Zero Hedge

Full-Face Veils Banned In Portugal After President Signs 'Burqa Law'

Full-Face Veils Banned In Portugal After President Signs 'Burqa Law'

Via Remix News,

Portuguese President António José Seguro has officially signed into law a bill banning face-concealing attire in public spaces, with the move seen targeting the full-face Islamic veils like the burqa and niqab.

Addressing the national debate, President Seguro framed the decision around human interaction, stating:

"The face should be considered a central element of human identity and communication."

However, the former Socialist Party leader acknowledged the controversial nature of the ban, recognizing it as a matter of significant cultural and social sensitivity.

The law was largely backed by the country's right-wing politicians and labeled the "burqa law" by Portuguese media.

It passed parliament in July with the votes of right-wing parties, with the left firmly in opposition.

The new legal framework strictly limits garments designed to hide one's identity in public spaces.

It also penalizes forcing individuals to cover their faces based on gender, religion, or age.

Violators face financial penalties ranging from €150 to €3,000.

There are, however, some exceptions.

Wearing items that cover the face, such as medical masks, professional/artistic gear, and extreme weather wear, are all examples of exceptions under the law.

Read more here...

Tyler Durden Thu, 08/27/2026 - 03:30

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

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

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

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

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

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

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

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

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

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

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

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

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

EU Election Roadmap 

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

Tyler Durden Thu, 08/27/2026 - 02:45

White Prisoners In UK Being Forced To Convert By Muslim Gangs: Report

White Prisoners In UK Being Forced To Convert By Muslim Gangs: Report

Authored by Steve Watson via Modernity News,

Britain's prisons are becoming recruitment grounds for Islamic gangs, with white inmates converting under threat of violence while the system frees terrorists early, jails protesters longer than child sex attackers, and racks up hundreds of millions housing foreign offenders.

New Ministry of Justice figures have exposed a stark reality inside England and Wales' jails. One in five Muslims behind bars is white - nearly four times the 5.8 per cent rate in the general population.

The number of white Muslim prisoners has climbed from 2,767 in 2022 to 3,218 by the end of June 2025, a 16 per cent rise. Overall Muslim inmates rose 14 per cent in the same period, from 14,037 to 16,051, now making up roughly 18 per cent of the prison population despite Muslims comprising just 6.5 per cent of the country.

Shadow Justice Secretary Nick Timothy laid out the numbers and the implications. "The percentage of Muslims who are white in our prisons is so vastly higher than in the general population it raises serious questions," he said.

"We know that experts have warned repeatedly about forced conversions taking place behind bars, driven by Islamic gangs. We need to be honest that something is not right here - Labour must urgently investigate and stamp out forced conversions in prison," he further urged.

Government advisers have documented the pattern for years. Jonathan Hall KC, the independent reviewer of terrorism legislation, described Islamist terrorists operating as "self-styled emirs" who controlled prisoners through "leadership and recruitment."

This included targeting "vulnerable or lonely prisoners, using guidance, sharing of food or material gifts" and "conversion backed by implicit or actual violence."

The London Bridge attacker Usman Khan, while inside, encouraged prisoners to take Muslim names and wear Muslim dress while trying to convert others.

Ian Acheson, who reviewed Islamist extremism in prisons, said conversions often occur "as a pragmatic response to who controls power and space in our prisons." In high-security jails especially, safety is at a premium and large numbers of violent young men seek belonging. "So Islam in this case has gang characteristics."

A 2023 government-commissioned review by Colin Bloom found gangs ordering new arrivals to become Muslim or face consequences. "Failure to identify as a Muslim meant that at best the new prisoner would be denied 'protection' from the dominant Muslim gang on that wing, or at worst the new prisoner would be subjected to violence and intimidation from that same gang."

A lawyer who regularly visits top-security prisons reported the process starts almost immediately. "This is something which will happen hours after arriving on a wing. Immediately they arrive in prison they slot into the gang hierarchy. In some cases there are entire floors dominated by Muslim gangs."

Some conversions are opportunistic - "convenience Muslims" seeking extra time for prayers or better halal food. Others are coerced. Qurans left on beds carry a clear message.

The Ministry of Justice insists it does not tolerate intimidation or faith-based coercion and claims prisons act swiftly. Yet the numbers keep rising, and there are now 140 Muslim chaplains compared with 87 for the Church of England.

This is the same prison system that continues to house thousands of foreign national offenders at enormous cost to the British taxpayer.

Figures show 10,487 foreign national offenders costing £629 million a year - money that could fund 16,500 police officers or 15,000 NHS nurses.

Albania tops the list, followed by Ireland and Poland. Deportations remain slow, tangled in missing documents, uncooperative origin countries, and European Convention on Human Rights claims.

Reform UK's prisons adviser Vanessa Frake called the bill "staggering." She noted the drawn-out process: discarded passports, slow diplomatic correspondence, refusals by origin countries, and Article 8 family-life claims. Even a deal to return 200 Albanian prisoners came with conditions and lower daily payments to Albania than the UK pays to keep them.

While foreign offenders and Islamist networks embed inside the system, the authorities have shown a different urgency when it comes to early release.

Zahid Iqbal, convicted in 2013 for plotting to bomb an Army base using an Al-Qaeda manual, was approved for release three years early despite previous non-compliance and warnings from prison and community managers.

Colin Sutton, Reform UK's crime adviser, called the decision "baffling." "This wasn't a guy in his bedroom cooking something up. This was somebody who arranged training. He had links with al-Qaeda. He was a proper terrorist."

Labour's broader early-release schemes have accelerated the emptying of cells to manage overcrowding. Thousands of offenders, including those convicted of violence, have been freed earlier than previous tariffs allowed. Even after partial pauses and exclusions for certain sex offences, the direction of travel remains clear: capacity management takes priority over consistent public protection.

Contrast that with the treatment of British citizens who protest the consequences of mass migration or speak out online. Lucy Connolly, already imprisoned for a single X post after the Southport attacks, faced the threat of recall to prison for reposting a satirical comment about Donald Trump and Keir Starmer. Probation officials treated the joke as "inciting violence" after an anonymous complaint.

In Essex, protests outside an asylum hotel housing Ethiopian migrant Hadush Kebatu erupted after he sexually assaulted a 14-year-old girl and a woman. Kebatu received 12 months. British protesters involved in the subsequent disorder received far longer terms.

Charlie Land got 32 months. Jonathan Glover got 30 months. Lee Gower, a local father and youth football coach, received two years and nine months. Other locals drew sentences of 22 to 33 months. Combined custodial terms for several of them exceeded 17 years - longer than the perpetrator who triggered the unrest.

 

Judges stressed that violence against police is unacceptable. Yet the sentencing disparity is unmistakable. Locals reacting to a sexual assault on a child by a small-boat arrival spend more time inside than the man who committed the assault.

Meanwhile white prisoners report pressure to convert for survival, foreign national offenders cost hundreds of millions, and convicted terrorists walk early under capacity rules.

