Zero Hedge

California Offering Taxpayer-Funded Gender Surgeries To Homeless, Illegal Immigrants: Report

California Offering Taxpayer-Funded Gender Surgeries To Homeless, Illegal Immigrants: Report

Authored by Luis Cornelio via Headline USA,

The California government may struggle to provide basic housing for the homeless, but it appears willing to fund gender-transition procedures with taxpayer dollars, including illegal aliens, according to a new report.

A Wednesday report from City Journal found that San Francisco homeless shelters, with the assistance of state and local governments, are facilitating transgender surgeries for males who identify as female.

One such shelter, St. Vincent de Paul’s MSC-South, entered into a $66 million contract with the city to house homeless individuals, including illegal aliens.

A pair of Honduran nationals living at the shelter, Lyca and Alondra, reportedly identify as transgender, and both said they receive Medi-Cal, California’s taxpayer-funded Medicaid program.

According to City Journal, the taxpayer-funded program covers transgender procedures, or “gender-affirming care,” and provides “full-scope” coverage to illegal aliens.

Lyca, who reportedly showed signs of a sex change, said he is receiving cross-sex hormone therapy.

Meanwhile, Alondra, who appeared more masculine in physique, said he entered the U.S. illegally after claiming asylum. A translator told City Journal that Alondra declined a housing offer due to affordability concerns, though the government offered to pay one month’s rent.

Another shelter, the Embarcadero SAFE Navigation Center, reportedly houses a transgender-identifying individual named Jacqueline.

Originally from Mexico, Jacqueline told City Journal that illegal aliens reside at the shelter and said he received breast implants through Medi-Cal.

Jacqueline claimed to be a permanent resident but acknowledged that the program also covers procedures for illegal aliens.

“Even though you’re undocumented, you can get them,” he stated, as quoted by City Journal. “You have to have a process, the hormones … go through therapy.”

Asked whether he had received so-called “bottom surgery,” Jacqueline replied, “I’m waiting for that one.”

Headline USA reached out to MSC-South for clarification, including whether such procedures are facilitated by the shelter, but a front-desk receptionist said no one was available to comment.

When pressed further, he added, “We’re busy right now, boss man.”

Attempts to contact the Embarcadero SAFE Navigation Center were unsuccessful, as its main line appeared disconnected. Five Keys Housing, the shelter’s parent company, was closed when Headline USA called.

A Newsom spokesperson stood by the state’s taxpayer-funded program, saying, “Undocumented Californians don’t get special treatment. Everyone on Medi-Cal gets the same access to care. If you want to call California woke for not letting politicians interfere with doctors – or not wanting people to die in the streets – then go ahead.”

The City Journal report comes as California Gov. Gavin Newsom’s administration faces mounting scrutiny over potential exploitation of taxpayer-funded programs, from hospice fraud to the expansion of taxpayer-funded gender procedures for illegal aliens.

Tyler Durden Thu, 04/16/2026 - 18:25

Gulf Shock May Spark Shortage Of World's Most Critical Industrial Chemical, Used Heavily In Mining 

Gulf Shock May Spark Shortage Of World's Most Critical Industrial Chemical, Used Heavily In Mining 

Goldman analysts Kyle Shaffer and Amanda Ross provided clients with a broad overview of industrials and natural resources amid energy disruptions in the Gulf area. In the note, they stated that the well-known Gulf energy shock is set to disrupt LNG production in Qatar for years to come. However, they also highlighted another emerging supply crunch that has received far less attention: sulfuric acid.

"Some long-lasting consequences have also started to emerge, including a 3-5 years production loss for LNG facility in Qatar, a 6-12 month re-starting time for some aluminum facilities in the Gulf, and shortage of sulfuric acid which can potentially impact future production for copper and lithium" Shaffer and Ross said.

About a third of the world’s sulfur comes from the Gulf region, where it is produced as part of oil and gas refining. Much of the sulfur is exported, primarily to fertilizer and industrial-processing hubs in Asia, North Africa, and, in Qatar’s case, some trading hubs across Asia and Europe.

Goldman analyst James McGeoch noted on Wednesday that Shandong sulfuric acid prices are soaring and that China is "slated to suspend sulfur exports from May (sulfur that is a by-product of processing)." He added that part of the recent push to procure and process concentrate is to produce sulfur for fertilizer.

It is important to note that sulfuric acid is one of the world’s most important industrial chemicals, used in fertilizers (phosphates), oil refining, lead-acid batteries, and chemical manufacturing.

Prices in China have jumped 90% since the start of the US-Iran conflict in late February. Current prices exceed the highs recorded during the Russian invasion of Ukraine in early 2022.

"Already though, prices have risen, and if there’s a shortage of sulfuric acid, that could quite quickly translate into more expensive homes, cars and electrical products," Bloomberg analyst Sebastian Boyd noted.

In the mining sector, sulfuric acid is critical for the extraction of several key industrial metals, including copper, nickel, uranium, cobalt, and zinc. Sufer is not just for fertilizer to feed the world; the mining sector could also face major impacts if shortages materialize.

Tyler Durden Thu, 04/16/2026 - 18:05

Scientist Suggests Dark Matter Could Be Black Holes From A Different Universe

Scientist Suggests Dark Matter Could Be Black Holes From A Different Universe

Authored by Steve Watson via Modernity.news,

While the scientific establishment has spent decades chasing invisible particles that never quite show up, a leading cosmologist has dropped a theory that turns everything on its head: dark matter isn’t some exotic new particle. It could be ancient black holes that survived from an entirely different universe.

This idea, laid out by Professor Enrique Gaztanaga of the University of Portsmouth, doesn’t just tackle one cosmic puzzle. It offers a clean fix for the Big Bang’s thorniest problems and lines up with fresh observations that have astronomers scrambling.

Gaztanaga argues the elusive substance that makes up roughly 27 per cent of the universe’s mass may actually be “relic” black holes formed in a previous collapsing phase of the cosmos.

“The idea is that dark matter may not be a new particle, but instead a population of black holes formed in a previous collapsing phase and bounce of the Universe,” Professor Gaztanaga says.

He rejects the standard singularity model where everything explodes from an infinitely dense point that breaks physics. Instead, he proposes a “bouncing” universe.

“The Big Bang corresponds to a bounce from a previous collapsing phase, rather than the absolute beginning of everything,” the Professor Gaztanaga further noted, adding “So it is the start of the expansion we observe, but not necessarily the beginning of time itself.”

In this picture, black holes from the collapsing galaxies of that earlier universe survived the bounce and now drift through our cosmos, exerting gravity without emitting light.

“These ‘relic’ black holes would survive into the expanding phase we observe today and behave exactly like dark matter: they interact gravitationally, but do not emit light,” he explains.

The theory also neatly accounts for the James Webb Space Telescope’s baffling discovery of bright red dots—rapidly growing black holes—mere hundreds of millions of years after the Big Bang. If relic black holes were already present at the start, they would have had a massive head start.

It also sidesteps the need for new particles while explaining how supermassive black holes formed so quickly in the early universe.

This development builds on a wider wave of recent clues pointing to black holes and dense dark objects playing a bigger role than previously thought.

Recently, astronomers highlighted a massive invisible object that tore through the Milky Way’s GD-1 stellar stream, leaving a jagged gap and gravitational disturbances without any light, heat, or radiation. The phenomenon suggests “a ‘Dark’ Entity, likely a dense clump of dark matter or a previously undetected dark subhalo.”

This phenomenon has been witnessed before.

Hubble observations of the globular cluster NGC 6397 have also revealed a mysterious swarm of black holes lurking just 7,800 light-years from Earth.

For years the default dark matter story has been “trust us, it’s some particle we haven’t found yet.” Billions have been spent on detectors and accelerators hunting WIMPs or axions with zero direct detection to show for it. Gaztanaga’s relic black hole approach uses only known physics—general relativity plus quantum effects—and turns the collapse-bounce into the natural origin story.

Recent stellar stream disruptions like the one in GD-1 and compact object swarms in nearby clusters provide real-world data points that align with a universe seeded by surviving black holes rather than a sea of hypothetical particles.

The European Space Agency’s own description of dark matter captures the frustration: “Shine a torch in a completely dark room, and you will see only what the torch illuminates. That does not mean that the room around you does not exist.”

Gaztanaga’s framework says the “room” has been hiding in plain gravitational sight all along.

Scientists will now scrutinize gravitational wave data and CMB measurements for the predicted relics. If the numbers line up, two of cosmology’s biggest headaches—dark matter and the true origin of the Big Bang—get solved in one elegant stroke.

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.

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Tyler Durden Thu, 04/16/2026 - 17:45

Bankrupted Spirit Airlines Faces Imminent Liquidation

Bankrupted Spirit Airlines Faces Imminent Liquidation

Bankrupt Spirit Airlines "could liquidate as early as this week," according to a new CNBC report. The troubled carrier, stuck in years of turbulence, has failed to emerge from its second bankruptcy in less than a year and is now being squeezed by soaring jet fuel costs.

When the budget carrier would begin the liquidation process was not immediately clear to CNBC's sources, but the report comes just after an overnight Bloomberg story warned about the "risk of liquidation" due to the latest surge in jet fuel prices.

The airline had been trying to downsize its jet footprint and focus on popular seasonal routes, while labor unions made concessions to help keep operations afloat. But Spirit's financial problems have been mounting for a while.

In 2024, JetBlue terminated its $3.8 billion merger deal with the carrier, citing low odds of regulatory approval after a Biden-era federal court blocked the deal over antitrust concerns.

Both CNBC and Bloomberg sources said the liquidation was likely to happen this week; today is Thursday, and the news may break as early as Friday.

The airline, which is still operating as of late Thursday morning, was expected to exit bankruptcy this summer, but that now appears increasingly unlikely. The carrier filed for Chapter 11 bankruptcy protection in August of last year, the second time in less than a year.

Airlines have increasingly warned of a spike in jet fuel costs and the financial impacts stemming from the Hormuz chokepoint disruption. Multiple carriers, including United Airlines, have warned about hiking baggage fees and ticket prices to offset jet fuel costs.

