Individual Economists

LGBTQ+ Identity Dips In 2025 (But Doubled Over Last Decade)

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LGBTQ+ Identity Dips In 2025 (But Doubled Over Last Decade)

Authored by Jeffrey Jones via Gallup,

Gallup estimates that 9% of U.S. adults personally identify as lesbian, gay, bisexual, transgender or something other than heterosexual. This percentage is essentially unchanged from last year but remains more than double the 3.5% from 2012, the first year Gallup measured LGBTQ+ incidence. The current figure is also higher than readings of roughly 7% between 2021 and 2023.

The latest results are based on combined data from 2025 Gallup telephone interviews with over 13,000 U.S. adults.

In each poll it conducts, Gallup asks respondents whether they personally identify as heterosexual, lesbian, gay, bisexual, transgender or something else. The vast majority, 86%, say they are heterosexual, while 9% identify with one of the various LGBTQ+ identities and 5% do not give a response.

The largest share of LGBTQ+ adults say they are bisexual, representing more than half of the subgroup and about 5% of the entire U.S. adult population. Meanwhile, 17% of LGBTQ+ adults identify as gay, 16% as lesbian and 12% as transgender, each representing between 1% and 2% of all U.S. adults. Another 6% of LGBTQ+ adults provide another identity, such as queer or pansexual, beyond those included in the survey.

Bisexual identity has consistently been the most common LGBTQ+ identity and has grown sharply since Gallup began measuring lesbian, gay, bisexual and transgender identities as separate categories in 2020. That year, 3.1% of U.S. adults said they were bisexual, compared with the current 5.3%. Other LGBTQ+ identities have also increased over the past six years.

LGBTQ+ Identity Higher Among Younger Adults

As Gallup has previously demonstrated, the recent increase in LGBTQ+ identification in the U.S. is primarily driven by higher rates among those in the younger generations. In the latest data, 23% of adults under age 30 identify as LGBTQ+, compared with 10% of those aged 30 to 49 and 3% or less among those aged 50 and older.

LGBTQ+ identification is also higher among women than men, primarily because women are much more likely to say they are bisexual. The small proportion of U.S. adults who identify as nonbinary gender overwhelmingly identify as LGBTQ+, particularly as bisexual or transgender.

Democrats are much more inclined than Republicans to have an LGBTQ+ identity. This pattern likely results from LGBTQ+ individuals aligning with the Democratic Party, given the two parties’ stances toward same-sex marriage and other gay rights issues.

City residents are more likely than those living in suburban or rural areas to identify as LGBTQ+, while rates are similar among the major U.S. racial and ethnic groups.

All of these demographic subgroups report higher rates of LGBTQ+ identification than in 2012, the earliest Gallup data. Young adults today versus those in 2012 show the largest increases, and the rate has increased much more among women than men. The smallest increases are among Republicans (1.5% in 2012 vs. 1.9% today) and adults aged 65 and older (1.9% in 2012 vs. 2.3% today).

Implications

LGBTQ+ identification has risen sharply over the past decade, mainly because more young adults today, especially young women, are identifying as LGBTQ+. As more members of Generation Z (those born between 1997 and 2012) reach adulthood, the LGBTQ+ percentage should rise further, given that nearly one in four adults in that generation currently identify as something other than heterosexual. This is in contrast to older Americans, among whom LGBTQ+ identification remains relatively uncommon.

The increase to date also reflects larger shares of Americans, especially those in Gen Z and the millennial generation, considering themselves bisexual. Bisexual identification far outpaces gay and lesbian identification among younger adults, but it is on par with gay and lesbian identification among older generations.

Tyler Durden Mon, 02/16/2026 - 09:50

Futures, Global Markets Rise With US Markets Closed For President's Day

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Futures, Global Markets Rise With US Markets Closed For President's Day

Stocks gained, bitcoin tumbled and bonds steadied after Friday's cool CPI data reinforced expectations that the Fed will cut interest rates on multiple occasions this year. With US markets closed for the Presidents’ Day holiday and mainland China’s markets closed for Lunar New Year holidays, trading was muted on Monday. As of 9:00am ET, futures on the S&P 500 added 0.4% and Europe’s Stoxx 600 index rose 0.4% as banking shares rebounded from a sharp decline last week. German bunds and Treasury futures were steady after US yields touched the lowest since December on Friday.

The path of US interest rates remains in focus following Friday’s slower-than-expected US inflation print as traders fully price a Fed cut in July and the strong chance of a move in June.  

“The backdrop for equities is positive post CPI,” said Andrea Gabellone, head of global equities at KBC Securities. At the same time, there could be “more dispersion ahead as sentiment around key AI-exposed sectors is still very critical,” he added. 

That sentiment was echoed by other strategists seeking to distinguish between AI losers and winners.

A JPMorgan Chase & Co. team led by Mislav Matejka urged caution on stocks at risk of AI-driven “cannibalization,” including software, business services and media companies. Meanwhile, banks are developing baskets to capitalize on the divergence: as we first reported last Thursday, Goldman launched a new basket of software stocks that goes long firms that will benefit from AI adoption, while shorting the companies whose workflows could be replaced.

With AI disruption rippling through markets, a lot will come down to earnings resilience, in particular in the US. 

“When you look at the current earnings season, the companies are showing 13% of growth,” Nataliia Lipikhina, head of EMEA equity strategy at JPMorgan, told Bloomberg TV. “Overall, this is the reason why we continue to be positive on the S&P.”

Later this week, traders will be watching for ADP private payrolls numbers on Tuesday and the minutes from the Fed’s January meeting on Wednesday for a fresh read on the economy.

European stocks gained with bank shares rebounding, after posting their biggest weekly decline since April on worries about disruption from artificial intelligence. The basic resources sector lags, with Norsk Hydro among Europe’s worst performers as both Goldman Sachs and RBC downgrade the stock. Stoxx 600 rises 0.4% to 620.26 with 253 members down, 336 up, and 11 unchanged. Here are some of the biggest movers on Monday: 

  • NatWest shares rise as much as 4%, the most since October, as Citi analyst Andrew Coombs raises his price target on the UK bank to a Street-high.
  • Seraphim Space shares rise as much as 9.2%, briefly hitting a new all-time high, after the space tech investment firm said the valuations of its four largest holdings increased over the final months of 2025.
  • AECI shares rally as much as 6.1%, the most since July, after the South African commercial-explosives maker shared improved 2025 headline earnings per share guidance.
  • Orsted shares rise as much as 3.8% after analysts at Kepler raise the recommendation to buy from hold over the Danish renewable energy firm’s outlook, despite ongoing uncertainty for the industry in the US.
  • Norsk Hydro shares fall as much as 4.4%, extending Friday’s 5.9% earnings-triggered drop, after being downgraded at Goldman Sachs and RBC over disappointments and pricing pressures in the Norwegian aluminum company’s downstream business.
  • Galderma shares slip as much as 2.2% after naming Luigi La Corte as its new chief financial officer following the news back in July that Thomas Dittrich was departing.
  • Pinewood Technologies shares tumble as much as 32%, the most since April 2024, after Apax Partners said on Friday it will not proceed with a possible cash offer for the car dealership software provider.
  • FlatexDEGIRO shares drop as much as 7.2% after BNP Paribas downgraded the online brokerage firm to neutral from outperform, saying the price reflects too much optimism about its market position in Germany.
  • Maurel & Prom shares slump as much as 12%, pulling back after ending last week at a 2015-high, after announcing it is not currently authorized to resume oil and gas operations in Venezuela.
  • Barratt Redrow shares fall as much as 3.7%, leading a drop in British homebuilders after Rightmove said house prices are stalling.

Asian stocks slipped for a second day, led by declines in Japan as traders booked profits after last week’s post-election rally. Several markets were closed or held shortened trading sessions for the Lunar New Year holiday. The MSCI Asia Pacific Index was down 0.1%. Japan’s Topix Index fell 0.8%, with Mizuho Financial Group Inc. and Toyota Motor Corp. among the companies contributing to the index’s losses.In Hong Kong, AI model developer Minimax Group Inc. surged as much as 30% to more than four times its original listing price, while competitor Knowledge Atlas JSC Ltd. ended 4.7% higher. The market will be closed until Thursday. As investors across the region begin to reevaluate their bets on its artificial-intelligence-driven rally, traders in Japan cashed in gains driven by expectations of Prime Minister Sanae Takaichi’s proactive spending policies last week.Trading in Singapore ended early Monday and will be shut until Wednesday. Equity markets in mainland China, South Korea, Indonesia and Vietnam were closed. 

In FX, the yen is the notable mover in currencies, weakening 0.5% against the dollar and pushing USD/JPY back above 153. The offshore yuan is one of the better performers against the greenback. The Bloomberg Dollar Spot Index rises 0.1%.

There is no cash trading in Treasuries due to the Presidents’ Day holiday. European government bonds are little changed

In commdities, gold dipped below $5,000 an ounce, as traders booked profits from a gain in the previous session. Bitcoin tried anf ailed to stage a modest rebound; it last traded around $68,275 after posting its fourth consecutive weekly loss, with the cryptocurrency struggling to find clear direction as a weekend rally fizzled once the momentum ignition algos emerged.  WTI crude futures tread water near $62.90 a barrel. 

Top Headlines

  • President Trump said there will be voter ID rules in the mid-term elections this year, whether Congress approves it or not, and they will present a legal argument in an Executive Order. Furthermore, Trump said he has searched the depths of legal arguments not yet articulated nor vetted on this subject, and they will be presenting an irrefutable one in the very near future.
  • Iran says potential energy, mining and aircraft deals on table in talks with US: RTRS
  • Pentagon threatened to cut its ties with Anthropic over the company’s insistence that some limitations are kept on how the military uses its AI models: RTRS
  • UK eyes rapid ban on social media for under 16s, curbs to AI chatbots: RTRS
  • Rampant AI Demand for Memory Is Fueling a Growing Chip Crisis: BBG
  • Warner Bros. Weighs Reopening Sale Negotiations With Paramount: BBG
  • Companies Are Replacing CEOs in Record Numbers—and They’re Getting Younger: WSJ
  • Europe aims to rely less on US defence after Trump's Greenland push: RTRS
  • DOJ Tells Lawmakers Epstein File Redactions Complied With LawL BBG
  • For College Applicants, Pressure to Make Summers Count Has Gotten Even Worse: WSJ
  • Fed's Goolsbee (2027 voter) said on Friday that they are still seeing pretty high services inflation, and he hopes they have seen the peak impact of tariffs, while he added that the job market has been steady, with only modest cooling. 
  • The Break Is Over. Companies Are Jacking Up Prices Again: WSJ

Trade/Tariffs

  • USTR Greer said the US and Ecuador expect to sign a trade agreement in the coming weeks.
  • China will waive import value-added taxes on selected seeds, genetic resources, and police dogs through to 2030 to increase agricultural competitiveness and breeding capacity. It was also reported that China will grant zero-tariff access to 53 African nations from May 1st, according to Bloomberg.
  • Chinese Foreign Minister Wang Yi told his French and German counterparts that China and the EU are partners, not rivals, while he added that China and the EU should manage differences, deepen practical cooperation and work together on global challenges.

A more detailed look at global markets courtesy of Newsquawk

APAC stocks began the week in the green but with gains limited following a lack of major fresh catalysts from over the weekend and amid thinned conditions owing to holiday closures in the region and North America. ASX 200 traded marginally higher with upside led by tech, although gains are capped by underperformance in the utilities, mining, materials and resources sectors, while participants also digested a slew of earnings releases. Nikkei 225 traded indecisively with the index constrained by disappointing Japanese preliminary Q4 GDP data, which showed the economy returned to growth but failed to meet expectations with GDP Q/Q at 0.1% (exp. 0.4%), and annualised GDP at 0.2% (exp. 1.6%). Hang Seng finished higher in a shortened trading session on Chinese New Year's Eve but with upside limited by tech weakness amid some confusion after the Pentagon added several companies including Baidu, Cosco, BYD, Huawei, Nio, SMIC, Tencent, and more to a list of Chinese firms aiding the military on Friday, but then withdrew the updated list shortly after it was posted. Furthermore, price action was also restricted by the closure of mainland markets and the absence of stock connect flows, which will remain shut for more than a week. US equity futures kept afloat in quiet trade amid the absence of drivers and participants. European equity futures indicate a mildly positive cash market open with Euro Stoxx 50 futures up 0.1% after the cash market closed with losses of 0.4% on Friday.

Asian Headlines

  • Chinese President Xi called for the anchoring of economic growth around domestic demand as its main driver, in a speech during a key policy meeting late last year that was released on Sunday.
  • China is to establish a permanent financial support framework to promote rural revitalisation and prevent a slide back into poverty, which represents a shift from transitional aid to long-term support.
  • China’s market regulator summoned major online platform companies on Friday, including Alibaba, Douyin and Meituan, while it directed them to comply with laws and regulations, and rein in promotional practices, according to Bloomberg.
  • US Secretary of State Rubio and Japanese Foreign Minister Motegi reaffirmed their commitment to deepen bilateral ties.
  • Disney (DIS) sent a ‘cease and desist’ letter to ByteDance over Seedance 2.0 and alleged that ByteDance has been infringing on its IP to train and develop an AI video generation model without compensation, according to Axios. It was later reported that ByteDance said it would curb its AI video app following Disney's legal threats, according to the BBC.
  • RBI tightened rules for loans provided to brokers and proprietary firms in an effort to reduce market speculation

FX

  • DXY eked slight gains in rangebound trade after a lack of major catalysts and with US participants away on Monday.
  • EUR/USD was little changed amid the absence of any major macro catalysts and with light newsflow from the bloc, while comments from ECB President Lagarde and news that the ECB is to make its repo backstop available to other central banks across the world, did little to spur price action.
  • GBP/USD held on to most of Friday's spoils but with price action contained by resistance around 1.3650 and following comments from BoE's Mann that the UK economy is sluggish and tepid, with consumers spending less due to being scarred by high inflation.
  • USD/JPY edged higher and returned to above the 153.00 level in the aftermath of the weaker-than-expected preliminary Q4 GDP data for Japan.
  • Antipodeans were mixed with little fresh macro drivers and a lack of tier-1 data from either side of the Tasman.

