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H.R. 5874, TAAP Act

CBO -

As ordered reported by the House Committee on Natural Resources on January 17, 2024

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Why Trials Like Trump's Must Be Televised

Zero Hedge -

Why Trials Like Trump's Must Be Televised

Authored by Alan Dershowitz via The Gatestone Institute,

If you were flipping between CNN and Fox News following the cross-examination of Stormy Daniels in the New York criminal case against former President Donald Trump, you would have had the impression that the CNN commentator, who professed to be reporting what happened in the courtroom, described a completely different event from what the Fox News reporter, who was also in the courtroom, described. It was as if they had seen two different witnesses and two different lawyers.

The CNN commentator reported that Daniels had done a great job holding up against the incompetent cross-examination of Trump's lawyer. The Fox News commentator reported that the extraordinarily effective Trump lawyer had totally destroyed Daniels' credibility. Who were you to believe? The CNN commentator was an experienced lawyer who was purporting to describe accurately what had happened without bias or subjectivity. The Fox News commentator was a former judge and prosecutor with vast experience, who also claimed to be describing the cross-examination without bias. Neither of the commentators even pretended to paint a gray picture. One was starkly black, the other unambiguously white. No nuance in either account.

If the trial had been televised, the dominant color would have been gray. Perry Mason cross-examinations rarely occur in real life, and witnesses like Daniels rarely emerge unscathed from cross-examinations even by mediocre lawyers.

We, the American public, however, have been denied the right to judge for ourselves how the case against the once and possibly future president is going. We cannot judge the credibility of witnesses, the fairness of the judge or the effectiveness of the lawyers. We must depend on the subjective and generally biased accounts of often partisan "reporters."

Polls following the OJ Simpson case suggested that those who personally watched the trial on TV were less surprised by the not guilty verdict than those who only read about it in the media, which generally described it as an open and shut case and predicted a guilty verdict. They downplayed or omitted the gaps in the prosecution case and the mistakes made by prosecutors that may have led jurors to find reasonable doubt.

The same may be true of the Trump case, except that everyone is seeing the case through the prism of the reporters, rather than with their own eyes. Those who get their "news" from anti-Trump sources will be surprised and outraged if there is an acquittal or hung jury in this "strong" case. Those who get their "news" from pro-Trump sources will be surprised and outraged by a conviction in this "weak" case.

The result of making us rely on partisan secondary sources rather than our own direct observations is inevitable distrust in the justice system. If "Sunlight is the best disinfectant," lack of visibility is a major source of distrust.

Every important trial involving public figures should be televised. Now the trial of Senator Robert Menendez is starting. It, too, should be publicized so that the public can see how the judiciary deals with an important case involving a member of the legislative branch. Even the Supreme Court now permits live audio broadcasts of important appellate cases. Hopefully, they will soon allow telecasting since there is little difference between listening and seeing the justices and the lawyers.

The framers of the Constitution intended all judicial proceedings to be public – no secret trials. At the time of the framing, public meant open to print journalists. Today, public means audio and video publication.

The New York trial of Trump is a national scandal. There is no real crime. The judge has allowed testimony that is highly prejudicial and irrelevant. He has made numerous unfair rulings, of which the prosecution has taken advantage. The public has the right to see this abuse with their own eyes, so that we all can judge for ourselves and not allow possibly biased reporters to judge for us.

Now the government's star witness is testifying. Michael Cohen's credibility promises to be a key factor in the jury's deliberation. Every citizen should have a right to make his or her own assessment of his credibility or lack thereof.

There is no good argument for allowing CNN to tell us whether he is believable, when we might come to a different conclusion based on direct observation with our own eyes.

Tyler Durden Thu, 05/16/2024 - 13:05

Romney Says Biden Should Have "Immediately" Pardoned Trump To Be "Big Guy"

Zero Hedge -

Romney Says Biden Should Have "Immediately" Pardoned Trump To Be "Big Guy"

Trump-hating Utah Republican Sen. Mitt Romney says President Joe Biden should have "immediately" pardoned former President Donald Trump as a power play to look like "the big guy."

"[Biden] should have fought like crazy to keep this prosecution from going forward," Romney told MSNBC. "It was a win-win for Donald Trump."

"You may disagree with this, but had I been President Biden when the Justice Department brought on indictments, I would have immediately pardoned him. I’d have pardoned President Trump," he added. "Why? Well, because it makes me, President Biden, the big guy and the person I pardoned a little guy."

According to Romney, President Lyndon B. Johnson set the precedent for such a move, and that Biden could have urged New York prosecutors in the hush money case to drop the charges.

"I have been around for a while. If LBJ had been president and he didn’t want something like this to happen, he’d have been all over that prosecutor, saying, ‘You better not bring that forward or I’m gonna drive you out of office,’" said the Utah Republican.

Romney also slammed Republican Trump loyalists for showing up to the courthouse to show support for the former president.

"I think it’s a terrible fault for our country to see people attacking our legal system — that’s an enormous mistake," Romney continued. "I think it’s also demeaning for people to quite apparently try and run for vice president by donning a red tie and standing outside the courthouse. It’s just — I’d have felt awkward."

