Zero Hedge

Jefferies Flags "Power Indicator" Of Soft iPhone 18 Demand In China

Jefferies Flags "Power Indicator" Of Soft iPhone 18 Demand In China

Edison Lee, Jefferies' head of China and Hong Kong technology and software research, is out with a note Monday morning warning that Apple's latest iPhone launch shows signs of softer demand, with weak Hong Kong resale prices suggesting consumers are pushing back against price hikes on premium models.

"Weak 18P/PM resale prices vs. 17P/PM remain our clearest sign of softer demand, despite a weekend rebound in lead times that could reflect tighter supply as DUO ramps," he wrote at the beginning of the note.

Lee points out that weak demand is most pronounced for the new premium iPhone 18 models:

Weak YoY resale pricing remains a powerful indicator of weaker 18P/PM demand vs. 17P/ PM. Our tracking shows 18P/PM resale-price trends in HK remain weak. iPhone 18P resale prices now imply discounts across almost all variants (Table 2). For 18PM, resale premiums fell sharply on day one and have since remained low or declined further (Charts 7-10). The only 18PM variant still commanding a meaningful premium is the 256GB model, at ~8% above Apple's official selling price. The 1TB/2TB versions are particularly weak, potentially reflecting two factors: 1) the US$400/500 price hikes may be too steep relative to consumers' perceived incremental value; and 2) Apple switched from TLC to lower-cost QLC NAND for the 1TB/2TB 18P/PM models, potentially making storage performance less attractive. As of Sep 27, 18PM resale premiums were meaningfully below those of 17PM at the same point last year, except for the 256GB model (Charts 1-2). Overall, resale pricing remains our clearest indication so far that 18P/PM demand is tracking weaker YoY.

Lead times rebounded over the weekend, an encouraging signal, but the improvement could be supply rather than demand driven. According to our tracking, lead times for both 18P/PM fell across almost all markets early last week before generally rebounding toward the weekend (Tables 1-2). As of Sep 27, 18PM lead times were longer YoY in HK/China and the US, shorter in the UK/Germany, and flat in Japan (Chart 5). For 18P, lead times were longer YoY in HK/ China, shorter in the US/Germany, and flat in the UK/Japan (Chart 6). The weekend rebound is encouraging and contrasts with the weaker resale-price signal. However, we would be cautious about interpreting it purely as a demand improvement, as supply could also be tightening as Apple ramps DUO production ahead of Oct 23 deliveries, with pre-orders starting Oct 16. We therefore view lead times as a more mixed signal than resale pricing at this stage.

DUO is generating lots of excitement, but China-specific eSIM restrictions could limit broader adoption. Given DUO's slim form factor, it is eSIM-only, similar to the 17 Air, which has not been selling well. Although eSIM was officially approved by China's MIIT last October, registration must be completed in person at operators' retail outlets. More importantly, China's DUO supports only two eSIM numbers, versus up to eight on eSIM-capable iPhones in HK. This matters because many Chinese consumers maintain multiple mobile numbers, partly because nationwide mobile-number portability was introduced only in 2019 and partly to separate work and personal communications. The restriction could be particularly inconvenient for frequent travelers. A DUO user already using two Chinese numbers who wants to add a third-party travel eSIM may need to suspend one domestic number first, requiring an in-person operator visit. The user would then need another in-person visit to reactivate the suspended number after returning to China. 

We do not think this will necessarily deter high-end early adopters buying DUO as a status symbol, but the inconvenience could become a bigger obstacle to broader adoption, particularly if consumers expect Apple to introduce a second-generation, regular-sized foldable in 2027.

Bank of America analysts said last week that early iPhone sales data painted a mixed picture, with demand for the iPhone 18 Pro broadly in line with the comparable stage of the iPhone 17 launch cycle.

For John Ternus, new Apple CEO, this will be his first test of whether consumers will pay lofty premiums for incremental upgrades. Lee pointed to price hikes of $400 to $500 on the higher-end models as a potential deterrent. He also noted Apple's switch to cheaper QLC storage from TLC in the 1TB and 2TB Pro models could make storage performance less attractive. 

Tyler Durden Mon, 09/28/2026 - 07:45

China Stocks Sink To One-Year Low As Proposed US Curbs Hammer Optical Suppliers

China Stocks Sink To One-Year Low As Proposed US Curbs Hammer Optical Suppliers

The CSI 300 Index, a leading benchmark tracking 300 of the largest stocks listed in Shanghai and Shenzhen, fell to a one-year low Monday. The index, roughly comparable to the S&P 500, came under pressure as co-packaged optics (CPO) shares sold off following a Reuters report of proposed US restrictions on Chinese optical transceivers used in sensitive government systems and data centers.

UBS's Lucy Zhang offered clients a first take on the Reuters report and the resulting selloff in Chinese stocks overnight:

China A-shares were under broad-based pressure Monday, led by a sharp selloff in the co-packaged optic (CPO) complex following press reports of fresh US policy restrictions.

Zhongji Innolight fell 9% and Eoptolink dropped 8%, weighing on the broader technology space, as investors reacted to proposed US restrictions targeting Chinese optical transceivers. 

The weakness came against an already fragile backdrop following the Trump-Xi summit, which delivered few concrete outcomes. Growth and technology heavy indices underperformed, with the ChiNext Index down 4.5% and the STAR 50 down 4.1%, as selling pressure spread across AI, optical networking, and broader TMT names. 

The combination of policy uncertainty, crowded positioning, and limited positive catalysts continues to weigh on market sentiment in the near term. A-share full-day turnover remained at RMB1.7 trn, broadly in line with the August-September average, indicating limited buy-on-dip flows ahead of the long holiday.

Meanwhile, The Information separately reported that Beijing may allow Alibaba and ByteDance to purchase Nvidia's RTX Pro 5500 chips, potentially intensifying competition for homegrown suppliers.

The onshore benchmark CSI 300 Index closed 2.2% lower Monday, tumbling to levels last seen in August 2025. The decline leaves the index vulnerable to further downside toward 4,000, with limited technical support that could amplify the move.

Last week's Trump-Xi summit, as described by Barclays senior China economist Yingke Zhou, was "more signaling, less substance," adding, "The Trump-Xi summit was primarily about stabilizing relations rather than resolving disputes. Beyond a short trade-truce extension, progress was limited. The absence of Chinese CEOs suggests China viewed the summit as a strategic dialogue, not a deal-making exercise." 

Tyler Durden Mon, 09/28/2026 - 07:20

It's A 'McDisaster'

It's A 'McDisaster'

McDonald's shares are on pace for their worst annual decline in nearly a quarter-century after the burger chain disappointed Wall Street last week at its Investor Day, with CFO Ian Borden warning that its US business would be "slightly negative" in the third quarter.

On top of that, Wall Street analysts, including Deutsche Bank's Lauren Silberman, soured on last week's developments and said the turnaround inflection point for the quick-service Big Mac chain has been delayed.

Shares of the burger giant have fallen nearly 31% from their February high and are heading for their worst annual performance since 2002.

Demand woes are emerging as the US price of a Big Mac jumped 23% between 2019 and the end of 2025, according to the Economist's Big Mac Index. While those increases helped offset higher ingredient, labor, and fuel costs, the days of a cheap burger are long gone.

"Their prices have gone up substantially, and it's no longer viewed as the best value in food," said Jacob Aiken-Phillips of Melius Research, who has the only "Sell" rating on the stock among analysts tracked by Bloomberg.

The Melius analyst noted, "I could go to Texas Roadhouse instead and have an actual sit-down experience with my family that's not that much more expensive."

What happened to MCD's quality control? 

Bloomberg pointed out that rival QSR chains are finding more traction with customers: Burger King posted US comparable sales growth of 8.5% in its latest quarter, supported by a revamped Whopper and a Star Wars promotion. Taco Bell's same-store sales rose 7% as its $5, $7 and $9 meal boxes attracted customers.

McDonald's answer to sagging demand has been an $8.5 billion multiyear overhaul involving technology, restaurant upgrades, food quality and service improvements, and an effort to revive its PlayPlaces, but the turnaround plan failed to ignite optimism on Wall Street.

Silberman's key quotes from her initial takeaways from Investor Day:

  • US sales remain weak: "US SSS were slightly negative in July and August, and while September should be positive, 3Q SSS are expected to be slightly negative given the slow start to the quarter."
  • Fourth quarter caution: "We suspect 4Q US SSS will likely remain sluggish, in part due to a tough comparison."
  • Forecast cuts: "We are lowering our 3Q/4Q US SSS to -0.5%/-1% (from flat)."
  • The capex bill: "We estimate the total system investment for NEXT will cost ~$19BN, implying MCD will contribute ~45%."
  • AI and productivity upside: "We walk away with increased conviction in the company's ability to improve unit economics by unlocking productivity through the implementation of its ArchIQ technology platform."

Read Deutsche Bank's report here. McDonald's play fits into a broader theme UBS equity trader Mark Paski recently warned about: Wall Street has turned its back on consumer stocks. An expensive turnaround is a tougher sell when working-poor customers can no longer afford pricey Big Macs. 

Tyler Durden Mon, 09/28/2026 - 06:55

Boat Migrants Who Have Entered Britain Now Outnumber Its Soldiers

Boat Migrants Who Have Entered Britain Now Outnumber Its Soldiers

Authored by Steve Watson via Modernity News,

Britain now has more illegal Channel arrivals under the Labour government, which has been in power two years, than it has soldiers in the British Army.

Home Office figures put small-boat arrivals since Labour took office on 4 July 2024 at 83,279. The regular Army stands at 83,000.

On Wednesday alone, 781 people came ashore - the worst single day since Andy Burnham replaced Sir Keir Starmer as prime minister in July. The first three days of the week delivered 1,085 arrivals. Across 809 days of Labour government, that works out at roughly 103 people a day.

Shadow home secretary Chris Philp said the milestone speaks for itself. "Labour has let an entire army-sized population cross the Channel illegally," he said. "More people have arrived in small boats than we have soldiers defending Britain. That is completely bonkers. Labour has lost control of our borders and seems utterly incapable of getting it back."

Former Royal Navy officer Chris Parry went further. Labour's intake, he said, amounts to six-and-a-half divisions of fighting-age men. "That's more divisions than were in the Allied assault wave on D-Day," he added, calling the crossings "amphibious operations against our coast."

The comparison is worse when the rest of the services are brought in. Labour's small-boat total already sits 15,429 ahead of the Royal Navy and RAF combined, which together field 67,850 full-time personnel. And this is only the post-election slice. Under the Conservatives, around 128,000 people arrived by dinghy. Since records began in December 2018 the running total has blown past 200,000 - higher than the combined strength of the Army, Navy and RAF.

Writing in the Mail after more than 1,200 people crossed from Monday, Reform UK leader Nigel Farage said: "It is utterly insane. And if it wasn't clear before, the events of the past few days have proved beyond any reasonable doubt that both Border Force and the Home Office have completely lost control."

He added: "Years ago, I warned the small boats crisis would define this era of British politics. Predictably, the chin-stroking commentariat declared I was exaggerating. Well, look where we are now."

"Ordinary Britons rightly ask if successive governments cannot stop people from arriving illegally in broad daylight, let alone under cover of darkness without detection, then what exactly is the point of having a border?" Farage asked. His party wants the largest military operation in the Channel since the Second World War and a return of every illegal arrival to France.

