Zero Rss

Zelensky's Top Aide Named In Explosive Court Audio In Mudra Corruption Case

Ukraine’s President Volodymyr Zelensky's Chief of Staff Kyrylo Budanov has been named as part of a major corruption case involving Zelensky's former Deputy Chief of Staff Iryna Mudra, who was arrested and is currently center of a top corruption court case, local outlet Hromadske reported Wednesday, citing court documents.

Mudra, who was Zelensky's #2 staffer before being dismissed and detained, stands accused of hiding assets and money laundering. The whole saga has placed an uncomfortable spotlight on the presidential office, and is proving to be an embarrassment for Zelensky himself, who has sought to distance himself as scandal runs straight through the highest government offices of Kyiv.

Zelensky named former GUR chief Kyrylo Budanov as his top aide in January 2026. via AFP

National media says that not only did Mudra receive significant regular monthly off the books income, but the prosecutor has alleged there is at least $4 million among other undeclared assets.

Now, more names and potential future cases could come out of court proceedings centered on Mudra's case. Hromadske identifies how presidential chief of staff Budanov - who is still in his position - factors in [machine translation]:

In these materials, in addition to Iryna Mudra, another official of the President's Office appears, to whom the investigation assigns the role of organizer. In the conversations cited by the investigation, he is mainly called "Kyril" and "Kyril Alekseevich". According to the materials of suspicion, he was supposed to receive cash under control from Timur Mindich and members of his criminal group, organize its storage and the mechanism for transferring funds, as well as provide financial rewards to all persons involved. 

According to Hromadske's sources, this may actually be the head of the President's Office, Kirill Budanov. Budanov's name can also be seen in the petition materials themselves. 

Budanov appears in audio recordings made by investigators, with his voice being captured in at least one key conversation, also with investigator transcripts explicitly naming him.

The below outline has been put together by prominent national outlet Kyiv Post on Thursday:

• President Volodymyr Zelensky's Chief of Staff Kyrylo Budanov is allegedly mentioned by his former deputy Iryna Mudra on the tapes
• In at least one conversation, Budanov's voice was allegedly recorded
• Timur Mindich, a top Zelensky associate, allegedly delivered cash to Budanov to pay a suspect's bail with laundered money
• Mindich also allegedly asked Budanov to take over Sense Bank's cash flows
• Sense Bank's management was allegedly prepared to take orders from Budanov
• Budanov allegedly told Mudra not to fight corruption but to control it

An explosive report by @hromadske alleges President Zelensky’s chief of staff, war hero and former intelligence chief Kyrylo Budanov, organised a money laundering scheme to bypass Ukraine’s own sanctions on Zelensky’s former business partner, Timur Mindich.
The money was…

— Maxim Tucker (@MaxRTucker) August 26, 2026

Budanov himself has newly commented on the case to Hromadske, and appears somewhat defensive but without giving a full-throated denial of emerging media allegations [machine translation]:

“Let the court sort it out," he said. "You know, it (his name) comes up in a lot of places,” Budanov said when asked about alleged references to him in the tapes.

He also said he had spoken to Mudra after her dismissal amid the NABU searches at her premises last week.

“First, dismissal is a legal process," he said. "Second, as a matter of principle, I never turn my back on people until there are definitive conclusions. If the court finds her guilty, that’s a different matter."

At a court hearing on Aug. 25, a lawyer for Sense Bank CEO Oleksiy Stupak, one of the suspects in the latest case, publicly cited NABU tapes referring to “Kyrylo Oleksiyovich" — a person whose first name and patronymic coincide with Budanov’s. He did not specify his last name.

“Listen, Kyrylo Oleksiyovich called and asked what’s going on with Sense Bank,” Mudra said, according to the tapes cited by the lawyer.

According to more from the tapes:

In the alleged transcripts, Budanov thanked ex-lawmaker Maksym Mykytas, a suspect in the case, for his work.

“I’m with Kyrylo Oleksiyovich,” Mudra told Mykytas. “I put it on speaker.”

“Thank you, hello,” Budanov allegedly replied. “Thanks a lot.”

According to the alleged transcripts, on June 9 Mudra and Myktytas discussed a request by Timur Mindich, a suspect in the Energoatom case and a close Zelensky associate, to take over Sense Bank's cash flows.

“Mindich approached Kyrylo," Mudra allegedly said in an apparent reference to Kyrylo Budanov. "To take control of it... Wait, there are some serious money flows there... There’s no one to take them over right now. Do you understand? And once Gera (an apparent reference to ex-Justice and Energy Minister Herman Halushchenko) gets out, he’ll get his hands on those flows again. So we need to bargain for something for ourselves before that happens.”

Mudra and Mykytas are accused of laundering Hr 150 million ($3.4 million) and transferring the funds through Sense Bank to post bail for Halushchenko.

Halushchenko was charged in February in the Energoatom case.

According to the alleged transcripts, Mudra said that Sense Bank’s management was prepared to follow instructions from Kyrylo  — an apparent reference to Budanov.

“They’re ready to do anything," she allegedly said. "I mean, wherever Kyrylo tells them to bring (the money), they’ll take it... They’ll do whatever he says.”

"Let the courts decide...":

“Let the courts decide what people might have misheard. We hear all sorts of things,” stated Kyrylo Budanov, Head of the Office of the President of Ukraine, responding to reports that his voice was captured on investigative wiretaps in the “Forrest Gump” corruption probe.… pic.twitter.com/xptthkYYOk

— BlackSky.info (@BlackSkyINFO) August 27, 2026

The timing of all of this is very sensitive, given that with the Russia-Ukraine war now well past four-years, Kiev is awash in direct Western aid - with billions in weaponry and cash having steadily flowed in.

The current investigations also follows on a series of prior very public probes by NABU and SAPO into corruption at the highest levels of government, which has taken down many officials and been an ongoing source of embarrassment for Ukraine.

These investigations tended to get spun as if 'heroic' Zelensky is on a mission to root out corruption and destroy the rot from within.

Zelensky’s presidential office deputy is being led out in handcuffs.

Not the first office head with proven corruption.

Who’s next? pic.twitter.com/kgo6rovqP5

— Diana Panchenko 🇺🇦 (@Panchenko_X) August 25, 2026

Journalist, Mark Ames has pointed out the following trend: Every shocking Zelensky corruption scandal - and they keep getting worse - is PR’d away as “proof that Ukraine is a functioning western democracy fighting corruption”, as if it’s always one corruption scandal away from turning the corner & becoming Denmark.

Tyler Durden Thu, 08/27/2026 - 17:20

State AGs Target 'Big Four' Accounting Firms, Claim They're Pushing Climate Disclosures

Authored by Kevin Stocklin via The Epoch Times,

A coalition of 16 state attorneys general is investigating the "Big Four" accounting firms, alleging that they may have pushed climate accounting on client companies.

Climate change activists hold signs during a press conference with members of the House of Reps. Sustainable Energy and Environment Coalition on Capitol Hill in Washington on Nov. 13, 2025. Madalina Kilroy/The Epoch Times

"The Big Four's climate commitments force clients to make burdensome climate-related disclosures that drive up the costs of their services and place onerous requirements on farmers and small businesses," Nebraska Attorney General Mike Hilgers, who co-led the coalition, said in a statement.

"These costs will ultimately be passed onto consumers, who will be forced to bear the burden of increased prices for food, energy, and other everyday products."

These accounting firms - Deloitte, KPMG, Ernst & Young, and PriceWaterhouseCoopers - together provide an estimated 80 percent of all public company audits, according to Becker, an education organization for professionals.

The AGs' letter states that the accounting firms "appear to have violated their professional duty of independence by committing to push for climate-related disclosures in financial reporting, contrary to professional standards of materiality, neutrality, and error avoidance."

The letter also highlights the accounting firms' former membership in the U.N.-sponsored Net Zero Financial Service Providers Alliance (NZFSPA), in which members pledge to align their products and services with the Paris Climate Agreement's net-zero goals.

In addition, the AGs stated that climate-related disclosures could become a significant financial burden for smaller firms, and that "the highly speculative nature of climate-related disclosures" could expose all firms that produce such reports to "frivolous and costly litigation."

Consequently, the accounting firms could be exposed to charges of conflict of interest and be in violation of state laws against "deceptive acts and practices," the letter warned.

The NZFSPA, which formerly operated as part of a network of financial alliances under the Glasgow Financial Alliance for Net Zero (GFANZ), included ratings agencies, data and index providers, proxy advisors, auditors and stock exchanges.

In January, the NZFSPA announced that it was reorganizing, with member companies "now pursuing activities independently."

Other former members of GFANZ-sponsored net-zero alliances included JPMorgan Chase, Bank of America, Citigroup, Goldman Sachs, Morgan Stanley, and Wells Fargo, BlackRock, Vanguard, State Street and some of the world's largest insurance companies.

Starting in 2024, however, these alliances began to shut down as members quit amid charges of collusion and antitrust activity from conservative lawmakers, state treasurers, and attorneys general.

Since taking office in 2025, the Trump administration has also worked to repeal climate policies put in place under the Biden administration.

In March 2025, the Securities and Exchange Commission (SEC) announced it would not defend the Biden-era climate disclosure rules, which mandated that publicly traded companies audit and disclose their climate-related risks and greenhouse-gas emissions, and which plaintiffs had challenged as overreach.

In May of this year, the SEC formally rescinded the mandate altogether.

In addition, in January, President Donald Trump withdrew the United States from more than 60 U.N. climate-affiliated organizations, declaring them "contrary to U.S. national interests, security, economic prosperity, or sovereignty."

Despite the efforts of the Trump administration, however, companies are still required to report greenhouse gas emissions due to mandates in Europe and California.

Since 2023, the European Union has imposed such mandates on companies that do business or list there.

Accounting firm PriceWaterhouseCoopers estimates that about 50,000 companies worldwide will have to comply with the EU's Corporate Sustainability Reporting Directive.

Similarly, companies that do business in California and that have annual revenues of $1 billion or more must also report greenhouse gas emissions, according to the California Corporate Greenhouse Gas Reporting Program, passed in 2023.