Of note, House Speaker Mike Johnson (R-LA), Rep. Byron Donalds (R-FL) and Sen. J.D. Vance (R-OH) have all attended court this week. Trump VP hopefuls Doug Burgum and Vivek Ramaswamy have also shown up.

On Thursday, Rep. Matt Gaetz (R-FL) joined the action.

 

Tyler Durden Thu, 05/16/2024 - 12:45

Oh, Elon!

Angry Bear -

My wife drives a 21 year-old Pontiac Vibe (= Toyota Matrix). It could fail at any time, and the question of what she’ll replace it with is on our minds. EV or hybrid? I personally know some Tesla owners who are happy with their choice, but I remain concerned about range and charging stations. Thanks, […]

The post Oh, Elon! appeared first on Angry Bear.

America Is No Longer A Hyperpower, And Others Keep On Rocketing The Free World

Zero Hedge -

America Is No Longer A Hyperpower, And Others Keep On Rocketing The Free World

By Michael Every of Rabobank

Stocks up, Stonks up, bonds up, gold up, crypto up, and copper up to a new record high. Almost everything rocketed after US CPI came a slither lower than expected --and 30 minutes earlier than scheduled on the BLS website, which markets looking only at Bloomberg didn’t notice(!)-- but with no decline in crucial core services from near 5% y-o-y, even as retail sales came in much weaker. So, more stagflation overall really, but that’s markets in the free world now, as traders priced in the Fed cuts in September and December which our Philip Marey was already calling.

Meanwhile, US Secretary of State Blinken played ‘Keep on Rockin’ in the Free World’ in Kyiv as Russia rocketed Ukraine and took even more territory from it: the situation there officially remains “worrying.” That’s after humiliating US retreats from Afghanistan and Niger, ally Colombia moving out of the US orbit, Venezuela moving armed forces to the border of Guyana’s oil-rich region of Essequibo; White House calls of a calm Middle East pre-October 7, as war there now goes on, with US forces regularly struck by pro-Iran militias; Iran cooperating with North Korea more; and Filipino (with a US defence treaty) and Chinese flotillas in another tense stand-off in the South China Sea. Realpolitik is saying, “OK, boomer” to those who cover Neil Young.  

In the EU, there was an attempted assassination of Slovakia’s pro-Russia Prime Minister Fico, who is still in critical condition: the alleged culprit is a liberal, pro-EU poet. In the Netherlands, the far-right Party for Freedom (PVV) of Geert Wilders announced a coalition government with the centre-right People’s Party for Freedom and Democracy (VVD), the New Social Contract party (NSC), and the Farmer-Citizen Movement (BBB), though Wilders will not be PM, just éminence grise. Near the EU, Moldova signed an agreement with it on cooperation in security and defence: but the EU almost certainly won’t defend it from Russia. The ‘free world’ keeps rocking.

In the US, we are promised Biden-Trump debates on 27 June and 10 September in a new format with no studio audience or third-party candidates: cynics will say markets must therefore stay bid until July at least. Regardless, both men at the debate mean huge fiscal deficits ahead, and the latest tariffs show markets will get ‘Triden’ or ‘Brump’. The ‘free markets world’ keeps rocking too.

More so as China suggested it may institute what I always said was the inevitable endgame for its housing market: using state funds to buy up millions of unwanted homes, and turning them into social housing, effectively nationalizing it. A flurry of related questions remain, including the staggering price tag, but the overall plan is clear: houses are for living in, not speculation, and Chinese capital will be freed up from mortgage lending to focus on (military) industrial production.

And what has the free world got to offer by contrast? In Australia, a housing auctioneer bewails the barista who serves him his coffee has to work for 45 years just to get a deposit. Even the Prime Minister is kicking a tenant out of his rental property because he can cash in on higher house prices. In short, housing is for speculation and not for living in; and western capital is tied up in mortgage lending instead of focusing on (military) industrial production.

This underlines how radically Western policy needs to change. After all, Russia is now spending 8.7% of GDP on defence: economists who pooh-poohed war in early 2022 might note that’s FIVE ‘Italys’, with far higher purchasing power parity. President Putin is talking ‘guns or butter’ choices and appointed an economist as defence minister to make the war economy run more efficiently. The West can’t work out just guns, butter, or housing, let alone ‘guns or butter or housing’.

Linking this all up, the brilliant and needling ‘Keep on Rockin’ in the Free World’ was an attack on the worst side of free-market America that was a global hyperpower that didn’t look after its own poor well, not a way to praise it. Just read the lyrics or watch the video:

“There’s colors on the street; Red, white, and blue

People shuffling their feet; People sleeping in their shoes

There’s a warning sign on the road ahead; There’s a lot of people saying we’d be better off dead

Don’t feel like Satan, but I am to them; So I try to forget it any way I can

Keep on rockin' in the free world (x4)

I see a woman in the night; With a baby in her hand

There's an old street light; Near a garbage can

Now she put the kid away and she’s gone to get a hit; She hates her life and what she’s done to it

There’s one more kid that’ll never go to school; Never get to fall in love, never get to be cool

Keep on rockin' in the free world (x4)

We got a thousand points of light; For the homeless man; We got a kinder, gentler machine gun hand

We've got department stores and toilet paper; Got styrofoam boxes for the ozone layer

Got a man of the people says keep hope alive; Got fuel to burn, got roads to drive

Keep on rockin' in the free world (x4)”

If Neil Young were to update the lyrics today, he might add something about Stonks and crypto perhaps, but an awful lot of it still stings as it is: even more so as America is no longer a hyperpower, and others keep on rocketing the free world.