Meanwhile, UBS analysts are searching for a possible bottom in airline stocks (read the report). 

The best-hedged airline amid the jet fuel turmoil has been Delta Air Lines, the only U.S. carrier to operate a refinery.

Earlier this week, Reuters reported that United CEO Scott Kirby pitched a tie-up with American Airlines during a recent conversation with President Trump. The potential merger would create a super airline to strengthen U.S. competitiveness globally.

Tyler Durden Thu, 04/16/2026 - 17:25

Secret Service Targets Thieves Stealing SNAP Benefits In Texas

Secret Service Targets Thieves Stealing SNAP Benefits In Texas

Authored by Jill McLaughlin via The Epoch Times (emphasis ours),

Fraudsters used special devices to skim card information from electronic devices used to read food stamp cards in northern and central Texas, the U.S. Secret Service’s Dallas Field Office reported April 15.

A U.S. Secret Service agent, in this file photo. Madalina Kilroy/The Epoch Times

The Secret Service worked with local law enforcement to prevent an estimated $13.5 million in losses to Dallas-area consumers this week as part of a two-day outreach operation targeting illegal payment card skimming and electronic benefit transfer (EBT) fraud.

EBT fraud is a serious threat impacting families nationwide,” said Special Agent in Charge of the Dallas Field Office Christina Foley. “Our investigative teams are committed to dismantling these skimmer operations and holding perpetrators accountable.”

Law enforcement personnel visited 462 area businesses in Tarrant County during the operation between April 13 and April 14.

Nearly 3,000 point-of-sale terminals, gas pumps, and ATMs were inspected during the visits, the Secret Service reported.

Teams also provided educational materials about credit card skimming to help businesses identify illegal devices that can be installed on their terminals, gas pumps, and ATMs.

The FBI estimates skimming costs financial institutions and consumers more than $1 billion each year. Criminals use the data they get from installing devices on or inside ATMs or point-of-sale terminals to capture card data and record PIN entries.

Once they have the information, they use it to make purchases or steal from victims’ accounts, according to the FBI.

SNAP benefits can also be skimmed, according to the U.S. Department of Agriculture. The agency suggests people avoid using simple PINs and keeping the information private by not sharing it and changing the PIN often. They also suggested checking SNAP accounts often to detect unauthorized charges.

The individuals behind these schemes are relentless, but so are we,” said Assistant Special Agent in Charge Michael Peck of the Secret Service Criminal Investigative Division. “Through coordinated efforts and innovative investigative methods, we are disrupting their operations and ensuring that those who exploit vulnerable families are brought to justice.”

SNAP is the largest federally funded nutrition assistance program in the United States. The low-income program provided about $96 billion in assistance to about 43 million people in 2025, according to a report by the General Accountability Office last year.

The report found SNAP benefits have been stolen through a few different methods, including card skimming, card cloning, phishing activities, algorithmic attacks, and stolen account numbers.

A sign alerting customers about SNAP benefits is displayed at a grocery store in New York City on Dec. 5, 2019. Scott Heins/Getty Images

The EBT cards are a target for theft because most cards do not have theft-prevention features, such as embedded microchips that are standard in commercial debit and credit cards to prevent card skimming, according to the GAO report.

Perpetrators of SNAP benefit theft can range from individuals acting independently to organized crime groups, who steal benefits to help fund illicit activities,” the GAO report stated. “Such groups can operate across geographic and legal jurisdictions, which allows access to more program benefits, in more locations, at the same time.”

State SNAP agencies replaced more than $320 million in stolen benefits with federal funds for nearly 679,000 households in 52 states from Oct. 1, 2022, through Dec. 20, 2024, according to the report.

Tyler Durden Thu, 04/16/2026 - 17:05

From Supply-Chain Risk To National Security Imperative: U.S. Government Embraces Anthropic's Mythos AI

From Supply-Chain Risk To National Security Imperative: U.S. Government Embraces Anthropic's Mythos AI

In a striking reversal that underscores the breakneck pace of the AI arms race, the White House has directed federal agencies to begin using Anthropic’s most dangerous new model - Claude Mythos - despite months of public friction between the Trump administration and the San Francisco-based AI company (read on to see how we reconcile this with the Pentagon's "supply-chain risk" designation). 

The move, detailed in an internal Office of Management and Budget (OMB) memo circulated this week, marks the first formal green light for Cabinet-level departments to tap Mythos’s unprecedented cybersecurity capabilities. The goal: to hunt down vulnerabilities in government networks before adversaries can exploit them, Bloomberg reports.

Too Powerful to Release, Too Valuable to Ignore

Anthropic unveiled Mythos (sometimes referred to internally as “Mythos Preview”) just weeks ago, and it immediately sent shockwaves through the tech and national-security communities.

In controlled testing, the model autonomously discovered and weaponized thousands of previously unknown zero-day vulnerabilities across every major operating system, web browser, legacy enterprise software, and even decades-old codebases. Its speed and creativity reportedly surpassed top human red-team hackers. As we noted earlier this month, the model “went rogue” during testing - prompting Anthropic to withhold a broad release entirely. Full technical details are available in Anthropic’s official Mythos Preview System Card.

Rather than ship it publicly, Anthropic launched Project Glasswing - a tightly controlled defensive program that grants limited access only to a vetted circle of partners: Amazon, Google, Microsoft, Apple, major banks (including JPMorgan Chase), cybersecurity firms, and the Linux Foundation. The explicit mission is defense only -  scan your own systems, find the bugs, patch them fast, and keep the bad guys out. The official program page is here.

From "Supply-Chain Risk" to Strategic Asset

The government’s relationship with Anthropic had been icy for months. As we noted in February, the Pentagon threatened to blacklist the company as a “supply-chain risk” after Anthropic refused to strip certain ethical guardrails from its models for military use. That standoff escalated in March when Anthropic sued the Pentagon over the designation, as detailed in ZeroHedge’s coverage of the lawsuit.

That said, the Pentagon’s “supply-chain risk” label was always narrow in scope: it was a DoD-specific action triggered by the company’s refusal to remove certain ethical guardrails from its models for unrestricted military and offensive-use applications. That designation threatened to block Anthropic technology from defense contracts and classified work, and it led directly to Anthropic’s lawsuit against the Pentagon.

Today’s OMB memo changes almost nothing on paper for that designation. The Pentagon has not withdrawn it, the lawsuit is still active, and DoD contractors remain restricted from using Claude models (including Mythos) in offensive or surveillance contexts.

Just days ago, the U.S. Treasury was rushing to gain access to Mythos after internal warnings that the model could “hack every major system.” Senior Treasury and Federal Reserve officials had summoned CEOs of the nation’s largest banks to Washington, warning them that the financial system’s exposure to AI-powered attacks had become existential. Behind closed doors, federal agencies - including the Commerce Department’s Center for AI Standards and Innovation - had already begun quiet red-teaming of Mythos. Anthropic co-founder and president Daniela Amodei confirmed the company had briefed the administration early, telling reporters simply: “The government has to know about this stuff.

Now the OMB memo formalizes that reality. It lays out strict protocols for safe access, data handling, and usage limits so that major departments can deploy Mythos against their own sprawling digital estates. The focus remains narrow: vulnerability discovery, network hardening, and defensive preparedness.

What This Means for the AI Arms Race

This is not the first time Washington has had to swallow its pride to stay competitive. But the Mythos episode - from the earliest Pentagon threats through the April 8 Glasswing announcement and this week’s Treasury scramble - feels different. It is a microcosm of the larger tension defining 2026: frontier AI models are now so capable that even their creators are scared of them, yet ignoring them would be national-security malpractice.

Critics inside the defense community argue the government waited too long. Supporters of Anthropic’s cautious approach counter that the company’s restraint (and its Glasswing coalition) may have prevented an even worse outcome: a fully open-sourced Mythos circulating on the dark web.

For Anthropic, the development is a quiet vindication. By keeping Mythos under lock and key and building Glasswing as a defensive shield, the company has positioned itself as a responsible steward of dangerous technology - while still earning a seat at the table with the most powerful customer on Earth.

Tyler Durden Thu, 04/16/2026 - 16:45

Netflix Plunges After US Revenues Miss, Dismal Q2 Guidance, Hastings Stepping Down As Chairman

Netflix Plunges After US Revenues Miss, Dismal Q2 Guidance, Hastings Stepping Down As Chairman

After staging a powerful rebound in the past two months, when first weak Q4 earnings sent the stock plunging to multi-year lows, which however was offset by the end of the company's expensive pursuit of HBO/Warner Bros. Discovery , and which sent the stock almost 50% higher from $75 to $108,moments ago Netflix reported Q1 earnings which were mixed but guidance was especially poor and rekindled the same fears as those unveiled three months ago, and coupled with the news that Reed Hasting was stepping down from the board after 29 years to pursue "philanthropy and personal interested", NFLX stock tumbled as much as 10% after hours. 

Here is a snapshot of what NFLC reported for the first three months of the year: most notable here is another miss in the US which should have been a much more solid number considering the latest of many prices increases for NFLX subs in the US:

  • EPS $1.23 vs. 66c y/y, beating estimates of $0.76
  • Revenue $12.25 billion, +16% y/y, beating estimates of $12.17 billion; the miss comes after Netflix raised its US subscription prices in March, boosting its standard plan without ads by $2 to $20 a month.
    • US & Canada revenue $5.25 billion, +14% y/y, missing estimates of $5.28 billion
    • EMEA revenue $4.00 billion, +17% y/y, beating estimates of $3.95 billion
    • Latin America revenue $1.50 billion, +19% y/y, beating estimates of $1.45 billion
    • APAC revenue $1.51 billion, +20% y/y, beating estimates of $1.48 billion
       
  • Operating income $3.96 billion, +18% y/y, beating estimate $3.94 billion
  • Operating margin 32.3% vs. 31.7% y/y, missing estimate 32.4%
  • Cash flow from operations $5.29 billion, +90% y/y, beating estimate $3.29 billion
  • Free cash flow $5.09 billion, +91% y/y, beating estimate $2.67 billion

The biggest event in Q1 was Netflix' decision to walk away from a contentious battle for control of Warner Bros. Discovery in February, netting a nice $2.8 billion termination fee. The company’s shares had suffered during the months long tussle with Paramount Skydance as investors were concerned about the amount of debt it would shoulder under a potential deal. Now Wall Street is looking for signs Netflix can keep subscribers engaged and judging by the stock price it is not seeing them.  