Two boats this week reached British beaches without Border Force interception - one at Samphire Hoe between Dover and Folkestone, another near Folkestone the day before. Home Secretary Shabana Mahmood ordered an "urgent review" and said even one uncontrolled landing is "one too many." Education Secretary Lucy Powell then told GB News that "you can't stop everything all of the time," while insisting Mahmood was taking "swift action to find out what's gone wrong here and make sure it doesn't happen again."

Border Force union official Lucy Moreton was less diplomatic. Undetected landings are "absolutely, definitely happening," she said, with abandoned vessels and reports "all the way down to Falmouth." "If we don't look for it, we don't know it's happening. We don't know it's happening, we don't have to deal with it."

Labour's first act in 2024 was to scrap the Rwanda deterrent. Shadow energy secretary Andrew Bowie said the latest numbers follow from that choice. "We've got a government that is oblivious to the scale of the problem we face in the Channel," he said. "It's not a surprise, frankly, because the very first thing this Labour government did was get rid of any sort of deterrent to prevent illegal migrants coming into this country."

Former Home Office borders director Glyn Williams told BBC Radio 4's Today programme that "the consequences of a failing policy... are becoming more and more extreme," and that "more extreme measures" may now have to be considered.

The official line is that crossings are down 42 percent this year and that summer 2026 was the quietest since 2020. That is the defence ministers reach for while dinghies still beach in Kent and Britain discusses paying France another billion pounds for the next small-boats deal. GB News presenter Patrick Christys called the week "full-on illegal migrant carnage."

The people coming off those boats do not vanish. They are processed, housed and parked on the public. We have already covered what that looks like on the ground. In Piddington, Oxfordshire - 350 residents, 46 children, no shop, no pub - a Home Office paper for the old MoD depot discussed 3,510 "service users" against an official planning figure of 1,256 single adult males. Ten migrants for every local.

Similar dumps are lined up at Linton-on-Ouse, Barnham and Crowborough as hotels are emptied into former barracks.

The legal machine that then keeps them here is not a refugee system. It is a production line. A Home Office official who has handled thousands of cases put the genuine share at "at best 1 per cent." Package stories, recycled police letters, staged nightclub photos, modern-slavery claims that cannot be disproved. Grant rates still run in the tens of thousands. Removals do not.

Who helps keep the Channel route open is another story again. NGO networks on the French coast have spent years treating the crossing as a humanitarian project rather than a breach of an island nation's border.

Migration Watch chairman Alp Mehmet urged "Military-age men are pouring into Britain across the Channel. Illegal Channel crossings are now a major political crisis, and pose a real and present threat to our national security."

Almost 90 percent of those intercepted since 2018 have been male; two-thirds are aged 18 to 39. People-smuggling gangs have told reporters that Iran has used the route to move operatives in return for a "favour" once on British soil. In 2023, nineteen suspected terrorists linked to Islamic State and al-Shabaab were reported to have arrived the same way.

A country that cannot stop a dinghy in daylight does not have a border policy. It has a ferry service run by criminal gangs, underwritten by hotels, lawyers and a claims system that treats refusal as the hard option.

Labour inherited a failure and then dismantled the one deterrent it had. Burnham now inherits the same beaches, the same numbers, and an actual Army smaller than the cohort that has already washed up on his party's watch.

Tyler Durden Mon, 09/28/2026 - 06:30

Italian Energy Giant Eni Caps Fuel Prices As Refining Crunch Drives Costs Higher

Italian Energy Giant Eni Caps Fuel Prices As Refining Crunch Drives Costs Higher

Authored by Charles Kennedy via OilPrice.com,

Italian energy major Eni will cap fuel prices at its Enilive service stations beginning September 28 as tighter refined-product supplies and reduced European refining capacity continue to put upward pressure on pump prices.

The company said diesel sold through Enilive will be capped at €2.19 per liter, while petrol will be limited to €1.99 per liter. Eni said the caps are roughly €0.17 per liter below current average price levels.

The measure will initially remain in place for 30 days and could be extended through the end of 2026 depending on fuel-market conditions and supply trends.

Eni said the initiative is linked to excise-tax relief currently in force in Italy and is intended to reduce the impact of elevated fuel prices on households and businesses.

European fuel markets have faced renewed pressure from geopolitical disruptions, constrained refined-product availability and a long-term decline in regional refining capacity. Eni said nearly 30 European refineries have closed over the past 15 years, leaving the market more exposed when supplies tighten or imports are disrupted.

The Italian major said it has already been absorbing part of the increase in international fuel prices since March rather than fully passing higher wholesale costs through to recommended pump prices.

The latest intervention comes as European countries continue to grapple with the consequences of shrinking conventional refining capacity while attempting to transition toward lower-carbon fuels.

Eni is maintaining refining-related investments in Italy through its Enilive business, including its biorefineries in Venice and Gela. The company is also transforming its Livorno industrial site and other domestic facilities as part of a strategy focused increasingly on biofuels and lower-carbon products.

Those projects allow Eni to retain domestic processing capacity while shifting part of its downstream portfolio away from traditional petroleum refining.

[ZH: Last week saw US diesel prices decouple (lower) from EU prices amid chatter of a US export ban...]

The price cap also illustrates the increasing pressure on European refiners and fuel retailers to balance volatile international product prices with government efforts to limit the impact of energy costs on consumers.

Tyler Durden Mon, 09/28/2026 - 02:00

Never Trust Uncle Sam On Drugs

Never Trust Uncle Sam On Drugs

Authored by James Bovard via JimBovard.com,

As the Covid-19 pandemic struck this nation, many Americans were stunned to see top federal health officials brazenly lie to buttress their own power. Bureaucrats and politicians unleashed themselves by shrouding how the feds bankrolled the creation of the pathogen, sanctifying a pseudo-miracle cure vaccine that was concocted almost overnight, and denying the vast collateral damage from effectively placing hundreds of millions of citizens under house arrest.

But there were precedents for all those crimes and follies in the federal war on drugs that began more than a century ago. That crusade established the right of federal officials to define reality and to scourge anyone who tried to reveal that federal Drug Czars were dangerous hucksters.

Federal contortions on marijuana are Exhibit A for why Americans should never trust Uncle Sam on drugs. For more than 50 years, the federal government shamelessly pretended that marijuana had no recognized medical use.

Last December 18, President Trump signed an executive order entitled, "Increasing Medical Marijuana and Cannabidiol Research." Trump ordered the Attorney General and the Drug Enforcement Administration to speed up rule-making to finally enable far more medical research on the benefits of marijuana. On April 23, Acting Attorney General Todd Blanche announced that henceforth all "FDA-approved marijuana-derived products" and "State-licensed medical marijuana products" are shifted from Schedule 1 to Schedule 3, a far less restrictive federal regulatory regime.

But the long history of federal persecution of marijuana users, researchers, and growers vivified the folly of trusting federal intervention to protect Americans' health.

Historical Context

During the 1920s, the US Department of Agriculture encouraged farmers to grow cannabis to boost their sagging incomes (hemp was used for such things as paper and rope). Marijuana also grew in popularity during the 1920s as a result of Prohibition, which inflated the price of alcohol by curtailing its availability.

During the Great Depression, Mexican immigrants surged into the United States searching for work and brought marijuana with them. Hostility toward the immigrants led to the Marihuana Tax Act of 1937, which effectively criminalized the possession of marijuana and, according to Yale professor David Musto, "mostly put a lot of jazz bands in jail."

Harvard Professor of Psychiatry Lester Grinspoon notes, "Between 1839 and 1900, more than a hundred articles on the therapeutic uses of marijuana appeared in scientific journals. As late as 1937, extract of cannabis was still a legitimate medicine marketed by drug companies." The American Medical Association testified at hearings that year urging that marijuana not be effectively banned. Unfortunately, Congress - bowing to the exhortations of the Federal Bureau of Narcotics - proclaimed in 1937 that marijuana had no medical value. Congress effectively prohibited any use of marijuana for ailing Americans. But simply because a majority of Congressmen say something doesn't make it true.

Federal Judges Need Not Apply

In 1972, the National Organization for the Reform of Marijuana Laws (NORML) petitioned the federal Bureau of Narcotics and Dangerous Drugs to reclassify marijuana and recognize its medical uses. The director of the agency refused to consider the petition. NORML took the case to a federal appeals court, which issued a ruling that admonished the agency for rejecting the petition without "a reflective consideration and analysis."

In 1975, NORML sued the Drug Enforcement Administration (the successor agency to the Bureau) to force the agency to evaluate the evidence on whether Americans should have access to marijuana strictly for medicinal purposes. The DEA held a hearing, and a DEA administrative law judge found some merit in some of NORML's positions. But the chief of the DEA overturned those aspects of the judge's decision.

In 1977, a federal court of appeals criticized the DEA's final order and ordered the agency to reconsider the evidence for the medical benefits of marijuana.

In 1982, NORML petitioned the federal appeals court to force the DEA to follow the court's previous orders. That same year, the National Academy of Science's Institute of Medicine concluded: "Cannabis and its derivatives have shown promise in the treatment of a variety of disorders, [including] glaucoma, asthma, ... and in the nausea and vomiting of cancer chemotherapy."

In 1986, a DEA administrative law judge launched an extensive evaluation of the evidence for marijuana. DEA judge Francis Young spent two years conducting hearings and listening to scores of expert witnesses. Young ruled in 1988: "The marijuana plant is anything but a new drug....Uncontroverted evidence in this record indicates that marijuana was being used therapeutically by mankind 2,000 years before the birth of Christ. The evidence in this record clearly shows that marijuana has been accepted as capable of relieving the distress of great numbers of very ill people and doing so with safety under medical supervision. It would be unreasonable, arbitrary and capricious for a DEA to continue to stand between those sufferers and the benefits of this substance in the light of the evidence of this record."

How did the DEA respond to the evidence? DEA administrator John Lawn denounced the judge's finding as a "cruel and dangerous hoax" and refused to accept the judge's ruling. Lawn announced that the agency would only allow medical use of marijuana if it had already "currently accepted medical use." And since the DEA forbade any doctors from prescribing marijuana for medical use, that somehow meant that the agency must continue to ban its use in the future.

NORML sued again, appealing to a federal court to force the DEA to accept the recommendations of its own administrative law judge, and the court again compelled the DEA to reexamine the issue.

In March 1992, the DEA "reconsidered" and announced that it was right all along and that it would continue to ban any medical use of marijuana. DEA chief Robert Bonner decreed: "Lay testimonials, impressions of physicians, isolated case studies, random clinical experience, reports so lacking in details they cannot be scientifically evaluated and all other forms of anecdotal proof are entirely irrelevant."

Bonner got warmed up and showed some of the fervor that is the pride of DEA: "Beyond doubt, the claims that marijuana is medicine are false, dangerous and cruel. Sick men, women and children can be fooled by these claims and experiment with the drug. Instead of being helped, they risk serious side effects." Bonner acknowledged that he based his findings on the same testimony and documents that led DEA Administrative Law Judge Young to an opposite conclusion four years earlier. (Bonner denounced me for writing a Washington Times article exposing the DEA's chemical warfare on hapless Guatemalan farmers.)

As Harvard psychiatry professors Lester Grinspoon and James Bakalar noted at that time, "The Government's real concern is not that marijuana is ineffective as a medicine, but that it is too effective. The Government cannot acknowledge any of this because it has vastly exaggerated the dangers of marijuana for more than 50 years and is still committed to its war against the drug."

