US Credibility At Stake In The Senkakus

Authored by Rob Pierce via RealClearWire,

Could a dispute over eight uninhabited islands in the East China Sea really be the catalyst for the next great war?

On May 3, Japanese Air Self-Defense Force fighter jets scrambled from Okinawa in response to a helicopter that took off from a Chinese Coast Guard vessel in an apparent territorial defense posture. The helicopter wasn’t near a port or any of Japan’s 430 inhabited islands. It was flying near the Senkaku Islands.

Long administered by Japan, and recognized by the U.S. as Japanese territory, the Senkakus have emerged as a flash point in the increasingly confrontational Japan-China relationship and the broader U.S.-China competition.

Far from a quarrel over empty rocks, the Senkaku Islands dispute resides at the volatile intersection of China’s rising nationalism, Japan’s strategic vulnerability, and, critically, America’s alliance credibility.

What’s Really at Stake for China

While control of the islands could marginally strengthen China’s anti-access/area-denial (A2AD) posture and expand its Exclusive Economic Zone, the real driver of China’s policy is rooted in its broader goal of undermining the U.S.-led alliance system in Asia. This effort is a critical step in the Chinese Communist Party’s (CCP) pursuit of a grand strategy bent on achieving regional hegemony and ultimately displacing the United States as the world’s leading superpower.

Despite a long and bitter history between Japan and China, the Senkaku Islands, named the Diaoyu Islands in China, were a peripheral issue until 2012. That year, Japan nationalized three of the Senkaku islands by purchasing them from a private owner in an attempt to prevent their development by a hardline Japanese governor. Instead of diffusing tensions, the move led to anti-Japanese protests across China and elevated the islands to a matter of national pride.

But the protests were not a spontaneous outpouring of long simmering anti-Japanese sentiment triggered by the nationalization of three barren rocks; they were state enabled. In a country where public demonstrations are suppressed, the CCP allowed and encouraged widespread displays of outrage. By letting nationalism flare, Beijing cloaked its ensuing policy shift towards the islands it defines as “inalienable“ parts of its territory as a reaction to public sentiment rather than a calculated assertion of power and a component of their strategic ambitions.

That China’s policy shift towards the islands occurred in 2012 was no coincidence. An increasingly self-assured China perceived the U.S. as weakened, viewing the post-2008 Global Financial Crisis shock to U.S. economic power as a strategic opening. And with rising confidence in their military and economic power, the CCP, under the new leadership of Xi Jinping, began shedding its decades long “hide and bide“ strategy in favor of a more aggressive foreign policy with a mandate to “actively accomplish something.”

For China, the Senkaku dispute is less about the intrinsic value of eight uninhabited rocks than about the future of the regional order. China knows that if it can erode Japan’s ability to control the islands without triggering a U.S. response, America’s security guarantees would appear flimsy and negotiable. Beijing’s ultimate Senkaku Islands objective, then, is to expose the vulnerabilities of the U.S.-Japan alliance and thus weaken a cornerstone of American power in Asia. For China to achieve national rejuvenation, it must erode the system of U.S. alliances that stands in its way.

How China Applies Pressure: A Campaign of Attrition

Since 2012, China has transformed the Senkaku Islands dispute from a dormant issue into a calibrated campaign of coercion. China’s incremental pressure strategy aims at weakening Japan’s control and eroding confidence in the U.S.-Japan alliance.

At sea, China relies on constant presence operations. In 2023, Chinese government vessels entered the contiguous zone around the Senkaku Islands on 352 out of 365 days—the highest number since record-keeping began in 2008, according to data from the Japan Coast Guard. Additionally, Chinese Maritime Militia boats often harass Japanese fishermen and shadow Japan Coast Guard patrols.

The PLA Navy (PLAN) has also ramped up its footprint. China’s destroyers, cruisers, and surveillance ships conduct regular patrols near the islands, mapping the battlespace and normalizing their presence. Now the world’s largest navy, PLAN operations are becoming more frequent and more complex.

In the air, Beijing declared an Air Defense Identification Zone (ADIZ) over the East China Sea in 2013, encompassing the Senkakus. While ignored by the U.S. and Japan, the ADIZ signaled China’s intent to claim the airspace as its own. The PLA Air Force (PLAAF) now regularly flies J-11 fighters, H-6K bombers, and UAVs near the islands, prompting Japan to scramble jets hundreds of times per year.

The sea and air pressure campaign has three key effects:

1. Military fatigue: Japan is forced to respond to every air and maritime provocation, stretching the bandwidth of its already outnumbered forces.

2. Nationalist leverage: The CCP frames each action as a defense of historical sovereignty, reinforcing domestic legitimacy while pursuing foreign policy goals.

3. Alliance erosion: Each incursion probes the edge of U.S. deterrence. If China can undermine Japan’s control without triggering a U.S. response, Beijing wins not through war but through doubt.

This totality of this pressure campaign amounts to strategic salami-slicing, with each slice small enough to avoid escalation, yet collectively difficult for Japan to manage. The Senkakus may be barren, but their symbolic and strategic value makes them a key arena in the broader contest for regional order.

What It Means for America

The U.S. recognizes Japan’s administrative control over the Senkaku Islands and affirms that they fall under Article 5 of the U.S.-Japan Mutual Security Treaty. Effectively, if China seizes the islands by force, the U.S. is treaty-bound to respond.

While Article 5 doesn’t guarantee automatic military retaliation, decades of bipartisan statements by American presidents, defense secretaries, and INDOPACOM commanders have made it clear that Washington intends for Beijing to believe it would act. That perception of credibility, not to mention the 60,000 U.S. troops stationed in Japan, is foundational to U.S. deterrence.

But as we’ve seen, China’s pressure campaign is calibrated to chip away at that foundation without crossing the threshold of war. Each patrol, each air incursion, each renaming of a feature is designed to make Japan look feeble and the U.S. look hesitant. If China can erode Japan’s effective control without firing a shot, and the U.S. does nothing, the message to America’s other allies is that security guarantees are conditional. That is a message that would echo far beyond the East China Sea, and one the United States can ill afford to come to fruition.

The Philippines could reconsider U.S. backing at Second Thomas Shoal. Taiwan’s belief in American resolve would be shaken. Australia and South Korea might rethink America’s security guarantees. The U.S.-led regional order could collapse not through devastating conflict, but through gradual erosion. Moreover, a loss of confidence could spur an arms race. Japan’s new defense strategy hinges on closer U.S. coordination, but a failure to defend the Senkakus could shift Tokyo toward military self-reliance, even revisiting nuclear options long considered taboo.

To prevent China from rewriting the rules of the Indo-Pacific without direct confrontation, the U.S. must maintain the material capacity and political will necessary to deter China from pushing too far. That means continued assurances, both public and private, that the U.S. views the Senkakus as covered under treaty obligations. It also means supporting militarily, through presence patrols or training operations, the Japanese military’s efforts to maintain control over the islands and its territorial waters.

In short, the stakes are high. Not because of what the Senkakus are, but because they represent the credibility of America’s alliance system, the future of deterrence in the Indo-Pacific, and the contest between rules and revisionism.

Conclusion

In a 2021 wargame conducted by the Center for a New American Security, the scenario began with a sudden PLA occupation of the Senkakus. Chinese troops landed on the islands, enforced a 50-mile exclusion zone with a ring of ships, submarines, aircraft, and drones, and dared a response. What followed was described as a “slaughter in the East China Sea,” with U.S. and Japanese forces drawn into a high-intensity war neither side initially wanted.

Would China really risk war with the U.S. and such a slaughter over the Senkakus? U.S. planners must assume the answer is yes. The benefit to both China’s domestic politics of quenching the aspirations of its nationalist base and to its broader strategic aims of diminishing U.S. regional influence are evident in the lengths to which China is going to upend the status quo.