While Q1 results were mixed, with unexpected weakness in the US offset by strength elsewhere, it was the company's guidance that was especially weak, with Q2 estimates coming well below consensus across the board:

Q2 Forecast

  • Sees EPS 78c, missing estimate 84c 
  • Sees revenue $12.57 billion, missing estimate $12.64 billion
  • Sees operating income $4.11 billion, missing estimate $4.34 billion
  • Sees operating margin 32.6%, missing estimate 34.4%

And here is the full year guidance: 

  • Sees revenue +12% to +14%
  • Sees free cash flow about $12.5 billion, saw about $11 billion, higher than the estimate $12.05 billion
  • Still sees revenue $50.7 billion to $51.7 billion, in line with estimate $51.37 billion
  • Still sees operating margin 31.5%, missing estimate 32%

Some of the commentary and highlights from the investor letter

  • Boosted FY FCF outlook due to after-tax impact of Warner Bros. related termination fee
  • Still sees annual cash content spend to amortization ratio of about 1.1x
  • Still sees 2026 advertising revenue on track to reach $3 billion
  • Sees 2Q highest y/y content amortization growth rate in 2026
  • Sees content amortization growth rate decelerating to mid-to-high single digit growth in 2H

The company reported that cash generated from operating activities nearly doubled in Q1'26, vs. Q1’25, totaling $5.3BN compared to $2.8B in the prior year. However, much of this increase was thanks to a $2.8B cash receipt from the Warner Bros.-related termination fee. As a result, free cash flow (FCF) rose to $5.1B in Q1'26, up from $2.7B in Q1'25. NFLX now expects 2026 FCF of approximately $12.5B, an increase from its previous projection of $11B due primarily to the after-tax impact of the Warner Bros.-related termination fee.

NFLX ended the quarter with gross debt of $14.4B and cash and cash equivalents of $12.3B. The cash position is more elevated than normal due to the pause in our share repurchase program during the Warner Bros. transaction and the subsequent receipt of the deal. In other words, expect a burst of stock buybacks to lift the stock in coming weeks. 

And while markets may gloss over all of the above, what it will focus on is that the co-founder Reed Hastings is stepping down as board Chairman after 29 years to pursue philanthropy and personal interests.

Hastings’ departure may worry investors given his status as one of the great entrepreneurs of the 21st century. Hastings provided the initial capital to start Netflix as a DVD-by-mail service and replaced co-founder Marc Randolph as chief executive officer in 1999. He guided the company through its battle with Blockbuster and was the driving force behind its move into video streaming. 

Under Hastings’ leadership, Netflix introduced the streaming service to more than 190 territories all over the world, outmaneuvering Hollywood studios to build the most valuable entertainment company in the world. He stepped down as CEO in January 2023, ceding the job to co-CEOs Ted Sarandos and Greg Peters. 

“Netflix changed my life in so many ways, Hastings said in a statement. “A special thanks to Greg and Ted, whose commitment to Netflix’s greatness is so strong that I can now focus on new things.”

And whether it was Hastings' departure, the miss on US revenues, or the dismal Q2 guidance, the stock was pounded after hours, and tumbled as much as 10% from $107 to $97 before recovering some of the losses.

At just under $100, NFLX stock is unchanged over the past year. 

Tyler Durden Thu, 04/16/2026 - 16:31

Wall Or Sieve? Attacks Raise Doubts About U.S. Immigration System

Wall Or Sieve? Attacks Raise Doubts About U.S. Immigration System

Authored by Benjamin Weingarten via RealClearPolitics,

In the wee hours of Sunday, March 1, a Senegalese immigrant clad in a sweatshirt bearing the words “Property of Allah” opened fire outside an Austin, Texas beer garden, killing three and leaving 14 others wounded.

On March 12, at Old Dominion University, a former Virginia National Guard member from Sierra Leone – released early from an 11-year prison sentence for attempting to provide material support to the ISIL – yelled “Allahu Akbar” before shooting and killing a beloved college professor and wounding two other people.

That same day, a Lebanese immigrant plowed a pickup truck filled with fireworks and gasoline into a large synagogue in West Bloomfield, Michigan. After exchanging gunfire with security staff, he killed himself. His brother, it turned out, was a recently eliminated Hezbollah commander in Lebanon. 

Amidst the emerging threat environment of the Iran war, these and other attacks on U.S. soil have reignited questions about the U.S. immigration system’s vetting and screening standards. Republican leaders are increasingly asking how, for example, foreign nationals like the Afghan evacuee who shot two National Guard members in Washington, D.C. – killing one of them – or the Egyptian national overstaying his tourism visa who firebombed pro-Israel demonstrators in Colorado last year were able to come here and commit such acts. They are also asking how close relatives of top Iranian officials, including avowed supporters of that country’s regime, have been allowed to live and work in the United States. 

Earlier this month, Secretary of State Marco Rubio announced that he had terminated the legal status of the niece of Iranian Major General Qasem Soleimani, who was killed by the U.S. in a targeted attack in 2020, and her daughter. Rubio described the niece on X as “an outspoken supporter of the Iranian regime who celebrated attacks on Americans and referred to our country as the ‘Great Satan.’ ”

While the Trump administration has effectively closed the southern border, the U.S. Citizenship and Immigration Services has concluded that “prior screening and vetting measures” of people who cross the border legally “were wholly inadequate,” creating “significant national security and public safety risks [that] compromise the integrity of the immigration system.”

Administration critics argue that fears of foreign-born terrorism are vastly overblown. Alex Nowrasteh of the Cato Institute told RealClearInvestigations that the annual chance of being murdered in a terrorist attack on U.S. soil by a foreign-born attacker is “about one in 165 million per year. All politically motivated violence is a tiny threat,” he said. “Exaggerating the threat does not bring us closer to delivering justice to the victims of every violent or property crime who deserve it.”

RCI’s review of congressional testimony and research, and interviews with immigration and national security experts, uncovered long-standing flaws in the system – some of which were exacerbated by the Biden administration’s lax immigration policies. Challenges run the gamut from incomplete information about applicants to inconsistent enforcement of the law. Even if relatively few immigrants commit deadly attacks, the vetting system has routinely permitted people with obscure backgrounds and hostile views to visit and live in the U.S. 

Robust Design

America’s immigration system is complex and multilayered, involving a range of departments and agencies that provide different levels of scrutiny depending on which of the dozens of categories would-be entrants fall into, from tourists to asylum seekers. As with most laws and rules, different administrations vet applicants with varying levels of vigor depending on whether they want to encourage or discourage immigration.

Three agencies lead the vetting process. The State Department issues visas; U.S. Citizenship and Immigration Services reviews petitions for immigrants seeking benefits such as citizenship or permanent residency, refugee and asylum claims, and other protections; Customs and Border Protection provides defense at the point at which aliens attempt to enter the country. Across these processes, sometimes with redundancy, authorities conduct biographic and biometric screenings, run name checks across U.S. security databases to search for red flags such as criminal histories or inclusion on terror watchlists, and interview would-be visitors.

As designed, the immigration system requires nearly all noncitizens seeking to enter the U.S. to obtain a visa. Nonimmigrant visas cover temporary trips for business or tourism, whereas immigrant visas cover permanent stays that may be family-, employment-, or education-based.

Those seeking long-term stays are subject to more rigorous scrutiny. While undergoing detailed background checks, they are generally required to file petitions, secure sponsors, and meet incremental thresholds and standards necessary, for example, to unite with family or work full-time. In 2024, the U.S. issued about 600,000 visas for long-term stay. 

The vast majority of visas are issued to tourists and other temporary visitors – nearly 11 million in 2024. They are generally subject to less scrutiny.

In theory, those millions of temporary visitors will leave before their visas expire. In practice, a reported 40% of illegal aliens currently in the U.S. – amounting to millions of people – are visa overstayers, illustrating one of the myriad security-related issues plaguing the U.S. Homeland Security system. 

“The vetting system is robust,” former senior INS official and immigration judge Andrew Arthur told RCI. But, he added, it “is only as good as the intelligence that the USG possesses and the access that the individual consular officer or OFO [CBP Office of Field Operations] officer has to that intelligence.”

To that end, our “biggest vulnerability,” in the words of the Heritage Foundation’s Simon Hankinson, is that officers often lack access to derogatory information held by foreign countries.

As Hankinson, a longtime former foreign service officer, recently detailed, this problem pervades even the U.S. Visa Waiver Program, where the citizens of several dozen generally safe and friendly countries – including most EU countries and Japan – may visit America visa-free for up to 90 days. Those waivers come in exchange for security cooperation, including sharing their citizens’ criminal records. 

Cracks in the System

Critics note that only a few U.S. counterparts automatically check their visiting citizens’ criminal records. The U.S. otherwise must request that home countries run queries. Meanwhile, America lacks information-sharing agreements with many countries altogether.

These problems only grow when other nations lack reliable data, or where their authoritative documents may be easily fabricated – one of the justifications for Trump’s travel bans disproportionately hitting the Middle East and Africa.

“I worked in India, I worked in Ghana, [where] right outside the consulate, there were stores selling fake degrees, fake passports. I mean, they didn’t even hide it,” Hankinson said.

Incomplete data or suspect documents aside, authorities have also highlighted that U.S. databases may not always talk to each other. A June 2024 DHS Inspector General report indicated that “DHS’ biometric system…could not access all data from Federal partners to ensure complete screening and vetting of noncitizens seeking admission into the United States” due to “ongoing technical limitations.” The inspector general also found that border patrol officers lacked the hardware necessary to perform biometric screenings of people arriving by car or truck. 