Fixed Income

  • 10yr UST futures traded little changed and held on to last week's spoils after returning above the 113.00 level in the aftermath of the softer US inflation data, while price action was contained to start the week by the closure of US cash markets for Washington's Birthday.
  • Bund futures lacked demand in the absence of any major catalysts and with light newsflow from the bloc.
  • 10yr JGB futures were marginally higher following disappointing preliminary GDP data for Q4, but with gains limited after failing to sustain a brief reclaim of the 132.00 level.

Commodities

  • Crude futures were rangebound amid light energy-specific newsflow from over the weekend and after last Friday's indecisive performance, where attention was on a source report that noted OPEC+ is leaning towards resuming oil output hikes from April, but with no decision made.
  • Slovak PM Fico said he has information that the Druzhba pipeline has been fixed after damage in Ukraine, although he believes that supplies to Hungary and Slovakia have become a part of political blackmail.
  • Spot gold took a breather after edging higher in the aftermath of the recent softer-than-expected US inflation data, with price action also contained by the holiday closures across Asia and North America.
  • Copper futures were subdued, with their largest buyer away for more than a week due to the Chinese New Year/Spring Festival holiday.
  • Texas venture-backed startup Hertha Metal vowed mass production of steel with 25% cost savings, which could reduce US reliance on imports.

Geopolitics: Middle East

  • US military is preparing for potential operations against Iran that could last for weeks if US President Trump orders an attack and the US fully expects Iran to retaliate, according to sources cited by Reuters.
  • US President Trump told Israeli PM Netanyahu during a meeting in December that he would support Israel striking Iran’s ballistic missile program if the US and Iran are not able to reach a deal, according to CBS.
  • Iran confirmed that indirect talks between the US and Iran will resume in Geneva on Tuesday under the mediation of Oman, while Iranian Foreign Minister Araghchi left for Geneva on Sunday.
  • Iranian diplomat said Iran is open to nuclear deal compromises if the US discusses lifting sanctions, while it was also reported that Iran said potential energy, mining and aircraft deals are on the table in talks with the US.
  • Israel’s cabinet approved the proposal to register West Bank lands as ‘state property’, while Palestinians condemned the ‘de facto annexation’ which Peace Now said likely amounts to a ‘mega land grab’.

Geopolitics: Ukraine

  • US President Trump said on Friday that Ukrainian President Zelensky is going to have to get moving and that Russia wants to get a deal.
  • US Secretary of State Rubio said they don’t know if Russia is serious about finding an end to the war in Ukraine and will continue to test it, while it was reported that he met with Ukrainian President Zelensky on security and deepening defence and economic partnerships.
  • Ukrainian drones targeted Russia’s Taman seaport and fuel tanks in the Black Sea region.
  • UK and European allies were reported on Friday to be weighing seizing Russian shadow fleet ships and tightening curbs on Russia's economy.
  • French Foreign Minister Barrot said some G7 nations have expressed a willingness to proceed with a maritime services ban on Russian oil, which they hope to include in the 20th sanctions package that they are actively preparing.

Geopolitics: Other

  • European Commission President von der Leyen said that they face the very distinct threat of outside forces trying to weaken their union, while she added that mutual defence is not an optional task for the European Union; it is an obligation within their own treaty, and it is their collective commitment to stand by each other in case of aggression.
  • Pentagon said the US military struck an alleged drug cartel boat in the Caribbean, which killed three people.

DB's Jim Reid concludes the overnigt wrap

I hope you all had a good weekend. To stay in Winter Olympics mood the family watched "Cool Runnings" last night. I haven't seen it for 32 years. Please don't tell anyone but I had a few tears in my eyes at the end. I blamed it on the hay fever that has now started.

There will be a lot of tears out there in markets for other reasons at the moment. Just two weeks ago, the idea of AI-driven disruption still felt like an abstract, almost academic thought experiment—something we could safely revisit once we had clearer evidence of how AI would be deployed and integrated across the economy. Fast forward 14 days, and markets have wiped out well over a trillion dollars of global equity value on the fear that AI could fundamentally reshape business models and compress profitability across a wide range of industries, including software, legal services, IT consulting, wealth management, logistics, insurance, real estate brokerage and commercial real estate.
For months, my published view has been that nobody truly knows who the long term winners and losers of this extraordinary technology will be. Yet as recently as October, markets were implicitly pricing in a world where almost every tech company would come out a winner. Over recent weeks we’ve seen a more realistic differentiation emerge within tech—but that repricing is now rippling into the broader economy with surprising speed.

Some of the sell off in “old economy” sectors feels overdone to me. But as I argued in our 2026 World Outlook back in November, the real challenge is that even by the end of this year we still won’t have enough evidence to identify the structural winners and losers with confidence. That leaves plenty of room for investors’ imaginations—both optimistic and pessimistic—to run wild. As such big sentiment swings will continue to be the order of the day.

My instinct is that the reaction in things like commercial real estate, for example, has been particularly exaggerated. Markets seem to be extrapolating a scenario in which vast numbers of white collar workers are made redundant almost overnight, leading to a dramatic collapse in office demand. If that view turns out to be correct, we’ll be facing societal challenges far larger than anything currently being priced into equities. While trying to catch a falling knife may be too risky for many, beginning to cushion the descent could be sensible in many old economy sectors. Markets can’t sustain a disruption narrative across multiple sectors for months or quarters without concrete evidence — and that evidence is likely to take much longer to emerge. Fascinating times.

As for this week, today is a US holiday but inflation will remain in the spotlight at a global level after Friday's slightly softer US CPI which helped contribute to a decent rates rally to end the week. Prints are due in the US (PCE - Friday), the UK (Wednesday), Canada (Tuesday) and Japan (Friday). Other economic highlights will include the FOMC minutes (Wednesday), Q4 GDP in the US (Friday), as well as the global flash PMIs (Friday). Earnings reports will feature Walmart (Thursday), Nestlé (Thursday) and BHP (today). It's the earnings calm before next week's Nvidia storm.

In the US, this holiday shortened week (President's Day today) features a data calendar dominated by releases that were pushed back by last year’s government shutdown. The most consequential updates will land on Friday, when the advance estimate of Q4 GDP arrives alongside December’s personal income and consumption figures—key inputs for shaping expectations for the early part of this year.
Our economists expect real GDP growth to slow to 2.5% for Q4, a meaningful step down from the prior quarter’s 4.4% pace. A sizable portion of that deceleration—roughly 70bps—reflects the drag from the record long shutdown. Net trade is once again projected to make a strong positive contribution, driven mainly by subdued imports. December’s international trade report, due Thursday, will help refine the team's call, as will the advanced goods trade data, which will also guide expectations for inventories—currently seen subtracting about 60bps from growth in Q4.

For markets assessing the underlying pulse of demand heading into 2026, private final sales to domestic purchasers (PFDP) will carry more weight than the headline GDP print. This indicator—closely monitored by Fed Chair Powell—is expected by our economists to slow to 2.0% from 2.9% in Q3, though risks appear tilted upward. One swing factor: Wednesday’s durable goods report, where modest gains outside of transportation could soften the deceleration. On the consumer front, real PCE growth is expected to cool to 2.5% after two quarters of outsized strength but should still signal ample momentum heading into the new year.

Friday’s income and spending report will also offer the latest reading on core PCE, the Fed’s preferred inflation gauge. Our economists expect another 0.4% monthly increase for December, lifting the year over year rate to 2.9%. Updated seasonal factors from last week’s CPI release suggest some mild downward pressure on inflation trends in the second half of 2025. Still, January’s CPI data, although softer than we anticipated, do not translate into equivalent relief for core PCE—in fact, our team currently sees another 0.4% gain for January's release (delayed until March 13th). Depending on the strength of medical services, airfare, and portfolio management components in the upcoming PPI report, a 0.5% monthly rise cannot be ruled out, which would push the year over year rate toward 3.1%. So don't get too excited about the softer CPI last week and the huge rates rally.

Additional releases this week will help clarify whether recent severe winter weather has disrupted factory sector activity. January industrial production, due Wednesday, should benefit from a jump in utility output, while weather effects may weigh on the Empire State Survey tomorrow and the Philadelphia Fed survey on Thursday.

Labor market data will also be in focus, particularly Thursday’s jobless claims, which line up with the survey week for the February employment report. As our economists have pointed out, private nonfarm job gains have averaged 103k over the past three months, slightly above the pace at this point in 2025 and matching the start of 2024. See their latest US employment chartbook here.

This week will also feature a dense lineup of Federal Reserve speakers which you can see alongside all the key global data in the day-by-day week ahead calendar at the end as usual.

Moving away from the US, inflation will also be in focus in Japan (Friday) and Canada (tomorrow). For the former, our Chief Japan Economist sees the January nationwide CPI showing a slowdown in both core CPI inflation ex. fresh food to 2.1% YoY (+2.4% in December) and core-core CPI inflation ex. fresh food and energy to 2.7% (+2.9%). Also important will be the global flash PMIs due on Friday as a health check on global growth. In Europe, the spotlight will be on UK inflation (Wednesday), with labour market data due tomorrow and retail sales on Friday. Our UK economist expects headline CPI inflation to drop to 3.0% YoY (3.4% in December) and core CPI also landing at 3.0% YoY (3.2% YoY). See more in his full preview here. In terms of key rate decisions, the RBNZ are expected to remain on hold on Wednesday.
In Asia this morning, things are relatively quiet with mainland Chinese and Korean markets closed for the Lunar New Year. The Hang Seng is up +0.52% while the Nikkei (+0.11%) is edging up after a lower start to its session. That came despite a decent downside miss on Japan’s Q4 GDP data overnight, which rose at an annualised pace of +0.2% versus expectations of +1.6%. S&P (+0.15%) and Nasdaq (+0.06%) futures are also a little higher on this US holiday session.

Finally, the Munich Security Conference wrapped up over the weekend, where key topics included Ukraine, Russia, and the fate of Greenland. And while US Secretary of State Marco Rubio’s speech was nothing like Vice President JD Vance’s at last year’s conference, which triggered a “wake-up” call for European leaders, Rubio reiterated the administration’s view that Europe needed to leave behind its focus on energy policies, trade and mass migration.

Recapping last week now, the tech volatility that has dogged markets since the start of the month broadened into a far more indiscriminate sell-off. The trough came on Thursday, marked by a sharp drop in software stocks, but the weakness extended well beyond tech. Companies across wealth management, real estate and financials suffered double digit declines, underscoring how widespread the pullback has become. Market breadth confirmed this shift as the equal weighted S&P 500 fell -1.37% on Thursday, though it managed to finish the week up +0.29% (+1.04% on Friday). Ultimately, the sell-off left the major US indices on the back foot: the S&P 500 slipped -1.39% (+0.05% on Friday), the Nasdaq lost -2.10% (-0.22% on Friday), and the Magnificent 7 slid -3.24% (-1.11% on Friday).

Although the AI scare dominated sentiment, a heavy slate of US data also shaped the market narrative. Early in the week, softer prints—including flat December retail sales, a dovish Q4 Employment Cost Index, and slower Q4 growth expectations from the Atlanta Fed—pushed Treasury yields lower across the curve. That picture shifted midweek after a stronger than expected January jobs report, which delivered the largest gain in nonfarm payrolls (+130k vs. +65k expected) since December 2024 and reinforced confidence that the US economy carried solid momentum into 2026. Then on Friday, January CPI came in below expectations, adding another dovish note. Although the data offered mixed signals at times, the overall takeaway was sufficiently dovish for traders to increase the number of expected rate cuts by December 2026 to 63.4bps (+7.7bps on the week). This helped drive the largest weekly drop in the 10 year Treasury yield since August 2025, down -15.8bps (-5.0bps on Friday) to 4.05%. The 2 year yield also moved sharply lower, falling -8.9bps to 3.41% (-4.8bps on Friday), its lowest level since 2022.

European markets, meanwhile, delivered a comparatively resilient performance. The STOXX 600 (+0.09%, -0.13% Friday), DAX (+0.78%, +0.25% Friday) and FTSE 100 (+0.74%, +0.42% Friday) all posted modest gains for the week. European sovereign bonds rallied as well, with the 10 year bund yield dropping -8.7bps—its steepest weekly decline since April 2025. That move was outpaced by gilts, which fell -9.8bps (-3.6bps on Friday) despite a sharp early week sell-off triggered by renewed questions surrounding Prime Minister Keir Starmer’s position.

Elsewhere, performance was mixed. Brent crude edged down -0.44% (+0.34% on Friday), while gold extended its upward run, rising +1.56% (+2.43% on Friday).

Will London’s half term week finally give us a quiet week in 2026? You’d probably have to guess at ‘unlikely’.

Tyler Durden Mon, 02/16/2026 - 09:40

Downdetector Users Report Widespread Outages At X, AWS, Cloudflare

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Downdetector Users Report Widespread Outages At X, AWS, Cloudflare

Around 8:00 a.m. ET, users on Downdetector reported outages and disruptions on X across the United States. At the same time, the outage tracker also showed a spike in reported issues involving Amazon Web Services and Cloudflare.