A flash point in the global strategic competition between China and the United States, the Senkaku Islands dispute combines a uniquely toxic brew of intense elite and public emotions with high numbers of armed and capable surface and aerial combatants. While China will likely seek to avoid kinetic conflict over the islands, China’s territorial ambitions in the ECS are unlikely to wane, and its actions might very well force America’s hands.

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Tyler Durden Sat, 09/06/2025 - 21:00

Professor 'Kidnapped' By ICE Indicted For Assaulting Federal Officers

Via The College Fix,

The California State University professor whom the California Faculty Association claimed was “kidnapped” by Immigration and Customs Enforcement has officially been indicted by a grand jury for assaulting federal officers.

In July, the CFA had alleged ICE tossed CSU Channel Islands professor Jonathan Caravello into an unmarked vehicle “without identifying themselves” or giving a reason for the arrest.

The night before the incident, Caravello had told the City of Camarillo Council that he was “patrolling the city streets following armed masked thugs trying to kidnap my [undocumented] neighbors.”

Caravello, who teaches math and philosophy and researches epistemology, rationality, and “transcendental arguments,” became involved with a protest against an ICE raid of the Glass House Farms marijuana facility.

Despite complaints by the CFA and the university that Caravello was “peacefully” demonstrating, U.S. Attorney Bill Essayli said the professor was arrested for throwing a tear gas canister at officers.

According to Fox News, after agents deployed tear gas to disperse a crowd that had begun throwing rocks at their vehicles, Caravello “ran up to one of the canisters and tried to kick it.”

He missed, however, and then ran after it and hurled it at the agents.

During his arrest, prosecutors said Caravello “continuously kicked his legs and refused to give agents his arms.”

This past Wednesday, Caravello officially was indicted under 18 USC 111, (allegedly) “assaulting, resisting, or impeding certain officers or employees.” He was released on $15,000 bond and faces up to 20 years in prison.

In a statement, CSU Channel Islands said:

“We are aware of the recent indictment involving Jonathan Caravello. As this matter is currently before the courts, we will not be commenting on the details of the case. We respect the legal process and believe it is important to allow it to proceed without speculation. Our focus remains on our ongoing work and commitments to our students.”

It added that Caravello “is still employed and currently teaching at our campus.”

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Tyler Durden Sat, 09/06/2025 - 19:50

Trump Shortlists Hassett, Warsh, And Waller As Top Picks For Fed Chair

Authored by Aldgra Fredly via The Epoch Times,

President Donald Trump confirmed on Sept. 5 his top three candidates to succeed Federal Reserve Chair Jerome Powell when his term ends in May next year.

Speaking to reporters, Trump said he is considering former Fed board member Kevin Warsh, current Fed board member Christopher Waller, and National Economic Council Director Kevin Hassett for the role.

“You could say those are the top three,” the president told reporters in the Oval Office.

Trump added that he had initially considered Treasury Secretary Scott Bessent as a fourth finalist, but Bessent said he preferred to remain in his current role.

“I had him as a fourth,” he said of Bessent. “He told me ‘I’m not leaving.’”

Bessent, who is overseeing the search for Powell’s successor, said at the press conference that he was not interested in the job.

Trump has signaled he wants to appoint someone who is more inclined to lower interest rates, a point on which he has clashed with Powell.

The Trump administration has been at loggerheads with the Fed over interest rate cuts. Trump wanted the Fed to lower interest rates to bring down borrowing costs and spur growth, but the central bank has kept its benchmark policy rate unchanged at 4.25 to 4.50 percent for five consecutive meetings.

Powell has argued that the Fed should wait for more clarity on the economy’s trend before moving to cut rates, citing the impact of the administration’s policy changes.

Bessent, on Aug. 12, urged the central bank to slash interest rates by half a percentage point at its September policy meeting of the Federal Open Market Committee (FOMC), and follow up with a series of reductions to bring borrowing costs down by at least 150 basis points.

The push for lower rates comes as inflation appears substantially contained.

The headline Consumer Price Index rose 2.7 percent in July, in line with expectations, while core inflation ticked up to 3.1 percent.

Waller has supported lowering interest rates. The Fed governor said in April that he would favor cutting rates “sooner, and to a greater extent than I had previously thought.”

“With a rapidly slowing economy, even if inflation is running well above 2 percent, I expect the risk of recession would outweigh the risk of escalating inflation, especially if the effects of tariffs in raising inflation are expected to be short lived,” Waller said in his speech.

Hassett had agreed with Trump that the Fed has kept rates inappropriately high, while Warsh had previously called for a “regime change in the conduct of policy” at the central bank.

Tyler Durden Sat, 09/06/2025 - 18:40

High Rollers & Algorithms: Meet The Dudes Cashing In On AI Gambling Bots

Long before Las Vegas emerged from the Nevada desert, gambling has ranked among America's most enduring pastimes - and in the age of artificial intelligence, it stands poised for a technological transformation. A new crop of tech entrepreneurs is racing to develop the world's first AI-powered gambling agents designed to help sports bettors generate substantial returns.

Take Szeder, founder of MonsterBet, is at the forefront with MonsterGPT, launched in early 2025. The tool uses web scrapers and retrieval-augmented generation (RAG) to analyze real-time data and select bets on professional sports. “Some users, myself included, are hitting winners 56% to 60% of the time,” Szeder, a computer science graduate, told WIRED. Access runs $77 a month.

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Massachusetts-based Rithmm offers its “AI-powered sports intelligence” for $30 monthly, while JuiceReel provides a free basic app, according to WIRED. Beyond traditional sports, Tom Fleetham, formerly of blockchain firm Zilliqa, built an AI named Ava for horse race predictions. “Her analysis was sharp,” he told the magazine, though placing bets was a hurdle.

The sports betting industry has skyrocketed since the Supreme Court overturned the federal betting ban in 2018, with mobile platforms like DraftKings and FanDuel fueling a multibillion-dollar market. Analysts project revenues could hit $14 billion by 2028. In 2023, ESPN partnered with PENN Entertainment to launch ESPN BET in 16 states. The $1.5 billion, 10-year deal, plus $500 million in stock warrants, included a mobile app, website, and retail locations, integrating odds across ESPN’s platforms.

Yet, the industry’s growth comes with warnings. Critics argue that AI-driven algorithms and aggressive marketing could exacerbate addiction and financial strain, pressing regulators and operators to prioritize social responsibility. States such as New York (which never met an industry they didn’t want to regulate), introduced rules last year aimed at shielding residents from potential risks associated with online gambling.

Under existing regulations, all gambling and sports betting advertisements were required to display problem gambling warnings and provide hotline numbers for individuals experiencing gambling addiction. The new law expands these requirements, according to the Times Union, specifying that mobile sports betting platforms must comply with the same regulatory standards governing other gambling establishments and venues.

"I want New Yorkers to be able to safely enjoy the activities they love while proceeding with caution when necessary,” New York Kathy Hochul said at the time. "New Yorkers will have easier access to the safety resources they need to better protect themselves from the grips of addiction."

Tyler Durden Sat, 09/06/2025 - 18:05

More Than 1,900 Arrests Made In DC Since Federal Takeover Of Policing

Authored by Savannah Hulsey Pointer via The Epoch Times,

The Washington D.C. Metropolitan Police Department and federal partners have conducted more than 1,900 arrests since President Donald Trump federalized policing in the nation’s capital. 

FBI Director Kash Patel announced on Sept. 5 that, in addition to the total arrests, in just the days of Sept. 4–5, there were 26 arrests involving FBI personnel, five gun recoveries, and four drug seizures.

Trump federalized the D.C. Metropolitan Police Department on Aug. 11, ordering about 800 National Guard troops to assist with law enforcement.

“I’m announcing a historic action to rescue our nation’s capital from crime, bloodshed, bedlam, and squalor, and worse,“ Trump said at a White House press briefing at the time.

“This is Liberation Day in D.C., and we’re going to take our capital back.”