Prisons reflect the wider failures of open borders and selective enforcement. Gangs exploit the vacuum. Vulnerable inmates adapt or suffer. Taxpayers foot the bill.

Ordinary Britons who notice and object face the sharp end of the law. The figures on white Muslim prisoners are not a statistical curiosity. They are the measurable result of a system that has lost control of its own institutions.

Tyler Durden Thu, 08/27/2026 - 02:00

The Penal Leviathan: What Wacquant And Rothbard Reveal About Modern Punishment

The Penal Leviathan: What Wacquant And Rothbard Reveal About Modern Punishment

Authored by Luc Lelièvre via Mises Institute,

Loïc Wacquant and Murray Rothbard come from completely different worlds. Wacquant, in Punishing the Poor (2009), analyzes how modern states manage marginalized populations through policing and incarceration. Rothbard, in The Ethics of Liberty (1982), argues that the state is a monopoly of coercion and that real justice means restitution to victims rather than punishment imposed by the government. At first glance, they seem to have nothing in common. Yet, when you look closely at what each says about crime and punishment, they describe remarkably similar institutional dynamics: a penal system that does not exist to deliver justice but to maintain political power, control vulnerable communities, and satisfy the public's desire for punishment.

Wacquant argues that modern punishment targets not crime itself but people with low incomes. In Punishing the Poor, he writes that "it is not so much crime that is being fought, but the poor themselves." He attributes this dynamic to welfare retrenchment and what he interprets as neoliberal restructuring. This is Wacquant's interpretation. My purpose here is not to defend or refute it, but to summarize his institutional analysis and compare it with Rothbard's critique of state power. Wacquant's central point is that the penal system expands as social protections shrink, turning prisons into warehouses for people pushed out of the labor market. He portrays the United States as an expansive apparatus of social control in which punishment falls primarily on street crime while much white-collar wrongdoing is managed through administrative and legal processes.

Rothbard approaches the issue from a different angle. For him, crime is fundamentally an aggression against a person or their property. Justice should repair the victim. That means restitution - returning what was taken, plus a penalty for the harm done. In Rothbard's view, prison is a double injustice. It fails to compensate the victim and forces taxpayers to pay for the criminal's room and board. As one Mises Institute essay summarizes, "the victim receives nothing and is then 'robbed' once more through taxes to feed and house the criminal." Rothbard sees the prison system as wasteful, immoral, and fundamentally misaligned with justice. His alternative is clear: restitution, even if it must be paid through supervised work when the offender has no money.

Rothbard's critique is not only moral but also economic. In his landmark article "Crime and Punishment: An Economic Approach" (1968), Gary Becker reached a similar conclusion from a different perspective. Every sanction carries costs as well as benefits, and incarceration is among the most expensive. If restitution, fines, or compensated labor can deter crime while restoring victims, prison becomes difficult to justify except for dangerous offenders. Becker's analysis complements Rothbard's argument by showing that restitution is not merely ethically preferable - it is also economically superior.

Wacquant and Rothbard share an understanding of the state's role. Wacquant views the penal state as a bureaucratic arm of what he calls neoliberal governance, used to control marginalized populations. Rothbard views the penal state as a predatory institution that thrives on coercion. Both agree that the penal system tends to neglect victims, expand state power, and generate political legitimacy rather than genuine justice.

Their agreement becomes even more striking when viewed through the lens of institutional incentives. A penal bureaucracy does not merely administer justice; it sustains a network of police agencies, prosecutors, correctional officers, prison contractors, and public budgets, all of whose continued existence depends on the expansion of penal institutions. Restitution threatens this logic by shifting attention from the state to the victim. A system centered on repairing private harm requires fewer bureaucracies and leaves less room for political theater. From this perspective, incarceration persists not merely because citizens demand punishment, but because governments have institutional incentives to provide it.

René Girard, in Violence and the Sacred (1972), helps explain how punishment operates. Girard argues that societies have always used scapegoats to relieve social tension. In modern times, the criminal becomes that scapegoat, and the prison becomes the altar. As one Mises Institute essay notes, "the real product of the penal system is collective catharsis." Punishment is not a rational policy, it is a ritual. This is why voters demand harsher penalties even when prisons fail. This is why mass incarceration persists despite its cost and lack of results. Punishment satisfies a symbolic need, not a practical one.

Girard also helps explain why governments find this ritual politically useful. If societies repeatedly seek symbolic victims to restore social cohesion, the state becomes the institution that organizes and legitimizes those sacrifices. Public fear creates demand for punishment; political institutions supply it. Rothbard exposes the institutional side of this relationship, while Girard reveals its anthropological foundation. Together, they show how emotional expectations and bureaucratic incentives reinforce each other, enabling the penal system to expand even when it fails to reduce crime or compensate victims.

This is where Rothbard offers something Wacquant does not: a way out. Restitution replaces the sacrificial logic of punishment with a logic of repair. It shifts the focus from the offender to the victim, closes the moral account rather than leaving it open, and satisfies the need for justice without feeding the bureaucratic machine. In To Serve and Protect (1990), Bruce Benson shows that pre-state legal systems, such as Anglo-Saxon weregild, relied on restitution to prevent feuds and maintain peace. These systems worked because they focused on compensation rather than punishment.

Wacquant advocates "radical penal minimalism," a model that narrows the scope of punishment while preserving its democratic legitimacy. Rothbard calls for a justice system based on restitution rather than incarceration. Girard calls for an end to sacrificial violence. Benson shows how restitution can be implemented. Becker argues that incarceration is often less economically efficient than restitution, fines, and other alternative sanctions.

Despite their profound philosophical disagreements, all five raise serious doubts about the effectiveness and legitimacy of a prison-centered model of justice. Becker questions its efficiency. Benson presents historical alternatives. Girard exposes its sacrificial logic. Wacquant reveals its bureaucratic expansion. Rothbard offers restitution as a principled alternative.

The penal Leviathan will not disappear through abolitionist slogans or bureaucratic reforms. It will disappear only when justice ceases to be a ritual of punishment and becomes a process of repair. That requires reexamining the assumption that crime should be understood primarily as an offense against the state rather than as an injury to identifiable victims. Once the victim again becomes the central figure in justice, restitution naturally replaces punishment as the primary objective.

As long as governments monopolize punishment, they retain incentives to expand the penal apparatus, regardless of its effectiveness. Restitution reverses that logic. It limits bureaucratic power, restores the victim to the center of justice, and transforms punishment from a political ritual into a genuine process of moral and legal repair. Whether approached through sociology, economics, anthropology, or libertarian political philosophy, the victim - not the state - emerges as the indispensable starting point for any coherent theory of justice.

Tyler Durden Wed, 08/26/2026 - 23:33

Soda Purchases Slumped 13% After SNAP Sugary Drink Restrictions

Soda Purchases Slumped 13% After SNAP Sugary Drink Restrictions

Soda purchases fell about 13 percent among Supplemental Nutrition Assistance Program (SNAP) beneficiaries after 10 states restricted purchases of sugary drinks with SNAP funds in 2026, a study found.

