, highlights how credit card delinquency varies widely across the U.S. in 2025.

These figures represent the share of credit card accounts that became 30 or more days past due from Q1 to Q2. The data for this visualization comes from WalletHub.

Southern States Lead in Delinquencies

The Deep South stands out with the nation’s highest delinquency rates. Mississippi tops the list at 37%, followed by Louisiana at 32% and Alabama at 31%.

These levels are far above the national norm and suggest elevated financial pressures, including lower median incomes and higher reliance on revolving debt. Several neighboring states—Arkansas, Oklahoma, Tennessee, and South Carolina—also exceed 25%.

Rank State Credit Card Delinquency (Q1-Q2, 2025) 1 Mississippi 36.69% 2 Louisiana 32.11% 3 Alabama 30.52% 4 Arkansas 28.11% 5 South Carolina 25.49% 6 Oklahoma 25.43% 7 Texas 24.77% 8 Tennessee 24.62% 9 North Carolina 24.19% 10 Kentucky 24.07% 11 Indiana 23.92% 12 West Virginia 23.71% 13 Delaware 22.76% 14 Georgia 22.40% 15 Missouri 22.26% 16 New Mexico 21.37% 17 Pennsylvania 21.08% 18 Michigan 20.89% 19 South Dakota 20.64% 20 Wyoming 20.23% 21 Kansas 19.76% 22 Arizona 19.72% 23 Nebraska 19.71% 24 Ohio 19.66% 25 Maryland 19.45% 26 Minnesota 19.17% 27 Virginia 19.09% 28 Nevada 18.58% 29 Idaho 18.42% 30 Wisconsin 18.35% 31 Maine 18.27% 32 Connecticut 18.16% 33 Oregon 17.87% 34 Montana 17.17% 35 Alaska 16.90% 36 Colorado 16.85% 37 Illinois 16.58% 38 New Jersey 16.57% 39 North Dakota 16.26% 40 New Hampshire 15.59% 41 New York 15.53% 42 Rhode Island 15.21% 43 California 15.08% 44 Washington 14.99% 45 Utah 14.94% 46 Hawaii 14.90% 47 Massachusetts 14.68% 48 Vermont 14.67% 49 Iowa 14.36% 50 Florida 13.99% Midwestern and Northeastern States Remain More Stable

Most states across the Midwest and Northeast report delinquency shares between 15% and 21%. These levels reflect more stable household budgets and stronger credit profiles.

States like Iowa (14%) and Minnesota (19%) show some of the lowest delinquency rates, pointing to higher financial resilience.

Western States Show Mixed Patterns

The Western U.S. presents a more mixed landscape. California, Washington, Utah, and Hawaii all sit near the lower end at around 15%, suggesting relatively healthy consumer finances despite high living costs.

Meanwhile, states like Arizona and Nevada land closer to 19–20% in late payments.

If you enjoyed today’s post, check out The United States of Unemployment on Voronoi, the new app from Visual Capitalist.

Tyler Durden Tue, 12/09/2025 - 21:20

New York Archdiocese Agrees To Mediation For Settling 1,300 Claims Of Sexual Abuse

Zero Hedge -

New York Archdiocese Agrees To Mediation For Settling 1,300 Claims Of Sexual Abuse

Authored by Melanie Sun via The Epoch Times (emphasis ours),

The Roman Catholic Church in New York and more than 1,300 people who have accused its priests and lay employees of sexual abuse have agreed to enter mediation to resolve the claims.

Archbishop of New York cardinal Timothy Dolan holds his homily during a Mass in his own titular Church ‘Nostra Signora di Guadalupe a Monte Mario’ at the northern outskirts of Romeб on May 4, 2025 in Rome, Italy. Franco Origlia/Getty Images

Announcing the negotiations on Dec. 8, the Archdiocese of New York said it hopes to reach a global settlement that would provide victim-survivors with “the most financial compensation possible.”

Cardinal Timothy Dolan, who has led the archdiocese since 2009, said in an open letter that “darkness has cast a shadow” on the church.

“As we have repeatedly acknowledged, the sexual abuse of minors long ago has brought shame upon our Church. I once again ask forgiveness for the failing of those who betrayed the trust placed in them by failing to provide for the safety of our young people,” Dolan said. “Yet, as our faith teaches us, light will always conquer darkness.”

The Archdiocese of New York, which serves 2.5 million Catholics across nearly 300 parishes—the second-largest population of registered Catholics nationwide after the Archdiocese of Los Angeles—has taken the significant and necessary further steps to allow it to “bring peace and consolation to victim-survivors and their families,” Dolan said.