The Epoch Times contacted the accounting firms Deloitte, KPMG, Ernst & Young, and PriceWaterhouseCoopers for comment but did not receive a reply as of publication time.

Tyler Durden Thu, 08/27/2026 - 17:00

Quinn: They Know What's Coming, Because They Planned It...

Authored by Jim Quinn via The Burning Platform blog,

“There is no means of avoiding the final collapse of a boom brought about by credit expansion. The alternative is only whether the crisis should come sooner as the result of a voluntary abandonment of further credit expansion or later as a final and total catastrophe of the currency involved.” – Ludwig von Mises

“The financial history of the last century shows a steady increase in the amount of public indebtedness. Nobody believes that the states will eternally drag the burden of these interest payments. It is obvious that sooner or later all these debts will be liquidated in some way or other, but certainly not by payment of interest and principal according to the terms of the contract.” – Ludwig von Mises

Anyone living in the real world of commuting to a job, buying groceries, paying rent, filling up their gas tank, paying utility bills, paying property taxes, and generally trying to live an honest hard working life with a couple weeks of vacation per year, knows they are being fed a load of bullshit by the Trumps, Bessents and Warshs of the world. They are spinning false narratives, faking the economic statistics, lying to you about how dire our economic situation is, and above all, spending and printing fiat at hypersonic speed in a desperate attempt to give the appearance of normalcy, when in reality we are living through the most abnormal, corrupt, degenerate, dangerous period in history.

This normalcy bias is employed by the vast majority of dumbed down, I-gadget addicted, debt enslaved, mRNA jabbed, zombie-like consumers, as they shuffle through their daily existence believing the propaganda shoveled at them 24/7 on the boob tube and their social media accounts, by billionaire oligarchs, corrupt politicians, captured media talking heads, and the invisible government pulling the strings to manipulate their thoughts, decisions, and false beliefs. As a born cynical skeptic, I no longer believe anyone or anything. I’m real fun at parties.

As our national debt surpassed $40 trillion last week and has been accelerating at a rate of $13.4 billion per day (annualized rate of $4.9 trillion) since July 1, the only analogy I can make is the final scene of Thelma & Louise when they purposely drive off a cliff into the Grand Canyon, rather than face the consequences of their actions. But, in my daily existence, the people at the gym, drugstore, and grocery store seem happily oblivious to the extreme danger we currently face as citizens of a dying empire, intent on going out with a bang. We are accelerating towards an economic meltdown, inflationary financial collapse, and possibly global war, and no one seems to care or acknowledge reality.

It’s almost as if the 270 million sheep, who allowed themselves to be injected with a Big Pharma toxic gene altering poison, with little critical thinking skills to begin with, have been rendered deaf, dumb and blind to the machinations of their overlords as we spiral towards collapse. It seems only 5% to 10% of the population have the proper critical thinking skills, distrust of the government, ability to do math, comprehension to understand history, and courage to tell the truth and act rationally, in an irrational, perverted, debased world, built on debt, delusions, and denial. It makes me sick to my stomach observing the cowardice, corruption, and degradation of the pedophile elites who wield the power in our society, leading the sheep to slaughter and the world towards catastrophic ruin.

The government continues to propagandize the masses with their massaged, manipulated and made up statistics showing a steadily growing economy, relatively low inflation, and historically low unemployment. Trump and his lying minions consistently point to the stock market at all-time highs as proof everything  is great. It is great for Trump’s family of insider trading grifters, his billionaire banking buddies, the congressional scum sucking snakes becoming multi-millionaires on a $175,000 salary, and all the toadies in the media pretending this everything bubble isn’t due to printing $3 trillion per year as the only crutch for this Potemkin village of debt, created by our Deep State overlords and their highly paid apparatchiks.

Even though the propaganda outlets: CNBC, CNN, Fox, MSNBC, among others, are compensated gloriously by Big Pharma, Big Banks, the Military Industrial Complex, and Big Corps, to lie, obfuscate and mislead the masses, one only needs the most basic of math skills and understanding to see what is really happening in this country. Is it a sign of a strong vibrant economy when credit card delinquencies are at a 15 year high, student loan delinquencies are at a 6 year high, and auto loan delinquencies are at an all-time high? And this is before the real pain of a recession takes hold. This chart reveals immense pressure on average Americans who don’t have the benefit of insider trading tips from Trump.

Hysterically, mouthpiece for the Wall Street cabal, Bloomberg declares the all-time low in the savings rate is because the masses are making a killing in the stock market, so they no longer need to save. In reality, the average American household, making $83,000 per year, is only saving 2.7% per year because their government is spending over $7 trillion per year, while the Federal Reserve is printing trillions and conducting stealth QE, creating a massive inflationary headwind.The cumulative inflation over the last 10 years, even using the massively massaged CPI, is 39%. In reality, it is up well over 60%. Average worker pay has risen by only 45%.

Only in a warped, debt saturated, consuming society would this be seen as normal. In a normal, healthy economy which produces more than it consumes, the savings rate would be 10%, like it was from the 1950s into the 1990s. People are not saving because there is nothing left to save. When credit card debt sits near an all-time high of $1.26 trillion and the average person has a $6,600 revolving balance accruing at 22% interest, the savings rate makes sense. The average American is deeply in debt and barely surviving.

Among the vast plethora of phony government statistics, the unemployment rate is one of the most manipulated fake data points in history. It has no relation to the real 25% unemployment during the Great Depression. The current reported unemployment rate of 4.1% is a bad joke, completely falsified through the manipulation of the labor force figure by government drones at the BLS.

Only a triple jabbed, BLM supporting, Fauci fan believes the labor participation rate is currently at the same level as it was in 1974, before the overlords initiated the destruction of traditional families by forcing women into the workforce in mass through inflation, feminist falsehoods, and non-stop propaganda about girl power. They have purposely under-reported the actual civilian labor force to drive down the unemployment rate. The labor participation rate is far above the reported 61.4%.

At the turn of the century the labor participation rate was 67.5%. It drifted slowly down to 66% before the Federal Reserve/Wall Street cabal created great financial crisis. This is where faking it until making it went into high gear. The Boomer retirement false narrative was used as the participation rate plunged to 62.5%, far greater than the Boomer retirement pace.  Millions simultaneously became disabled and began collecting Social Security. The labor participation rate actually increased to 63.3% just before the Covid scamdemic was rolled out in early 2020. If you analyze the actual numbers, the ridiculousness of their manipulation model reveals the falseness of their numbers to mislead the masses about the strength of our economy.

• In January 2000, the working age population was 209 million, with 141 million in the work force. Today, the working age population is 275 million, with only 169 million supposedly in the work force. The population is up 66 million (+32%), while the workforce increased by a minuscule 18 million (+20%). There are now 106 million working age Americans supposedly willingly not working. This is untrue. Millions would be working if there were decent paying jobs to be had.

• There are 1 million less people employed today than one year ago, but amazingly the BLS drones want you to believe the unemployment rate dropped from 4.3% to 4.1%. Meanwhile, 2.8 million people must have made millions on AI stocks, laying bets on Draft Kings, or getting insider tips from the White House. They did not leave the labor force. They are unemployed.

• The BLS fantasy statisticians actually pretend you are not in the labor force if you give up looking due to not being able to land a job.  We are to believe that with 275 million able bodied adults, 162 million are employed, with 28 million working part-time, 9 million working multiple jobs, 16 million “self-employed” and 22 million pretending to work in government offices and funded by taxpayers.

The labor participation rate, at a minimum, should be 63%, with a more realistic level of 65%. This would put the actual unemployment rate at between 6.7% and 9.9%. Anyone who isn’t brain fogged from the jab knows the unemployment rate is closer to 10% than 4%. Does default rates near highs and the savings rate at lows jive with a 10% unemployment rate or a 4% unemployment rate?

The Ludwig Institute for Shared Economic Prosperity created a realistic measure of true unemployment which  includes not only people who are unemployed and looking for a job, but also those who are involuntarily working part-time and who are earning poverty-level wages, or less than $26,000 annually before taxes. This “functional unemployment rate” is currently 24.9%, which jives nicely with the Great Depression level of 25%.

The 4% unemployment rate is as believable as the 3.4% CPI reported by the BLS drones, when everyone knows inflation is raging at 8% to 10%. Proof of the government faking these numbers is so blatant when they try to convince you health insurance costs have dropped by 33% in the last four years. Meanwhile, the median 2026 premium increase across all “Affordable” Care Act health insurance plans was 20%, and insurance companies have requested a median premium increase of 14% for 2027.

The world is cyclical in nature and human beings have a tendency to make the same mistakes over and over. Warsh and his central banker co-conspirators can talk tough about inflation, but it has been above their 2% target for the last 65 months, and they are doing the opposite of what would be needed to drive inflation to the 2% level. In fact, with the fiscal mismanagement of the country’s finances, waging wars across the globe, and nothing but $2 trillion to $3 trillion annual deficits for eternity, the bond market is ignoring the lies of Warsh and Bessent and dictating the path of long-term interest rates. It is very likely we will experience a replay of the late 1970s and early 1980s, except our debt is $40 trillion today versus $900 billion in 1980. Warsh is no Volker, and doesn’t have the balls to do what would be required.

The facade is crumbling and the bond market is going to hold the profligate politicians and the Wall Street owned central bankers accountable for what they have done. Their job has been to enrich the oligarchs and impoverish the peasants, and they accomplished their mission, pushing the country into an abyss with no hope of recovery. The 30 year Treasury just reached the 2007 peak at 5.27%, but in 2007 rates were headed lower and the national debt was less than $9 trillion. Today, rates are headed higher and the debt is $40 trillion and headed much higher. It’s a recipe for disaster.

The falsehoods and fabrications are running hot and heavy as we accelerate on the road to perdition towards a catastrophic denouement. Trump, Bessent, the Wall Street cabal, and their mouthpiece media (Axios, Fox, CNBC, etc.) are desperate to make you believe the Strait of Hormuz is open, oil is flowing freely, the impact on prices is minimal, and Iran is on the brink of collapse. Grand announcements about more sanctions, after we have had non-stop sanctions for 47 years against Iran, is comical. Bessent, the sodomite, thinks his bloviating bullshit and threats can move the markets in the direction he chooses. Look at the results, so far.

