Zero Hedge

Governments Don't Like It When We Gather Without Their Permission

Governments Don't Like It When We Gather Without Their Permission

Authored by J.B. Shurk via American Thinker,

Freedom of association is under attack...

There are a number of ways in which Western governments are waging war against their citizens.  The United Kingdom, the European Union, Canada, Australia, New Zealand, and leftists in the United States do not believe in free speech.  These Western governments also spy on their citizens without warrants or probable cause.  They have transformed their court systems into ideologically-partisan dictatorships that impose rulings based upon feelings and “political correctness,” rather than black-letter law and self-restraint.  An offense that often gets overlooked, however, is Western governments’ infringement of citizens’ freedom of association.

Freedom of association is our natural, God-given right to meet with likeminded people, discuss ideas, express ourselves, and promote our mutual interests.  As with freedom of speech, it is fundamental to any notion of liberty.  Respect for freedom of association is the bedrock for religious freedom, freedom of conscience, communal identity, and national self-determination.

Countries are born when people of common ancestry, language, history, and customs choose to work together and defend their way of life.  Towns spring up when likeminded people settle and develop a region together.  Religious congregations grow through common worship.  Schools, skilled trade unions, clubs, sports leagues, and civic organizations of all types are formed when people come together to pursue similar interests and advance shared ideas.

At its heart, freedom of association respects human beings’ natural inclination to cooperate with others to build something together that would not be possible for any one person to build alone.  As a voluntary commitment to pursue a group’s common aims, it is the collective expression of each individual’s personal liberty.

As with all God-given rights and liberties, government power (or State authority) is the greatest threat to freedom of association.  When governments prevent people from discussing ideas, worshiping together, working together, or pursuing common interests, the State is using its monopoly on the lawful use of force to infringe citizens’ inalienable rights.

What we see across the West is the bureaucratic State imposing its political will in defiance of the collective will of citizens.

Perhaps the most glaring problem of the last several decades has been Western governments’ refusal to secure their national borders.  There is no more natural political association than a nation state’s citizenry.  Over centuries and millennia, tribes of similar peoples came together to protect their lands and resources from foreign invasion, while promoting domestic order, safety, and peace.

The rule of law traces its origin to common customs, personal duties, social obligations, religious convictions, and beliefs.  Both political philosophers and ordinary people with common sense tend to define a government’s foremost obligations to include two complementary tasks: (1) to secure territory from invasion and (2) to promote the common law.  Governments that successfully perform these duties advance their citizens’ natural freedoms, general welfare, and domestic peace.

By opening up their borders and inviting millions of foreigners to take over parts of their nations, Western governments have undermined their own citizens’ self-determination.  They have directly attacked citizens’ freedom of association in the context of forming nation states.  These governments have effectively destroyed the natural associations formed by generations of Westerners over many centuries.  Because respect for the rule of law originates with common customs and beliefs, the introduction of foreign populations (who have no interest in assimilating) immediately erodes domestic safety and peace.  Western governments betray their citizens twice: First, they fail to secure their territories from invasion. Second, they make domestic tranquility an impossibility.

But attacks on Westerners’ freedom of association go much further than open borders.  Because Western governments are clearly conspiring to facilitate mass migration without the consent of their respective citizenries, these governments are particularly invested in preventing their peoples from resisting the invasion of their lands.  In order to silence public dissent, governments have chosen to abrogate citizens’ natural freedom to assemble together and protest their governments’ criminality.  We see this taking many different forms.  In Europe, political parties that seek to secure borders and limit immigration are designated “right-wing,” “fascist,” “nationalist,” and “threats to national security.”  Those last two insults are peculiar contradictions; Europeans who wish to protect their nations are simultaneously branded “threats” to the nation state.  In the United States, any voter who supports President Trump’s border security policies risks being harassed online, de-banked from financial institutions, fired from jobs, and targeted by Democrat prosecutors.  In both the Old and New Worlds, the freedom of citizens to work together to fight their governments’ dangerous open borders policies is under constant attack.

Mass migration, however, is only one of many government policies that have been deemed so “sacrosanct” that citizens are not allowed to organize against them.  Western governments continue to threaten and prosecute Christians who seek to end government-sanctioned murder of unborn babies.  Under the Biden administration, the FBI placed concerned parents on domestic terror watchlists for publicly opposing “transgender” indoctrination in schools.  Across the West, pro-family organizations that encourage strong marriages between one man and one woman are either officially or unofficially identified as “hate groups.”

The Southern Poverty Law Center in the United States has made a fortune over the years falsely acting as an authority on what kinds of public associations should be promoted and which should be condemned.  While celebrating Black Lives Matter as a civil rights group (even though its member have caused billions of dollars in property damage and left dozens of unsolved murders across the country), the SPLC routinely designates conservative organizations and publications as threats to civil rights — designations that have prompted illegitimately-predicated law enforcement investigations, IRS scrutiny, censorship, and de-banking.

During Western governments’ COVID totalitarianism, freedom of association was effectively eliminated.  Friends and families were not allowed to celebrate birthdays or comfort dying loved ones.  Workers were not allowed to make a living.  Congregations were not allowed to attend church services.  Students were not allowed to learn together.  Athletes were not allowed to compete against each other.  Clubs were not allowed to operate.  Civic organizations were shut down.  Online dissent was censored.  Medical researchers who opposed lockdowns, mask mandates, and forced experimental injections were denied any opportunity to work together.  Western governments essentially outlawed people from associating together and sharing their experiences and opinions.  And they prohibited freedom of assembly unless that assembly was part of the violent and destructive network of Antifa and Black Lives Matter domestic terrorists intent on burning down parts of major cities.

Today, we see freedom of association under constant attack in two separate public domains: (1) the local community and (2) the online community.

During Joe Biden’s presidency, his administration transplanted over ten million foreign nationals into unsuspecting towns across the United States.  In the United Kingdom, some small villages now have six migrant men to every local woman.  After Spanish authorities did nothing to prevent the invasion of Ceuta, foreigners have destroyed the small enclave in a matter of days.  This unnatural phenomenon is occurring in every corner of the West.  The common feature is that Western governments show outright disdain for the self-determination of local communities.

Likewise, Big Tech continues to work hand in glove with Western governments to shadow-ban, demonetize, and outright censor any associations of people opposed to official government policy.  Western governments claim these attacks on free speech and freedom of association are necessary to combat “disinformation,” promote online safety, and protect so-called “Western values.”  But the values that Western governments are committed to securing are not Western values at all; they are shameless infringements of Western citizens’ natural, God-given rights and liberties.

When governments prevent people from choosing their next-door neighbors and online friends, they target the essence of personal freedom.  Such abuse constitutes an attack on freedom of association and a war on Western citizens.

Tyler Durden Wed, 08/19/2026 - 22:35

Arrest Warrants Issued For 6 DC Cops Accused In $440K Overtime Fraud

Arrest Warrants Issued For 6 DC Cops Accused In $440K Overtime Fraud

A D.C. Superior Court judge signed arrest warrants on August 18, 2026, for six current and former members of the Metropolitan Police Department's Fifth District, accusing them of fraudulently claiming overtime and regular-duty hours they did not work in 2024. The warrants target Peter Sheldon, Frantz Fulcher, Thomas Krmenec, Bernadette Richardson, Dorrie Smith Cleere, and Johnnie Dyer.

The six face charges of first-degree fraud, first-degree theft, forgery, and uttering (knowingly passing off a forged or fraudulent document as genuine). U.S. Attorney for the DC Jeanine Pirro announced the action, stating: "Every day, we rely on law enforcement to uphold the public's trust. These MPD members betrayed that trust by scheming to collect unearned, undeserved income, costing the taxpayers hundreds of thousands of dollars. They will be held accountable, and my office remains focused on rooting out fraud and protecting the American taxpayer."

According to an announcement from D.C. Attorney General Brian L. Schwalb's office, the scheme cost District taxpayers $441,137 in fraudulent pay during 2024 alone. The individuals and alleged amounts are:

  • Former Sergeant Frantz Fulcher: $174,915.39
  • Officer Thomas Krmenec: $89,478.00
  • Officer Dorrie Smith Cleere: $87,397.65
  • Former Senior Police Officer Bernadette Richardson: $43,351.68
  • Johnnie Dyer (civilian): $27,721.59
  • Former Lieutenant Peter Sheldon: $18,272.72

Prosecutors say the defendants, assigned to the Fifth District Administrative Office, submitted false claims through MPD's Timesheet Manager Application. Methods allegedly included claiming overtime while physically outside the District of Columbia (including during domestic and international travel), while on annual leave, forging supervisory signatures on authorization forms, and using administrative positions to facilitate fraudulent processing and approvals. Some also allegedly claimed compensation while engaged in secondary employment.

Investigators reconstructed activities using a wide array of independent data sources: body-worn camera footage, radio and GPS records, cell-site location data, cellular toll records, license plate reader data, annual leave and travel records, emails, network data, access logs, personnel files, and overtime documentation. These records demonstrated repeated and deliberate falsification. Collectively, the six submitted more than 11,000 hours and were paid over $935,000 in 2024; investigators determined roughly half of those hours - about 5,618 - were fraudulent.

The Metropolitan Police Department's Internal Affairs Division initiated the probe after spotting irregularities, including unusually high overtime volumes and inconsistencies with verification data. The case is being prosecuted by Special Assistant U.S. Attorney Jeremy Morris, on detail from the Office of the Attorney General for the District of Columbia. Due to jurisdictional limits under the Home Rule Act, adult felony prosecutions of this type are handled by the U.S. Attorney's Office, with OAG attorneys serving in a supporting SAUSA capacity.

Attorney General Schwalb said: "These six officers abused their positions of power, exploiting the District and the residents they took an oath to serve and protect. No one is above the law, especially those trusted with enforcing it." As of Tuesday afternoon, a source told ABC affiliate WJLA that at least three of the six - Officers Smith Cleere and Krmenec, and Former Senior Police Officer Richardson - were in custody; warrants for Fulcher and Sheldon were executed Wednesday, according to court documents cited by the Washington Examiner.

Tyler Durden Wed, 08/19/2026 - 22:10

Arrest Warrants Issued For 6 DC Cops Accused In $440K Overtime Fraud

Arrest Warrants Issued For 6 DC Cops Accused In $440K Overtime Fraud

A D.C. Superior Court judge signed arrest warrants on August 18, 2026, for six current and former members of the Metropolitan Police Department's Fifth District, accusing them of fraudulently claiming overtime and regular-duty hours they did not work in 2024. The warrants target Peter Sheldon, Frantz Fulcher, Thomas Krmenec, Bernadette Richardson, Dorrie Smith Cleere, and Johnnie Dyer.

The six face charges of first-degree fraud, first-degree theft, forgery, and uttering (knowingly passing off a forged or fraudulent document as genuine). U.S. Attorney for the DC Jeanine Pirro announced the action, stating: "Every day, we rely on law enforcement to uphold the public's trust. These MPD members betrayed that trust by scheming to collect unearned, undeserved income, costing the taxpayers hundreds of thousands of dollars. They will be held accountable, and my office remains focused on rooting out fraud and protecting the American taxpayer."