Tyler Durden Thu, 05/16/2024 - 12:25

As Gaza Aid Pier Completed, Pentagon Vows To Protect US Troops Overseeing It

Zero Hedge -

As Gaza Aid Pier Completed, Pentagon Vows To Protect US Troops Overseeing It

The Pentagon announced Thursday that its floating pier built for Gaza aid has finally been completed and installed. Badly needed humanitarian aid, especially food, will begin being delivered by ships imminently.

The completion comes more than two months after President Biden first unveiled the plan, and has been fraught with challenges including inclement weather as well as threats on Hamas against any potential foreign troop presence.

On this latter point, Navy Vice Adm. Brad Cooper of Central Command, said that "protection of U.S. forces participating is a top priority. And as such, in the last several weeks, the United States and Israel have developed an integrated security plan to protect all the personnel."

Image source: US Central Command (CENTCOM)

He added, "We are confident in the ability of this security arrangement to protect those involved." Israel's military will provide security on the shore while the USS Arleigh Burke and the USS Paul Ignatius patrol waters just off the coast.

US CENTCOM has further confirmed, "Trucks carrying humanitarian assistance are expected to begin moving ashore in the coming days." The military statement added, "The United Nations will receive the aid and coordinate its distribution into Gaza."

Overseeing and handling the inbound humanitarian aid itself will be the UN's World Food Program.

Israel's military commented that "We have been working for months on full cooperation with (the U.S. military) on this project, facilitating it, supporting it in any way possible."

Some humanitarian aid organizations and leaders have still criticized the costly pier project, questioning why Israel doesn't just let overland convoys into the Gaza Strip:

Because land crossings could bring in all the needed aid if Israeli officials allowed, the U.S.-built pier-and-sea route "is a solution for a problem that doesn’t exist," said Scott Paul, an associate director of the Oxfam humanitarian organization.

One recent issue to arise is the increased number of attacks by Israeli settlers on aid trucks and convoys. Israeli media has confirmed these attacks, including the below:

Several examples of such filmed attacks on aid convoys have been widely circulating over the last days...

The US military has further described of what comes next as follows: "Trucks carrying humanitarian assistance are expected to begin moving ashore in the coming days." The statement added: "The United Nations will receive the aid and coordinate its distribution into Gaza."

Tyler Durden Thu, 05/16/2024 - 12:05

MBA: Mortgage Delinquencies Increased Slightly in Q1 2024

Calculated Risk -

Today, in the Calculated Risk Real Estate Newsletter: MBA: Mortgage Delinquencies Increased Slightly in Q1 2024

A brief excerpt:
From the MBA: Mortgage Delinquencies Increase Slightly in the First Quarter of 2024
The delinquency rate for mortgage loans on one-to-four-unit residential properties increased to a seasonally adjusted rate of 3.94 percent of all loans outstanding at the end of the first quarter of 2024, according to the Mortgage Bankers Association’s (MBA) National Delinquency Survey.
MBA National Delinquency Survey Q1 2024The following graph shows the percent of loans delinquent by days past due. Overall delinquencies increased slightly in Q1. The sharp increase in 2020 in the 90-day bucket was due to loans in forbearance (included as delinquent, but not reported to the credit bureaus).

The percent of loans in the foreclosure process decreased year-over-year from 0.57 percent in Q1 2023 to 0.46 percent in Q1 2024 (red), even with the end of the foreclosure moratoriums, and remains historically low.
...
The primary concern is the increase in 30- and 60-day delinquency rates, and even though the rate is historically low, it has increased from 2.32% in Q1 2023 to 2.92% in Q1 2024. I don’t think this increase is much of a worry, but it is something to watch.
There is much more in the article.

Hunter Biden Loses Bid To Halt Tax Evasion Court Proceedings As 9th Circuit Dismisses Appeal

Zero Hedge -

Hunter Biden Loses Bid To Halt Tax Evasion Court Proceedings As 9th Circuit Dismisses Appeal

Authored by Caden Pearsen via The Epoch Times

Hunter Biden lost his bid to halt his tax evasion district court proceedings in California on Wednesday after the Ninth Circuit declined to hear his appeal.

District Judge Mark Scarsi denied Mr. Biden’s motion for a stay of proceedings in the U.S. District Court for the Central District of California pending the outcome of his appeal. The stay had been requested on May 10 after Mr. Biden filed his interlocutory appeal to the U.S. Court of Appeals for the Ninth Circuit.

On Wednesday, the Ninth Circuit panel ruled in favor of the special counsel and dismissed Mr. Biden’s appeal.