Adding to voluntary compensation efforts by the archdiocese in 2016, dubbed the Independent Reconciliation and Compensation Program (IRCP), the cardinal said the church has “made a series of very difficult financial decisions” that, when finalised, should liquidate at least $300 million “to provide compensation to survivors of sexual abuse.”

The decisions included laying off staff, cutting 10 percent of the operating budget, and selling significant real estate assets. The sales include the former archdiocesan headquarters on First Avenue in Manhattan.

Dolan also said the compensation efforts were being complicated by ongoing legal struggles with Chubb Insurance Companies, which ‌has refused to pay claims for policies that included “coverage for sexual misconduct claims, for itself and the parishes, schools, and archdiocesan charitable organizations.” The church said it had purchased such general liability insurance coverage for ‌the decades coinciding with the allegations of abuse.

Despite accepting millions in premiums from the archdiocese, Chubb has steadfastly refused to honor the policies it issued,” the cardinal said.

Chubb accused the ​archdiocese of tolerating and covering up child sexual abuse for decades and called for more transparency, saying the archdiocese has refused to share “what they knew and when.”

St. Patrick's Cathedral, the seat of the Roman Catholic Archdiocese of New York, in New York City, on Sept. 8, 2015. Spencer Platt/Getty Images

“The insurance that the Archdiocese bought covers accidents, it does not provide compensation for knowingly allowing a pattern of abuse to persist for many years,” Chubb said in a statement. “There’s a reason insurance doesn’t cover this kind of behavior as it would reward those who facilitate criminal conduct rather than those who take vigilant steps to mitigate risk and protect children from abuse.”

‘Time for Reckoning’

The settlement is to be negotiated by a third-party mediator, whom both sides agreed would be retired Los Angeles County Superior Court Judge Daniel Buckley.

Buckley successfully negotiated the $880 million settlement between the Archdiocese of Los Angeles and 1,353 victim-survivors of sexual abuse in 2024. That archdiocese is the largest in the nation, with about 4.4 million registered Catholics.

Dolan also said that the parish in the archdiocese where most of the claims of abuse were filed has declared bankruptcy. That parish—Immaculate Heart of Mary Parish in Scarsdale—is facing imminent court proceedings related to “alleged abuse by a former lay employee at the parish,” the cardinal said.

Most of the lawsuits against the archdiocese were filed after New York’s Child Victims Act was enacted in 2019. It extended the statute of limitations for civil lawsuits involving child sexual abuse, creating a one-year retrospective window that allowed petitioners to file historical claims of clergy abuse.

Before this, under the archdiocese’s voluntary compensation effort established by Dolan to compensate victims abused by priests or deacons of the archdiocese, 189 victim-survivors were recognised by the church and compensated more than $40 million.

Attorney Jeff Anderson, who represents some 300 of the 1,311 accusers whose claims date from 1952 to 2020, said that the archdiocese agreed to negotiate settlements over ⁠the next two months. This is ahead of civil litigation against it that is due to come to trial next year.

The time for reckoning is now, and it’s long past due,” he said.

St. Patrick's Cathedral, the seat of the Roman Catholic Archdiocese of New York in New York City, on Sept. 8, 2015. Spencer Platt/Getty Images

He added that any settlements will have to be accompanied by full disclosure of wrongdoing and measures to prevent future abuse.

According to the archdiocese’s website, since the Catholic Bishops of the United States adopted the Charter on the Protection of Children and Young People in 2002, the church has implemented preventive measures through the “Safe Environment Program,” designed to prevent and respond to any incidents of child sexual abuse.

We are dedicated to insure the safety of children and young people who have been entrusted to our care in our parishes, schools, religious education classes and other programs,” the website notice reads.

The archdiocese said that since the charter’s adoption, it has identified only one case of credible sexual abuse of a minor involving an active clergyman. Law enforcement was immediately notified and handled the case. The priest was also removed from ministry by the archdiocesan review board.

“Please join me in praying for the victim-survivors, their families, and all who have experienced the horror of abuse,” Dolan said. “It is my heartfelt prayer that together as a family of faith, we may experience healing, hope, and light this Christmas season.”

Reuters contributed to this report.

Tyler Durden Tue, 12/09/2025 - 20:55

Oil Trading Giant Warns Of Looming "Super Glut" Due To Supply Surge

Zero Hedge -

Oil Trading Giant Warns Of Looming "Super Glut" Due To Supply Surge

Echoing what has become a now daily refrain by commodity bears everywhere, Saad Rahim, chief economist of commodity-trading giant, Trafigura, said that the oil market faces a “super glut” next year as a burst of new supply collides with weakness in the global economy. According to Rahim, new drilling projects and slowing demand growth would weigh further on already depressed crude prices next year.