Pseudo-Science Trumps Democracy

Clinton's drug czar General Barry McCaffrey effectively claimed to be a wiser scientist than all the experts who researched marijuana's effects. On August 15, 1996, while campaigning in California against Proposition 215, which would have legalized the medical use of marijuana, McCaffrey declared: "There is not a shred of scientific evidence that shows that smoked marijuana is useful or needed. This is not science. This is not medicine. This is a cruel hoax." On December 30, 1996, when asked by a CNN reporter "is there any evidence...that marijuana is useful in a medical situation?" McCaffrey responded: "No, none at all. There are hundreds of studies that indicate that it isn't." McCaffrey ridiculed claims of marijuana's benefit as "Cheech 'n' Chong medicine."

After voters passed the proposition, the drug czar's office put out a press release warning: "The passage of [Proposition 215] creates a significant threat to the drug control system that protects our children....The decision to bring appropriate criminal or administrative enforcement action will be, as always, decided on a case-by-case basis." McCaffrey's warning sparked a vision of a DEA agent lurking underneath the desk of every doctor.

Federal judge Fern Smith issued a preliminary injunction on April 30, 1997, prohibiting the feds from punishing doctors: "The government's fear that frank dialogue between physicians and patients about medical marijuana might foster drug use...does not justify infringing the First Amendment...[T]his case is about the ability of doctors, on an individualized basis, to give advice and recommendations to bona fide patients suffering from serious, debilitating illnesses regarding the possible benefits of personal, medical use of small quantities of marijuana."

Clinton administration officials sneered at marijuana referendum results. Attorney General Janet Reno declared: "I don't think that the determination as to whether there is a medical, a scientific medical use of marijuana, should be made at the ballot box. I think it should be made in an informed way after appropriate scientific evaluation." And if government officials chose to ignore all the scientific evidence, then that was merely political science.

The Specter of Emaciated Chemo Patients

The federal government in 1978 began a program providing marijuana directly to a small number of people with illnesses that undeniably benefited from consuming marijuana, such as glaucoma and epilepsy. But the George H.W. Bush administration closed the program to any new entrants in 1992 after only eight people were certified - even though hundreds of thousands of people suffered from the same illnesses. The Clinton administration refused to reopen the program to new sufferers.

The Justice Department, in a 1999 brief, declared: "It became clear that the potential widespread use of marijuana for 'medical' purposes under the program...was bad public policy." According to the Justice Department, the first requisite of good public policy is to pretend that individual citizens do not exist.

In 1997, the CBS situation comedy Murphy Brown featured star Candice Bergen suffering from the aftereffects of chemotherapy. A friend provided her with some marijuana. DEA chief Thomas Constantine denounced CBS for "doing a great disservice" by "trivializing drug abuse" and "pandering to the libertarian supporters of an 'open society' and to the myths of legalization."

Constantine barked: "I am extremely troubled that at a time when teenage drug abuse is doubling...a television show of the caliber of Murphy Brown would portray marijuana as medicine. It is not medicine." Constantine promised to investigate "if any laws were broken" by broadcasting that show.

Clinton's drug policy was haunted by the specter of emaciated chemotherapy patients desperately needing something to stop their vomiting and fire their appetites. And nothing works better for this than smoking marijuana. The feds approved pills with THC, the active ingredient in marijuana; however, pills are scant help to someone heaving their guts.

Bluster from Washington political hacks failed to stop the cascade of new scientific evidence on the medicinal benefits of marijuana:

  • A 1997 study performed on animals at the University of California at San Francisco found that cannabinoids (the active ingredient in marijuana) can be an effective reliever of pain without the adverse side effects of opiates.
  • The American Journal of Psychiatry reported in 1999 that German researchers successfully used the major psychoactive ingredient in marijuana to treat Tourette's Syndrome (a complex neuropsychiatric disorder characterized by sudden spasms).
  • The Proceedings of the National Academy of Sciences reported in 1998 that marijuana may protect brain cells during a stroke.
  • British researchers revealed in 2000 that a marijuana compound was very effective in helping control the muscle spasms that afflict people with multiple sclerosis.

Clinton administration officials suppressed research results of United Nations affiliates that embarrassed the US drug war. The World Health Organization (WHO) completed a major study of marijuana's effects in 1997. The draft of the final report included a comparison of the adverse effects of cannabis with alcohol and tobacco. However, the WHO, bowing to pressure from the US government and other drug warriors, suppressed that chapter.

New Scientist, a British magazine, acquired a copy of the study and reported that in five out of seven categories of long-term health damage, alcohol was judged more harmful than marijuana. The report also observed that "in developed societies, cannabis appears to play little role in injuries caused by violence, as does alcohol."

Obama's Great Betrayal

In 2008, Democratic presidential candidate Barack Obama appeared to pledge an end to the persecution of medical marijuana users and providers: "What I'm not going to be doing is using Justice Department resources to try to circumvent state laws on this issue." Regardless, the Obama administration brought almost twice as many prosecutions against medical marijuana providers and users as did the George W. Bush administration.

Rob Kampia, executive director of the Marijuana Policy Project, complained in 2012 that "Obama has become more hostile to medical marijuana patients than any president in US history." A 2012 Time Magazine analysis noted that the DEA "has made it clear that medical marijuana is not medicine, and even called it a 'mortal danger.'"

Obama's repression of medical marijuana coincided with an explosion in abuse of prescription painkillers. A 2016 federal report estimated that 38 percent of adults had used prescription painkillers in the previous year, resulting in 19,000 deaths (more than the national homicide total). Medical marijuana is a proven painkiller, but the Obama administration (supported by pharmaceutical companies' campaign contributions and lobbying) scorned it. The National Institute on Drug Abuse torpedoed a 2011 research project testing whether "marijuana helps combat veterans with their post-traumatic stress disorder."

Generations of politicians and bureaucrats scorned the scientific evidence on marijuana to score "tough on crime" points. Anyone with an illness or malady that marijuana could help became merely collateral damage in the war on drugs. More than ten million Americans were arrested for marijuana to help prop up Washington's campaign to demonize weed and anyone who touched it.

Marijuana policy vivifies how federal policymakers were perpetually more interested in controlling and punishing Americans than in permitting citizens to find relief for all that ailed them. "When you mix politics and science, you get politics," observed John Barry in The Great Influenza, his history of the 1918 Spanish flu outbreak. Unfortunately, hard facts can rarely compete with massive national campaigns to demonize anyone who refuses to submit to the latest commands.

An earlier version of this piece was published by the Future of Freedom Foundation.

Tyler Durden Sun, 09/27/2026 - 23:30

Nicki Minaj Blasts Democrats For Treating The Black Vote Like It's Theirs

Nicki Minaj Blasts Democrats For Treating The Black Vote Like It's Theirs

Rapper Nicki Minaj urged young Americans to vote Republican in the upcoming midterm elections during an appearance on Fox's My View with Lara Trump, according to comments Fox News reported Sunday. Minaj, a supporter of President Donald Trump, also accused the Democratic Party of discouraging black voters from breaking with the party.

Nicki Minaj - July 9, 2023 in Los Angeles, California. Christopher Polk for WWD

She kicked things off with a blunt call to "vote red."

"You know how much you want a say in what happens and realize that the only way to have that is by voting, not just voting for the president, but just voting and, you know, all of the local elections. Right?" she said. "But I want you guys to do your research, see what candidates are in your area, you know, and just give it a couple, you know, a few minutes or an hour. Research them and then make a decision. You guys are so blessed to be able to vote. And you have to, more than ever now, you have to take advantage of that ability that you guys have to be able to vote, please. And vote red."

Then Lara Trump asked whether she thought that "there are more people out there who vote for Democrats not because they like their policies and the politics themselves, but because they feel like they're supposed to vote for Democrats?"

"I think it's changing now, but obviously, for a very long time, black people specifically feel that they should just vote blue," Minaj said. "I would say the entire country, there's been a major shift where people are starting to wake up and see what's going on and choose differently."

The Grammy-nominee first came out in support of Trump in November 2025, after Trump spoke out about violence against Christians in Nigeria. She publicly thanked Trump for taking the issue seriously, marking a sharp change from her earlier criticism of his immigration policies. By December, she was openly praising Trump and JD Vance at Turning Point USA's AmericaFest, calling them "role models" and saying she had "utmost respect and admiration" for Trump.

"Black people are not allowed, according to the Democrats, for the most part, to make a different decision," she told Lara Trump. "We're not allowed to think, we're not allowed to voice concerns, to make an argument as to why we don't like a particular candidate."

Plenty of evidence backs this up. Joe Biden infamously told radio host Charlamagne tha God in 2020 that "you ain't black" if he had trouble picking between him and Trump.

In 2021, "Uncle Tim" trended on Twitter after Sen. Tim Scott (R-S.C.) delivered the Republican response to Joe Biden's 2021 joint address to Congress. Justice Clarence Thomas has received similar attacks for decades.

Minaj noted that black voters who aren't in line with the Democrats face "smear campaigns and just outright nasty behavior from these adults."

"It just doesn't look good," she added. "And so the Democrats kind of have been just digging their own grave in that way and they're not understanding that people can see them."

And, according to Minaj, black voters are catching on. "And now they feel, 'Oh, okay. So you only love me and respect me when I do as you say and don't ask any questions,'" she said. "And no one wants to be treated that way."

Asked by Lara Trump what she saw in Democrats that "led you to believe that perhaps they did not have the best interest of the country or for you in mind," Minaj accused the party of becoming "way too caught up in pop culture," arguing it has let its romance with the entertainment industry spiral out of control. "I think that they've allowed their relationships with artists to cause them to act like children and to be so petty and childish. But that's what I think they do. They allow people in the music industry to influence them. And these people clearly don't have their best interests at heart. These people have their egos at heart."

Tyler Durden Sun, 09/27/2026 - 22:15

China Extends Mortgages To 40 Years, But Homebuyers Remain Reluctant To Borrow

China Extends Mortgages To 40 Years, But Homebuyers Remain Reluctant To Borrow

Authored by Michael Zhuang via The Epoch Times,

China's decision to extend the maximum term for individual home mortgages from 30 years to 40 years has received a lukewarm response from homebuyers.

Residential buildings under construction by Chinese real estate developer Vanke in Hangzhou, in eastern China's Zhejiang province on May 9, 2024. STR/AFP via Getty Images

Several major Chinese banks moved quickly to offer 40-year mortgages after the policy took effect, with some advertising approval times as short as 15 minutes. However, Chinese media reports indicate that relatively few prospective buyers are opting for the longer loans.

The policy change, announced jointly by the People's Bank of China (PBOC) and China's National Financial Regulatory Administration on Aug. 28, allows individual home mortgages to run for up to 40 years, according to Chinese state media Xinhua News Agency.

The PBOC said the longer term would give borrowers and lenders greater flexibility and help promote a "virtuous cycle" between finance and the property sector.

However, the longer repayment period has done little to change a broader shift in household behavior. Chinese consumers are still reluctant to take on additional debt and are instead seeking to reduce their existing liabilities.

Households Pull Back From Debt

Chinese news portal Sina reported on Sept. 20 that banks had been actively promoting the new mortgage option, but prospective buyers remained cautious.

A report by the Chinese media outlet China Times, via Sina, attributed the weak demand to households' growing reluctance to take on debt as China's economy slows.

PBOC data showed that household loans fell by 1.03 trillion yuan ($150 billion) during the first eight months of 2026, according to state-run mouthpiece Xinhua.

The slowdown is particularly pronounced in longer-term household borrowing, which includes mortgages. Such loans increased by 1.17 trillion yuan ($33 billion) during the first half of 2026, according to data from China's Ministry of Commerce.

Another sign of the shift came in April, when repayments of long-term household loans exceeded new loans issued that month. The scale of early repayments reached a record high.