This rendered moot a motion filed by Mr. Biden’s lawyers on Tuesday asking the judge for an expedited hearing on his motion to halt proceedings or, alternatively, for the judge to consider his written motion without hearing oral arguments.

“Because the panel’s order moots Mr. Biden’s motion, the Court grants the application to rule on shortened time and denies the motion,” Judge Scarsi wrote in his order on Wednesday.

Judge Scarsi’s order stated that his prior orders and the trial schedule would remain in place, and that the court would hear any further requests to modify the pre-trial schedule at a conference on May 29.

Mr. Biden, who had argued that the district court’s jurisdiction had been divested once he filed his interlocutory appeal, filed his motion for a stay after the judge wrote in a May 9 order that failing to do so would be “at his own peril.”

Hunter Biden’s Problems ‘Are Entirely of His Own Making’

Special Counsel David Weiss, who is prosecuting the case on behalf of the government, opposed Mr. Biden’s bid to halt proceedings while waiting to hear the outcome from the Ninth Circuit. He argued that any “problems” with scheduling conflicts in both Mr. Biden’s California tax evasion case and his Delaware gun charges case “are entirely of his own making.”

In his brief asking for an expedited hearing filed on Tuesday, Mr. Biden’s lawyers told Judge Scarsi that he wasn’t aware that failing to file a motion to stay pending appeal would be “at his own peril,” and that he promptly filed his motion to stay the next day after the judge’s order came down.

In requesting an expedited hearing, Angela Machala and Abbe Lowell, the lawyers representing Mr. Biden, had sought to address scheduling conflicts in pretrial proceedings that threatened to emerge due to potential appeals court proceedings and an upcoming trial on June 3 in his Delaware case.

The lawyers argued that Mr. Biden was not to blame for the overlap in the separate court proceedings.

Specifically, Mr. Biden’s lawyers asked that a hearing on his motion to stay take place before a pretrial conference scheduled for May 29 to comply with court rules on when hearings can be set.

This potential conflict was rendered moot by the Ninth Circuit’s ruling on Wednesday. Similarly, the Third Circuit, where Mr. Biden had taken his Delaware appeal, also dismissed his motions.

Mr. Biden had previously argued that the district court had been divested of its jurisdiction when he filed an appeal with the Ninth Circuit. This claim was disputed by the special counsel.

On May 9, Judge Mark Scarsi stated that the court “has not vacated the pretrial schedule, and absent a request for [a stay], Mr. Biden ignores the Court’s orders at his own peril.”

In response, Mr. Biden filed his motion for stay pending appeal the next day. In that filing, he maintained his position that the court had been divested of jurisdiction by the act of filing his interlocutory appeal.

Mr. Biden’s lawyers argued that he was not at fault for “creating the crisis” that led to their requesting the stay, nor did the scheduling conflict come about “as a result of excusable neglect.”

In contrast, the special counsel sought to counter these arguments on Tuesday, arguing that “the defendant’s ‘hardship’ is one he has created for himself.”

The Epoch Times contacted Mr. Biden’s attorneys for comment.

Tyler Durden Thu, 05/16/2024 - 11:45

Under Armour Approves Restructuring, Warns Of Collapse In Clothing Demand As Buyback Authorized To Save Plunging Stock

Zero Hedge -

Under Armour Approves Restructuring, Warns Of Collapse In Clothing Demand As Buyback Authorized To Save Plunging Stock

Under Armour CEO Kevin Plank needs to spend long weekends at his thoroughbred horse breeding farm in steeplechase country in upper Baltimore County to reflect on what has happened to the sportswear company over the past decade. Once a star of the apparel industry, UA is now undergoing a restructuring as its share price plunged to 2010 levels. 

Let's skip the fourth quarter fiscal 2024 report and focus on the restructuring plan and the dismal outlook for the year. 

UA's Board of Directors approved a restructuring plan estimated to cost about $70 million to $90 million - including employee severance and benefits costs. 

  • Up to $50 million in cash-related charges, consisting of approximately $15 million in employee severance and benefits costs, and $35 million related to various transformational initiatives, and

  • Up to $40 million in non-cash charges comprised of approximately $7 million in employee severance and benefits costs and $33 million in facility, software and other asset-related charges and impairments.

This year's fiscal outlook is beyond bleak and outright horrible, with demand expected to implode across the North American segment.

Here are the highlights of the outlook:

  • Revenue is expected to be down at a low-double-digit percentage rate. This includes an expected 15 to 17 percent decline in North America as the company works to meaningfully reset this business following years of heightened promotional activities, particularly in its DTC business and a low-single-digit percent decline in its international business due to more conservative macro consumer trends and actions to protect the brand strength it has built.

  • Gross margin is expected to be up 75 to 100 basis points compared to the prior year, driven by a material reduction in promotional and discounting activities in the company's direct-to-consumer business and product costing benefits.

  • Selling, general, and administrative expenses are expected to be down 2 to 4 percent.

  • Operating income is expected to be $50 to $70 million. Excluding the mid-point of anticipated restructuring charges, adjusted operating income is expected to be $130 to $150 million.

  • Diluted earnings per share is expected to be between $0.02 and $0.05. Adjusted diluted earnings per share is expected to be between $0.18 and $0.21.

