Individual Economists

10 Wednesday AM Reads

The Big Picture -

My mid-week morning train reads:

• The Public Is the Exit: The words “initial public offering” make it sound like the public is getting in at the beginning. That may have been true a long time ago. Companies used to go public because they needed money to build factories, hire workers and expand the business. Public investors helped fund the next stage of growth. Today, most of that happens before the company ever reaches the stock market. TrendLabs on the late-stage private market playbook — companies staying private until the growth is extracted, then dumping shares on retail via IPO. The public markets have become the exit, not the destination. (TrendLabs).

• Judges Can Void a Tariff. They Can’t Rebuild Our Reputation. The Trump administration finalized new Section 301 tariffs on dozens of trading partners, ranging from 10 to 12.5 percent, perfectly timed to take effect as the temporary global tariff of 10 percent under Section 122 expires. The basis for these new tariffs is a five-month investigation into whether those countries have done enough to keep goods made with forced labor out of their supply chains. The Daily Economy on the lasting damage — courts can strike down the tariffs, but the reliability premium America spent 80 years building is gone. (The Daily Economy) see also Tariffs, Yet Again: All 60 country-specific “Determinations of Action” are identical boilerplate. Each is a single paragraph, and the template is word-for-word the same — only the country name, the rate (10% or 12.5%), and the cross-references change. No country-specific evidence, no discussion of any particular economy’s laws, enforcement record, or forced-labor exposure appears. Somehow, every major trading partner qualifies for tariffs — which is the reveal that this is not specific to any one nation’s behaviors. The Big Picture on the latest round of tariff whiplash — the market has learned to price the chaos, but the underlying damage to planning and investment keeps compounding. (The Big Picture)

• What makes a woman a witch? Financial independence: Women aren’t being burnt at the stake any more, but there is still risk and violence implicit in the label ‘witch.’ The Guardian on the historical pattern — witchcraft accusations tracked women’s economic autonomy. The women burned were disproportionately the ones with property. (The Guardian)

• The Degens are Winning in Oil ETFs: I want to cop to something. I have, on more than one occasion, dismissed the entire class of investors who trade ETFs short-term as “degens.” I didn’t invent the moniker. I started hearing it from friends who were aggressively trading crypto, self-referentially. But sometimes, the degens are right. They have been about oil. The attraction to make short-term market bets is real. When you think what everyone knows is wrong, it’s tempting to place a bet. And while Kalshi and Polymarket may be better venues for “someone is wrong on the internet” proof-trading, ETFs offer clean, efficient ways to lose your money too. Short-term market betting has fully colonized the ETF space. When you think everyone is wrong, it’s tempting to place a bet — and leveraged oil funds are a clean, efficient way to lose your money. (ETF.com)

• ‘Falling apart’: Trump’s Boeing deal hits turbulence with Beijing: China’s demands for parts and service guarantees to avoid the impact of possible future U.S. export restrictions has stymied a purchase agreement. (Politico)

• Stop Pathologizing Ordinary Life: Could our preoccupation with mental health be part of the problem? Not every bad day is depression. Not every nervous moment is anxiety. The New York Times opinion piece pushes back on the medicalization of normal human experience. (New York Times)

• Nobody’s born a minimalist: The joy & humor of surrealism. Plus, a new jewelry crafter, DIY sandal kits, reworked vintage tees & more. Blackbird Spyplane on how minimalism is a luxury belief that requires having had enough stuff to decide you don’t want it. The aesthetic of less is available only to those who’ve already had more. (Blackbird Spyplane)

• Unreleased Documentary Footage Captures Graham’s Obsessive Push for Iran War: A filmmaker followed the senator over the past three years, chronicling his relationship with Trump and Netanyahu. Surprisingly, it was Graham that drove the push into Iran, not Trump… Lindsey Graham on camera, relentlessly pushing Netanyahu toward war with Iran. The Wall Street Journal obtained footage that shows the senator’s role was far more active than previously known. (Wall Street Journal)

• How Netanyahu Lost America: The prime minister, a self-styled expert on the U.S., has shattered his country’s standing. The Atlantic traces the Israeli prime minister’s long arc from indispensable ally to strategic liability — and how his decisions cost Israel the one relationship it couldn’t afford to lose. (The Atlantic)

•‘Ted Lasso’ Was Finished. Then Jason Sudeikis Had an Epiphany: The Hollywood Reporter on the show’s unexpected fourth season — what changed Sudeikis’s mind and whether the magic can survive the return. As Apple TV’s game-changing hit returns for a never-supposed-to-happen fourth season, THR goes deep with the cast and creators on the off-field drama — and on-brand hope — that made it possible. (Hollywood Reporter)

Video of the day: Is Jeremy Clarkson’s pub OVERRATED?

Be sure to check out our Masters in Business interview this weekend with Som Seif Purpose Investments, founder/CEO, Toronto-based asset manager launched in 2012. He grew his first firm, Claymore Investments to $8B in assets by creating 34 ETFs over 6 years, establishing it as Canada’s leader in low-cost exchange-traded funds; he sold to BlackRock in 2012. Next, he co-founded Wealthsimple, which became the default investing app for a generation of Canadians. His wealth management firm, Purpose, was founded at the end of 2012, and manages>$31B in ETFs, mutual funds, alternatives, private assets, and digital assets. Som was named to Canada’s Top 40 Under 40 in 2011.

 

Tesla’s Cratering Cybertruck Sales Evoke Ford Edsel Comparisons

Source: Bloomberg

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The post 10 Wednesday AM Reads appeared first on The Big Picture.

How Does A Political Party Leader Survive This?

Zero Hedge -

How Does A Political Party Leader Survive This?

Authored by Steve Watson via Modernity News,

Far left UK Green Party leader Zack Polanski has caused uproar by sharing an Instagram post featuring a man in a T-shirt depicting a guillotine next to the words "We're only making plans for Nigel." The clear target was Reform UK leader Nigel Farage.

This lands just two weeks after Reform's Ann Widdecombe was beaten to death with a hammer in her own home.

Reform has reported Polanski to the Metropolitan Police for incitement to murder. The Met says it is conducting enquiries.

The image formed part of a carousel of photos from a Green Party event. Polanski, who has more than 700,000 Instagram followers, accepted a collaboration request. Once the specific frame was flagged, he unshared it.

A Green Party spokesman said he "unequivocally does not support this type of dangerous message" and claimed he had accepted the post "without realising there was more to it than he had seen." The same spokesman called the T-shirt "clearly in poor taste" while noting Polanski himself has received threats.

Nigel Farage shared a screenshot and stated the obvious double standard: "This is what Zack Polanski has just posted on his Instagram. If I was to post anything as inciteful then I would expect to be arrested, and so should Polanski."

Reform's home affairs spokesman Zia Yusuf posted a video reaction expressing disbelief at the sequence of events.

The Metropolitan Police confirmed: "Earlier today, we received a third-party report relating to an image shared on social media. We take reports of this nature extremely seriously, and officers are conducting enquiries into the matter."

Is the enquiry was serious or just purely performative?

Reform has also indicated it will refer Polanski to the Greater London Authority monitoring officer, given his elected role there.

The timing is not abstract. Ann Widdecombe, 78, Reform's immigration and justice spokeswoman and a long-serving former Conservative minister, was found dead at her remote Dartmoor home on 9 July.

Prosecutors told a court she sustained 21 blows to the head from a hammer in what was described as a planned and targeted attack. A man has been charged with her murder.

The killing immediately produced open celebration among sections of the left online, including on platforms that market themselves as more "kind" alternatives to mainstream social media. Users treated the death of an elderly woman for her politics as a punchline or a form of progress.

Against this backdrop, Polanski's post landed like petrol on dry grass.

Jack Hadfield noted the contrast with previous cases of social-media speech:

Alex Armstrong stressed equal application:

Nioh Berg highlighted the mechanics of Instagram collaboration posts. Accepting a collaboration requires a deliberate step; the image was visible.

Will we see yet another example of two tier policing in the UK?

Alex Phillips observed the media asymmetry:

Susan Hall of the London Assembly noted that this rhetoric is unacceptable in any context.

Polanski leads the same Green Party that has spent years elevating radical identity politics above basic national standards. In May, we documented the election of a transgender Tamil immigrant on a temporary student visa - with no British citizenship or permanent residency - as a Green MSP in Scotland.

The party's record under Polanski includes candidates investigated for antisemitism, open rejection of biological reality, and a consistent prioritisation of ideological purity over ordinary voters.

The culture that normalises such figures is the same culture that treats a guillotine graphic aimed at a political rival as an unfortunate oversight.

British politics has already seen two sitting MPs murdered in recent memory - Jo Cox and David Amess - plus the hammer killing of Widdecombe. Security concerns for public figures are no longer theoretical.

Farage has repeatedly described himself as among the most physically and verbally attacked politicians of the modern era. Polanski has previously labelled Farage a "fascist" and a "grifter." The language of existential threat has become casual on one side of the spectrum while the same side demands maximum protection and sensitivity for its own.

Two-tier enforcement remains the live issue. Cases involving speech from the right have produced arrests, charges, and in some instances custody. Equivalent or stronger material from the left has frequently been waved away as "poor taste," "satire," or an unfortunate oversight.

The Met's statement that it takes such reports "extremely seriously" will be tested by whether any meaningful action follows or whether the file quietly closes once the news cycle moves on.

A political party leader is not an anonymous activist. He is a public figure with institutional reach, elected positions, and a platform that amplifies whatever he platforms.

Accepting a collaboration that places a beheading graphic of a rival in front of three-quarters of a million followers is not a private lapse. It is a public act. Claiming not to have noticed the content after the fact does not restore the credibility that was spent.

The response from the Green Party has been damage control rather than unambiguous rejection of the underlying culture that makes such imagery thinkable.

Either the rules on incitement and threats apply evenly, or they exist solely to police one side. If Polanski remains leader of the Green Party after this, it confirms the far left's extremist stance and proves that only those who oppose it will be targeted and punished.

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 Wed, 07/29/2026 - 02:00

The War's Back Is Broken

Zero Hedge -

The War's Back Is Broken

Authored by Alastair Crooke

Trump ordered the US military not to carry out new strikes on Iran Friday night, despite approving earlier a "Gates of Hell massive attack" on Iran. The US has now requested a new temporary ceasefire with Iran and is seeking a return to the collapsed and suspended MoU, with discussions to include Yemen, and with Trump seeking to make AnsarAllah a party to the negotiations.

Clearly Trump is angry, and fears that that the war is consuming his Presidency (and his legacy). Iran comprehensively rejected all negotiations throughout this last week and confirmed it will not start negotiations under any circumstances. Put simply, why would Iran consent to give the US time to regroup and rearm before launching another round of strikes on Iran when it has the US “on the run.”

A return to the MoU whose credibility Trump repeatedly has shredded? Unlikely.