Downdetector users reported X outages and disruptions across major U.S. cities.

Simultaneously, Downdetector users reported outages affecting AWS and Cloudflare, raising the question of whether issues on Musk’s platform are a downstream effect.

*Developing...

Tyler Durden Mon, 02/16/2026 - 09:30

Ukraine's Former Energy Minister Charged With Money Laundering As 'Operation Midas' Expands

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Ukraine's Former Energy Minister Charged With Money Laundering As 'Operation Midas' Expands

Months after Ukraine was shaken by a sweeping corruption probe into state nuclear giant Energoatom, and subject of international embarrassment given it even touched Zelensky's office, former Energy Minister Herman Halushchenko has now been formally charged - after authorities detained him while he was allegedly attempting to leave the country.

Halushchenko had been suspended by Zelensky in mid-November, when news of the scandal first hit global headlines. On Monday, Ukraine’s National Anti-Corruption Bureau (NABU) and the Specialized Anti-Corruption Prosecutor’s Office (SAPO) announced that Halushchenko faces formal charges of money laundering and participation in a criminal organization tied to what investigators call the Midas case or Operation Midas.

The former Minister of Energy, Herman Galushchenko, Creative Commons

"The former minister of energy (2021–2025) has been exposed for money laundering and participation in a criminal organization," the joint statement said, adding that investigators have "expanded the circle of suspects."

The investigation is focused on members of the alleged network which established an investment fund in Anguilla (the British Overseas Territory in the Eastern Caribbean) in February 2021. The vehicle was marketed as raising roughly €118 million in "investments" - with Halushchenko’s family listed among the contributors - after which millions flowed directly into accounts controlled by the family

For example, authorities claim part of the funds paid for the education of Halushchenko’s children at elite Swiss institutions, while other sums were deposited into his ex-wife's accounts, also with a big portion of the money allegedly invested further, "earning extra income for the family's personal use."

Halushchenko was energy minister from 2021 to 2025 before being appointed justice minister in July 2025. In November, NABU agents conducted raided offices and properties connected to him as the investigation intensified.

Western mainstream media had almost immediately launched into damage control in the wake of the massive energy scandal, with one op-ed in Bloomberg having tried its best to say it's not at all Ukraine's fault, but is actually somehow... the Kremlin behind it(!). Here's how it began:

There are at least two legitimate responses to allegations that a group of highly placed Ukrainian officials have skimmed $100 million from contracts to repair and protect their nation’s critical energy infrastructure, even as Russian attacks plunge the nation into darkness and cold. One is to despair, the other to celebrate. The second, strange as it may sound, is more logical.

This episode goes to the heart of why Ukrainians are fighting at all. The war began in 2014, after then President Viktor Yanukovych was toppled by mass protests against the epic scale of his corruption and the captivity to Moscow this created. Graft was the glue with which the Kremlin had held...

So even with high officials in Zelensky's government are caught red-handed by a Ukrainian internal investigation, the ultimate fault lies in Moscow, according to some MSM accounts.

It must be remembered that earlier last year, Zelensky himself found himself at the center of EU pushback and controversy when he attempted to eliminate NABU's independence, sparking outrage in Brussels some sectors of the Ukrainian populace.

Ukrainians, currently enduring a harsh winter in subzero temperatures and with rolling power outages due to the war, are outraged. But Americans might also need to wake up and take note of how billions in US funds are going into the coffers of a deeply corrupt Ukrainian system.

Tyler Durden Mon, 02/16/2026 - 09:25

Detroit Police Chief Targets Officers Allegedly Coordinating With ICE

Zero Hedge -

Detroit Police Chief Targets Officers Allegedly Coordinating With ICE

Authored by Luis Cornelio via Headline USA,

Detroit Police Chief Todd Bettison said Thursday that officers purportedly collaborating with federal immigration agents will be held “accountable,” as the city defends its so-called “welcoming” status.

Bettison made the comments during a hearing with the Detroit Board of Police Commissioners regarding two incidents, one on Dec. 16 and another on Feb. 9, according to the Detroit Free Press.

“Of our officers, 98-99 percent do it the right way each and every day,” Bettison claimed.

“But I do have one or two percent that decide to violate our rules, our policies and our procedures, and to those officers, I will hold them accountable.”

A “welcoming city” refers to jurisdictions that do not require officers to investigate a person’s immigration status during routine investigations.

By contrast, sanctuary cities refuse to honor ICE detainers and actively decline to cooperate with federal immigration authorities.

In the first incident, a Detroit sergeant reportedly called Border Patrol after an officer requested a translation during a traffic stop of a non-English-speaking individual.

Bettison said that Border Patrol determined the person was not a U.S. citizen and detained the individual as a result.

In the second incident, a Detroit officer allegedly contacted Border Patrol while investigating an individual on a felony warrant.

“Border Patrol did respond, and Border Patrol ultimately took this individual,” Bettison said, citing body-worn camera footage reviewed by the DPD.

The commission is set to decide whether to suspend the officers involved ahead of a Feb. 19 hearing.

Tyler Durden Mon, 02/16/2026 - 09:00

US NatGas Futs Sink To Four-Month Low As Mid-Atlantic Exits Brutal Winter

Zero Hedge -

US NatGas Futs Sink To Four-Month Low As Mid-Atlantic Exits Brutal Winter

US natural gas futures tumbled to a four-month low early Monday as weather models indicate the Lower 48 is exiting the peak of the Northern Hemisphere winter and entering a much-needed warmup. For the Mid-Atlantic and Northeast, which experienced some of the coldest weather in decades, the next few weeks are expected to feel more like spring.

March contracts fell 7.5% to about $3 per mmBtu, the lowest level since October 17 and a roughly four-month low.

Weather forecasts for the Lower 48 show above-normal temperatures through the end of the month, particularly in the central and southern regions.

NatGas prices have been extremely volatile this winter. Multiple cold blasts sparked freeze-offs and production disruptions across gas infrastructure that sent spot NatGas prices sharply higher. At the same time, tightening power markets, especially across the Mid-Atlantic area, sent power prices soaring.

Readers may recall we identified peak Northern Hemisphere winter in early February, as 30-year average temperature trends point to warmer conditions across the Lower 48.

Now the Trump administration can point to last month’s cold snap as a real-world stress test: fossil fuel generation helped keep much of the eastern U.S. grid from collapsing under peak demand. Read the note, titled "Sleep Tight, America. We Got This": NatGas And Coal Power Plants Prevented Grid Collapse During Historic Winter Blast.

Tyler Durden Mon, 02/16/2026 - 08:30

Macron's AI Clown Show: Europe's Digital Dilemma

Zero Hedge -

Macron's AI Clown Show: Europe's Digital Dilemma

Submitted by Thomas Kolbe

The European Union has lost its place in the global race for artificial intelligence. In a single tweet on platform X, France’s President Emmanuel Macron inadvertently outlined the convoluted situation while simultaneously revealing his personal emotional fragility.

The leading representatives of the European Union like to present themselves as emotionless technocrats. Maintaining the greatest possible distance from citizens, they execute their agenda of societal transformation toward what they understand as a net-zero transformation economy. 

This ostentatious distance from the citizenry acts as a simulacrum of power, which, in politicians like Emmanuel Macron, often veers into the caricatural.

Macron’s striking presence in foreign affairs—whether regarding the Ukraine war or recurring provocations toward the United States—correlates with his aggressive censorship policy toward his own population. A president without a people, steering his minority government through a budgetary crisis that brings France ever closer to the fiscal abyss.

In Macron’s persona, the European misstep is condensed: economically failed, deeply unpopular among his own people, geopolitically essentially irrelevant—and yet imbued with lofty, messianic plans. 

This performative play of power, coupled with hardly disguised impotence and incompetence, inevitably produces an effect that can be described as clownish. It is the expression of a political style that can no longer reconcile claim with reality—and thus delivers less leadership than a tragicomic performance.

A Touch of Emotion

Politicians like the French president are indeed aware of the growing public anger over their policies and, behind the technocratic façade, very much experience emotional states—Macron revealed this for a brief moment on February 7 on the platform “X,” which he otherwise fights.

This moment of exposure was triggered by a reaction to Israeli AI investor Dr. Eli David. The entrepreneur had ridiculed the French government’s plan to initiate an AI revolution with a mere initial investment of €30 million, publicly calling the president a “clown.” 

Macron responded in classic social media fashion: fast, unconsidered, emotional. And this was precisely the real revelation. His message not only displayed personal fragility but simultaneously exposed Europe’s fatal economic strategy in the field of artificial intelligence.

Macron directly addressed David’s criticism and slid into a rhetorical trap, writing: Yes, exactly this “clown,” meaning himself, would trigger an investment boom with €30 million, eventually mobilizing over €100 billion in private funds. Macron plans a French Silicon Valley south of Paris and intends to catapult his country to the Olympus of artificial intelligence—with €30 million of state money, initially benefiting those who provide the technological framework for the upcoming rollout of digital IDs.

In this sentence, Europe’s dilemma crystallized: self-assurance and denial, the familiar pathos of EU Europeans combined with an astonishing detachment from reality—and a political style that reveals more about Europe’s position in the global AI race than any sober analysis could.

Those familiar with the codes, memes, and recurring keywords of digital platforms understand the significance of this label. When “clown world” or “clown politics” is mentioned, it refers precisely to the comedy we witness daily: the routine evasion of European top politicians from the consequences of their centrally controlled policies—be it economic and industrial policy, migration, or the grotesquely perceived energy policy.

The clown meme condenses the cynically self-ironic perception of the viewer of this comedy—a viewer aware that they are not only the target of these policies but will ultimately bear their consequences.

Clown politics takes many forms. These include the countless crisis or innovation summits in which politicians stage themselves retroactively as initiators of the new, attempting to position themselves at the forefront of developments they have ignored or actively obstructed for decades. 

These summits are a particularly pernicious form of masking incompetence: political self-validation rituals simulating activity while merely covering up structural stagnation.

Another Lost Year

It has been almost exactly one year since Emmanuel Macron, at the AI conference Choose France, presented his megalomaniac-seeming investment initiative. Over €100 billion in private investment pledges were said to have been mobilized, with asset manager Brookfield promising more than €20 billion, and the UAE sovereign wealth fund with €50 billion, to participate in Macron’s Silicon Valley. To this day—nothing has happened.

As elsewhere in the EU, a Kafkaesque thicket of regulation seriously blocks private-sector engagement. At least France could score points thanks to nuclear power: stable, cheap, ideal for energy-hungry data centers. And Germany? Its locational advantage has been squandered in green delusions. Yet France remains trapped in paralyzing stagnation—announcements fade, visions fizzle, and the digital Silicon Valley appears like an illusion from the bureaucratic dream factory.

The contrast with the United States could hardly be starker. There, around $400 billion in private investments in artificial intelligence and data centers were mobilized last year alone. The infrastructure of the data economy of the future is being built in the United States, where President Donald Trump deregulates markets, cuts taxes, and promotes the comeback of nuclear energy.

Notably, major US data center operators—from Meta to Google—have already begun investing in their own energy sources. This not only stabilizes their business models but also the American energy grid. It is an impressive counterpoint from the private sector to Brussels’ statist economic model, where technological ignorance seems almost cultivated.

Europe’s idea of state seed funding and centrally planned market regulation is the real problem. 

European society has drifted too far from the principles of market economy, personal responsibility, and a general culture of initiative in business. Bureaucracy, green socialism, and the decades-long cultural struggle against bourgeois values and roots now bear their rotten fruits. The spirit of EU bureaucracy has warped the perception of economic reality for citizens, entrepreneurs, and the political class alike.

New technologies and innovations are no longer understood as opportunities but as reasons to defensively secure the status quo. This psychopolitical consequence of European bureaucratization weighs like lead on the prosperity and productivity of European economies—with consequences that even French presidents in combative cynic mode on “X” cannot hide.

* * * 

About the author: Thomas Kolbe, a German graduate economist, has worked for over 25 years as a journalist and media producer for clients from various industries and business associations. As a publicist, he focuses on economic processes and observes geopolitical events from the perspective of the capital markets. His publications follow a philosophy that focuses on the individual and their right to self-determination.

Tyler Durden Mon, 02/16/2026 - 08:10

Amid Saber-Rattling, Iran Touts Economic Benefits To West If Nuclear Deal Reached

Zero Hedge -

Amid Saber-Rattling, Iran Touts Economic Benefits To West If Nuclear Deal Reached

Days ahead of another round of talks with US negotiators -- and on the heels of more saber-rattling by the Trump administration -- Iran is touting the potential mutual economic benefits of a deal that would terminate the West's long-running sanctions regime against the second-largest and second-most-populous country in the Middle East.  

"For the sake of an agreement's durability, it is essential that the U.S. also benefits in areas with high and quick economic returns," said Iranian Deputy Director for Economic Diplomacy Hamid Ghanbari on Sunday, according to Iran's FARS news agency. He said that, during negotiations, there had been discussion of what FARS called "shared interests in the fields of oil, gas, mining and even aircraft purchases." 

An IranAir Airbus A330 lands in Amsterdam (Nicolas Economou/ Nurphoto via Getty and Forbes

Sanctions have long thwarted Iran's need to update the country's passenger jet fleets. After the 2015 nuclear deal was reached and sanctions eased, Iran raced to put in orders for new aircraft from Western suppliers. When President Trump withdrew from the nuclear deal -- despite Iran's full compliance with it -- Boeing instantly lost $20 billion worth of business.  