Chinese media Securities Times, in a report carried by Sina, described the trend as Chinese households collectively seeking to "quit" mortgages.

Mike Li, a U.S.-based investment consultant and China expert, told The Epoch Times that the longer mortgage terms do not address the underlying financial pressure facing households.

"The regime is trying to ease borrowers' economic pressure by extending the repayment period, but the pressure is only being postponed and has not actually been reduced," Li said.

The reluctance to take on mortgages comes as China's housing market remains in a prolonged downturn.

Falling home prices create an additional obstacle for households considering a long-term mortgage. Buyers taking on large mortgages face the risk that their homes' values could decline while their outstanding debt remains high.

Li said this could also create risks for banks if borrowers begin to default.

"If a default occurs, when banks dispose of the property, they may face a decline in the property's value, insufficient collateral, increased disposal costs, and a lower recovery rate," he said.

Li said the broader policy response had so far failed to reverse the weakness in the property market or revive consumption.

"The policies introduced by the Chinese Communist Party so far have had very little effect. The property market has not been rescued, and consumption has not improved," he said.

Jon Sun contributed to this report.

Tyler Durden Sun, 09/27/2026 - 21:50

Two-Month China Truce Falls Short Of Expectations As Markets Fade Trump-Xi Summit

Two-Month China Truce Falls Short Of Expectations As Markets Fade Trump-Xi Summit

Donald Trump gave Xi Jinping the full state-visit treatment in Washington, but markets were more interested in what the two leaders did not deliver.

After three days of ceremony, an unusually warm presidential welcome and repeated pledges to stabilize relations between the world's two largest economies, the main economic outcome was a two-month extension of the existing U.S.-China trade truce, pushing its expiration from November 10 to January 10, 2027.

That averted an immediate return to escalation, but fell short of the longer runway many investors had expected.

President Donald Trump, center right, first lady Melania Trump, right, China's President Xi Jinping, center left, and his wife Peng Liyuan watch a silent drill platoon review on the new helipad from the Blue Room Balcony of the White House, Thursday, Sept. 24, 2026, in Washington. (AP Photo/Alex Brandon)

Following the meeting, China's CSI 300 fell 1.7% on Thursday, its worst session in a month, while the Shanghai Composite lost 1.2%. On Friday, with the mainland shut for the Mid-Autumn holiday, the Hang Seng dropped another 1.7% to a two-month low, with technology and AI shares leading the decline. The yuan also gave back part of its pre-summit advance as the dollar strengthened.

The reaction was notable because expectations were hardly euphoric going in. The summit had been billed primarily as an exercise in stabilizing a relationship still divided over tariffs, advanced technology, rare-earth supplies, Taiwan and Iran. Even against that modest bar, the two-month extension came in short: Wall Street had generally been discussing three to six months, while some investors had hoped for a one-year rollover.

Barclays senior China economist Yingke Zhou summed up the meeting as "more signaling, less substance." Zhou's broader point was that Washington and Beijing appeared focused on preventing another breakdown in relations rather than resolving the disputes that produced the truce in the first place.

The Deal Wasn't Nothing

The White House said the two governments formally operationalized their previously announced Boards of Trade and Investment. Under the Board of Trade, officials reached consensus on recommendations for more favorable tariff treatment covering roughly $30 billion of non-sensitive goods in each direction, including U.S. agricultural products and medical devices and Chinese consumer goods. China also committed to importing at least 10 million metric tons of U.S. coal in both 2027 and 2028.

U.S. Trade Representative Jamieson Greer said Friday that the two sides had reached agreements allowing certain products to remain outside future tariff disputes and promised significantly more detail on Monday.

"We're in a managed trade situation," Greer said, adding that the administration would release "a lot more details" about the negotiations.

That means Monday's announcement could materially change the initial assessment of the summit. A detailed list of tariff exclusions, purchase commitments and implementation dates would give businesses something they can actually model.

But the official fact sheet also made clear how much remains unfinished.

Rare earths are the most obvious example. Washington said the two governments "continue to work" on U.S. concerns about shortages of rare earths and other critical minerals - careful language that confirms the supply issue remains unresolved. Chinese shipments of rare-earth magnets to the U.S. had already fallen sharply in August, and Beijing's export-licensing regime continues to give it substantial leverage over Western manufacturers.

There was no broad settlement on advanced semiconductors. No breakthrough on Taiwan. And although the two countries have agreed to establish what the White House calls a "Super Intelligence Dialogue" and an emergency-communication channel, the details remain thin enough that markets have little basis yet for pricing an investment impact.

Rare Earths And Taiwan Are Still There

The rare-earth issue may be the clearest test of whether the current detente has changed the balance of leverage.

China remains dominant in both mining and, more importantly, processing of rare-earth materials, while U.S. officials have complained that deliveries have not fully met earlier commitments. The White House's own language after the summit indicates that Washington is still seeking more reliable shipment levels.

Taiwan is similarly unresolved. Xi pressed Trump during the visit to take a harder line against Taiwanese independence. At the same time, Washington has been weighing another arms package for Taipei worth roughly $14 billion. Secretary of State Marco Rubio said during the visit that delays in arms sales to Taiwan reflect concerns about U.S. weapons production.

Whatever the eventual timing of that sale, the important point for markets is that the summit did not remove Taiwan from the bilateral risk ledger.

The same is true of AI. Both sides agreed to continue talks, including work on an incident-communication channel, but they remain competitors in advanced chips, models and computing infrastructure.

Sixty Days Of Visibility

For companies exposed to U.S.-China trade, January 10 is better than November 10. It gets the current arrangement through the Christmas import season and prevents an immediate reopening of the tariff war.

But sixty days is not much planning horizon for a manufacturer deciding where to build a plant, sign a multiyear sourcing contract or commit billions of dollars in capital.

And the tariff burden has not disappeared. The latest Penn Wharton Budget Model data put the effective U.S. tariff rate on Chinese imports at roughly 23%, compared with about 7% overall. China still faces the highest effective rate among major U.S. trading partners.

That helps explain why investors distinguished between stability and resolution.

There is a constructive side to that. China's export sector has remained remarkably resilient, and keeping the truce intact removes the immediate threat of another tariff shock. U.S.-bound manufacturers, electronics suppliers, appliance makers and auto-parts exporters all benefit from having the deadline pushed into next year.

A Summit Built Around Stability

Trump personally greeted Xi and Peng Liyuan at Joint Base Andrews, an unusual gesture for a visiting head of state. The White House staged a formal arrival ceremony and military flyover, followed by bilateral meetings, a state dinner, tea and a visit to the National Archives. Xi repeatedly called for a stable long-term relationship and said the U.S. and China could avoid the so-called Thucydides Trap of conflict between a rising and established power.

China also revived one of its oldest diplomatic tools: pandas. Beijing agreed to send two giant pandas to Zoo Atlanta. Ping Ping and Fu Shuang arrived in Atlanta on Sunday.

But the composition of the summit showed the limits of the commercial thaw.

The American side brought a who's who of technology and finance, with executives from Nvidia, AMD, OpenAI, Google, Microsoft, Amazon, Meta, Apple, Tesla and major Wall Street firms involved in the broader visit. Xi's official delegation, by contrast, was dominated by government officials rather than Chinese CEOs - a contrast Barclays cited in arguing that Beijing approached Washington primarily as a strategic dialogue rather than a corporate dealmaking exercise.

Washington and Beijing appear to have decided that keeping the relationship inside guardrails is itself valuable. What they have not done is settle the economic and geopolitical disputes inside those guardrails..

What To Watch Monday

First, Greer's trade details. The White House has already disclosed the framework for preferential treatment of about $30 billion in non-sensitive goods. Monday should show how much of that framework is operational - which products qualify, when tariff treatment changes and what purchase commitments accompany it.

Second, mainland equities. China's markets were closed Friday, leaving Hong Kong to absorb the final day of the summit in thin holiday trading. Monday will be the first full onshore session able to react to the completed visit and whatever additional trade details Washington releases.

Third, the yuan. Beijing guided the currency stronger ahead of the summit before allowing some of that move to reverse as the dollar rallied. With the diplomatic event now over, traders will be watching the PBOC's daily fixing for clues about whether authorities still prefer gradual appreciation or are prepared to tolerate more two-way movement.

The Washington summit therefore leaves investors with a peculiar combination: less immediate danger, but few reasons to declare the underlying dispute settled.

Tariffs remain elevated. Rare-earth supplies remain an issue. Taiwan remains unresolved. AI competition remains intact. And the new trade deadline arrives less than four weeks after the leaders are expected to meet for the fourth time this year.

Washington bought another sixty days of stability. What happens inside those sixty days will determine whether it bought anything more.

Tyler Durden Sun, 09/27/2026 - 21:00

Bill Gates Predicts A Billion Deaths Via Evolutionary Event

Bill Gates Predicts A Billion Deaths Via Evolutionary Event

Authored by Steve Watson via Modernity.news,

Bill Gates is back on the Sunday-show circuit spreading doom and predicting a massive reduction in the human population.

In an exclusive Meet the Press interview set to air this weekend, the Microsoft co-founder told Kristen Welker that artificial intelligence is "certainly powerful enough to drive events that... cause a billion deaths" - then used the line to demand federal legislation, law-enforcement monitoring, and an end to industry self-regulation.

Gates is touting AI as a species-level emergency, and calling for handing over total control to politicians and a new class of global inspectors.

Welker put the extinction question to him directly: "Do you believe AI is powerful enough to end all of humanity?"

Gates answered: "AI is certainly powerful enough to drive events that, you know, cause a billion deaths, you know, so even though it's pretty hard to get to 100%, there's never been a weapon as powerful as the combination of people with ill intent using the latest AI tools."

Watch:

"Pretty hard to get to 100 percent." He almost seems disappointed by that.

Gates did not describe a rogue machine deciding to wipe out the species. He framed the threat as people using the newest models as a weapon - then immediately converted that warning into a Washington to-do list.

Asked whether self-regulation was enough, or whether it had to come with legislation, Gates said: "No one thinks self-regulation is enough, so there needs to be legislation passed in Washington. Absolutely. You need law enforcement and the politicians to get into the discussion about what safeguards and monitoring look like and that has to be a required thing and it will be a little bit of overhead for the industry but not a dramatic slowing of what they're doing."

Three days earlier, Gates was on CBS Mornings laying the metaphysical groundwork. Comparisons to past technologies, he said, miss the point. "Most of society is still not aware of how quickly it's moving," he told Gayle King and Norah O'Donnell. "AI is almost an evolutionary event."

He used the same appearance to appeal to President Trump after he called the most extravagant AI-harm claims a "hoax."

Gates said the president is "in the place that everybody else is in, where at first you're like, 'Isn't this just like the technologies of the past?'"

Then came the sales close: "If he wants to get credit for helping the entire world, the AI topic is his best bet. The leader that brings people together there will deserve positive recognition."

Earlier this month, Gates was already calling AI an "alien intelligence," declaring that "no government is nearly as deep on this as they have to be," and floating an international organization built from nuclear inspections, aviation rules, and ozone treaties.

In that press round he reached for a Hollywood script: "There's all sorts of movies where some aliens are coming, and magically the US and China and everybody comes together to solve the problem. AI is kind of like this alien intelligence. It's here, and we better do like it shows in those movies."

On The Times Tech Pod he said industry should not be trusted to police itself: "It's not the role of the industry to self-regulate or understand the whole-of-society impact that comes out of AI." In a late-August essay he wrote that "the transition to the AI era will be one of the most turbulent times in human history" and that "unfortunately, right now, we are not preparing for it."