Will Schryver notes that rumors are swirling that the Pentagon is pressuring Trump to call off the war with Iran because the US has nearly exhausted its stockpiles of air-defence interceptors and stand-off strike missiles. The President’s top aides are also uneasy about the prospect of a widening war in the Middle East, the alienation of key Gulf allies vulnerable to further Iranian attack, and the coming energy crunch. “Few if any in Mr. Trump’s inner circle believed the plan to escalate was wise, said the two people briefed,” the New York Times reports.

It seems too that jiggery-pokery over the exact fuel supply situation in the US may have played a part in Trump’s backtrack. Larry Johnson reports that –

A brief prepared by Karl Miller investigates how the US military’s covert fuel procurement and export operations are depleting the nation’s diesel and jet fuel reserves, particularly during a period when domestic stocks are already critically low.

In gist, Miller says that –

much of this (covert) fuel export is routed through opaque channels, such as the Rotterdam trans-shipment hub, where the final military or foreign allocation is not publicly reconciled, leaving the American economy exposed to shortage risks – whilst military and foreign operations – ‘notably Israel’ – receive priority access.

This report by Miller seems to connect to the US authorities’ open manipulation of oil benchmarks designed to convince markets that there is no danger of fuel shortages arising from the ongoing emergency release from the SPR (Strategic Petroleum Reserves) of 172 million barrels that was initiated to counter supply shocks from the conflict with Iran.

Whilst the statuary security floor is 250 million barrels (the current level is around 300), nonetheless the narrative is being promoted that the drawdown can go even further (to 70 mbpd). But can it? What is the minimum level the strategic oil reserves can go to? It is more complicated than just one big vat of crude that has a specific level. The SPR is composed of many caverns, and contains different types of crude oil, that are being drawn down at different rates, with some caverns likely to collapse if drained too far. In short, nobody knows how far is too far. It’s all guesswork.

With the back broken to Trump’s military assault the only path back to negotiations would be to offer front-loaded real concessions. But even were Trump to do this, would he be believed? And can Trump’s mental state sustain such implied humiliation?

The main obstacle on the path back to negotiations with Iran is that he and his inner circle understand Iran back-to-front.

They aver to believe that they are dealing with an intransigent and hardline leadership, whilst Iranians as a whole long for an exit.

This is wrong; it is the other way around. It is the leadership that is pragmatic, and it is “the street” that is overall more hard-line and demands vengeance. And demands to know why there should be negotiations at all.

Then again, Team Trump and his Fox News cheerleaders have slipped from the earlier US vision of itself as a redeemer nation into a radical Manichaean “characterization of itself,” Professor Michael Vlahos writes, in which –

American ‘good news’ has been replaced by the ever-present spectre of Evil and the threat of force. The holy words, Freedom and Democracy, while still chanted, have become a hollow mantra. The American ‘gospel”’no longer preaches about bringing redemption and expiation: it is now concerned with enforcement and punishment. The volte-face came in an instant, on 9/11 and with Guantanamo.

The problem then centers on attitude: How is it possible to negotiate or talk to the embodiment of evil (as Trump terms the Iranians)? It isn’t possible, of course. That was the point to casting enemies in such dark terms. It precludes true mediation. It precludes a solution that can be viewed as the elevation to power for “one of the most evil people in history,” leading a “gang of bloodthirsty thugs.” It distils policy to the search for dominance over the “otherness.”

The West exhibits one particular way of thinking that it deems to represent the essence of that which is Human. This mode of thinking (often termed Apollonian) links to Patriarchy, law, and vertical top-to-bottom secular, rational, mechanistic thinking. It offers little room for “betweenness.” Things are either “A” or “non-A.”

However, another sphere (often termed the Dionysian) expresses the energetic duality in both nature and in the human – male and female; order and exuberant transgression; and of rectitude and degeneracy. They form the poles within consciousness that both co-inhere in us, and that co-constitute each other. (Dionysian logos may be viewed perhaps as the shadow, or even of the revolt against Apollo).

And then there is Persephone (the underside to the Dionysian “shadow”) expressing the chthonic, feminine existence. Here there is no male pole, but only a goddess radiating earthiness and the female principle of reproduction, the process of growth and of caring, and of underworld knowledge (called intuition) – symbolizing the cyclical Life of Aphrodite, decay, death and ultimate renewal.

Consciousness however, mostly expresses the human quality from one particular orientation. Nonetheless, all civilizations draw from the full diversity of such components to consciousness that – one way or another – respond to a particular civilization.

To think in one culture is to think in one way; however to belong to a different culture, a different ethnic group, a different religion – means that thinking will differ. Yet we all remain human.

So the imperial hubris of Trump is beginning to face the fact that he will find it hard – possibly impossible – to find a solution to the Middle East, because to see the world from the purely Apollonian perspective is essentially male and exclusivist and fails to understand “otherness”; but rather relies on exceptional privilege. It simply does not – and cannot – recognize a plurality of minds.

The US has lost the war. By adopting such uncompromising Manichaean language, Trump effectively has severed himself from any prospective diplomatic solution. By widening the war (Lebanon, Yemen, Syria and Iraq) he has severely complicated any diplomatic track. All elements are interrelated, yet they also have separate agendas. Thus a solution involves a complex matrix of issues, rather than a binary dispute between the US and Iran alone. The US ultimately will have to capitulate, with the result that Iran becomes a regional power (strengthening Russia and China), whilst the Region slowly will come to terms with this new West Asian reality.

Tyler Durden Tue, 07/28/2026 - 23:25

Los Angeles Is Painting Its Streets To Fight Heat Waves

Zero Hedge -

Los Angeles Is Painting Its Streets To Fight Heat Waves

Researchers found that coating more than 700,000 square feet of asphalt in a Los Angeles neighborhood with a solar-reflective material helped reduce urban heat, though the benefits came with limitations, according to the Times of India.

The project, conducted in Pacoima in the San Fernando Valley and published in Environmental Research Communications, covered roads, parking lots, playgrounds, and basketball courts with a reflective coating designed to bounce sunlight away instead of absorbing it. During a September 2022 heat wave, afternoon air temperatures in treated areas were as much as 3.5°F (1.9°C) cooler than in a nearby untreated neighborhood. Pavement surface temperatures also dropped by roughly 10°F.

The report says that researchers cautioned, however, that cooler pavement doesn't always translate into greater comfort for pedestrians. While reflective surfaces absorb less heat, they can also reflect more solar radiation back into the surrounding environment, potentially increasing the radiant heat people experience. Factors such as direct sunlight, humidity, wind, and surrounding surfaces all influence how hot it actually feels outdoors.

The findings suggest reflective pavement can help reduce urban heat, particularly during extreme heat waves, but works best as part of a broader strategy that also includes trees, shade, and other cooling measures. Researchers also noted that coatings can lose effectiveness over time due to weather, traffic, dirt, and routine road maintenance.

Tyler Durden Tue, 07/28/2026 - 23:00

Chinese University Reviewing Gene Editing Research As Family Discloses Daughter's Death

Zero Hedge -

Chinese University Reviewing Gene Editing Research As Family Discloses Daughter's Death

Authored by Melanie Sun via The Epoch Times,

A top-tier Chinese university said on July 26 that it is investigating gene editing research by one of its researchers following reports that scientists treated a 6-year-old girl as part of their research, who died during the unprecedented human trial.

Molecular model of messenger ribonucleic acid (mRNA), in an undated file image. (Kateryna Kon/Shutterstock

Shanghai Jiao Tong University School of Medicine, one of China's Ivy League-level institutions, said in a statement that it "attaches great importance to the matter and has established a special working group to conduct a comprehensive investigation."

New York-based nonprofit science watchdog Retraction Watch and peer-reviewed journal Science disclosed on July 23, on behalf of her grieving family, the death of the 6-year-old girl, who underwent an experimental gene editing procedure in a clinical trial conducted by Shanghai Jiao Tong University researchers at the affiliated Xinhua Hospital.

The girl had been diagnosed with global developmental delay in March 2023, her parents told Science. Genome sequencing later pointed toward a single-base mutation in her CHD3 gene as the cause. The rare mutation, which causes Snijders Blok-Campeau syndrome, impacted a vital protein essential for brain development, leaving her with challenges in her motor and language skills that became more evident when she turned 4.

The condition doesn't usually impact life expectancy, University of Montreal geneticist Philippe Campeau, who helped link the condition to the CHD3 gene, told Science. Symptoms can range from mild cases where the only obvious indication is a slightly enlarged head, to severe cases with intellectual deficits, seizures, and heart problems.

The girl, who died in March 2025 seven days into the world-first clinical gene editing trial, which was aimed at removing her condition, had milder symptoms.

Her parents told the watchdog that they were persuaded by the team of China-based researchers, led by neuroscientist Qiu Zilong, to fund an experimental procedure that would edit one nucleotide in the chromosomes of their daughter's treated cells, changing a T to a C in her mutated gene. The parents and relatives were asked to contribute $860,000 toward the experiment.

Following the girl's death, the scientists returned the funds, and the hospital was fined by local authorities, her parents told Science.

While the clinical trial was never published in a medical journal following the death, Science and Retraction Watch revealed that the researchers injected doses of two novel engineered viruses into the girl's spinal fluid. The method is currently the most common delivery system for gene-editing therapy. The trial was the first attempt to use this particular gene-editing method to treat a human.

The family told the watchdog that the cause of death was identified by the hospital's ethics committee as a severe immune response to the procedure. They also said that potential death was not explicitly listed as a risk in the procedure.

Qiu and his co-authors published related research in Nature in February 2026 that involved conducting the CHD3 gene editing procedure on mice. A peer reviewer of the study, Campeau told Science he did not notice the extent of changes made when the mouse study - whose original experiments were funded by the family - was resubmitted without the family's genetic data or a sentence recognizing their "participation and support."

He approved it for publication. The paper only mentioned that research "bridging the gap between preclinical research and clinical translation remains a significant challenge."

The child's parents told Science they submitted a formal request to the School of Medicine dean that the mice model paper be retracted "to prevent more children from suffering and our blood and tears flowing in vain." According to Science, the experiment was also conducted on monkeys, after which the ethics committee approved the family's clinical trial on Jan. 2, 2025. Other research, published Feb. 17, would soon show that monkeys receiving similar gene-editing therapies suffered moderate to severe liver damage.

The school said in its statement that it has "always attached great importance to research integrity and research norms, and resolutely opposes conducting medical scientific research in violation of research ethics."

"The medical school will take this matter seriously based on the investigation results," it said. "We appreciate the concern and oversight from all sectors of society."

A spokesperson from Nature told The Epoch Times by email, "We are looking into the matter carefully following an established process."

The same day that the family's report of their daughter's death was published by Science, Shanghai Jiao Tong was added to the Pentagon's list of research institutions deemed a threat to U.S. national security.