“Whether it’s a glut, or a super glut, it’s hard to get away from that,” Rahim said in remarks alongside the company’s annual results.

Brent crude has fallen 16% this year, on track for its worst year since 2020. Prices are expected to be further damped by major projects coming online next year, including in Brazil and Guyana. 

The glut thesis is hardly new, and has been popularized by banks such as Citi and Goldman for the past year. As Goldman analyst Daan Struyven wrote in his latest oil tracker note, "global visible oil stocks have built by nearly 2mb/d over the past 30 days." The banks expects them to grow significantly more in the coming years.

Meanwhile demand from China, which is widely seen as aggressively stocking its strategic petroleum reserve by 500kb/d (and as much as 1 mm/d according to some estimates) and is the world’s biggest oil importer, is expected to grow more slowly next year due to its huge fleet of electric vehicles, which have sharply reduced petrol demand. Low prices this year have prompted China to buy more crude to fill its strategic stockpile.

“China needs to keep buying at this rate, for that super glut to not show up even earlier,” Rahim added.

The US government has also been trying to keep oil prices low, and President Donald Trump has pledged to “drill, baby, drill” in a push to increase American production. There has also been speculation that the US will also refill its SPR which was largely emptied by Biden but since that will promptly drive prices higher, so far this has been nothing but speculation, and meanwhile the US barely has any reserves for a true emergency. 

Ben Luckock, head of oil trading at Trafigura, said in October that he expected oil prices could fall below $60 a barrel before rallying. “I suspect we’ll go into the $50s at some point across Christmas and the new year,” he said at the time.

According to the FT,  Trafigura reported net profits of $2.7bn during the fiscal year that ended in September, down slightly from $2.8bn the previous year, and a five-year low after years of bumper profits linked to Russia’s full invasion of Ukraine when most commodity traders were breaching sanctions and making a killing in the process.

Its non-ferrous metals trading division reported a record year, due in part to the profits made by shipping copper into the US amid the disruptions caused by whipsawing tariff rules, according to people familiar with the matter.

Trafigura CEO Richard Holtum said “significant headline-driven volatility” had been a major driver for markets this year and that the trend would continue in 2026.

“Trading conditions were not easy last year and our trading team put on a really credible performance across all divisions,” said Holtum.

However, the small drop in profits, combined with rising payouts to Trafigura’s employee-shareholders, meant group equity fell slightly, to $16.2bn, from $16.3bn the previous year, marking the first time this figure has shrunk since 2018.

Payouts to Trafigura’s employees rose to $2.9bn, up from $2bn during the prior year. The company, whose top management is based in Geneva, pays out “dividends” to its employee-shareholders, including by buying back the shares of departing employees over time.

Tyler Durden Tue, 12/09/2025 - 20:30

Conrad Black: Trump's Approach To Curbing Crime Is Proving Effective

Zero Hedge -

Conrad Black: Trump's Approach To Curbing Crime Is Proving Effective

Authored by Conrad Black via The Epoch Times (emphasis ours),

There’s no doubt that President Donald Trump’s campaign to reduce urban crime is fundamentally popular. The overwhelming majority of Americans oppose crime, particularly violent crime that threatens them in their homes or while engaging in daily activities on city streets and sidewalks.

Some Democrats continue to align themselves with individuals and groups broadly disapproved of by the public, including violent criminals who entered the country illegally and whose civil rights are defended on technical grounds prior to deportation. The same is true for disruptive university activists who block respected speakers and threaten Jewish students.

Members of the Louisiana National Guard patrol the grounds of the Washington Monument at the National Mall in Washington on Sept. 7, 2025. AP Photo/Jose Luis Magana, File

There is broad public support for Trump’s efforts to seal the southern border and reduce the number of illegal immigrants entering the country—from approximately 3 million annually under President Joe Biden to near zero today. Understandably, urban crime and illegal immigration are closely linked in the public’s mind. While the public supports the administration’s primary goals—to sharply reduce crime and completely end unlawful entry—the president is sometimes perceived as heavy-handed. A more refined approach could help secure the support these policies warrant.