Oil prices were flat in early-Monday global trading. "With both sides expected to hold firm on their core ​red ​lines, expectations are low that a deal can be ​reached and this is likely to be the ‌calm before the storm," IG analyst Tony Sycamore told Yahoo. 

Oman is set to mediate talks in Geneva this week. Foreign Minister Abbas Araghchi is leading the Iranian delegation, while the US delegation will be headed by Steve Witkoff and Trump son-in-law Jared Kushner. Ahead of the talks, Israeli Prime Minister Benjamin Netanyahu made his sixth US meeting with Trump in just the last year. Netanyahu continues to push for terms that guarantee Iranian refusals and thus set the stage for more war.

Those poison-pill demands include Iran ceasing all uranium enrichment and -- preposterously -- dismantling the conventional, ballistic missile program that proved so effective in responding to Israel's initiation of war last June. Trump reportedly told Netanyahu in December that he'd back Israeli strikes on Iran's ballistic missiles program if a new deal isn't reached.  

President Trump holds Prime Minister Netanyahu's chair during a 2025 visit to the White House 

In May 2018, Trump withdrew the United States from the nuclear deal that had been negotiated between Iran and various Western governments and signed in 2015. Under that deal -- the Joint Comprehensive Plan of Action (JCPOA) -- Iran agreed to a wide array of nuclear safeguards. They included eliminating its medium-enriched uranium, reducing its low-enriched uranium inventory by 98%, capping future enrichment at 3.67%, slashing its number of centrifuges, submitting to enhanced external monitoring, and rendering its heavy-water reactor unusable by pouring concrete in it. 

At the time of Trump's withdrawal, Iran was in full compliance, according to the International Atomic Energy Agency. In response to the re-imposition of US sanctions, Iran began straying from its own commitments under the deal, seemingly pushing the only lever it had to bring the deal back and get out from under sanctions that have sapped Iran's economy and inflicted a harsh toll on innocent Iranian citizens

On Friday, Reuters reported that the Pentagon is preparing for a "sustained, weeks-long military campaign" against Iran if President Trump gives the green light. That news came as a second American aircraft carrier was making its way to the region. The USS Gerald Ford -- the world's largest -- will join the USS Abraham Lincoln, which is already on station. Before receiving its new orders, the Ford had been operating in the Caribbean after being abruptly redeployed from the Mediterranean -- part of an earlier show of force tied to posturing against Venezuela.    

Tyler Durden Mon, 02/16/2026 - 07:45

Germany's Elites Demand "Location Patriotism" As Green Industrial Policy Unravels

Zero Hedge -

Germany's Elites Demand "Location Patriotism" As Green Industrial Policy Unravels

Submitted by Thomas Kolbe

As social glue and as a bond tying the individual to a higher purpose of existence, patriotism has acquired a dubious reputation in Germany after decades of culture war. The United Left has succeeded in amalgamating this binding and integrating cultural ferment with the historical catastrophes of National Socialism, imperialism, and chauvinism, ultimately banishing it from the nation’s self-understanding.

Today, the patriot is regarded as a social outsider, a contrarian, an intolerant antagonist of humanistic values.

The mills of that socialist cultural revolution set in motion in the late 1960s have ground with care. A cartel of radical ideologues, opportunistic politicians, a proliferating academic establishment, and the media sector has managed to inject a sufficient dose of poison into the root system of tradition, religion, family, and the bourgeois order. The modern patriot renders himself deeply suspect if he rejects the blessings of cultural relativism and the woke nihilism of our age.

And yet conservatives are the true heroes of stability and continuity, who—like human breakwaters in today’s social storms—attempt to fend off the worst flowing toward us from the murky sources of cultural Marxism. It was not least the work of German politicians to carry out this civilizational turn: away from the Social Market Economy and a bourgeois-centered society toward a green climate socialism.

Nowhere does the anti-bourgeois reflex flourish more luxuriantly than in Germany’s NGO complex and in the shrill academic flank warfare surrounding Cancel Culture, Wokeism, and the cleansing of language—precisely targeting those terms that would open the door to a culture-affirming, tradition-confirming education.

How beautiful words like “fatherland,” “patriotism,” and “love of homeland” now sound.

Naturally, a significant portion of the political class would vehemently disagree. It has built a business model from the ingredients of contempt for the nation, globalist moralism, and climate-apocalyptic transformation logic—and founded its political existence upon it. Contempt for everything conservative is the linguistic soil in which this form of political power thrives, stabilizing and reinforcing itself within its own moral echo chamber.

That, in this self-inflicted crisis, German politicians now invoke the once-poisoned term of “location patriotism” in their defensive struggle against economic reality appears grotesque—and to those who have lost their livelihoods in the breakers of green bureaucratism, presumptuous and offensive.

Germany’s environment minister, Carsten Schneider, concluded his recent interview marathon with a talk at the Frankfurter Rundschau. The man has nerve. After a series of very public attacks by his camp against entrepreneurs, it now seems time to change tone. Moral minor key is on Berlin’s agenda. Automakers, Schneider suggests, should increasingly source raw materials from Germany. Raw materials—from Germany?

He calls for a “lead market” for green steel—stretching reality to its limits, as green steel currently vanishes from product lines because it is neither profitable nor marketable, despite heavy subsidies.

A little more location patriotism can surely be expected from German CEOs, Schneider argues—closely echoing the tone of his party leader and finance minister, Lars Klingbeil.

Klingbeil struck a similar chord at a union congress of IG BCE in Hanover last October. More location patriotism—more daring for Germany? After all, the state has provided tax relief and subsidies to strengthen the location and its companies. Is the state to play King Lear in this drama? The destroyer of capital, tax collector, and regulator par excellence?

It is a cynical media game the political class is playing with a population already in fragile spirits. When things deteriorate and policymakers hit a wall, strategies merge: patriotic appeals now oscillate with resentment and envy debates—emotional triggers designed to activate the image of the greedy, rootless entrepreneur, allowing politicians to step out of the line of fire. Outrage becomes a mobilization strategy; moral pressure, a media placebo.

The chancellor himself now regularly reaches for this blunt instrument, driven by poor poll numbers and looming political turbulence. “I am proud of our country,” declares Friedrich Merz, rebranding a culturally eroded and economically bleeding Germany into a communal experience infused with the rhetoric of renewal and freedom.

One can only speculate about the emotional stirrings of the chancellor as he strides through the opulent halls of the Federal Chancellery. Aware that Germany’s governing apparatus—its bureaucratized parliamentarianism and the self-representation of the executive—slowly but steadily approaches, at least in scale and architectural self-staging, dimensions reminiscent of Chinese conditions, the repeated echo of his own voice in endless corridors may well generate a certain well-tempered pride in career achievement.

In starkest contrast to the modest chancellery of the old Bonn Republic, today’s Federal Chancellery symbolizes statism, distance, and elevation.

Media maneuvers such as demanding corporate location patriotism are performative acts of ostentatious helplessness. They aim to channel public mood, deflect the question of responsibility away from policymakers, and stabilize the coalition ahead of crucial state elections.

Yet Berlin’s spin doctors may be mistaken. Friedrich Merz and his colleagues will learn that patriotism cannot be activated by chancellery decree. They may also discover that few Germans, without external pressure, will answer a call to defend a political system that—after years of mass migration, cultural erosion, and ideological restructuring—now asks its citizens to support further ideologically charged projects.

As for entrepreneurs, there seem to be few who still trust politics to resolve an ideologically distorted situation rationally. Patriotism, once the final convincing anchor tying companies to their homeland, has been driven out of Germans in a decades-long purgatory of progressive self-righteousness. Something better than a German insolvency death can now be found almost anywhere.

* * * 

About the author: Thomas Kolbe, a German graduate economist, has worked for over 25 years as a journalist and media producer for clients from various industries and business associations. As a publicist, he focuses on economic processes and observes geopolitical events from the perspective of the capital markets. His publications follow a philosophy that focuses on the individual and their right to self-determination.

Tyler Durden Mon, 02/16/2026 - 07:20

Hillary Clinton Breaks With Party Line, Admits Mass Migration Is "Disruptive & Destabilizing"

Zero Hedge -

Hillary Clinton Breaks With Party Line, Admits Mass Migration Is "Disruptive & Destabilizing"

After U.S. Secretary of State Marco Rubio spoke earlier on Saturday at the Munich Security Conference, where he said the U.S. and Europe "belong together" and argued for a stronger West, former Secretary of State Hillary Clinton, who served under former President Barack Obama, appeared on a panel later that afternoon and made surprising remarks about mass migration.

Clinton participated in a panel titled, "The West-West Divide: What Remains of Common Values," and said that mass migration invasion involving millions of illegal aliens has been "destabilizing" to society.

Clinton continued:

So this debate that's going on is driven by an effort to control people, to control who we are, how we look, who we love. And I think we need to call it for what it is.

There is a legitimate reason to have a debate about things like migration. It went too far. It's been disruptive and destabilizing, and it needs to be fixed in a humane way, with secure borders that don't torture and kill people, and with a strong family structure, because it is at the base.

Clinton's comments about how mass migration has been an utter failure probably made White House border czar Tom Homan blush. In fact, unhinged Democrats, such as the Democratic Socialists of America, are probably furious with Clinton, given her very blunt public stance on immigration policy. 

In fact, if we circle back to Rubio's comments earlier in the day, he slammed "mass migration".

Let's not forget that Rubio's State Department last fall recognized that mass migration was an "existential threat" to the West and risks "undermining the stability of key American allies."

"America First" politicians are coming to their senses about the illegal alien invasion, as it was a move by globalists, NGOs, and their Democratic Party allies to install a new voting bloc and transform America into a one-party rule of left-wing kings and queens (think California). 

That's why "America First" politicians and Elon Musk are pushing hard for the Safeguarding American Voter Eligibility (SAVE) Act to secure the integrity of elections. 

Tyler Durden Mon, 02/16/2026 - 06:55

These Are The Countries Buying (And Selling) The Most Gold Since 2020

Zero Hedge -

These Are The Countries Buying (And Selling) The Most Gold Since 2020

As gold prices surged more than 230% since 2020, central banks around the world launched one of the largest gold-buying waves in modern history.

For many countries, bullion became more than just a hedge—it became a strategic reserve asset amid rising geopolitical tensions, currency volatility, and growing efforts to diversify away from the U.S. dollar.

Yet not every nation followed the same playbook: some were accumulating gold aggressively, while others were trimming reserves.

This chart, via Visual Capitalist's Niccolo Conte, ranks the countries that made the biggest net additions and the largest reductions in gold reserves over the past five years.

The data comes from the World Gold Council.

China and Eastern Europe Lead Gold Buying

Together, the top 15 buyers added nearly 2,000 net tonnes of gold to their reserves over the period, underscoring a broad shift in official sector strategy.

China recorded the largest increase in gold reserves over the period, adding more than 350 tonnes. This move aligns with Beijing’s long-running push to diversify reserves away from the U.S. dollar and reduce exposure to Western financial systems, reinforcing gold’s role as a politically neutral anchor within global reserves.

Poland followed China closely in the ranking, increasing its gold holdings by over 300 tonnes as part of a long-term push to bolster monetary security.

Türkiye and India also ranked among the top buyers. Both countries face persistent inflation pressures and currency volatility, making gold an attractive hedge within official reserves.

Emerging Markets Step Up Accumulation

Beyond the largest buyers, several emerging markets made notable additions. Brazil added more than 100 tonnes, while Azerbaijan’s increase came through its sovereign wealth fund, the State Oil Fund of the Republic of Azerbaijan.

Japan, Thailand, Hungary, and Singapore also expanded reserves, signaling broader global interest in gold as a stabilizing asset during periods of economic uncertainty.

Who Reduced Gold Holdings?

While many central banks were building gold stockpiles, a smaller group reduced exposure, highlighting sharply different reserve priorities.

The Philippines recorded the largest reduction, cutting reserves by more than 65 tonnes. Kazakhstan and Sri Lanka also posted significant declines, often reflecting domestic liquidity pressures or active reserve rebalancing during periods of economic stress.

Several European countries, including Germany and Finland, posted modest reductions. Switzerland’s change was minimal, underscoring its generally stable approach to gold management compared with more active buyers elsewhere.

Taken together, the data shows how gold has reasserted itself as a cornerstone of global reserves, even as countries take sharply different paths in preparing for an uncertain monetary future.

If you enjoyed today’s post, check out The Rise of Major Currencies Against the USD in 2025 on Voronoi, the new app from Visual Capitalist.