Attorney General Pam Bondi also lauded the federal cooperation by law enforcement, saying Department of Justice (DOJ) statistics show 73 total arrests for Sept. 4  alone. Bondi also said that since the federalization of policing in Washington, there have been 200 illegal guns taken off the streets. 

The same day, Patel also confirmed, in a post on X, the arrests of two suspects believed to have been involved in the murder of Capitol Hill intern Eric Tarpinian-Jachym.

Tarpinian-Jachym, 21, an intern for Rep. Ron Estes (R-Kan.) and a University of Massachusetts student, was shot and killed on June 30. At the time, police believed he was an innocent bystander in the shooting, which injured two others.

Bondi said in a Sept. 5 post on X that if convicted, the two suspects will face “severe justice,” and that she hopes it provides “some measure of solace to his family.”

Patel thanked members of the Metropolitan Police Department and said, “We are delivering on President Trump’s promise to make DC safe again.”

The National Guard presence in Washington has surged to nearly 2,300 troops, and the Pentagon mobilized another 1,700 National Guard members across 19 states to bolster federal immigration enforcement.

A Joint Task Force–D.C spokesperson told The Epoch Times in an emailed statement on Aug. 24 that troops had arrived in Washington from West Virginia, South Carolina, Ohio, Mississippi, Louisiana, and Tennessee for a total of 2,270 National Guard members.

Trump has voiced an interest in sending National Guard troops to other major cities, including New York and Chicago, to enforce a similar crackdown on crime in major metropolitan areas. 

Meanwhile, U.S. Attorney Jeanine Pirro announced the largest seizure of fentanyl and meth precursors in U.S. history, at a Sept. 3 news conference in Houston.

Pirro spoke to reporters while standing in front of 1,300 barrels of chemicals, and asked those in attendance to “imagine bodies where those barrels are,” saying the work of law enforcement would save lives by keeping drugs such as fentanyl off the streets.

Pirro said it would take 24 18-wheelers to transport the seized chemicals to a storage facility.

Tyler Durden Sat, 09/06/2025 - 17:30

"Summer COVID Wave" Prompts Panic In California; Masks Recommended

At least one official in California has recommended that residents wear masks indoors due to an increase in COVID-19 in recent days.

Wastewater data released by the Centers for Disease Control and Prevention on Thursday show that California is seeing “very high” levels of the virus, while all states on the West Coast are either at “high” or “very high” levels.

As Jack Phillips reports for The Epoch Times, the top health official for Yolo County, located outside Sacramento, said in a statement last week that residents are advised to wear masks indoors. No mandate was issued.

“California is experiencing a summer COVID wave,” Aimee Sisson, the Yolo County health officer, said in the statement.

“Based on current wastewater levels of the virus that causes COVID-19, I recommend that everybody in West Sacramento wear a mask when they are around others in indoor public spaces.”

“I also recommend that people in the rest of Yolo County wear masks when they are around others indoors if they are 65 or older, have a weakened immune system, have an underlying medical condition that puts them at a greater risk of severe COVID-19, or spend time around people who fall into these categories.”

Sisson’s office also said in a news release issued by the county that “wearing a high-quality mask such as an N95, KN95, or KF94 that fits well continues to provide strong protection” before touting vaccines for the virus.

The San Francisco Department of Public Health told the Los Angeles Times, in an article published Sept. 3 that suggests multiple California officials have recommended masking, that it is also recommending people “consider wearing a well-fitted mask in crowded indoor spaces, including when traveling, and to stay at home if they feel sick.”

Multiple requests from The Epoch Times to the city health department have not been returned as of Friday.

In Canada, New Brunswick’s Horizon Health Network told The Epoch Times this week that it would mandate masks for certain clinical areas due to a rise in respiratory illnesses such as COVID-19. Several weeks ago, the government of Honduras announced it had reinstated a nationwide mask mandate in health care settings due to a rise in respiratory viruses.

Last year, multiple California counties implemented mandatory mask requirements in health care settings that lasted from November 2024 until the spring of this year, including counties in the San Francisco Bay Area. Some of the countywide mandates were meant only for employees, while one county required all visitors and patients to wear a mask.

An Epoch Times review suggests that no counties in the United States have recently issued mask mandates or are planning to issue mask mandates for the coming fall or winter months.

The Epoch Times contacted the California Department of Public Health for comment.

An update on the agency’s website posted in late June recommends that certain people wear masks or an N95 respirator variant, particularly if they suspect they were exposed to an infection or “are at a high-risk of becoming severely ill.”

It comes as California, Oregon, Washington state, and Hawaii formed a “West Coast Health Alliance” in response to decisions made by U.S. Secretary of Health Robert F. Kennedy Jr., including his shakeup of the CDC’s advisory panel.

Tyler Durden Sat, 09/06/2025 - 16:55

Eyebrow-Raising Details Emerge From FBI Raid On John Bolton's Home

Federal Bureau of Investigation agents seized three computers, two iPhones, and multiple documents from the Bethesda, Maryland, home of former Trump national security advisor John Bolton on August 22, according to a report released Friday. The raid is part of an ongoing investigation into whether the infamous war hawk mishandled classified documents, including allegations he emailed sensitive files to family members via a private server.

The New York Post reported new details about the raid:

In addition to the high-tech hardware, agents confiscated two USB drives, a hard drive, four boxes of “printed daily activities,” “typed documents in folders labeled ‘Trump I – IV'” and a white binder labeled “statements and reflections to allied strikes,” according to an inventory made public Thursday.

The warrant also revealed that Bolton is being looked at for allegedly violating two sections of the Espionage Act of 1917 forbidding unauthorized possession or removal of national defense information, and another law preventing hoarding of classified files.

The investigation, which intensified under the Biden administration, also centers on personal emails allegedly obtained by a foreign government’s spy agency, according to people familiar with the matter cited by the New York Times. The emails reportedly contained classified information Bolton sent to close associates while gathering material for his 2020 memoir, “The Room Where It Happened.” The FBI’s search of Bolton’s home aimed to determine if he possessed materials that could verify the authenticity of the compromised emails.

During the Trump administration, the Justice Department initiated a criminal probe into whether Bolton mishandled classified material in his book. The administration also sued to delay the memoir’s publication. Although the book was released, a federal judge, Royce Lamberth, concluded that “Defendant Bolton likely jeopardized national security by disclosing classified information in violation of his nondisclosure agreement obligations.” However, Judge Lamberth declined to block distribution, noting, “the horse is already out of the barn,” as excerpts had been published and 200,000 copies had shipped.

The Times sources indicated that the information allegedly obtained by the foreign spy agency was not included in Bolton’s book. The investigation into Bolton reportedly stalled under Biden for reasons that remain unclear.

An FBI agent, speaking to the Post, criticized the pause, telling the newspaper, “The [Biden administration] had probable cause to know that he had taken material that was detrimental to the national security of the United States, and they made no effort to retrieve it.”

The agent added, “That was a friendly administration to [Bolton]. They kept bashing [Trump] the entire time for ‘weaponizing law enforcement,’ and they - by politically stopping a righteous investigation - are the ones who weaponized law enforcement.”

Bolton, who has not been charged or arrested, denies any wrongdoing. If convicted on all potential charges, he could face up to 25 years in prison.

Tyler Durden Sat, 09/06/2025 - 14:35

At the Calculated Risk Real Estate Newsletter this week:

Click on graph for larger image.

• Q2 Update: Delinquencies, Foreclosures and REO

• Freddie Mac House Price Index Declined in July; Up 1.4% Year-over-Year

• What will happen with House Prices?

• Asking Rents Mostly Unchanged Year-over-year

This is usually published 4 to 6 times a week and provides more in-depth analysis of the housing market.

Judge Orders Trump Admin To Release Billions In Frozen Foreign Aid Funding

Authored by Jackson Richman via The Epoch Times (emphasis ours),

A federal judge ruled that the Trump administration cannot withhold billions of dollars in foreign assistance approved by Congress, including aid that the White House recently said it would not spend.