Ai is the new big bad threat. For years Gates sold net-zero as civilization's last exit. Then the data-center boom needed power, and last October he asserted that climate change "won't lead to humanity's demise."

The scare machine was not retired. It needed a replacement threat big enough for inspectors and "international coordination." AI arrived on cue: jobs, cyberattacks, companions, bioterror, "loss of control."

The entertainment wing ran the same template. Netflix's The AI Doc was pitched internally as "kind of like 'An Inconvenient Truth' or 'The Social Dilemma' for AI." Lab chiefs and "humane tech" voices walked audiences through impending dread.

Anthropic's Dario Amodei called for a slowdown. Sam Altman piled on. Former Anthropic and OpenAI researcher Jacob Coxon quit and said people building the systems "earnestly believe that it could kill us all before the end of the decade."

Trump has already rejected the pause. The doomer chorus wants the opposite: slow the labs that still lead, write rules in Washington that China will not obey, and call the result "safeguards."

While Gates talks extinction, his foundation writes checks. On September 15 the Gates Foundation pledged at least $1 billion over two years to spread AI through education, health, and agriculture - 40 percent tutoring and classroom tools, 40 percent diagnostics and drug discovery, the rest farming advice and the data layer that makes models work outside English. That money sits inside a previously announced $9 billion-a-year spend.

Gates wrote that left to the market, "AI will be designed by and for the richest people in the world," and that choices in "the next 12 to 18 months" will decide who benefits. The good outcome, he added, "won't happen by accident."

Karim Hawi reached for the last failed countdown: "Same guy that said climate change was going to do that but nothing has happened yet?"

TheConspiracyReport called the clip priming - "the AI hoax table has been set" - and warned of a convenient pre-election shock.

Readers can weigh those claims themselves. What does not require a theory is the sequence on tape: invent a body count, declare self-rule insufficient, demand legislation and monitoring, and invite Trump to become the man who "brings people together" with Beijing.

America does not need Gates's alien-invasion summit. It needs the labs here to stay ahead, the rules written by voters rather than foundations, and a hard no to any regime that treats a billion imaginary corpses as the argument for a new police power over code. The last apocalypse did not arrive on schedule. This one is being pre-sold with a clip package and a Sunday booking.

 

* * * FREE SHIPPING!

Tyler Durden Sun, 09/27/2026 - 20:10

TikTok To Pay Alabama At Least $100 Million, Add Teen Limits Before First State Trial

TikTok To Pay Alabama At Least $100 Million, Add Teen Limits Before First State Trial

Authored by Kimberly Hayek via The Epoch Times,

TikTok and its creator ByteDance struck a deal Friday with Alabama that will pay the state at least $100 million and force changes in how teenagers use the app, days before what would have been the first state trial over claims the platform was built to addict minors.

TikTok is so powerful its logo alone can mesmerize children. George Chan/Getty Images

The money is due within 45 days. It can climb to $300 million if certain conditions are met, Alabama Attorney General Steve Marshall's office said. Alabama was set to select a jury on Monday.

"This is a great day for Alabama parents," Marshall said. "Tonight, they can rest easier knowing real protections are in place to shield their children from the dangers of social media addiction. TikTok has agreed to give parents real control over what their kids see and how much time they spend on the app."

The complaint had accused TikTok of designing addictive features, exposing young users to serious mental harms, and misleading the public about safety.

TikTok did not admit those claims in the papers released Friday.

The company did not immediately return a request for comment.

The deal requires teen accounts in Alabama to have a two-hour daily cap, which parents can further shorten. After 15, 60, and 90 minutes of continuous use, the app must interrupt the session, a feature the office called "productive pauses," intended to break endless scrolling.

Teen accounts will be unavailable from midnight to 6 a.m. Messaging and push alerts face extra limits overnight and during school hours. In addition, cosmetic filters are banned for teen users.

The default feed for those accounts is to remain non-personalized, and teen accounts are to be harder for adults to find. Parents get notice of suspicious contacts. Parental controls are supposed to be easier to use.

Last month, a multi-state Meta deal was set to bring Alabama $117 million on similar youth-harm allegations. Earlier, Roblox paid the state $12.2 million and agreed to tighter age checks and chat rules.

The Alabama deal arrives as other fights progress.

On Sept. 10, a Travis County, Texas, judge ruled that TikTok violated the state's consumer protection law by misleading users about tools meant to keep minors from harmful videos. Judge Cory Liu found Restricted Mode did not work as marketed.

Texas Attorney General Ken Paxton said the case now goes to trial next month to set penalties.

"TikTok sacrificed the safety and innocence of children for engagement and numbers, and now they are being held accountable," Paxton said then.

In early August, TikTok moved to settle three confidential teen mental-health suits. Lawyer Joseph VanZardt said written papers still had to be finished.

The plaintiffs - identified only as S.J., 15, of Illinois; P.M.Y., 15, of New Jersey; and K.D.B., 18, of Mississippi - alleged addiction, depression, self-harm and, in two cases, eating disorders. Roughly 3,300 similar suits sit before Los Angeles Superior Court Judge Carolyn Kuhl. Meta, YouTube, and Snapchat still face an October trial calendar.

A March jury in that same court awarded $4.2 million against Meta and $1.8 million against Google in a related individual case. TikTok settled that one before opening statements.

In August, the Justice Department separately announced TikTok and ByteDance would pay $400 million to resolve Children's Online Privacy Protection Act (COPPA) claims. Officials called it one of the largest COPPA recoveries on record. The company did not admit fault.

Tyler Durden Sun, 09/27/2026 - 19:20

Homan Says 157,000 Missing Unaccompanied Immigrant Children Located

Homan Says 157,000 Missing Unaccompanied Immigrant Children Located

Authored by Savannah Hulsey Pointer and Jan Jekielek via The Epoch Times,

Around 157,000 children who crossed the border as unaccompanied minors have been found since the start of the Trump administration while many are still missing, White House border czar Tom Homan told The Epoch Times.

White House border czar Tom Homan after an interview with "American Thought Leaders" in Washington on Sept. 24, 2026. Madalina Kilroy/The Epoch Times

In an interview with senior editor Jan Jekielek for "American Thought Leaders," airing on Sept. 26, he said that just under half a million children were "smuggled" into the United States during the Biden administration.

Homan said officials at the Department of Health and Human Services (HHS) at the time were proud of the fact that children weren't in detention for long.

"They weren't [held] very long, but the problem is they released them quickly because the sponsors weren't properly vetted," he said, and with caretakers not responding to communications or check-ins, that caused the government to lose track of nearly 300,000 of the children.

Homan said that when President Donald Trump asked him to return to the federal government under his second administration, one of the top directives he was given was to address the problem of missing children.

"He asked me to do three things: secure the border, run deportation operations, and find these kids."

The border czar said he was much more optimistic about the first two directives than he was about finding the children, because his team would have to count on the digital footprint of the sponsors, based on information provided by the sponsors.

"We can find you, we can find me. We own homes, we own cars, we have credit cards. We can find us because we all have a digital footprint. Children don't," Homan said.

Some Democrats on Capitol Hill have objected to the treatment of unaccompanied minors after they've been located.

Sen. Ron Wyden (D-Ore.) condemned the current administration in June for plans to deport some of the children back to Mexico.

"You have been entrusted with the care and safety of the children placed within the [Office of Refugee Resettlement] network," Wyden said in a letter to the HHS. "Proceeding with this plan knowingly endangers their lives and violates your duty to these vulnerable children."

When officials began searching for the children, they learned that many of the sponsors had given the wrong information, such as home addresses that turned out to be supermarkets, parking lots, or churches. False names had been used for identification, and locating where the children actually were proved to be a massive undertaking.

Homan told The Epoch Times that of the roughly 157,000 children who have been found, more than 20 have died - some due to natural causes, and others from a drug overdose or as a result of violence.

The work isn't done, however, and he said he intends to find every one of the 140,000 still missing children, even those who have aged out of the system.

"Just because you're 18 and 19 doesn't mean they're not in forced labor or sex trafficking, so we're going to keep running down every one of these leads until we find them," the border czar said.

In 40 years of working at the border Homan has seen many victims of human trafficking, but one in particular broke his heart. He said he'll never forgot a 9-year-old girl who was sexually assaulted while making the journey to the United States years ago: "That little girl's never going to be the same again."

"Illegal immigration is not a victimless crime. You don't come across the border without approval and paying off the cartels," he said. "A lot of women and children are sexually assaulted making that journey."

Last month, HHS announced that the Trump administration had located more than 148,000 unaccompanied illegal immigrant children who had been missing after being released into the care of someone in the United States.

A statement from the Department of Homeland Security last November announced an initiative partnering with local law enforcement to conduct welfare checks on the lost children.

Homan told The Epoch Times that despite the monumental task of finding the still missing children, "We're not giving up."

"President Trump has promised that we're going to look at this until the last day of the administration, and the American people can have my word that we're going to do that."

Tyler Durden Sun, 09/27/2026 - 17:30

FDA Commissioner Nominee Says Every Vaccine On US Market Is Safe, Effective

FDA Commissioner Nominee Says Every Vaccine On US Market Is Safe, Effective

The doctor nominated by President Trump to lead the Food and Drug Administration (FDA) told senators this week that vaccines available in the United States are safe and effective.

Dr. Heidi Overton, the nominee, said that if confirmed, she could use her scientific training and clinical background to describe to the American public what is currently known about products that fall under Food and Drug Administration oversight.

"And what is currently known is that the vaccines that have been approved by the FDA meet the standards for safety and efficacy," she said.

Overton, 37, also endorsed the measles, mumps, and rubella vaccine, saying it is not lethal and that it is the best tool in the public health response to measles outbreaks that are ongoing in the United States.

She said that mifepristone, an abortion pill, was safe and effective because it had been approved by the FDA. Overton wrote in a 2023 article that chemical abortion through products such as mifepristone was "dangerous to women," drawing criticism from Democrats in the Senate.

As Zachary Stieber reports further for The Epoch Times, Overton would take the helm of an agency that has been under acting leadership since Dr. Marty Makary stepped down in May.

While signing an executive order in August that encouraged breaking up the measles combination vaccine, Trump told reporters that the vaccine is possibly "quite lethal" and that separate shots for measles, mumps, and rubella appeared to be "not at all lethal but just very effective."

When asked after the signing, the White House declined to provide any citations for Trump's description of the vaccine.

Leaders in the Make America Healthy Again movement recently called for removing vaccines containing messenger ribonucleic acid (mRNA) technology.

Sen. Bill Cassidy (R-La.), an outspoken vaccine proponent, has been asking people whom Trump nominated to serve in high-level health positions about Trump's comments, as well as other questions about vaccines, during their confirmation hearings before the Senate Health Committee, the panel he chairs. Chris Klomp, selected to be the top deputy to Health Secretary Robert F. Kennedy Jr., recently voiced support for vaccines in response to Cassidy, as did Dr. Nicole Saphier, tabbed to become surgeon general.

Cassidy said on Sept. 24 that Kennedy, whom he voted for, made him guarantees but later backtracked on those promises, citing directives from the president.

Kennedy's department did not return a request for comment.

Cassidy asked Overton how she would handle it if she made guarantees and the president then directed her to go against them.

"I've had robust discussions with the president," said Overton, who was part of Trump's first administration.

"I would give him my best advice, and I would follow the statutory requirements for the role of FDA commissioner regarding individual product determinations for safety and efficacy, and that would be what would guide every decision if confirmed to this role."