  • Capital expenditures are expected to be between $200 to $220 million.

Plank commented on the outlook: 

"Due to a confluence of factors, including lower wholesale channel demand and inconsistent execution across our business, we are seizing this critical moment to make proactive decisions to build a premium positioning for our brand, which will pressure our top and bottom line in the near term.

"Over the next 18 months, there is a significant opportunity to reconstitute Under Armour's brand strength through achieving more, by doing less and focusing on our core fundamentals: driving demand through better products and storytelling, running smarter plays like simplifying our operating model and elevating our consumer experience. In parallel, we're focused on cost management and implementing the strategies necessary to grow our brand and improve shareholder value as we move forward."

And, of course, to ensure the company's stock doesn't go to zero, the Board of Directors authorized the repurchase of up to $500 million of UA's outstanding Class C common stock. 

Shares initially opened at 2010 lows.

...have since found a panic bid on the buyback announcement. 

Sigh, Plank. 

Tyler Durden Thu, 05/16/2024 - 11:25

Unsold Teslas Pile-Up In Mall Parking-Lots, Big Discounts Likely

Zero Hedge -

Unsold Teslas Pile-Up In Mall Parking-Lots, Big Discounts Likely

Authored by Mike Shedlock via MishTalk.com,

Tesla is renting parking lots to store thousands of vehicles. This helps explain the mass layoffs.

Tesla Cranking Out Cars, But to Where?

Please consider Tesla’s Storing Unsold Inventory In An Abandoned Mall Parking Lot

Parking lots full of Tesla vehicles are becoming impossible to ignore as the electric automaker seemingly can’t sell enough cars and trucks to match its rate of production. According to its own figures, the electric automaker produced 46,561 more vehicles than it delivered to customers during the first quarter of 2024. Where are all these cars going? Parking lots at its factories, malls and airports.

Recent drone footage from the automaker’s Fremont, California factory shows that cars are still rolling off the assembly lines at a high rate to fill the site’s lots. Things aren’t different on the other side of the Atlantic. Neuhardenberg, a small town in Germany of less than 3,000 residents, is complaining about the noise Tesla transporters are making as the company parks cars at the nearby regional airport.

Spotlight Germany

From the above link …

The residents of Neuhardenberg and the surrounding communities are annoyed by the traffic noise: many trucks loaded with Tesla cars drive across the streets to the airport where the cars are stored. It should continue like this at least until June.

Around Neuhardenberg the rural peace is over: columns of trucks from the Tesla factory in Grünheide thunder across the streets several times an hour. The reason: Since last summer, the nearby regional airport has been used as a parking area for Tesla vehicles.

The contract between Tesla and the airport operator runs until June 2024. It is still unclear whether it will be extended. The people of Neuhardenberg will have to continue to adapt to the trucks.

In Preparation for Next Phase of Growth

On April 15, I noted Elon Musk Fires 10 Percent of Tesla Workforce, Prepares for “Next Phase of Growth”

Preparing for Growth

Preparing for growth by firing working is like trying to lose weight by stocking the pantry with more potato chips.

Sales Must Be Imploding

On May 6, I commented Another Round of Mass Firings at Tesla, Sales Must Be Imploding

Tesla announced yet another round of layoffs today. News came in the typical way, an email starting “Dear Employee”. It seems “Dear Ex-Employee” would be more fitting.

FSD Vaporware

Ever since 2016, Musk has been promising “Full Self-Driving FSD” within a year.

Clearly this is 4-D chess … in an attempt to hide the vaporware. Full Self Driving (FSD) is nonexistent, but promised “next year”, every year since 2016.

Musk labels his offering as FSD right now despite numerous complaints from the Department of Transportation. The term is ridiculous at present.

If the Biden administration did not want this so badly, FSD may have been pulled.

Tiresome Lies

Musk statements are no longer best viewed as excessive hype, but rather tiresome lies.

For four years running, Musk promised to make 50,000 electric semis. Tesla delivered a grand total of 100.

The cybertruck is a joke. I expect musk will abandon it. 50,000 semis a year. Forget about it.

Elon Musk has bet it all on the EV taxi despite the fact its FSD is true vaporware.

Good News at Ford

Please note Ford Loses $132,000 on Each EV Produced

The good news was Ford sales were down 20 percent holding the losses to $1.3 billion.

BYD Unveils the “Shark” a Plug-in Hybrid Pickup Truck Built in Mexico

The Chinese automaker BYD (Build Your Dreams) announces a 700-mile range PHEV that will be built in Mexico, this year.

That 700-mile range includes the gas engine. I do not have specks on the EV milage stand alone.

For discussion, please see BYD Unveils the “Shark” a Plug-in Hybrid Pickup Truck Built in Mexico

Meanwhile, Back in Mexico

Back in Mexico, Tesla, Ford, Nissan, and other automakers have announced the construction or expansion of facilities.

Despite everyone rushing to Mexico to build the cars and Trucks that we need to reduce fossil fuel consumption, Biden is going to quadruple taxes on them.

Let’s see how good these vehicles are before we go gaga over them. But at least they aren’t vaporware.