According to an announcement from D.C. Attorney General Brian L. Schwalb's office, the scheme cost District taxpayers $441,137 in fraudulent pay during 2024 alone. The individuals and alleged amounts are:

  • Former Sergeant Frantz Fulcher: $174,915.39
  • Officer Thomas Krmenec: $89,478.00
  • Officer Dorrie Smith Cleere: $87,397.65
  • Former Senior Police Officer Bernadette Richardson: $43,351.68
  • Johnnie Dyer (civilian): $27,721.59
  • Former Lieutenant Peter Sheldon: $18,272.72

Prosecutors say the defendants, assigned to the Fifth District Administrative Office, submitted false claims through MPD's Timesheet Manager Application. Methods allegedly included claiming overtime while physically outside the District of Columbia (including during domestic and international travel), while on annual leave, forging supervisory signatures on authorization forms, and using administrative positions to facilitate fraudulent processing and approvals. Some also allegedly claimed compensation while engaged in secondary employment.

Investigators reconstructed activities using a wide array of independent data sources: body-worn camera footage, radio and GPS records, cell-site location data, cellular toll records, license plate reader data, annual leave and travel records, emails, network data, access logs, personnel files, and overtime documentation. These records demonstrated repeated and deliberate falsification. Collectively, the six submitted more than 11,000 hours and were paid over $935,000 in 2024; investigators determined roughly half of those hours - about 5,618 - were fraudulent.

The Metropolitan Police Department's Internal Affairs Division initiated the probe after spotting irregularities, including unusually high overtime volumes and inconsistencies with verification data. The case is being prosecuted by Special Assistant U.S. Attorney Jeremy Morris, on detail from the Office of the Attorney General for the District of Columbia. Due to jurisdictional limits under the Home Rule Act, adult felony prosecutions of this type are handled by the U.S. Attorney's Office, with OAG attorneys serving in a supporting SAUSA capacity.

Attorney General Schwalb said: "These six officers abused their positions of power, exploiting the District and the residents they took an oath to serve and protect. No one is above the law, especially those trusted with enforcing it." As of Tuesday afternoon, a source told ABC affiliate WJLA that at least three of the six - Officers Smith Cleere and Krmenec, and Former Senior Police Officer Richardson - were in custody; warrants for Fulcher and Sheldon were executed Wednesday, according to court documents cited by the Washington Examiner.

Tyler Durden Wed, 08/19/2026 - 22:10

S.Korea Reaffirms Push For Military Independence After Trump Announced Scaled-Back Drills

S.Korea Reaffirms Push For Military Independence After Trump Announced Scaled-Back Drills

Authored by Dave DeCamp via AntiWar.com,

South Korean President Lee Jae Myung has reaffirmed his push for South Korea to regain independent control of its military from the US after President Trump announced the scaling back of joint US-South Korean military drills taking place this week.

The US has had wartime operational control of South Korea’s military since the Korean War, which technically never ended. Combat was halted by a 1953 armistice, but the two sides never signed a formal peace treaty.

South Korean President Lee Jae Myung, Pool via Reuters

South Korea took peacetime operational control, or OPCON, of its military in 1994, but the US still holds wartime OPCON. Lee previously committed to regaining wartime OPCON by the end of his term in 2030, which he reaffirmed at a cabinet meeting on Tuesday.

"A strong alliance makes the foundation of security stronger, and strengthening our own capabilities increases our value and necessity as an ally," Lee said, according to The Guardian.

Also on Tuesday, Wi Sung Lac, Lee’s national security advisor, said that South Korea remained in close coordination with the US regarding joint military exercises.

"Based on the strong South Korea-US alliance, our government has been continuing coordination with the US side on combined exercises and drills between South Korea and the US," Wi said, according to the YONHAP News Agency.

Trump announced on Sunday that he ordered US War Secretary Pete Hegseth to "substantially reduce" Ulchi Freedom Shield, major joint US-South Korean war games that began on Monday, though it’s unclear if they are being reduced in any significant way.

The US president said he took the step based on his "very good relationship" with North Korean Leader Kim Jong Un, whom he met with three times during his first term.

Lee’s office responded by saying it hoped that relationship would lead to "meaningful dialogue" and "discussions aimed at advancing peace and stability on the Korean Peninsula."

Pyongyang has meanwhile downplayed the Trump overture and has not acknowledged any new contacts...

While Trump has framed his action as some sort of punishment over South Korea’s lack of support for the Iran war, it aligns with the agenda President Lee has been attempting to pursue. Just one day before Trump’s announcement, Lee proposed direct talks with North Korea.

Tyler Durden Wed, 08/19/2026 - 21:45

S.Korea Reaffirms Push For Military Independence After Trump Announced Scaled-Back Drills

S.Korea Reaffirms Push For Military Independence After Trump Announced Scaled-Back Drills

Authored by Dave DeCamp via AntiWar.com,

South Korean President Lee Jae Myung has reaffirmed his push for South Korea to regain independent control of its military from the US after President Trump announced the scaling back of joint US-South Korean military drills taking place this week.

The US has had wartime operational control of South Korea’s military since the Korean War, which technically never ended. Combat was halted by a 1953 armistice, but the two sides never signed a formal peace treaty.

South Korean President Lee Jae Myung, Pool via Reuters

South Korea took peacetime operational control, or OPCON, of its military in 1994, but the US still holds wartime OPCON. Lee previously committed to regaining wartime OPCON by the end of his term in 2030, which he reaffirmed at a cabinet meeting on Tuesday.

"A strong alliance makes the foundation of security stronger, and strengthening our own capabilities increases our value and necessity as an ally," Lee said, according to The Guardian.

Also on Tuesday, Wi Sung Lac, Lee’s national security advisor, said that South Korea remained in close coordination with the US regarding joint military exercises.

"Based on the strong South Korea-US alliance, our government has been continuing coordination with the US side on combined exercises and drills between South Korea and the US," Wi said, according to the YONHAP News Agency.

Trump announced on Sunday that he ordered US War Secretary Pete Hegseth to "substantially reduce" Ulchi Freedom Shield, major joint US-South Korean war games that began on Monday, though it’s unclear if they are being reduced in any significant way.

The US president said he took the step based on his "very good relationship" with North Korean Leader Kim Jong Un, whom he met with three times during his first term.

Lee’s office responded by saying it hoped that relationship would lead to "meaningful dialogue" and "discussions aimed at advancing peace and stability on the Korean Peninsula."

Pyongyang has meanwhile downplayed the Trump overture and has not acknowledged any new contacts...

While Trump has framed his action as some sort of punishment over South Korea’s lack of support for the Iran war, it aligns with the agenda President Lee has been attempting to pursue. Just one day before Trump’s announcement, Lee proposed direct talks with North Korea.

Tyler Durden Wed, 08/19/2026 - 21:45

Amazon 'Prime Air' To Expand Drone Delivery To Nearly 500 US Cities This Year

Amazon 'Prime Air' To Expand Drone Delivery To Nearly 500 US Cities This Year

Amazon's Prime Air drone delivery service, first teased by Jeff Bezos in a 2013 60 Minutes interview as a way to get packages under 5lbs to customers in 30 minutes or less, represents the broader push toward autonomous aerial last-mile logistics that could bypass traffic and cut delivery times dramatically. 

After years of regulatory hurdles with the FAA, technical iterations, and limited trials, the service has matured into a commercial offering using the MK30 drone, which hovers to drop packages.

A major breakthrough came in 2024, when the Federal Aviation Administration (FAA) granted Amazon a waiver allowing its drones to fly beyond the visual line of sight of their operators, and has already completed hundreds of thousands of deliveries in 2026 across 11 sites in seven states. 

Today Amazon announced plans to expand it to nearly 500 US cities and towns by year-end - a roughly sixfold increase - bringing ultrafast options (as quick as 30 minutes) to tens of millions more customers in places like the Chicago, Atlanta, Cleveland, Syracuse, and Boise metro areas.

The drones will primarily operate in suburban areas, away from skyscrapers and major airports that could complicate operations.

Amazon describes the aircraft as “highly autonomous,” with onboard cameras and sensors for navigation, obstacle detection, and safe delivery.

The cameras do not transmit a live video feed, according to the company.

The company also sought to address the potential concern about noise.

“During drop-off, the sound level is below that of an idling delivery truck parked curbside and lasts about 30 seconds,” Amazon said.

Someone standing outside may hear a sound “comparable to a window fan on low” as the drone arrives, while people indoors may not hear it at all, the company added.

Prime Air delivery is free for Prime members on orders of at least $50, but orders below that threshold carry a $2.99 delivery fee, while customers without a Prime membership are charged $4.99.

The plan will intensify the battle between Amazon and Walmart to provide consumers with the fastest delivery times.

Both giants rely on a mix of drones and drivers to deliver everything consumers have ordered.

The goal is not necessarily about cutting costs by replacing drivers and trucks - and drones that can only carry one package at a time would have a hard time doing that. But instead, these companies are using drones as one tool to help keep customers happy with quicker deliveries, banking on a faster delivery system attracting more shoppers.

“It’s still an experiment. It’s still in test and learn mode,” said Sucharita Kodali, who is a retail analyst with Forrester.

However, it's not all instant utopian dreams as The Epoch Times reports that the program also faces safety scrutiny following recent incidents.

In October 2025, two Amazon drones collided with a crane in Tolleson, Arizona, prompting separate investigations by the National Transportation Safety Board and the FAA.

Another FAA investigation was opened last November after an Amazon drone struck and severed an internet cable while ascending from a customer’s yard in Waco, Texas.

All three investigations are ongoing.

Tyler Durden Wed, 08/19/2026 - 21:20

Amazon 'Prime Air' To Expand Drone Delivery To Nearly 500 US Cities This Year

Amazon 'Prime Air' To Expand Drone Delivery To Nearly 500 US Cities This Year

Amazon's Prime Air drone delivery service, first teased by Jeff Bezos in a 2013 60 Minutes interview as a way to get packages under 5lbs to customers in 30 minutes or less, represents the broader push toward autonomous aerial last-mile logistics that could bypass traffic and cut delivery times dramatically. 

After years of regulatory hurdles with the FAA, technical iterations, and limited trials, the service has matured into a commercial offering using the MK30 drone, which hovers to drop packages.

A major breakthrough came in 2024, when the Federal Aviation Administration (FAA) granted Amazon a waiver allowing its drones to fly beyond the visual line of sight of their operators, and has already completed hundreds of thousands of deliveries in 2026 across 11 sites in seven states. 

Today Amazon announced plans to expand it to nearly 500 US cities and towns by year-end - a roughly sixfold increase - bringing ultrafast options (as quick as 30 minutes) to tens of millions more customers in places like the Chicago, Atlanta, Cleveland, Syracuse, and Boise metro areas.

The drones will primarily operate in suburban areas, away from skyscrapers and major airports that could complicate operations.