President Donald Trump holds a Cabinet meeting with members of his administration in the Cabinet Room of the White House on Aug. 26, 2025. Chip Somodevilla/Getty Images

The Trump administration must release $11.5 billion in foreign aid that is set to expire at the end of the month, said U.S. District Judge Amir Ali in a Sept. 3 decision.

“There is not a plausible interpretation of the statutes that would justify the billions of dollars they plan to withhold,” Ali wrote in his ruling.

“To be clear, no one disputes that Defendants have significant discretion in how to spend the funds at issue, and the Court is not directing Defendants to make payments to any particular recipients. But Defendants do not have any discretion as to whether to spend the funds.”

The Trump administration last week requested that Congress rescind $4.9 billion in foreign aid. The $11.5 billion figure includes the $4.9 billion.

In accordance with the Impoundment Control Act, a rescission is when the White House requests Congress to reverse government funding that has been appropriated by Congress. Typically, it must be approved within 45 days of the request being sent to Congress, or else the money must be spent.

Given that this request was made within 45 days of the end of the fiscal year on Sept. 30, the cancellation could take effect without Congress approving it. This maneuver is known as a pocket rescission.

Ali wrote that the funding is to be spent since Congress appropriated it.

“It is undisputed the relevant appropriations acts have been valid law from the time they were enacted to today. For almost all that period, Defendants did not even dispute that the laws were mandatory and required them to spend the funds,” he wrote. “The President never asked Congress to rescind the funds at issue even though he successfully sought rescission of analogous funds in May 2025.”

The Trump administration filed a notice of appeal on Sept. 4.

“President Trump has the executive authority to ensure that all foreign aid is accountable to taxpayers and aligns with the America First priorities people voted for,” White House spokesperson Anna Kelly said in a statement.

Republicans and Democrats have criticized the pocket rescission.

“With the Trump Administration’s attempt of the so-called ’pocket rescission,' it is clear that Republicans are prioritizing chaos over governing, partisanship over partnership, and their own power over the American people,” Senate Minority Leader Chuck Schumer (D-N.Y.) said in a Sept. 2 letter.

“Republicans should not accept Russ Vought’s brazen attempt to usurp their own power,” Senate Appropriations Committee Vice Chair Patty Murray (D-Wash.) said in an Aug. 29 statement, referring to the director of the Office of Management and Budget.

“No president has a line item veto—and certainly not a retroactive line item veto.”

Sen. Lisa Murkowski (R-Alaska) called the pocket rescission “unlawful.”

“Congress alone bears the constitutional responsibility for funding our government, and any effort to claw back resources outside of the appropriations process undermines that responsibility,” she wrote on X.

The Associated Press contributed to this report. 

Tyler Durden Sat, 09/06/2025 - 14:00

Fake Students Plague California Community Colleges, Displacing Real Enrollees

Authored by Kimberley Hayek via The Epoch Times,

California’s community colleges are grappling with a surge in fraudulent enrollments, with 1.2 million fake applicants last year accounting for nearly 30 percent of new students, blocking real students from classes and costing millions in stolen financial aid, according to college officials.

The problem, exacerbated by the shift to online learning during the COVID-19 pandemic, affects at least 90 of the state’s 116 campuses, said Marvin Martinez, chancellor of the Rancho Santiago Community College District, and Jeannie Kim, president of Santiago Canyon College.

Before the pandemic, most classes were in-person, making fraud more difficult, Martinez said. But with 80 percent of courses moving online, bots and fake students can enroll from anywhere, including other states or countries.

“It’s happened on a massive scale,” Martinez told Epoch TV’s California Insider host Siyamak Khorrami.

“What’s made this situation of fraudulent enrollment so different than anything that I’ve seen before in my 36 years in higher ed is that it’s happened in almost 80 percent now of the campuses.”

At Santiago Canyon College, fall 2024 enrollment initially spiked 10 percent to 13 percent, Kim said, but faculty discovered many registrants were fraudulent. In one anthropology course, administrators raised the enrollment cap by 30 daily, only for bots to fill slots instantly, leaving just 12 to 15 genuine students. 

Faculty identified fakes through non-engagement, identical assignments, or invalid contact details, like phone numbers tied to businesses or defunct entities. Removing fraudulent enrollments cut the college’s headcount by 10,000 to 12,000 spots, with some bad actors enrolled in up to five classes each.

The fallout is severe. Real students are denied access to required courses, delaying graduations, certificates, and transfers to four-year universities.

“Counselors saw the crestfallen faces of students unable to get classes they needed to graduate,” Kim said.

Among faculty, morale has gone down as classes shrink to single digits, making them cost-inefficient yet necessary for student progress. “Faculty teach because they love their discipline, but it’s devastating to see classes dwindle,” Kim added. 

Low-enrollment classes were allowed to run, doubling budgetary strain to prioritize student needs. Financially, colleges face significant losses. California funds community colleges based on enrollment, but removing fake students can cut revenue by up to 23 percent, Martinez said.

 “You can’t get paid for fake enrollments,” he noted.

“It’s better to make that cut upfront than face audits later.”

In 2024, scammers stole $8.4 million in federal aid and $2.7 million in state aid, with losses since 2021 exceeding $18 million, state reports show. 

The colleges reported 20 to 25 identity theft cases, requiring notifications to victims and reports to the U.S. Department of Education.

Fraud motivations include exploiting Pell Grants, with “Pell runners” collecting up to $7,400 before vanishing, and harvesting personal data such as Social Security numbers for identity theft, Martinez said. 

Perpetrators, often international, use AI tools such as ChatGPT to mimic students, targeting no-prerequisite courses such as accounting or business. 

To combat the issue, colleges are deploying LightLeap.AI, an artificial intelligence platform from N2N Services, initially developed for course predictions but adapted for fraud detection.

Santiago Canyon adopted it for under $100,000 after Kim discovered it at a conference, and it is now scaled to 80 campuses statewide at about $75,000 per institution.

Processing nearly 3 million applications and flagging 360,000 suspected fraudsters, LightLeap.AI uses machine learning to analyze shared phone numbers, IP addresses, minimal application data, and suspicious course-taking patterns, achieving a 99 percent accuracy rate at Santiago Canyon. 

“One art faculty member was ecstatic, saying, ‘I have a clean roster. They’re all real,’” Kim recalled.

LightLeap.AI’s triangulation method cross-references application data with student information systems and proprietary blacklist/whitelist databases, identifying patterns such as multiple applications from one IP address. 

Operating in three stages—application, registration, and financial aid—it catches twice as many scammers as manual methods, freeing 7,500 seats for real students at Santiago Canyon. Its network effect allows fraud detection at one college to flag bad actors across 83 campuses, with a 92.3 percent effectiveness rate at West Valley-Mission. The system adapts to evolving tactics by incorporating geolocation data and reducing false positives through continuous learning. Since its intersession rollout, it has been applied across spring, summer, and fall terms, with updates to counter fraudsters’ use of generative AI.

Implementing LightLeap.AI presents challenges.

“We need tech-savvy staff, but community colleges can’t compete with tech industry salaries,” Martinez said. Budgets, unchanged in 20 years, hinder hiring, and manual verification tools like ID.me are voluntary and inadequate. 

A proposed $10 application fee, discussed in 2025, aims to deter fraud but risks burdening vulnerable students such as the homeless or undocumented, who struggle with ID verification. 

Online education is essential for working adults, who now outnumber recent high school graduates enrolled at community colleges.

 “Adult students—parents with jobs and bills—rely on online classes,” Martinez said. To support this shift, he urged Sacramento to increase funding for technology and staffing. “If it doesn’t happen, we’re going to keep losing money,” he warned. A 2025 state audit is evaluating fraud trends and mitigation effectiveness to guide future funding.

“We’re easy prey because bureaucracies react slowly,” Martinez said.

Kim emphasized ethical duty: “We’re public servants with a moral obligation to protect taxpayer dollars.” 

California community colleges serve about 1.8 million students annually, offering low-cost pathways to degrees and jobs. 