Tyler Durden Mon, 02/16/2026 - 06:45

10 Presidents Day Reads

The Big Picture -

My three-day weekend reads:

• Why a ‘K-Shaped’ Economy Means More Risk for Stock Investors: The wealthy are propping up consumer spending thanks to a multi-year bull run, while lower earners pinch pennies. That creates a fragile circular dynamic — if stocks stumble, spending drops, and the whole thing unwinds fast. (Morningstar) see also Older Americans power a gray-shaped economy: Forget K-shaped, try gray-shaped: Boomers aren’t just aging — they’re reshaping the entire labor market. Health care job growth is booming, the retirement wave is accelerating, and the economy is increasingly being built around serving people over 65. The changing demographics in the U.S. — more old people, fewer young ones — are reshaping jobs and spending in all kinds of ways. (Axios)

The Mega-Rich Are Turning Their Mansions Into Impenetrable Fortresses: Anxiety over high-profile violence has the wealthy spending big on armed security, bunkers and even moats to keep themselves safe from intruders. (Wall Street Journal)

Who Is Paying the Trump Tariffs? Until recently the question of who pays tariffs wasn’t controversial among economists. The overwhelming consensus was that under normal circumstances tariffs — taxes on imported goods — are passed on to consumers in the form of higher prices. There are caveats and exceptions to this consensus, but these caveats are well understood and for the most part don’t apply to the tariffs imposed by the Trump 47 administration. (Paul Krugman) see also How a supplier of nuts and bolts could curb Trump’s tariff overreach: A new lawsuit reveals how businesses are forced to navigate an opaque and arbitrary system. (Washington Post)

$185 billion is the down payment — the 4 skills that survive when agents code for months The infrastructure bubble for AI is actually just a down payment, and only a handful of human skills will remain valuable as AI agents become more capable autonomous workers. Here’s what changed and what it means for your career (Nate’s Newsletter / Substack)

The British Are Furious at Donald Trump Over Chicken. They Actually Have a Pretty Good Point. The UK’s “chlorinated chicken” panic is back — Trump is pressuring Britain to accept American poultry in exchange for a tech deal, and 150,000 Brits have signed petitions to keep it out. It’s part food safety fight, part cultural identity crisis. (Slate)

This venture capital firm believes investing in climate is ‘Obvious’—and just raised another $360 million to prove it: Obvious Ventures managing director Andrew Beebe tells ‘Fast Company’ why now’s a great time to be backing climate tech, the trendy idea he’s glad the Trump administration is killing, and why he’s still optimistic for the future of the planet. (Fast Company)

Gallup Will No Longer Measure Presidential Approval After 88 Years: The most-cited barometer of presidential job performance since FDR is being retired. Gallup says it’s a strategic shift in research priorities. The timing — with Trump’s approval at a historic low of 36% — is purely coincidental, of course. (The Hill) see also Poll: Trump’s Ratings on Immigration Tumble as Americans Lose Confidence in His Top Issue: The one issue that was supposed to be Trump’s ace in the hole is now underwater. Americans are losing confidence in his handling of immigration, even among Republican-leaning voters. (NBC News)

• AI Helps Scam Centers Evade Crackdown in Asia, Dupe More Victims: Scam operations across Southeast Asia are using AI to scale up fraud, outsmart law enforcement, and target more victims than ever. (Bloomberg)

The Bay Area’s most unlikely landmark: A 125-year-old light bulb that’s still burning: A typical light bulb can last about a year. The one hanging from the ceiling at Fire Station No. 6 in Livermore has lasted more than a century. The Centennial Light Bulb, as it’s known, has been glowing almost continuously since 1901. In June, it’s expected to reach its 125-year mark. Time has turned a simple light fixture into one of the Bay Area’s head-scratching curiosities. (San Francisco Chronicle)

TV, It’s Not Just for Humans Anymore: Videos aimed at pets are drawing millions of views. But who’s actually watching? (New York Times)

Be sure to check out our Masters in Business this week with Heather & Doug Bonaparth, a married couple who work together and wrote a book on the financial challenges couples face: “Money Together: How to find fairness in your relationship and become an unstoppable financial team.” Our discussion sits somewhere in between financial planning and couples therapy, built around real stories that try to help couples find a healthier approach to money.

 

U.S. government has lost more than 10,000 STEM Ph.D.s since Trump took office

Source: Science

Sign up for our reads-only mailing list here.

 

The post 10 Presidents Day Reads appeared first on The Big Picture.

India Might Soon Replace Russian Oil With Venezuelan At Scale After All

Zero Hedge -

India Might Soon Replace Russian Oil With Venezuelan At Scale After All

Authored by Andrew Korybko,

A new US license is being interpreted as prohibiting Venezuelan energy companies from transactions with China among other countries, which if true, could lead to India purchasing the 642,000 barrels of oil per day that China imported on average last year and thus halving its import of Russian oil.

RT drew attention on social media to the Department of the Treasury’s newly issued “Venezuela General License 48” allowing US companies to provide “goods, technology, software, or services for the exploration, development, or production of oil or gas in Venezuela” with two strings attached.

The first one is that any contract that their partners enter into will be governed under the laws of the US, which segues into the second one prohibiting any transactions with Russia, Iran, North Korea, Cuba, and China.

It’s for this reason that RT interpreted the abovementioned license in their tweet as the “US Ban[ning] Venezuelan Oil Producers From Doing Business With Russia & China”.

That’s reasonable since it was explained here that the Trump Doctrine is shaped by Elbridge Colby’s “Strategy of Denial”, which in its simplest form, seeks to deny strategic resources to US rivals such as the previously described countries.

This is especially the case as regards China, the US’ systemic rival, but Trump earlier sent mixed signals.

He recently welcomed Chinese investment in Venezuela’s energy industry, but in retrospect, that might have just been for the sake of managing the Sino-US rivalry amidst their ongoing trade talks.

Trump wants a deal with Xi, which might become much more difficult for his counterpart to agree to if he openly declares his intent for the US to deny China continued access to Venezuela’s strategic resources. It therefore makes sense for the US to quietly implement this policy through its new license instead.

Even prior to its promulgation, Russian Foreign Minister Sergey Lavrov complained that “our companies are being openly forced out of Venezuela”, so this policy was already being informally implemented by Delcy Rodriguez’s government under US pressure. Apart from Cuba, none of the countries that the US’ new license prohibits transactions with are dependent on Venezuelan energy, but cutting them out of this industry serves another purpose arguably even more strategic than denying them its resources.

Trump boasted earlier this month that India agreed to stop purchasing Russian oil as part of the terms of its trade deal with the US and replace its imports with American and possibly Venezuelan oil instead. It was hitherto assessed prior to the US’ new license that “India Is Expected To Only Slowly Reduce Its Import Of Russian Oil” in no small part due to the Venezuelan Ambassador to China confirming his country’s interest in continuing exports to it and Trump welcoming Chinese investment in this industry.

If RT’s interpretation of the license is correct, and Lavrov believes so after complaining about the US’ new prohibition on Venezuelan energy transactions with Russia during his latest appearance at the Duma, then India could purchase the 642,000 barrels per day of oil (bpd) that China imported on average last year.

That’s more than half of the 1 million bpd that India imported from Russia last month, which could lead to a sharp reduction in the budgetary revenue that Russia expected to receive from such sales.

The US is actively monitoring India’s direct and indirect import of Russian oil per the condition under which it recently lifted last summer’s punitive 25% tariff that was imposed because of these dealings.

Therefore, by cutting China out of the Venezuelan energy industry and consequently enabling India to replace its import of that country’s oil, the US is facilitating India’s rapid reduction of Russian oil imports and might even zero it out if this policy is soon replicated with respect to Iran’s oil exports to China.

Tyler Durden Mon, 02/16/2026 - 06:10

Mercedes-Benz Recalls Nearly 12,000 Electric Vehicles, Says Battery Packs Could Ignite

Zero Hedge -

Mercedes-Benz Recalls Nearly 12,000 Electric Vehicles, Says Battery Packs Could Ignite

What happens when spending $70,000 to signal virtue with your fancy EV goes wrong? FIRE! 

Mercedes-Benz USA has announced a recall of 11,895 electric vehicles due to potentially faulty cells in the automobiles’ high-voltage battery packs that could lead to a fire, like what happened in front of a MBZ dealer in Malaysia in 2024 - though that one was in the middle of charging, while this recall says they can 'spontaneously catch fire' either while parked or while driving. 

The move comes after the NHTSA issued a safety recall notice posted on X on Feb. 12 announcing that it affected 1,708 Mercedes-Benz EQB 350 4Matic battery-powered SUVs model years 2022-2024. On top of that, 3,674 Mercedes-Benz EQB 250+ hybrid compact SUVs model years 2023-2024 and 6,513 2022-2024 EQB 300 4Matic vehicles were recalled. 

According to the agency, the vehicles could spontaneously catch fire either while parked or while driving due to an internal short circuit in the automobile’s high-voltage battery power supply. The issue stems from variations in the battery manufacturing process, the notice stated.

Certain battery cells in the high-voltage battery, from an early production period, are considered to be less robust against different stress factors potentially occurring during the life of the vehicle,” Mercedes-Benz said.

“If a thermal incident were to occur during driving, the driver would be made aware of the issue by a high-voltage battery warning malfunction message in the instrument cluster. Should the thermal incident occur while the vehicle is parked, the driver would not receive a warning.”

In early 2024, an EQB caught fire while charging outside a MBZ dealership in Jahor Bahru. 

As the Epoch Times notes further, the lithium-ion batteries were manufactured by China-based Farasis Energy.

Mercedes-Benz said that after being made aware of vehicles catching fire it issued a software update to remedy the problem. However, in November 2025, two vehicles located in Europe combusted after receiving the software update, triggering an in-depth analysis of the efficacy of the software remedy in markets outside of China.

The logo of Mercedes-Benz is seen on the wheel rim of a passenger car on Feb. 17, 2023. Thomas Kienzle/AFP via Getty Images

In December 2025 and January 2026, Mercedes-Benz began working with the battery supplier to tear down and test battery packs and cells. It also conducted an on-site inspection of production methods at Farasis Energy’s manufacturing facilities in Ganzhou in southeastern China.

MBAG concluded that the effectiveness of the current software update to sufficiently reduce the risk of thermal incidents cannot be fully confirmed for all affected vehicles,” the NHTSA recall notice said.

To date, Mercedes-Benz has received reports of two vehicle fires in the United States that were attributable to faulty battery cells. The company said it would replace battery packs in the recalled vehicles at licensed Mercedes-Benz dealerships at no cost to owners.

Owners of recalled vehicles are advised to only charge their vehicles to 80 percent until they can get their battery packs replaced.

Out of an abundance of caution, customers are additionally advised to park their vehicles outside,” the recall notice said.

MBAG said a change in production procedures eliminates the issue with faulty cells for vehicles produced after July 31, 2024. Owners will be notified of the recall campaign beginning on Feb. 27. The NHTSA recall number is 26V073.

Tyler Durden Mon, 02/16/2026 - 05:35

'No Prospect' Of European Governments Preventing Civil War, Warns British Army Colonel

Zero Hedge -

'No Prospect' Of European Governments Preventing Civil War, Warns British Army Colonel

Authored by Steve Watson via Modernity.news,

Major unrest looms as political leaders kick the can down the road on immigration and integration failures, according to a seasoned military expert.

Retired Colonel Richard Kemp, a former commander of British forces in Afghanistan, has issued a stark warning about the trajectory of social cohesion in Europe and Britain. Speaking to Israeli broadcaster i24News, Kemp highlighted how integration breakdowns have worsened over the past two decades, paving the way for inevitable conflict.

“Things have been getting worse, getting bad, for many years, and they are only going to get worse,” Kemp stated, pointing to the reluctance of governments to confront the issues head-on.

Kemp, who also served in counter-insurgency operations in Northern Ireland and held intelligence roles in Westminster and the Cabinet Office, emphasized the lack of political will to address what he termed the “Islamification” of the UK. 

“No government, the government now or any prospective government of the UK, has the guts to stop it,” he said. “If they want to take strong action to prevent the Islamification of the UK, it’s going to mean big trouble for them. They don’t want trouble, they look four years ahead, they will kick the can down the road to someone else.”

This political shortsightedness, according to Kemp, is fueling the risk of “civil war in Europe.” He described a potential scenario resembling Northern Ireland but on a far more intense scale, where “you have the indigenous British and some of the immigrant population and the British government all on three different sides fighting against each other.”

The officer attributed the slim chances of maintaining social order to democratic dysfunction and a lack of real choice for voters. 

"The big problem that British people have is they don’t have political choice. We don’t really live in a democracy,” Kemp asserted. “Whatever party you vote for, you get the same policies. That applies also to immigration and to the way in which the Islamic population is allowed to grow in numbers and dominance.”

Kemp also noted the rise of Islamist politics in the UK, with Gaza-focused candidates winning seats in high-migration areas. “We’re going to see much more of that in the next election,” he predicted, referencing concerns within the Labour Party, including Health Minister Wes Streeting’s private message: “I fear we’re in big trouble here – and I am toast at the next election. We just lost our safest ward in Redbridge (51% Muslim, Ilford S) to a Gaza independent. At this rate, I don’t think we’ll hold either of the two Ilford seats.”

This isn’t the first time Kemp has raised the alarm. As we highlighted last year, he previously warned of growing unrest over mass migration and allegations of child sexual abuse by new arrivals, stating: “There’s only so much that I think people can take of that, and they’ve been very quiet up until now, the people in the UK have not really raised their voices against this, or in a very limited way only. But the more it develops, and it is going to develop more and more, the more unrest we are going to see.”

In that earlier commentary, Kemp went further: “And they have no option. I’m not encouraging or supporting this, but I think the people will feel they have no option than to take action into their own hand rather than rely on political leaders who are doing nothing, in their eyes. I think there is every likelihood, I don’t know what the timeframe is, but I would go so far as to not just predict civil unrest, but civil war in the UK in the coming years if this situation continues which I believe it will.”

Kemp’s views align with broader expert analyses on Europe’s fracturing societies. King’s College London Professor David Betz has warned that countries like the UK, France, and Sweden are already in a “pre civil war” state, with “dire social instability,” “economic decline,” and “elite pusillanimity” as key precursors. 

Betz stated: “We’re already past the tipping point, is my estimation… we are past the point at which there is a political offramp. We are past the point at which normal politics is able to solve the problem… almost every plausible way forward from here involves some kind of violence in my view.”