Amazon describes the aircraft as “highly autonomous,” with onboard cameras and sensors for navigation, obstacle detection, and safe delivery.

The cameras do not transmit a live video feed, according to the company.

The company also sought to address the potential concern about noise.

“During drop-off, the sound level is below that of an idling delivery truck parked curbside and lasts about 30 seconds,” Amazon said.

Someone standing outside may hear a sound “comparable to a window fan on low” as the drone arrives, while people indoors may not hear it at all, the company added.

Prime Air delivery is free for Prime members on orders of at least $50, but orders below that threshold carry a $2.99 delivery fee, while customers without a Prime membership are charged $4.99.

The plan will intensify the battle between Amazon and Walmart to provide consumers with the fastest delivery times.

Both giants rely on a mix of drones and drivers to deliver everything consumers have ordered.

The goal is not necessarily about cutting costs by replacing drivers and trucks - and drones that can only carry one package at a time would have a hard time doing that. But instead, these companies are using drones as one tool to help keep customers happy with quicker deliveries, banking on a faster delivery system attracting more shoppers.

“It’s still an experiment. It’s still in test and learn mode,” said Sucharita Kodali, who is a retail analyst with Forrester.

However, it's not all instant utopian dreams as The Epoch Times reports that the program also faces safety scrutiny following recent incidents.

In October 2025, two Amazon drones collided with a crane in Tolleson, Arizona, prompting separate investigations by the National Transportation Safety Board and the FAA.

Another FAA investigation was opened last November after an Amazon drone struck and severed an internet cable while ascending from a customer’s yard in Waco, Texas.

All three investigations are ongoing.

Tyler Durden Wed, 08/19/2026 - 21:20

"Doom Loop" Engaged: US Debt Hits $40 Trillion As Treasury Enters The Endgame

"Doom Loop" Engaged: US Debt Hits $40 Trillion As Treasury Enters The Endgame

It took the US 200 years to reach its first $1 trillion in debt. It took 95 days to add its last.

After several weeks of build up, today the Treasury announced that total public debt surpassed $40 trillion for the first time, after jumping by over $60 billion in one day, and has now surged by $1 trillion in just over three months, and by a third of the total in less than five years, as US lawmakers continue to ignore calls to contend with historically wide fiscal deficits.

The largely expected news came just hours after Treasury Secretary Scott Bessent unexpectedly announced the Treasury's latest attempt to rein-in long-term borrowing costs from multi-year highs, the most important component of the growth in debt. The Treasury stunned the market when it said, just two weeks after the latest Refunding Announcement where it should have made this change, that it was ramping up the support for longer-dated securities by "increasing, by at least double, the size of liquidity support buyback operations for longer-dated nominal coupon securities (the 10-year to 20-year sector and the 20-year to 30-year sector)."

The announcement that sent yields plunging, if only for the time being. 

Remarkably, it was less than 5 years ago that US debt hit $30 trillion back in January 2022, illustrating the rapid growth in federal borrowing needs. And there’s no end in sight. 

As Bloomberg notes, "Republicans have long opposed revenue-raising tax increases," while Democrats are best known for spending like drunken sailors to maximize socialist central planning, and both parties are loathe to sign on to politically toxic cuts to healthcare and retirement benefits for seniors. Many observers anticipate Congress and the administration of the day will only act if forced by a financial-market disruption.

That won't stop them from talking about it all the time, though, as both parties at least pretend to understand that the US is on a catastrophic collision course should debt growth continue at this pace, and if the AI bet - which is now an all-in for virtually everyone - fails to dramatically boost productivity. Bessent, for one, said a key reason he got involved in politics was to help tackle deficits running at a pace unprecedented for times outside of major wars, pandemics or depressed job markets. So far he has failed catastrophically, and worse, he is doing precisely the kind of activist issuance "Twisting" for which he bashed his predecessor, Janet Yellen.

Economists, the Congressional Budget Office and Wall Street all see little or no progress in coming years for the deficit-to-gross domestic product ratio.

“Optically, I’m sure crossing thresholds like $40 trillion will focus attention on the issue in the near term,” said Matthew Luzzetti, chief US economist at Deutsche Bank AG. “But it does not represent a magical threshold for debt dynamics, and projections have anticipated this outcome for some time.”

More important, Luzzetti said, is the climb in US Treasury yields, which is steadily increasing the cost of servicing the record debt load. Last Thursday, the department’s latest 30-year bond auction resulted in the costliest such sale in a quarter century. A 10-year auction a day earlier drew the highest financing cost at that tenor since 2007, and only today's announcement which sent yields tumbling prevent today's 20Y Treasury auction from pricing at the highest yield on record. 

As buyers demand higher yields, that in turn drives up the Treasury’s borrowing needs. With two months left to go in the fiscal year, the government’s tally for interest costs so far for 2026 is $1.37 trillion - a 20% increase on the same period a year before. That in turn adds to the debt, potentially fueling further investor calls for higher rates, in a pattern known as a “doom loop.”

For a visual of said doom loop, consider that the Treasury paid out about $85 billion to bondholders in its semi-annual coupon payment on Monday, the largest on record. For comparison, the Treasury paid out $75 billion of interest at the mid-month settlement period in August 2025 and about $80 billion on Feb. 17.

Interest costs are now the third-largest part of the budget, surpassing healthcare and just behind Social Security. However, at $1.6 trillion, Social Security will be topped by gross interest no later than 2026.

It gets worse: thanks to the AI bubble - and specifically the AI debt bubble which we correctly spotted one year ago and which the market is only now starting to freak out about - the record debt issuance to fund capex is now starting to crowd out of demand for US paper. This means that very soon, the US government will have to decide: keeping the electorate happy, or funding data centers so they can buy the latest massively overpriced memory chips needed to run the latest chatbot. Incidentally, those soaring memory costs are now adding about 0.5% to core PCE, a number which the admin will soon realize is very politically unpopular, and will lead to a historic crackdown on hyperinflationary memory and semiconductor prices. 

“The federal budget is the enemy within,” Douglas Holtz-Eakin, president of the American Action Forum and a former director of the CBO, wrote in a note Monday. “It is the greatest threat to the foundations of economic progress, U.S. international economic standing, and national security. The only reason for optimism should be material actions to rein in the sea of red ink. There are no such material actions.”

He is right, of course: the only time there can be material actions, is when the bond vigilantes crash the market, yet actions such as those by Bessent today assure that said day was just punted several weeks or months into the future, again and again.  

But wait, because there is even more: all of the above assumes no recession, no crises, no emergencies for the foreseeable future. Well, consider that US debt exploded higher during the most recent economic downturns tied to the global financial crisis and the Covid pandemic. During those periods, revenue slid as tax-paying workers lost jobs, and assistance payments jumped. One can only imagine where US debt will be after the next recession/pandemic/hot war.

Going back to Bessent, the current Treasury secretary came into office in 2025 touting a budget deficit target of around 3% of GDP by the end of President Donald Trump’s second term, which concludes in January 2029.  It’s not clear how that will possibly happen: as of July the ratio is 6% and rising... and will keep rising the longer the AI bubble drains demand for US long-dated paper.

Meanwhile, according to recent reports, Trump is seeking to galvanize support ahead of the November midterm elections, and is looking at new tax-cut promises in addition to increases in defense spending, both of which will supercharge the deficit and lead to even more debt. Meanwhile, the Elon Musk-led 2025 Department of Government Efficiency effort, which sought to slash discretionary spending including on contracts and government buildings, failed to cut outlays as much as DOGE’s own estimates projected. 

And then there is the next round of political theater: the current pace of debt accumulation...

... means that the government has about 4 or 5 months before it again hits the debt ceiling of $41.1 trillion. Hitting that marker is expected to trigger another in the series of partisan showdowns in Washington over the years to head off a potentially devastating US payments default.

“The government has not taken meaningful actions to address the large general government fiscal deficits,” Fitch said. “Spending pressures will mount over the next decade due to an aging population.” The country will be “vulnerable to future economic shocks” as debt levels increase, the rating company said.

For Fitch, talk is cheap: instead of downgrading the US credit rating, one week ago Fitch reaffirmed the US at AA+, assuring that absolutely no remedial step will be taken, and that the next debt crisis will be cataclysmic.

“Hitting this big round number will hopefully send a wake up call throughout Washington,” said Michael Peterson, who chairs the Peter G. Peterson Foundation, a research group, in regard to the $40 trillion. “It will hurt everyday affordability across the country if we don’t get our debt under control,” he said.

He is wrong: everyone knows that the US is on a historic collision course with destiny. The only wake up call was for gold and bitcoin algos, both of which finally woke up from a bizarre slumber, sending both real and digital gold soaring.

 

Tyler Durden Wed, 08/19/2026 - 21:10

"Doom Loop" Engaged: US Debt Hits $40 Trillion As Treasury Enters The Endgame

"Doom Loop" Engaged: US Debt Hits $40 Trillion As Treasury Enters The Endgame

It took the US 200 years to reach its first $1 trillion in debt. It took 95 days to add its last.

After several weeks of build up, today the Treasury announced that total public debt surpassed $40 trillion for the first time, after jumping by over $60 billion in one day, and has now surged by $1 trillion in just over three months, and by a third of the total in less than five years, as US lawmakers continue to ignore calls to contend with historically wide fiscal deficits.

The largely expected news came just hours after Treasury Secretary Scott Bessent unexpectedly announced the Treasury's latest attempt to rein-in long-term borrowing costs from multi-year highs, the most important component of the growth in debt. The Treasury stunned the market when it said, just two weeks after the latest Refunding Announcement where it should have made this change, that it was ramping up the support for longer-dated securities by "increasing, by at least double, the size of liquidity support buyback operations for longer-dated nominal coupon securities (the 10-year to 20-year sector and the 20-year to 30-year sector)."

The announcement that sent yields plunging, if only for the time being. 

Remarkably, it was less than 5 years ago that US debt hit $30 trillion back in January 2022, illustrating the rapid growth in federal borrowing needs. And there’s no end in sight. 

As Bloomberg notes, "Republicans have long opposed revenue-raising tax increases," while Democrats are best known for spending like drunken sailors to maximize socialist central planning, and both parties are loathe to sign on to politically toxic cuts to healthcare and retirement benefits for seniors. Many observers anticipate Congress and the administration of the day will only act if forced by a financial-market disruption.

That won't stop them from talking about it all the time, though, as both parties at least pretend to understand that the US is on a catastrophic collision course should debt growth continue at this pace, and if the AI bet - which is now an all-in for virtually everyone - fails to dramatically boost productivity. Bessent, for one, said a key reason he got involved in politics was to help tackle deficits running at a pace unprecedented for times outside of major wars, pandemics or depressed job markets. So far he has failed catastrophically, and worse, he is doing precisely the kind of activist issuance "Twisting" for which he bashed his predecessor, Janet Yellen.

Economists, the Congressional Budget Office and Wall Street all see little or no progress in coming years for the deficit-to-gross domestic product ratio.