Barak Ravid, the CIA/Mossad Israeli plant at Axios, and Trump’s chief propaganda mouthpiece, dutifully reported the lies about 40 tankers exiting the Strait of Hormuz Friday night, with his source as unnamed “U.S. Officials”. This was then followed up with fake headlines declaring a 400% increase in traffic through the Strait, designed to drive the price of oil lower. All lies. Neutral sources, using satellite imagery, show very little traffic through the Strait of Hormuz. Does this look like “traffic exploding by 400%”. They keep talking and the oil tanks keep emptying. When the reality overwhelms the false narratives, the price of oil will explode.

It seems both Biden and Trump do not understand the definition of STRATEGIC. They have both drained the U.S. Strategic Petroleum Reserve totaling 327 million barrels during their terms for the sole reason of winning elections by artificially lowering the price of oil. The reserve is now at the same level as it was in 1982, when U.S. oil consumption was 15.3 million barrels per day, versus 20.6 million barrels per day now.

Even worse, Trump isn’t using the reserve in the U.S. He is selling it to foreign countries. That doesn’t sound too strategic to me, but this is the same guy who is going to import toxic Argentinian beef to undercut U.S. ranchers in order to win the 2026 mid-term elections. The SPR, stored in salt caves, is reaching levels where it can’t be effectively pumped. We have just over a month before the true bottom.

As Bessent ramps up his lying campaign to keep bond yields from reflecting the reality of our current and future economic quagmire, Kevin Warsh, the self proclaimed inflation fighting hawk, continues to flap his gums, while actually contributing to the inflationary fiasco. If a Federal Reserve chairman really wanted to squash inflation he would be raising short-term rates, reducing the Fed’s balance sheet, and using his influence with Wall Street banks to make it more difficult to lend money to consumers and the AI bubble corporations.

Warsh is trapped because if he does what he should do, the AI/Data Center financing circle jerk will implode and crash the stock market, making his Wall Street owners and Trump very angry. So instead he is actually exercising QE by expanding his balance sheet by $224 billion, while not raising short-term rates, and funding the $3 trillion deficit, the Iran/Ukraine war, and the AI bubble. Fed chairmen will always choose printing to pulling away the punch-bowl while the party is roaring. The rich get richer and the middle class is buried under a tsunami of relentless never ending inflation.

Kurt Altrichter explains just how easy the Fed and their owners are acting when it comes to credit, as we enter the crash zone. Everyone is going to keep dancing until the music stops, just as they were doing in 2007.

“Bloomberg’s index of how easy it is to raise money across stocks, credit, and rates just closed at the easiest level in its 35-year history, looser than 2021 and looser than the dot-com peak. This is the liquidity holding stocks, gold, and credit near records all at once. Conditions this loose have never lasted. When they tighten, the most leveraged trades, AI and credit, unwind first.”

The easiest financial conditions in history always leads to bubbles. We are in the midst of so many bubbles simultaneously, it is just a matter of time before the needle comes along and pops them quicker than an athlete collapsing from myocarditis after a Pfizer death jab. The stock market is now more overvalued than it was at the 1929 top and the 2000 dot-com top. Jim Cramer and his fellow boobs and bimbos on CNBC will never warn their non-thinking day trader audience about the imminent collapse of this debt driven bubble. There is a reason Berkshire Hathaway was sitting on $400 billion of cash in the first quarter. The market is 50% more overvalued than it was in 2008 before the last Fed induced financial crash. Winter is coming.

One year ago there was very little talk of data centers or AI, as the climate change and DEI narratives were still being regurgitated by the legacy media and the woke social media arms of our beloved overlord Epstein class. Suddenly, in 2026 the “need” for thousands of ginormous power sucking, aquafer draining surveillance centers (aka data centers) was essential to the future of our country, even though we seem to be functioning fine without these nature destroying monstrosities. One moment Bill Gates and his ilk are telling us cow farts are destroying the planet, the next moment these surveillance centers using more electricity and water than exists in some states are perfectly fine and essential.

And the dumbed down masses don’t even question the demands of these globalist billionaire totalitarians who have already killed millions with their covid jab genocide. These data centers do not benefit the average person in any way. The narratives are false. The electricity to power them doesn’t exist. The water to cool them does not exist. The entire AI scam bubble is exactly like the internet dot-com bubble. The bloated defense budget of nearly $1 trillion is about to be surpassed by the capital spending (all financed with debt) of just four companies: Google, Amazon, Microsoft, and Meta. It’s a race to win the AI war. But it will result in another financial debacle, with the Magnificent 7 and those financing this bubble begging for a bailout. And they will be bailed out at your expense.

With Nvidia, OpenAI, Anthropic, Palantir, Flock, among many others loaning each other money to buy each other’s products and recording it as revenue, you should be getting an Enron/Worldcom vibe. The IPOs are coming hot and heavy, enriching the hucksters at the top, but once the financing fraud unravels, the stocks will collapse, bankruptcies will follow, and billions of square feet of rotting data center skeletons will be left in communities across the land.

It’s always a good idea to see what the corporate executives of the biggest corporations are doing, versus the narratives they are spinning on CNBC. With corporate profits at all-time highs and the stock market marching relentlessly higher, for some reason the corporate executives who know the truth about their companies sold $77 billion of their stock, a 20 year high (excluding covid). That is surely a sign of good times ahead. Right? Previous peaks in insider selling proceeded market tops and the crashes that followed.

It’s good to be the kings. These corporate insiders didn’t get into the top 1% by being dumb. The top 1% wealthiest households surpassed the wealth of the entire middle class in 2023 and have continued their acceleration upward, as they own most of the stocks and real estate in the U.S., which has appreciated rapidly since 2023. It’s funny how the middle class started losing the battle after the great financial crisis and their free-fall has not abated. When the Fed, Wall Street, Epstein class and the DC swamp all conspire against the middle class to enrich themselves through monetary and fiscal corruption, the ground work for revolution has been laid. Once this debt saturated shitshow implodes and the middle class is left holding the bag again, fireworks should commence.

You know you’ve crossed the Rubicon economically when interest on the national debt has surpassed our humongous war budget, and you need to issue more debt to pay the interest. With annual interest already exceeding $1.24 trillion and headed towards $1.4 trillion next year, you can understand Bessent’s spasmodic gyrations in keeping rates from exploding higher, as they should. If the 10 year Treasury was 6% and 30 year Treasury was 8%, where they would be in a free non-manipulated market, interest on the debt would be closer to $2 trillion per year and it would be game over for this declining empire of debt.

I’ve painted a dark picture, but it is a true picture based on unequivocal facts, not some nonsense narrative spun by liars, thieves, and pedophiles. When you see the Chinese central bank add 60 tons of gold in the 1st six months of the year, bringing their three year accumulation to 14 million troy ounces, along with central banks across the globe increasing their gold holdings, you can discern there is trouble brewing and countries are positioning themselves to survive whatever conflagration the American empire ignites during its ongoing death throes. Bessent’s economic warfare against China, Russia, and dozens of other countries across the globe will only add gasoline to the fire consuming this crumbling empire.

When you step back and observe the insanity consuming our world, you have to ask yourself whether this is really due to mind numbing stupidity and incompetence on the part of our leaders or due to a master plan by the new world order satanist pedophiles to purposely destroy western civilization and its financial underpinnings, which had allowed a vast proportion of the planet to rise out of poverty into the middle class. I do believe the globalist oligarchs are evil, arrogant, narcissistic, and diabolically power hungry, but I don’t believe they stupid and incompetent.

Therefore, I must conclude every seemingly preposterous act by our hand picked puppet politicians, their bureaucrat apparatchiks (Cabinet, FBI, CIA, DOD, DOJ), Wall Street financiers, central bankers, activist judges, and global organizations like the WHO, WEF, NATO, UN, and thousands of NGOs controlled by billionaires and surveillance state organizations, are part of the plan to depopulate the planet, impoverish the survivors, create a totalitarian electronic surveillance state, and control the peasants through CBDCs, mandated digital IDs, and social credit scores, which will restrict your opinions, movement, and ability to make a living and feed yourself.

When you grasp the almost incomprehensible malevolence of their end game, you begin to understand the seemingly insane choices being made on our behalf by those pulling the strings of our political, financial, and social institutions. The developed nations of the world have cumulatively added $100 trillion of debt since 2020, even as the demographics of their countries are incapable of servicing that debt. To exacerbate this recklessness, they all simultaneously flooded their countries with third world savages in order to overwhelm their social welfare systems and tear apart the social fabric of their societies.

The planned and coordinated covid plandemic, which successfully forced 70% of the global population to be injected with a toxic, gene altering, cancer and myocaditis causing death potion, has accomplished more than our overlords could ever imagine. It proved Huxley’s supposition that the slaves would come to love their servitude. Even as turbo cancers, heart attacks, and other issues created by the spike protein damaging their bodies, the vaxxed refuse to believe they were poisoned by their own government and medical establishment. The vaxxers still worship Fauci, even though his own texts and emails prove him to be a mass murderer. This phase of the depopulation agenda is underway and will ultimately eliminate hundreds of millions from the gene pool.

When Russia and Ukraine were about to conclude a peace agreement in March 2022, Boris Johnson was sent to Zelensky by his globalist controllers in order to insure the war would continue and expand. Four and a half years later, the US/NATO continue to wage their proxy war against Russia in an effort to weaken Putin, drive the price of oil and natural gas higher, exacerbate the global food crisis, and goad Putin into starting WW3.

The U.S. sneak attack of Iran, under the false pretenses of an imminent development of nuclear bomb by Iran, on behalf of Israel (because they have incriminating info on Trump from the Epstein files), has accomplished the feat of creating a global economic catastrophe, with soaring oil prices, and shortages of fertilizer, natural gas, diesel, and rare earth minerals necessary to produce the technology needed to run our world.

When you see Trump and his minions sanctioning the world, while threatening tariffs, kidnapping presidents, manipulating the oil, stock, and bond markets, you come to the realization Trump has been installed to initiate the global collapse, which they believe will usher in the final solution for the pesky peasants consuming too much of the world’s resources.