Here’s the final irony Biden Wants EVs so Badly That He Will Quadruple Tariffs on Them

As a result, US consumers will overpay so much, that few people will want them despite huge subsidies. This is why you lose $132,000 on each EV.

Tyler Durden Thu, 05/16/2024 - 11:05

'Brothers Forever': Putin, Xi Agree That Deepened Ties Project Stability Against West's 'Unilateral Hegemony'

Zero Hedge -

'Brothers Forever': Putin, Xi Agree That Deepened Ties Project Stability Against West's 'Unilateral Hegemony'

Russian President Vladimir Putin is in Beijing visiting his Chinese counterpart Xi Jinping on the occasion of the 75th anniversary of the establishment of diplomatic relations between the two countries.

On the first day of the two-day state visit, which includes top Russian defense and security officials, Putin referenced Russia being "brothers forever" with China and Xi. He quoted from a 1940s song, saying "The event is dedicated to the 75th anniversary of the establishment of diplomatic relations. There is a famous song from that time, it was created 75 years ago, but is often sung today: there is a quite famous line in it: 'Russian and Chinese are brothers forever'.

Via Reuters

"I am sure that we will continue to strengthen the fraternal spirit of the harmonious Russian-Chinese partnership," he emphasized. Xi in response hit upon the 'old friend' theme, and was quoted in Xinhua as saying, "China is ready to work with Russia to stay each other’s good neighbor, good friend and good partner."

As expected, the two presented the Russia-China relationship as a stabilizing force for the region in the world. Speaking a their joint press conference Thursday, Xi said, "China is willing to … jointly achieve the development and rejuvenation of our respective countries, and work together to uphold fairness and justice in the world."

While not naming the United States directly, Xi said that the two countries will grow closer and press on in the face of rising hegemony. XI also said they do no seek to target any third party, and expressed hope that the war in Ukraine would be solved peacefully.

One interesting area of clear agreement was the rejection of foreign military blocs in the region. Putin condemned what he called "closed alliances in the region" - which appeared a reference to to the AUKUS pact of Australia, the United Kingdom and the United States.

Xi agreed, telling a press conference that "In today’s world, Cold War mentality is still raging. Unilateral hegemony, bloc confrontation, and power politics pose a direct threat to the entire world and the security of all countries."

The Chinese leader urged an "immediate" end to Israeli-Palestinian conflict based on a two-state solution and also addressed Ukraine: "China hopes for the swift restoration of peace on the European continent and is ready to continue its constructive role."

He said this can come about through a "new, balanced, effective and stable security architecture." Relatedly, the two leaders issued a fresh joint statement which blasts Western imposed restrictions that "obstruct the development of free trade, negatively affect global chains of production and retail."

On US-led sanctions, the statement said: "The sides condemn the shameless actions, undertaken in circumvention of the UN Security Council, which violate the UN Charter and international law, which obstruct the access to justice, as well as measures that contradict the WTO rules." It underscored, "Russia and China decisively oppose this."

The two leaders again upheld the Russia-China relationship as fundamentally "based on the multipolar realities and international law" in a swipe at the West which both Putin and Xi have long deemed hegemonic.

At one point Putin also praised efforts of the two at bypassing the US dollar, saying "A powerful impetus to expand our trade flows was given by our timely joint decision to ensure that transactions are conducted in national currencies. As of today, 90% of all payments are made in rubles and yuan."

* * *

Remember, Blinken was just in Beijing earlier this month, and of course with comparatively very little red carpet fanfare. While there he strongly warned against China's backing Russia's defense industrial sector, immediately after which new US sanctions were unveiled...

Tyler Durden Thu, 05/16/2024 - 10:50

Decarbonization: Opportunities Exist to Improve the Department of Energy's Management of Risks to Carbon Capture Projects