“Optically, I’m sure crossing thresholds like $40 trillion will focus attention on the issue in the near term,” said Matthew Luzzetti, chief US economist at Deutsche Bank AG. “But it does not represent a magical threshold for debt dynamics, and projections have anticipated this outcome for some time.”

More important, Luzzetti said, is the climb in US Treasury yields, which is steadily increasing the cost of servicing the record debt load. Last Thursday, the department’s latest 30-year bond auction resulted in the costliest such sale in a quarter century. A 10-year auction a day earlier drew the highest financing cost at that tenor since 2007, and only today's announcement which sent yields tumbling prevent today's 20Y Treasury auction from pricing at the highest yield on record. 

As buyers demand higher yields, that in turn drives up the Treasury’s borrowing needs. With two months left to go in the fiscal year, the government’s tally for interest costs so far for 2026 is $1.37 trillion - a 20% increase on the same period a year before. That in turn adds to the debt, potentially fueling further investor calls for higher rates, in a pattern known as a “doom loop.”

For a visual of said doom loop, consider that the Treasury paid out about $85 billion to bondholders in its semi-annual coupon payment on Monday, the largest on record. For comparison, the Treasury paid out $75 billion of interest at the mid-month settlement period in August 2025 and about $80 billion on Feb. 17.

Interest costs are now the third-largest part of the budget, surpassing healthcare and just behind Social Security. However, at $1.6 trillion, Social Security will be topped by gross interest no later than 2026.

It gets worse: thanks to the AI bubble - and specifically the AI debt bubble which we correctly spotted one year ago and which the market is only now starting to freak out about - the record debt issuance to fund capex is now starting to crowd out of demand for US paper. This means that very soon, the US government will have to decide: keeping the electorate happy, or funding data centers so they can buy the latest massively overpriced memory chips needed to run the latest chatbot. Incidentally, those soaring memory costs are now adding about 0.5% to core PCE, a number which the admin will soon realize is very politically unpopular, and will lead to a historic crackdown on hyperinflationary memory and semiconductor prices. 

“The federal budget is the enemy within,” Douglas Holtz-Eakin, president of the American Action Forum and a former director of the CBO, wrote in a note Monday. “It is the greatest threat to the foundations of economic progress, U.S. international economic standing, and national security. The only reason for optimism should be material actions to rein in the sea of red ink. There are no such material actions.”

He is right, of course: the only time there can be material actions, is when the bond vigilantes crash the market, yet actions such as those by Bessent today assure that said day was just punted several weeks or months into the future, again and again.  

But wait, because there is even more: all of the above assumes no recession, no crises, no emergencies for the foreseeable future. Well, consider that US debt exploded higher during the most recent economic downturns tied to the global financial crisis and the Covid pandemic. During those periods, revenue slid as tax-paying workers lost jobs, and assistance payments jumped. One can only imagine where US debt will be after the next recession/pandemic/hot war.

Going back to Bessent, the current Treasury secretary came into office in 2025 touting a budget deficit target of around 3% of GDP by the end of President Donald Trump’s second term, which concludes in January 2029.  It’s not clear how that will possibly happen: as of July the ratio is 6% and rising... and will keep rising the longer the AI bubble drains demand for US long-dated paper.

Meanwhile, according to recent reports, Trump is seeking to galvanize support ahead of the November midterm elections, and is looking at new tax-cut promises in addition to increases in defense spending, both of which will supercharge the deficit and lead to even more debt. Meanwhile, the Elon Musk-led 2025 Department of Government Efficiency effort, which sought to slash discretionary spending including on contracts and government buildings, failed to cut outlays as much as DOGE’s own estimates projected. 

And then there is the next round of political theater: the current pace of debt accumulation...

... means that the government has about 4 or 5 months before it again hits the debt ceiling of $41.1 trillion. Hitting that marker is expected to trigger another in the series of partisan showdowns in Washington over the years to head off a potentially devastating US payments default.

“The government has not taken meaningful actions to address the large general government fiscal deficits,” Fitch said. “Spending pressures will mount over the next decade due to an aging population.” The country will be “vulnerable to future economic shocks” as debt levels increase, the rating company said.

For Fitch, talk is cheap: instead of downgrading the US credit rating, one week ago Fitch reaffirmed the US at AA+, assuring that absolutely no remedial step will be taken, and that the next debt crisis will be cataclysmic.

“Hitting this big round number will hopefully send a wake up call throughout Washington,” said Michael Peterson, who chairs the Peter G. Peterson Foundation, a research group, in regard to the $40 trillion. “It will hurt everyday affordability across the country if we don’t get our debt under control,” he said.

He is wrong: everyone knows that the US is on a historic collision course with destiny. The only wake up call was for gold and bitcoin algos, both of which finally woke up from a bizarre slumber, sending both real and digital gold soaring.

 

Tyler Durden Wed, 08/19/2026 - 21:10

"Economic D-Day": Trump Announces "Most Crushing Economic Operation Ever" Against Iran

"Economic D-Day": Trump Announces "Most Crushing Economic Operation Ever" Against Iran

Summary:

  • Trump's Economic War against Iran Begins 
  • Trump says "severe economic consequences" for any country that does businesses with Tehran
  • Trump says "ECONOMIC D-DAY" begins against Iran
  • UAE Cuts Ties As Iran Warns Gulf States Against Helping Washington; Kpler Says US Navy Gaining Ground In Hormuz
​​​​​​​"ECONOMIC D-DAY"

President Trump is out with a Truth Social post describing today as "ECONOMIC D-DAY" against Iran, declaring that his total economic war against Tehran will be the "MOST CRUSHING ECONOMIC OPERATION EVER TAKEN AGAINST ANY COUNTRY."

Trump said that with Tehran's military and military-industrial base reduced to "now rubble" and its "currency worthless," he will unleash severe economic consequences against "ANY country that allows its financial institutions, businesses, airports, or government entities to provide any type of lifeline to Iran."

Here's the full Truth Social post:

Last week, Derek Holt, head of Capital Markets Economics at Scotiabank in Toronto, offered clients a preview of what the campaign to economically isolate Iran could look like (view here), including the potential targeting of China. Notably, much of Iran's crude exports flow to Chinese buyers.

UAE Cuts Ties As Iran Warns Gulf States Against Helping Washington; Kpler Says US Navy Gaining Ground In Hormuz

Iran's parliament speaker Mohammad Bagher Ghalibaf is visiting Baghdad while at the same time US Secretary of State Marco Rubio has spoken UAE National Security Adviser Sheikh Tahnoon bin Zayed Al Nahyan to discuss the Hormuz situation and security. Except of course the two sides aren't talking with each other.

President Trump has made clear that no talks are on, and that none are scheduled, as he's been floating a 'new' strategy to 'strangle' the Iranian economy over the long term. CNN reported Tuesday that White House officials have recently communicated that they are shifting their strategy — going from "hammer Iran ASAP" to "strangle them" over time.

US Navy file image/Reuters

As for Ghalibaf, he blasted War Secretary Pete Hegseth and Treasury Secretary Scott Bessent on Tuesday, mocking this new disengagement strategy, given the US has already failed to bring Tehran to its knees.

"Americans think squeezing Iran harder will win concessions that were never part of the agreement," Ghalibaf wrote in a post on X. "Bessent and Hegseth are way out of their league," Ghalibaf added while referring to them as the "clown crew." He stated:

Stop waiting for the clown crew to pull a rabbit out of their hat and clean up the mess you made.

After declaring a new 'offensive' military posture in response to the crisis, Iran is showing no signs of backing off the confrontation with the US in the region. On Wednesday its armed forces warned Gulf countries against hosting or assisting American forces, saying it would be tantamount to joining the war on the US side.

"We wish to warn that any assistance or facilitation provided to the aggressor U.S. military amounts to participation in the U.S. military operation," armed forces chief of staff Ali Abdollahi said.

"It seems unlikely that such a large number of military aircraft, particularly refueling aircraft could be present at regional bases without knowledge of host countries," the official continued as cited in Mehr news agency.

It's not known how many refueling tankers or else large warplanes are still positioned in the Gulf, but certainly the bulk of regional refueling aircraft operated by the US Air Force are currently concentrated at Tel Aviv's Ben Gurion international airport - and has been subject of a lot of media attention.

And in another significant escalation that effectively torpedoes any remaining illusions of hoped-for cross-Gulf detente, the United Arab Emirates has announced Wednesday a complete and immediate severance of all economic ties with Tehran. The move comes on the heels of what UAE officials claim was a barrage of Iranian ballistic missiles targeted directly at Emirati territory.

Tehran had quickly denied it had fired missiles on its territory, but UAE authorities later clarified that the military observed two missiles inbound from Iran, which caused no damage or casualties - which triggered an urgent missile alert for the population on Tuesday.

Meanwhile, below are some of the latest major developments and reports related to the Iran conflict:

Iran has weighed attacking US military targets in Europe should Donald Trump escalate the war, according to people close to the regime, as Tehran considers its options to increase the stakes of the conflict. FT

Even as Iran projects resilience in the war with the United States, its leaders are worried that a threat of more economic punishment by Donald Trump could increase hardships, reignite unrest and further erode the Islamic Republic’s legitimacy. RTRS

Iranian attacks on shipping in the Strait of Hormuz are piling up without an American military response, raising the risks of crossing the strategic waterway and frustrating some Arab allies who worry the U.S. doesn’t have a strategy to wind down the conflict. WSJ

However, shipping analytics firm Kpler has suggested that the US Navy is gaining ground in the Strait of Hormuz, and that Iran is ceding some control, amid a war of words between President Trump and Iranian leadership over who has actual 'control'.

previewing new sanctions still to be announced...

"At the moment, however, the evidence is clear: The United States, patrolling the strait with its navy, is gaining ground – and Iran is losing much of its control of the critical waterway," writes CNN. "More than 80% of liquids transits through the Strait of Hormuz over the past two weeks have taken the Omani route – a UN-authorized shipping channel that Iran vehemently opposes – or have been 'dark' transits that likely took the Omani route, according to Kpler, which tracks ships using transponders and satellite data."

But there's as yet no rush for international shipping to return to the waterway, given the risk of attack and all of the serious unknowns which could result in total losses as well as threaten the safety of crew.

Tyler Durden Wed, 08/19/2026 - 21:04

"Economic D-Day": Trump Announces "Most Crushing Economic Operation Ever" Against Iran

"Economic D-Day": Trump Announces "Most Crushing Economic Operation Ever" Against Iran

Summary:

  • Trump's Economic War against Iran Begins 
  • Trump says "severe economic consequences" for any country that does businesses with Tehran
  • Trump says "ECONOMIC D-DAY" begins against Iran
  • UAE Cuts Ties As Iran Warns Gulf States Against Helping Washington; Kpler Says US Navy Gaining Ground In Hormuz
​​​​​​​"ECONOMIC D-DAY"

President Trump is out with a Truth Social post describing today as "ECONOMIC D-DAY" against Iran, declaring that his total economic war against Tehran will be the "MOST CRUSHING ECONOMIC OPERATION EVER TAKEN AGAINST ANY COUNTRY."