SNAP restriction waivers banned non-nutritious items like soda and candy to ensure that taxpayer dollars are directed toward nutritious options that improve health outcomes, the U.S. Department of Agriculture stated on its website.

The August study from the National Bureau of Economic Research - not yet peer-reviewed - evaluated the immediate effects of SNAP food restriction waivers in 10 states that implemented the bans.

Researchers used a Nielsen consumer dataset of about 5,000 SNAP households from July 2025 to June 2026.

Before the ban, the average SNAP household bought about 185 ounces of soda per month. That’s about 15 cans. The 13 percent drop is about 24 ounces, or two cans less per month.

Purchases of energy drinks also decreased by 4 ounces per household per month.

Interestingly, as Sylvia Xu reports for The Epoch Times, the study found that even households having enough cash to offset the restrictions reduced soda consumption by 18.5 percent, down 40 ounces per month.

When states labeled soda as an unapproved purchase, it acted as a powerful psychological signal, according to the report.

Arkansas shelf tag...

Instead of bypassing the ban with cash, families reconsidered their habits.

The policy changed what they viewed as appropriate foods to buy, leading to a significant drop in overall soda purchases, according to the study.

These findings indicate that simple administrative restrictions can effectively steer dietary choices and potentially improve public health outcomes, the researchers concluded.

Texas shelf tag...

However, it’s not clear how big the impact on sugar consumption will be.

A similar study in 2024 predicted a decline of up to 20 percent in soda purchases when the soda bans went into effect, but also forecast a 7 percent increase in juice consumption.

That would mean an overall decrease of just 7 percent in the intake of sugar from beverages.

Data on the current level of juice consumption by SNAP users is not yet available.

In fiscal year 2025, SNAP distributed $102.6 billion to nearly one in eight Americans, more than 42 million people. That’s about $2,400 per person per year.

Until this year, those funds could be used to purchase nearly all foods except for alcoholic beverages and hot prepared foods.

As of August, 23 states have implemented SNAP restriction waivers and prohibit recipients from purchasing junk food such as beverages and candy.

This is the first time in the program’s history that the Department of Agriculture has granted waivers allowing states to restrict SNAP benefits.

Tyler Durden Wed, 08/26/2026 - 23:00

Nvidia Rises After Solid Earnings, Reversing Margin Concerns As Company Guides To 70% 2028 Revenue Growth

Nvidia Rises After Solid Earnings, Reversing Margin Concerns As Company Guides To 70% 2028 Revenue Growth

Update (5:10pm): NVDA stock is very volatile, and after sliding 3% at first on solid earnings but weak margin guidance, the stock has since recovered and is up over 5% as the earnings call begins, on the following comments from Jensen Huang:

  • *NVIDIA CFO SAYS SEEING DEMAND ACCELERATION EVEN AT OUR SCALE
  • *NVIDIA CFO SAYS REVENUE TO GROW ABOUT 70% IN FISCAL 2028
  • *NVIDIA CFO SAYS SEEING DEMAND ACCELERATION EVEN AT OUR SCALE

As Bloomberg notes, Amazon’s commitment to use a lot more Nvidia products and a strong prediction for growth in revenue of about 70%, well above whispers of about 40-50%, next year has shoved aside the naysayers. The 2028 guidance, which came unexpectedly and was intended precisely the spark a buying spree in the stock, did just that, and has pushed the shares about 5% after hours. 

* * * 

Earlier:

In our preview of NVDA earnings we said that "Nvidia will beat FQ2 (July) revenue estimates by approximately $3-4 billion, with revenue potentially reaching $94-95 bn. The stock, however, will not respond to the beat.... recall revenue guidance has beaten Street consensus by an average of 4% over the past four quarters, while the stock has traded down 3%/5% on average over the subsequent 7/30 days." It seems we were we right: despite blowout beats on the top and bottom line, the stock is sliding after hours, in what will be the 6th of the past 7 earnings reports the stock has tumbled despite beating bigly. 

Here is what NVDA just reported for Q2: 

  • Adjusted EPS $2.22, beating est $2.09
     
  • Revenue $96.22 billion, beating estimates of $92.38 billion
    • Data center revenue $89.02 billion, beating estimate $85.86 billion
    • Hyperscale Revenue $48.71 billion, beating estimate $43.55 billion
    • AI Clouds, Industrial, & Enterprise revenue $40.31 billion, missing estimate $41.96 billion
    • Edge Computing revenue $7.20 billion, beating estimate $6.61 billion
    • Compute & Networking revenue $88.30 billion, beating estimate $84.69 billion
       
  • Adjusted gross margin 75%, in line with exp. 75%
  • Adjusted operating expenses $8.23 billion, below estimate $8.32 billion
  • R&D expenses $7.05 billion, above estimate $7 billion
  • Adjusted operating income $63.96 billion, beating estimate $61.19 billion

While revenue numbers were impressive, don't forget the circular financing.  Almost half of the company's record $96BN in revenue, or $40.3 BN, came from hyperscaler customers who can't fund their own buildout without outside capital, and without Nvidia handing them cash to buy its own products. As we have extensively reported, Nvidia sells the chips and simultaneously guarantees the leases and invests in the builders so the orders keep coming, helping create a massive $3 trillion off-balance sheet funding hold. Two of the companies which are supposed to generate revenue in the AI ecosystem, OpenAI and Anthropic, both lost gobs of money last year. Both are heading to IPO to raise more cash to keep buying.

Looking ahead, the company shared the following Q3 Guidance

  • Revenue $108 billion (+/- 2%), beating estimate of $104 billion; the company also said it does not assume any Data Center compute revenue from China in its outlook.
  • Gross Margin 73.5-74.5%, missing estimates of 75%
  • GAAP and non-GAAP operating expenses are expected to be approximately $9.2 billion and $9.0 billion, respectively.

While the guidance was solid, and well above the sellside, it may not have been solid enough with some buysiders throwing around numbers as high as $109 billion. 

Commenting on the quarter, CEO Jensen Huang said that “AI has reached its inflection point. It’s doing useful work. Its tokens are productive and profitable. Now, compute is revenue. And demand is accelerating. This time last year, one lab alone was driving the buildout; today, we have a golden age of new AI labs and startups, multiple frontier labs scaling in parallel, a thriving open-model ecosystem and physical AI coming online — with strong momentum across the U.S. and around the world. The AI infrastructure buildout is at full steam. Vera Rubin, now in full production, was built to power exactly this moment.”

Nvidia’s latest quarter was still about the Blackwell Ultra. The company said its 117% jump in Data Center revenue was driven by the ramp of Blackwell Ultra infrastructure. The extremely expensive Vera Rubin is next (recall "Nvidia's Vera Rubin Rack Will Cost $7.8MM: Here's What's In It"). Nvidia built inventory to prepare for Rubin’s introduction in the fiscal third quarter, while saying the new platform is now ramping into full production. That means the $108 billion revenue outlook Nvidia just gave investors is the first quarter where Rubin should begin contributing meaningfully to sales.