Betz further urged: “I would probably avoid big cities. I would suggest you reduce your exposure to big cities if you are able,” and concluded: “Things are bad now, but they are going to get very much worse. Hopefully after they will get better, but you will have to go through the period of very much worse before you get there.”

Echoing these concerns, academic Michael Rainsborough described Britain’s path as intentional rather than accidental, rooted in elite strategies of division. 

He referenced historical policies under Tony Blair aimed “to rub the Right’s nose in diversity,” and warned of a “descent into what we termed dirty war,” involving internal repression and low-intensity strife.

Rainsborough highlighted the erosion of national sentiment, noting public spaces filled with “Pride flags, Palestinian flags, Ukrainian flags — anything, it seems, but the Cross of St George.” 

He cautioned that such dynamics could lead to “Balkanisation — or, in the local idiom, Ulsterisation,” drawing parallels to Northern Ireland’s troubles.

These repeated warnings from military and academic figures underscore a pattern: unchecked mass migration, elite detachment from public will, and a refusal to enforce borders are eroding the fabric of Western societies. 

As globalist policies prioritize appeasement over security, the pushback from ordinary citizens grows—demanding leaders who put their own people first, before the powder keg ignites.

Your support is crucial in helping us defeat mass censorship. Please consider donating via Locals or check out our unique merch. Follow us on X @ModernityNews.

Tyler Durden Mon, 02/16/2026 - 05:00

Munich, 2007: The Day The West Was Told 'No'

Zero Hedge -

Munich, 2007: The Day The West Was Told 'No'

Authored by Gerry Nolan via The Islander

They like to pretend it came out of nowhere.

They like the bedtime story: Europe was peacefully humming along in its post-history spa — open borders, cheap energy, NATO as a charity, Russia as a gas station with a flag… and then, one day, the barbarian kicked the door in for no reason at all.

That story is not just dishonest. It’s operational. It’s the propaganda you tell yourself so you can keep the addiction going without ever admitting how self-destructive it is.

Because the truth is uglier and far more incriminating: In Munich, on February 10, 2007, Vladimir Putin stood on the most flattering stage the Atlantic system owns — the Security Conference where Western officials applaud themselves for maintaining “order” and he laid out, to their faces, the skeleton of the coming disaster. He didn’t whisper it in a back channel. He used the microphone to deliver some much needed medicine, however hard it would be for the Empire to swallow.

He even signaled he wasn’t going to play the usual polite theatre — the kind where everyone agrees in public and stabs each other in classified annexes. He said the format allowed him to avoid “pleasant, yet empty diplomatic platitudes.”

And then he did the unforgivable thing, (gasp!) he described the empire as an empire. He named the unipolar intoxication — that post–Cold War hallucination that history had ended, that power had found its final owner, that NATO could expand forever without consequences, that international law was optional for the enforcer class and compulsory for everyone else.

Putin’s core argument was brutally simple: a unipolar model is not only unacceptable, it’s impossible. Not “unfair.” Not rude. Impossible.

(Because in a world with) “one center of authority, one center of force, one center of decision-making” is a world where security becomes privatized — where the strong reserve the right to interpret rules (with exemptions for themselves), and the weak are told to accept it as morality. (And yes, he put it in exactly those terms — one center, one force, one decision — the architecture of domination.)

And when you build that kind of world, everyone else does the only rational thing left: they stop trusting the wall of law to protect them, and they start arming for survival. Putin said it outright: when force becomes the default language, it “stimulates an arms race.”

This is where the Western client media — professionally disenginuous as ever, clipped one or two spicy lines and missed the larger point: Munich 2007 wasn’t “Putin raging.” It was Russia publishing its redlines in front of the class.

And then came the part that should have frozen the room. Putin named it – NATO expansion. Putin didn’t argue it as nostalgia. He argued it as provocation — a deliberate reduction of trust. He asked the question no Western leader ever answers honestly:

“Against whom is this expansion intended?”

And then he drove the blade in: what happened to the assurances made after the Warsaw Pact dissolved? “No one even remembers them.”

That line matters because it goes well beyond grievance — it’s a window into how Russia saw the post–Cold War settlement: not as a partnership, but as a rolling deception. Expand NATO, move offensive infrastructure, then call it “defensive.” Build bases, run exercises, integrate weapons systems, and insist the other side is paranoid for noticing.

Putin’s formulation was clean: NATO expansion “represents a serious provocation that reduces the level of mutual trust.”

Now pause and look at the psychology of the West in that room. They didn’t hear a warning. They heard audacity. They didn’t hear “security dilemma.” They heard “how dare you speak like an equal.” That’s the cultural glitch at the heart of the Atlantic project: it believes its own core lie and cannot process sovereignty in others without treating it as aggression.

So Munich 2007 became, in Western memory, not the moment Russia told the truth — but the moment Russia “showed its hand.” The implication: Russia’s “hand” was evil, and therefore any response to it was justified. Which is exactly how you sleepwalk into catastrophe.

The real prophecy: not mysticism, mechanics

What was prophetic about Putin’s speech isn’t that he had a crystal ball.

It’s that he understood the West’s incentive structure:

  • A security system that expands by definition (NATO) needs threats by definition.
  • A unipolar ideology needs disobedience to punish, otherwise the myth collapses.
  • A rules-based order that breaks its own rules must constantly produce narrative cover.
  • An economic model that offshore-outs its industry and imports “cheap stability” must secure energy routes, supply chains, and obedience — by finance, by sanctions, by force.

Putin was saying: you can’t build a global security architecture on humiliation and expect it to be stable. Russia had lived through the wreckage of Yugoslavia, Afghanistan and Iraq and that this playbook would be used again and again, with Georgia, with Syria, Libya, Iran and Russia itself if Putin did nothing.

He was also saying and this is where the Russophobic mass hysteria accelerates — that Russia would not accept a subordinate role in its own neighborhood, on its own borders, under a wannabe hegemon’s military umbrella.

This is where the Western catechism kicks in: “neighborhood” is called “sphere of influence” when Russia says it, and “security guarantees” when Washington says it. And so the hysteria machine warmed up.

You saw it in the immediate reception: Western elites, including Merkel and McCain treating the speech as an insult rather than a negotiation offer. You saw it in the years that followed — the steady normalization of the idea that Russia’s security concerns were illegitimate, and therefore could be ignored with moralistic lectures, free of consequences..

Ignore, expand, accuse, repeat.

That loop is your road to 2022 and to today, in Munich 2026. Groundhog day without learning the vital lessons to end the loop of utter madness.

Munich, Feb 13 (2026): Merz admits the order is dead — and calls it “uncertainty”

Fast forward. Same city. Same conference. Same Western liturgy, just with more panic in the eyes and the nucleus of a terrifying realization.

German Chancellor Friedrich Merz using his best performative courage, murmured that the world order we relied on is no longer there. Framing the post–Cold War “rules-based order” as effectively crumbled and almost begging for a reset in transatlantic relations. He goes further: he talks up a stronger European defense posture, and pointed to discussions with France about a European nuclear deterrent concept, a “European nuclear shield.”

And then comes the line that should be carved into the marble of the Munich conference hall as Exhibit A: Merz argues that in this era, even the United States “will not be powerful enough to go alone.”

Read that again. The BlackRock chancellor on NATO’s spiritual home turf is effectively saying: the empire is overstretched, the illusion of old certainties are gone, and Europe will be left hung out to dry. Talk about strategic vertigo!

And it is exactly what Putin was talking about in 2007: when one axis tries to act as the planet’s owner, the cost accumulates — wars, blowback, arms races, fractured trust, until the system starts to wobble under its own contradictions.

Merz also reported begged the U.S. and Europe to “repair and revive” transatlantic trust. Repair trust with what currency? Because trust isn’t repaired by speeches. Trust is repaired by reversing the toxic and suicidal behaviors that destroyed it.

And those behaviors were precisely what Putin named in 2007:

  • expanding military blocs toward another power’s borders,
  • treating international law as a menu,
  • using economic coercion as a weapon,
  • and then pretending the consequences are “unprovoked.”

Europe is now gasping at the invoice for that policy set: industrial stress, energy insecurity, strategic dependency, and a political class that can’t admit how it got here without indicting itself.

So instead of confession, you get moral performance. Instead of strategy, you get hysteria and cartoon slogans. Instead of peace architecture, you get escalation management — the art of walking toward the cliff while calling it deterrence.

Merz’s remarks underscore that Europe is being forced to contemplate a harsher security environment and greater responsibility, all of its own suicidal making — but it still frames the Russia question in the familiar moralizing register.

Which is the whole tragedy: they can feel the tectonic plates shifting beneath them, yet they keep reciting the same old prayers that summoned the earthquake.

Why we’re here: the Western addiction to expansion — and the manufactured Russophobia that lubricated it

Russophobia is more than just bloodthirsty prejudice. It’s the (failed) policy tool of choice of the last few empires against Russia. It’s what you pump into the Mockingbird media bloodstream to make escalation feel like virtue and compromise feel like treason.

You don’t have to love everything Russia does to see the mechanism: a permanent narrative of Russian menace makes every NATO move sound defensive, every EU economic self-harm sound righteous, and every diplomatic off-ramp sound like appeasement.

It creates a psychological environment where:

  • NATO expansion becomes “freedom,”
  • coups become “democratic awakenings,”
  • sanctions become “values,”
  • censorship becomes “information integrity,”
  • and war becomes “support.”

And once you install that operating system, you can torch your own industry and still call it moral leadership.

That’s the dark comedy of Europe since 2014 — accelerating post 2022: self-sanctioning, deindustrializing pressure, energy price shocks, and strategic submission to Washington’s delusion of carving up Russia, sold as “defending democracy.” Meanwhile, Moscow reads the West’s behavior the same way it read it in 2007: as a hostile architecture closing in, dressed up as virtue.

Putin’s Munich speech — again, not mysticism — warned that when the strong monopolize decision-making and normalize force, the world becomes less safe, not more.

So what did the West do?

It made the “rules-based order” a brand — while breaking rules (international law) whenever convenient. Exceptionalism at almost biblical levels, God’s chosen people. It expanded NATO while insisting the expansion was harmless.

It treated Russian objections as evidence of Russian guilt — which is circular logic worthy of an inquisitor. And it nurtured a media culture that could not imagine Russia as a rational actor responding to a pattern of ugly regime change behavior — only as a cartoon villain driven by pathology. Not analysis but theological warfare.

The punchline Munich won’t say out loud

Here’s the line Munich still cannot speak, even in 2026, even with Merz admitting the old order is gone: The West didn’t misread Putin’s warning. It rejected it because accepting it would have meant limiting itself.

Munich 2007 was a chance — maybe the last clean one — to build a European security architecture that wasn’t just NATO with better PR. A chance to treat Russia as a Great Power with legitimate interests, not a defeated adversary to be regime changed and broken apart.

And now, in Munich 2026, they stand amid the wreckage and call it “uncertainty,” as if the storm blew in from nowhere. The BlackRock Chancellor calls for resets, for revived trust, for Europe to become stronger, for new deterrence ideas.

But the reset Munich needs is the one it refuses:

  • reset the premise that NATO will remain a viable alliance beyond the war in Ukraine,
  • reset the premise that Russia must absorb strategic humiliation and accept the inverse, the reality as it is – where it’s in fact Western Europe that is wearing the humiliation.
  • reset the premise that international law is a tool of the powerful,
  • reset the premise that Europe’s role is to be the forward operating base and European sovereignty sacrificed to buy the Empire time .

Until that happens, Munich will keep happening — every year, more anxious, more militarized, more rhetorical, more detached from the material reality its own disastrous policies created. And Putin’s “prophecy” will keep looking prophetic — not because he conjured the future, but because he correctly described the machine.

Tyler Durden Sun, 02/15/2026 - 23:20

The "Swipe Era" Has Forever Reshaped How Couples Meet

Zero Hedge -

The "Swipe Era" Has Forever Reshaped How Couples Meet

Tinder forever changed the landscape of online dating when it introduced the swipe function in 2012: left to pass, right to like. The result was a gamified experience that felt frictionless and addictive. Other dating apps copied it, and then the "swipe era" ignited.

Before that, online dating was mostly on boring websites, like Christian Mingle and Farmers Only, that felt closer to digital classifieds. Matches were more local and delivered in slower batches, and users worked through profiles and messages to decide whom to meet. The process is now largely automated by an algorithm and resembles a game, with matches presented in rapid succession.

Tinder and other dating apps have forever changed how heterosexual couples in the U.S. meet, overtaking introductions through friends around 2013, according to a recent survey.

The chart below shows how online dating was fundamentally transformed by two waves of technology: first, the online web's takeoff in the mid-1990s, and then the smartphone era after 2007. The rise of the iPhone and Tinder in 2012 helped propel the second wave, with roughly 40% of heterosexual couples in the U.S. now meeting online. That figure was in the low single digits in the mid-1990s.

"We find that Internet meeting is displacing the roles that family and friends once played in bringing couples together," researchers Michael Rosenfeld, Reuben Thomas, and Sonia Hausen wrote in the 2019 paper.

Online dating hasn't rewritten love - it's just greatly expanded the pool of potential partners. It also shows how an even larger share of human life now happens online.

Remember during the Covid-era when Meta CEO Mark Zuckerberg aggressively pushed the metaverse as a way to move more of daily life online?

Beyond the metaverse's failures, online dating has also been running into headwinds lately, as younger people reduce screen time and choose to meet in the real world again.

According to Adjust.com, an app insight blog, "Looking at dating app installs and sessions from January 2023 to December 2024, it's clear that user interest has been gradually declining. From January 2023 to December 2024, dating app installs and sessions declined by 13% year over year. Despite this overall decrease, sessions remained resilient, particularly during key seasonal periods."