Once the economic and financial collapse wipes out the remaining wealth of the middle class, the masses will be clamoring to be saved by their overlords, who will “generously” provide their CBDC “solution” to the collapse they purposely created. The collapse is baked into this cake made of debt and there is no avoiding the disastrous outcome. They will solidify their stranglehold on the global wealth, increase their control over resources, and force the masses into their techno-gulag.

If you don’t sense the extreme acceleration towards this dark dystopian future, then you aren’t paying attention, are trapped in your cognitive dissonance, or are one of the highly paid henchmen promoting the new world order headed our way.

The almost desperate roll-out of thousands of data surveillance centers is because their techno-gulag world will require almost unthinkable data processing power to track every person on the planet; record our movements, spending, social media interactions, and conversations; and dole out punishment (disabling your auto, disabling your credit cards, freezing your bank accounts) to the dissidents (formerly known as conspiracy theorists and anti-vaxxers). The rapid roll-out of flock cameras across the country is a key component of their techno-gulag plan. They want to have the technology in place before the financial collapse. It’s a race to the finish.

Knowing we are in the final phase of this Fourth Turning should have given me an idea of how bad it would get, but the realization of how malicious, immoral, and satanic the Epstein pedophile class is proving to be, is stunning to behold. We are in the midst of an existential battle against diabolical evil for the future of humanity. Losing will mean an end to the freedoms and way of life we have experienced for 250 years.

Sixty years ago Carroll Quigley revealed the invisible hands controlling the system, and now they are pulling out all the stops in implementing their plan to make sure we own nothing and they own it all. We are experiencing the tragedy. Hope won’t be enough to win against such a determined enemy.

“The powers of financial capitalism had another far-reaching aim, nothing less than to create a world system of financial control in private hands able to dominate the political system of each country and the economy of the world as a whole. This system was to be controlled in a feudalistic fashion by the central banks of the world acting in concert, by secret agreements arrived at in frequent meetings and conferences. The apex of the systems was to be the Bank for International Settlements in Basel, Switzerland, a private bank owned and controlled by the worlds central banks which were themselves private corporations. Each central bank…sought to dominate its government by its ability to control Treasury loans, to manipulate foreign exchanges, to influence the level of economic activity in the country, and to influence co-operative politicians by subsequent economic rewards in the business world.” ― Carroll Quigley, Tragedy and Hope: A History of the World in Our Time, 1966

If you want a future for you children and grandchildren, you will need to step up now and do whatever you can to throw a monkey wrench into the gears of their data centers. Good luck and Godspeed.

We publish a variety of perspectives. Nothing written here is to be construed as representing the views of ZeroHedge.

Tyler Durden Thu, 08/27/2026 - 16:20

Alberta Premier Rejects Using Oil As A Weapon Against Trump

Authored by Charles Kennedy via OilPrice.com,

Alberta's Premier Danielle Smith has rejected the idea of slapping export taxes on crude oil exports to the United States in retaliation for the Trump administration's tariff salvo against Ottawa, saying they would be damaging to Canada.

Alberta Premier Danielle Smith speaks at the Canada Strong and Free Network in Ottawa on Thursday, March 23, 2023. (THE CANADIAN PRESS/Sean Kilpatrick)

"Although I understand the need to respond strongly to these tariffs, I cannot think of a more disastrous policy decision than cutting off or taxing Alberta's oil to the United States," Smith said as quoted by Global News, adding that the move would trigger a disproportionate tariff response from the United States that could hurt the Canadian economy.

"It would not only extinguish the livelihoods of hundreds of thousands of Albertans, it would economically hobble our friends and neighbors in other provinces to the east," she said, warning of millions of jobs getting lost as a result of the tariff war.

Alberta exports about 4 million barrels of crude oil daily to the United States. Last year, the total value of these exports stood at about $80 billion. Trump has so far not threatened tariffs on crude oil coming from Canada but, according to Smith, this could change if Canada itself decides to use oil exports as a weapon in the tariff war.

As for the possibility of threatening the U.S. with a suspension of oil exports, Smith suggested this would be an even worse idea. "The United States would, of course, respond and cut off all gasoline and diesel from their refineries to Ontario and Quebec, right as we turn into fall and winter," she told media.

Smith also said the U.S. could replace Canadian crude with crude from Venezuela, as a result of which Alberta would in turn lose its biggest oil buyer. This may be theoretically true, but with Venezuela's oil production at barely above 1 million barrels daily and not all of that going to U.S. refineries, such a replacement is quite unlikely in the medium term.

Tyler Durden Thu, 08/27/2026 - 15:40

Army's Project Janus Selects Five Reactor Companies For Rapid Development

The US Army's Project Janus, which we detailed at length back in November, has selected its initial batch of reactor developers to bring advanced nuclear energy to Army installations to ensure resilient and ready power. 

BREAKING: The first fully operational commercial nuclear microreactor will be deployed at a U.S. Army installation in 2028.

To achieve this, the Army has awarded a combined $2.2 Billion to five competing commercial companies.

— Jeff Waksman (@Waksman84) August 26, 2026

The program is looking to move reactor developers through their first-of-a-kind and second-of-a-kind designs at breakneck speeds with the goal of “bending metal as quickly as possible”.

The following companies have been selected to participate under Project Janus:

• Antares Nuclear
• BWXT Advanced Technologies
• General Atomics Electromagnetic Systems
• Radiant Industries
• Westinghouse Government Services

The nuclear industry has suffered from decades of atrophy with little to no new nuclear construction to incentivize the manufacturing industry to invest in supply lines to support the build-out of a new national nuclear program. Project Janus looks to assist with revitalizing the commercial nuclear industry while also benefiting by harnessing the reliability of nuclear energy to enhance the abilities of the armed forces. 

Principal Deputy Assistant Secretary of the Army for Installations, Energy, and Environment, Dr. Jeff Waksman, who is also a program lead for Project Janus, has remarked in recent interviews that reactor developers will be constructing and operating their reactors on various Army installations across the U.S. and will be compensated for the achievement of various milestones related to successful construction and operation of their reactor designs. 

$2.2 billion has been set aside by the Army and the Department of War Innovation Unit for milestone-based awards. Project Janus is aiming for their first operational reactor by September 2028.

Dr. Waksman has also provided estimates in multiple interviews for the price expected to be paid by the Army for power purchase agreements, with prices as high as $0.20-$0.30 per kilowatt hour. This price will vary greatly depending on location and use case. 

In addition to receiving milestone awards, reactor developers also have the opportunity to move through a faster regulatory pathway than the traditional NRC pathway, similar to how a lot of the developers have been moving through the DOE pathway under the Reactor Pilot Program. 

This will enable companies to demonstrate the operation of their design to investors and potential commercial offtakers. There has also been discussion of the potential for offtake agreements from the military bases for the first and second-of-a-kind reactors that are built under the program.

Tyler Durden Thu, 08/27/2026 - 15:20

Trump Officially Renames Lake Ontario To "Lake America"

Now, on to important matters... 

On Thursday, US President Donald J. Trump renamed Lake Ontario to Lake America, a move he's been teasing in recent days on Truth Social - including writing that America doesn't "expect to be doing much business with Ontario any longer" amid an ongoing trade spat with Canada. 

On Tuesday, Trump posted an image of the lake with 'Lake Ontario' crossed out and 'Lake America' above it - with an American flag on the Canadian side.

"The United States is the greatest protector of the Great Lakes, including the body of water currently known as Lake Ontario," Trump wrote in the EO, adding "The Lake will continue to play a pivotal role in shaping America's future and the global economy. In recognition of this flourishing economic resource and its critical importance to our Nation's economy and its people, I am directing that the Lake officially be renamed as Lake America." 

The order directs Interior Secretary Doug Burgum to update the Geographic Names Information System (GNIS) within 30 days, and requires all federal government references to the lake refer to it as "Lake America." 

Approximately 47% of the lake lies within the US. 

Tyler Durden Thu, 08/27/2026 - 15:00

New Jersey May Pay Home Battery Owners To Help Grid When Demand Surges

New Jersey officials are weighing a plan that would allow homeowners to use batteries as emergency energy backups and a way to earn extra money. Under the proposal, storage systems installed at customers' homes could join a virtual power plant program, helping the grid when electricity demand surges and paying participants for taking part.

On July 15, the New Jersey Board of Public Utilities issued a straw proposal for a two-year, technology-neutral VPP. The state's electric distribution companies would oversee it, and it would need to launch no later than July 1, 2027 Utility Dive reported.

In its transitional form, the Cool Down notes that the program would cover customer-sited batteries as well as other distributed energy resources. Officials are also looking ahead to a market-based, open-access VPP tariff for 2029 and beyond. Where rules allow, participants could combine payments for local grid services with wholesale market revenue from PJM Interconnection.

For NJ residents curious what a battery setup could look like for your own home, it may be worth exploring EnergySage's free tools to compare home battery storage options and get competitive installation estimates. EnergySage has teamed up with the electrification brand Qmerit to guarantee you get the best price on home battery storage solutions. Those who want a small-scale backup option, Pila is worth checking out. Its plug-and-play batteries are priced at a fraction of what whole-home backup systems cost.

For homeowners, battery storage is one of the best tools for riding out blackouts because it can keep critical equipment such as lights, refrigerators, medical devices, and internet service operating when grid power fails.

Batteries can also trim power bills by saving solar energy or low-cost electricity for use later, and they can help households move closer to off-grid living or rely less on their utilities.

As opposed to large power plants, VPPs let utilities and grid operators draw on many smaller devices at the same time. That can ease pressure on a grid during peak-demand periods and reduce pollution derived from fossil-fuel-based plants.

The BPU said any program should be guided by principles including fair design, technology-neutral rules, equal access for aggregators, and coordination among programs so participants are not compensated twice for the same service, Utility Dive reported.

The straw proposal carries out a directive in Executive Order No. 2, which Gov. Mikie Sherrill issued in January. It called for a VPP program to be created within 180 days and pushed for broader participation by distributed energy resources in the PJM Interconnection capacity market. At a July 30 stakeholder meeting, Tim Fagan, manager for planning and evaluation at Public Service Enterprise Group New Jersey, said the utility is developing a VPP offer that would include an upfront incentive of roughly $5,000 for an 8-kilowatt residential battery.