Tyler Durden Sun, 09/27/2026 - 12:15

Consumer Credit Stress: What The Data Really Shows

Consumer Credit Stress: What The Data Really Shows

Authored by Lance Roberts via RealInvestmentAdvice.com,

A viral stat claims credit card delinquencies just hit their worst level since 2008. However, the New York Fed’s own data shows the opposite, and the real consumer credit stress is hiding exactly where the headlines aren’t looking.

A number has been making the rounds all year, and it’s misleading. The claim: roughly 13% of credit card balances are 90 days or more past due, the worst since 2008. Here’s the twist. That number is real, and it comes straight from the New York Fed. It just doesn’t mean what the scary charts say it means.

Sorting the real signal from the viral one matters because one of them belongs in your portfolio decisions and the other belongs in the trash.

Where The Scary Number Comes From

Let’s start with the Q2 2026 Household Debt and Credit Report, released August 11. Total household debt actually fell $13 billion on the quarter, a rounding error of 0.1%, to $18.8 trillion. Credit card balances rose $21 billion to $1.26 trillion, up 1.7%. So far, nothing that looks like a crisis.

However, this is the point where you are hit with the delinquency rate that everyone screenshots. The share of card balances 90 days or more past due has climbed from 7.6% in late 2022 to 12.8%. That is a real figure from the Fed’s data, and it’s the source the viral posts were reaching for without knowing it. Here’s the problem with reading it as a crisis. The Fed published a companion piece the same day, and its own economists took the number apart.

Crucially, they draw a very clear distinction between a “stock” measure and a “flow” measure. The stock measure simply counts every delinquent dollar remaining on a credit report, including old charged-off debts that lenders keep reporting for years. The flow measure counts how much debt newly goes bad each quarter. The flow indicates how households are actually doing, and it has been roughly flat since 2024. It rose from 6.93% to 6.97% year over year. That’s not an acceleration. That’s noise.

The obvious question is: “Then why is the stock number climbing?”

The answer is that lenders now report charged-off debt to the bureaus far longer than they used to. From 2004 through 2012, only about 40% of charged-off balances were still reported a year later. By 2024, that figure had doubled to 80%. Strip those stale balances out, and the stock delinquency rate falls right back in line with the flow. As usual, when everyone agrees on something, something else is usually going on. In this case, the crowd agreed on a chart that the people who built it were quietly warning you not to trust. I’ve made the same point before about the gap between what the data says and what the tape feels like, in the consumer sentiment disconnect.

(The “stock” delinquency measure that went viral reads 12.8%, but it counts years of stale charged-off debt. The “flow” of new delinquencies, the honest read on current stress, sits at 6.97% and has been flat since 2024. Source: New York Fed, Q2 2026)

“When the question is ‘how are households doing right now?’ the flow delinquency rates provide a more accurate view of current consumer repayment behavior. By those measures, the pace of credit card delinquency is elevated but has been largely stable since 2024.” – Lee, Mangrum, Scally, Sinha and van der Klaauw, New York Fed Liberty Street Economics

The Consumer Credit Stress That’s Actually Real

Dismissing the meme doesn’t mean the consumer is fine. Parts of the consumer are cracking. The stress is REAL. It just isn’t spread evenly across the system, and the aggregate delinquency chart hides that. Dig below the surface, and you find a household sector splitting in two, with the top half spending comfortably and the bottom half running on fumes.

The savings data gives us the clearest read into what is actually happening. In July, the personal saving rate fell to 3.0% of disposable income, with total personal saving of $712.0 billion, according to the Bureau of Economic Analysis. Put that in context. For most of the decade before the pandemic, households saved 7% to 8% of income. The rate spiked above 16% in 2020 when stimulus landed, and there was nowhere to spend it. It has bled lower ever since. A 3.0% print is near the lowest reading in 20 years.

Notably, a thin savings rate isn’t a crisis on its own. There are plenty of households that carry very little cash and never miss a payment. However, it does change the math on resilience. When the family car breaks down or a parent’s work hours get reduced, a family saving 8% of its income can absorb the hit. Conversely, a family that only saves 3% of its income reaches for a credit card more quickly. That’s the mechanism, and it’s why the delinquency increases we have seen are showing up first among subprime and lower-income borrowers, while prime credit performance has barely moved.

The Two-Speed Consumer, In One Table

The cleanest way to see the gap is to line up the viral claim against what the primary sources report. Almost every week, someone sends me a chart or a screenshot from somewhere, showing the consumer on the edge of collapse. The data, however, continues to tell a more specific story.

That split is the whole story, and it shows up in spending, too. The top 10% of earners now drive 49.2% of all consumer spending, the highest share since Moody’s began collecting data in 1989, up from about 36% three decades ago. Meanwhile, spending by households earning under $175,000 has barely grown in real terms since the pandemic. One consumer is fine. The other is the one filling up the subprime delinquency buckets.

The top decile drives 49.2% of all consumer spending, the highest share since 1989 and up from about 36% three decades ago. The bottom 80% has barely grown their spending in real terms. That’s the two-speed consumer in one picture.- Source: Moody’s Analytics, 2025

“Consumer credit stress is real. It’s just wearing a name tag that says subprime, and the headline chart keeps reading it as systemic.”

Where The Bears Are Right

I readily admit that the bearish case has a valid point. They state that aggregate data lags current realities. Therefore, by the time the Fed’s quarterly report confirms a broad deterioration, the damage is already done. Furthermore, a 3.0% savings rate means the marginal household has no shock absorber left.

If you then layer on a labor market that ran soft through the summer, with June and July payrolls revised down to 31,000 and 21,000 before August rebounded to 162,000, you have the setup for spending to roll over faster than the smoothed data will admit.

Those are all valid points. However, here’s the problem with treating it as today’s reality. It’s a forecast about tomorrow, not a reading of the current tape. The same case was made in 2023 and again in 2024. Each time, behavior beat feelings and spending held firm. I’m reasonably confident the low-end consumer market will continue to deteriorate from here. I’m far less confident it will drag down the aggregate over the next two quarters, because the prime borrower, who does most of the spending, is still in good shape.

What Consumer Credit Stress Means For Investors

So what do you actually do with this information?

  1. Stop trading off the scary screenshot. A K-shaped consumer calls for a scalpel, not a sledgehammer. The businesses exposed to the bottom third of the income distribution, dollar stores, subprime lenders, buy-now-pay-later names, and lower-end restaurants, are where the stress shows up first and hits margins hardest. That’s a real and specific risk you can underwrite.
  2. Respect the split rather than betting the whole book on one side. Higher-end consumer names and companies serving households with intact balance sheets are a different animal. Positioning for a total consumer collapse has been a losing trade for three years running. So has assuming everything is fine. The trade is the divergence itself.
  3. Lastly, keep the real watchlist in front of you. Not the meme number. Watch the savings rate, the subprime delinquency trend, the quarterly New York Fed report, and retailer margin guidance through earnings season. We covered the deeper split between what households say and what they do in our look at the consumer sentiment disconnect, and in the piece on record retail inflows. The through line is consistent. Behavior beats feelings, and primary data beats viral charts.

The bottom line is this. The consumer credit stress story deserves your attention, but only the true version. A 3% savings rate indicates the cushion is thin, and the low end is exposed. The New York Fed data tells you this is a distribution problem, not a solvency crisis, at least for now. The moment the prime borrower starts slipping in the quarterly print, the calculus changes, and that’s the number that will tell you when to lean out.

If this raises questions about how your own portfolio is positioned for a two-speed consumer and a softening labor market, that’s the conversation we have with investors every day. Our process starts with your complete financial picture, not just your investment account. Schedule a complimentary portfolio review, and let’s pressure-test your exposure together.

Questions This Article Answers

Are credit card delinquencies really the worst since 2008? Only by one measure. The New York Fed’s “stock” delinquency rate, which counts all reported balances 90+ days past due, hit 12.8% in Q2 2026. That measure is inflated by old charged-off debt that lenders now report for far longer. The “flow” of new delinquencies, a better read on current stress, has been roughly flat since 2024 at just under 7%.

What’s the difference between stock and flow delinquency? The stock measure is the share of all outstanding balances currently marked delinquent, including stale charged-off debt. The flow measure is the amount of debt that goes bad each quarter. The flow tells you how households are doing right now, and the Fed’s own economists say it’s the more accurate gauge of current repayment behavior.

Is the U.S. consumer actually in trouble? Part of it. The stress is concentrated in subprime and lower-income households, where the 3.0% saving rate leaves no cushion. Prime borrowers, who account for most spending, are still in good shape. It’s a K-shaped consumer, not a system-wide credit event.

What should investors watch instead of the viral chart? The flow delinquency rate, the subprime delinquency trend, the quarterly New York Fed report, the personal saving rate, and retailer margin guidance. Those tell you when the stress is spreading from the low end into the prime borrower, which is the turn that actually matters for portfolios.

Tyler Durden Sun, 09/27/2026 - 11:40

DHS Ends Biden-Era Solicitation Of Donations For Illegal Aliens In Custody

DHS Ends Biden-Era Solicitation Of Donations For Illegal Aliens In Custody

Authored by Catherine Salgado via PJ Media,

Under the Biden administration, Customs and Border Protection (CBP) was asking for and accepting private donations for illegal aliens in federal custody. The Trump administration just realized it had never officially ended that directive, so it did so this week to remove any lingering confusion.

CBP Commissioner Rodney Scott confirmed to Fox News correspondent Bill Melugin on Wednesday that he issued a memo officially axing the policy. Scott offered as an excuse for its creation that the "elevated number of aliens encountered, processed and held in our facilities" during the Biden-Harris era necessitated private supplements to the billions of taxpayer dollars spent on trafficking criminal foreigners into America.

But times have changed, thank goodness.

"This order is no longer needed or appropriate. With the significant decrease in encounters and apprehensions, CBP no longer requires private donations or gifts for distribution to aliens in custody," Scott observed.

"Additionally, this order does not align with the Trump administration's enforcement posture at our borders. For these reasons, I am withdrawing CBP from DHS Delegation 07107, effective immediately."

John K. Tien, Joe Biden's deputy secretary of the Department of Homeland Security, inaugurated the controversial policy in May 2022. CBP told Melugin that agency leadership did not recall that the policy existed until a recent reminder. That's probably partly due to changes in top leadership since Donald Trump took office.

Even the title of the newly terminated policy is so obviously Democrat: "Delegation to Solicit, Accept and Utilize Gifts Related to the Care of Undocumented Noncitizens in CBP and ICE Custody."

Calling illegal alien criminals "undocumented" is a favorite Orwellian term among wokies, as if the aliens innocently forgot to complete some unnecessary paperwork.

Watchdog estimates indicate that the Department of Health and Human Services - responsible for trafficking over 320,000 children - alone spent some $22.6 billion on illegal aliens during the Biden era. In early 2024, Newsweek reported that illegal immigration was costing the U.S. $150.7 billion annually across federal, state, and local governments.

And yet, despite all that, CBP says it still needed supplementation from private funds.

That is the scale of the mass illegal alien invasion of our country during the Biden administration.

Tyler Durden Sun, 09/27/2026 - 10:30

Mamdani: Socialism "Will Absolutely Translate" Nationwide

Mamdani: Socialism "Will Absolutely Translate" Nationwide

Authored by Steve Watson via Modernity.news,

New York City Mayor Zohran Mamdani has stopped pretending his socialist vision is just a local experiment.

On CNN International's Amanpour, the Democratic Socialist was asked whether America is ready to elect people on the hard left - and whether the 2026 midterms will be a referendum not only on President Trump, but on the Democratic Socialists of America.