Trump said that with Tehran's military and military-industrial base reduced to "now rubble" and its "currency worthless," he will unleash severe economic consequences against "ANY country that allows its financial institutions, businesses, airports, or government entities to provide any type of lifeline to Iran."

Here's the full Truth Social post:

Last week, Derek Holt, head of Capital Markets Economics at Scotiabank in Toronto, offered clients a preview of what the campaign to economically isolate Iran could look like (view here), including the potential targeting of China. Notably, much of Iran's crude exports flow to Chinese buyers.

UAE Cuts Ties As Iran Warns Gulf States Against Helping Washington; Kpler Says US Navy Gaining Ground In Hormuz

Iran's parliament speaker Mohammad Bagher Ghalibaf is visiting Baghdad while at the same time US Secretary of State Marco Rubio has spoken UAE National Security Adviser Sheikh Tahnoon bin Zayed Al Nahyan to discuss the Hormuz situation and security. Except of course the two sides aren't talking with each other.

President Trump has made clear that no talks are on, and that none are scheduled, as he's been floating a 'new' strategy to 'strangle' the Iranian economy over the long term. CNN reported Tuesday that White House officials have recently communicated that they are shifting their strategy — going from "hammer Iran ASAP" to "strangle them" over time.

US Navy file image/Reuters

As for Ghalibaf, he blasted War Secretary Pete Hegseth and Treasury Secretary Scott Bessent on Tuesday, mocking this new disengagement strategy, given the US has already failed to bring Tehran to its knees.

"Americans think squeezing Iran harder will win concessions that were never part of the agreement," Ghalibaf wrote in a post on X. "Bessent and Hegseth are way out of their league," Ghalibaf added while referring to them as the "clown crew." He stated:

Stop waiting for the clown crew to pull a rabbit out of their hat and clean up the mess you made.

After declaring a new 'offensive' military posture in response to the crisis, Iran is showing no signs of backing off the confrontation with the US in the region. On Wednesday its armed forces warned Gulf countries against hosting or assisting American forces, saying it would be tantamount to joining the war on the US side.

"We wish to warn that any assistance or facilitation provided to the aggressor U.S. military amounts to participation in the U.S. military operation," armed forces chief of staff Ali Abdollahi said.

"It seems unlikely that such a large number of military aircraft, particularly refueling aircraft could be present at regional bases without knowledge of host countries," the official continued as cited in Mehr news agency.

It's not known how many refueling tankers or else large warplanes are still positioned in the Gulf, but certainly the bulk of regional refueling aircraft operated by the US Air Force are currently concentrated at Tel Aviv's Ben Gurion international airport - and has been subject of a lot of media attention.

And in another significant escalation that effectively torpedoes any remaining illusions of hoped-for cross-Gulf detente, the United Arab Emirates has announced Wednesday a complete and immediate severance of all economic ties with Tehran. The move comes on the heels of what UAE officials claim was a barrage of Iranian ballistic missiles targeted directly at Emirati territory.

Tehran had quickly denied it had fired missiles on its territory, but UAE authorities later clarified that the military observed two missiles inbound from Iran, which caused no damage or casualties - which triggered an urgent missile alert for the population on Tuesday.

Meanwhile, below are some of the latest major developments and reports related to the Iran conflict:

Iran has weighed attacking US military targets in Europe should Donald Trump escalate the war, according to people close to the regime, as Tehran considers its options to increase the stakes of the conflict. FT

Even as Iran projects resilience in the war with the United States, its leaders are worried that a threat of more economic punishment by Donald Trump could increase hardships, reignite unrest and further erode the Islamic Republic’s legitimacy. RTRS

Iranian attacks on shipping in the Strait of Hormuz are piling up without an American military response, raising the risks of crossing the strategic waterway and frustrating some Arab allies who worry the U.S. doesn’t have a strategy to wind down the conflict. WSJ

However, shipping analytics firm Kpler has suggested that the US Navy is gaining ground in the Strait of Hormuz, and that Iran is ceding some control, amid a war of words between President Trump and Iranian leadership over who has actual 'control'.

previewing new sanctions still to be announced...

"At the moment, however, the evidence is clear: The United States, patrolling the strait with its navy, is gaining ground – and Iran is losing much of its control of the critical waterway," writes CNN. "More than 80% of liquids transits through the Strait of Hormuz over the past two weeks have taken the Omani route – a UN-authorized shipping channel that Iran vehemently opposes – or have been 'dark' transits that likely took the Omani route, according to Kpler, which tracks ships using transponders and satellite data."

But there's as yet no rush for international shipping to return to the waterway, given the risk of attack and all of the serious unknowns which could result in total losses as well as threaten the safety of crew.

Tyler Durden Wed, 08/19/2026 - 21:04

Trump Indicates Plans To Meet North Korea's Kim Jong-Un Later This Year

Trump Indicates Plans To Meet North Korea's Kim Jong-Un Later This Year

President Trump on Wednesday issued some surprisingly positive statements regarding North Korea and its expanded nuclear modernization ambitions, while fielding questions from reporters.

The comments come days after the Commander-in-Chief ordered scaled back US-South Korean joint military drills, which are happening this week and are now expected to end early.

Getty Images

Trump has indicated he plans to meet with North Korean leader Kim Jong-Un later this year, after breakthrough face-to-face diplomacy with the autocrat during his first term at the White House. According to reports:

Donald Trump said he would meet Kim Jong-un later this year. The US president has privately discussed setting up a face-to-face discussion with the North Korean leader during his next trip to Asia, which could happen in November, according to reports.

He confirmed on Wednesday that the pair had plans to meet later this year.

He stated that the relationship was an asset to the US and the world, before saying: "I get along with him well. And you know what? The fact that I get along with him, that’s a very good thing, not a bad thing."

According to more:

“As long as we have a smart president, he’s going to be fine,” Trump said.

Trump’s statement that North Korea has 57 nuclear warheads was within the range of widely reported estimates but was more specific than past U.S. government statements.

“They should have ​never allowed it. If I were president, I wouldn’t ​have allowed ⁠it. But he’s got them,” Trump said of the North Korean leader.

Trump didn't provide any further details on a potential meeting, and all of this interestingly comes at a time where the White House probably needs a distraction away from the Iran war and Hormuz Strait energy crisis.

The president had earlier in the week described North Korea as a "Country that, as long as Donald J. Trump has been President, has been unthreatening and respectful" - in a post on Truth Social.

Before that, Pyongyang had slammed the drills as a "rehearsal for aggressive war". North Korea's Foreign Ministry had described last Friday that these planned drills look different, and will be more dangerous, compared to all prior ones of the past-half decade, in that they appear offensive in nature as the exercise will focus on modern warfare tactics.

North Korea had further stated: "It is our consistent principle of ensuring security to respond to a new level of a threat with a new level of a deterrent," and so the country "will more clearly express its stance on the enemies to cope with any threats and challenges through the responsible and decisive exercise of the right to legitimate self-defense."

Tyler Durden Wed, 08/19/2026 - 20:30

Trump Indicates Plans To Meet North Korea's Kim Jong-Un Later This Year

Trump Indicates Plans To Meet North Korea's Kim Jong-Un Later This Year

President Trump on Wednesday issued some surprisingly positive statements regarding North Korea and its expanded nuclear modernization ambitions, while fielding questions from reporters.

The comments come days after the Commander-in-Chief ordered scaled back US-South Korean joint military drills, which are happening this week and are now expected to end early.

Getty Images

Trump has indicated he plans to meet with North Korean leader Kim Jong-Un later this year, after breakthrough face-to-face diplomacy with the autocrat during his first term at the White House. According to reports:

Donald Trump said he would meet Kim Jong-un later this year. The US president has privately discussed setting up a face-to-face discussion with the North Korean leader during his next trip to Asia, which could happen in November, according to reports.

He confirmed on Wednesday that the pair had plans to meet later this year.

He stated that the relationship was an asset to the US and the world, before saying: "I get along with him well. And you know what? The fact that I get along with him, that’s a very good thing, not a bad thing."

According to more:

“As long as we have a smart president, he’s going to be fine,” Trump said.

Trump’s statement that North Korea has 57 nuclear warheads was within the range of widely reported estimates but was more specific than past U.S. government statements.

“They should have ​never allowed it. If I were president, I wouldn’t ​have allowed ⁠it. But he’s got them,” Trump said of the North Korean leader.

Trump didn't provide any further details on a potential meeting, and all of this interestingly comes at a time where the White House probably needs a distraction away from the Iran war and Hormuz Strait energy crisis.

The president had earlier in the week described North Korea as a "Country that, as long as Donald J. Trump has been President, has been unthreatening and respectful" - in a post on Truth Social.

Before that, Pyongyang had slammed the drills as a "rehearsal for aggressive war". North Korea's Foreign Ministry had described last Friday that these planned drills look different, and will be more dangerous, compared to all prior ones of the past-half decade, in that they appear offensive in nature as the exercise will focus on modern warfare tactics.

North Korea had further stated: "It is our consistent principle of ensuring security to respond to a new level of a threat with a new level of a deterrent," and so the country "will more clearly express its stance on the enemies to cope with any threats and challenges through the responsible and decisive exercise of the right to legitimate self-defense."

Tyler Durden Wed, 08/19/2026 - 20:30

8 Examples That Demonstrate That The Islamization Of America Is Steadily Progressing

8 Examples That Demonstrate That The Islamization Of America Is Steadily Progressing

Authored by Michael Snyder via The End of The American Dream,

In Islam, there is no separation between mosque and state. The goal is to use the state to make everyone submit to Islam. If you want to see what this looks like, just check out almost any country in the Middle East that has a Muslim majority. They don’t believe in freedom of speech or freedom of religion. Do you want to know how many churches there are in Saudi Arabia? The answer is zero, because churches are banned in Saudi Arabia. Now this same ideology is spreading in America, and that should deeply alarm all of us.

Today, Islam is the fastest growing religion in America.

It used to be witchcraft, but now Islam has taken the top spot.

There are now more than 2,700 mosques in the United States.

In 1970, there were about 100.

But it isn’t just mosques that are going up everywhere.

Enormous Islamic “mini-cities” are being constructed in states such as California and Texas.

And rapidly growing Islamic populations are taking over entire sections of the states of Minnesota and Michigan.

What we have been witnessing all over Europe is now happening here.

The following are 8 examples that demonstrate that the Islamization of America is steadily progressing…

#1 Michigan Democratic Senate nominee Abdul El-Sayed has a really good chance of winning in November, and he has publicly stated that he has a sacred “obligation” to obey Islamic law in every area of his life until he dies…

Muslim Democrat Michigan Senatorial candidate Abdul El-Sayed has previously declared his sacred “obligation” to follow Islamic law in every aspect of his life until he dies and stands before Allah. He has claimed he does not want to subvert the Constitution and mandate Islamic law but that is part of his religion.