Tyler Durden Sat, 09/06/2025 - 11:40

These Are The US States That Added The Most Billionaires Over The Last Decade

The billionaire map of America looks very different today than it did a decade ago.

New faces and shifting fortunes have reshaped where the country’s wealthiest residents call home, and some states have vaulted ahead in the billionaire rankings as Visual Capitalist's Pallavi Rao shows in the infographic below.

The data for this map comes from two related Forbes sources.

Their 2016 billionaire breakdown (which used net worth figures as of November, 2015), and their Real-Time Billionaires List, accessed July, 2025.

Using both datasets, we mapped the net change in U.S. billionaires by state. Due to data limitations, this map does not count U.S. billionaires in Washington D.C. and overseas territories.

The South is Gaining Billionaires, Fast

While California leads by overall billionaire gains (+75), two southern states are in the top five.

Rank State Code 2015 Billionaires 2025 Billionaires Change in Billionaires 1 California CA 124 199 75 2 Florida FL 44 117 73 3 New York NY 93 136 43 4 Texas TX 48 83 35 5 Illinois IL 17 30 13 6 Massachusetts MA 10 23 13 7 Pennsylvania PA 10 23 13 8 Georgia GA 9 21 12 9 Nevada NV 8 19 11 10 North Carolina NC 3 10 7 11 Arizona AZ 9 15 6 12 Utah UT 1 7 6 13 Virginia VA 5 11 6 14 Connecticut CT 12 17 5 15 Ohio OH 6 10 4 16 Washington WA 13 17 4 17 Colorado CO 10 13 3 18 Louisiana LA 1 4 3 19 South Carolina SC 1 4 3 20 Hawaii HI 1 3 2 21 Maryland MD 8 10 2 22 Mississippi MS 0 2 2 23 Missouri MO 6 8 2 24 Montana MT 4 6 2 25 Nebraska NE 2 4 2 26 Tennessee TN 10 12 2 27 Alabama AL 0 1 1 28 Arkansas AR 5 6 1 29 Kansas KS 2 3 1 30 New Hampshire NH 1 2 1 31 New Mexico NM 0 1 1 32 North Dakota ND 0 1 1 33 Oregon OR 2 3 1 34 Vermont VT 0 1 1 35 Maine ME 1 1 0 36 New Jersey NJ 8 7 -1 37 Oklahoma OK 5 4 -1 38 West Virginia WV 1 0 -1 39 Idaho ID 3 1 -2 40 Indiana IN 4 2 -2 41 Michigan MI 11 9 -2 42 Wisconsin WI 9 7 -2 43 Wyoming WY 9 7 -2 N/A Iowa IA 1 1 No change N/A Kentucky KY 1 1 No change N/A Minnesota MN 5 5 No change N/A Rhode Island RI 1 1 No change N/A South Dakota SD 1 1 No change N/A Alaska AK 0 0 No billionaires N/A Delaware DE 0 0 No billionaires N/A U.S. US 540 869 329

In fact, second-ranked Florida added 73 billionaires—more than doubling its roster to 117—thanks to the influx of hedge-fund titans, tech founders, and pandemic-era corporate relocations.

Texas gained 35, cementing its draw as America’s energy capital and a swelling tech hub around Austin and Dallas.

With no state income tax and a cost of living well below coastal peers, both states have become magnets for high-net-worth individuals fleeing higher-tax jurisdictions.

Tech Hubs Keep Their Billionaire Edge, But is Growth Cooling?

California remains the undisputed leader with 199 billionaires in 2025—up 75 from 2015—anchored by Silicon Valley fortunes from companies such as Apple, Google, and OpenAI.

Yet the Golden State’s growth rate lags that of Florida and Texas, hinting at headwinds from rising costs and remote-friendly work patterns.

New York added 43 new billionaires, driven largely by finance and media exits, but also saw some flight to lower-tax locales.

Even with slowing momentum, these coastal giants still host 39% of all U.S. billionaires.

Unexpected Wealth Hotspots in the Mountain West and Midwest

Beyond the big four, several smaller states quietly punched above their weight.

Nevada added 11 billionaires, boosted by Las Vegas real-estate windfalls and a growing tech presence around Reno.

Utah’s count jumped six-fold on the back of booming software IPOs along the “Silicon Slopes.”

Illinois and Massachusetts each gained 13 billionaires, underscoring the enduring wealth-creation power of Chicago’s trading dynasties and Boston’s life-science clusters.

Conversely, traditional manufacturing states such as Michigan and Wisconsin slipped, each losing two members of the three-comma club.

If you enjoyed today’s post, check out The Richest Billionaire in Every Country (That Has One) on Voronoi, the new app from Visual Capitalist.

Tyler Durden Sat, 09/06/2025 - 11:05

Victor Hanson: The Greatest Democrat Fear?

Authored by Victor Davis Hanson,

President Donald Trump’s greatest achievement within six months was simply ending illegal immigration as we had once known it — without “comprehensive immigration reform” or any other rhetorical trickery.

It remains difficult to find, much less deport, the 10 to 12 million illegal aliens who entered in the last four years.

Those who helped break the law, by design or indifference, now believe it was moral to destroy federal immigration law but immoral to uphold it.

And it is still unclear whether former President Joe Biden’s handlers deliberately sabotaged their own border for political and demographic purposes out of sheer orneriness or utter incompetence.

Many of the left’s cherished totems — massive Green New Deal subsidies, the diversity/equity/inclusion industry, biological males competing in women’s sports, and the USAID revolving door — are either comatose or in their death throes.

The historic drop-off in military recruitment reversed shortly after Trump took office.

Republican voter registration is up, and Democratic registration is down.

Abroad, Trump finds remarkable successes.

For now, there are pauses in the fighting between India and Pakistan, Egypt and Somalia, Cambodia and Thailand, Rwanda and Congo, Serbia and Kosovo, and Armenia and Azerbaijan.

Much credit is due to Trump for brokering ceasefires.

Iran will not get a bomb in the next four years — as seemed likely when Biden left office.

The Middle East’s current most grotesque terrorist cadres and states — Iran, Hezbollah, Hamas, and the Houthis — are far weaker than they were when Trump entered office in January.

There is at least some engagement in envisioning the outlines of a ceasefire in Trump’s inherited Ukraine War.

The rub is finding the degree of ordnance necessary to convince Putin that increasing Russia’s casualties to more than one million will endanger his own dictatorship sooner than destroy Ukraine.

Breaking up the new three-billion-person China/India/Russia nexus hinges on ending the war.

The economy is still strong. Gas prices are at historic lows. Increases in all types of energy production proceed full bore.

Current GDP, inflation, unemployment, and the stock market — all at one time or another said to be in a crisis state — remain strong. Talk of an impending recession or hyperinflation is mostly muted.

No one quite knows either the full effects of Trump’s tariffs — especially given the injunctions issued by left-wing district justices — or of the promised over $10 trillion in foreign investments.

Much of Trump’s agenda will hinge on whether interest rates are lowered, Republicans survive the midterms, and the degree to which unelected left-wing lower-court justices can be stopped from hijacking the Constitution and de facto running the country.

As for the Democratic opposition, there is no counter agenda, no shadow government responsible leadership, and no willingness to craft bipartisan legislation.

Instead, the left’s strategy is that of the kamikaze: to destroy Trump at the cost of destroying the Democratic Party.

Otherwise, Democrats seek to prove so obnoxious in demonizing Trump that they create such mass hysteria that the weary electorate figuratively lies down, closes its eyes, covers its ears, and screams nonstop, “Make them all go away!”

Former foul-mouthed vice presidential candidate Tim Walz is now reduced to a ghoulish status. He recently boasted to an audience that rumors of Trump’s death — who survived two assassination attempts last summer — will thankfully one day prove true. 

The top of the failed ticket, Kamala Harris, wanders aimlessly without an office, constituency, audience, or ideas.

To remain viable, she knows she must continue touring and speaking.