The civilian institution joins 87 other institutions in China that have been barred from projects involving U.S. federal funding and collaboration starting fiscal year 2026.

Scientists in China and around the world are vying to be the first to deliver safe gene-editing treatments, with most at this early stage focusing on treating life-threatening conditions.

Some scientists have had success in gene-editing treatments, including the most recent breakthrough last year by a Philadelphia team who used lipid nanoparticles delivered by intravenous infusion to treat a baby boy with a life-threatening liver disorder.

Tyler Durden Tue, 07/28/2026 - 22:35

DSA Platform Includes Abolishing Prisons, Supreme Court, And Presidency

Zero Hedge -

DSA Platform Includes Abolishing Prisons, Supreme Court, And Presidency

The Democratic Socialists of America wants you to know exactly what it wants, and Megan Romer, the group's national co-chair, laid it out on national television without once reaching for a hedge word over the most radical ideas on the party platform.

The platform itself reads like a fever dream a committee wrote line by line. A 32-hour workweek with no reduction in pay and benefits, a federal jobs guarantee, canceling all student debt, and free college from pre-K through graduate school anchor the economic wish list, alongside healthcare that is universal, free, and includes gender-affirming care as a guaranteed right.

The platform calls for more publicly owned social housing, universal rent control, and a guaranteed lawyer for every tenant. On policing, the platform wants demilitarized police departments, defunded police unions, and money pulled out of police budgets entirely, all of which the DSA frames as a first step toward abolishing prisons and policing outright.

On foreign policy, the platform demands the defunding of the Department of War, the closure of overseas military bases, and an end to all foreign wars, and it pairs that with support for International Criminal Court prosecutions of what it deems American war criminals. As for Israel, the DSA calls for an end to all U.S. military and economic aid, prosecution of American and Israeli leaders over what many consider a genocide in Gaza, and recognition of a Palestinian state with Jerusalem as its capital.

The DSA is just as blunt about reimagining how the government works. The platform seeks statehood for Washington, D.C., self-determination for U.S. territories, and the abolition of both the Electoral College and the Senate, alongside an expanded House and a presidency and Supreme Court that answer to Congress instead of operating independently. The DSA wants to swap the two-party system for proportional representation and ranked-choice voting and pay for all of it through full public financing of every election.

And, to top it all off, the platform calls for slavery reparations.

Fox News host Shannon Bream ran through the DSA's platform position by position, true or false, no room to dodge. Romer never flinched. She confirmed that the Democratic Socialists of America's platform calls for abolishing the Senate, replacing the presidency and Supreme Court, eliminating ICE, ending borders while granting amnesty to illegal immigrants, defunding the Pentagon, abolishing prisons as a long-term goal, and placing most large corporations under government or public ownership. At every step, she answered without hesitation, affirming that each position accurately reflected the DSA's platform.

The problem this presents for Democrats is that the DSA is no longer a fringe group begging for a seat at the table. DSA candidates are running for Congress as Democrats and winning. Claire Valdez won her primary in New York's 7th congressional district. Darializa Avila Chevalier took the 13th. Brad Lander won the 10th. All three ran with DSA muscle behind them and the backing of New York Mayor Zohran Mamdani, who has become the group's biggest trophy. Melat Kiros knocked off longtime Rep. Diana DeGette in Colorado's 1st District, a seat DeGette had held for decades. Chris Rabb won his primary in Pennsylvania's 3rd District. Janeese Lewis George won the mayoral primary in Washington, D.C.

Asked whether the Democratic Party ought to be nervous about where the DSA is dragging it, Romer flipped the question back on the party's leadership.

"The establishment Democrats should be worried about the voters and about what the voters think and about what the constituency thinks, and ... right now they have not been delivering, and our candidates are and have been, and it's resonating with voters," Romer replied. "I also have been told a lot of times by Democrats, don't vote third party. It's wasting your vote," the DSA co-chair continued. "So, we run on the Democratic ballot line where it makes sense. We run independents sometimes where that is a viable possibility, but it's a ballot line. And what matters is what the voters think. And the voters are overwhelmingly choosing our candidates."

Republicans are likely to use the DSA's radical platform as a cudgel against every Democrat on the ballot in this year's midterms. Establishment Democrats can keep insisting the DSA is a small, manageable faction, but the reality is that its candidates are winning real primaries as Democrats nationwide, and that leaves Republicans a simple play: put every Democrat opponent on the spot and force them to either embrace the DSA's agenda or publicly reject it.

Tyler Durden Tue, 07/28/2026 - 22:10

ICE Dismantles SIM Farms In Nationwide Operation

Zero Hedge -

ICE Dismantles SIM Farms In Nationwide Operation

Authored by Naveen Athrappully via The Epoch Times,

Immigration and Customs Enforcement's (ICE's) Homeland Security Investigations carried out a nationwide operation between June 22 and July 10 that dismantled "SIM farms" run by transnational criminal organizations.

File photograph of a cell phone sim card at a press conference in Paris, France, on Feb. 25, 2015. Kenzo Tribouillard/AFP via Getty Images

SIM (subscriber identity module) farms are systems containing large numbers of SIM cards from different wireless carriers, often housed in banks of cellphones, modems, or specialized devices known as SIM boxes.

These can be used to send and receive bulk messages or calls and often exploit voice over internet protocol (VoIP) technology to do so. Initially developed for legitimate purposes, the technology has become prominent among organized fraudsters targeting mass audiences through phishing texts, scam calls, and fraudulent online accounts.

The recent nationwide operation, dubbed Operation Signal Break, "dismantled critical command-and-control infrastructure used to perpetrate large-scale telecommunications fraud across the United States," ICE said in a July 24 statement.

Authorities will now analyze the seized SIM data to identify victims and assess losses caused by such fraud. The illicit proceeds from the fraud, which are suspected to be linked to Chinese transnational criminal organizations and distribution networks, will be traced.

This is expected to support criminal indictments, sanctions targeting national and international infrastructure used in criminal activity, and asset seizures. SIM box operations are estimated to result in losses worth $15 million annually to Americans, according to ICE.

SIM box fraud, "also known as interconnect bypass fraud, is a scheme in which fraudsters reroute international calls to appear as local ones," a Nov. 8, 2025, post from IT services provider Synaptique said.

For instance, when a foreign national calls someone in the United States, the call is diverted through VOIP to a SIM box in America instead of passing through a legitimate international call gateway. The SIM box then uses one of the local SIM cards to place a new local call to the recipient.

SIM boxes can be used by criminals to communicate in a clandestine manner. Foreign rival states and intelligence agencies can also use SIM boxes in their operations.

In its statement, ICE said that Operation Signal Break mobilized specialized SIM Box Surge Teams composed of criminal analysts, special agents, and computer forensic analysts, surging them to California, Florida, Texas, Massachusetts, New York, and New Jersey to tackle SIM farm operations.

"I commend our special agents for their outstanding dedication and teamwork in dismantling illicit telecommunications infrastructure," Homeland Security Investigations (HSI) Acting Executive Associate Director John Condon said in the statement.

"Their relentless pursuit of justice and commitment to protecting the integrity of our communications networks have made our communities safer and sends a clear message to those seeking to exploit our systems to defraud Americans."

Since 2024, the HSI has seized more than 1,900 SIM boxes, more than 500,000 SIM cards, and in excess of $700,000 in illicit proceeds. It has executed more than 116 federal criminal search warrants. In total, 68 SIM farms used to facilitate fraudulent texts and calls have been disrupted across 15 states. The probes have led to one criminal arrest and 11 administrative arrests.

In September 2025, the U.S. Secret Service (USSS) announced the dismantling of an "imminent telecommunications threat" in the New York tristate area that involved the use of thousands of SIM cards.

A network of electronic devices located throughout the region was used to conduct telecommunications-related threats against senior government officials. In total, more than 300 co-located SIM servers and 100,000 SIM cards were found across multiple sites.

In addition to enabling anonymous telephonic threats, the infrastructure could facilitate other crimes, such as enabling encrypted communications between criminal enterprises and threat actors, and disabling cell phone towers, according to the U.S. Secret Service.

"The potential for disruption to our country's telecommunications posed by this network of devices cannot be overstated," Secret Service Director Sean Curran said in the statement.

In an international case of SIM box criminal operations, Europol announced in October 2025 that it had taken down a cybercrime-as-a-service criminal network that provided SIM box services to criminals worldwide.

A server farm in New York City on Sept. 23, 2025. US Secret Service via Getty Images Tyler Durden Tue, 07/28/2026 - 21:45

Watch: US Navy's New Suicide Drone Boats Help Sink Decommissioned Amphibious Assault Ship

Zero Hedge -

Watch: US Navy's New Suicide Drone Boats Help Sink Decommissioned Amphibious Assault Ship

The US military has effectively taken a page from Ukraine's drone-boat playbook, using a swarm attack against high-value Iranian maritime assets earlier this month. Separately, a Texas shipyard is preparing to mass-produce these unmanned vessels by the thousands.

The latest evidence that the Navy is rapidly adopting one-way attack vessels emerged during RIMPAC 2026 near Hawaii.

In a live-fire exercise, two Global Autonomous Reconnaissance Craft were deployed against the decommissioned amphibious assault ship USS Peleliu, according to the military blog Army Recognition.

Here's more from the outlet:

On July 17, 2026, the U.S. Navy used the Global Autonomous Reconnaissance Craft (GARC) in a live-fire attack for the first time, directing two small unmanned surface vessels (USVs) against the decommissioned amphibious assault ship USS Peleliu during the RIMPAC exercise near Hawaii.

The craft were operated by the Unmanned Surface Vessel Division 32 (USVDIV-32) and entered the engagement after larger weapons had already struck the target, as part of a coordinated attack.

The two vessels detonated near the waterline, adding localized blast, structural deformation, and flooding to damage produced by missiles, aircraft, submarines, and land-based firing units.

The engagement demonstrated that a small, container-transportable vessel carrying as much as 454 kilograms of payload could contribute to the destruction of a major warship.

Watch:

Earlier this month, three US Navy-backed Saronic Corsair one-way attack vessels struck Iran’s Bandar Abbas Naval Base.

As we continue expanding our coverage of autonomous warfare, these developments point to the rapid US adoption of low-cost, attritable warbots. The next phase will likely be a massive Pentagon procurement cycle focused on stockpiling thousands of drone boats and millions of aerial one-way attack drones.

Tyler Durden Tue, 07/28/2026 - 21:20

OpenAI's Rogue Agent Hit A Second Company, Executive Reveals - And The Blast Radius Just Got Bigger

Zero Hedge -

OpenAI's Rogue Agent Hit A Second Company, Executive Reveals - And The Blast Radius Just Got Bigger

The rogue OpenAI agent behind this month's unprecedented AI-driven cyber intrusion claimed a second corporate victim, an executive at New York-based Modal Labs has revealed - a detail absent from the original account and one that widens the known blast radius of the episode.