The other problem is that Vera Rubin needs massive amounts of memory at a time when memory prices, unlike a year ago, are absolutely stratospheric.

Which bring us to the next point: Nvidia forecast a margin between 73.5% and 74.5%, versus analyst estimates of about 75% and estimates as high as 76.5%. Needless to say, that won’t help worries about increasing component costs, especially after the company is raising prices on many of its customers.

To be sure, there is a growing focus on Nvidia’s gross margin, which is where competition is starting to manifest in the form of more aggressive pricing cuts.  Recall that Nvidia’s recently told customers its prices are going up because of costs; so the questions about whether it can maintain the 75% margin level it’s guided to will continue.

Another concern, and a reason why the stock is dumping: Nvidia’s future supply commitments have more than doubled in a single quarter,  jumping to $279 billion from $119 billion. The reason, as Bloomberg notes, is striking: Nvidia says the increase is primarily related to securing memory. These aren’t costs already incurred, but commitments to suppliers to lock in the components and capacity needed to meet AI demand over the next several years. Nvidia has $92 billion committed for the rest of this fiscal year, $87 billion for FY28 and $88 billion for FY29

And while most concerns focus on the income and cash flow statement, according to Vital Knowledge, this is going to be the most talked about part of the Nvidia report: "Accounts receivable was $63.1B with 60 days sales outstanding (DSO), up from 45 days sequentially, due to extended payment terms on large, multi-quarter agreements with certain investment-grade customers."

It appears that we may not even get to the off balance sheet bubble (discussed overnight): net working capital alone is starting to be a huge issue for the company and its clients.

China also remains a giant question mark for Nvidia. There have been signs that Beijing is allowing limited purchases of its chips by Chinese companies. That’s after the Asian nation had earlier retaliated against Washington’s restrictions with its own soft of imports of US technology. Nvidia’s Huang was able to get Washington to ease some restrictions on exports, in the form of limited licenses to some companies in China willing to take older Nvidia products. 

The net effect persists: Nvidia is largely locked out of the biggest market for semiconductors, a country that’s actively trying to foster competition for its products, and judging by recent performance from open-weight models, is succeeding. 

And lets not forget growing competition: OpenAI is just one of a growing group of customers and rivals who are touting their own chip efforts and claiming parity or performance leads over Nvidia’s offerings. Until there’s enough supply to fill every order, that remains a moot point. But there are growing concerns that Nvidia’s utter dominance is facing more serious challenges.  As reported earlier, OpenAI said its new Jalapeño processor outperformed Blackwell systems in two areas in its tests. So does specialized AI compute eventually chip away at Nvidia’s dominance, or does explosive growth in overall compute demand leave room for everyone? 

Putting it all together, despite another blowout quarter, the stock is once again down on results in what is becoming a habit...

... and it is only a matter of time before increasingly impatient investors start asking just what will it take for the stock to actually go up on earnings, for once.

Tyler Durden Wed, 08/26/2026 - 22:35

US Special Forces Conducting Operations Inside Ecuador

US Special Forces Conducting Operations Inside Ecuador

Authored by Kyle Anzalone via Antiwar.com,

An Ecuadorian official confirmed that US Green Berets were engaged in anti-cartel operations. Earlier this year, President Donald Trump formed a coalition, dubbed Shield of the Americas, that was aimed at combating cartels in Latin and South America.

A local official told AFP and UPI that US special forces have been conducting direct operations against suspected cartels in the Esmeraldas province. "We are with the 7th (Special Forces) Group of the US Army. We are working together in the fight against narcoterrorism," Esmeraldas Provincial governor Juan Jaramillo said last week.

Ecuadorian Defense Minister Gian Carlo Loffredo added that two US warships were operating in the region.

In March, President Donald Trump said that a dozen Latin American nations had enlisted in the Shield of the Americas coalition to fight cartels in the region. Ecuador is a member of the bloc.

That month, the US and Ecuador conducted joint military operations against alleged drug targets. "The operations are a powerful example of the commitment of partners in Latin America and the Caribbean to combat the scourge of narco-terrorism," U.S. Southern Command said following the raid.

However, The New York Times reported that the target of the operation was a dairy farm, not a drug lab. "The military strike appears to have destroyed a cattle and dairy farm, not a drug trafficking compound, according to interviews with the farm's owner, four of its workers, human rights lawyers, and residents and leaders in San Martín," the outlet explains.

The military activity in Ecuador is part of Operation Southern Spear. Trump ordered the Department of War last year to expand military operations in Latin America to curb narcotics trafficking to the US.

The US has conducted dozens of airstrikes against suspected drug boats in the Caribbean Sea and Eastern Pacific Ocean. The operations have killed over 200 people and over 60 vessels.

The White House has asserted that the targeted boats are operated by narco-terrorists attempting to smuggle fentanyl into the US. However, the administration has not offered the American people any evidence to support the claim.

Additionally, some evidence suggests that at least some of the vessels that have been attacked were not involved in narcotics trafficking. The family members of several victims have said their slain relatives were fishermen.

Last month, The Washington Post reported reviewing a DEA assessment that found the strikes on vessels operated by alleged narco-terrorists have not changed the amount or price of cocaine entering the US. US military officials also admitted to Congress that the operations have had no impact on purity.

Tyler Durden Wed, 08/26/2026 - 22:35

How Many $2,500 Foldable iPhones Will Apple Ship In Year One? IDC Has The Answer

How Many $2,500 Foldable iPhones Will Apple Ship In Year One? IDC Has The Answer

Apple is set to unveil its first foldable iPhone at the company's September 9 product event at 1300 ET.

Ahead of what could be Apple's biggest handset launch in many years, technology market research firm International Data Corporation, better known as IDC, issued a new forecast estimating just how many foldable iPhones Apple could ship during the device's first year.

Bloomberg first reported IDC's estimate that the $2,500 foldable iPhone could generate more than 10 million shipments during its first year.

Apple's entry into foldable smartphones, a segment of the handset industry first pioneered commercially by Chinese manufacturer Royole with the FlexPai nearly a decade ago, is forecast to help the foldable-phone market grow 12.6% this year, followed by an 18% increase next year. The iPhone maker could capture about 40% of global foldable shipments by 2027, IDC said.

Samsung Electronics launched the first mainstream foldable smartphone seven years ago. The complexity of these handsets commands premium pricing, making the category an attractive revenue stream.

Apple's foldable iPhone launch comes as IDC expects global smartphone shipments to decline by a record 16.7% this year. The industry is battling surging costs tied to a shortage of memory chips.

"The components that make AI possible are the same ones in short supply, and their cost is being passed straight through to the shelf," IDC's Francisco Jeronimo said.

Jeronimo added, "The era of the cheap smartphone has ended."

Polymarket: 

//--> //--> Will Apple release a foldable iPhone before 2027?
Yes 93% · No 8%
View full market & trade on Polymarket.