Federal authorities have also not always vigorously enforced their own security protocols. A September 2025 DHS IG report detailed that from March 2020 to March 2024, the State Department issued 12 million nonimmigrant visas without conducting in-person interviews or collecting fingerprints. CBP officers encountering foreign nationals at points of entry were unaware that the State had not fully screened some of them. 

Subpar vetting was common regarding the tens of thousands of Afghans admitted to the U.S. in the wake of the Biden administration’s pullout from the country in 2021. In a January 2026 hearing, DHS Deputy Inspector General for Audits, Craig Adelman, submitted written testimony indicating that under Operation Allies Welcome, in several instances “DHS could not demonstrate that it accurately knew who individuals were, where they were located, whether parole conditions were being met, or whether individuals had unresolved risk indicators.” CBP sometimes lacked “access to critical data to properly screen, vet, or inspect” them. 

Adelman’s testimony came following the National Guardsman shooting by evacuee Rahmanullah Lakanwal, and the prosecution of Nasir Ahmed Tawhedi, another evacuee who would plead guilty to plotting a mass-casualty attack on behalf of ISIS around Election Day 2024.

More broadly, the Government Accountability Office has found that the humanitarian parole processes have generally lacked sufficient anti-fraud measures, making it hard to ensure those fleeing warzones or failed states pose no threat to the U.S. homeland.

These findings also come on top of the millions who entered the country illegally during the Biden administration – and related immigrant overstays and backlogs creating security risks all their own. Hundreds of thousands of asylum claimants, for example, have been insufficiently screened historically during prolonged adjudication periods, DHS’ watchdog has found.

Hankinson is adamant that “we have not been enforcing our own rules with anything like the tenacity that we should have been. We’ve been really giving the benefit of the doubt to the alien in every circumstance.”

Ironically, the president’s opponents also agree that the immigration system is broken. But instead of tweaking the current system, many Democrats and their allies have floated the idea of abolishing the Immigration and Customs Enforcement (ICE) agency.

Good Questions, ‘Bad Odor’

Another potential issue that recent security incidents have raised is whether authorities are properly vetting and screening for indicators associated with the actual threats faced.

Federal law, drafted in the shadow of World War II and during the Cold War, generally deemed inadmissible immigrant members or affiliates of totalitarian political parties. Laws later expanded to encompass terrorists and their supporters.

But records may not exist of terrorist activities or support among those hailing from failed states. Despite this potential vulnerability, those with whom RCI spoke indicated that immigration officers do not tailor questions to unearth whether visitors harbor a terrorist worldview that could suggest future trouble or merit further scrutiny.

Authorities are “looking for Communists and Nazis,” Hankinson told RCI, not “Islamic fanatics…people who believe in Sharia law, who want to cut the hands off criminals, or have women dressed in burkas.” 

Dan Cadman, a retired INS/ICE official now at the Center for Immigration Studies, told RCI that “the vetting procedures have not captured Islamist/ adversarial/ subversive ideologies among family members and close associates.” Were such affiliations known, for example, in the case of the would-be Michigan synagogue attacker Ayman Mohamed Ghazali, whose brother was a Hezbollah commander, immigration authorities likely would have subjected him to heightened scrutiny – and perhaps denied him entry. 

Cadman attributes the lack of ideological bar to the “bad odor” to which such tests are held, and the fact that they lead to “thorny questions” about when religiously-based views “cross into the arena of politics” and constitutional rights. Progressive groups and others panned the blanket travel restrictions Trump pursued during his first administration sought to impose on myriad Muslim-majority countries as “Muslim bans.”

Nevertheless, some analysts have proposed bans of those affiliated with Islamist groups analogous to those of totalitarian political parties already on the books to satisfy such concerns. Several members of Congress appear receptive to this idea as well. Legislation is currently pending before the House and Senate to amend the Immigration and Nationality Act to render “advocates for the imposition of Sharia law” inadmissible, and remove Sharia adherents accordingly.

Even if such questions could survive First Amendment challenges, some observers doubt they would provide useful answers. David Bier of the Cato Institute told RCI, “There is no evidence that asking people general questions like whether they support terrorism or Sharia law would be an effective way to prevent attacks in the United States.”

Arthur, Cadman’s colleague at the Center for Immigration Studies, added that “identifying those who hold hostile beliefs is a difficult endeavor, and one that even the best adjudication and screening system will struggle to achieve.”

Whether a change in standards or their implementation might have prevented the recent attacks on U.S. soil by immigrants who became naturalized citizens remains unclear. Arthur says these incidents show “a decline in assimilation on the part of the naturalized citizen and in integration on the part of the United States” – a transcendent problem all its own.

Crackdown and Pushback

The Trump administration has sought to significantly enhance vetting standards, mitigate risks, and more vigorously enforce the law.

The president kicked off his second term with an executive order directing national security authorities to ensure that all aliens are “vet[ted] and screen[ed] to the maximum degree possible,” including for those threatening national security and bearing “hostile attitudes” toward America, its people, and institutions. 

In June, the president fully or partially restricted and limited the entry of nationals from 19 countries it deemed to pose security risks, some Muslim-majority, via executive order – a broad measure to mitigate screening and vetting risks. 

Democrats assailed these efforts as “bigoted” and “Islamophobic.” 

“This discriminatory policy, which limits legal immigration, not only flies in the face of what our country is supposed to stand for, it will be harmful to our economy and communities that rely on the contributions of people who come to America from this wide range of countries,” Democratic Washington state Rep. Pramila Jayapal has said. “Banning a whole group of people because you disagree with the structure or function of their government not only lays blame in the wrong place, it creates a dangerous precedent.”

Later that year, in August, USCIS updated its policy guidance to ensure that when immigration officers are evaluating immigration benefit requests, aliens’ support or espousal of the views of terrorist groups, including anti-Americanism, and Jew-hatred, ought to weigh heavily against applicants. 

Last December, USCIS paused all pending asylum and benefit applications from the 19 “high-risk countries” identified in the June executive order while conducting a “re-review of approved benefit requests” for all aliens from those countries entering the U.S. on or after the first day of the Biden administration. The administration also extended travel restrictions to 20 additional countries.

Among other initiatives, the second Trump administration is also “re-vetting” previously admitted aliens, and engaging in “continuous vetting” of all U.S. visa holders – some 55 million at the time it announced the policy – for violations that could lead to their deportation.

It has reportedly revoked 100,000 visas – a 150% increase versus 2024.

DHS says that ICE has arrested more than 43,000 potential national security risks, including 1,416 known or suspected terrorists, some 1,392 of which have been removed. It did so in announcing the recent arrest of Salah Salem Sarsour, a Jordanian national who the U.S. asserts was convicted decades ago in Israel of throwing a Molotov cocktail at the homes of Israeli military personnel and illegally attempting to possess weapons. DHS claims Sarsour is “suspected of funding terror organizations and lying on immigration forms” to enter the country, after which he became a green card holder back in 1998. The arrest of the Islamic Society of Milwaukee president generated strong pushback from the ACLU and the Council on American-Islamic Relations, with the former suggesting Sarsour may have been targeted for being “outspoken in his support for Palestinian rights” in violation of the First Amendment – a microcosm of the debates simmering over the president’s immigration policies.

Last month, the U.S. Intelligence Community assessed that “increased border security, stricter screening and vetting, and improved international information sharing” have led jihadist groups to focus “more on virtually recruiting U.S.-based aspirants to encourage and enable potential attacks.”

With the Trump administration already planning to significantly ramp up denaturalization efforts in response to revelations of fraud perpetrated by immigrants, this assessment and recent attacks from the naturalized population may only further fuel such efforts.

Tyler Durden Thu, 04/16/2026 - 16:20

California Supreme Court Disbars Former Trump Attorney For Aiding Challenge Of 2020 Election Results

California Supreme Court Disbars Former Trump Attorney For Aiding Challenge Of 2020 Election Results

Authored by Brad Jones via The Epoch Times,

The California Supreme Court decided to disbar former Trump attorney John Eastman over his aiding the president in challenging the 2020 presidential election results.

The court has not yet handed down an opinion to explain the April 15 decision, which affirmed the California Bar court’s recommendation for disbarment for alleged attorney ethics violations.

Eastman, a former Chapman University law professor, gained national attention for advising President Donald Trump on constitutional challenges to election procedures in several battleground states after the president alleged widespread election fraud.

The California decision is not the end of the line for Eastman. He can still practice law in the U.S. Supreme Court and possibly in another state.

“Federal courts are supposed to let me keep practicing, and the U.S. Supreme Court has allowed me to continue practicing, even while I’ve been placed on inactive status [in] California,” he said.

Eastman told The Epoch Times the state court’s decision is “outrageous” and “Orwellian.”

“What’s happening here to our institutions that have been captured by hard line, political, weaponized activists needs to be addressed. I was hopeful that the state Supreme Court would do that, but they’ve obviously punted,” he said.

“And so, it’s now up to the U.S. Supreme Court to fix this metastasization of the weaponization problem.”

Eastman said his attorney will file a certiorari petition, which is a formal request asking the U.S. Supreme Court to review the state court’s decision “because of the First Amendment violations that it represents.”

The U.S. Supreme Court has made clear that “professional speech does not get lesser First Amendment protection than anybody else’s speech,” Eastman said.

“And yet, what the court has done here is basically said ... I don’t get the same First Amendment protection that the man on the street gets because I was representing a client,” he said.

Eastman claims he is a victim of “lawfare” and was “debanked” over the controversy, which he said is “obviously partisan in nature.”

George Cardona, the chief trial counsel of the State Bar of California, alleged in a June 14 statement that Eastman violated his fundamental obligation to be truthful and uphold the rule of law “when, at the behest of his client, now-President Donald Trump, he engaged in a calculated campaign to falsely undermine the results of the 2020 presidential election, which then-candidate Donald Trump lost.”

Cardona alleged that Eastman “lied to courts,” then-Vice President Mike Pence, and the American people.

Randall Miller, an attorney with the Miller Waxler law firm who represents Eastman, criticized the decision in a statement emailed to The Epoch Times.

“The California Supreme Court has allowed to stand a State Bar Court recommendation that we contend departs from longstanding United States Supreme Court precedent protecting First Amendment rights, especially in the attorney discipline context,” Miller wrote.