Michigan Democratic Senate nominee Abdul El-Sayed is having his words, vows, and religion come back to haunt him. According to The Washington Free Beacon, years ago he declared his sacred “obligation” to follow Islamic law in every aspect of his life until he dies and stands before Allah. This comes from remarks he made to the New York Times back in 2009, when he was younger and buying his first home.

#2 In the supposedly “deep red” state of Mississippi, a hijab-wearing Muslim woman has been sworn in as a municipal judge

Assma Ali has made history. The daughter of Yemeni immigrants to the United States, Ali is now municipal judge for the City of Benoit, a small town in southwest Bolivar County in the Mississippi Delta.

Ali was sworn in as municipal judge on Aug. 5. She has spent nearly a decade serving as an attorney in Mississippi after graduating with her law degree from Mississippi Christian University (formerly Mississippi College) in 2017 and interned in both Rankin and Madison counties while attending law school.

#3 I know that this is hard to believe, but a bill in the state of Massachusetts would “identify and recommend qualified American Muslims for appointive positions at all levels of government”. Needless to say, this is very unconstitutional

#4 What in the world has happened to the state of Texas? At DFW Airport, they are going to be putting in Islamic foot-washing stations

#5 The city of Hamtramck, Michigan is one of the first cities in the nation where Muslims make up the majority of the population, and the all-Muslim city council decided that it would be a good idea to legalize the sacrifice of animals on residential property…

After several months of contentious debate and pressure from Muslim residents, Hamtramck City Council voted Tuesday night to allow the religious sacrifice of animals on residential property.

Muslims often slaughter animals during the holiday of Eid al-Adha and Hamtramck has one of the highest percentage of Muslim residents among cities in the U.S.

#6 An entire Islamic “mini-city” is going up right in the heart of Orange County, California

#7 A survivor of Sharia law in Iran recently pleaded with the city council of McKinney, Texas not to approve a new Islamic center that was being planned…

An Iranian Christian who describes himself as a “Sharia law survivor” warned Americans during a McKinney City Council meeting that the United States is currently facing a “level one” invasion of Islam. The meeting involved discussions of a proposed Islamic Center.

“I’m a Sharia law survivor from Iran,” he began. “I’m telling you, this is a bad idea and you’re going to regret not listening to people like us who lived under Sharia law.”

“I’m here to tell you this is a dangerous ideology you’re allowing in your country. Every country that is Islamic now, it used to be a Christian country and we were soft Christians. And we allowed these people to come in, bring their Sharia law into our countries and slowly kill us off left and right.”

But after listening to him and countless others that objected to the project, the city council unanimously approved it anyway

According to Texas Scorecard, McKinney City Council members have since voted 7-0 to approve plans for the Islamic Center.

#8 This summer, giant Islamic marches are being held in major cities all over the nation. Sean Feucht just stumbled into one in downtown Chicago

US Christian worship leader Sean Feucht has issued a warning about the growth of Islam in America after his “Jesus march” encountered a Muslim procession in Chicago.

Feucht shared footage from the city showing participants in the annual Arbaeen Procession, which was taking place around an hour before his Christian event was due to begin.

“This is insane. What I’m witnessing is crazy,” Feucht said in a video posted on social media.

According to Feucht, those that were participating in the Islamic march were “shouting anti Christian and anti Israel verses from the Quran”

“An hour before we start, there’s a massive Muslim march. We didn’t even know this was happening guys…where they are declaring their allegiance to Allah. And that the entire city of Chicago will bow to Allah.”

Feucht also claimed participants were “shouting anti Christian and anti Israel verses from the Quran”.

“Have you woken up yet? Do you understand what is at stake in our nation?” he asked.

They aren’t here to assimilate.

They are here to take over.

So why aren’t more Americans standing up?

Well, perhaps the fact that average testosterone levels have fallen dramatically over the past 50 years might have something to do with it…

A recent review of studies involving more than a million men all over the world found that average testosterone levels in blood have dropped by about 20 percent over the past half century. A new, unpublished study put the decrease during that basic time period at closer to 50 percent. Some scientists are skeptical of these numbers because testosterone has been measured in different ways over time. But Michael Eisenberg, a urologist at Stanford Medicine who specializes in male fertility, told me that the findings of a decline are “pretty solid.” The testosterone slump, he said, has “manifested across many different study designs.”

We are seeing entire communities being radically transformed all over this county.

We are going down the exact same road that Europe has been going for the past 30 years, and that should deeply trouble all of us.

There are approximately 2 billion Muslims in the world today, and they make up the majority of the population in more than 50 different nations.

But this is just the beginning.

It is being projected that by 2050 Muslims will make up nearly a third of the entire global population.

This is a story that is not going away, and now is the time to take a stand.

Michael’s new book entitled “10 Prophetic Events That Are Coming Next” is available in paperback and for the Kindle on Amazon.com, and you can subscribe to his Substack newsletter at michaeltsnyder.substack.com.

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

Tyler Durden Wed, 08/19/2026 - 20:05

8 Examples That Demonstrate That The Islamization Of America Is Steadily Progressing

8 Examples That Demonstrate That The Islamization Of America Is Steadily Progressing

Authored by Michael Snyder via The End of The American Dream,

In Islam, there is no separation between mosque and state. The goal is to use the state to make everyone submit to Islam. If you want to see what this looks like, just check out almost any country in the Middle East that has a Muslim majority. They don’t believe in freedom of speech or freedom of religion. Do you want to know how many churches there are in Saudi Arabia? The answer is zero, because churches are banned in Saudi Arabia. Now this same ideology is spreading in America, and that should deeply alarm all of us.

Today, Islam is the fastest growing religion in America.

It used to be witchcraft, but now Islam has taken the top spot.

There are now more than 2,700 mosques in the United States.

In 1970, there were about 100.

But it isn’t just mosques that are going up everywhere.

Enormous Islamic “mini-cities” are being constructed in states such as California and Texas.

And rapidly growing Islamic populations are taking over entire sections of the states of Minnesota and Michigan.

What we have been witnessing all over Europe is now happening here.

The following are 8 examples that demonstrate that the Islamization of America is steadily progressing…

#1 Michigan Democratic Senate nominee Abdul El-Sayed has a really good chance of winning in November, and he has publicly stated that he has a sacred “obligation” to obey Islamic law in every area of his life until he dies…

Muslim Democrat Michigan Senatorial candidate Abdul El-Sayed has previously declared his sacred “obligation” to follow Islamic law in every aspect of his life until he dies and stands before Allah. He has claimed he does not want to subvert the Constitution and mandate Islamic law but that is part of his religion.

Michigan Democratic Senate nominee Abdul El-Sayed is having his words, vows, and religion come back to haunt him. According to The Washington Free Beacon, years ago he declared his sacred “obligation” to follow Islamic law in every aspect of his life until he dies and stands before Allah. This comes from remarks he made to the New York Times back in 2009, when he was younger and buying his first home.

#2 In the supposedly “deep red” state of Mississippi, a hijab-wearing Muslim woman has been sworn in as a municipal judge

Assma Ali has made history. The daughter of Yemeni immigrants to the United States, Ali is now municipal judge for the City of Benoit, a small town in southwest Bolivar County in the Mississippi Delta.

Ali was sworn in as municipal judge on Aug. 5. She has spent nearly a decade serving as an attorney in Mississippi after graduating with her law degree from Mississippi Christian University (formerly Mississippi College) in 2017 and interned in both Rankin and Madison counties while attending law school.

#3 I know that this is hard to believe, but a bill in the state of Massachusetts would “identify and recommend qualified American Muslims for appointive positions at all levels of government”. Needless to say, this is very unconstitutional

#4 What in the world has happened to the state of Texas? At DFW Airport, they are going to be putting in Islamic foot-washing stations

#5 The city of Hamtramck, Michigan is one of the first cities in the nation where Muslims make up the majority of the population, and the all-Muslim city council decided that it would be a good idea to legalize the sacrifice of animals on residential property…

After several months of contentious debate and pressure from Muslim residents, Hamtramck City Council voted Tuesday night to allow the religious sacrifice of animals on residential property.

Muslims often slaughter animals during the holiday of Eid al-Adha and Hamtramck has one of the highest percentage of Muslim residents among cities in the U.S.

#6 An entire Islamic “mini-city” is going up right in the heart of Orange County, California

#7 A survivor of Sharia law in Iran recently pleaded with the city council of McKinney, Texas not to approve a new Islamic center that was being planned…

An Iranian Christian who describes himself as a “Sharia law survivor” warned Americans during a McKinney City Council meeting that the United States is currently facing a “level one” invasion of Islam. The meeting involved discussions of a proposed Islamic Center.

“I’m a Sharia law survivor from Iran,” he began. “I’m telling you, this is a bad idea and you’re going to regret not listening to people like us who lived under Sharia law.”

“I’m here to tell you this is a dangerous ideology you’re allowing in your country. Every country that is Islamic now, it used to be a Christian country and we were soft Christians. And we allowed these people to come in, bring their Sharia law into our countries and slowly kill us off left and right.”

But after listening to him and countless others that objected to the project, the city council unanimously approved it anyway

According to Texas Scorecard, McKinney City Council members have since voted 7-0 to approve plans for the Islamic Center.

#8 This summer, giant Islamic marches are being held in major cities all over the nation. Sean Feucht just stumbled into one in downtown Chicago

US Christian worship leader Sean Feucht has issued a warning about the growth of Islam in America after his “Jesus march” encountered a Muslim procession in Chicago.

Feucht shared footage from the city showing participants in the annual Arbaeen Procession, which was taking place around an hour before his Christian event was due to begin.

“This is insane. What I’m witnessing is crazy,” Feucht said in a video posted on social media.

According to Feucht, those that were participating in the Islamic march were “shouting anti Christian and anti Israel verses from the Quran”

“An hour before we start, there’s a massive Muslim march. We didn’t even know this was happening guys…where they are declaring their allegiance to Allah. And that the entire city of Chicago will bow to Allah.”

Feucht also claimed participants were “shouting anti Christian and anti Israel verses from the Quran”.

“Have you woken up yet? Do you understand what is at stake in our nation?” he asked.

They aren’t here to assimilate.

They are here to take over.

So why aren’t more Americans standing up?

Well, perhaps the fact that average testosterone levels have fallen dramatically over the past 50 years might have something to do with it…

A recent review of studies involving more than a million men all over the world found that average testosterone levels in blood have dropped by about 20 percent over the past half century. A new, unpublished study put the decrease during that basic time period at closer to 50 percent. Some scientists are skeptical of these numbers because testosterone has been measured in different ways over time. But Michael Eisenberg, a urologist at Stanford Medicine who specializes in male fertility, told me that the findings of a decline are “pretty solid.” The testosterone slump, he said, has “manifested across many different study designs.”

We are seeing entire communities being radically transformed all over this county.

We are going down the exact same road that Europe has been going for the past 30 years, and that should deeply trouble all of us.

There are approximately 2 billion Muslims in the world today, and they make up the majority of the population in more than 50 different nations.

But this is just the beginning.