"I think this will absolutely translate on a national level," Mamdani said.

Amanpour noted that other Democrats still believe national races reward moderates, and that local energy is one thing, but winning the country is another. Mamdani answered by recasting New York's cost-of-living crisis as a national mandate.

"While we are an exceptional city, as the greatest city in the world, we also know that the struggles that New Yorkers are facing are the struggles that working-class Americans are facing across the country," he said.

He continued, "I often say that there's only one majority in this country, it's the working class. And their inability to afford housing, childcare, even public transit, that is something that goes beyond any one city."

Mamdani then pointed to the New Deal and Franklin Roosevelt, arguing that people said the same thing then: it could never work nationally. In his telling, the Democratic Party was once "synonymous with workers" and popular because of it. The implication is obvious. He wants that party back - or rather, a DSA-shaped version of it.

He also claimed New Yorkers care less about how he labels himself than "whether there's room for them in that description," accused House Speaker Mike Johnson of talking about him to dodge "current federal policy," and said "to find ambition in the Democratic Party, we often have to look to history books."

This is the same argument Mamdani has been making since his slate smashed New York's Democratic establishment in June. After candidates he backed knocked out incumbents and seized safe House nominations, he told ABC's Jonathan Karl that a democratic socialist "can get elected anywhere across this country for any position."

He talked then about "a hunger that is not just felt by New Yorkers, but, frankly, by Americans from coast to coast." The June winners - including DSA members Claire Valdez and Darializa Avila Chevalier, plus progressive Brad Lander - ran on tax-the-rich politics, attacks on Israel, and, in several cases, abolishing ICE. In deep-blue New York districts, that was enough.

Republicans have already treated the results as a gift. Johnson said after the sweep: "The Democratic party, the socialists, the Marxists, have nominated some of the most radical candidates to ever run for office, and they're running for Congress. The insurgent left is on the rise."

Mamdani now wants that rise treated as proof the rest of America is waiting for the same program.

A CNN poll in late July found about a third of Democrats and Democratic-leaning adults now identify as democratic socialists. They skew younger. They are more eager to yank the party left. They are nearly twice as likely as other Democrats to want that shift on policy. Nearly half of them would be enthusiastic about a candidate who wants to cut U.S. support for Israel, compared with 20 percent of non-socialist Democrats.

Among those expressing an opinion, nearly all viewed Mamdani and Rep. Alexandria Ocasio-Cortez favorably. Most Democratic-aligned adults said they would at least be "OK" with nominating a democratic socialist. The center of gravity inside the party has moved. Mamdani is not inventing that. He is trying to nationalize it.

Moderate leftists, such as Bill Maher, are warning that the far left has completely taken over the Democratic Party.

"We already know what he is because it's in his own statements and the people he hires," Maher said. He pointed to tenant advocate Cea Weaver, who said "let's elect more communists." Maher's verdict: "Look, this is not like something you have to really figure out. 'Elect more communists.' That's a communist."

"Communism. It's a political philosophy. It's an economic philosophy," Maher added. "You're allowed to believe it. You're allowed to vote for it. Let's just not pretend that that's not what this is."

Americans have already heard what Mamdani thinks the country is. On the 250th anniversary of the United States, the Ugandan-born mayor used the occasion to lecture the nation that gave him office.

"America, in their view, is an arena of supremacy, where only a select few are allowed freedom, where not all are created equal," he said of "the powerful." He claimed it "belongs only to those with the right accent or the right shade of skin." He accused the Trump administration of running a country "that persecutes those seeking asylum."

The rest was a familiar grievance list: hungry children and "the world's first trillionaire," "oligarchs who buy elections," "masked agents terrorizing our streets," ICE that "invades our neighborhoods," health insurers who "exploit the sick," "corporate landlords," and tax dollars spent "on bombs and bailouts."

That is the worldview he now says will "translate." Not just free buses and city grocery stores. A politics that treats immigration enforcement as an invasion and American history as a story of supremacy waiting to be rewritten.

The sales pitch does not run on speeches alone. An investigation this month found City Hall has cultivated a network of nearly 200 online creators to push administration material. Much of it moves through a private Signal group called "NYC Creators Announcements," overseen by Emilia Rowland, City Hall's $175,000-a-year Director of New Media and Cultural Communications. Communications Director Anna Bhar makes $260,000.

The network grew out of the campaign-era Creators4Zohran operation. Columbia Journalism Review did not find creators being paid simply to praise Mamdani. It did find that some influencers in that ecosystem have received taxpayer-funded pay for city advertising and public-messaging campaigns.

This is what "ambition" looks like in Mamdani's Democratic Party: a socialist mayor, a growing DSA bench, a third of Democrats now comfortable with the label, and a taxpayer-adjacent content army to make it sound like common sense.

Mamdani keeps saying there is only one majority in America - the working class. The wager he is making is that those voters want New York's socialist experiment exported. The rest of the country get a vote on that in November.

Tyler Durden Sun, 09/27/2026 - 09:20

Hormuz Oil Flows Rebound To Two-Thirds Prewar Level As Iran's Grip Erodes, Attacks 19 Ships

Hormuz Oil Flows Rebound To Two-Thirds Prewar Level As Iran's Grip Erodes, Attacks 19 Ships

Rory Johnston, a Toronto-based oil analyst and the founder of Commodity Context, an independent oil market research firm, wrote on X this weekend that oil shipments through the Strait of Hormuz have recovered to roughly two-thirds of prewar levels, driven by a surge in Saudi exports. This suggests that Tehran's leverage over the critical maritime chokepoint has eroded.

"Hormuz oil flows can't possibly be above 13 MMbpd bc crude is over $100," Johnston wrote in the post on Saturday, citing Kpler data.

He added, "Brother, if you had told an oil analyst in January that Hormuz flows were still down 7 MMbpd after >200 days of war, with the East-West pipeline hobbled, and oil was ONLY $100 they'd have looked at you like."

Saudi Arabia is driving the recovery. The kingdom's crude exports averaged 5.28 million barrels a day during September's first 23 days, the strongest pace since the conflict began, according to Bloomberg ship-tracking data. About 3.4 million barrels a day were loaded at Gulf ports, reversing the near-total retreat from those terminals earlier in the war.

Courtesy of Commodity Context ... 

"Hormuz is no longer behaving like a chokepoint under effective Iranian control. Hormuz oil flows are now above 13.5 mb/d on a 7-day average," energy analyst Art Berman wrote on X, quoting Johnston's post.

Berman said, "The biggest increase is Saudi Arabia's Gulf loading surge. That changes the strategic picture. Iran can still attack ships, raise insurance costs and make the strait dangerous. But danger is not the same as control. The more oil that clears Hormuz, the more Iran's leverage shifts from blocking flows to merely imposing costs."

Doha-based QNB Financial Services wrote in a note to clients earlier today that "Qatar has ramped up liquefied natural gas tanker traffic through the Strait of Hormuz to the highest in more than two months, a sign it’s becoming more comfortable moving ships through the waterway." 

Hostilities in the narrow strait continued for a second night, according to Bloomberg, citing reports from the semi-official Fars news agency that Iranian armed forces had targeted 19 ships attempting to use authorized routes in the waterway over the preceding 48 hours.

On Saturday morning, President Trump told reporters on the White House lawn that he had rejected an Iranian proposal for a seven-day ceasefire and was open to resuming attacks on the Islamic Republic after the midterms.

By Sunday morning, Bloomberg reported that Iranian Foreign Minister Abbas Araghchi was still waiting for a definitive US response through mediators Qatar and Pakistan, despite Trump's public dismissal of the seven-day plan.

The one major escalation risk that may emerge after the midterms is a renewed US bombing campaign, potentially accompanied by cyber operations against Iranian energy infrastructure such as Kharg Island. For energy markets already strained by a global refining crisis, the post-election period warrants close attention.

Tyler Durden Sun, 09/27/2026 - 08:45

How Many Ministries Of Truth Does One Country Need

How Many Ministries Of Truth Does One Country Need

How many Ministries of Truth does one country need? With Andy Burnham announcing yet another, Prof Michael Rainsborough points out that Britain’s "narratives of decline” arise because the country is, in fact, declining...

Authored by Michael Rainsborough via The Daily Sceptic

In previous essays I have sought to describe the political condition into which Britain and other Western democracies have been drifting by offering various analogies.

At first, I tried being serious. My initial forays drew comparisons with the post-totalitarian societies of late communist Eastern Europe, where the widening distance between official propaganda and observable reality produced an ever-greater institutional effort to enforce the official world view. Later essays pursued the analogy more directly, asking whether Britain was becoming increasingly Sovietised, with some of the same characteristics of a political order in severe decline becoming recognisable. With the supply of serious comparisons running low, and the ironies apparently passing unnoticed, there seemed little left to do except laugh.

Once the absurdities become difficult to describe with a straight face, parody is the logical next step. The difficulty now has been making the exaggeration last until publication. Institutions and bureaucratic inventions for comic effect have acquired real-world counterparts before the joke has had time to land.

WISDOM escapes into the wild

A few weeks back my satirical turn took the form of 'The Spy Who Came in From the Consensus', a John le Carré spoof in which the machinery of the contemporary British state deployed its formidable powers of information gathering to confirm what it already believed. At the centre of the story was WISDOM, the Whole-of-Institution Strategic Data and Outcomes Management system. Created to defend Britain against foreign disinformation, it soon graduated to monitoring "harmful narratives", "problematic nostalgia", declining trust and negative sentiment about immigration. A genuine photograph of migrants arriving on a beach was flagged for "decontextualised visual framing". Requests for original sources and factual corrections became possible indicators of hostile interference.

Having begun by investigating Russia, China and Iran, WISDOM eventually discovered that the most troublesome source of misinformation about Britain was British people's stubborn attachment to feeling British. WISDOM's final diagnosis of the country's deteriorating social cohesion was commendably concise: "The problem isn't the problem, the problem is the people noticing the problem."

On Tuesday, Prime Minister Andy Burnham stood before the United Nations and announced the creation of a National Centre for Information Defence. Barely had WISDOM escaped onto the page before reality began catching up with the satire.

According to Burnham, NCID will detect, attribute and disrupt hostile-state information attacks. He cited Russian bots masquerading as British citizens, fake websites, fabricated reports, forged newspaper branding and covert interference. Most insidious of all, naturally, was the amplification of "far Right narratives". Russia, Burnham said, was creating a narrative of British decline. Britain, he claimed, had surrendered too much ground to those promoting such an account.

Burnham insisted that the "negative" and "corrosive" narrative about life in Britain "bears no resemblance to reality". A few moments later in the very same speech, Burnham described people struggling with the "cost of living", lives that were "not improving", young people outside employment, education or training, widening inequality and a society vulnerable to division. Making life more affordable, he then announced, would lie at the heart of a new "10-year plan" for Britain.

The narrative of decline therefore bears no resemblance to reality, although reality apparently requires a 10-year plan.

Burnham began his speech alleging that Russian agencies had forged BBC branding, faked websites and used bots to "stoke tension", "spread lies" and "play on people's fears". There is nothing inherently implausible about any of this. A fake newspaper article is false. A Russian bot pretending to be Derek from Wolverhampton is not Derek from Wolverhampton. No doubt Russia conducts information operations against its enemies, as does nearly every other major nation. It's part of statecraft. It always has been.

However, contentions about whether Britain is declining, its economy is struggling, its institutions are failing or its social cohesion is deteriorating are not in themselves acts of deception. Arguments about the condition of the country do not become disinformation because somebody in Moscow presses the retweet button. For all the concern about foreign deception operations, Britons are perfectly capable of looking at their country and coming to what the Government perceives as the "wrong" conclusions without Russian assistance.