“We disagree with that outcome and believe it raises pivotal constitutional concerns regarding the limits of state regulation of attorney speech,” he wrote.

“We will seek review in the U.S. Supreme Court to repudiate this threat to the rule of law and our nation’s adversarial system of justice.”

Deborah Pauly, an attorney with the LEX REX Institute and longtime conservative activist in Orange County, Calif., told The Epoch Times in a text message that the California Supreme Court “rubber-stamped the Bar Court’s recommendation.”

“California is trying to silence anyone who endeavors to protect and defend our Constitution from the swamp,” she said.

Tyler Durden Thu, 04/16/2026 - 15:45

Major Advertising Agencies Settle Media Censorship Lawsuit With FTC

Major Advertising Agencies Settle Media Censorship Lawsuit With FTC

Authored by Jacki Thrapp via The Epoch Times (emphasis ours),

The Federal Trade Commission (FTC) and eight states secured a settlement on April 15 that will prevent three major advertising agencies from engaging in unlawful media censorship.

An American flag flies at the Federal Trade Commission (FTC) headquarters in Washington on Nov. 24, 2024. Benoit Tessier/File Photo/Reuters

The defendants Dentsu US, Inc., GroupM Worldwide LLC (doing business as WPP Media), and Publicis, Inc. will no longer enter into deals that require them to restrict working with certain clients, according to the settlement.

“A coordinated group of woke, powerful individuals attempted to suppress that Constitutional right by manipulating ad agencies into sabotaging the reach, revenue, and credibility of conservative voices,” Texas Attorney General Ken Paxton said in a statement released on April 15.

The plaintiffs - including Florida, Indiana, Iowa, Montana, Nebraska, Texas, Utah, and West Virginia - alleged that censorship deals between ad agencies and companies had been happening in the background during the past decade, which limited rising voices in the alternative and online media space.

The lawsuit accused some of the largest ad agencies of establishing brand-safety agreements that labeled content creators as “misinformation,” making them unable to receive ad revenue.

The alleged brand-safety standards were part of a campaign to demonetize prominent figures in the conservative space such as Glenn Beck, Steve Bannon, and the late Charlie Kirk, according to court documents reviewed by the Epoch Times.

The campaign allegedly attempted to censor and suppress content from Fox News Channel and X, formerly Twitter.

This is a deeply disturbing violation of antitrust laws and our Constitution,” Paxton added.

“This was an egregious attempt to control public opinion and silence those who speak out against the liberal elites and powerful corporations. I will continue to lead the fight against viewpoint suppression and protect the speech of Americans from corrupt manipulation.”

As part of the settlement, defendants also agreed to have a court-ordered monitor to make sure agencies are sticking with the agreement and no longer censoring political viewpoints.

The defendants agreed not to enter into or enforce any deal that would limit their advertising spending on political or ideological viewpoints or DEI commitments.

The ad agencies’ brand-safety conspiracy turned competition in the market for ad-buying services on its head,” FTC Chairman Andrew N. Ferguson said in a statement on Wednesday.

​Ferguson added, “this unlawful collusion not only damaged our marketplace, but also distorted the marketplace of ideas by discriminating against speech and ideas that fell below the unlawfully agreed-upon floor.”

Tyler Durden Thu, 04/16/2026 - 15:05

Taiwan Semi Slides Despite Record Results In Warning Sign For Chip Companies

Taiwan Semi Slides Despite Record Results In Warning Sign For Chip Companies

Taiwanese chip giant, Taiwan Semiconductor Manfuacturing Co, said Thursday its net profit surged to a fresh record in the first quarter, fueled by the global artificial intelligence race despite the war in the Middle East. Massive demand for AI hardware means business is booming for TSMC -- the biggest contract maker of microchips used in everything from Apple phones to Nvidia processors.

TSMC's net profit for the first three months of the year jumped 58.3% YoY to NT$572.5 billion ($18 billion), beating analyst estimates of NT$540.20 billion as governments and tech giants continue to pour huge sums into building data centers that can train and run AI tools such as chatbots, image generators and agents that can execute tasks. A weaker Taiwanese dollar had also boosted the firm's revenues from overseas sales: the company said net revenue rose 35.1% YoY to a record NT$1.13 trillion. Gross margin was 66.2% in the first quarter, further increased from a record 62.3% last quarter.

Here is the full Q1 breakdown:

  • Sales NT$1.13 trillion, +35% y/y, estimate NT$1.12 trillion
  • Net income NT$572.5 billion, +58% y/y, estimate NT$542.38 billion
  • Gross margin 66.2% vs. 62.3% q/q, estimate 64.5%
  • Operating profit NT$658.97 billion, +62% y/y, estimate NT$623.82 billion
  • Operating margin 58.1% vs. 54% q/q, estimate 55.6%

While overall earnings were stellar, largely thanks to relentless AI chip demand, one weak point was smartphone revenue, which fell 11% compared to the previous quarter as the industry faces an ongoing memory shortage.

"The recent situation in the Middle East... brings further macroeconomic uncertainties, as such we are being prudent in our business planning," TSMC chairman CC Wei said.  TSMC CFO Wendell Huang said the company did not expect the war to impact its supply of key chipmaking materials such as helium and hydrogen in the near term, despite mounting fears that the collapse in Qatar helium exports would wreak havoc on global chip production.

"We source from multiple suppliers in different regions, and we have prepared safety stock inventory on hand," Huang told an earnings call, adding that energy supplies were also sufficient to continue operations as normal for now.

TSMC said its revenue for the April-June quarter will reach another record of between $39 billion and $40.2 billion, which represents 32% year-over-year growth at the midpoint. Gross margin is expected to be between 65.5% to 67.5%. Commenting on the forecast, Bloomberg said that “TSMC’s 2Q gross-margin guide above 1Q’s record suggests rising chemical and gas costs tied to Middle East disruption aren’t enough to derail the company’s structural margin reset”

That said, TSMC warned the surging price of gas and chipmaking chemicals could weigh on the company's profitability and the global economy, while increasing component costs, including for memory chips, could affect the price-sensitive consumer market.

The results are in line with those of leading memory chipmakers, including Samsung Electronics, SK Hynix and Micron Technology, all of which have benefited from the global AI infrastructure boom. Samsung earlier this month flagged preliminary first-quarter operating profit surging 755% year on year, driven by an unprecedented memory shortage. Micron's gross margin reached 74% in the fiscal quarter ending February 2026 and is expected to rise further to around 81% in the current quarter, underscoring the strength of demand.

A note from UBS analysts had predicted strong quarterly results for TSMC but warned that consumer demand was weakening as a result of higher prices caused by a global memory chip shortage that is a side-effect of the AI boom. "Cloud AI demand continues to strengthen, but we think supply constraints will limit meaningful upside for TSMC this year," the UBS team said. "Middle East tensions add a layer of macro uncertainty, but AI spend should stay insulated, barring a protracted conflict."

TSMC's good news was bad news for  PC manufacturers, who are facing a rare double-whammy: TSMC's foundry price hikes are converging with memory cost inflation, creating a cost squeeze that's already forcing retail price increases. The math is straightforward-chips cost more to make, and memory modules are pricier to buy-and the result is a fundamental upward pressure on every PC built.

TSMC's 2026 price adjustments target the advanced nodes that power premium laptops and desktops. The company notified clients that prices for sub-3nm processes will rise 3% to 10% starting January 1, 2026, with the exact increase depending on the node 3%-10% by node. TSMC currently sells 3nm wafers for approximately $20,000 each, and 2nm wafers will exceed $30,000 when mass production begins 3nm at ~$20,000, 2nm above $30,000. These are the chips that go into flagship devices, and the cost differential is material. For context, TSMC's Arizona facility, which is now producing 4nm chips, costs 5-20% more to operate than Taiwan-based manufacturing, a factor baked into the pricing strategy Arizona operations 5-20% more expensive.

The memory side of the equation is equally aggressive. DRAM and NAND flash prices have been climbing as suppliers tighten contract terms and inventories normalize. Asus, one of the world's largest PC vendors, responded in early January 2026 by implementing price increases of 15% to 20% on selected notebook and desktop models Asus price increases 15-20%. The company explicitly cited "RAM and storage cost pressure" as the driver, linking the shift directly to supplier pricing rather than logistics or labor Asus attributed increases to memory costs. Asus targeted specific consumer and commercial models-but the effect was immediate: Taiwan retailers began raising prices on competing brands' systems to preserve their own margins retailers raised prices on rival brands.

* * * 

TSMC is also planning record capital spending of up to $56 billion in 2026, part of a broader push by Asia's chip industry that could total at least $136 billion. ASE Technology Holding, the world's largest chip-packaging and testing provider, updated its guidance and said investment this year will exceed earlier forecasts.

"We expect AI to continue fueling growth for TSMC despite weak non-AI demand," said Mark Li, veteran semiconductor analyst with Bernstein Research. "Fortunately for TSMC, we see no impact to its business as the capacity released by non-AI customers will be quickly filled by AI customers who could not find sufficient capacity before."

TSMC Chairman and CEO C.C. Wei also commented for the first time on Tesla and Intel's collaboration on Terafab advanced chipmaking facilities in the U.S. and on Intel's push into the contract chipmaking business and advanced chip packaging. Recently Elon Musk says his company is embarking on its own in-house chip business because capacity from its chip suppliers, including TSMC, Samsung and SK Hynix, is insufficient to meet its needs. 

"Actually both Intel and Tesla are TSMC customers, but they are [also] our competitors. We view Intel as a formidable competitor, and do not underestimate them," Wei said. "But I will say that there are no shortcuts. The fundamental rule of the foundry never changes. We need technology, leadership, manufacturing excellence and customer trust, which has been mentioned by Jensen [Huang]" -- Wei said, thanking the Nvidia CEO for his words. 

Wei said it takes two to three years to build a new chip plant and another one to two years to ramp it up. TSMC, he added, is also building new fabs to satisfy its customers. "The capacity is very tight and we are working hard to make sure we can meet customer demand."