It is being projected that by 2050 Muslims will make up nearly a third of the entire global population.

This is a story that is not going away, and now is the time to take a stand.

Michael’s new book entitled “10 Prophetic Events That Are Coming Next” is available in paperback and for the Kindle on Amazon.com, and you can subscribe to his Substack newsletter at michaeltsnyder.substack.com.

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

Tyler Durden Wed, 08/19/2026 - 20:05

Judge Ordered Off Karmelo Anthony Murder Case As Defense Pushes For New Trial

Judge Ordered Off Karmelo Anthony Murder Case As Defense Pushes For New Trial

Judge John Roach has been ordered to recuse himself from further proceedings in the Karmelo Anthony murder case, as the defendant seeks a new trial.

On August 19, 2026, Visiting Judge Sid Harle ruled that Roach must step aside. Retired District Judge Michael Chitty has been appointed to handle a hearing scheduled for August 20 on whether Anthony should receive a retrial.

Anthony, now 19, was convicted of first-degree murder and sentenced to 35 years in prison after fatally stabbing 17-year-old Austin Metcalf during an altercation at a high school track meet in Frisco, Texas, in April 2025. A Collin County jury returned the verdict in June 2026 following a trial in McKinney. Jurors deliberated for about three hours and rejected the option of a lesser manslaughter conviction.

Anthony's new defense team is pursuing the new-trial motion. His attorneys argued that Roach's strict courtroom rules - including restrictions on live media coverage - and public statements he made after the verdict demonstrated bias that would prevent him from fairly considering the request.

In a statement, the legal team said the ruling addressed "whether a reasonable fully informed observer would see Judge Roach's conduct and believe that he could fairly and impartially consider a motion for new trial," adding that they believed the judge correctly granted the recusal motion.

"Today’s ruling answers a fundamental question: whether a reasonable fully informed observer would see Judge Roach’s conduct and believe that he could fairly and impartially consider a motion for new trial," the legal team told the Epoch Times

Critics of the original trial, including Anthony's former attorneys and groups such as the Collin County NAACP, had raised concerns about the absence of Black jurors in what they described as a racially charged case involving a Black defendant. Prosecutors struck several potential Black jurors, stating the decisions were race-neutral because the individuals were educators in a case involving young students. Roach rejected a challenge to the jury's composition during the trial.

The incident occurred on April 2, 2025. Students from Memorial High School's track team returned to their designated tent area and found Anthony, a Centennial High School student, sitting there. Metcalf asked him to leave. An argument ensued. Multiple witnesses testified that Anthony was the aggressor. One quoted Metcalf saying he would not fight at a track meet. Witnesses said Anthony responded, "Touch me and see what happens," while reaching into his bag. After Metcalf shoved him, Anthony stabbed Metcalf in the chest with a knife and fled. He was arrested shortly afterward.

The case drew significant public attention amid competing narratives about the confrontation and broader issues of race and self-defense. Both sides maintained at trial that race was not a factor in the events under the tent.

Judge Chitty will now oversee the upcoming hearing on the motion for a new trial.

Tyler Durden Wed, 08/19/2026 - 19:40

Judge Ordered Off Karmelo Anthony Murder Case As Defense Pushes For New Trial

Judge Ordered Off Karmelo Anthony Murder Case As Defense Pushes For New Trial

Judge John Roach has been ordered to recuse himself from further proceedings in the Karmelo Anthony murder case, as the defendant seeks a new trial.

On August 19, 2026, Visiting Judge Sid Harle ruled that Roach must step aside. Retired District Judge Michael Chitty has been appointed to handle a hearing scheduled for August 20 on whether Anthony should receive a retrial.

Anthony, now 19, was convicted of first-degree murder and sentenced to 35 years in prison after fatally stabbing 17-year-old Austin Metcalf during an altercation at a high school track meet in Frisco, Texas, in April 2025. A Collin County jury returned the verdict in June 2026 following a trial in McKinney. Jurors deliberated for about three hours and rejected the option of a lesser manslaughter conviction.

Anthony's new defense team is pursuing the new-trial motion. His attorneys argued that Roach's strict courtroom rules - including restrictions on live media coverage - and public statements he made after the verdict demonstrated bias that would prevent him from fairly considering the request.

In a statement, the legal team said the ruling addressed "whether a reasonable fully informed observer would see Judge Roach's conduct and believe that he could fairly and impartially consider a motion for new trial," adding that they believed the judge correctly granted the recusal motion.

"Today’s ruling answers a fundamental question: whether a reasonable fully informed observer would see Judge Roach’s conduct and believe that he could fairly and impartially consider a motion for new trial," the legal team told the Epoch Times

Critics of the original trial, including Anthony's former attorneys and groups such as the Collin County NAACP, had raised concerns about the absence of Black jurors in what they described as a racially charged case involving a Black defendant. Prosecutors struck several potential Black jurors, stating the decisions were race-neutral because the individuals were educators in a case involving young students. Roach rejected a challenge to the jury's composition during the trial.

The incident occurred on April 2, 2025. Students from Memorial High School's track team returned to their designated tent area and found Anthony, a Centennial High School student, sitting there. Metcalf asked him to leave. An argument ensued. Multiple witnesses testified that Anthony was the aggressor. One quoted Metcalf saying he would not fight at a track meet. Witnesses said Anthony responded, "Touch me and see what happens," while reaching into his bag. After Metcalf shoved him, Anthony stabbed Metcalf in the chest with a knife and fled. He was arrested shortly afterward.

The case drew significant public attention amid competing narratives about the confrontation and broader issues of race and self-defense. Both sides maintained at trial that race was not a factor in the events under the tent.

Judge Chitty will now oversee the upcoming hearing on the motion for a new trial.

Tyler Durden Wed, 08/19/2026 - 19:40

Your Bank Data Could Become A Profit Center - And You'll Pay the Price

Your Bank Data Could Become A Profit Center - And You'll Pay the Price

Authored by Morgan Sweeney via The Center Square,

A forthcoming federal rule on open banking may allow banks to charge new fees for access to consumer data, a move critics say would harm consumers and runs counter to other parts of President Donald Trump's agenda.

Open banking allows consumers to authorize banks and other financial institutions to securely share their financial data electronically with third-party providers.

PNC Bank building in Pittsburgh, PA (Photo: Grace David / The Center Square) Why now?

The White House was reviewing the anticipated rule from the Consumer Financial Protection Bureau as of last week, according to reporting by Bloomberg Law. The rule would help shape the federal framework for open banking in the U.S., building on a broad provision contained within the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010.

Dodd-Frank was passed to enhance transparency and accountability and strengthen consumer protections in the financial industry after the economic crisis of 2008. The law is just under 850 pages long, and Section 1033 - which provides the legal basis for the open banking ecosystem that has evolved in the U.S. - was not one of its central provisions. Section 1033 is about one page long and it ensures that Americans have the legal right to access their own financial data upon request. Financial institutions must provide consumers' financial data relevant to the sought-after financial product or service in "an electronic form usable by consumers."

The law gives the Consumer Financial Protection Bureau broad authority to define and standardize this process, which is partly why affected industries have anticipated federal rulemaking on open banking for more than a decade.

The Biden administration issued the long-awaited rule in late 2024, which required banks to provide data directly to third parties authorized by consumers and prohibited banks from charging third parties fees for accessing the data, among other provisions. Banks pushed back, suing the bureau claiming it was exceeding the authority it was granted under Section 1033 and challenging those provisions in court.

Banks have said the rule would require them to build and maintain costly interfaces for third-party access while preventing them from being able to recoup those costs.

Last summer, JPMorgan Chase & Co. submitted proposed fees to data aggregators like Plaid for accessing Chase customers' financial data.

The Trump administration has said the Biden administration's rule was unlawful, "arbitrary and capricious" and began working on a rewrite of the rule last August. The lawsuit is essentially paused until the new rule is released, and the court ordered that enforcement of the Biden rule be stayed.

The Trump administration's version reportedly includes a provision that would allow banks to charge volume-based fees to fintech companies to access consumer financial data, meaning banks could begin charging fintech companies once they make more than a certain number of requests for customer data.

Who pays the price?

News that the Trump administration's rule would include a data-rationing provision prompted numerous objections from fintech companies and consumer advocacy groups, who argued that if banks didn't pay for the data sharing, consumers ultimately will.

"Inevitably, if [the cost] is on the third party, it's going to go back to the consumer," said Todd Zywicki, a George Mason University law professor who formerly led a CFPB task force on federal consumer financial law and served in a leadership role at the Federal Trade Commission.

A third party is really a false choice, according to Zywicki, and between consumers and banks, he thinks banks are the much better option.

"The bank already has built-in incentives to collect the data, keep the data safely, use the data, and under law would already be required to share the data with consumers for them to be able to use it to shop for themselves," Zywicki told The Center Square, "To then say, OK, now you have to also let Plaid access my data or Mint access my data, so they can go find me a better savings account than recommended to me or suggests this product instead of that product just strikes me as the only way to really make sense on this."

The five largest banks in the U.S. reported a record-worthy second quarter. JPMorgan reported its highest quarterly profit in history, Goldman Sachs had its best second quarter ever, and Citigroup enjoyed its best quarter in a decade. Bank of America also posted strong results, while Wells Fargo beat Wall Street expectations. Collectively, they brought in $49 billion in profits.

Zywicki and other sources who spoke to The Center Square also maintained that banks have already done much of the work to build an open banking ecosystem and any costs they might incur to share data with more third parties would be relatively small.

"Banks already are collecting and holding information securely... They've already got to share the information for free with the consumer. It's just a matter of whether a third party can get the information on behalf of the consumer," Zywicki added.

But there's another cost to consumers that could be even greater than any immediate impact on their wallets, advocates warn, and that's the cost of continued fervent fintech innovation.

"We have already seen the nation's biggest banks take advantage of regulatory ambiguity to impose fees and throttle access. Further uncertainty could stop the next great startup from forming and prevent consumers from accessing affordable financial products," said Miranda Margowsky, head of communications for the Financial Technology Association.

Fintech innovation can do more than help consumers manage their finances. Startups like Carefull, a fintech company that analyzes customers' financial activity for unusual patterns, can help detect warning signs of dementia or cognitive decline, potentially years before a clinical diagnosis.

"The goal here is to create a competitive framework where... small banks, for example, or fintech providers, or whoever can compete against the big banks that are currently holding the data," Zywicki said. "It's not really much of a fair playing field if banks can continue to use this information to market their [own] products."

At odds with Trump's agenda

Critics of a data tolling system have also said that allowing banks to charge for access to consumer data undermines several of the administration's other priorities and initiatives.

Several advocacy groups submitted a joint letter to the administration in July saying that the proposal would violate the spirit of one of Trump's May executive orders that specifically calls for government regulation that promotes financial innovation.

"The United States is a global leader in financial innovation, driven in part by the rapid growth of financial technology (fintech) firms," the order reads. "To foster this financial innovation, the Federal Government must update regulations.... and remove overly burdensome and fragmented regulations and supervisory practices that form barriers to entry and primarily benefit incumbent financial services firms."