However, consumers have not necessarily shunned expensive handsets, in part because carrier financing now commonly spreads payments over 24 to 36 months.

A $2,500 foldable iPhone would cost about $104 per month over 24 months or $69 per month over 36 months, before trade-in credits.

Whether the expensive foldable iPhone becomes a smashing success will largely depend onconsumers'’ willingness to upgrade. Recent GSMA research found that consumers are keeping their smartphones for an average of three years.

For iPhones, research firm Counterpoint found that Pro model owners replace their devices after an average of 2.75 years, while buyers of standard models wait about a little more than 3 years. 

Tyler Durden Wed, 08/26/2026 - 20:30

Israel Developing Offensive Space Capabilities

Israel Developing Offensive Space Capabilities

Authored by Ioannis Vlahos via Antiwar.com,

Israel is currently prepared to begin development of offensive space capabilities, including systems designed to defend Israeli satellites from hostile spacecraft, and weapons (including lasers) capable of striking targets from space.

It is part of the Defense Ministry's multiyear budget plan for the space sector, which will include upgrading and expanding IDF (Israel Defense Forces) intelligence and communications capabilities. The plan will also dedicate a budget to support offensive space operations, which will focus on weapons designed to protect Israeli satellites as well as weapons designed to strike targets on Earth.

Defense Minister Israel Katz spoke earlier this summer about Israel's commitment to becoming the world leader in space-attack capabilities, a realm of warfare that has experienced a surge in Israeli military interest given its extensive use for intelligence gathering in Iran.

"One of the central goals that the prime minister [Benjamin Netanyahu] and I set is that we are recruiting the best minds," he said. "As of today, no country has the ability to mount attacks in space. We must be the leading country in the world with this capability."

"If we achieve this, it will ensure the advantage of deterrence, of the ability to attack, destroy, and all of the other matters versus our enemies with large resources."

Global space warfare development has been on the rise in recent years, and some speculate that Israel's recent activity is an effort to catch up with China and Russia, who have been testing their own offensive space capabilities. US President Donald Trump has also expressed his desire for America to do the same, by signing Executive Order 14369, "Ensuring American Space Superiority."

However, experts warn that Israel and others' offensive space weapon programs have increased proliferation concerns. Satellite miniaturization, falling launch costs, and the commercialization of the space industry have also allowed more countries to create their own space programs, and not all of them are peaceful. Furthermore, space weaponry not only threatens satellites and other non-military technologies operating in space, but the growing prevalence of and reliance on the latter will make cyberattacks all the more dangerous.

Tyler Durden Wed, 08/26/2026 - 17:40

Chinese Hackers Broke Into NASA, Federal Reserve, DOJ & Senate: FBI Announces

Chinese Hackers Broke Into NASA, Federal Reserve, DOJ & Senate: FBI Announces

The United States Department of Justice has on Wednesday announced US authorities thwarted a major state-sponsored hack which saw a temporary intrusion into NASA, the Federal Reserve, Senate, the DOJ, Department of Energy, and the Department of Health and Human services, along with four unnamed companies in the US and South Korea.

"Today we announced the disruption of a global botnet and hacking platform used by Chinese state-sponsored hackers to target U.S. critical infrastructure," said FBI Director Kash Patel.

"These tools were used by PRC cyber actors to hide the origin of their attacks. Thanks to the work of FBI San Diego, FBI Cyber Division, and DOJ partners, we seized adversary infrastructure and shut these platforms down," he added.

via Reuters

Domains utilized by two hacking platforms identified as "QScan" and "QTRouter" were seized by the DOJ in the large scale counter-cyberespionage operation.

Describing a pervasive botnet which was ultimately believed to be backed by Chinese state actors, The Wall Street Journal details that the "goal was to blend in with legitimate networking traffic, making the hacking activity hard to trace, federal officials say."

"The group exploited software vulnerabilities to launch cyberattacks against U.S. government agencies, power companies and hospital systems, and operated a worldwide network of hacked devices—known as a botnet—to conduct its hacking campaigns, according to Brett Leatherman, the Federal Bureau of Investigation’s top cyber official," WSJ continues.

As for the specific allegation that this had state backing, the DOJ press release states:

People’s Republic of China (PRC) state-sponsored group known as “QTFY,” employed by China-based Nanjing Xinjiuwei Network Technology Company, created and operated QScan and QTRouter.

The DOJ announcement additionally outlines efforts at concealment and 'plausible deniability' in the following:

QTRouter consists of these compromised IoT devices, as well as commercial proxy service devices and leased virtual private servers. QTRouter then serves as an “obfuscation network” – meaning it allows QTFY and other malicious cyber actors to conceal the PRC-origin of their computer intrusion activities because the malicious communications appear to originate from computers (such as those compromised by QScan) that are outside of the PRC and may even be local to the targeted networks. Because the seized domains were hard-coded into both the QScan and QTRouter malware and used for essential tasks such as communication and authentication, the court-authorized seizures made QScan and QTRouter inoperable. 

Neither Beijing's foreign ministry nor the Chinese embassy in Washington have officially responded to the allegations, and as has been the pattern in the past is likely to reject the US charge altogether.

Earlier this year Google was among those warning of imminent stepped-up Chinese and Russian targeting of US defense companies. 

Google's prior report seemed to preview some of the techniques on display in this latest hack. The report cited observations of "more China-nexus cyber espionage missions directly targeting defense and aerospace industry than from any other state-sponsored actors over the last two years."

//--> //--> //--> US imposes new sanctions on China by September 30?
Yes 21% · No 80%
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"But the hallmark of many operations has been their exploitation of edge devices to gain initial access," it said, referring to hardware components positioned at the edge of a network. "We have also observed China-nexus threat groups leverage ORB networks for reconnaissance against defense industrial targets, which complicates detection and attribution."

Tyler Durden Wed, 08/26/2026 - 17:20

You Know Things Are Bad When This Has To Be Referred To The DOJ...

You Know Things Are Bad When This Has To Be Referred To The DOJ...

Authored by Steve Watson via Modernity News,

Texas Governor Greg Abbott is escalating the fight against what he calls discriminatory religious facilities at two of the state's busiest airports.

After DFW Airport scrapped plans for more Islamic ablution stations under pressure, Abbott has referred both Dallas-Fort Worth International Airport and Houston's George Bush Intercontinental Airport to the U.S. Department of Justice, demanding investigation and corrective action over existing foot-washing stations and an adjoining prayer room.

"These ablution stations single out one subset of the population for special treatment based on religion," Abbott said. "They are not interfaith chapels open to all. They exist to benefit the Muslim population alone. Government-owned airports cannot favor one religion over all others."

In his letter to Attorney General Todd Blanche and Assistant Attorney General Harmeet Dhillon, Abbott noted that DFW has two such stations already operating and that IAH installed one facility plus an interconnecting prayer room stocked with copies of the Quran, prayer rugs, prayer beads, and a turbah.