GAO -

What GAO Found The Department of Energy (DOE) obligated almost $1.4 billion across 654 research and development projects to support carbon capture, utilization, and storage and direct air capture technologies from fiscal years 2018 through 2023. DOE's Office of Fossil Energy and Carbon Management (FECM) administered $950 million (69 percent) of funds and 410 projects (63 percent). The Department of Energy's Obligations for Carbon Capture Projects by Office and Project Type from Fiscal Years 2018 through 2023 Based on a review of DOE documentation for a nongeneralizable sample of 40 projects, GAO identified several practices, such as risk reviews, that DOE offices used to manage risks. However, FECM—responsible for the majority of projects, including 25 in GAO's sample of 40—engaged in practices as discussed below that could undermine the likelihood of project success: Risk treatment. FECM did not clearly document risk treatment strategies for some projects—which can be important for project continuity given turnover in project managers. Additionally, FECM did not clearly document that project awardees reviewed project risks and treatment strategies for identified risks on a regular basis. Project selection. DOE guidance states it should only select projects that are technically acceptable. However, GAO identified one case where FECM selected a $14.6 million project even though its technical score did not meet FECM's threshold. FECM was unable to provide documentation as to why this project was selected. This project, which is ongoing, has since experienced cost overruns and delays, resulting in an additional $5.1 million in FECM funding and an additional 18 months to complete. It is unclear how widespread these practices are across all 410 FECM projects. However, by documenting risk treatment strategies and adhering to project selection guidance, FECM would provide greater assurances that selected projects are likely to succeed. This could also help reduce the risk to the over $12 billion appropriated for new carbon capture and direct air capture projects. Why GAO Did This Study In 2023, carbon dioxide (CO2), the most abundant greenhouse gas, reached a record high concentration in the Earth's atmosphere, according to the National Oceanic and Atmospheric Administration. Scientific assessments have shown that reducing CO2 emissions could help mitigate the negative effects of climate change. The federal government aims to achieve net-zero greenhouse gas emissions, including CO2, by no later than 2050. Carbon capture and direct air capture technologies have the potential to help the government meet the 2050 goal. The 2021 Infrastructure Investment and Jobs Act appropriated about $12 billion for DOE to administer new carbon capture and direct air capture projects. Congress included a provision in the USE IT Act for GAO to review federally funded carbon capture and direct air capture projects. This report (1) describes the funds obligated by DOE to support these projects from fiscal years 2018 through 2023 and (2) examines DOE's project selection and management. GAO analyzed laws, regulations, and guidance; DOE funding data; and DOE documents for a sample of 40 projects. GAO selected projects to range in type, funding, and stage. GAO also interviewed DOE officials.

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AT&T Gives Space Another Shot With AST SpaceMobile For Broadband Deal

Zero Hedge -

AT&T Gives Space Another Shot With AST SpaceMobile For Broadband Deal

Shares of AST SpaceMobile are surging following AT&T's announcement on Wednesday evening that it is partnering with the satellite provider to offer customers wireless service from space.

"AT&T* and AST SpaceMobile have entered a definitive commercial agreement to provide a space-based broadband network direct to everyday cell phones. This agreement extends until 2030," AT&T wrote in a statement. 

Bloomberg journalists were ecstatic to hear that Elon Musk's dominance in space-based communications now has a competitor. But how strong of a competitor is AT&T? Well, meh, their foray into space with its DirectTV partnership has been a disaster. 

Meanwhile, Musk's SpaceX has been working with mobile carrier T-Mobile to unleash space-based service for mobile phone users via Starlink's massive satellite contestation in low-Earth orbit. This service could come online later this year. 

The agreement between AT&T and AST will run through 2030. What's amusing is that AT&T and AST, soon-to-be Musk's new competitors, have to use the billionaire's SpaceX rockets to blast satellites into low-Earth orbit. The five satellites will be loaded on SpaceX rockets in Cape Canaveral, Florida, by mid/late summer, with launches shortly after. 

"Space-based direct-to-mobile technology is designed to provide customers connectivity by complementing and integrating with our existing mobile network," Jeff McElfresh, AT&T's chief operating officer, said in a statement.

McElfresh continued, "This agreement is the next step in our industry leadership to use emerging satellite technologies to provide services to consumers and in locations where connectivity was not previously feasible."

Shares of AST jumped 41% in the early US cash session. 

What's evident is that Musk dominates space-based communication via Starlink and rocket launches into space via SpaceX. 

As we've said before, Musk is becoming an uncancellable billionaire, and Democrats, with their dark money-funded non-governmental organizations, are trying everything in their power to crush him. Good luck with that one. 

Has anyone heard if Jeff Bezos can still get his rocket up?

Tyler Durden Thu, 05/16/2024 - 10:45

Traders Ditch Bullish Bets On Oil

Zero Hedge -

Traders Ditch Bullish Bets On Oil

By Tsvetana Paraskova of OilPrice.com

A continuously fading war risk premium and signs that regional oil markets look well supplied prompted traders to slash last week their bullish bets on crude oil at the fastest pace in over a year.

The net long position—the difference between bullish and bearish bets—dropped to a three-month low as money managers liquidated longs, also prompting technical selling that pushed Brent Crude prices to the low $80s and the U.S. benchmark, WTI Crude, to below $80 per barrel so far in May.

Portfolio managers were net sellers of crude and fuel futures and contracts in the latest reporting week to May 7, with the equivalent of 143 million barrels sold in the six most important futures and options contracts, according to data from exchanges compiled by Reuters columnist John Kemp.   

Brent and WTI saw the biggest drop in bullish positions, but there was selling in U.S. gasoline and European gas oil derivative contracts, too.

The sentiment among hedge funds and other money managers flipped from moderately to highly bullish in early April—amid flare-ups in the Middle East—to more bearish in early May, as the Iran-Israel tensions subsided and oil stock movements and inventories started to point to a looser market than previously thought.

In early April, hedge funds and other portfolio managers began to include a higher risk premium in their oil price trades as tensions in the Middle East spiked.

A month ago, the crude oil net long in WTI and Brent reached a six-month high in the week to April 9, driven by Brent—the international contract most exposed to geopolitical events. Brent Crude saw the net long position triple since early December, just before the Houthi attacks on commercial vessels in the Red Sea started adding higher geopolitical risk to oil prices.

In early April, analysts were not ruling out a run to $100 oil, but they noted that it would take further escalation in the Middle East with a direct threat to oil supply from the region for oil prices to spike to triple digits.