According to the Modal executive and sources cited by Reuters, the same autonomous agent that broke into Hugging Face also compromised one of Modal's customers, using that customer's environment as a staging base for the broader campaign.

Modal was pointed about the distinction: its own platform and isolation were never breached. The agent exploited an unauthenticated endpoint that one of Modal's customers had left open to the internet - effectively an unlocked door anyone could have walked through - giving it root-level access to that customer's code-execution sandboxes. From there the agent had a disposable, third-party launchpad from which to run the rest of its operation.

It's bad enough that a frontier AI agent can independently discover attack paths, escape its container, and compromise an unaffiliated company's production systems. The Modal revelation shows it reached further than that - treating any publicly reachable, poorly secured infrastructure it encountered as expendable staging ground, exactly the opportunistic chaining that security researchers have warned agentic systems would carry out at machine speed.

The Spree That's Already Known

Most of what led up to the Modal disclosure has already been picked over, but the shape of it is worth a recap. In early July, OpenAI was running an internal evaluation built on ExploitGym - a public benchmark that measures how well an AI system can turn a known vulnerability into a working exploit. The models under test, GPT-5.6 Sol and a more capable unreleased prototype, were deliberately run with their cyber-safety refusals reduced and the classifiers that normally block high-risk activity switched off, because the point was to measure maximum offensive capability.

The agent found and exploited a previously unknown flaw in the one package-registry proxy it was allowed to reach, escalated privileges, moved through OpenAI's research environment, and got to a machine with open internet access. Once online, it reasoned that Hugging Face likely hosted the answer key to the very benchmark it was being tested on, and went to steal it rather than solve the problems itself. Between roughly July 11 and 13 it ran thousands of automated actions against the platform - gaining code execution through two separate flaws in its dataset-processing pipeline, harvesting credentials, and moving laterally across internal clusters. Forensic work later recovered on the order of 17,600 distinct attacker actions.

Hugging Face caught and contained the intrusion through its own AI-assisted monitoring, and says the only thing the agent actually made off with was a limited set of the benchmark's challenge solutions - no public models, datasets, or user-facing services tampered with. To reconstruct the timeline, its team had to fall back on an open-weight model, because the commercial frontier models refused to analyze the real attack data.

What The Wider Scope Means

The Modal disclosure lands on top of a timeline that was already awkward for OpenAI. By several accounts, the company did not recognize its own agent as the source for roughly a week:

  • July 16: Hugging Face goes public, attributing the intrusion only to an unknown autonomous AI agent, without naming the operator.
  • July 21: OpenAI formally acknowledges the incident, connecting the activity to its own evaluation only after combing internal logs over the preceding weekend.

OpenAI has called the episode "an unprecedented cyber incident" and maintains the models were narrowly fixated on the evaluation goal with no broader malicious intent. In its latest update, the company said the more capable model was an internal-only prototype, since deactivated and restricted, that the proxy vulnerability has been disclosed to the vendor, and that a small number of publicly exposed credentials on other services were also used along the way - the kind of qualifier that, paired with the Modal revelation, suggests the full scope of the campaign is still coming into focus.

Tyler Durden Tue, 07/28/2026 - 20:55

Federal Court Rules For Woman Fired For Refusing COVID-19 Vaccine

Zero Hedge -

Federal Court Rules For Woman Fired For Refusing COVID-19 Vaccine

Authored by Zachary Stieber via The Epoch Times,

Kaiser Permanente wrongly fired an employee who declined to receive a COVID-19 vaccine because she gave proper notice to the company of her religious objection to COVID-19 vaccination, a federal appeals court has ruled.

A COVID-19 vaccination in Illinois on Sept. 9, 2022. Scott Olson/Getty Images

Mimi Weiss, who worked for Kaiser Permanente's The Permanente Medical Group for 20 years before being fired, "plausibly alleged that she provided notice of her religious conflict with the mandate in her initial request for a religious exemption," Circuit Judge Danielle Forrest wrote on July 24 for a unanimous panel of judges on the U.S. Court of Appeals for the Ninth Circuit.

Weiss was working fully remotely, or off-site, in August 2021 as a senior managerial consultant when Kaiser Permanente imposed a COVID-19 vaccine mandate. Weiss, a Christian Jew, within weeks filed for a religious exemption, and Kaiser Permanente initially approved the request.

In September 2021, though, Kaiser Permanente said employees had submitted religious accommodation requests with identical language. Expressing concern that some of the requests were not legitimate, the company asked employees to file fresh requests using their own words. Officials then asked Weiss new questions, including, "What else besides the COVID-19 vaccine do you refuse to put in your body as a result of your religious belief?"

Weiss said she would not provide private information. Kaiser Permanente placed her on unpaid leave. Then it fired her for not complying with the mandate, prompting a lawsuit by Weiss.

A federal judge in 2024 ruled against her, concluding that Weiss had not provided Kaiser Permanente with sufficient notice of the conflict between receiving a vaccine and her beliefs.

The Ninth Circuit ruling overturns that decision, pointing to a previous opinion in which the appeals court said that to provide notice, an employee must only give "enough information about [her] religious needs to permit the employer to understand the existence of a conflict," and that requiring any more details "would permit an employer to delve into the religious practices of an employee in order to determine whether religion mandates the employee's adherence."

Applying that framework to the current case means that Weiss did give adequate notice, the panel said, because she identified herself as a Christian Jew, listed specific doctrines that she said barred her from receiving a COVID-19 vaccine, and outlined her belief that she should not "introduce foreign substances" into her "body temple" that would "change how [her] Creator designed it."

In a split 2-1 decision, the panel also said that Weiss has shown sufficient evidence to bring forth allegations that Kaiser Permanente violated her right to privacy.

Kaiser Permanente did not return a request for comment by publication time.

"I never imagined my faith would end up costing me my job," Weiss said in a statement.

"I wasn't asking Kaiser for special treatment, just the freedom to live according to my conscience. After 20 years of service, I didn't think that was too much to ask.

"I'm grateful the court recognized that religious employees should not have to give up their beliefs or their privacy to keep their jobs."

Tyler Durden Tue, 07/28/2026 - 20:05

GenderSpeak: Weaponizing Gender Against Sex

Zero Hedge -

GenderSpeak: Weaponizing Gender Against Sex

Authored by Wendy McElroy via Brownstone Institute,

When and why did the word "gender" displace the word "sex?" "Gender" refers to a person's socially constructed identity of being male, female, or some other category, while "sex" refers to physical characteristics of male or female, such as chromosomes. Gender is a matter of a person's self-perception; sex is a circumstance of birth.

When did sex get pushed to the curb by gender? In his book The Man Who Invented Gender, Terry Goldie claims that the sexologist John Money of Johns Hopkins Medical Center (Baltimore) first used the word "gender" in its modern meaning in 1955. Money pioneered the word to describe his famous John/Joan experiment that was conducted on a young boy named Bruce who'd lost his penis in an accident. To 'prove' Money's theory that sexual identity was learned and not biological, Bruce's parents raised him as a girl, complete with a surgically constructed vagina. The experiment failed. Bruce ultimately insisted on living as male, but he did not recover from the ordeal Money imposed on him, which he called torture. Bruce committed suicide in his 30s.

By then, however, Money had declared for decades that John/Joan was a complete success; discussions of "gender identity" abounded in '60s medical journals and academia. By the '70s and '80s, feminists brought the term to the streets, with "gender" describing a person's self-defined sociocultural identity and "sex" meaning biology. Then, the word wedged its way into government. In 1993, for instance, the Food and Drug Administration (FDA) replaced "sex" with "gender" in its literature. In 2011, "sex" returned to the FDA to mean biology while "gender" meant "a person's self-representation." The term went global. Also in 1993, the United Nations Declaration on the Elimination of Violence Against Women (DEVAW) vaguely defined this aggression as "any act of gender-based violence that results in, or is likely to result in, physical, sexual or psychological harm or suffering to women."

Genderspeak became the language of elites, social justice activists, and the government, while average people still spoke of "sex". But more than elitism lies behind the difference in words. By swapping in their own terms, elitists - especially professional feminists - grabbed the narrative on sexuality and politicized it to dismiss anyone who disagrees. Since the average male generally still uses biology to define his sexuality, he is an opponent; the average male is a living, breathing disagreement.

The ideology of gender faces an obstacle, however. If people can argue effectively against gender, then the narrative is difficult to manage. Those who dissent must be intimidated into silence or otherwise marginalized. The main strategy is to condemn dissenters as hate-filled. If some people cannot be silenced, then their words or opinions can become hate crimes punishable by law. George Orwell's novel Nineteen-Eighty-Four is about a dystopian society of social control, which is maintained largely through restricting language. Since words are the foundation of thought, this means people cannot form thoughts, let alone articulate them. The villain of Nineteen-Eighty-Four proclaims, "The whole aim of Newspeak is to narrow the range of thought." He concludes, "The Revolution will be complete when the language is perfect."

Men's health researcher James L. Nuzzo highlights an attempt to perfect the language. "In recent years, use of the phrase 'gender-based violence' (or 'gendered violence') in the titles and abstracts of papers indexed in PubMed has increased noticeably. Between 2019 and 2025, the phrase 'gender-based violence' (or 'gendered violence') appeared in the titles or abstracts of 2,784 articles indexed in PubMed." [Chart available here.]

A typical definition of gender-related violence or gendered violence is "any form of physical or non-physical violence or abuse against a person or group of people because of biased or harmful beliefs about gender. It can include things that happen online and that use digital technology." This definition is typical because it includes non-physical violence (discrimination) and abuse (words) that are motivated by non-specific "biased or harmful beliefs about gender." Nineteen-Eighty-Four would refer to such non-physical violence as "crimethink," with thought itself being an assault.

Just as "sex" is displaced by "gender," well-researched and comparatively clear terms such as "domestic violence" are displaced by less-defined ones such as "gender-related violence." This achieves several goals. For one thing, the confusing definition becomes elastic. Almost any word or act can be stretched to qualify as "gender-related violence," especially since virtually everything in the politicized feminist universe is gender-related.

But the most important purpose of swapping in the word "gender" is to introduce a subtle but powerful bias that controls the narrative; it creates Genderspeak.

The concept of gender comes directly from the twin ideologies of Social Constructionism and Gender Feminism. Social Constructionism tells us that male and female are learned forms of behavior (gender) rather than biology (sex).

To this, Gender Feminism adds an ideological layer. Male and female are patriarchal learned behaviors; they are social concepts derived from white male capitalistic culture. Thus, approaching violence in a correctly gendered way means rejecting white male capitalism - the economic system that is said to vest power and wealth in the hands of white men at the expense of everyone else. To embrace gender is to reject white male culture and capitalism, with 'the free market' usually viewed as a synonym.