He previously referred the airports to Transportation Secretary Sean Duffy, directed a review of state grants for possible revocation, and warned that if the facilities sit on city-owned property, Texas will pursue litigation for religious discrimination at taxpayer-funded sites.

"Airports can no more offer Muslim-only bathroom spaces than they can maintain white-only bathrooms," Abbott wrote. DFW abandoned plans for additional stations in Terminal D after the initial threat. Airport officials said they accelerated review due to public attention and determined the anticipated benefits might not materialize.

Houston Mayor John Whitmire defended the IAH facilities, saying they are open to all travelers regardless of faith and were funded by fees from international airlines rather than direct taxpayer grants.

Critics of Abbott's move, including the Texas chapter of CAIR, called it an anti-Muslim political stunt. Abbott and Texas leaders frame the issue differently: government-owned airports receiving public and federal funds cannot create spaces designed around one faith's ritual requirements while ignoring others.

This latest action fits a clear pattern of pushback against what many Texans see as the steady advance of parallel Islamic institutions and preferential accommodations across the state.

Residents in McKinney recently packed City Hall and voiced fierce opposition as the council approved a major expansion for the McKinney Islamic Association. The 5.5-acre site plan includes a large sanctuary, classroom building, and gym.

More than 150 speakers signed up for the marathon session that stretched past midnight. An Iranian Christian refugee told the council, "I'm a Sharia law survivor from Iran, and I'm here to tell you, this is a dangerous ideology you're allowing in the country."

U.S. Rep. Keith Self warned of risks including child marriage and honor killings under political Islam, stating the freedom to choose one's faith "does not exist in political Islam." The council still voted 7-0 to approve after staff confirmed the plan met zoning rules.

Public schools have also drawn outrage. Students from Humble ISD's Kingwood High School and Atascocita High School were bused to Centro Islamico, operated by IslamInSpanish in the Houston area, so they could "experience Islam."

The visit included a tour, halal lunch, observation of prayer, and presentations. Parents and online commentators noted the absence of similar taxpayer-funded trips to churches or other houses of worship, calling the episode one-sided indoctrination.

Congressman Keith Self has repeatedly highlighted existing Muslim-only enclaves operating as parallel societies. He pointed to the East Plano Islamic Center, which has functioned for years adjacent to police facilities, and a similar pattern in Irving.

"Sharia is alive, well, and operating in Plano, Texas," Self said. "This is not a hypothetical or future threat. It is here, now and operational."

He described these as de facto Sharia enclaves situated next to the law enforcement facilities meant to protect communities, calling the proximity a form of intimidation.

Texas authorities have also moved against unauthorized institutions. The Texas Higher Education Coordinating Board, at Abbott's direction, issued a cease-and-desist order to Texas American Muslim University (TexAM) in the Dallas area.

The school was operating without required state approval, marketing degree programs that included mandatory Islamic studies courses, and using the term "university" illegally.

Abbott stated Texas will not allow illegal educational institutions to operate and that legal action would follow noncompliance.

Taxpayer-funded venues have faced similar scrutiny. Epic Waters Indoor Waterpark in Grand Prairie, built with public sales tax money, advertised a private Eid event initially promoted as "Muslim only," complete with modest dress codes, halal options, and a prayer room.

After backlash the language was softened, but the episode reinforced concerns that public facilities were being reserved for exclusive religious use.

Taken together, the airport ablution stations, school field trips, city council approvals, unauthorized schools, exclusive events, and residential developments form a consistent picture.

Abbott's referral of the airports to the DOJ is the latest concrete step to enforce the principle that government facilities and public money cannot favor one religion. Texas under Abbott continues to treat equal application of the law as non-negotiable, rejecting special privileges that create two-tier systems on public property.

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

Tyler Durden Wed, 08/26/2026 - 17:00

Don't Trust The Midterm Polls

Don't Trust The Midterm Polls

Authored by Victor Davis Hanson via The Epoch Times,

This is a lightly edited transcript of an Aug. 24 segment of the "Victor Davis Hanson: In His Own Words" podcast.

Let's have a periodic check on the status of the midterms that we're now less than 80 days away from. The Democrats are riding high. They feel that historical trends, i.e., 39 out of the last 41 midterms, the party in the White House loses seats, and there's not very many seats Republicans can afford to lose, and they may lose the House and Senate.

They're already, I guess you'd call it, measuring their drapes, but in the sense that they're already explaining how they're going to go after the Trump family, the Trump family associates, cryptocurrency concerns, any hangers-on, people going to the Middle East and investing. They're gonna open it wide open.

These are the people, of course, who never investigated the Biden family or Hunter Biden. That's no excuse if there's culpability, but nonetheless, you can count on a two-year investigation of Donald Trump and a never-ending impeachment inquiry, and the end of the MAGA agenda should he lose the House and the Senate.

Donald Trump is strangely confident. He now has finally hit on a strategy that he feels will work. Earlier, I called it the "Anaconda Strategy," the idea that he is squeezing a debilitated Iran. In other words, the kinetic 40 days of bombing have left the nuclear military-industrial complex in shambles.

And this time, he's not just blockading, he's not just having an embargo on goods. He is not just freezing the bank accounts of Iranian grandees. He's not just debanking the entire country. He's going to third parties and saying, "You and China and Russia and Europe have been trading with this country even while we were bearing the burden of defanging a potential nuclear renegade nation, and we're going to isolate you. We're not gonna do business with you if you do business with Iran."

And the Iranians now are crying foul. They're saying we're colonialists. But what I'm getting at, after all that military damage from Feb. 28 for the next 40 days, and after all the blockades, they're not able to withstand a renewed squeezing.

And so, time is actually on our side.

The second part of this strategy is Donald Trump has now put the war on the back burner. He is saying that we don't need to have ground troops. We might not even go in and bomb them again unless they egregiously attack an ally of ours or one of our carriers or ships.

We have managed it now. The strait is mostly open, and whatever the status of the nuclear stockpile or enriched uranium of the theocracy, it's pretty clear they can't get at it.

Hamas, the Houthis, and Hezbollah don't seem to be getting money. They don't seem to have enough rockets to threaten the Gulf States or Israel, at least to get through their missile defenses.

And so, we're just going to concentrate, Trump thinks, on the economy.

So, what he is doing now is he and JD Vance are barnstorming the country, and they're starting to make headway. They're not worried about the polls that show a generic 7 percent Democratic advantage and betting odds and polls that say they're gonna lose the House because they looked at the recent primaries.

Abdul El-Sayed, the Democratic candidate for the Democratic senatorial seat in Michigan, was polling ahead 10 points, and he scarcely won by a point and a half.

Francesca Hong, the Wisconsin Democratic candidate for governor, was polling ahead 10 or 15 or 20 points. She lost and lost handily.

Mr. [Alexander] Vindman, who was running for Senate in Florida, was polling ahead. He lost to Ms. [Angie] Nixon, a democratic socialist.

So, what I'm getting at is the polls are worthless. And what we need to look at is what the status is right now.