A month later, $100 oil looks like a long way off amid a waning war risk premium in prices. At the end of April, hedge funds and other money managers started dumping long positions in the most important petroleum contracts after Israel and Iran chose not to escalate the standoff in early April.

In addition, commercial crude and fuel inventories in the most transparent market, the U.S., built at the end of April and early May, prompting traders to dump more of their bullish bets as stockpiles across the markets worldwide looked more bearish than expected.   

As a result, long positions on crude oil—bets that prices will rise—were cut in the week to May 7 at the fastest weekly pace since March 2023, Ole Hansen, Head of Commodity Strategy at Saxo Bank, wrote this week in an analysis on the latest positioning in commodities.

Due to the liquidation of longs, the energy sector saw continued selling, which led to technical selling of the crude and fuel contracts. In all commodities, selling was concentrated in crude oil, gas oil, and RBOB gasoline, Hansen added.  

The combined net position in Brent and WTI slumped to 378,000 lots, the lowest in three months. 

“Speculators reduced their net long in ICE Brent significantly over the last reporting week. Speculators sold 60,125 lots to leave them with a net long of 260,648 lots as of last Tuesday, a move which was predominantly driven by longs liquidating,” ING commodities strategists Warren Patterson and Ewa Manthey wrote in a note this week.

“NYMEX WTI also saw a large amount of selling. Speculators cut their net long by 55,038 lots to 117,651 lots, the smallest position held since February,” they added.

European gasoil also saw a large amount of speculative selling over the week to May 7 as the market became more bearish towards middle distillates, the strategists say.

Tyler Durden Thu, 05/16/2024 - 10:25

Joe Biden Invokes Executive Privilege Over Special Counsel Recordings

Zero Hedge -

Joe Biden Invokes Executive Privilege Over Special Counsel Recordings

After the DOJ stonewalled over surrendering an audio recording of Special Counsel Robert Hur's interview with President Joe Biden over his handling of classified documents, the White House has invoked executive privilege to block House Republicans from obtaining it.

On Wednesday, Attorney General Merrick Garland requested that Biden assert executive privilege over the recordings following a subpoena from the House Judiciary and Oversight committees.

"Because of the President’s longstanding commitment to protecting the integrity, effectiveness, and independence of the Department of Justice and its law enforcement investigations, he has decided to assert executive privilege over the recordings," said White House counsel Ed Siskel in a letter obtained by The Hill.

The Feb. 27 subpoena requested copies of notes, audio files, video and transcripts related to Hur's probe, and had a deadline of March 7.

"Americans expect equal justice under the law and DOJ is allowing the Bidens to operate above it,"  House Oversight Committee Chairman James Comer (R-KY) said in an April statement. "Special Counsel Hur’s report outlined that classified documents Joe Biden stashed for years relate to countries where his family cashed in on the Biden brand."

In response to a request for audio of what author Mark Zwonitzer recorded while interviewing Biden, whose two memoirs he wrote, Assistant AG Carlos Felipe Uriarte said there is no need for the department to hand it over because the committees also have transcripts of the interviews.

"To go further by producing the audio files would compound the likelihood that future prosecutors will be unable to secure this level of cooperation," Uriarte wrote.

"They might have a harder time obtaining consent to an interview at all. It is clearly not in the public interest to render such cooperation with prosecutors and investigators less likely in the future."

Uriarte then reiterated that the DOJ has provided ample evidence to the committees.

Hur's 345-page report concluded that no charges should be brought against Biden due to cognitive decline.

"We have also considered that, at trial, Mr. Biden would likely present himself to a jury, as he did during our interview of him, as a sympathetic, well-meaning, elderly man with a poor memory," Hur wrote.

Hur cited 2017 conversations between Biden and Zwontizer, which Hur described as "painfully slow, with Mr. Biden struggling to remember events and straining at times to read and relay his own notebook entries."

Tyler Durden Thu, 05/16/2024 - 10:05

Saudi Arabia’s Wealth Fund Dumps Its JPMorgan Chase Stock; Warren Buffett’s Berkshire Hathaway Did the Same in 2020

Wall Street On Parade -

Saudi Arabia’s Wealth Fund Dumps Its JPMorgan Chase Stock; Warren Buffett’s Berkshire Hathaway Did the Same in 2020

By Pam Martens and Russ Martens: May 16, 2024 ~ Foreign central banks and sovereign wealth funds are required under U.S. law to report their publicly-traded U.S. stock positions no later than 45 days after the end of each calendar quarter, if those stock holdings reach $100 million or more. This is done on Form 13F, which is filed with the Securities and Exchange Commission (SEC). Sophisticated traders, algorithms at the big trading houses on Wall Street, and giant hedge funds mine that data to spot bullish or bearish signals they might be able to trade on. Unfortunately, for reasons we haven’t been able to unleash from the tight grip of the SEC over many years, some of the central banks and sovereign wealth funds with massive holdings in U.S. stocks do not report their holdings, or, the SEC is granting them confidentiality. One sovereign wealth fund that has been reliably … Continue reading →

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