Genderspeak is similar to Orwell's Newspeak. Both are ambiguous speech that embeds ideology into the language so that every word perpetuates correcthink - officially approved thought. In Orwell's dystopian world, Newspeak serves the ideological goals of Ingsoc - an abbreviation for English Socialism. It gradually replaces Oldspeak and becomes pivotal in defining politics and culture.

Genderspeak has the same ideological goal. If you embed gender ideology into words, then you control how people think and how culture develops.

The process goes something like this:

  • Embed new ideologically-driven language when possible. For example, substitute the term "gendered violence" for the more research-driven term "domestic violence."
  • Eliminate "wrong" words. In Nineteen-Eighty-Four, salvageable literature was rewritten in Newspeak so that authors either disappeared or were reinterpreted to serve Ingsoc. Today, school texts are commonly reviewed to eliminate wrong words. 'Improper' ones like "Founding Fathers" are changed to proper ones like "Framers."
  • Change the meaning of words. In Nineteen-Eighty-Four, the word "free" is used only in the simple form of 'my sweater is free of lint.' The concept of freedom does not exist. The current usage of "diversity" in Genderspeak is similar. It is a diversity that tolerates no deviation. Its conclusions are or can be mandated by law.
  • Introduce doublethink. Doublethink is when someone accepts two contradictory ideas as being true. A modern example is students who attend "sensitivity training," which includes publicly ridiculing and humiliating whites and males because of their race and sex. This is sensitivity?
  • Last of all, decry anyone who objects as a hater and oppressor; punish them.

Precise wording provides the incredible benefit of letting people know what they are talking about. It is time to reclaim the richness of precise English...verb by verb, adjective by adjective. Words should not be propaganda that blocks thought; disagreement is no crime. And sex is reality, while gender is not. The concept and the word "gender" should be abandoned by people who respect either accuracy or truth.

Tyler Durden Tue, 07/28/2026 - 19:15

SK Hynix Stock Dumps On Actual Earnings Miss; Pumps On Promise Of "Explosive" Demand

Zero Hedge -

SK Hynix Stock Dumps On Actual Earnings Miss; Pumps On Promise Of "Explosive" Demand

Update: The post-earnings conference call Q&A has prompted a rapid reversal in SK Hynix's fortunes... shocker!!

SK Hynix claims it continues to see “explosive” demand from customers and remains confident that AI-related demand will stay strong over the medium to long term.

While the timing of individual AI infrastructure projects may vary, the company says it sees no change in the overall demand trajectory.

Can't have the entire edifice of the Korean economy collapsing, can we!!

*  *  *

Things are not going to be fun in South Korea tonight...

Good news first...

SK Hynix's net income surged a bigger-than-expected 1,242% (though admittedly on one-time investment gains) with the ginat chipmaker bragging that it won multiyear contracts with around 10 customers.

Ok, now the bad news...

SK Hynix’s quarterly profit rose a smaller-than expected 557%.

The key supplier of Nvidia reported operating profit of 60.5 trillion won ($42 billion) in the June quarter, well below analysts’ average projection for 64.2 trillion won.

Revenue came to 79.3 trillion won, significantly below the consensus 83.9 trillion won.

All further raising fears that the hyperbolic nature of the AI-driven boom that has suspended reality from the cyclical chipmakers, may be starting to decelerate...

“When you’re the dominant supplier of the high-bandwidth memory that powers Nvidia’s chips, the AI boom lands directly on your bottom line,” said Josh Gilbert, Etoro’s lead analyst for APAC and the Middle East.

“That means the market is unlikely to focus on the headline numbers alone. The bigger question is whether margins and guidance can justify its recent performance.”

Add to that the recent fears of rising competition from China and it is no surprise that SKHY (the US ADRs) is trading down 16% in the after-hours (before Korean trading has begun)...

Following yesterday's major drop in Kospi, we have three simple words..

...and as goes SK Hynix, so goes the global AI demand narrative...

Tyler Durden Tue, 07/28/2026 - 19:10

The Socialist Monster Awakens

Zero Hedge -

The Socialist Monster Awakens

Authored by Victor Davis Hanson via American Greatness,

Who Caused Unaffordability?

Fear about “affordability” supposedly fueled the new, strident socialism.

Yet annual inflation during Biden’s four years averaged almost 5 percent. It peaked at over 9 percent, while prices for some key staples rose by 30 percent over his tenure—all to silence from the Left. (By contrast, annual inflation during Trump’s first term averaged 1.9 percent. In his second term, it averaged 2.6 percent in 2025—and may rise to 4.5 percent in 2026, given the war with Iran.)

The socialists were not just quiet during Biden’s four years; they were themselves responsible for the rampant Biden inflation. They had implemented an inflationary de facto third Obama term, ramming through the most radical and costly agenda in decades under the veneer of that cognitively challenged waxen effigy, good ol’ Joe Biden from Scranton.

So the current Jacobin takeover of the Democratic Party was not sparked by concerns about “affordability”—or at least not if by “affordability” we mean the middle-class struggle to buy a house, a car, or groceries.

Instead, the socialist moment was merely the logical culmination of years of boutique radicalism within the Democratic aristocracy—the ossified leadership of Chuck Schumer, Nancy Pelosi, Elizabeth Warren, Kamala Harris, and Hakeem Jeffries, along with the aging Black Caucus, the incoherent Squad, the DEI crowd, the open-border zealots, and the radical greens.

The grandees of the party also normalized the crazy mobs of BLM and Antifa long ago.

Democrats as Dr. Frankenstein

Almost every weaponized scam and national hysteria in the last two decades was amplified and spread by mainstream Democrats: the farcical claim that the Wuhan-lab-hatched COVID virus came from pangolins or bats; the Duke Lacrosse and Covington Kids hoaxes; the Jussie Smollett scam, the “Hands up, don’t shoot” lie; the deification of George Floyd, often portrayed with wings and a halo; Fauxcahontas Liz Warren, touted as the first Native American Harvard law professor (thanks to her grandfather’s high cheekbones); the radical diminution of in-person voting; the canonization of Trayvon Martin and Karmelo Anthony as blameless model children; and the mythology of a 1619 national founding.

Who allowed not just one, two, three, or four million border-jumpers into the country, but over ten million—illegal, unvetted, viewed as an assumed new political constituency, and instantaneously dependent on the welfare state?

Who gave us three, four, five, or even more genders and biological males showering with teenage girls or female prisoners? Who sloganeered about “defund the police” and “no cash bail”?

All this was about as radical as it gets.

The Democratic establishment’s unhinged hatred of Donald Trump mainstreamed radicalism even further and helped birth the socialist-cum-communist Frankensteinian monster that is now devouring its mad-scientist creators.

“By any means necessary” was a Democratic mantra over a decade ago. By 2016, the Democratic leadership and the Clinton campaign were hatching the Steele-dossier farce to warp an election.

In 2020, the Democratic deep state—Antony Blinken, Mike Morell, John Brennan, James Clapper, Leon Panetta, and others—had fabricated the farcical claim that the Hunter Biden laptop was Russian disinformation, a hoax that, this time around, likely did alter an election.

The Democratic establishment, working with its appendages in Silicon Valley, had censored news attesting to the authenticity of Hunter’s embarrassing laptop contents. (For an account of what the establishment was doing in 2020, read Molly Ball’s Time essay describing the “conspiracies” and “cabals” that worked behind the scenes to change voting rules and ensure a Biden victory through mail-in, no-ID balloting.)

Then came four unhinged years of lawfare: special counsel Jack Smith’s seizure of the communications of senators and congressmen, the Mar-a-Lago raid on Trump’s home, the effort to de-ballot Trump, and the five civil and criminal circuses that resulted in half a billion dollars in fines.

All those perversions of the legal system were accompanied by a host of mainstream Democrats, retired generals, politicos, and athletes shouting that Trump was a Nazi, a fascist, a Mussolini, a traitor, or a Putin asset. Meanwhile, a host of loudmouth actors, Democratic activists, and celebrities competed with each other about how best to kill him—whether by shooting, stabbing, poisoning, beheading, burning him alive, or blowing him up.

Trump supporters were libeled over the years by establishment Democrats as irredeemables, deplorables, chumps, dregs, and garbage.

Even an establishment figure like Rosa Brooks, a former Obama-appointed Pentagon lawyer, called for a military coup in Foreign Policy just 10 days after Trump first took office in 2017.

Three would-be assassins got close enough to killing Trump to draw return fire from the Secret Service—near-death encounters that elicited both unapologetic applause for the attempts and lamentations that the shooters had failed from the now truly deranged social-media Left. Murderers themselves were normalized as leftist icons, as seen in the canonization of Luigi Mangione and the glee that followed in many Democratic social media circles after the murder of Charlie Kirk.

Yet did the establishment Democratic apparat calm these waters? Or did it set them boiling?

It was Chuck Schumer who threatened conservative Supreme Court justices, screaming in front of a mob outside the court’s doors, “I want to tell you, Gorsuch, I want to tell you, Kavanaugh, you have released the whirlwind, and you will pay the price. You won’t know what hit you if you go forward with these awful decisions.” Schumer sounded more like a pink-haired anti-ICE street protester than a U.S. senator.

No surprise, then, that two years later a left-wing would-be assassin turned up at Kavanaugh’s home, along with crowds of enthusiastic protestors.

Does anyone recall Maxine Waters urging the public to bird-dog Trump administration officials and harass them whenever they were seen in public?

“If you see anybody from that Cabinet in a restaurant, in a department store, at a gasoline station, you get out, and you create a crowd, and you push back on them, and you tell them they’re not welcome anymore, anywhere.”

Does anyone also remember Nancy Pelosi, then-Democratic House Minority leader, greenlighting “uprisings” over ICE deportations?

“I just don’t know why there aren’t uprisings all over the country. Maybe there will be.” So spoke the radical owner of two mansions, who entered Congress with little net worth and will leave it worth over $100 million. A Tip O’Neill she wasn’t.

Then there was soon-to-be Vice President Kamala Harris egging on the George Floyd demonstrations, which, weeks earlier, had already turned violent and indeed deadly (despite what the “fact-checkers” asserted):

This is a movement, I’m telling you. They’re not going to stop. And everyone beware, because they’re not going to stop. They’re not going to stop before Election Day in November, and they’re not going to stop after Election Day. And that should be—everyone should take note of that, on both levels, that they’re not going to let up, and they should not, and we should not.

After four months of rioting in 2020—which left 25 people dead and 1,500 law enforcement officers injured, inflicted $2 billion in damage, and saw a police precinct, a federal courthouse, and an iconic church set ablaze—who gave the perpetrators a pass, with 14,000 arrests followed by few convictions and fewer jailings?

What happened during the violence against ICE in 2025–26? Did the Democratic apparat at least pretend to deplore the violence, or did it instead egg it on?