The war is starting to wane. If it should end or if the Iranians crack in the next 60 to 70 days, that would be a spectacular achievement that Donald Trump - you know, we've tragically lost 17 Americans - but at a tolerable cost in blood and treasure, he ended a 50-year problem that seven presidents said was existential.

You could not allow Iran to have a nuclear weapon, and the pressure that he's put on them and the damage he's inflicted would probably, in the next year or two, prompt a renewal of internal opposition against a theocracy that is bleeding.

The second thing to remember very carefully is, as I said earlier, the redistricting, the red state redistricting and the Supreme Court prohibition on racial gerrymandering might give him an additional four or five seats.

But the most important developments are money and the agenda of the new Democratic Party.

Very quickly, Donald Trump has got a war chest of about $400 million, and he's now going to use it.

He says he's going to use it all in his political action committees to help save the Republicans in the midterms.

Elon Musk said that he is going to match dollar for dollar the Democratic oligarchic class that if they start to donate in great amounts to Democratic candidates.

So, the money issue probably favors also, like, the redistricting and maybe the course of the Iran war that could wane and be not an issue.

But the most important thing to conclude is the Democratic Party. No one thought that the Democratic socialists would ever try to absorb and even seem to succeed in absorbing the Democratic Party. I mean, Nancy Pelosi, Hakeem Jeffries, Chuck Schumer, they've all said they have no problem with the Democratic socialists.

It's a big tent party, and they're going to help them win their seats.

But the problem is, once you have the money and the effort and the attention, and you show what the democratic socialists are, like, defunding the Pentagon, defunding the police, opening the border, mass amnesties, warring on fossil fuels, isolationist foreign policy, the transgender issue reopened with biological men now by statute free to compete in women's sports. I could go on and on.

They even want to destroy the Senate and the Electoral College, not to mention packing the Supreme Court, ending the filibuster, and bringing in new seats in the Senate by admitting new blue states such as Washington, D.C., and Puerto Rico.

And so, what I'm getting at is, the more we learn about the democratic socialists, and the more that the Democratic Party feels they've already taken over the apparatus of the party and they're going to join them, or at least they're not going to oppose them, they're gonna be culpable or responsible for what these people say.

And they're saying all sorts of stuff, not just anti-Semitic venom, not just anti-Israel venom, but questioning the very legitimacy of the United States government, the way that our Founders created a legislative, judicial, and executive branch, the Declaration of Independence. Our entire traditions, they're saying, are flawed at their origins.

They got worse during our maturity, and now they're god-awful right now. That's not a winning message.

So, the midterms are very much up in the air.

Contrary to historical precedent, there's still a chance that the Republicans can save both the Senate and the House.

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

Tyler Durden Wed, 08/26/2026 - 16:20

US Universities Had Extensive Ties With Chinese Defense Research Labs, Air Force Study Finds

US Universities Had Extensive Ties With Chinese Defense Research Labs, Air Force Study Finds

Authored by Arthur Zhang via The Epoch Times,

Thirty U.S. academic institutions have until Aug. 31 to examine specified foreign research ties or risk losing eligibility for future federal research funding.

A model of a Chinese-made J-35A stealth fighter is displayed at an AVIC (China Aviation Industry Corporation) stand during the 15th China International Aviation and Aerospace Exhibition in Zhuhai, in southern China's Guangdong province on Nov. 14, 2024. Hector Retamal / AFP via Getty Images

Seven days after the Pentagon ordered the reviews, an Air Force-affiliated institute published a study cataloging 204 interactions involving U.S. institutions and laboratories at the center of China's defense research system.

The Aug. 24 study by the China Aerospace Studies Institute (CASI) found more U.S. institution-level interactions with China's Defense Science and Technology Key Laboratories than those involving institutions from any other country.

CASI describes the Defense Science and Technology Key Laboratories as China's highest level national laboratory network for military research. The contacts it identified ranged from academic visits and conferences to coauthored technical research and formal joint laboratories in fields including aero-engines, underwater sensing, hyperspectral target detection, advanced communications, and aerospace materials.

CASI described interactions between Western researchers and Chinese military laboratories as "at the very least problematic," saying even seemingly benign exchanges could give Chinese defense researchers access to knowledge and technology useful to the People's Liberation Army.

CASI Director Brendan Mulvaney told The Epoch Times that institutional collaborations-including joint laboratories, long-term partnerships, and mutual study or training agreements-were the most concerning because they represented sustained cooperation rather than one-off encounters.

The Pentagon's Aug. 17 order directs 30 U.S. institutions to review academic, financial, and research relationships with foreign entities of concern and report what action they have taken by Aug. 31.

The Pentagon did not publicly identify the schools. According to a list DefenseScoop obtained from a U.S. official, Harvard University, MIT, the University of California-Berkeley, Duke University, Penn State, the University of Texas at Austin, New York University, and the University of Southern California are among institutions on that list that also appear in CASI's records.

The Pentagon has not said that the relationships identified by CASI prompted the Aug. 17 notices.

Purdue and Beihang Built Joint Research Labs

In 2011, Purdue and Beihang formally established the BUAA-Purdue Joint Laboratory on Energy Systems and the BUAA-Purdue Joint Laboratory on Low Emissions Combustion.

Then-Purdue President France Córdova and Beihang President Huai Jinpeng signed the agreements.

The energy laboratory paired Purdue's computational modeling with Beihang's experimental capabilities. The combustion laboratory focused on low emission gas turbine combustors used in aircraft and power generation.

Beihang records also describe the two laboratories as formal joint research arrangements and say the universities discussed broader scientific research, teaching, and faculty and student exchanges.

Beihang later described the combustion laboratory within a research program that also undertook Chinese National Defense 973 projects, a state-backed basic research program supporting its defense science and technology.

CASI identified Beihang's thermal engineering department-which oversees a Defense Science and Technology Key Laboratory for aero-engine aerodynamics and thermodynamics-as having established a joint combustion research team with Purdue.

Beihang is now on the Pentagon's Section 1286 list of foreign institutions subject to tighter research security restrictions.

Harvard Listed by Chinese Defense University as Collaborator

The Harbin Institute of Technology (HIT), one of China's leading defense linked universities, currently lists Harvard among the international collaborators of its Center for Composite Materials and Structure.

The center works on aerospace structures, smart and composite materials, sensors, structural health monitoring, multifunctional nanocomposites, and related technologies, according to its research description.

CASI also cites an earlier HIT description saying its composite materials research institute had established an overseas joint laboratory with Harvard and maintained long-term exchanges and cooperation with other foreign universities.

HIT has been on the Pentagon's Section 1286 research security list since at least fiscal 2022 and was added to the Commerce Department's Entity List in June 2020 over its alleged efforts to use U.S. technology for Chinese missile programs.

Research Reached Underwater and Missile Fields

The links also extended into published technical research.

In 2017, researchers affiliated with the University of Houston and Embry-Riddle Aeronautical University joined researchers from Harbin Engineering University on a study of underwater wireless sensor networks.