And, weirdly enough, Gen Z has given up on alcohol (readers already know that), but a new report suggests they're also giving up on sex. Likely because sex can lead to babies, and babies can lead to drained bank accounts.

It increasingly looks like Gen Z's habits are reshaping daily life and parts of the economy. They've certainly dented alcohol consumption and may soon influence family formation. And, as noted above, they could also be contributing to a peak in dating app usage.

Tyler Durden Sun, 02/15/2026 - 22:45

The Biggest Bait-and-Switch War Of The Century

Zero Hedge -

The Biggest Bait-and-Switch War Of The Century

Authored by Jim Bovard

A few presidencies ago, Washington politicians used boundless political and intellectual chicanery to drag America into a ruinous war. Thousands of Americans died and scores of thousands of Iraqis perished due to the official myth of Saddam Hussein as the twentieth hijacker.

Last November, Axios published new damning information on the role of Saudi government officials in bankrolling the 9/11 attacks on New York City and the Pentagon. Private lawsuits against the Saudi regime "unearthed evidence showing one Saudi official—who acknowledges aiding two men who became hijackers—made a drawing of a plane and a mathematical formula that allegedly could have been used to fly into the World Trade Center." That was only the latest stunning revelation in a coverup that will celebrate its twenty-fifth birthday this year.

In 2002 and early 2003, the W. Bush administration rushed to exploit 9/11 to justify invading Iraq. But there was a problem with that con job. A 2002 FBI memo stated that there was "incontrovertible evidence that there is support for these [9/11 hijacker] terrorists within the Saudi Government." A joint House-Senate congressional investigation found extensive evidence that the Saudi government, not Saddam Hussein, propelled the hijackers. The Bush administration succeeded in suppressing the key twenty-eight pages of that congressional report on the Saudi role on 9/11. 

The late Rep. Walter Jones (R-NC) became a leading proponent of declassifying those twenty-eight pages, declaring in 2013:

"If the 9/11 hijackers had outside help—particularly from one or more foreign governments—the press and the public have a right to know what our government has or has not done to bring justice to all of the perpetrators."

Those twenty-eight page were finally released (mostly) in 2016, revealing how Saudi government officials directly financed and provided diplomatic cover for several of the hijackers in the United States shortly before they unleashed havoc.

Truth delayed is truth defused. Blocking the evidence of the Saudi bankrolling of 9/11 enabled the Bush administration to kill tens of thousands of Iraqis.

The Bush administration sold the Iraq war as payback for 9/11. While false claims by President George W. Bush and Vice President Dick Cheney on Iraqi Weapons of Mass Destruction (WMDs) have received ample coverage, the Bush Saudi-Iraqi Bait-and-Switch has faded into memory.

In a memo Bush sent on March 18, 2003, notifying Congress that he was launching a war against Iraq, Bush declared that he was acting "to take the necessary actions against international terrorists and terrorist organizations, including those nations, organizations, or persons who planned, authorized, committed, or aided the terrorist attacks that occurred on September 11, 2001."

Bush invoked this justification even though his administration had never offered a shred of evidence tying Saddam to 9/11. Bush and team continually threw out new accusations and then backed off, knowing that few people were paying close enough attention to recognize that previous charges had collapsed like a houses of cards.

In the first months after 9/11, there was little mention of Iraq in the public pronouncements by Bush and his top officials. But in his State of the Union address on January 29, 2002, Bush stunned many people by announcing that Iraq, along with Iran and North Korea, were part of an "axis of evil." Since the Global War on Terror had stratospheric support levels in the polls from the American people, the best way to sanctify a war against Iraq was to redefine it as part of the Global War on Terror. Bush declared on September 25, 2002:

"Al Qaeda hides, Saddam doesn’t, but the danger is, is that they work in concert. The danger is that al Qaeda becomes an extension of Saddam’s madness and his hatred and his capacity to extend weapons of mass destruction around the world…You can’t distinguish between al Qaeda and Saddam when you talk about the war on terror. They’re both equally as bad, and equally as evil, and equally as destructive."

The next day, Defense Secretary Donald Rumsfeld announced that the United States possessed "bulletproof" evidence linking Saddam and Al Qaeda. But it was a bullet that could never be exposed to sunlight. An earlier alleged link between Iraqi agents and hijacker Mohamed Atta meeting in Prague had collapsed, with the story disavowed by both the CIA and the Czech government.

On October 7, 2002, Bush, speaking to a selective audience of Republican donors in Cincinnati, laid out his logic:

"We know that Iraq and the Al Qaida terrorist network share a common enemy—the United States of America. We know that Iraq and Al Qaida have had high-level contacts that go back a decade…And we know that after September the 11th, Saddam Hussein’s regime gleefully celebrated the terrorist attacks on America."

The fact that some Iraqis cheered the carnage on September 11 proved Saddam could team up with Al Qaeda for a second 9/11.

The link between Saddam and Al Qaeda then took a three-month recess, returning in the 2003 State of the Union address, when Bush declared that “Saddam Hussein aids and protects terrorists, including members of Al Qaeda.” Bush reached for the ultimate hot button:

"Imagine those 19 hijackers with other weapons and other plans, this time armed by Saddam Hussein. It would take one vial, one canister, one crate slipped into this country to bring a day of horror like none we have ever known."

Three days later, when Bush was directly asked by a journalist at a White House press conference, "Do you believe that there is a link between Saddam Hussein, a direct link, and the men who attacked on September the 11th?" Bush replied, "I can’t make that claim." Yet, that did not stop him from endlessly making the inference.

But the Bush administration’s new "evidence" failed the laugh test. The Los Angeles Times revealed:

"The Bush administration’s renewed assertions of links between Iraq and Al Qaeda are based largely on the murky case of a one-legged Al Qaeda suspect who was treated in Baghdad after being wounded in the war in Afghanistan."

Time noted of Bush’s message on Saddam and Al Qaeda:

"If there was no visible evidence to link the two, he just used that fact to argue his point: the danger is everywhere, even if we can’t see it; the threat is growing, even if we can’t prove it. The Administration’s argument for war is based not on the strength of America’s Intelligence but on its weakness."

In the days after 9/11, when pollsters asked Americans who they thought had carried out the 9/11 attacks, only 3% of respondents suggested Iraq or Saddam Hussein as culprits. But by February 2003, 72% of Americans believed that Hussein was “personally involved in the September 11 attacks.” Shortly before the March 2003 invasion, almost half of all Americans believed that “most” or “some” of the 9/11 hijackers were Iraqi citizens. Only 17% of respondents knew that none of the hijackers were Iraqis. 73% believed that Saddam “is currently helping al-Qaeda.”

American soldiers were hit with more concentrated doses of propaganda than private citizens. A 2006 poll of American troops revealed that 85% believed the U.S. mission sought “to retaliate for Saddam’s role in the 9/11 attacks.” That belief likely helped spur some of atrocities against Iraqi civilians by U.S. troops.

U.S. intelligence agencies always knew that the Saddam-9/11 link was a political concoction by pro-war politicians. In July 2004, the Senate Intelligence Committee issued a 511-page report that recognized that the CIA accurately concluded that “to date there was no evidence proving Iraqi complicity or assistance” in the 9/11 attacks. The report noted that the CIA’s accurate judgments on Saddam, Al Qaeda, and the non-link to 9/11 “were widely disseminated [prior to the U.S. invasion of Iraq], though an early version of a key CIA assessment was disseminated only to a limited list of Cabinet members and some sub-Cabinet officials in the administration.”

Neither George Bush nor Dick Cheney were ever held liable for their lies that led to carnage in Iraq. Perhaps that is the biggest lesson that Washington policymakers take from the Iraq War.

On the campaign trail in 2016, Donald Trump sounded as if he recognized the vast folly of invading Iraq to topple Saddam. But Trump’s promise to “end the endless wars” seems like a hundred years ago. An Associated Press poll last month found that 56% of Americans believed that Trump had already “gone too far” with his military interventions abroad. But will pro-war politicians and political appointees fabricate new pretexts to attack Iran or elsewhere?

Tyler Durden Sun, 02/15/2026 - 22:10

Bartlett: Traditional Media No Longer Serves Democracy’s Needs

The Big Picture -

 

Why the Traditional Media No Longer Serves Our Needs
The Truth Matters, Chapter 1
Bruce Bartlett
Bartlett’s Notations, Feb 09, 2026

 

 

 

 

With the decimation of the Washington Post newsroom by billionaire Jeff Bezos, the crisis of the media seems to have reached an apex. I saw this coming in 2017 and wrote a book about it: The Truth Matters. Since I believe that the message of the book still resonates, I’ve decided to serialize it here on Substack. It’s a short book so it shouldn’t occupy too much of your time. Following is chapter one.

Key points:

· The fairness doctrine was obsolete and cannot be revived.

· Conservatives were underserved for many years by traditional media.

· Progressives were slow to embrace new media such as talk radio.

People have never been happy with the news media, always blaming it for lying, misinforming and being unfair to one side or the other. Thomas Jefferson expressed views on this subject that many people today no doubt would share. In an 1807 letter to John Norvell, Jefferson said,

To your request of my opinion of the manner in which a newspaper should be conducted, so as to be most useful, I should answer, “by restraining it to true facts & sound principles only.” Yet I fear such a paper would find few subscribers. It is a melancholy truth, that a suppression of the press could not more completely deprive the nation of its benefits, than is done by its abandoned prostitution to falsehood. Nothing can now be believed which is seen in a newspaper. Truth itself becomes suspicious by being put into that polluted vehicle. The real extent of this state of misinformation is known only to those who are in situations to confront facts within their knowledge with the lies of the day….

I will add, that the man who never looks into a newspaper is better informed than he who reads them; inasmuch as he who knows nothing is nearer to truth than he whose mind is filled with falsehoods & errors. He who reads nothing will still learn the great facts, and the details are all false.

The complaint that the news media have a built-in bias is an old one and there is truth in it. The major media have long been based in our major cities where people naturally tend to be more socially liberal. That has been one of the great attractions for living in cities rather than small towns and rural areas that tend to be socially conservative. Additionally, it’s a fact that people with a liberal disposition have tended to gravitate toward journalism as a profession, while conservatives gravitate elsewhere.

Media consolidation also tended to make it more liberal. In any town with more than one newspaper, one would usually be conservative if only for competitive reasons. Partisan affiliation and ideological compatibility in editorials, news judgement and among columnists was one reason people subscribed to a particular paper. But as newspapers have closed, those with a conservative bent tended to be the first to go because they were usually the afternoon papers. Those with no competition tend toward bland mushiness when it comes to politics.

Radio and television have always tended to be more even-handed because news presentation focused on breaking stories where audio or video was available. It didn’t lend itself to commentary or editorializing. Moreover, there was a government rule called the fairness doctrine that required both sides to be presented when political endorsements were made or opinions expressed. But the main effect of this rule was to discourage the presentation of any opinions at all, rather than waste precious air time presenting alternative viewpoints.

In 1987, the fairness doctrine was abolished. Many rue this day as the one when fairness itself began to disappear from the media. But the fairness doctrine never applied to the print media and it was already clear by 1987 that cable—CNN went on the air in 1980—was ushering in a new era of news coverage. It was untenable to maintain restrictions on over-the-air media that didn’t apply to print publications or cable. It’s likely that the fairness doctrine would have been struck down by the courts if it wasn’t repealed.

It is indisputable, however, that abolition of the fairness doctrine gave rise to talk radio. Developments in the radio market were also critical; the AM band had been suffering for years as the FM band was better suited to music. Rush Limbaugh was the first to recognize that the end of the fairness doctrine meant that he could do an entire show devoted to nothing but expressing his opinions, of which he had many, all strongly felt and vigorously expressed. The AM band was well-suited to talk and was cheaper than employing disk jockeys to curate music selections.

It’s perhaps an accident of history that a strong conservative like Limbaugh was first to recognize the political potential of talk radio. It was probably also true that conservatives were underserved by the liberal sameness of conventional journalism at the time. At least in his early years, Limbaugh was a genuine news source, giving national attention to stories, research and viewpoints that were hard to find elsewhere. Before him, the only national publications with a broad reach that reflected a conservative bent were the Wall Street Journal and Reader’s Digest.

Limbaugh’s success led to the creation of Fox News by Australian media mogul Rupert Murdoch, based on a vision long nurtured by Republican media guru Roger Ailes. With most television tilting a bit to the left, they cleverly positioned Fox in the middle of the political spectrum, which made it slightly to the right of its competitors.

The enormous financial success of conservative talk radio and Fox News stimulated growth of a vast conservative media network. Meanwhile, efforts to copy its success by progressives have uniformly failed. No one is quite sure why; it may be that those on the left are inclined to be satisfied with the traditional mainstream media. The problem is that it is dying a slow death. Something will replace it, we don’t know what just yet. Many analysts believe that virtually all print publications will disappear in a few years.

It may be that progressives have more to gain from developing new methods of acquiring news and information than conservatives, who seem very satisfied with the availability of compatible news and views on Fox, talk radio and the internet. But conservatives should avoid complacency. By having a closed-loop of news sources, they are more prone to deception by charlatans peddling conspiracy theories, fake news and extreme views far outside the mainstream. These are likely to be political albatrosses in the future.

In the long run, political parties and movements are best served by truth, accuracy and responsible news reporting. It may be that this needs to be subsidized in some way. The federal government has long done this by giving newspapers and magazines subsidized mailing rates; and radio and television stations were given extremely valuable spectrum for literally nothing. Legal requirements that certain public notices be published in local newspapers is another sort of government subsidy. Given the importance of a well-informed electorate to the functioning of democracy, it is not unreasonable to think that market forces alone may be inadequate to the job.