And who, as sore losers in 2016 and 2024, normalized the idea of dismantling the constitutional order—first by calling for the abolition of the Electoral College and later by planning to pack the court, end the filibuster, and admit two new left-wing states?

The Frankenstein Monster Awakens

So the socialists and communists did not really hijack the party. Rather, these youthful radicals were spawned and nurtured by aged Democrats. They became irate over their impotence and loss of influence—and simply upgraded the methods and message of their elders.

The upper-middle-class Mamdanis, Pikers, and AOCs did not storm the party parapets but were invited in by a party that had already radicalized itself—amid its hatred of Donald Trump, its growing estrangement from the majority of the American people, and its fury at becoming increasingly powerless without the White House, Congress, or the Supreme Court.

Socialists did not lower the bar for extremism; establishment Democrats had already destroyed that standard altogether.

Given all that, the Democratic Socialists of America scarcely had to be invented.

After a decade of establishment Democrats destroying norms and traditions, deliberately dividing us by race, seeking to eliminate life-giving fossil fuels, and trying to implement dangerous crackpot ideas like critical race theory, critical legal theory, no cash bail, and defunding the police, the only change is that the now-electrified socialist monsters have awakened. They have mocked their stagnant creators, reenergized the old messages, and simply sought to replace the messengers.

Gone or going soon were the old white people like Pelosi and Schumer—despite their pathetic efforts to appease the Jacobins. In their place arose a cohort of upper-middle-class, degreed but otherwise poorly educated white urbanites, furious that their empty university certificates, student debt, inflated sense of self, and precious titles and jobs—but low salaries—had not delivered the affluent lifestyles enjoyed by lawyers, doctors, stockbrokers, and other professionals in their urban circles who had real jobs.

The downwardly mobile whites who formed 85 percent of the official ranks of the Democratic Socialists of America were joined by first- and second-generation immigrants, many from failed socialist states.

These were ingrates who, once safe and prospering in America, learned that boutique radicalism and identity chauvinism won cultural acceptance and conferred DEI leverage in their blue-state urban circles—and so sought to dismantle the very host nation that had saved them.

For both groups, anger was fed by envy of others with more stuff and by furor at a Middle America that plowed ahead, ignoring both their supposed talents and their hyped plight. And the Democratic Party provided the radical model—which, in their youthful ignorance, the new socialists pledged to enhance and exceed.

No longer, they thought, would hardcore leftists have to hide their agendas for fear of losing elections. In their folly, they attributed Harris’s 2024 implosion not to her clumsy efforts to disown and disguise her radical past (including the most left-wing voting record in the Senate), but to her not being left-wing enough.

In other words, a milquetoast socialist had lost in 2024 not because she was too radical for America, but because she was not socialist—or indeed, communist—enough.

The crazed new socialists bragged that they could win by loudly and brazenly broadcasting the old agendas: open borders, mass amnesties, defunding the police, ending fossil fuels, attacking—and now seeking to destroy—the Senate and Supreme Court, and scapegoating whites and white “privilege.” To this old mainstream Democratic farrago, they added one new element: openly embracing anti-Zionism and indeed antisemitism.

America will soon see how this insanity works out.

Tyler Durden Tue, 07/28/2026 - 16:20

Tate Brothers To Remain In Jail In Miami As They Fight Extradition To UK

Zero Hedge -

Tate Brothers To Remain In Jail In Miami As They Fight Extradition To UK

Authored by Tom Ozimek via The Epoch Times,

A federal judge in Florida said Monday that social media influencers Andrew and Tristan Tate will remain in a Miami jail for at least two more weeks as they fight extradition to the United Kingdom, where the brothers are accused of rape and sex trafficking.

On July 27, U.S. Magistrate Judge Lauren Louis set a detention hearing for Aug. 13 to determine whether the Tates should be released during an extradition process that could last for months—or remain behind bars.

The brothers, who have been in custody since making a brief court appearance two days after their July 18 arrest, were not required to appear on Monday and were not present when the judge continued their detention.

Joseph McBride, an attorney for the brothers, has said they will fight extradition and that they maintain their innocence. He described the attempt to extradite the brothers as politically motivated.

McBride told reporters after their initial court appearance on July 20 that the brothers did not do anything wrong.

“They shouldn’t be extradited for crimes they did not commit,” he said.

McBride said Monday that he wants the U.S. government to provide the materials British authorities submitted to secure their arrests.

“They don’t have anything but the accusations,” McBride said after the hearing. “It’s just their word against our word right now.”

Assistant U.S. Attorney Alejandra Lopez said the UK has until mid-September to submit its supporting materials to the State Department.

‘Why Am I Here?’

In remarks to the New York Post on Monday, McBride said he meets with Andrew Tate as many as six times a week and jots down the influencer’s thoughts so they can later be posted on social media.

McBride described the arrangement, which allows Tate to continue reaching his millions of online followers from jail, as the “Pony Express.”

“There’s a way to be like, ‘What would you like said to the world?’” McBride said. “It’s not very hard.”

In one July 27 post, Tate complained about being held in a special housing unit, an isolated section of the jail typically used either to protect inmates or punish misconduct.

“This is punitive housing for people who murder their cellmates,” Tate wrote. “No commissary, no phone calls, no yard time.”

Describing himself as an “innocent until proven guilty extradition detainee,” Tate noted that he is a U.S. citizen wanted by a foreign government and questioned the reason for his detention.

“Why am I here?” he wrote.

In another post, Tate called the case “politically motivated” and described it as punishment for “empowering men” and giving them “the spirit to say enough is enough.”

He also thanked supporters who gathered outside the jail with signs, telling them that although the messages were difficult to read from his cell, he could “feel every word.”

British Charges

British prosecutors have said Andrew Tate, 39, faces more than two dozen counts, including rape, assault, and arranging or facilitating trafficking for sexual exploitation. The allegations also include offenses involving indecent images of a child and “extreme pornography.”

Tristan Tate, 38, faces additional charges that include two counts of rape, three counts of sex trafficking, and one count of sexual assault.

The alleged offenses occurred between 2010 and 2017. Prosecutors said the latest charges involve four additional accusers and were filed after authorities received evidence from police in Bedfordshire, southeastern England.

The brothers were already charged in Britain with rape, bodily harm, human trafficking, and controlling prostitution for gain in connection with three other accusers and alleged conduct between 2012 and 2015.

The UK’s Crown Prosecution Service has requested their extradition while emphasizing that the defendants retain the right to a fair trial.

Andrew and Tristan Tate, who hold dual U.S. and British citizenship, have millions of followers online. Their content focuses heavily on masculinity, wealth, and relationships, while their critics have accused them of promoting misogyny.

The Tates moved to Romania in 2016 and were arrested there in 2022 on allegations that they participated in schemes to lure women for sexual exploitation. They denied wrongdoing, and the case has stalled amid legal and procedural problems, although it has not been closed.

Romanian authorities lifted the brothers’ travel restrictions in February 2025, allowing them to fly to Florida on a private jet.

Defense attorney Jackie Perczek said their conduct since then shows they are not a flight risk, noting that they continued traveling back to Romania while the criminal proceedings there remained unresolved.

“For three years they have not fled,” Perczek said. “They’ve traveled the world, and every month they return to Romania.”

Tyler Durden Tue, 07/28/2026 - 15:40

DOE’s Prometheus Bets $60 Million That AI Can Help Nuclear Get Out Of Its Own Way

Zero Hedge -

DOE’s Prometheus Bets $60 Million That AI Can Help Nuclear Get Out Of Its Own Way

The Department of Energy is putting $60 million behind an effort to use AI to accelerate nearly every stage of nuclear deployment, from reactor design and licensing to manufacturing, construction, fuel fabrication, and operations.

The three-year initiative, named Project Prometheus, is the first major Phase II project selected under DOE’s Genesis Mission. Led by Idaho National Laboratory, it brings together four national laboratories, universities, major tech companies, and more than 20 nuclear industry partners.

Participants include NVIDIA, Microsoft, Amazon Web Services, Oklo, TerraPower, X-energy, GE Vernova, Westinghouse, Aalo Atomics, Antares, Valar Atomics, and Deployable Energy.

The goal is to create a secure digital thread connecting engineering models, regulatory requirements, manufacturing specifications, construction records, and operating data. DOE wants AI tools to help prepare traceable licensing documents, organize decades of legacy nuclear records, accelerate safety analyses, improve manufacturing workflows, and support reactor monitoring while keeping humans responsible for final decisions.

Prometheus is targeting a 50% reduction in reactor deployment timelines and long-term operating costs. The project has also attracted more than $200 million in industry cost sharing and another $30 million in private capital and technical contributions.

Most attention has focused on using nuclear reactors to power AI, such as NANO Nuclear’s agreement with Supermicro and Riot Platforms’ proposed collaboration with Terrestrial Energy.

Oklo, NVIDIA, and Los Alamos National Laboratory are also working together on AI-enabled nuclear fuel research, plutonium-bearing fuels, and grid studies for nuclear-powered AI facilities. That agreement directly supports the broader Genesis Mission.

We’ve covered the increasingly ridiculous AI financing “circle jerk”, where tech companies invest in AI developers that then turn around and commit to buying chips, cloud capacity, or data center services from those same backers. Amazon, for example, plans to invest billions in Anthropic while Anthropic commits to spending more than $100 billion on Amazon Web Services infrastructure.

It is an impressive growth engine, provided nobody asks where the money is actually coming from…

None of that kills the nuclear case, though. The resurgence of demand for nuclear energy was originally pushed by green energy goals and was further elevated by the increasing demands for national energy security. With neither of these demand signals waning as the AI bubble stands ready to pop at any moment, nuclear will likely continue to see support from governments across the globe in the years ahead.
 

Tyler Durden Tue, 07/28/2026 - 15:20

Bombshell Report Exposes Lefty NGOs Funding A Children's Charity Tied To Terror Network

Zero Hedge -

Bombshell Report Exposes Lefty NGOs Funding A Children's Charity Tied To Terror Network

After years of pro-Hamas protests and riots, including efforts by radical-left revolutionaries to blockade highways, bridges, and other economic chokepoints, as well as unrest across Ivy League campuses, investigators are finally examining the financial infrastructure behind the Marxist movement that increasingly appears less about Palestine and more about toppling the US empire.

At the center of the investigation is a left-wing nonprofit that may have served as a bridge, connecting major progressive foundations and revolutionary-left activist networks to organizations linked to foreign terrorist groups.

This revelation appeared in a bombshell new report by the Network Contagion Research Institute (NCRI) and was first reported publicly by the New York Post.

NCRI claims that millions of dollars raised by the Middle East Children's Alliance (MECA) flowed through opaque funding channels to organizations with documented ties to the Popular Front for the Liberation of Palestine (PFLP).

Notably, the PFLP is a Marxist-Leninist Palestinian militant and political organization founded in 1967 by George Habash. The U.S. has designated it a Foreign Terrorist Organization since 1997 and a Specially Designated Global Terrorist since 2001.