Participants could cover the remaining installation cost through an on-bill repayment program if they agree to allow a battery to discharge during peak-shaving events, Utility Dive reported.

Andrew Bayne, manager for energy efficiency programs at Pepco Holdings, said Delmarva Power's Delaware "bring your own battery" pilot is providing participants with an estimated $1,080 per year in performance payments sent by direct deposit instead of bill credits.

Such programs are examining how often batteries can be dispatched, which compensation level is enough to keep customers enrolled, and how straightforward the signup process must be for household participation.

Bayne said utilities still need to know whether "that juice [is] worth the squeeze for the customer — is that $1,000 a year worth it? … These devices behave differently when you call upon them."

In the latest update, UtilityDive reports that eligible customers of Atlantic City Electric, Jersey Central Power & Light, Public Service Electric & Gas and Rockland Electric could receive up to $200/kW per year over a 10-year term to dispatch energy stored in small-scale batteries during periods of grid stress under the procurement proposed last week by the New Jersey Board of Public Utilities.

The proposal targets up to 150 MW of behind-the-meter energy storage capacity that can reliably discharge during dispatch events called by the four electric distribution companies, which will administer capacity enrolled in their service territories. The BPU will host a virtual stakeholder meeting on Sept. 3 to solicit feedback.

The procurement is the first capacity block of the second phase of the Garden State Energy Storage Program, a statutory framework that requires New Jersey to deploy 2 GW of bulk and distributed energy storage capacity by 2030. The BPU is halfway to meeting that goal after procuring a combined 1 GW of transmission-connected storage in the program’s two-block first phase earlier this year.

In a statement, BPU President Ben Hertz-Shargel tied the Aug. 17 proposal to an executive order signed by Democratic Gov. Mikie Sherrill shortly after taking office on Jan. 20. It directed the BPU to issue solicitations for new solar and storage capacity and to begin developing a virtual power plant program open to third-party energy suppliers.

“The Garden State Energy Storage Program advances Governor Sherrill’s Executive Order No. 2 by growing energy storage deployments in-state to meet growing energy demand while improving affordability and resilience,” Hertz-Shargel said.

Residential and small commercial batteries would be eligible to participate in a temporary, technology-neutral VPP program that will begin next year and run for two years before transitioning into a market-based, open-access VPP tariff in 2029, the BPU said last month in a separate straw proposal. 

The BPU refers to the capacity discussed in last week’s straw proposal as “Distributed Storage Capacity Block 1.” Its primary objective is to reduce peak demand on New Jersey’s electric distribution system through coordinated discharge, which “will help avoid future capacity obligations and system costs, thereby accruing savings to all residential customers,” according to the straw proposal.

The proposal envisions the four electric distribution companies calling dispatch events to mitigate local congestion, distribution-level thermal constraints and other abnormal grid conditions. The BPU said it looked at similar programs in other states and conducted its own gap analysis to arrive at the $200/kW maximum annual incentive, which it said factors in “the private resilience value of residential energy storage systems.”

“This decision reflects [BPU staff’s] assessment that many consumers have some willingness to pay for resilience and thus do not require an incentive high enough to render the net cost of battery back-up power [to] zero,” the BPU said.

Tyler Durden Thu, 08/27/2026 - 14:40

Follow The Risk

Via SchiffGold,

Tracing the distribution of risk is an important method that is helpful for understanding the trade-offs of any government action. Almost every government action reduces risk for some group and repackages the risk and forces another group to bear it. The government often serves as a hedge against risk, but it is important to understand who the payer is and what the costs are before blindly signing off on state control. The most common form of risk relates to the concept of "concentrated benefits, dispersed costs." Small groups like farmers or steel producers can hedge against industry risk by receiving benefits that are spread across the entire American tax base. The inverse of this problem is when small groups must make large sacrifices to reduce the overall risk of the total population. There are few situations where government risk management is worth it, and most of them are when the repackaged risk is paid fairly by those who receive the benefit. Growth in government risk management both incentivizes more risk and particularly damages those who avoid creating risk.

"Concentrated benefits, dispersed costs" is a phrase that describes the incentives behind targeted government industry policy. Because some groups are compact and organized with a compelling reason to coordinate, they are able to present their story clearly and effectively to government actors. The taxpayers who will pay for the benefits transferred to the special interest groups are not able to easily coordinate and they have no compelling reason to, as the burden of each individual is relatively small when compared to the cost of coordination.

When industries like banking or agriculture face large risks and can convince the government that it is needed to protect them, the industries are able to turn their risk into a guaranteed cost for taxpayers. This makes businesses less responsible, increasing the risk, and putting them into conflict with the people who involuntarily bear their risk. This problem only continues to worsen over time as the government grows and more industries recognize the benefits of state protection. Particularly when industrial failures already damage the nation, forcing taxpayers to insure them even in times of stability only deepens the problem.

Another form of risk redistribution is when many individuals shift their risk to smaller groups. One obvious example of this is when equity investors and businesses advocate for lower interest rates at the expense of those with heavy positions in bonds and cash. Inflation simply turns the risks of those with higher demand for present consumption into a guaranteed cost for those with a preference for future consumption. Many regulations make producers responsible for any problems with their products, which reduces customer risk, but damages customers in the long run as producers on the margin often leave the market. Although some of these government actions might make a specific problem better in the short term, they are extremely dangerous, as they put the few at the mercy of the many. Although this occurs most saliently with financial and economic risk, the expansion of the state may take risk redistribution to areas of life with much more troubling consequences.

An expanded welfare state may lead to the promotion of assisted suicide, and other violations of life, for those with a high risk of large medical costs. Risks are best borne by those who create them, as they have enough information to take on risk intelligently. While the voice of the majority can call for government-funded insurance in all areas of life, they cannot change the nature of risk.

The fundamental purpose of government is to create institutions that manage the existential risks that no set of private individuals would be interested in or able to manage. Most of the risks that the government manages against are far from existential, and even more of them would be solved by the market if given enough time and institutional stability. The government is most capable when it manages risks that are experienced by all and turns them into a financial burden shared by the same group. National security and the protection of property rights are two examples of risk prevention where something borne by every citizen is turned into a financial cost for the tax base. While not every citizen contributes equally to the prevention of these risks, every American benefits from them. Whenever a new risk concerns the public, examine how quickly it becomes a government responsibility to fix it.

Evaluate to whom the proposed solution is shifting the risk. Is the benefit of risk prevention worth the guaranteed cost? Do those creating the risk contribute fairly, or will they merely be incentivized to create more risk?

Tyler Durden Thu, 08/27/2026 - 14:20

Qatar And Kuwait Restore 70% Of Pre-War Oil Exports Through Hormuz

Authored by Tsvetana Paraskova via OilPrice.com,

Qatar and Kuwait have managed to boost their crude oil exports from the Strait of Hormuz to 70% of pre-war levels as they followed the United Arab Emirates in shuttling oil through the chokepoint and using ship-to-ship transfers in the Gulf of Oman, anonymous traders told Bloomberg on Thursday.

Before the Middle East conflict, Qatar and Kuwait collectively exported about 2 million barrels per day (bpd) of crude oil via the Strait of Hormuz.

They don't have alternative routes as Saudi Arabia and the UAE do, and struggled to ship oil out of the Persian Gulf in the first couple of months of the conflict.

But around June, Kuwait and Qatar began shuttling crude out of Hormuz and offered it for transfers outside the chokepoint in the Gulf of Oman.

The increasing Kuwaiti and Qatari oil volumes add to the barrels that Saudi Arabia and the UAE have been sneaking through the Strait of Hormuz and on routes bypassing it since the start of the war.

The UAE has managed to boost its oil exports to pre-crisis levels as early as June, as it has kept pushing crude through the Strait of Hormuz and beyond. It has been shuttling crude through the chokepoint to load it on larger vessels outside the Strait, maximizing the use of its onshore pipeline to ship crude from the west to the east of the country, bypassing Hormuz, and shipping tankers through the Strait in dark mode.

Saudi Arabia, for its part, has also started offering STS transfers of Gulf crude outside Hormuz, and has been using the Red Sea and Egypt's Mediterranean ports to bypass the Persian Gulf's chokepoint.

Thanks to the shuttle services and dark activity, total oil flows through the Strait of Hormuz have now risen to about 7-8 million bpd, up from about 4 million bpd in the middle of July, according to Bloomberg's trading sources.

The under-the-radar operations and the Gulf states' creative solutions to the threats in the Strait of Hormuz and the Red Sea have helped keep oil flowing, even if at much reduced rates compared to February levels.

The higher oil volumes exiting the Persian Gulf have kept benchmark crude oil futures in check despite the tightening global fuel markets.

Tyler Durden Thu, 08/27/2026 - 13:40

Average 7Y Auction Stops On Screws As Foreign Demand Drops

A stellar 2Y auction, a subpart 5Y, and it only makes sense that we end the week with a perfectly average sale of $44BN in 7Y bonds.

The last coupon auction of the week priced at a high yield of 4.512%, up from last month's tailing 4.473%, and on the screws with today's When Issued 4.512%. Remarkably, this is the 3rd 7Y auction to price on the screws in 2026 alone, suggesting this tenor may be the most relevant one for market accuracy ahead of the actual auction. 

The bid to cover rose to 2.505, up from 2.486 last month and the highest since May; it was also above the recent average of 2.491.

Internals took a small step back: Indirects were awarded 60.8%, down from 70.2% in July and below the six-auction average of 65.1%. And with Directs taking 27.0%, up from 16.9% last month, Dealers were left with 12.3%, the lowest since May if above the recent average of 11.8%.

Overall, this was a snoozer of an auction and maybe that's for the best one week after the Bessent Buyback Bluff sparked market chaos and turmoil across the entire yield curve. In short: things are mostly back to normal, even if yields on the long-end remain just shy of multi-year highs.