The deployment of National Guard troops in Washington has been notably effective. Even the strongly partisan Democratic mayor, Muriel Bowser, thanked the president for their presence. Violent crime has declined by more than 50 percent, and petty crimes have dropped 40 to 50 percent. At the same time, the administration has begun restoring Union Station—a historic structure long plagued by vagrancy and drug use—revamping the Kennedy Center, and adding a grand ballroom to the White House, all reportedly without taxpayer cost. The president’s commitment to restoring Washington as a city of grandeur and civic pride is widely supported, both by Washingtonians and the public at large.

Meanwhile, some Democratic leaders in cities such as Chicago have accused the federal government of an “occupation,” suggesting it has no jurisdiction, despite Chicago being part of the United States. Such objections come as Metropolitan Chicago’s gun-related crime rate is reportedly 10 times that of similarly sized Toronto. Greater law-enforcement presence is clearly needed. However, the National Guard is a costly option, especially when guardsmen are deployed from out of state. For instance, guardsmen in Washington are from West Virginia, as Democratic governors of neighboring states declined to assist. Their deployment over four months has cost more than $200 million.

The National Guard has also been deployed to Los Angeles and other cities to contain riots opposing Immigration and Customs Enforcement (ICE). Border Czar Tom Homan has stated that 74 percent of deportees have violent histories and pose a threat to public safety. President Trump has emphasized that ICE targets “the worst of the worst.” While these claims may be accurate, they’re not universally accepted and would benefit from clear substantiation.

Critics—including many in the national political media—allege that the administration is targeting law-abiding, family-oriented individuals who entered illegally years ago and have since become productive residents, while some dangerous individuals escape detection. Even if the administration’s numbers are correct, that still suggests that 24 percent of deportees, according to Homan, aren’t dangerous. These individuals often become the focus of sympathetic features in outlets such as The New York Times. As with tariffs and other complex policies, the administration would benefit from refining its enforcement strategy to transform it into a broadly accepted success.

Given the sharp increase in attacks on ICE agents, it’s reasonable for agents to wear masks and body armour and to move discreetly when detaining suspects. The president’s strong defence of ICE appears justified, provided enforcement efforts truly focus on serious offenders rather than longtime residents who have otherwise complied with the law.

The administration might consider a version of President Bill Clinton’s initiative to fund 100,000 additional police officers—provided they’re deployed to high-crime areas rather than low-risk districts or desk roles. A balanced combination of National Guard support and increased local policing might be effective if Democratic mayors, often resistant, can be persuaded to cooperate. If not, federal authorities may need to persist with guard deployments, but should require local governments to share the financial burden.

Less than a year into his presidency, President Trump is fulfilling his campaign promises and has broad public backing. It would be a political setback if minor adjustments in policy execution prevent his administration from securing unambiguous public support. He should take steps to prevent inflammatory comparisons—such as those likening of his administration’s approach to that of Nazi Germany’s—from gaining traction. Politicians making such remarks should be held accountable not only for the deterioration of major cities but also for perpetuating inflammatory rhetoric.

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

Tyler Durden Tue, 12/09/2025 - 20:05

Wednesday: FOMC Announcement

Calculated Risk -

Mortgage Rates Note: Mortgage rates are from MortgageNewsDaily.com and are for top tier scenarios.

Wednesday:
• At 7:00 AM ET, The Mortgage Bankers Association (MBA) will release the results for the mortgage purchase applications index.

• At 2:00 PM, FOMC Meeting Announcement. The Fed is expected to cut rates 25bp at this meeting.

• Also at 2:00 PM, FOMC Forecasts This will include the Federal Open Market Committee (FOMC) participants' projections of the appropriate target federal funds rate along with the quarterly economic projections.

• At 2:30 PM, Fed Chair Jerome Powell holds a press briefing following the FOMC announcement.

Washington, DC Has The Highest Share Of Renters In America, Nearly Double National Average

Zero Hedge -

Washington, DC Has The Highest Share Of Renters In America, Nearly Double National Average

About one in three U.S. households rents, a ratio that has stayed surprisingly steady over the past six decades.

But with mortgage rates soaring from 2.7% in 2020 to almost 7% today - and home prices continuing to climb - the share of renters has edged up.

Today, it takes $121,400 to afford a typical home, or 43% higher than the average salary.

This graphic, via Visual Capitalist's Dorothy Neufeld, shows the share of Americans renting versus owning by state, based on data from the U.S. Census Bureau.

A Closer Look at Renting vs. Owning in America

As the table below shows, states with the highest share of renters are found in states with high costs of living, led by Washington, D.C. and New York.

Despite residents of Washington, D.C. having the highest average hourly wages nationally— reaching $51.30 in real terms—the number of renters far surpasses that of homeowners.