But Harris accepts that the more anyone hears her word salads, the more they will remember her 2024 train wreck.

Head of the Democratic Party, Ken Martin, now screams that Trump is a fascist.

But by what standards does he judge? Did Trump try to take his rivals off state ballots?

Does he advocate for destroying the filibuster, the Electoral College, and the 156-year-old nine-justice Supreme Court, or packing the Senate by admitting two new states?

Are local, state, and federal prosecutors — a la Bragg, James, Smith, and Willis — coordinating with the White House and DOJ to indict Trump’s current chief adversaries, such as Gavin Newsom, Kamala Harris, or Josh Shapiro?

Did Trumpers hire a foreign spy to concoct a fake hit dossier on Democratic grandees?

Are his subordinates now spreading it to the media?

Are 51 conservative former CIA contractors and retired spooks swearing that Newsom or Harris is working with the Russians, Chinese, or any of our enemies?

The greatest Democrat fear?

That it has so institutionalized excessive executive orders, ad hominem lawfare, lower-court usurpation, state nullification of federal law, and federal intervention in higher education, the energy industry, and the nation’s open spaces that their own legacies empowered Trump and now will boomerang upon themselves — as the public applauds the karma.

Tyler Durden Sat, 09/06/2025 - 10:30

U.S. Tells "Maryland Father": No Asylum, Next Stop Eswatini

The "Maryland Father" (well, in the eyes of leftist corporate media), otherwise known as alleged MS-13 illegal alien gangster Kilmar Abrego Garcia, was notified by the Department of Homeland Security about deportation plans to a tiny African country. 

In an email to the alleged MS-13 illegal alien gangster, published on X by Fox News' Bill Melugin, an Immigration and Customs Enforcement official informed the illegal that, given his concerns about being prosecuted and or even tortured in nearly two dozen countries, Eswatini is now considered the best fit.

The email added, "Nonetheless, we hereby notify you that your new country of removal is Eswatini, Africa." 

Homeland Security commented on X, "Homie is afraid of the entire western hemisphere."

Homie is afraid of the entire western hemisphere. https://t.co/lH7oZLaCKI

— Homeland Security (@DHSgov) September 5, 2025

Last month, leftist activist District Judge Paula Xinis, overseeing the illegal's case, ruled that the El Salvador native cannot be deported until early October. This comes as the illegal has been fighting for renewed asylum claims. 

The Trump administration recently offered the El Salvador native the option of deportation to Costa Rica in exchange for a guilty plea. However, his lawyers rejected the offer. He has been accused of human trafficking by the federal government.

New data obtained by Newsweek of ICE data via a Freedom of Information Act (FOIA) request showed that the Trump administration is on track to deport 276,207 illegals annually, or about 1.1 million over four years. 

In other news...

https://t.co/nZkBEj3GGi https://t.co/Zem0AayWUO pic.twitter.com/qJVpaAyJLb

— Homeland Security (@DHSgov) September 5, 2025

. . . 

Tyler Durden Sat, 09/06/2025 - 09:55

...And The Legacy Media Wonders Why Nobody Trusts Them

Authored by Dr. James Allan via DailySceptic.org,

Last year when I was asked to write a chapter for a US book on the incredible inroads and attacks on our civil liberties during the thuggish Covid lockdown years I decided, in part, to rank the worst offending groups. The lawyerly and doctorly castes were bad. They were woeful in fact. But the politicians as a class, the ones who ultimately made the calls, were worse – and there were very few exceptions to that generalised claim, as any Australian knows who looks for politicians who, say, resigned from Cabinet on principle (nada, zero) or who spoke up publicly and loudly against the massive authoritarian over-reach and aping of the policies of the Chinese Communist Politburo (a mere handful at most). 

So I gave the silver medal for thuggish lockdown commitment and stalwart thuggery to the political class. However, in terms of letting all of us citizens down I reserved the gold medal for the journalists of the legacy media. As a class they exhibited no scepticism. No thinking for themselves. They were fearmongers and PR agents for the modellers, public health gurus, ‘nudge’ manipulators and politicos. Yes, there were some brave exceptions. But very few. What we got from the legacy media was a sort of attempt to play the type of media you’d see in George Orwell’s 1984, dealing in Big Brother doublethink. And all of that is on top of the verifiably huge drift towards the political Left of the legacy media over the last few decades.

Well, if you were hoping things would get noticeably better after the lockdowns ended, they haven’t. 

For just one instance, let me take you to the murders of two young children and the wounding of at least 17 others in Minneapolis, Minnesota last week. It took place at a Catholic school with the murderer shooting at random through a stained-glass window during the first school mass of the academic year. The legacy media embarrassed itself reporting on this because it went against all the progressive class’s and legacy media’s (but I repeat myself) deeply held shibboleths and Left-wing bromides. You see the murderer was a man, Robert Westman, who back in 2020 had changed his first name to Robin and come out as transgender. He said he was now a female. And he hated Donald Trump. And he left behind a sort of manifesto that oozed antisemitism along with other bits of nastiness.

How to report this? How to report this, while still genuflecting before the progressive worldview? Life for the legacy media is just so much easier when a multiple shooter is a white, heterosexual male, preferably with conservative leanings. Then the details can be reported pronto. And the label ‘white nationalist’ will just be begging to be used. Alas, it was not to be. So on the transgender front the legacy media tied itself in knots. NBC News described the shooter as “a person in her early 20s”. The New York Times also used ‘she’ to describe the murderer. CNN talking heads worried about ‘misgendering’ the person who had killed two primary school kids and wounded 17 others, some severely. These journalists definitely know what’s important in a story, don’t they? The Washington Post got itself in a bit of a conundrum because, as it reported, “it is unclear how the shooter identified at the time of the incident”. 

Likewise, the NPR that President Trump has just defunded wrote that we “do not know how the person currently identified” while the very Left-leaning Associated Press told readers “the shooter’s gender identity wasn’t clear”. 

Oh, and on CNN the former FBI Deputy Director Andrew McCabe, the man embroiled up to his neck in the Russian collusion scam against Donald Trump, made a point of calling the trans murderer by his preferred identity: “I’m sure [the killer’s mother] is grieving for her daughter” – also somewhat misdirecting the first port of call for sympathy you might think.

Meantime no legacy media outlet that I know of mentioned the fact that an awful lot of recent mass school shootings have been committed by transgender murderers – in Denver, Nashville, Uvalde, Georgia, Aberdeen, Philadelphia, the list goes on.

 In fact, it is a massively disproportionate number of such crimes being committed by transgender school shooters, a point I make for all the identity politics Lefties out there who insist on seeing the world in terms of groups.

I agree with the growing numbers of people who say the two most likely reasons for this are a) gender dysphoria is a severe mental illness which right now is not being treated as mental illness, but instead is being humoured and encouraged. Or, b) transgender people who transition are being subjected to intense doses of drugs that may be having an unpredictable effect on their behaviour or aggravating their pre-existing mental illness. Because let’s be honest. If you told someone you were Napoleon Bonaparte trapped in the wrong body that person would not make empathy his main response and cater to your self-delusion. He would try to explain that there is a mind-independent truth about the external, causal world. Likewise, the 47 year-old cannot identify as a 13 year-old to win some sporting competition. Because however he feels or whatever his preferences, he is not 13 years old. Again, the white woman doesn’t get to be black just because that’s what she would like and is how she sees herself. 

As one US commentator rightly noted after this Minnesota tragedy, “The trans movement has been a disaster in every way and should be re-examined from the ground up.” 

And the higher up the socio-economic ladder you go, the more sympathy you find for this toxic empathy. Rich, white women seem to be the most in its thrall.