Tyler Durden Thu, 08/27/2026 - 13:21

Dollar General Jumps On "Traffic-Led Momentum" As $4 Gas Accelerates Consumer Trade-Down

Dollar General shares surged 6% in the cash session Thursday morning after stronger customer traffic fueled a second-quarter earnings beat and prompted the discount retailer to raise its full-year outlook.

Jefferies analyst Corey Tarlowe wrote in a first take on earnings that "traffic-led momentum drives another beat."

The discount retailer, with 21,000 stores nationwide, most of them located in low-income ZIP codes, reported second-quarter earnings of $2.48 per share, up from $1.86 a year earlier and well above the Bloomberg Consensus estimate of $2. Revenue increased 5.2% to $11.29 billion, while comparable sales rose 3.5%, exceeding the 2.63% expected by analysts tracked by Bloomberg.

Operating profit in the quarter jumped 29% to $769.2 million, beating the $637 million estimate. Gross margin expanded to 32.6% from 31.3% one year ago and came in well above the 31.7% consensus forecast.

Tarlowe said the results reflected "broad-based category strength" and continued traffic momentum, with customer visits rising 2%.

Dollar General raised its 2027 comparable-sales growth forecast to a range of 2.5% to 2.9%, from a previous range of 2.2% to 2.7%. The retailer now expects earnings of $7.80 to $8 per share, up from $7.20 to $7.45 and also above estimates.

That strength may be a little deceiving and might not signal a healthy consumer. Dollar General's traffic-led growth suggests cash-strapped households continue to trade down.

Last week, Walmart reported that sales were under pressure as lower-income consumers pulled back amid a national average gasoline price above the politically sensitive $ 4-per-gallon threshold and a rising-rate environment.

Wells Fargo analysts remained cautious about whether the discount retailer’s momentum could continue into 2027, even as they described the second-quarter results as encouraging.

Shares are up 6% on the session, breaking above a summer high. 

Meanwhile, Treasury Secretary Scott Bessent told CNBC's Squawk Box earlier this month, "I got sick of hearing about this K-shaped economy. I can say here definitively, the K-shaped economy is over."

Tyler Durden Thu, 08/27/2026 - 13:20

California Senate Passes Bill To Fine Influencers Over Undisclosed Paid Political Posts

Authored by Savannah Hulsey Pointer via The Epoch Times,

The California Senate passed a bill on Aug. 24 to fine content creators who make paid political content without disclosing the compensation.

The legislation, authored by Democratic Assemblymember Marc Berman, will still need a vote in the state Assembly before it reaches Gov. Gavin Newsom's desk.

Assemblyman Marc Berman listens to witness testimony while presenting his Assembly Bill 3209 to the Senate's Appropriations Committe at the Capitol in Sacramento, Calif., on June 17, 2024. Travis Gillmore/The Epoch Times

The governor will have until the end of September to either sign or veto the bill.

"Voters should have a right to know whether or not campaigns are paying for the messaging that they're seeing," Berman said last month.

Both Texas and California require content creators to include disclaimers on political posts. The new legislation is an effort to enforce the law.

Currently, the state's campaign watchdog can request that a court compel an influencer to disclose the monetary connection, but it could take months for the process to reach fruition.

However, Berman's bill would give California's Fair Political Practices Commission the power to fine both influencers and political committees if they violate the law, bypassing the court's involvement.

Creators can face fines of up to $5,000 per violation.

Southern California content creator Dustin Torreverde, who has not been paid for political content, said he believes it is important for influencers to disclose this kind of payment, but is concerned the bill could cause an unfair burden for people in his field.

"A lot of us are very small creators," he said. "So if we were to get penalized and we have to get lawyers, stuff like that, it's going to be very difficult for us."

California's Senate action comes about a month after Sen. Adam Schiff (D-Calif.) introduced federal legislation to require disclosure of the political affiliation of influencers. That bill has not yet been brought up for a vote.

The Promoting Authenticity with Influencer Disclaimer (PAID) Act would give the Federal Election Commission the authority it has pursued for years.

The act would amend the Federal Election Campaign Act to require anyone paid by a political committee or candidate to add a clear disclaimer that they were paid to post the content.

"As more and more information in American life is shared through informal communicators like influencers, we need to recognize the risks of proliferating paid political speech without the guardrails that apply to all other forms of political advertising," Schiff said in a statement.

"An influencer can reach far more than a billboard or even a broadcast ad in 2026, but people deserve the same understanding of who is behind that post and if they are paid for it. The PAID Act is a bicameral solution to apply the same bipartisan standards we've applied to other advertising to this new class of political speech."

Rep. Mark Takano (D-Calif) authored the House companion legislation.

"Our social media feeds must be fixed," he said in a statement.

"Users deserve to know if a creator has been compensated by a campaign to post for them. Senator Schiff and I introduced the PAID Act because current campaign disclosure laws have not kept up with this new creator economy, and voters deserve to know who is financing their feeds before they vote."

The Associated Press contributed to this report.

Tyler Durden Thu, 08/27/2026 - 13:00

Zinc Hits Four-Year High As "Extremely Thin" Physical Supply Fuels Squeeze

Zinc futures in London are headed for their largest monthly close since January, with prices hitting four-year highs this week amid tightening physical supplies.

London futures for the industrial metal initially gained as much as 1% before reversing course. Zinc fell .8% to $3,861 a ton as of 11:40 a.m. local time, halting a seven-day rally.

Despite the pullback, zinc's physical market remains extremely tight.

"Supply constraints boosting zinc: Zinc price has risen 31% since March to $3,966, driven by declining mine output, operational disruptions (fires, delays, and lower grades), and limited project development outside China," Jefferies analyst Sagar Sahu wrote in a note on Tuesday.

Sahu added, "ILZSG, international association for zinc & lead, has revised its 2026 global zinc market forecast to a 19kt deficit vs a 271kt surplus earlier. We raise our FY27-28E zinc price assumptions to $3,615-3,700, still 7-9% below spot prices."

Guangzhou Futures analysts separately noted, "Available physical liquidity is at extremely thin levels" on the LME, adding, "Before mine output recovers materially, smelting costs will provide a strong floor for zinc prices."

Zinc's cash-to-three-month spread widened into backwardation of more than $190 per ton on Thursday, after approaching $200 per ton on Wednesday, the steepest since December.

According to Fastmarkets, treatment charges, the fees miners pay smelters to process ore into zinc metal, have fallen as low as minus $110 a ton. This comes as ore shortages force smelters to compete for concentrate. Persistent negative fees could pressure smelter margins, trigger production cuts and deepen the supply squeeze.

Similarly, copper futures in London are showing signs of supply stress, including widening short-term spreads, low inventories, and negative treatment charges. Potential US import tariffs have been among the main drivers, forcing traders to redirect shipments toward the US and reducing availability elsewhere.

Last week, veteran commodities strategist Jeff Currie warned in a series of X posts:

Wake up, folks. Commodities are telling you something, and yesterday the Treasury confirmed it.

Scarcity in the physical world. Repression in the financial one. Scarcity pushes prices up. Repression holds yields down. The gap between them is the debasement.

Commodities are the only asset class that wins on both sides. The structural case for commodities has been turbocharged.

Read more about what Currie had to say about commodities here.

Tyler Durden Thu, 08/27/2026 - 12:40

"Citizens Want Political Turnaround": AfD Now Polls At 43% Across Eastern Germany

Building on Nomura analyst Andrzej Szczepaniak's note from earlier this week, which forecasts that right-wing parties are positioned to make electoral gains across Germany, France, Spain, Switzerland, and the UK over the next 18 months, new polling data from Germany further suggest that Alternative for Germany (AfD) is performing exceptionally well as citizens demand political change after years of failed progressive experiments that encouraged a Third World migrant invasion and nation-killing deindustrialization trends.

AfD co-leader Alice Weidel cited new polling data on X from a Forsa survey showing that, if a federal election were held now, eastern German voters would choose:

• AfD: 43%
• The Left: 16%
• CDU/CSU: 13%
• Greens: 9%
• SPD: 9%
• FDP: 3%
• Other parties: 7%

Weidel said, "According to a recent Forsa survey, the AfD is at 43% across the entire East, while the CDU is down to just 13%. The citizens want the political turnaround!"

Einer aktuellen Forsa-Umfrage nach liegt die AfD im gesamten Osten bei 43%, während die CDU auf nur noch 13% kommt. Die Bürger wollen die politische Wende!https://t.co/c94bESp3Qu pic.twitter.com/lrKvllJCAa

— Alice Weidel (@Alice_Weidel) August 26, 2026

The key takeaway from the new survey is that the AfD is polling at more than three times the level of the center-right CDU/CSU and exceeds the combined support of the CDU/CSU, SPD, and Greens.

German weekly newspaper Junge Freiheit commented on the new survey, saying, "The numbers are particularly interesting ahead of the upcoming state elections in Saxony-Anhalt on September 6th and in Mecklenburg-Western Pomerania two weeks later."

The outlet continued, "The assessment of Chancellor Friedrich Merz's (CDU) performance remains abysmal across Germany. As in the previous week, only 13 percent of those surveyed expressed satisfaction, while 85 percent were dissatisfied."

Elon Musk has previously stated, "AfD is the only hope for Germany."

AfD is the only hope for Germany https://t.co/6ONn1LOipE

— Elon Musk (@elonmusk) August 19, 2026

One reason German citizens are particularly frustrated is that Europe's economic engine is collapsing, with Volkswagen Group labor representatives warning earlier this week that as many as 140,000 jobs could be cut at the struggling automaker.

Circling back to Szczepaniak, the Nomura analyst wrote, "Five years ago, financial markets would not have seemed so at ease with such a prospect. But then again, these populist right-wing political parties were previously not so fiscally prudent as they are perceived to be today."

He added, "Now, if anything, financial markets are much more concerned about populist left-wing parties being elected due to their desire to increase spending, often paid for through higher borrowing or higher taxes, which are likely to shut the engine off of already stuttering economies."

EU Election Roadmap 

Read Nomura's assessment of Europe's changing political landscape here.

Tyler Durden Thu, 08/27/2026 - 12:00

RFK Jr. Says Pennsylvania Officials May Have Fabricated Measles Deaths

Authored by Zachary Stieber via The Epoch Times,

Health Secretary Robert F. Kennedy Jr. said on Wednesday that officials in Pennsylvania may have made up deaths that they described as associated with measles.