Despite TSMC's record Q1 results, US-listed shares are down 2.3% (having risen nearly 19% off a recent low). The failure of either TSMC or European chip giant ASML (which sasnk 3% on concerns over shrinking sales to China and sky-high expectations from investors) to catch a tailwind from positive reports could be a bellwether for the wider chip industry as earnings season rolls on.

It is also the latest example of how astronomical expectations have weighed on chipmaker stocks. Last quarter, Nvidia’s blowout fourth-quarter earnings report was met with a 5% sell-off.

Tyler Durden Thu, 04/16/2026 - 14:05

Trump Urges Extending Foreign Surveillance Program As Some Lawmakers Push For US Privacy Protections

Trump Urges Extending Foreign Surveillance Program As Some Lawmakers Push For US Privacy Protections

Via Headline USA,

Congress is set to take up the reauthorization of a divisive program that lets U.S. spy agencies pore over foreigners’ calls, texts and emails, with supporters like President Donald Trump saying it has saved lives while critics point to longstanding concerns about warrantless surveillance of Americans.

(AP Illustration/Peter Hamlin)

A key provision of the Foreign Intelligence Surveillance Act permits the CIA, National Security Agency, FBI and other agencies to collect and analyze vast amounts of overseas communications without a warrant. It incidentally sweeps up the conversations of any Americans who interact with those foreigners targeted for surveillance.

The program expires Monday, and critics want changes, including a requirement for warrants before authorities can access the emails, phone calls or text messages of Americans. They also want limits on the government’s use of internet data brokers, who sell large volumes of personal information gleaned online, offering the government what critics say amounts to an end-run around the Constitution.

Despite bipartisan criticism, the chances of significant reforms dropped when Trump announced his support for the program’s renewal, saying it had proven its worth in supplying information vital to recent U.S. actions in Venezuela and Iran.

The fact is, whether you like FISA or not, it is extremely important to our military,” Trump said on Truth Social Tuesday.

U.S. authorities say the program, known as Section 702 of the law, is vital to national security and has saved lives by uncovering terror plots. Critics question what they call a dangerous infringement on civil liberties and privacy.

In a Truth Social post, Trump said a different FISA provision was used to spy on his 2016 campaign but that he supported Section 702’s renewal despite misgivings that political adversaries could use parts of the law against him in the future. He called on lawmakers to extend the foreign surveillance program for another 18 months.

My administration has worked tirelessly to ensure these FISA reforms are being aggressively executed at every level of the Executive Branch to keep Americans safe, while protecting our sacred Civil Liberties guaranteed by our Great Constitution,” Trump wrote.

Trump is a longtime critic of the nation’s intelligence services and was once opposed to Section 702 before he reversed himself. “KILL FISA” Trump posted on social media in 2024, when the provision was last reauthorized.

Trump isn’t the only one-time critic to change their mind: Director of National Intelligence Tulsi Gabbard sponsored legislation to repeal Section 702 as a Hawaii congresswoman but now supports it after being tapped to coordinate the nation’s 18 intelligence agencies.

Gabbard says new protections added since her time in Congress helped change her mind.

In addition to a requirement for a warrant to access Americans’ data, critics also want greater protections on how the FBI or other agencies can search communications and how that is reported to the public.

Journalists, foreign aid workers, people with family overseas, all could have their communications swept up in this surveillance merely because they talked to someone outside of this country,” said Sen. Ron Wyden, D-Ore. The longtime critic of the law is pushing for changes that he said will ensure the government isn’t violating civil rights in secret.

Several Republicans also have suggested changes, such as the warrant requirement.

“National security and civil liberties are not mutually exclusive,” said Rep. Andy Biggs, R-Ariz. “We can give our intelligence professionals the tools they need to target foreign threats while ensuring that Americans are not subjected to unconstitutional surveillance.”

Gabbard’s office releases an annual report showing the number of foreign surveillance targets and number of searches likely to identify an American.

For 2025, the number of foreign surveillance targets increased to nearly 350,000 from almost 292,000 in 2024. Searches using terms likely to identify an American decreased slightly to 7,724 from 7,845 in 2024.

The totals are incomplete because agencies like the FBI have found ways to access the data without reporting the searches publicly, said Elizabeth Goitein, senior director of the Liberty and National Security Program at the Brennan Center for Justice at New York University.

FBI officials repeatedly violated their own standards when searching for intelligence related to the Jan. 6, 2021, insurrection at the U.S. Capitol and racial justice protests in 2020, according to a 2024 court order.

It’s reminiscent of J. Edgar Hoover’s tenure at the FBI,” Goitein said, referring to the FBI’s founding director who used illegal surveillance to harass and spy on Americans. “They can pretty much target anyone.”

Despite bipartisan concerns about the law and its implications for civil liberties, time is running out for Congress to make any changes before Monday’s expiration.

Trump’s support also reduces the odds that enough Republicans will break ranks and join Democrats to push for reforms.

Wyden said Section 702 votes are routinely delayed until the last minute, then lawmakers are told that national security demands they vote yes. Lawmakers are told, he said, that “if they vote for any amendments, the program will die and terrible things will happen and it will be all their fault.”

The best chance for inserting changes likely is the House, where a large number of lawmakers from both parties have expressed concerns.

But Rep. Rick Crawford, an Arkansas Republican who chairs the House Intelligence Committee, is backing Trump’s call for an 18-month renewal.

Crawford has taken aim in the past at what he calls the weaponization of intelligence but said last month that he believes the government can empower spy agencies while also holding them accountable.

“We can walk and chew gum at the same time,” Crawford said.

Adapted from reporting by the Associated Press

Tyler Durden Thu, 04/16/2026 - 13:45

LIV Golf CEO Denies "Speculation" That Saudi Arabia On Cusp Of Severing Ties

LIV Golf CEO Denies "Speculation" That Saudi Arabia On Cusp Of Severing Ties

Update (1130ET)Amid reports that Saudi Arabia's Public Investment Fund might be on the verge of pulling its funding for the league, LIV Golf CEO Scott O'Neil told staff in an email overnight that its season will go on "as planned, uninterrupted and at full throttle."

The email, which was obtained by ESPN, didn't directly address reports that PIF might stop investing in the breakaway circuit after spending more than $5 billion since its inception in 2022, or whether the league will continue competitions beyond this season.

"I want to be crystal clear: Our season continues exactly as planned, uninterrupted and at full throttle," O'Neil wrote in the email.

"While the media landscape is often filled with speculation, our reality is defined by the work we do on the grass. We are heading into the heart of our 2026 schedule with the full energy of an organization that is bigger, louder, and more influential than ever before."

LIV Golf is scheduled to play its sixth tournament of the season starting Thursday at Club de Golf Chapultepec near Mexico City.

Its first tournament in the U.S. is scheduled for May 7-10 at Trump National Golf Club in Sterling, Virginia.

*  *  *

As Middle East Eye reported earlier, Saudi Arabia's Public Investment Fund (PIF) is on the cusp of cutting its backing for LIV Golf, as it tightens its belt amid the US-Israeli war on Iran and delayed megaprojects at home.

The Financial Times reported on Wednesday that the kingdom’s sovereign wealth fund could announce it was stepping away from the Saudi-backed golf tour, established in 2021, as early as Thursday, taking a hit on its $5bn investment in the entity.

via AFP

The report said PIF had been weighing an exit before the US-Israeli war on Iran began, but any decision would likely send a chill through the sports world and other entities seeking cash from Gulf sovereign wealth funds.

PIF is the main backer of LIV Golf, which has racked up major losses since its founding in 2021, and the move would likely spell its demise.

PIF's bet on LIV Golf to rival the PGA Tour was one in a series of investments that were made in a bid to bolster the kingdom’s involvement in sports and entertainment, as it pushes to diversify its economy away from energy.

Even before the US-Israeli war on Iran, high-flying projects were being cancelled or massively scaled down. The kingdom’s finance minister, Mohammed al-Jadaan, said in December that it had "no ego" preventing it from reassessing projects.

Earlier this year, Saudi Arabia suspended construction of the Mukaab, a giant cube-shaped structure set to be built in downtown Riyadh. The kingdom also shelved plans to build a desert ski resort and a large dam for an artificial lake.

Because of its East-West pipeline running from the Gulf to the Red Sea, Saudi Arabia can bypass Iran's control of the Strait of Hormuz. It is practically the only Gulf state exporting oil amid the war and is benefiting from higher oil prices.

But the conflict has also made it harder for Gulf states to present themselves as safe hubs for tourism and business.

Yasir al-Rumayyan, the governor of PIF, told Al Arabiya Business on Wednesday that the war on Iran was having an effect on PIF’s calculus, saying that “the war would add more pressure to reposition some priorities”.

Rumayyan confirmed for the first time that a 170km straight-line city envisioned to be part of the larger Neom development was no longer a priority.

"There are directives to Neom to reprioritise. Everyone thinks The ‌Line is Neom, but The Line is one project in Neom," he said. "Is it necessary to have The Line by 2030? I think no. It's good to have, but not a must-have," he said.

Cutting ties with LIV Golf would align with the kingdom’s efforts to keep more of its sovereign wealth fund cash at home. PIF is estimated to be worth $1 trillion.

Rumayyan said that PIF wanted 80 percent of its investments to go to local projects while it deployed 20 percent abroad, down from a high of 30 percent in recent years.

Tyler Durden Thu, 04/16/2026 - 13:05

Google In Talks With Department Of War To Deploy Gemini AI In Classified Settings

Google In Talks With Department Of War To Deploy Gemini AI In Classified Settings

The Information, citing multiple people familiar with the discussions, reports that Google is now negotiating with the Department of War on an agreement that would allow Gemini AI models to be deployed in classified settings. This development suggests the DoW is moving very quickly to broaden the use of frontier models for military and intelligence purposes after the Anthropic fiasco.

The agreement under discussion would permit the DoW to deploy Gemini for lawful uses, signaling what can only be seen as a critical expansion of Google's DoW business, as AI models are being deeply embedded across defense and administrative functions. Sources say both parties are still negotiating the terms.