WISDOM would have understood the problem and known what to do. It would recommend the immediate establishment of a National Centre for Information Defence.

The irony is that Whitehall already has an expanding bureaucracy operating across this field. Britain has units dealing with misinformation, hostile states, strategic communications, cyber interference and influence operations. Having concluded that these arrangements are fragmented and overlapping, Whitehall has reached for its traditional instrument of administrative simplification: another organisation.

Maybe the Russians should be warned that Britain now has so many organisations watching for hostile information that any Kremlin operative attempting to penetrate them risks dying of old age during the induction process.

Why, exactly, does Britain need another one?

The Department of Additional Departments

The case for another organisation becomes less obvious once the existing machinery is examined. Most obviously, there is the National Security Online Information Team, formerly the Counter Disinformation Unit, which already leads the Government's operational response to online information threats. Its remit covers misinformation and disinformation affecting national security and public safety, online narratives and attempts artificially to manipulate the information environment. A foreign power conducting the activities Burnham described at the United Nations would therefore fall comfortably within its field of interest.

Should the threat be more obviously the work of a hostile state, the Joint State Threats Assessment Team within MI5 provides cross-government analysis of hostile-state activity. The Home Office also has its now infamous Research, Information and Communications Unit (RICU), concerned particularly with extremist propaganda and counter-narratives. The National Cyber Security Centre deals with cyber threats, while the Armed Forces possess 77th Brigade and its expertise in what the Army calls "information manoeuvre".

The Foreign Affairs Committee identified the resulting fragmentation in March. Britain's work against foreign disinformation, it concluded, was dispersed across government and insufficiently coordinated. Its proposed remedy was a statutory, public-facing National Counter Disinformation Centre to bring the disparate effort together. The Government initially agreed only to consider the proposal; the committee duly welcomed Burnham's announcement when it came.

The remedy has an unmistakable Whitehall logic. Faced with too many bodies doing related things without sufficient coordination, the Government has created another body. By July, seven ministers were responsible for disinformation, prompting the Foreign Affairs Committee Chair to observe that this meant nobody was responsible for it. NCID will now have the unenviable task of bringing order to the organisations created to bring order to the information environment.

Quite how it will do so remains unclear. Its organisation and powers have yet to be specified, as has the practical meaning of Burnham's promise that it will "disrupt" hostile-state information attacks.

The more consequential question concerns its remit. New bureaucracies acquire officials, definitions, reporting requirements and, sooner or later, things to report. NCID is being created as the Government's language about information threats extends beyond fabricated stories and covert foreign operations towards the stories Britons tell themselves about Britain.

The question is where countering hostile information ends and policing political interpretation begins.

Your narrative has been marked incorrect

A foreign power doesn't have to invent Britain's difficulties. It can select them, exaggerate their significance and distribute them for hostile purposes. None of that alters the underlying facts. If Moscow circulates a photograph of a British pothole, its reasons for doing so have no bearing on whether the pothole exists. Filling it would also deprive the Kremlin of the photograph.

Burnham's description of a narrative of British decline as "corrosive" therefore raises a different question from whether the claims themselves are true. "Corrosive" describes an effect. A hostile actor may assemble the evidence and promote the bleakest possible account of the country, but neither its involvement nor its purpose settles whether that account is false.

Information defence then begins to move beyond establishing what is true and who is responsible for spreading it into judging which conclusions drawn from the facts are damaging. A false claim can be tested; a covert foreign operation can be investigated and attributed. Whether Britain's institutions are failing, its social cohesion is deteriorating or the country is in decline cannot be settled in the same way. These are political judgements made from evidence over which citizens are entitled to disagree.

Disagreement over those conclusions is the ordinary stuff of politics. Governments marshal statistics, advertise successes, blame their predecessors and assure the country that recovery is under way; oppositions inspect much the same landscape and announce national ruin. Newspapers offer further diagnoses, while citizens remain obstinately free to believe whichever account best accords with what they can see around them. None of this requires an official referee to determine which interpretation of Britain has passed the national resilience test.

A foreign power can promote an account of British decline for hostile purposes without making that account either true or false. Russian propagandists can describe Britain as declining for hostile purposes; a Briton can reach the same conclusion after waiting six weeks for a doctor's appointment. That they reach the same conclusion proves nothing about whether it is correct. Still less does Russian endorsement render it false. Otherwise, any genuine grievance can acquire the taint of disinformation once Moscow notices it.

Conflating hostile provenance with the truth of what is being said changes the purpose of information defence. A government concerned about foreign manipulation has every reason to identify covert networks, expose fabricated material and attribute hostile operations. Once attention turns to the political conclusions citizens draw from genuine conditions, however, the object has changed. Information defence is no longer simply protecting the public from deception. It is deciding which descriptions of reality the public should distrust.

When dissent becomes a security problem

Britain has some experience of what happens when official categories created to identify security threats expand into lawful political argument. William Shawcross's Independent Review of Prevent found that RICU analysis intended to identify the extreme Right had extended into centre-Right debate, populism and lawful Right-leaning commentary with no meaningful connection to terrorism. Mainstream conservative books appeared among supposedly significant ideological texts, while a former Conservative minister, Sir Jacob Rees-Mogg, and writer Douglas Murray surfaced in analysis of figures associated with far-Right sympathetic audiences.

The Government accepted Shawcross's recommendation to reset the threshold, acknowledging that RICU had exceeded its remit by failing to distinguish clearly between mainstream conservative commentary and the extreme Right.

The problem that Shawcross identified was that once lawful political dissent enters analysis intended to assess security threats, monitoring dissent becomes part of the work of institutions created to protect the state. The distinction between identifying threats and scrutinising political disagreement begins to blur.

The National Security Online Information Team provides another example. Big Brother Watch reported, on the basis of subject access requests and other material it obtained, that government counter-disinformation systems had recorded or analysed statements by MPs, journalists, academics and campaigners. Those caught in the machinery included MPs David Davis and Caroline Lucas and journalists Peter Hitchens and Julia Hartley-Brewer, whose comments encompassed lockdown policy, vaccine passports and other contentious political questions. Public statements are obviously available for governments to read; the question is why lawful political criticism should enter an analytical system concerned with misinformation in the first place.

The concern does not depend upon NCID itself acquiring a wider remit. The day after its announcement, Chi Onwurah MP, Chair of the Commons Science and Technology Committee, welcomed the new centre but pointed out that it would not address domestic dis- and misinformation. She urged the Government to revisit her Committee's recommendations, including measures against the algorithmic amplification of "legal but harmful content". NCID is intended to counter hostile-state information attacks, but its creation sits within a wider policy debate about government intervention in the information environment that already encompasses domestic speech and lawful content considered harmful.

RICU, NSOIT and NCID have different purposes, and while Chi Onwurah was not proposing that NCID should assume responsibility for domestic speech, the problem exposed by RICU is clear: once the state moves beyond identifying unlawful conduct or demonstrably false information, officials must make judgements about the meaning and effects of lawful expression. A "hostile-state information attack" identifies an adversary and an activity. Burnham's "corrosive narrative" introduces a judgement about the effect an account of Britain has. 'Legal but harmful content' places lawful expression itself within the field of possible intervention. The question therefore ceases to concern only what hostile states are doing to Britain. It extends to which lawful ideas circulating among Britons the state considers harmful.

Reality has failed to meet Government expectations

The late-stage communist experience in Eastern Europe becomes more instructive at the point where the discrepancy between official claims and observable conditions became a political problem in its own right. Bad news could be dismissed as hostile propaganda, dissidents accused of blackening the reputation of the state and foreign broadcasters jammed because they supplied information that contradicted the official account. The worse conditions became, the greater the effort required to protect the state's description of them. Humour acquired much of its political force from the same discrepancy: people needed no elaborate theory of government when they could compare what they were being told with what they could see.

Western governments now parrot the bureaucratic language of resilience, information integrity, harmful narratives, strategic communications and protecting the information environment. A failure of government can therefore produce a second problem alongside the failure itself: people notice what has gone wrong, draw conclusions from it and lose confidence in the institutions responsible.

Fixing the conditions that produce discontent is harder. Hospital waiting lists have to be shortened, houses built, infrastructure renewed, living standards raised and immigration brought under political control if that is what governments have promised. Fraying social cohesion cannot be repaired by a communications strategy. These things require choices, money, administrative competence and, in some cases, a willingness to confront interests that benefit from the status quo. Explaining that hostile actors are exploiting public anger about them only requires a strategy, a communications team and a meeting.

Once governments become concerned with the conclusions people draw from their failures, political discontent itself begins to acquire the characteristics of a security problem. Declining trust becomes vulnerability to manipulation, anger at political failure becomes an opportunity for hostile actors, and pessimism about the country becomes a "corrosive" narrative against which society must be made resilient.

The danger is always that government starts devoting as much ingenuity to managing the consequences of failure as to correcting its causes. If people believe their country is declining, government can devote greater effort to persuading them that they have misunderstood what they are seeing.

Alternatively, it could actually try to give them less decline to notice.

The Ministry of Too Many Ministries

George Orwell gave us the forbidding image of the Ministry of Truth, a single institution imposing the official version of reality. Terry Gilliam's 1985 dystopian film Brazil offered a more recognisably bureaucratic version of authoritarianism: a world of forms, malfunctioning computers, incomprehensible departments and officials arguing over which department was responsible for what. The boot stamping on the human face had become entangled in an interdepartmental dispute over who was authorised to wear it.

Britain's information-security machinery has acquired something of the same bureaucratic character. Responsibility for hostile states, misinformation, extremist communications, cyber threats and information operations is already distributed across a collection of units, teams, agencies and military organisations, with NCID now joining them. Somewhere inside Whitehall there must be an official whose job is to know which acronym is protecting us from which other acronym's definition of a harmful narrative.

The British road to authoritarianism was never likely to feature torchlight parades. A cross government steering committee was always more plausible, followed by a consultation exercise, an independent review and a procurement contract large enough to require another independent review. If freedom is finally phased out, there will presumably be a mandatory feedback questionnaire.

Adding a National Centre for Information Defence to an already crowded institutional field brings another remit, another set of responsibilities and another definition of the threat. As responsibilities overlap, accountability becomes harder to locate: one department collects, another assesses, another coordinates and another arrives to coordinate the coordination.

Reality has been referred for review

The problem for information defence begins when Britain's adversaries start telling the truth. A hostile purpose does not make truthful information false, and foreign amplification does not invalidate conclusions Britons draw from conditions they can see for themselves. Once government becomes concerned with those conclusions as well as the truth of the information from which they are drawn, information defence starts to acquire a different purpose.

That was the absurdity behind WISDOM. Three weeks later, the Government unveiled NCID.

The danger lies in the steady expansion of what government considers an information problem. Declining trust becomes a question of resilience, political disaffection a vulnerability to hostile influence and criticism of national decline a corrosive narrative. Eventually the state is concerned not only with whether information is true, but with what people conclude from it.

A free society leaves that judgement to its citizens. Governments can counter lies, expose foreign manipulation and prosecute unlawful conduct. They cannot expect a monopoly over the interpretation of reality, especially when their account of the country conflicts with what people can see for themselves.

And if the discrepancy becomes sufficiently absurd, some people will laugh. Others will decide to do something about it.

Michael Rainsborough is Professor of Strategic Theory and Director of the Centre for Future Defence and National Security, Canberra.

Tyler Durden Sun, 09/27/2026 - 08:10

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