Health and Human Services Secretary Robert F. Kennedy Jr. at the Hubert Humphrey building in Washington on August 10, 2026. Travis Gillmore/The Epoch Times

The Pennsylvania Department of Health and Pennsylvania Gov. Josh Shapiro said on Wednesday that Pennsylvania had recorded the first deaths related to measles in 35 years.

"The announcement appears to have been premature, and the deaths may even have been altogether fabricated by one of the Governor's hopeful staffers," Kennedy wrote in a post on X. "The Lancaster County Coroner says that it has no record of any measles deaths. State law requires that all measles deaths be reported to the coroner."

Lancaster County Coroner Steve Diamantoni told news outlets and a county commissioner that his office had not handled any deaths from measles. The office did see an infant who died shortly after birth from spleen laceration, and an autopsy determined that the primary cause of death was the laceration, Diamantoni told the Philadelphia Inquirer.

The pathologist who conducted the autopsy did not feel the death was related to measles, the coroner said. The office, which declined to comment to The Epoch Times, is still investigating the cause of the ruptured spleen.

Kennedy also told reporters in an unrelated press conference in Florida that Pennsylvania officials had not provided information about the deaths to the Centers for Disease Control and Prevention.

"We're trying to figure out ... who those deaths were and whether they actually happened," he said.

Both individuals who died tested positive for measles prior to their deaths and were not vaccinated, according to the Pennsylvania Department of Health. One was an infant, the agency said, pointing to Diamantoni's comments.

The agency said it uses the term "measles-associated" for deaths "when laboratory or epidemiologic evidence of measles is present, but the disease may not be assessed by the medical certifier or coroner to be the immediate cause of death."

Dr. Debra Bogen, Pennsylvania's health secretary, said, "As a pediatrician with more than 30 years of caring for children, I have thoroughly reviewed the case investigation information and sadly can confirm that there were two recent measles-associated deaths in Lancaster County, which were reported to the CDC's measles response team early Tuesday morning."

Pennsylvania officials have not disclosed any additional details about the second death beyond the person testing positive for measles and being unvaccinated. Bogen and her department did say that not all deaths are referred to a coroner under Pennsylvania law.

A thin-section transmission electron micrograph (TEM) reveals the ultrastructural appearance of a single virus particle, or "virion", of measles virus. CDC via Getty Images

State law says that any deaths "known or suspected to be due to contagious disease and constituting a public hazard" shall be investigated by a coroner.

State officials also encouraged people to take the measles, mumps, rubella (MMR) vaccine after announcing the deaths.

"This illness and death from measles is completely preventable," Shapiro told a briefing in Lancaster on Wednesday.

The minimum age for the MMR vaccine is one year, according to the CDC, although officials in Pennsylvania and some other states allow vaccination as early as six months of age for babies in measles-outbreak areas.

A person walks past a sign at a health center where the measles, mumps, rubella (MMR) vaccine is administered in Lubbock, Texas, on Feb. 27, 2025. Ronald Schemidt/AFP via Getty Images

The deaths were the first associated with measles reported in the United States this year. Three were reported in 2025. Local doctors said those deaths were due to measles, but Kennedy has said the people were already sick, including a girl who was already suffering from mononucleosis.

Lancaster County Commissioner Josh Parsons, a Republican who first highlighted comments from the county coroner, said in a post on X that the information about the infant's death showed it was with, not from, measles. He also said that state officials should release information on the other death that was described as associated with measles.

"The people of Lancaster County deserve to have transparency over whether there were actually two measles deaths or not," Parsons said.

Tyler Durden Thu, 08/27/2026 - 11:40

Stalemate, Not Checkmate

Bas van Geffen, senior macro strategist at Rabobank

Stalemate, not checkmate

CIA Chief Ratcliffe’s 15-minute dialogue in Moscow was reportedly an elevator pitch warning Russia not to support Iran, and not to attack NATO.

Peace talks between Russia and Ukraine are at a dead end, and Ukrainian attacks on Russian economic infrastructure – including refineries and large online retailers – are increasingly putting pressure on President Putin. So, Moscow is preparing to escalate its assaults on the country. Russian military presence in Belarus is building up, which could reopen a front towards Kyiv.

Moreover, Putin considers Ukrainian attacks as NATO strikes because the weapons were supplied by the alliance. If Putin were to attack any of the Baltic states, NATO either triggers article 5 and attacks Russia, or it doesn’t. Who knows where either option leads. Escalation would spread the US’ resources thin, after reports that its defence industry is already struggling to replenish the missiles fired in the Iran war. But not doing so would effectively undermine NATO, and Europe’s security architecture.

That’s all still a hypothetical that markets can ignore for now, but the Ukrainian strikes are adding pressure to the energy complex. Ukraine forced another outage at the second-largest Russian gasoline producer, and Moscow will extend the diesel export ban through September according to Reuters’ sources. These supply shocks add to the disruptions from the Iran war.

So, several central banks are now flagging tighter policy to stop the energy shock from transforming into broader-based price pressures. Yesterday, Schnabel said that the ECB must raise rates further to prevent second-round effects early on.

The Bank of Japan’s Himino argues for a similar pro-active approach as inflationary pressures are picking up, to avoid that policymakers need to hike more aggressively later. And yesterday’s high Australian inflation print is adding to speculation that the also RBA may need to raise rates again soon – we still have a hike pencilled in for November, but the inflation print could accelerate policymakers’ timeline if it is confirmed by other incoming data.

As we’ve flagged before, time is not on central bankers’ side. The longer the Iran war lasts and the longer disruptions in energy markets persist, the stronger the inflationary impact will be.

The Qatari prime minister will travel to Tehran today to try to revive the dialogue between the US and Iran. However, the US’ change of pace to low-scale military conflict and economic warfare reduces the odds of a quick resolution. The Justice Department is preparing to revive prize courts, to improve the efficacy of the US naval blockade.

Protests and panic buying of food and fuel indicates that the war is starting to take a real toll on the Iranian population. Yet, the US may not succeed in isolating Iran economically without the support of other economic superpowers – including China. China’s ongoing trade relationship with Iran may be just enough for the country to hang on. So, a Ukraine-Russia style stalemate looks increasingly more likely than a checkmate.

This also means that oil markets continue to rely on inventories to fix a flow problem. Our energy strategists have raised their forecasts for Brent and WTI crude. But they believe that this will particularly be a problem in refined products, where refinery throughput is a key constraint.

Tyler Durden Thu, 08/27/2026 - 11:00

Viral Sensation Ox Alpha Model Revealed As GLM-5.3-Flash, Running Entirely On Chinese Chips

China’s Z.AI (Zhipu) confirmed it’s responsible for the viral - and mysterious - Ox Alpha AI model that swept to the top of online usage charts this weekend, pushing its shares up as much as 12% on Thursday. The Beijing-based company said it intends to price use of the model, now called GLM-5.3-Flash, at $0.15 per million input tokens and $0.50 per million output tokens, or units of artificial intelligence work. That puts it alongside DeepSeek in the class of low-cost, very high-efficiency models that are attracting users away from premium-tier offerings from the likes of Anthropic PBC.

As part of the reveal, Zhipu AI launched its latest open-weight model, GLM-5.3-Flash, f/k/a Ox Alpha, saying that the system ran entirely on a cluster of 100,000 domestically produced chips during a high-profile stealth trial.

In other words, not only is China dominating the open-weight model, it will soon dominate the hardware the is used to run it, precisely as we warned a week ago.

With open model token prices rising, one can guess what is going on at Anthropic and ChatGPT.

What happens when China floods the world with cheap Ascend chips to power the Chinese open models https://t.co/8u0zDGUgwM pic.twitter.com/NGn3T78UOo

— zerohedge (@zerohedge) August 13, 2026

Following the news, Zhipu’s shares closed more than 12% higher at HK$1,160 in Hong Kong on Thursday.

“What GLM-5.3-Flash confirms is a pattern that is no longer surprising — Chinese labs shipping near-frontier open models at a fraction of the Western price,” said Dermot McGrath, founder of Shanghai-based consultancy ZenGen Labs.

The announcement followed a week of heavy traffic on artificial intelligence model marketplace OpenRouter and agent platform OpenCode, where the model processed 62 trillion tokens before its formal release on Wednesday, according to Zhipu.

On OpenRouter, the system processed more than 23 trillion tokens in its first six days, making it the platform’s biggest launch to date.

Ox Alpha, as it was initially known, emerged over the weekend as an uncredited release on OpenRouter - the biggest launch in that marketplace’s history - and quickly gained traction among curious observers and users. It’s a reasoning model designed for coding and agentic tasks, and it can process text, image and video input, according to its description. The model is not far off from Anthropic’s Opus 4.8 on coding and agentic capabilities, Z.ai said in a blog post.

The deployment marks a significant test of China’s ability to handle large-scale global inference workloads on home-grown hardware, as Beijing seeks to reduce reliance on advanced processors from Nvidia amid tight export controls.

During its preview, Ox Alpha rapidly surged to the top of global usage rankings. According to OpenRouter data on Thursday, the model ranked first among coding systems on the platform, accounting for 10.3 trillion tokens, or nearly 31 per cent of its total weekly volume.
To overcome the lower memory capacity and bandwidth of individual Chinese chips compared with top-tier Nvidia graphics processing units, Zhipu – which operates internationally under the Z.ai brand – said it built a specialized inference engine that split processing stages into independently managed computing pools.

The firm said these architectural adjustments tripled end-to-end serving performance from its initial baseline, bringing hardware efficiency and per-token costs on par with mainstream Nvidia accelerators. The claims have yet to be independently verified.

While Zhipu did not name specific chip suppliers for this cluster, it has previously collaborated with top domestic semiconductor developers, including Huawei Technologies, makes of the increasingly popular Ascend chip, Cambricon Technologies and Moore Threads.

Cambricon said on Thursday it had achieved “Day 0” compatibility to serve GLM-5.3-Flash. Moore Threads said it also achieved “Day 0” support for the new model.