The other big difficulty for the legacy media in reporting this shooting was the fact that the shooter hated Trump and wasn’t all-in on MAGA. Indeed, this shooter, Robert Westwood, had written “kill Donald Trump” on his gun. Now, how could they report that without pushing a characterisation that would help the current US President (a.k.a. ‘Hitler’)? Well, one of the terrestrial, longstanding main US TV networks tried to square that circle by reporting that the murderer had “Donald Trump’s name on his gun”. Yes, you read that sleight of hand correctly. Still want to know why the legacy media is dying and why conservatives, especially, no longer trust anything that they are being told by these partisan hacks? Why supposed Right-of-centre politicians pay any attention to these legacy media journalists is beyond me. Just look and see how Donald Trump and Pierre Poilievre treat them with disdain and copy that.

Tyler Durden Sat, 09/06/2025 - 09:20

The key economic report this week is the August Consumer Price Index (CPI).

The BLS will release the preliminary employment benchmark revision on Tuesday.

----- Monday, September 8th -----
No major economic releases scheduled.

----- Tuesday, September 9th -----
6:00 AM: NFIB Small Business Optimism Index for August.

10:00 AM: the Bureau of Labor Statistics (BLS) will release the Current Employment Statistics Preliminary Benchmark (National) for March 2025.

----- Wednesday, September 10th -----
7:00 AM ET: The Mortgage Bankers Association (MBA) will release the results for the mortgage purchase applications index.

8:30 AM: The Producer Price Index for August from the BLS. The consensus is for a 0.3% increase in PPI, and a 0.3% increase in core PPI.

----- Thursday, September 11th -----
8:30 AM: The initial weekly unemployment claims report will be released. The consensus is for initial claims to increase to 240 thousand from 237 thousand last week.

8:30 AM: The Consumer Price Index for August from the BLS. The consensus is for a 0.3% increase in CPI, and a 0.3% increase in core CPI.  The consensus is for CPI to be up 2.9% year-over-year (up from 2.7% in July) and core CPI to be up 3.1% YoY (unchanged from 3.1% in July).

12:00 PM: Q2 Flow of Funds Accounts of the United States from the Federal Reserve.

----- Friday, September 12th -----
10:00 AM: University of Michigan's Consumer sentiment index (Preliminary for September).

EU Lawmakers Skeptical Of Digital Euro As ECB Renews Pitch

Authored by Jesse Coghlan via CoinTelegraph.com,

The European Central Bank (ECB) renewed its push to issue a digital euro, drawing pushback from EU lawmakers over privacy protections and potential risks to commercial banks.

ECB board member Piero Cipollone told a parliamentary economic committee on Thursday that a digital euro “will ensure that all Europeans can pay at all times with a free, universally accepted digital means of payment, even in case of major disruptions.”

Some parliamentarians pushed back over concerns that the digital currency wouldn’t protect user privacy, and that offering accounts backed by the central bank would undercut the private sector.

Legislation for the central bank digital currency (CBDC) has been before the European Parliament since 2023, and has faced delays amid political concerns and the 2024 elections.

Digital euro seen as fallback in crisis

The ECB’s Cipollone said the core of the bloc’s digital payment systems comes from non-EU providers, which could hinder the “capacity to act swiftly and independently — particularly in times of crisis.”

He pitched the digital euro as a fallback in cases of cyberattacks or network outages, and noted US efforts to promote dollar-backed stablecoins.

Source: ECB

Cipollone said a digital euro would “complement physical cash, which remains key for resilience and inclusion,” but added that digital payments are now “essential to daily life,” which the government is expected to ensure.

Lawmakers warn on privacy, risks to banks

Some lawmakers raised concerns about the privacy implications of a digital euro and the risk that EU citizens would choose to bank with the ECB over a commercial bank, as it would present a safer option.

On privacy, Cipollone stressed that the central bank “will not know anything about the payer and the payee” and that an offline solution for the digital currency “will be as good as cash in terms of preserving the privacy of the people.”

Pierre Pimpie of the right-wing Eurosceptic Patriots for Europe group said “accounts in private banks could be emptied” due to a digital euro and took issue with the ECB having control over setting a cap on user accounts, which he argued the bank could raise in a crisis.

Cipollone said the central bank’s cap would be set “on the basis of rigorous analysis” and added that if corporations and wealthy individuals “see a crisis in Europe, it will take them a second to buy a stablecoins denominated in a different currency.”

“The digital euro at that point would be the least of our problems,” he added.

ECB eyes 2026 law, rollout by 2029

Cipollone said the ECB was working under the assumption that digital euro legislation would be in place by the second quarter of 2026.

Three EU institutions must greenlight the digital euro, including the parliament, the European Commission and the European Council. Talks among them could take months.

After the law is passed, which could be as late as the middle of 2026, the ECB has to create and test the digital currency’s infrastructure, which could take up to three years, putting a potential launch around 2029 if no delays occur.

Tyler Durden Sat, 09/06/2025 - 08:10

These Are Europe's Best-Selling Car Brands So Far In 2025

Which car brands are winning Europe’s competitive auto market in 2025, and how much of their sales are electric and hybrid vehicles?

This visualization, via Visual Capitalist's Niccolo Conte, shows the best-selling car brands in Europe in the first half of 2025 so far using data from JATO Dynamics via Best-Selling Cars.

It also showcases the share of internal combustion engine (ICE) sales vs. hybrid and electric vehicle (EV) sales for each car brand.

Volkswagen Group Leads European Car Sales

Volkswagen Group remains Europe’s top car seller, with over 1.8 million units sold in the first half of 2025, as seen in the data table below.

While still heavily reliant on combustion engines (72% of sales), Volkswagen has steadily increased its electric offerings, which now represent 28% of sales.

Volkswagen maintains a significant lead over Stellantis, the second-largest car brand with 1.04 million units sold in H1 2025. Stellantis has the highest share of combustion cars sold among the top 10 car brands at 83%, with just 17% of sales coming from EVs or hybrid vehicles.

Europe’s Emerging Car Brand Competitors

Renault Group (704,023) and Hyundai Motor Group (540,917) were third and fourth respectively, with both of them having 43% of their sales coming from hybrids or EVs.

Premium brands like BMW group (40% electrified) and Mercedes-Benz (34%) are also rapidly transitioning towards more electric and hybrid offerings.

Meanwhile, Chinese-owned Geely Group (with 67% of sales EV or hybrid) is gaining ground in Europe with competitive EV offerings and ranked ninth in total sales with 202,230 just ahead of Nissan (165,645) and behind Ford (257,337).

Toyota’s Electrification Edge in Europe

Toyota ranks sixth with nearly 479,000 cars sold but stands out for its electrification strategy.

A remarkable 86% of its European sales were hybrids or EVs, the highest share of any top automaker. Toyota’s strong hybrid lineup and growing adoption of electrified models in Europe has helped it compete against larger-volume and domestic brands.

To learn more about EV adoption around the world, check out this chart on global EV adoption over time on Voronoi, the new app from Visual Capitalist.

Tyler Durden Sat, 09/06/2025 - 07:35

"The Time For Real Change Is Now!" - Conor McGregor Urges Irish To Lobby Councillors For Presidential Bid

Authored by Thomas Brooke via Remix News,

Former MMA champion Conor McGregor has urged his online supporters to pressure local councillors into nominating him as a candidate for the Irish presidency.

In a video filmed outside Government Buildings in Dublin, McGregor attacked the government over homelessness, migration, and security.

“We have seen the homelessness of Irish children rise to levels unprecedented, proving this government’s refusal to abide by and respect our proclamation where all children of Irish are to be cherished. Instead, our children abandoned,” he said.

He also claimed tourism had declined and “danger on our streets has risen” as a result of mass immigration.

Citizens of Ireland, the time for real change is now!

As President, I will not sign any bill in law until it goes back to the people first!

If you want to see my name on the ballot for the Presidency, I urge you to contact your local county councillors today and ask them to… pic.twitter.com/LGDCSGN9vr

— Conor McGregor (@TheNotoriousMMA) September 4, 2025

Describing himself as a “master of martial combat” and a “solution-driven man,” McGregor called on his followers to contact councillors.