As a result of limited housing supply, it has one of the most competitive rental markets in the country. High home prices, and an influx of out-of-state residents, notably New York City and Boston, are further putting strain on renters.

Meanwhile, 45.7% of people in New York rent, ranking in second. In the Big Apple, the average monthly rent is $4,100 for a one-bedroom apartment in 2025, rising 22% in the past five years.

California (44.2%), Nevada (39.9%), and North Dakota (38.8%) round out the top five states by share of renters.

In contrast, West Virginia has the smallest share of renters across states, at just 24.5%. Supporting home ownership is its affordability, with the median home sale price standing at $225,506 in Q2 2025, significantly lower than the national median of $410,800.

To learn more about this topic, check out this graphic on rent prices in America by state.

Tyler Durden Tue, 12/09/2025 - 19:40

Aussie Data Centers Could Swallow 40 Million Litres Of Water Per Day, That's About 80,000 Households

Zero Hedge -

Aussie Data Centers Could Swallow 40 Million Litres Of Water Per Day, That's About 80,000 Households

Authored by Jerry Zhu via The Epoch Times (emphasis ours),

Australia’s utility industry warns the country’s current water supply is not enough to accommodate the explosive growth of data centres and artificial intelligence (AI).

A photo of the Global Switch data centre in Ultimo of Sydney, Australia taken on May 9, 2025. Courtesy of Kevin Lee

The Water Services Association of Australia (WSAA), the nation’s peak water body, says data centre developers are seeking about 5 to 40 million litres of water per day to cool down their facilities.

That’s the equivalent of 70,000 to 80,000 households or 16 Olympic-sized swimming pools.

Data centres, which store information for governments to businesses, cycle water through their facilities to cool down servers and prevent overheating.

However, the development of AI, which has much higher computational power, storage, as well as electricity needs, is also driving up the base requirements of data centres.

In fact, the WSAA estimates that by 2030, data centres in Sydney alone are estimated to use 10.5 billion litres a year (1.9 percent of Sydney Water’s supply).

By 2035, this is expected to balloon to 90 billion litres a year, the equivalent of 15 to 20 percent of supply.

Sydney is arguably the tech capital of Australia with 90 data centres currently in the state of New South Wales (NSW), followed by 40 in Victoria. Future data centre developments could be much larger and energy-intensive, the report says.

Adam Lovell, executive director of WSAA, stressed the need for Australia to plan its water use carefully.

“Australia is well positioned to become a global data centre hub, and that needn’t be at the expense of our water resources,” Lovell said.

“The key is to help the sector become smart water users.

“We have a history in Australia of developing innovative solutions to make sure industrial users through to residential consumers have reliable access to water supplies.”

The report contained five recommendations, including implementing efficiency standards, recycling water, more transparency by publishing metric on water and energy use, early collaboration between data centres and water utilities, and creating new frameworks for developments.

Greens MP Airs Concerns About Data Centre Water Needs

Abigail Boyd, Greens MP of the NSW Legislative Council, raised concerns about data centre water use in late November.

“The latest Independent Pricing and Regulatory Tribunal [IPART] determination for Sydney water prices notes that Sydney Water estimates that the water needs of data centres may be up to 250 megalitres per day by 2035 to fuel the explosion of artificial intelligence products,” she said during Question Time in NSW Parliament.

“That would be almost 20 percent of Sydney Water’s total water usage being consumed by data centres ...” she said (pdf).

“What is the minister doing to advocate for a more responsible approach to artificial intelligence and data centre development so that new infrastructure, like water connections, is appropriately prioritised towards housing and is not fuelling the latest tech bubble?”

In response, Rose Jackson, Labor minister of water and housing, said Sydney Water had not prioritised capital investment for data centres and that housing targets were the priority.

“The government is having collaborative conversations with Sydney Water and energy providers because some of the pressures that the member has identified in relation to water also relate to energy and ensuring that New South Wales is open for business and supporting the future economic needs of the tech sector,” Jackson said.

“We want New South Wales to be a place where investment occurs so that we are at the cutting edge of emergent technology, and we can take advantage of it,” she added.

Sydney Water is exploring a number of innovative opportunities to ensure that data centre development can be supported without putting pressure on the prioritised capital delivery for housing,” the minister said, noting that the water needs of data centres could also change as technology improves.

Federal and state ministers are expected to discuss the country’s growing water demands in Brisbane on Dec. 12 amid the government’s newly released artificial intelligence plan.

Tyler Durden Tue, 12/09/2025 - 19:15

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