The president has also heavily promoted Trump Accounts, the government-backed, tax-preferred investment savings accounts for minors, as a way for ordinary American families to leverage financial tools more often used by wealthier individuals. Trump Accounts use Plaid to connect users' bank accounts to the platform, though users whose financial institutions are not supported can verify their accounts manually.

The president has also been a vocal supporter of cryptocurrency and has advanced crypto-friendly policy. He and his sons founded World Liberty Financial, a financial platform that "bridges the gap between traditional banking and blockchain-powered innovation."

But the Blockchain Association, a cryptocurrency industry trade group, doesn't support volume-based fees either. It was one of the organizations that signed onto the July letter, and it also wrote a letter to the CFPB in October.

"The President's Working Group on Digital Asset Markets has entreated 'the Federal government to operationalize President Trump's promise to make America the crypto capital of the world.' Maintaining the broad permissions and prohibition of fees prescribed by the [Biden administration] Open Banking Rule is critical to realizing this goal and sustaining American leadership in fintech and blockchain for the century ahead," it wrote.

What's next?

The bureau's rewrite of the Biden administration's open banking rule is being reviewed by the White House Office of Information and Regulatory Affairs, according to Bloomberg. The bureau issued an advance notice of proposed rulemaking in August 2025, received public comments and drafted a proposed rule. Once the White House review is complete - potentially with changes - the bureau can issue a notice of proposed rulemaking. That proposal will also be subject to public comment before the bureau can issue a final rule.

"It's really important to get this one right," Zywicki said. "When you get a regulation wrong, it's really hard to fix."

The Center Square reached out to the Consumer Financial Protection Bureau, the Bank Policy Institute and multiple banks but did not receive a response in time for publication.

Tyler Durden Wed, 08/19/2026 - 19:15

Your Bank Data Could Become A Profit Center - And You'll Pay the Price

Your Bank Data Could Become A Profit Center - And You'll Pay the Price

Authored by Morgan Sweeney via The Center Square,

A forthcoming federal rule on open banking may allow banks to charge new fees for access to consumer data, a move critics say would harm consumers and runs counter to other parts of President Donald Trump's agenda.

Open banking allows consumers to authorize banks and other financial institutions to securely share their financial data electronically with third-party providers.

PNC Bank building in Pittsburgh, PA (Photo: Grace David / The Center Square) Why now?

The White House was reviewing the anticipated rule from the Consumer Financial Protection Bureau as of last week, according to reporting by Bloomberg Law. The rule would help shape the federal framework for open banking in the U.S., building on a broad provision contained within the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010.

Dodd-Frank was passed to enhance transparency and accountability and strengthen consumer protections in the financial industry after the economic crisis of 2008. The law is just under 850 pages long, and Section 1033 - which provides the legal basis for the open banking ecosystem that has evolved in the U.S. - was not one of its central provisions. Section 1033 is about one page long and it ensures that Americans have the legal right to access their own financial data upon request. Financial institutions must provide consumers' financial data relevant to the sought-after financial product or service in "an electronic form usable by consumers."

The law gives the Consumer Financial Protection Bureau broad authority to define and standardize this process, which is partly why affected industries have anticipated federal rulemaking on open banking for more than a decade.

The Biden administration issued the long-awaited rule in late 2024, which required banks to provide data directly to third parties authorized by consumers and prohibited banks from charging third parties fees for accessing the data, among other provisions. Banks pushed back, suing the bureau claiming it was exceeding the authority it was granted under Section 1033 and challenging those provisions in court.

Banks have said the rule would require them to build and maintain costly interfaces for third-party access while preventing them from being able to recoup those costs.

Last summer, JPMorgan Chase & Co. submitted proposed fees to data aggregators like Plaid for accessing Chase customers' financial data.

The Trump administration has said the Biden administration's rule was unlawful, "arbitrary and capricious" and began working on a rewrite of the rule last August. The lawsuit is essentially paused until the new rule is released, and the court ordered that enforcement of the Biden rule be stayed.

The Trump administration's version reportedly includes a provision that would allow banks to charge volume-based fees to fintech companies to access consumer financial data, meaning banks could begin charging fintech companies once they make more than a certain number of requests for customer data.

Who pays the price?

News that the Trump administration's rule would include a data-rationing provision prompted numerous objections from fintech companies and consumer advocacy groups, who argued that if banks didn't pay for the data sharing, consumers ultimately will.

"Inevitably, if [the cost] is on the third party, it's going to go back to the consumer," said Todd Zywicki, a George Mason University law professor who formerly led a CFPB task force on federal consumer financial law and served in a leadership role at the Federal Trade Commission.

A third party is really a false choice, according to Zywicki, and between consumers and banks, he thinks banks are the much better option.

"The bank already has built-in incentives to collect the data, keep the data safely, use the data, and under law would already be required to share the data with consumers for them to be able to use it to shop for themselves," Zywicki told The Center Square, "To then say, OK, now you have to also let Plaid access my data or Mint access my data, so they can go find me a better savings account than recommended to me or suggests this product instead of that product just strikes me as the only way to really make sense on this."

The five largest banks in the U.S. reported a record-worthy second quarter. JPMorgan reported its highest quarterly profit in history, Goldman Sachs had its best second quarter ever, and Citigroup enjoyed its best quarter in a decade. Bank of America also posted strong results, while Wells Fargo beat Wall Street expectations. Collectively, they brought in $49 billion in profits.

Zywicki and other sources who spoke to The Center Square also maintained that banks have already done much of the work to build an open banking ecosystem and any costs they might incur to share data with more third parties would be relatively small.

"Banks already are collecting and holding information securely... They've already got to share the information for free with the consumer. It's just a matter of whether a third party can get the information on behalf of the consumer," Zywicki added.

But there's another cost to consumers that could be even greater than any immediate impact on their wallets, advocates warn, and that's the cost of continued fervent fintech innovation.

"We have already seen the nation's biggest banks take advantage of regulatory ambiguity to impose fees and throttle access. Further uncertainty could stop the next great startup from forming and prevent consumers from accessing affordable financial products," said Miranda Margowsky, head of communications for the Financial Technology Association.

Fintech innovation can do more than help consumers manage their finances. Startups like Carefull, a fintech company that analyzes customers' financial activity for unusual patterns, can help detect warning signs of dementia or cognitive decline, potentially years before a clinical diagnosis.

"The goal here is to create a competitive framework where... small banks, for example, or fintech providers, or whoever can compete against the big banks that are currently holding the data," Zywicki said. "It's not really much of a fair playing field if banks can continue to use this information to market their [own] products."

At odds with Trump's agenda

Critics of a data tolling system have also said that allowing banks to charge for access to consumer data undermines several of the administration's other priorities and initiatives.

Several advocacy groups submitted a joint letter to the administration in July saying that the proposal would violate the spirit of one of Trump's May executive orders that specifically calls for government regulation that promotes financial innovation.

"The United States is a global leader in financial innovation, driven in part by the rapid growth of financial technology (fintech) firms," the order reads. "To foster this financial innovation, the Federal Government must update regulations.... and remove overly burdensome and fragmented regulations and supervisory practices that form barriers to entry and primarily benefit incumbent financial services firms."

The president has also heavily promoted Trump Accounts, the government-backed, tax-preferred investment savings accounts for minors, as a way for ordinary American families to leverage financial tools more often used by wealthier individuals. Trump Accounts use Plaid to connect users' bank accounts to the platform, though users whose financial institutions are not supported can verify their accounts manually.

The president has also been a vocal supporter of cryptocurrency and has advanced crypto-friendly policy. He and his sons founded World Liberty Financial, a financial platform that "bridges the gap between traditional banking and blockchain-powered innovation."

But the Blockchain Association, a cryptocurrency industry trade group, doesn't support volume-based fees either. It was one of the organizations that signed onto the July letter, and it also wrote a letter to the CFPB in October.

"The President's Working Group on Digital Asset Markets has entreated 'the Federal government to operationalize President Trump's promise to make America the crypto capital of the world.' Maintaining the broad permissions and prohibition of fees prescribed by the [Biden administration] Open Banking Rule is critical to realizing this goal and sustaining American leadership in fintech and blockchain for the century ahead," it wrote.

What's next?

The bureau's rewrite of the Biden administration's open banking rule is being reviewed by the White House Office of Information and Regulatory Affairs, according to Bloomberg. The bureau issued an advance notice of proposed rulemaking in August 2025, received public comments and drafted a proposed rule. Once the White House review is complete - potentially with changes - the bureau can issue a notice of proposed rulemaking. That proposal will also be subject to public comment before the bureau can issue a final rule.

"It's really important to get this one right," Zywicki said. "When you get a regulation wrong, it's really hard to fix."

The Center Square reached out to the Consumer Financial Protection Bureau, the Bank Policy Institute and multiple banks but did not receive a response in time for publication.

Tyler Durden Wed, 08/19/2026 - 19:15

'Quality Over Quantity': Reddit Is Mostly Wiped From ChatGPT Citations

'Quality Over Quantity': Reddit Is Mostly Wiped From ChatGPT Citations

Nature is healing, with the latest data from the AI search visibility platform Promptwatch showing that OpenAI's ChatGPT citations from Reddit have plunged in recent weeks to nearly zero.

"It looks like Reddit is almost wiped from ChatGPT sources; the query fanout changes had a big impact, and in the past couple of days it seems to be almost completely removed from prompt responses," Promptwatch founder Klaas Foppen wrote on X.

According to Promptwatch, Reddit's daily share of all citations returned by ChatGPT Search began to move sharply lower in the first week of August, then fell to near zero by mid-month.

Promptwatch's website said the red lines on the chart began on August 8, when OpenAI changed the query fanout behavior of ChatGPT Search. By August 14, or last Friday, those citations had plunged again to near zero.

Promptwatch continued:

Reddit lost almost its entire citation footprint in ChatGPT within a single day. From July 18 through August 7, it held a steady 3.83% average share of ChatGPT citations, one of the largest of any domain. On August 14, the share collapsed to under 1%, and the August 14-17 average of 0.52% is an 86.4% relative drop.

The slide started earlier: on August 8, the same day ChatGPT changed its query fanout behavior, Reddit's share fell from the high 3s to the mid-2s. The chart shows when each change happened, not why. A shift in ChatGPT's source selection is the obvious candidate, but a data-collection issue cannot be ruled out, so treat the size of the drop as provisional while we keep monitoring.

Reddit citations in ChatGPT have been controversial from the start because there is often no confirmation of where the information originated, and the citations could point to someone claiming to be an engineer, doctor, trader, or insider without proving their credentials. There's also the fact that Reddit generally leans left-wing, which could alter answers. 

All-In Podcast's Jason Calacanis asked Grok, "Is this a choice because of quality or because of legal IP issues?"

The answer:

Someone asked:

Foppen noted that instead of ChatGPT tapping Reddit, more official sources and direct-site citations are being pulled.

Tyler Durden Wed, 08/19/2026 - 18:50

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