Last summer, a rioter was seen wearing Hamas and PFLP paraphernalia as he stood in front of a burning Waymo in Los Angeles, California.

The US Treasury sanctioned Samidoun in 2024, designating it a Specially Designated Global Terrorist for allegedly serving as an international fundraiser and front organization for the PFLP. 

So why is Zohran Mamdani's intern, France Hamed... 

NCRI identifies MECA as the possible connective node linking revolutionary-left activist groups with major progressive donors. The Berkeley-based children's charity has become one of the most frequently promoted fundraising vehicles across the nonprofit left.

"The Middle East Children's Alliance (MECA) is a Berkeley, California–based 501(c)(3) nonprofit. Since the October 7, 2023 attacks, it has emerged as a critical U.S. charitable fundraising vehicle promoted across the pro-Palestinian activist ecosystem, including organizations within the Neville Roy Singham network, Students for Justice in Palestine (SJP), the Palestinian Youth Movement (PYM), and a range of progressive philanthropic institutions. As MECA's public profile and fundraising accelerated, so too did questions regarding the destinations of its foreign grantmaking," NCRI wrote in the report.

MECA reported about $35 million in foreign grants between fiscal 2017 and 2025. NCRI traced $13.5 million in institutional donations, with roughly 67% routed through donor-advised funds and giving platforms that conceal the original donors. The ten largest funding sources accounted for 70% of traced contributions.

"Between FY2017 and FY2025, MECA's tax filings report approximately $35 million in foreign grant disbursements. This report identifies a persistent pattern of funding organizations with documented ties to the Popular Front for the Liberation of Palestine (PFLP), which the United States designated a Foreign Terrorist Organization (FTO) in 1997. It further documents personnel overlap between MECA and organizations affiliated with the PFLP, as well as longstanding organizational and coalition relationships suggesting these connections are structural rather than incidental. The structure may partially shield the extent of collaboration with the PFLP from activist networks in the United States who both raise money for MECA and ideologically support the PFLP," NCRI said.

Foreign disbursements surged to $10.7 million in fiscal 2024, about 4.5 times the previous year. Meanwhile, more than 70% of foreign-grant entries were labeled only as "community projects," preventing outsiders from identifying the recipients or specific purposes. NCRI said the decline in disclosure began in 2020, years before the Gaza war.

The report identified six longtime MECA partners assessed as having PFLP affiliations. Those organizations gradually disappeared from MECA's public grant descriptions as scrutiny of their alleged ties intensified. Named funders included Open Society Foundations, the Rockefeller Brothers Fund, Tides-linked entities and organizations associated with Neville Roy Singham.

Path of funding from anonymous donors to MECA.

NCRI: A conceptual model of paths from entities and individuals soliciting funds for MECA to groups affiliated with the PFLP and on to militant and terrorist groups such as Fatah and PFLP.

"The convergence of these findings raises concerns about whether donors in the United States may be unknowingly donating to a group that ultimately benefits a foreign terrorist organization," NCRI stated.

MECA's operations overlap with the PFLP through personnel and civil society groups, according to NCRI. 

The strongest link is the "red-green alliance" between communist and Islamist activist networks.

The ShutItDown4Palestine campaign brought together organizations linked to China-based Marxist Neville Roy Singham with Students for Justice in Palestine, the campus network associated with American Muslims for Palestine.

NCRI's bombshell findings come nearly two weeks after Secretary of State Marco Rubio, White House Deputy Chief of Staff Stephen Miller, and Treasury Secretary Scott Bessent declared war on the radical left while standing in front of delegations from 65 nations.

The State Department later released a report detailing far-left subversion networks routed through Cuba that have been sowing chaos in America.

The American people are getting a clear picture of what only appears to explain why segments of America's left have become increasingly revolutionary, embracing anti-American rhetoric and an explicitly anti-capitalist agenda, as well as seeking the destruction of America's current form.

Read the report here. 

Tyler Durden Tue, 07/28/2026 - 14:40

FERC Will Impose Reforms If PJM Fails To Adopt Changes By September, Chairman Warns

Zero Hedge -

FERC Will Impose Reforms If PJM Fails To Adopt Changes By September, Chairman Warns

By Ethan Howland of UtilityDive

The PJM Interconnection has until the end of September to agree to governance and stakeholder reforms or the Federal Energy Regulatory Commission will impose them, the agency’s chairman, Laura Swett, said Thursday.

“PJM is facing a grave legitimacy crisis,” Swett said at a technical conference FERC held on the grid operator’s governance issues. “Some transmission owners are openly discussing leaving the RTO altogether. Put plainly, market participants have lost confidence in PJM’s decision-making abilities.”

With PJM failing to attract significant new generation in its last two capacity auctions, the grid operator is ready for major changes in the way it operates, according to its new President and CEO David Mills, who officially took over the role in May after several months as interim leader.

“We are fully committed to rise to the challenge,” including capacity market reform, Mills said.

Potential reforms discussed at the meeting include increased board independence, a formal role for states at PJM, and giving states the right to file proposals at FERC — called “filing rights” — while also expanding PJM’s filing rights.

After taking post-conference comments, FERC intends to hold a dispute resolution forum in September with PJM stakeholders to develop a governance reform package, according to Swett. If an agreement isn’t reached by the end of that month, FERC will impose its own reforms on PJM, she said.

Capacity market exposes governance weaknesses

The technical conference comes about two years after capacity prices spiked in PJM as rising demand from data centers outpaced any increase in power supplies on PJM’s system, which spans 13 Mid-Atlantic and Midwest states and the District of Columbia. That price spike led to rate increases of 20% or more for some utilities and sparked intense interest from governors and policymakers.

PJM’s struggles in responding to the rapid shift in its supply-demand balance intensified governance problems that had been festering for years, Jodi Moskowitz, PSEG’s vice president regulatory — law, deputy general counsel and RTO strategy officer, said at the meeting.

Two problems highlighted at the meeting were the ability of PJM members to effectively fire the grid operator’s board members as well as its stakeholder process, which can be long and end without concrete results.

PJM uses a sector-weighted voting system in its stakeholder process, with a two-thirds majority of a sector-weighted vote required for a measure to pass. Under the system, members are divided into five categories — electric distributor, end-use customer, generation owner, other supplier and transmission owner.

One effect of the voting system is that two sectors can join up to block a measure they don’t like, which has happened repeatedly, especially on contentious issues, the RTO Governance Research Network said in comments filed at FERC.

During the meeting, representatives for American Electric Power and others said stakeholders should have an advisory role, like the one used by the Midcontinent Independent System Operator. Under that process, PJM’s board would get input from stakeholders, but final decisions would rest with the board.

Currently PJM members run the grid operator’s stakeholder process, which can lead to priorities getting offtrack, according to Asim Haque, PJM executive vice president, governmental and member services.

PJM’s failure to use authorities that it has and its failure to engage with states reflects the organization’s culture, according to FERC Commissioner David LaCerte.

“This is a cultural quagmire that they’ve developed by eroding the board in the past and creating this fear of [board members] being terminated to where they’re not using their authorities,” LaCerte said “They’re not engaging with the states because they don’t want to get out of line with what the stakeholders want.”

The solution appears to be making the stakeholder process advisory, LaCerte said.

“I don’t think we can do business as usual,” Haque said.

Tyler Durden Tue, 07/28/2026 - 14:20

DOJ Sues Colorado For Offering In-State Tuition Aid To Illegal Immigrants

Zero Hedge -

DOJ Sues Colorado For Offering In-State Tuition Aid To Illegal Immigrants

Authored by Naveen Athrappully via The Epoch Times,

The Department of Justice (DOJ) sued Colorado on Thursday over state regulations that provide in-state tuition and financial aid to illegal immigrants.

Illegal immigrants from Nicaragua, Ecuador and other nationalities at a door on the border wall waiting to be picked up by the U.S. Border Patrol in El Paso, Texas, on Jan. 4, 2023. Paul Ratje/Reuters

The July 23 lawsuit, filed with the District Court for the District of Colorado, accused Colorado of ignoring Title 8 of the U.S. Code Section 1623, which bans illegal immigrants from being eligible for post-secondary education benefits in a state unless the same benefits are provided to all U.S. citizens, irrespective of their state of residence.

Colorado's Advancing Students for a Stronger Tomorrow Act, initially passed in 2013 and amended in 2019 and 2022, allows illegal immigrant students living in the state to access in-state tuition and financial aid.

In-state tuition benefits are granted to eligible students when applying to Colorado public universities or community colleges, whereas out-of-state U.S. citizens are required to pay higher tuition rates at these institutions.

"These statutes constitute blatant unequal treatment favoring illegal aliens over U.S. citizens. Worse, such preferential treatment is squarely prohibited and preempted by Congress," the lawsuit said.

According to a fact sheet from the Colorado Department of Higher Education, the Act removed several barriers that had prevented thousands of illegal immigrant high school students from qualifying for in-state tuition and financial benefits.

The 2022 revision of the Act reduced the time an illegal immigrant student needed to attend high school to obtain these benefits from at least three years to just one year.

Under the Supremacy Clause of the U.S. Constitution, extending eligibility for post-secondary education benefits to illegal immigrants is "unconstitutional," the lawsuit said. Several courts have struck down similar in-state tuition laws as unconstitutional.

For instance, earlier this month, the Fifth U.S. Circuit Court of Appeals ruled in a case filed by the Trump administration that Texas cannot offer in-state college tuition to illegal immigrants under its Dream Act, ruling that federal law overrides state policy.

In the Colorado lawsuit, the DOJ asked the court to enter a judgment declaring that the state's Advancing Students for a Stronger Tomorrow Act violates the U.S. Constitution's Supremacy Clause. It asked the court to issue a permanent injunction prohibiting the defendants from enforcing the Act or any similar statute.

Defendants in the lawsuit include the Colorado Commission on Higher Education, the Colorado Department of Higher Education, and its executive director.

In a July 23 statement, the DOJ said that the lawsuit against Colorado was the 14th case filed by the department challenging in-state tuition policies for illegal immigrants.

"By granting illegal aliens in-state tuition, Colorado is violating federal law and subsidizing education for illegal aliens at the taxpayers' expense," Associate Attorney General Stanley E. Woodward, Jr. said in the statement.

"This Department will not cease until President [Donald] Trump's promise is fulfilled: illegal aliens will not receive benefits denied to our Nation's own citizens."

The Epoch Times reached out to the Colorado governor and the Colorado Department of Higher Education for comments, but did not receive a response by publication time.

In addition to Texas, the Trump administration has succeeded in getting permanent injunctions against in-state tuition benefits for illegal immigrants in Kentucky, Nebraska, and Oklahoma.