Those sources noted that Google proposed additional language in the contract to ensure that AI models used by the DoW would not be weaponized for domestic mass surveillance or for autonomous weapons without "appropriate" human oversight.

As we've previously noted, AI kill chains and autonomous weapons are flooding the battlefield across Eurasia. 

The potential deal comes after the Trump administration blacklisted Anthropic for restricting the military use of its AI models.

While Anthropic's litigation plays out in court, OpenAI's Sam Altman recently revealed that his AI company "reached an agreement with the Department of War to deploy our models in their classified network."

Tyler Durden Thu, 04/16/2026 - 12:45

Jeep-Maker Stellantis Signs AI Deal With Microsoft

Jeep-Maker Stellantis Signs AI Deal With Microsoft

Stellantis and Microsoft are teaming up in a five‑year strategic deal to accelerate the deployment of AI across the automotive company's large portfolio of brands, including Alfa Romeo, Chrysler, Jeep, Maserati, Peugeot, and others.

The companies plan to develop more than 100 AI initiatives across customer care, product development, and operations. These include predictive maintenance, AI-assisted testing and validation, faster rollout of digital features, and personalized in-car services.

"By leveraging AI‑driven insights from secure, encrypted data, Stellantis reaffirms its commitment to put customers at the center of everything it does," Stellantis wrote in a press release.

Stellantis will build an AI-driven global cyber defense center covering its IT systems, connected vehicles, factories, and digital products, with the objective of detecting threats faster and improving resilience across its operations.

One example of physical AI being integrated into vehicles is the one highlighted by the automaker.

For example, Peugeot drivers may receive intelligent recommendations for more energy‑efficient driving in urban environments, along with proactive vehicle-health insights and feature updates designed to improve everyday usability.

The Stellantis-Microsoft partnership appears to be an attempt to push the legacy automaker into the 21st century, though there is still no indication that future Stellantis vehicles will get an in-car chatbot like those already standard on Teslas.

Last year, Tesla rolled out an over-the-air software update that integrated Grok, xAI’s AI assistant. At the same time, drivers enjoy the luxury of the Full Self-Driving (Supervised) system, which offers autonomous driving. Together, these features show how Tesla is years ahead of legacy OEMs, with physical AI already present on America's highways.

Tyler Durden Thu, 04/16/2026 - 12:05

"It's Really Illiquid": Goldman COO Warns Retail About Private Credit And The "Perception Of Liquidity"

"It's Really Illiquid": Goldman COO Warns Retail About Private Credit And The "Perception Of Liquidity"

Speaking at Semafor’s World Economy event in Washington, D.C., President and COO of Goldman Sachs John Waldron warned that some managers have oversold how easy it is to get money out—especially to retail investors, who’ve helped balloon the market into a $1.7 trillion behemoth just as the space faces growing scrutiny and tighter conditions, according to Semafor.

“Not everybody has marketed their product as clearly as, certainly we would like to see with the clarity that this is really not a liquid product. It’s not semi-liquid. It’s really illiquid,” Waldron said.

Those retail investors, I think, have the perception of more liquidity than is the reality.”

That mismatch matters more now. Private credit has been under pressure lately—from higher rates to jittery investors suddenly remembering they might want their cash back.

Semafor writes that Waldron isn’t predicting imminent trouble unless the broader economy cracks.

“This is an economy that has been predicted to be in trouble for a long time and shows extraordinary resilience,” he said.

“I still see that resilience.” He added, “This economy is much stronger than the narrative suggests.”

He said recent earnings don’t show “any real evidence” of serious weakness, and for now, “confidence is still pretty good,” though prolonged geopolitical tensions—like the ongoing conflict involving Iran—could start to erode that. If oil spikes and key routes like the Strait of Hormuz are disrupted, “you’re going to start to see demand destruction,” he warned.

The bigger watchpoint: liquidity.

Retail investors now make up roughly a fifth of the U.S. private credit market, drawn in by lower minimums—but not necessarily easy exits. Many of these funds cap withdrawals at around 5% per period.

“In situations where there’s a sense that there’s undercurrents of trouble in private credit, you could have more redemption pressure where people want their money back and their gates are going up because that’s the way the system works,” he concluded.

Tyler Durden Thu, 04/16/2026 - 11:25

Trump Signs Pipeline Permits To Boost US–Canada Oil Flow

Trump Signs Pipeline Permits To Boost US–Canada Oil Flow

Authored by Kimberley Hayek via The Epoch Times,

President Donald Trump issued several pipeline permits on April 15, including one for the construction of a new pipeline to facilitate the transportation of crude oil and petroleum products between the United States and Canada, according to documents released by the White House.

The action covers four permits in total. The permit authorizing construction was issued to the Bakken Pipeline Company LP for pipeline facilities in Burke County, North Dakota. Other permits were issued for the maintenance and operation of existing pipelines at border locations in North Dakota and Michigan. The recipients of those operational permits are “Enbridge Energy, Limited Partnership” and “Enbridge Pipelines (Southern Lights) L.L.C.”—both indirect subsidiaries of Canadian pipeline giant Enbridge Inc.

According to the White House documents, the permits cover transport of crude oil and petroleum products of every description—refined and unrefined—including naphtha, liquefied petroleum gas, natural gas liquids, jet fuel, gasoline, kerosene, and diesel. The permits explicitly exclude natural gas subject to the Natural Gas Act.

Wednesday’s permits reflect the administration’s sweeping effort to expand America’s domestic and cross-border energy infrastructure.

At the CERAWeek energy conference March 2025 in Houston, Energy Secretary Chris Wright had said that Trump’s pledge to lower energy costs by boosting oil and natural gas production would require a corresponding increase in infrastructure investment.

“If ‘Drill, baby, drill’ is to [lower energy costs], we’re going to have to ‘Build, baby, build,’” Wright told reporters.

The Enbridge permits issued Wednesday supersede authorizations dating to 1991, 1994, and 2008, effectively reissuing and consolidating federal approval under the current administration. The cross-border pipeline landscape has grown increasingly complex in recent years—there are more than 2.6 million miles of oil and gas pipelines crisscrossing the United States, with 71 networks spanning the border with Canada, meaning they are primarily regulated under federal law and by treaties between the two countries.

Enbridge has long been a central player in that network, though not without controversy: The company confirmed in late 2024 that it had cleaned up roughly 60 percent of a nearly 70,000-gallon oil spill from one of its lines in Wisconsin.

The U.S.–Canada energy relationship has also been shadowed by tariff tensions. Trump threatened to impose 25 percent tariffs on Canada over border security concerns, along with a reduced levy of 10 percent on Canadian oil and gas. Wednesday’s permits signal continued bilateral energy cooperation even as trade negotiations between the two countries remain active.

The permits arrive against a backdrop of years of pipeline battles between Washington and Ottawa.

Trump has pushed for the revival of the Keystone XL pipeline, which would transport crude oil from Canada to the United States.

“The company building the Keystone XL Pipeline that was viciously jettisoned by the incompetent Biden Administration should come back to America, and get it built—NOW!” Trump wrote on Truth Social in February 2025.

The Keystone XL project was ultimately suspended on Jan. 20, 2021, when then-President Joe Biden revoked its presidential permit, citing the need to “advance environmental justice.” Biden argued the project would “not serve the U.S. national interest” based on an analysis conducted under the Obama administration citing climate risk.

Canada has been eager to expand its access to U.S. markets. Calgary-based Enbridge Inc. has been in talks with customers about expanding its Mainline pipeline network—the largest pipeline system in North America—to handle growing volumes of Canadian oil output. Canada currently sends 97 percent of its oil exports and 100 percent of its natural gas exports to the United States, leaving it with limited leverage in any trade dispute.

Wednesday’s permits are the latest step in Trump’s strategy to make North America self-sufficient in energy and a dominant exporter.

Tyler Durden Thu, 04/16/2026 - 11:05

Trump Signs Pipeline Permits To Boost US–Canada Oil Flow

Trump Signs Pipeline Permits To Boost US–Canada Oil Flow

Authored by Kimberley Hayek via The Epoch Times,

President Donald Trump issued several pipeline permits on April 15, including one for the construction of a new pipeline to facilitate the transportation of crude oil and petroleum products between the United States and Canada, according to documents released by the White House.

The action covers four permits in total. The permit authorizing construction was issued to the Bakken Pipeline Company LP for pipeline facilities in Burke County, North Dakota. Other permits were issued for the maintenance and operation of existing pipelines at border locations in North Dakota and Michigan. The recipients of those operational permits are “Enbridge Energy, Limited Partnership” and “Enbridge Pipelines (Southern Lights) L.L.C.”—both indirect subsidiaries of Canadian pipeline giant Enbridge Inc.

According to the White House documents, the permits cover transport of crude oil and petroleum products of every description—refined and unrefined—including naphtha, liquefied petroleum gas, natural gas liquids, jet fuel, gasoline, kerosene, and diesel. The permits explicitly exclude natural gas subject to the Natural Gas Act.

Wednesday’s permits reflect the administration’s sweeping effort to expand America’s domestic and cross-border energy infrastructure.

At the CERAWeek energy conference March 2025 in Houston, Energy Secretary Chris Wright had said that Trump’s pledge to lower energy costs by boosting oil and natural gas production would require a corresponding increase in infrastructure investment.

“If ‘Drill, baby, drill’ is to [lower energy costs], we’re going to have to ‘Build, baby, build,’” Wright told reporters.

The Enbridge permits issued Wednesday supersede authorizations dating to 1991, 1994, and 2008, effectively reissuing and consolidating federal approval under the current administration. The cross-border pipeline landscape has grown increasingly complex in recent years—there are more than 2.6 million miles of oil and gas pipelines crisscrossing the United States, with 71 networks spanning the border with Canada, meaning they are primarily regulated under federal law and by treaties between the two countries.

Enbridge has long been a central player in that network, though not without controversy: The company confirmed in late 2024 that it had cleaned up roughly 60 percent of a nearly 70,000-gallon oil spill from one of its lines in Wisconsin.