Featuring 320 billion total parameters, GLM-5.3-Flash activated just 18 billion per request to reduce computing overhead, according to Zhipu. It is also the first model in the GLM-5 series to natively process visual information alongside text.

Benchmarking firm Artificial Analysis gave the model a score of 57 on its Intelligence Index, placing it 10th globally and third among open-weight models, trailing Moonshot AI’s Kimi K3 and Alibaba Group Holding’s Qwen3.8 2.4T A95B.

Zhipu is touting aggressive pricing to win over international developers, offering GLM-5.3-Flash at 1/10th the rate of standard GLM-5.3 – dropping to 1/20th under a limited promotion. It claimed the new model cost about 1/40th as much as Anthropic’s Opus 4.8 at comparable intelligence levels.

Despite heavy traffic during the free trial, early developer feedback was mixed. While users praised the model’s ability to debug complex code – a community test showed that it solved 28 per cent of 175 LiveCodeBench problems – others reported occasional hallucinations, dropped tasks and sluggish generation. Artificial Analysis similarly noted that GLM-5.3-Flash’s output speed trailed the industry average.

Zhipu has released the model weights globally and integrated GLM-5.3-Flash across its application programming interface, ZCode platform, and GLM Coding Plan.

The launch coincides with intensified competition in China’s open-source ecosystem.

Separately, on Wednesday, Alibaba released Qwen3.8-Flash-Next, a multimodal preview of Qwen4 that it said activated 6 billion of its 125 billion parameters to similarly drive down inference costs. Alibaba owns the South China Morning Post.

Tyler Durden Thu, 08/27/2026 - 10:45

Democrats Challenge Trump's Mail-In Voting Order Despite Recent SCOTUS Ruling

Twenty-three Democratic attorneys general and the District of Columbia filed suit against the U.S. Postal Service on Wednesday, challenging a rule that limits who can receive an absentee ballot in the mail.

They filed the complaint in the U.S. District Court for Massachusetts two days after the Supreme Court allowed President Trump’s executive order on mail-in voting to proceed while the underlying case continues.

The Supreme Court ruled that the states had sued before the order’s implementation, giving them a concrete rule to fight.

“The Court’s disposition of this application does not mean that any measure taken by the Government to implement the Order will necessarily be lawful. On that score, time will tell,” the majority wrote in its order.

The liberal wing of the court dissented.

"Today's decision does not address whether the President's attempts to interfere with States' administration of the November 2026 elections are lawful," Sotomayor wrote in her dissenting opinion.

"Nor does it suggest that the Executive Branch has any constitutional or statutory authority to implement the President's directives."

The Court did leave open a narrower path: a challenge grounded in the Postal Service’s actual rule rather than the order that spawned it. Wednesday's lawsuit takes that path. 

Trump’s executive order requires the United States Postal Service to match every mail ballot against a federal list of eligible voters before being sent out. While it looks like commonsense election integrity to most, Democratic state officials argue that such a list effectively gives the Trump administration control over who receives a ballot ahead of November, a role the states insist belongs to them. A dozen Republican-leaning states, who filed their own brief in that appeal in support of the federal government, noted that the rule still gives states the role of shaping the final voter lists.

California Attorney General Rob Bonta is leading the suit along with the attorneys general of Nevada, Washington, and Massachusetts. The full plaintiff list runs longer: Arizona, Colorado, Connecticut, Delaware, Hawaii, Illinois, Maine, Maryland, Michigan, Minnesota, New Jersey, New Mexico, New York, North Carolina, Oregon, Rhode Island, Vermont, Virginia, and Wisconsin all joined, along with the District of Columbia. Pennsylvania Gov. Josh Shapiro, a Democrat, also appears as a plaintiff.

The states argue that the Constitution places responsibility for regulating elections with them, a power they say neither the White House nor the Postal Service holds.

"Let's be clear: The U.S. Constitution gives states the power to regulate elections - not the President and not USPS," Bonta said in a statement. The complaint seeks a temporary restraining order and a preliminary injunction to block the rule while litigation proceeds, and it describes the rule as a violation of "the Constitution and federal statutes many times over."

They argue that complying with the order would be costly due to the need to redesign ballot envelopes and to build a data pipeline to USPS from scratch, on a deadline measured in weeks rather than months.

"If not stayed or preliminarily enjoined, the Rule will frustrate or outright prevent Plaintiff States from administering their mail voting programs in November and foreseeably disenfranchise voters who vote by mail," the complaint reads.

"Donald Trump does not run elections. States do," California Gov. Gavin Newsom said Wednesday.

"And his latest attack on democracy is proof of how weak he has become. California will continue to lead the way in defending democracy — using every tool at our disposal and every minute in our day. This perilous moment in history demands no less from us."

White House spokeswoman Lauren Bis called the Supreme Court's decision "was a major win for the security of American elections,” before attacking radical Democrats who “continue to oppose commonsense measures that protect the security of mail-in ballots and ensure only Americans are electing American leaders.”

Tyler Durden Thu, 08/27/2026 - 10:25

Trump Considers New Tariffs On Semiconductors - Reports Raise Alarm Could Doom US Dominance

Politico reports Thursday on what could be another significant setback for US data centers and major damper on American AI aspirations.

The White House is mulling the possibility of introducing new tariffs on semiconductors and a broader range of technology products, including laptops, servers for data centers and gaming equipment - a move tech companies have long been warning against, and which may demonstrate once again that the only thing getting 'reshored' is massive inflation for end consumers.

Source: Equinix. Data center located in San Jose, California.

The report notes that "Commerce Secretary Howard Lutnick favors a structure that would tie foreign companies’ relief from the tariffs to investment in US chip manufacturing to juice more domestic production, said four of the people."

"The administration is also mulling a phase-in period for the new tariffs, the four people said," the report continues. "The people stressed that the framework could still be substantially revised in the coming weeks or months."

Jonathan McHale, digital policy chief at the Computer and Communications Industry Association, is quoted in the report as saying. "This data center buildout, in scale and dollars, has been compared to building the transcontinental railroad.”

"Anytime you add to the cost and decrease predictability you make it more difficult to invest, and you are putting that in jeopardy," he pointed out.

As a reminder under Biden Washington first laid the groundwork with a significant escalation of semiconductor trade barriers. Trump then upped the ante on the campaign trail, floating a shock 100% levies on imported chips while promising a full pass for anyone willing to build their manufacturing on American soil. Then in January the White House slapped a 25% tariff on high-end AI semiconductors.

US sanctions on advanced chipmaking equipment and high-end semiconductors have been aimed at slowing China's push into cutting-edge chip production.

But as CNBC also points out, Chinese tech firms have reportedly had little trouble bypassing "strict" export bans to get their hands on Nvidia hardware. 

"Industry watchers say access to advanced compute via overseas cloud providers is a key factor in Chinese AI models gaining capability," CNBC writes Thursday. "US legislation is being discussed to plug this loophole, but hurdles remain before it can have an impact," it adds.

🇨🇳🇹🇼 China appears to be testing another way of pressuring Taiwan—weaponising its dominance of critical supply chains.

Taiwanese manufacturers are reportedly experiencing delays obtaining strategically important germanium- and quartz-based materials from China, with shipments… pic.twitter.com/KY1y9pQQmX

— China Update (@tonychinaupdate) August 24, 2026

A fresh White House statement says, "Reshoring semiconductor manufacturing is a top priority for President Trump, whose policies have already secured hundreds of billions of dollars of investments in this key sector," according to admin spokesperson Kush Desai.

"The Trump administration remains focused on delivering more investments and economic relief for the American people while safeguarding our national security," the official adds.

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

US Tungsten Scrap Export Ban Takes Effect As Global Supply Crisis Deepens

The Trump administration's export halt on tungsten scrap and shredded battery material took effect Thursday as the latest effort to retain critical supplies within the US. The measure comes as the US confronts a tungsten-supply crisis marked by limited to nonexistent domestic mine production and years of alarming dependence on China-dominated supply chains, even as Beijing increasingly uses critical-mineral exports as geopolitical leverage and curtails shipments abroad.

The Commerce Department directive prohibits exports of tungsten scrap and so-called black mass, the shredded remains of lithium-ion batteries that can be processed to recover lithium, nickel, cobalt and other valuable materials. The restrictions take effect today and will remain in place for one year.

The action follows President Trump's executive order authorizing federal agencies to restrict overseas shipments of scrap containing recoverable critical minerals. Waivers will be considered only when companies can demonstrate "undue hardship" or "irreparable harm."

As of 2025, the US had no mined tungsten production, while China produced 67,000 tons, nearly 79% of global output. Trade data from 2024 show that the US relied on imports for roughly half of its tungsten consumption.

In February 2025, China imposed export controls on selected tungsten products. Rotterdam prices have subsequently jumped nearly 800% since China limited exports of the industrial metal. This has only driven up tungsten and scrap prices.

Wall Street has generally viewed tungsten's role in the industrial economy primarily through a defense lens, such as armor-piercing ammunition, missile components, penetrators, fragmentation materials, and counterweights. But as Lewis Black, CEO of Almonty Industries, recently pointed out, the critical material has many uses beyond defense, including aerospace, energy, medical, automotive and consumer products. It is also, in fact, a critical building block of the artificial-intelligence boom and its associated data-center buildout.

Black, whose mining company controls the largest high-grade tungsten reserves outside China, wrote in a corporate update: "While everyone watches the defense story, you need to keep an eye on semiconductors too. There's a gas called tungsten hexafluoride: WF₆. It's what lays down the microscopic tungsten wiring inside advanced memory chips, the kind the entire AI boom is built on. No WF₆, no advanced chips."

Related:

• The AI Boom Runs On Tungsten, But Global Supplies Are "Running On Empty"

Wall Street has largely framed the tungsten shortage as a defense story. But what Black stresses is that this view is far from the complete view. With the entire US economic boom predicated on data center buildouts and chip stacks, the obscure tungsten-based process gas that sits deep inside the manufacturing chain for advanced logic, high-bandwidth memory, DRAM, and 3D NAND chips may become one of the biggest risks capable of derailing the buildout if China continues to throttle exports of the critical material.

Tyler Durden Thu, 08/27/2026 - 09:05