Cases filed against California, Virginia, Massachusetts, Maryland, Rhode Island, New Jersey, Kansas, and Minnesota are pending.

Meanwhile, the DOJ announced in a July 24 statement that the District Court for the Southern District of Illinois ruled in favor of the federal government in a lawsuit against Illinois's in-state tuition benefits for illegal immigrants.

The case was filed in September 2025, with the state subsequently filing a motion to dismiss the lawsuit. The DOJ said that Illinois chose to give preferential treatment to illegal immigrants while not extending that treatment to Americans outside Illinois.

"This ruling enforces the statute Congress wrote and stops the State from putting illegal aliens ahead of American citizens," U.S. Attorney Steven D. Weinhoeft said in the statement.

In a July 23 fact sheet update, the National Immigration Law Center stated that adoption of "tuition equity" laws and policies across various states suggests that such actions help both U.S. citizens and immigrants of all statuses by reducing high school dropout rates and increasing the number of students pursuing college degrees.

Tyler Durden Tue, 07/28/2026 - 13:40

Nvidia's Taipei Office Raided As Taiwan's AI Chip-Smuggling Dragnet Results In Arrests

Zero Hedge -

Nvidia's Taipei Office Raided As Taiwan's AI Chip-Smuggling Dragnet Results In Arrests

Taiwanese prosecutors have detained an Nvidia employee and searched the chipmaker's Taipei office, the first time the island's criminal investigation into the diversion of restricted AI hardware to China has reached inside the company whose processors sit at the center of it.

The Keelung District Prosecutors Office said Tuesday it had detained a man surnamed Chang on suspicion of falsifying business documents under the Criminal Code, after investigators searched his home and his workplace on July 24. Prosecutors said Chang is "strongly suspected of having committed the offences, and that there is a risk of flight, destruction of evidence, and collusion with accomplices or witnesses." A court granted the detention request.

The statement did not name Nvidia. Bloomberg first reported that Chang works for the company and that the search covered his desk at Nvidia's Taipei office, and Bloomberg's sources said the detention also involves an allegation of breach of trust. Prosecutors have not accused Nvidia of any wrongdoing.

Seven people are now being held in the case, including two from Super Micro Computer and one from Taiwan-listed Albatron Technology. Chang is the first known Nvidia employee to face detention in a chip diversion case anywhere.

The investigation opened in May, when Taiwanese officials said they were examining the shipment of high-end AI servers built by Super Micro and containing restricted Nvidia chips to China, Hong Kong and Macau in violation of US export controls. Those held are accused of forging documents to move roughly 50 Super Micro servers. Some cleared Taiwanese customs and were routed to China through Japan, an official previously told AFP.

Taiwanese media have described Chang as a senior business-development manager and reported that prosecutors are examining end-user and know-your-customer documentation he is alleged to have signed off on - the paperwork layer that export compliance depends on. Prosecutors have released no further detail on his role or the evidence.

Nvidia, whose chips power most of the world's advanced AI systems, said it sells primarily to established partners and original equipment manufacturers that help ensure compliance with US export rules. "Smuggling is a nonstarter," a spokesperson said. "Even relatively small exporters and shipments are subject to thorough review and scrutiny on both sides of the globe, and any diverted products would have no service, support, or updates."

The American Case

Taiwan's investigation runs alongside a far larger US enforcement action. In March, the Justice Department unsealed charges against Super Micro co-founder and board member Yih-Shyan "Wally" Liaw, Taiwan sales manager Ruei-Tsang "Steven" Chang and contractor Ting-Wei "Willy" Sun, alleging a conspiracy to divert roughly $2.5 billion in Super Micro servers carrying restricted Nvidia GPUs - including H200 and B200 parts - to China between 2024 and 2025 without Commerce Department licenses.

Liaw's trial is set for November 2. He faces up to 20 years on the lead conspiracy count. Chang has been described in earlier reporting as a fugitive. Super Micro was not charged, has said it is cooperating, and placed the implicated employees on leave. Taiwanese prosecutors have said it is too early to tell whether their case connects to the American one.

The Gap Prosecutors Are Working Around

Taiwan manufactures the world's most advanced semiconductors and assembles them into the servers at issue. It has no statute that directly criminalizes exporting AI chips to China.

That is why the charges in Keelung are forgery and false business records rather than anything touching the diversion itself. A proposed amendment to Taiwan's Foreign Trade Act, adding what has been described as a mainland China semiconductor clause, would let prosecutors charge the export directly. It has not passed. The Ministry of Economic Affairs has confirmed consultations with Washington on adopting performance-threshold controls modeled on the US framework, without committing to a timeline.

Seven weeks into the case, prosecutors are still building it out of the general Criminal Code.

Washington has restricted sales of Nvidia's most capable accelerators to China since 2022, on the argument that hardware that trains commercial models also trains military and surveillance ones. Blackwell-class parts remain under a presumption of denial, meaning license applications are effectively refused. The H200 was moved to case-by-case review in January.

Chinese demand has not moved with the policy. Older-generation parts command steep premiums on the gray market, and diversion reports have circulated for years. The servers in the Taiwan case are worth a fraction of the American one, which is roughly the point: the hardware is scarce enough that even small volumes are worth forging paperwork over.

Tyler Durden Tue, 07/28/2026 - 13:20

FIRY Wins $719 Million Game Of Solitaire, Torching Shorts Along The Way

Zero Hedge -

FIRY Wins $719 Million Game Of Solitaire, Torching Shorts Along The Way

Markets rarely hand you a clean morality play. On Monday night, a federal judge entered one, clocking in no less than 78 pages, in the public docket. And for anyone who has played one of America's chart-topping “skill gaming” apps - a group that certainly includes many readers of this site - this may be for you.

A federal trial has now established that at Papaya Gaming, the private Tel Aviv-based publisher of Solitaire Cash and Bingo Cash, the “humans” across the table were actually quite often programmed bots.

The winner in all of this is Firy, Inc. (of the eponymous FIRY ticker), the operator that played the SPAC game to a $3.5 billion valuation in 2020, roundtripping 96% to a $130 million market cap with an estimated 20% of its float sold short.

Needless to say, at a market cap of a paltry $130 million, the market had written the whole thing off, pricing FIRY below the $185 million of cash on its latest, March 31st balance sheet, never mind the platform or anything else left on either side of the ledger.

But all that changes now. FIRY led the lawsuit against Papaya and is the beneficiary of a $719 million award handed down overnight, well over 5 times its market cap. This is the judge’s ruling after a $420 million jury award and Papaya’s failed attempts to get the case tossed out.

What Papaya did, in the court's own words (from Monday’s Opinion)

  • “In January 2021, for example, Papaya used bots in about 90% of its cash tournaments” (Op. at 8.)
  • From 2021 to 2024, “bots accounted for over 13 million of the participants on Papaya's platform, compared to about 11 million human players.” (Op. at 7.)
  • "Papaya only paid customers roughly $2 billion of the $6.7 billion that it advertised had been awarded in prizes.” (Op. at 8.)
  • "When a bot ‘won’ one of these tournaments, Papaya kept all entry fees.” (Op. at 28.)

Liquidity bots, tailored bots, and losing before you played Papaya ran two kinds of fakes.

  • "Liquidity bots were used to create immediately accessible tournaments of various sizes, including up to 20 or more ‘players’.” “[A] 20-player tournament might have one human player and nineteen bots.” (Op. at 7.) Their job was to make a game exist instantly, at any hour of the night.
  • The second kind decided outcomes: “bots were used to give a player a designated win or loss. For instance, a player who had a losing streak could be given a ‘win’ to motivate them to keep playing in more tournaments.” (Id.) These “tailored bots” operated “in over 630 million Papaya tournaments, or in roughly one-quarter of the 2.6 billion tournaments that Papaya hosted during the years 2021 to 2024,” and “[m]ore than 6.1 million of those human beings played in at least one tournament where tailored bots were designed to give them a loss.” (Id.)

Think about that: millions of Americans paid to lose games that were over before they started.

The Fifth Amendment and the apology

Perhaps predictably, Papaya's executives pled the Fifth Amendment during the case and the court did not let them un-
ring that bell at the last minute.

  • “Papaya's executives invoked their Fifth Amendment right against self-incrimination at their depositions. About a year later, on the eve of trial, those same executives sought to withdraw their invocation of the Fifth Amendment privilege.” (Op. at 13.)

Later on, Papaya's own trial lawyers conceded to the jury: “Papaya has taken responsibility for its actions. It stopped
giving those customer complaint responses. It stopped using bots.” (Op. at 11 n.2.) Please clap. 

The $719 Million Blow

On April 23, a unanimous jury found Papaya liable for false advertising and awarded $420 million in damages - what the winning law firm King & Spalding calls the largest false-advertising award in U.S. history.

Yesterday's opinion granted a $719 million disgorgement of Papaya's profits - higher than the $420 million jury verdict - and did not mince words: “Papaya's fraudulent conduct was extraordinary.” (Op. at 37.) Papaya “entered the U.S. market through a massive deception” (Op. at 71) — a “willful, bad faith violation of the law.” (Op. at 76.)

FIRY ends up the big loser and the big winner

FIRY launched the first real-money skill-gaming platform back in 2012 (Op. at 4) and rode the SPAC wave public at a $3.5 billion valuation in December 2020. The court traced what happened next: “Skillz’s revenue had fallen by 60% in just two years, tumbling from $384 million in 2021 to $152 million, while Papaya's revenue skyrocketed from $163 million to $461 million over the same period.” (Op. at 10.) In June the company rebranded itself FIRY... because five years of a tortured stock price will do that to you.

Now What?

The cheater owes $719 million and the honest player collects. Good over evil, with interest.

The 20% of the float that was short into Monday's opinion bet on the wrong hand. On the April jury verdict alone, FIRY closed up 238% amid multiple volatility halts. And that was before the judge denied a new trial and raised the number above what the jury awarded ($420 million to $719 million).

To appeal, Papaya must produce an appeal bond on the order of $800 million in real money — no bots accepted. Will the private credit bubble extend to writing that paper for a private Israeli company whose only product a federal jury and a federal judge have both found was fraudulently marketed? Is there an AI angle here? Asking for a friend in Tel Aviv.

Next Up: Voodoo

Monday was not the first time this has happened. In 2024, FIRY took AviaGames - publisher of Pocket7Games - to a California jury and won $42.9 million for patent infringement, two years before its latest win against Papaya (“Skillz Wins $42.9M IP Trial Against Rival Accused Of Bot Fraud”).

Now in 2026, FIRY takes a win against Papaya.

Then there is the one more case not yet discussed: FIRY’s July 2024 lawsuit against Voodoo, the French owner of Blitz Win Cash, over what it alleges is the same bot playbook. While Voodoo fights these claims and nothing has been decided, one would imagine the Papaya verdict is being analyzed today in Paris.

Tyler Durden Tue, 07/28/2026 - 12:40

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