One idea I have had is to allow foundations and other groups to endow reporting positions at news organizations as has long been common for university professorships. Something like this is already being done at the Boston Globe, where local nonprofits are subsidizing the cost of employing a music critic, with the paper retaining full editorial control over the critic’s work.

~~~ About Bruce Bartlett:

Bruce Bartlett is a longtime observer and commenter on economic and political affairs in Washington, D.C., who has written for The New York Times, The Washington Post, The Wall Street Journal, USA Today, Politico, and many others. A bestselling author, his latest book is The Truth Matters: A Citizen’s Guide to Separating Facts From Lies and Stopping Fake News in Its Tracks.

His prior writings on the Big Picture are here,

@BruceBartlett

The post Bartlett: Traditional Media No Longer Serves Democracy’s Needs appeared first on The Big Picture.

The AI Transition: Even Dinosaurs Weren't Stupid Enough To Create Their Own Extinction Event

Zero Hedge -

The AI Transition: Even Dinosaurs Weren't Stupid Enough To Create Their Own Extinction Event

By Peter Tchir of Academy Securities

A Bridge Too Far? The AI TRANSITioN?

Last weekend we discussed Molotov Cocktails, Volatility, Stability, & Faux Liquidity. In a nutshell, it was about:

  • The transition from one steady state to another steady state can be volatile.
    • A rules-based world, dependent on trade, to a ProSec-based world where each country operates more independently.
    • The transition from a pre-AI world to an AI world.
  • Faux liquidity – or our assessment that market structure is set up to produce bigger moves than the headlines or news warrant.

We got to discuss many of these things on Bloomberg TV on Friday, where Academy was part of the first half hour. While the focus was on AI, I kept arguing that geopolitics and this transition from one stable system to another stable system was also likely playing a major role in this week’s price action. Of all the things I regret saying, or not saying, I flubbed the final question on Walmart’s multiple. It isn’t something I focus on, and my answer was weak. I wish I’d highlighted that Walmart is the sort of company that should do well – big enough to navigate the changing global trade system and well positioned enough to extract the maximum benefit from AI-related efficiencies.

In any case, we certainly have a lot to follow up on based on this past week’s volatility and rapidly evolving narrative.

A Bridge Too Far?

One heck of a movie, and one of the few that comes to mind where the “good guys” lose. They put up an epic struggle, but don’t achieve their goal.

As you know I am Canadian, so you can choose to take this with a grain of salt, but I believe that this week’s “Truth Social” post about the new bridge, almost completed, fits the “bridge too far” narrative.

  • There was a lot of concern about imposing tariffs on countries that had been deemed to be blocking the U.S. “taking” Greenland. Not just from foreign countries, but there also seemed to be some degree of backlash and concern domestically. Not “just” from economists (which were front and center during Liberation Day). Nothing broke, and nothing really changed, but it seemed to set the stage for what happened this week.
  • On Sunday night (or early Monday morning) the President posted some complaints about the new bridge being built. The Gordie Howe Bridge. He is legendary both in Canada and Detroit. As we’ve become used to there was a mix of fact and fiction, and some weirdness (like China going to take away the Stanley Cup – which no Canadian team has won since 1993).
  • He went down the path of ownership. But it quickly came out that Michigan will have ownership, once the bridge costs are paid for (which were heavily skewed towards being paid by Canada). The argument of “ownership” also looked “flimsy” as people discovered that the Ambassador Bridge (the current connecting bridge) is privately owned by an American company (or family). I’ve used that bridge a lot, and it leaves a lot to be desired. One thing that I think of a lot is how great the new Tappan Zee Bridge is (technically the Mario Cuomo Bridge). It is a beautiful bridge and it has changed traffic patterns for the better. I don’t even know how old the bridge is now, but I still feel a sense of awe (and even pride) when driving across that bridge. I’m not sure the Gordie Howe Bridge is anywhere near as impressive as the new Tappan Zee Bridge, but it certainly has to be an improvement (and additive).
  • I’ve left out a myriad of other allegations around this to focus on the pertinent point. Michigan, with the approval (and support) of U.S. Presidents (including President Trump) has engaged in a project that they viewed would help their economy. Out of the blue, that is being challenged?

Now maybe it is pure coincidence, but this week, the House of Representatives voted to stop the tariffs between the U.S. and Canada. There is no way this won’t get stopped with a veto (assuming it gets passed the Senate), but this is the first time during this administration that we saw Republicans go against the President even as they were warned about reprisals such as “being primaried.”

We’ve had some questions about the American Brand. Tourism to the U.S. from abroad is down (not horrific, but down). We have yet to notice a discernible change in consumer tastes abroad, but many of these “bridges too far” have occurred only recently.

While I’m not sure much will come of it, France announced on January 26th that civil servants would have to use Visio by 2027, instead of Zoom.

While we have “goods” trade deficits with many (even most countries), we have “services” surpluses.

We’ve always argued that the total trade balance is most important (goods and services).

  • While I don’t see it tracked anywhere, “profitability” of trade is even more relevant and what little evidence there is points to the fact that from most countries, the U.S. imports low margin products and exports higher margin products (or services as the case may be).
  • That is NOT inconsistent with ProSec which prioritizes domestic (or trade with close allies) for “things” that are vital for national security in a wholistic way (rather than purely military).

We’ve also argued that tariffs put pressure on the system slowly. It is the cumulative effect of tariffs that matter (especially when the rates themselves seemed subject to change at any moment). As we move into the 10th month of higher tariff revenue (around $30 billion per month) the cumulative effect seems to be appearing (lots of reports this week citing amounts eaten by exporters, versus paid by importers, or passed on to customers).

Now maybe it is pure coincidence, but this week, stories circulated about reducing tariffs on steel and aluminum. There were some denials but this makes sense – as it will take the U.S. time to crank up production and it is “confusing” how to apply this, as both steel and aluminum are a part of so many products.

Markets like some degree of certainty. Even if the certainty is somewhat variable. The market has grown to accept the volatility and the “maximalist negotiating leverage” game. 

But have we crossed a bridge, where that game no longer functions like it has for the previous 6 months or so?

U.S. stocks underperformed most other indices last week, especially when converted to dollars.

I think we have seen enough Molotov Cocktails lobbed domestically and internationally (from all sorts of directions and parties) that this volatility extends and resolves itself in lower valuations, especially domestically, as the U.S. has outperformed by so much for so long.

The AI TRANSITioN?

I was trying to find a font that had more of a computer/sci-fi “vibe”. I wanted to use one of The Far Side’s dinosaur cartoons where a couple of dinosaurs are laughing at a mammal while one looks mildly concerned about some snowflakes that are falling (but we probably needed some actual copyright permission to do that – though I urge you to search The Far Side for dinosaurs).

I guess I was thinking about that because Even the Dinosaurs Weren’t Stupid Enough to Create Their Own Extinction Event. They were not smart, and they did become extinct, but they didn’t do it to themselves.

So, we will use this little picture to symbolize what may have happened last week (and I’m pretty sure we don’t need any copyright permission from Grok).

We have been talking about the little I (or i-shaped) economy. Arguing that maybe it is a k-shaped economy rather than a K-shaped economy. We’ve also been talking about the “working poor” in recent pieces (The Fed, Electricity, & Affordability).

You could almost convince me that it is an h-shaped economy, but that might be too negative.

But for now, I think the K in the K-shaped economy just cracked. Let’s look at this “cracking” of the K in two ways.

The first from “margin compression” and even “margin differential” compression:

  • High margin, low physical asset businesses are likely to face margin pressures. I don’t think we are close to the day where AI can create products that remotely compete with the biggest and best software programs – but they could face margin pressures as they head off any potential competition at the pass. The selling may already be overdone, but we could see some margin compression continuing in sectors that don’t have as big of a “moat” as previously thought. Installed base is still a very powerful “moat” and the market may have forgotten that, but margin pressure is likely to be a story that becomes a recurring theme to pressure markets.
  • Low margin business, especially those with large “physical” undertakings (property, plant, and equipment, shipping, logistics, etc.) may benefit and see margin expansion. These are the sorts of business that can see margins expand as they get benefits from efficiencies delivered by AI (I should have done a better job on this on Friday’s TV appearance).
  • So, the high margin sectors that the market owns heavily could see margins shrink, while the low margin businesses that many investors are underweight in could see margins expand. Both the margin expansion and compression come from the same force – rapidly improving AI. This rotation could have some staying power. Call this the margin differential compression trade. It will adjust what are the appropriate multiples for different companies and different industries.

Weirdly, that might be the more benign way to think about this.

  • White collar job losses.
    • The FT published an article where Mustafa Suleyman, the CEO of Microsoft AI, predicted (according to a Grok summary) that most tasks in white-collar professions – such as those performed by lawyers, accountants, project managers, and others working at computers – will be fully automated by AI within the next 12 to 18 months. There seem to be a lot of takes on his words that are even worse than what he said, though what he said doesn’t seem great. Presumably, at least some people on the upward sloping part of the K have white-collar jobs?
      • I did manage to write a T-Report this weekend, rather than giving up, but…
    • If you haven’t seen, or I’m the first person to suggest checking out Something Big Is Happening, I recommend it. It is another, I think I can say, “dire” warning about potential job losses.

We’ve been living in a “no hire, no fire” economy. Anyone who had been proclaiming massive job losses from AI was viewed as a tin foil hat wearing “doomer.”

Most people were explaining that AI would:

  • Enhance what people could do, so those who harnessed it would benefit greatly.
  • The counterpoint to this, recently, has become that since AI is getting so easy to use, don’t even bother, because by the next generation, we won’t need to have a clue on how to use AI, to use it.
  • Create some job losses but create many more jobs. Ironically AI prompter is one of them, but see the above comment.
  • Basically, the argument has been that AI, like many other technological advances, would be a big net benefit to humankind (and not a self-made extinction event).

That narrative, like the K, seems to have cracked in the past few weeks.

  • Will that change how people spend their money? This narrative has appeared rather “suddenly” and has an “alarmist” ring to it. Maybe, like the initial concerns about DeepSeek, it will fall by the wayside.
    • The risk is that, even before job losses occur, people will change their spending behavior out of fear of those job losses.

I’m not in this camp, but the concern that “Someone’s Efficiency is at the cost of Your Job” was almost palpable this week.

Probably overdone, but if the upward sloping leg of the K has been driving the economy and spending, we might want to be very careful (in our investing and spending).

Yet another reason to be cautious on risk as we make it through this “transition.”

The Fed

I remain convinced that:

  • We will have 75 bps of cuts by the end of the September meeting. That there is a far higher chance of one more Powell cut (March or April) than the market is pricing in. The market moved in our direction this week, but plenty of room still to price in what we are positioning for.
  • 10-year yields will be sub 4%. 10s closed at 4.05% on Friday.

This has nothing to do with the rest of today’s report, but I didn’t want anyone to think we’ve stopped pounding the table on these trades. Though in some ways it has a lot to do with everything in today’s report if we’re right about the volatility and its disruptive nature.

Two Last Things
  • The Supreme Court is likely to rule, at least partially, against the U.S. government on the IEEPA tariffs.
    • Countries that have set up trade deals are unlikely to be impacted as the trade deals themselves should overrule the IEEPA tariffs (to the extent there were any). Though there isn’t a lot of evidence that agreements in principle have turned into formal documents.
    • The admin has many other ways to attack tariffs other than under IEEPA, especially for tariffs in the 15% and lower range.
    • It is likely the admin, on any losses, will make it very difficult to collect money paid on tariffs that were deemed illegal. Do you really want to sue the government or do you just view it as a sunk cost?
    • I don’t think the ruling will have much of an impact, though I’m rethinking that, as the reaction might be different if we really did go “a bridge too far” this week.
  • Expect nuclear arms proliferation.
    • Ukraine gave up what nukes it had and it was invaded by Russia (which does have nukes and has muted any military response to their actions).
    • Iran has been attacked before, and the U.S. is positioning forces capable of launching another major attack.
    • North Korea, with a backwards economy, and few friends, is largely left alone (while executing cybercrimes to fund themselves). Would the world tolerate such blatant cyber activity if they didn’t have nukes?
    • France has discussed the possibility of working with other nations about sharing (in some form) either technology or weapons.
    • Nuclear energy will be important to the world for ProSec, and I’d be shocked if nuclear weapons didn’t play an important role in smaller nations figuring out how to ensure their sovereignty. So probably bad for humankind and extinction events, but good for uranium and others in the nuclear fuel business.
Bottom Line

More of the same. We could get some bounces.

  • Some markets are at or near being oversold.
  • We could get pleasant surprises with Iran or Russia.
  • There are likely to be new “pronouncements” from the administration in their efforts to run hot heading into the midterms – and I continue to believe people are not pricing in the Fed as aggressively as they should. I also remain a huge fan of the ProSec™ trade. Not in the least because many of the industries that fit the trade criteria are in the camp of stocks that have been underinvested in and are positioned to do well.

I wasn’t even depressed when I started writing this report. Sorry if this report did nothing to brighten your day, but this is the dark spot my thoughts led me to.

Though I do remain skeptical of the ability for AI to change things so quickly that we are hurt before we can reap the benefits.

There, at least we ended on a positive note, and for those on holiday on Monday, do enjoy! It is difficult to believe it is only the middle of February.

Tyler Durden Sun, 02/15/2026 - 15:10

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