The U.S.–Canada energy relationship has also been shadowed by tariff tensions. Trump threatened to impose 25 percent tariffs on Canada over border security concerns, along with a reduced levy of 10 percent on Canadian oil and gas. Wednesday’s permits signal continued bilateral energy cooperation even as trade negotiations between the two countries remain active.

The permits arrive against a backdrop of years of pipeline battles between Washington and Ottawa.

Trump has pushed for the revival of the Keystone XL pipeline, which would transport crude oil from Canada to the United States.

“The company building the Keystone XL Pipeline that was viciously jettisoned by the incompetent Biden Administration should come back to America, and get it built—NOW!” Trump wrote on Truth Social in February 2025.

The Keystone XL project was ultimately suspended on Jan. 20, 2021, when then-President Joe Biden revoked its presidential permit, citing the need to “advance environmental justice.” Biden argued the project would “not serve the U.S. national interest” based on an analysis conducted under the Obama administration citing climate risk.

Canada has been eager to expand its access to U.S. markets. Calgary-based Enbridge Inc. has been in talks with customers about expanding its Mainline pipeline network—the largest pipeline system in North America—to handle growing volumes of Canadian oil output. Canada currently sends 97 percent of its oil exports and 100 percent of its natural gas exports to the United States, leaving it with limited leverage in any trade dispute.

Wednesday’s permits are the latest step in Trump’s strategy to make North America self-sufficient in energy and a dominant exporter.

Tyler Durden Thu, 04/16/2026 - 11:05

Can You Price In No Longer Pricing Things In?

Can You Price In No Longer Pricing Things In?

By Michael Every of Rabobank

At this point it isn’t a random walk but a determined march: markets have decided the Iran war and the Hormuz blockades are over, and everything is going to be better than normal imminently: the Nasdaq and S&P are at all-time highs and even worries over private credit are receding. In the real world, there are signs that back that stance and ones that say otherwise.

Iran warned it could sink US ships in Hormuz if they police the waterway and the Houthis could blockade the Red Sea. The FT reports Iran used a Chinese spy satellite to target US bases. Note the subtext to Trump’s subsequent Truth Social post: “China is very happy that I am permanently opening the Strait of Hormuz. I am doing it for them, also - And the World. This situation will never happen again. They have agreed not to send weapons to Iran. President Xi will give me a big, fat, hug when I get there in a few weeks. We are working together smartly, and very well! Doesn't that beat fighting??? BUT REMEMBER, we are very good at fighting, if we have to - far better than anyone else!!!"

Yet the US and Iran are reportedly weighing a two-week truce extension and inching towards a framework deal, as the latter feels the economic pressure; crucially, China is seen pressing Iran to open Hormuz; and Tehran has offered a proposal allowing ships to exit the Oman side of the Strait free of attack, if a wider deal with the US can be struck. That looks like the face-saving way for the regime to re-open the Strait… if there can be a “grand bargain” on the nuclear issue, missiles, and its regional proxies. Matching that trend, Israel is close to a one-week ceasefire with Hezbollah in Lebanon, even if there is no clear way to rid the country of the terror group despite the Israeli and Lebanese authorities now seeming united in wanting to do so.

Potentially, we could still see this war end in line with what has been our base case for a while now: a broad --if naturally disputed-- US win vs Iran by the second to third week of April, giving it de facto control of a new Middle East (or, less likely, a belated TACO). Yet the downside is longer blockades, with tail risks of any new escalation deepening and/or widening the war. The latter scenario might only be priced into the physical market, not the oil futures markets.

Meanwhile, the US Beige Book noted “The conflict in the Middle East was cited as a major source of uncertainty that complicated decision-making around hiring, pricing, and capital investment, with many firms adopting a wait-and-see posture… Many Districts continued to report signs of consumer financial strain, increased price sensitivity, and rising demand at food banks and other social service organizations, while spending among higher-income consumers was resilient… several Districts reported that rising crop prices helped offset steep price increases of fertilizer and fuel.”

Australia needs more energy imports as a fire rages at one of its two oil refineries, the latest in a series of such accidents at the few western facilities still operating. An accident, sabotage, or just the result of over-working the facility in a crisis? Regardless, the founder of Ivanhoe Mines states that: “The Australian mining industry is now on the verge of collapse due to diesel shortages… the fuel supply chain that powers every drill, truck, and haul is about to snap.” Who drove that decline in refineries, one may ask? Markets and their uncanny ability to ‘price things in.’

China’s Canton Fair is clouded by higher costs hitting its exporters due to the Iran war.

Brussels warned EU countries not to hoard fuel within their borders weeks after telling everyone there was no risk of an energy crisis. Reportedly, the European Commission also wants to see fossil fuels taxed higher than electricity to drive the EU towards renewable energy in the long term – as member states are doing the opposite in the face of this crisis so far; and, from a broader geopolitical perspective, as we see the warning that ‘Fuel scarcity is European armies’ ‘Achilles’ heel.’ No military, and no mine, currently runs on electricity.

But let’s look to the ‘all-time highs’ post-war period and see if that’s really priced in or not.

Lots of scores will be settled in lots of places. As just one example of many, Trump has warned that the US-UK trade deal “can always be changed” with bilateral relations in a “sad state” after Britain was “not there when we needed them” on Iran.

There will be major structural shifts. For example, the IMF warns the war threatens to turbocharge a looming government debt crisis. The longer the blockade goes on, the more this is true. Defence spending is going to soar even higher even faster in even more places.

Specifically, the US is pushing for a staggering $1.5 trillion defense budget, up nearly 50%, and it’s using Iran and the ‘China threat’ to convince Congress to spend (read: borrow) much more. Very significantly, the Pentagon has also approached US automakers and manufacturers to ask if they can boost weapons production, e.g., GM or Ford shifting capacity from civilian to military. I’ve long argued neo-mercantilism and the US WW2 heuristic underlined ‘resilience’ requires a broad manufacturing base that can be adapted for military purposes in a crisis; that requires commodities and energy; and, in the face of others’ neo-mercantilism, it also means tariffs, subsidies, price controls, and a stronger state hand.

Indeed, alongside the farcical disconnect between the oil screen price --where investigations are underway into potential insider trading before Trump policy pivots-- and the physical price of a barrel, that Pentagon request is a clear ‘Reverse Perestroika’: a shift from markets and consumption to state-led military-industrial production, which requires other key components to succeed, including the Fed.

Notably, Trump is refusing to allow to halt the criminal probe of Fed Chair Powell --the DOJ made a surprise visit to the Fed’s under-renovation headquarters, where they were turned away: a blockade?-- while threatening to fire him if he won’t step down from the FOMC when his term ends on May 15. Powell says he won’t step down from the Committee until Warsh is appointed as Chair by the Senate; the Senate won’t appoint Warsh until the criminal prosecution of Powell is dropped. Does somebody need both sides to go to Pakistan to sort this out? But seriously, explain the logic of the Fed remaining untouched while epic shifts in geopolitics and political economy are underway; and do it without saying, “because markets.”

On which note, New York Mayor Mamdani also announced ‘Happy Tax Day’ aimed at raising $500m by taxing billionaires’ pied-a-terres in Manhattan: how much are their equivalents in Miami, one wonders?

Pulling this all together, it’s not just that the market has priced in only one possible geopolitical scenario ahead: it’s not pricing that geopolitics suggests a future when things aren’t priced in as the norm. At which point, what are markets for? Try answering that without answering what GDP is for.

I conclude by noting that a social media meme going round yesterday had two dinosaurs looking at a huge meteor approaching to impact the earth. The first says, “That doesn’t look good for us.” The second replies, “Don’t worry, it’s priced in.”

Tyler Durden Thu, 04/16/2026 - 10:25

Former Virginia Lt. Gov. Justin Fairfax And Wife Found Dead In Apparent Murder-Suicide

Former Virginia Lt. Gov. Justin Fairfax And Wife Found Dead In Apparent Murder-Suicide

Justin Fairfax, the former lieutenant governor of Virginia, and his wife, Cerina Fairfax, a dentist, were found dead in an apparent murder-suicide at their home shortly after midnight on Thursday, according to Fairfax County police.

Justin Fairfax in 2019. He served as Virginia’s lieutenant governor from 2018 to 2022.Credit...Parker Michels-Boyce for The New York Times

Fairfax, 47, shot and killed his wife before turning the gun on himself, Police Chief Kevin Davis said. The couple’s teenage children were home at the time of the shootings.

Davis described the deaths as the result of an “ongoing domestic dispute surrounding a complicated or messy divorce.” Court records show that the Fairfaxes had been engaged in divorce proceedings this year.

Fairfax, a Democrat, served as Virginia’s lieutenant governor from 2018 to 2022 after winning election in 2017 alongside Gov. Ralph Northam. He largely remained out of the spotlight until 2019, when a series of scandals engulfed the state’s Democratic leadership.

The crisis began when old medical school yearbook photos surfaced appearing to show Governor Northam in blackface. As calls mounted for Northam’s resignation, two women came forward to accuse Mr. Fairfax, who would have been next in line for the governorship, of sexual assault. One alleged the assault occurred in 2000 at Duke University; the other said it took place in 2004 at the Democratic National Convention, the NY Times reports.

Fairfax denied both allegations - but the accusations effectively stalled momentum to force Northam from office. The situation grew more chaotic when the state attorney general, the third-ranking Democrat in Virginia’s executive branch, admitted he too had worn blackface as a college student. All three men ultimately served out their full terms.

Insisting he had done nothing wrong, Fairfax launched a bid for governor in the 2021 Democratic primary. In one televised debate, he accused his rival, former Gov. Terry McAuliffe, of “treating me like Emmett Till” for calling on him to resign over the sexual assault allegations.

With minimal institutional support and limited fundraising, Fairfax finished fourth in the primary, receiving just 3.6 percent of the vote. Mr. McAuliffe won the nomination but lost the general election to Republican Glenn Youngkin.

Fairfax had kept a low public profile since leaving office. Thursday’s tragedy marks a grim end to a once-promising political career that was repeatedly overshadowed by scandal and personal turmoil.

Tyler Durden Thu, 04/16/2026 - 10:05

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