“If you want to see my name on the ballot for the presidency, I urge you to contact your local county councillors today and ask them to nominate me,” he said.

“Our councillors are the backbone of our communities. They work harder and deliver more for the people than those in the Oireachtas, who continue to fail this country time and again.”

He told supporters he wanted to be “a president face to face with government officials with only one priority — to ensure that the country our founding fathers gave their lives for is strictly adhered to on behalf of its citizens.”

He tied his message to Ireland’s republican tradition, invoking the 1916 Proclamation.

“Ireland, under my tenure, the will of the people will be heard. Ireland under my tenure, we will return important articles of our constitution prior, and thus again aligning with Padraig Pearse’s proclamation,” he said, referring to the revolutionary who was one of the leaders of the Easter Rising.

To run, a candidate must secure the backing of either four of the State’s 31 local authorities or 20 members of the Irish bicameral parliament.

McGregor’s plea suggests he is not confident about securing the latter, and is thus seeking the people to lobby their local councillors to get him on the ballot.

The Irish presidential election is scheduled to be held on Oct. 24.

Read more here...

Tyler Durden Sat, 09/06/2025 - 07:00

The weekend is here! Pour yourself a mug of Colombia Tolima Los Brasiles Peaberry Organic coffee, grab a seat outside, and get ready for our longer-form weekend reads:

• MotorTrend Lived With A Tesla Model Y For 2 Years And Hated Every Second Of It: After opening its long-term review with a paragraph about the positives of the Model Y, MotorTrend got right into it with the second paragraph: To me, our Model Y is antagonistic to enjoyable driving. I dreaded getting in it and often pushed the speed limit so I could get out of it sooner. Few things have tested my patience like this car, and I have two younger brothers. If it were a person, I’d face charges for all the times I kicked its tire or punched its steering wheel out of visceral frustration. (Jalopnik)

• Who will be in charge of interest rates? Fed independence is a question of power. And, as with many institutions today, President Trump is trying to reduce the Fed’s power and increase his own. That dramatic backdrop makes today’s Senate confirmation hearing on Stephen Miran’s nomination for Fed Governor anything but normal. The term “Fed independence” will be invoked repeatedly, but words are not enough. (Stay-At-Home Macro)

• The Magic of In-Kind Bitcoin: Making new shares of Bitcoin ETFs just got a whole lot more interesting. (ETF.com)

• As he builds US power, Justin Sun fights to control his story: A crypto billionaire who once feared arrest in the US is now a Trump business adviser and White House guest. His lawsuit against Bloomberg reveals what he doesn’t want Americans to know about his crypto fortune. (Citation Needed)

• The Mortgage Buydown Backfire: Homebuyers made a big bet on lower mortgage rates. They’re paying a high price. (Business Insider)

• How Bombas Built a Fancy Socks Empire With $500 Million in Sales: More than a decade after their Shark Tank appearance, the company’s co-founders have successfully pushed into T-shirts, slippers and undergarments. (Businessweek)

• Long Read: My Mom and Dr. DeepSeek: In China and around the world, the sick and lonely turn to AI. (Rest Of World)

• The History of The New Yorker’s Vaunted Fact-Checking Department: Reporters engage in charm and betrayal; checkers are in the harm-reduction business. (New Yorker)

• The Structural Solar Surge. As China and the US are reducing policy support to the solar sectors, we review the drivers of the solar boom—the fastest in the history of electricity—and our outlook for slower but still rapid growth in global solar installations. n Structural solar surge. Solar energy, which has consistently beaten expectations, is likely to meet a high share of long-run global energy demand because three drivers of the surge look structural.  (Goldman Sachs)

• Is Universal Music Going to War with Rick Beato? Just when you thought major labels couldn’t get more stupid. But just when I think I’ve seen it all, some new kind of stupid comes my way via the music biz. And that’s the case right now. Universal Music Group has gone to war with Rick Beato… (The Honest Broker)

Be sure to check out our special edition of Masters in Business interview, with Neal Katyal, Milbank LLP partner and former acting Solicitor General of the US. We sat down in the studio on Wednesday, August 27th, just two days before the D.C. Court of Appeals issued its decision in VOS Selection vs Trump on Friday, August 29th, finding the Tariffs unlawful. We also spoke after the decision, and he laidf out the path forward to the Supreme Court.

 

This is the second longest run of positive payroll prints in history

Source: Jim Reid, Deutsche Bank

 

Sign up for our reads-only mailing list here.

~~~

To learn how these reads are assembled each day, please see this.

 

The post 10 Weekend Reads appeared first on The Big Picture.

The Power Of Siberia 2 Pipeline Deal Signifies The Failure Of Trump's Eurasian Grand Strategy

Authored by Andrew Korybko via Substack,

Trump’s escalatory signals in Ukraine, the Indo-US split that he induced, and the attendant alleviation of the Sino-Indo security dilemma freed Russia up to clinch the long-negotiated Power of Siberia 2 deal...

Trump’s Eurasian grand strategy has sought to preemptively avert Russia’s potentially disproportionate dependence on China in order to avoid having its natural resources turbocharge the superpower trajectory of the US’ only systemic rival. In pursuit of this, the US envisaged entering into a resource-centric strategic partnership with Russia upon the end of the Ukrainian Conflict, expecting that this shared goal would incentivize Putin into agreeing to significant territorial and/or security concessions.

Trump’s unwillingness or inability to coerce Zelensky into any of Putin’s demanded concessions paired with increasingly concerning reports about plans to deploy NATO to Ukraine to spook Putin into ditching his balancing act and pivoting to China. The successful clinching of their long-negotiated deal over the Power of Siberia 2 gas pipeline, which will nearly double Russia’s gas exports to China to ~100 bcm a year and at a cheaper price than the EU receives, signifies the failure of Trump’s Eurasian grand strategy.

Putin might have held out for longer had Trump not inadvertently catalyzed the incipient Sino-Indo rapprochement via his hypocritically punitive tariffs that aim to derail India’s rise as a Great Power. That spooked India into patching up its ties with China, which alleviated their security dilemma that the US was exploiting to divide-and-rule them. This in turn reduced India’s worries about closer Russian-Chinese energy cooperation that it previously feared could lead to Russia becoming China’s junior partner.

It was never officially voiced, but astute observers and those who’ve talked to Indian thinkers know that India was worried that China might leverage its influence over Russia to get it to curtail or cut off military exports to India, therefore giving China a pivotal edge in their border dispute. The Trump-induced Indo-US split and attendant alleviation of the Sino-Indo security dilemma freed Russia up to clinch the Power of Siberia 2 deal without fear of spooking India into the US’ arms and thus dividing-and-ruling Eurasia.

The growing convergence between BRICS and the SCO, which aim to gradually reform global governance via their complementary efforts to accelerate multipolar processes, is due in no small part to India’s embrace of both in response to new strategic threats from the US. Prime Minister Narendra Modi’s first visit to China in seven years to attend the SCO Leaders’ Summit, during which time he held an important bilateral meeting with President Xi Jinping, is expected to lead to a new normal in Sino-Indo ties.

The roots of their tensions haven’t been resolved, but Russia expects that they’ll now be better managed, ergo why it clinched its deal with China over the Power of Siberia 2 gas pipeline right after also concluding that the US won’t try to help it obtain any of what it wants from Ukraine. To review, Trump signaled escalatory intent in Ukraine reportedly as the quid pro quo for the US-EU trade deal and then Sino-Indo ties improved as Indo-US ones worsened, thus making Power of Siberia 2 politically possible.

Trump’s foreign policy towards Eurasia has therefore indisputably failed. His team’s misguided approach towards Russia and India in demanding too much of them led to those two and China working out their differences, which exist amongst themselves bilaterally but also regarding their ties with the US, and consequently accelerated multipolar processes at the expense of the US’ unipolar interests. The Rubicon has clearly been crossed after this latest pipeline deal and it’s anyone’s guess how the US will respond.

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

Tyler Durden Fri, 09/05/2025 - 23:25