The paper, published in Sensors, developed a method for accessing data through an underwater sensor network.

The authors included Houbing Song, then affiliated with Embry-Riddle; Albert M. K. Cheng of the University of Houston; and Xuefei Ma, who was affiliated with both Harbin Engineering University's College of Underwater Acoustic Engineering and its National Key Laboratory of Underwater Acoustic Science and Technology.

The author-contribution statement credits the U.S.-based researchers with experimental, analytical, and research work. Funding listed in the paper came from Chinese sources, including the National Natural Science Foundation of China, basic-research projects, and the China Scholarship Council.

CASI classified the work as research collaboration involving a Chinese defense laboratory in underwater acoustics.

Another collaboration reached into hyperspectral target detection.

A 2021 study coauthored by Ying Qu, listed with the University of Tennessee, Knoxville, developed a neural-network method for identifying anomalous targets in hyperspectral images.

One of Qu's coauthors was Xuemei Liu of Beijing's Space Vehicle Survival Technology and Effectiveness Evaluation Laboratory.

Researchers from that laboratory have separately published work on missile trajectory tracking, missile attack-and-defense simulations, and radar-seeker countermeasures.

CASI said the Beijing laboratory appears closely affiliated with a Chinese defense laboratory involved in ballistic-missile penetration technology.

Harbin Engineering University, like Beihang and HIT, is on the Pentagon's Section 1286 list.

Advanced Communications Contacts Continued Into 2025

Mulvaney said conference participation could also be consequential because of how common it is and how little scrutiny it has received compared with formal research collaboration.

Some contacts cataloged by CASI are more recent.

University of Houston professor Zhu Han delivered keynote speeches at the International Conference on Communication Software and Networks in China in both 2024 and 2025.

His 2024 keynote focused on federated learning and multi-access edge computing, technologies used to distribute artificial intelligence processing across communications networks and connected devices.

The conference listed China's National Key Laboratory of Electromagnetic Space Security among its technical sponsors.

Han returned as a keynote speaker at the 2025 conference, which again listed the laboratory among its sponsors.

CASI traces the laboratory to a predecessor known as the Defense Science and Technology Key Laboratory of Communications Countermeasures Technology.

The 2025 keynote roster also included Nian Fushun, identified by organizers as a chief scientist of test instruments at China Electronics Technology Group Corp. and its 41st Research Institute.

China Electronics Technology Group is a state-owned defense electronics conglomerate involved in radar, communications, electronic warfare, and other military technologies.

Han's University of Houston profile lists wireless networking, security, and data analysis among his research interests.

Pentagon Restrictions Take Effect

Beginning in fiscal 2026, Pentagon funds cannot be used for fundamental research involving collaboration with institutions on the department's Section 1286 list.

The restriction applies to grants, contracts, and other assistance to higher education institutions and bars Pentagon funded fundamental research from collaborating with, or using equipment from, listed entities. It also extends to employees of those institutions.

Beihang University, Harbin Engineering University, and Harbin Institute of Technology-the Chinese universities involved in several of the relationships identified by CASI-are on the list.

The 30 U.S. institutions notified this month must report their findings and any mitigation measures to the Pentagon by Aug. 31.

Tyler Durden Wed, 08/26/2026 - 15:45

Secret Service Aware Of Iranian Video Threat Against Barron Trump

Secret Service Aware Of Iranian Video Threat Against Barron Trump

Authored by Jill McLaughlin via The Epoch Times,

The U.S. Secret Service confirmed on Aug. 25 it is aware of a video aired by Iranian state-run media that appears to threaten President Donald Trump's youngest son, Barron, and places a $10 million bounty on him.

"The U.S. Secret Service is aware of the video and investigates anything that can be perceived as a threat toward our protectees," spokesman Nate Herring told The Epoch Times in an email. "Out of concern for operational security, we do not discuss matters of protective intelligence."

The three-minute video that first aired Aug. 24 alleges Trump's 20-year-old son is being monitored.

The video, titled "Where and how should we kill Barron Trump?" was produced by media entities affiliated with the Islamic Revolutionary Guard Corps (IRGC) and broadcast on Channel 3 of Iranian state television.

The clip shows the location of the university he attends, along with maps of the school. It also depicts security vehicles that drive him around. The clips also allege Barron Trump's movements have been monitored.

The Epoch Times reached out to the university about the video and didn't immediately receive a response about whether any additional security measures have been taken.

The video also claims Barron Trump communicates through voice-to-text on a gaming platform and mentions Trump Tower, where he is known to stay.

The broadcast also claims Barron Trump's gaming accounts have been located and allegedly names a couple of his friends.

Statements in the video appeared to taunt and intentionally terrorize Barron Trump and the president's family. The Epoch Times has not been able to verify whether claims made in it are legitimate.

This is the second broadcast by the Iranian regime to threaten Barron Trump.

An IRGC-affiliated news agency also broadcast a similar video in July threatening First Lady Melania Trump. It claimed to have information on her security detail, her movements and alleged security vulnerabilities.

President Donald Trump, First Lady Melania Trump, and son Barron Trump make their way to board Marine One from the South Lawn of the White House in Washington, on Jan. 17, 2020, to travel to Palm Beach, Fla. MANDEL NGAN/Getty Images

At the end of the July video, the narrator says: "This is just the beginning. Barron Trump, wait for us."

The video that was broadcast this week ends with the same statement.

Since the start of the war against Iran, and the assassination of Iran's Ayatollah Ali Khamenei, Iranian media have issued several articles and statements threatening the lives of President Trump and his family members.

The White House referred questions about the threats against the Trump family to the Secret Service.

Tyler Durden Wed, 08/26/2026 - 15:25

Wheat Futs Surge To Three-Year High As JPMorgan, HSBC Warn Global Food Shock Is Brewing

Wheat Futs Surge To Three-Year High As JPMorgan, HSBC Warn Global Food Shock Is Brewing

Wheat futures surged to a three-year high on Wednesday morning as traders repriced a nasty convergence of supply risks across the global agricultural supply chain. Ongoing drone and missile attacks on critical Black Sea shipping and port infrastructure are constraining Russian and Ukrainian exports, while severe Northern Hemisphere heat waves and disruptions in the Strait of Hormuz are amplifying concerns that another food-inflation cycle could rear its ugly head next year.

Bloomberg reported that the most-active Chicago wheat contract jumped as much as 2.4% to $7.2025 a bushel, its highest level since July 2023. Futures have gained about 12% so far this month.

Russia and Ukraine, two of the world's most important breadbaskets, account for more than a quarter of global wheat exports and are also major suppliers of corn, barley, and sunflower oil. The Black Sea conflict has escalated since early July, with both sides targeting bulk carriers, ports, and other infrastructure critical to transporting grain and other agricultural products to the rest of the world.

Earlier, Ukrainian President Volodymyr Zelenskyy said Moscow rejected Kyiv's proposal for a ceasefire covering ships carrying agricultural goods through the Black Sea. In return, Russia sought guarantees that Ukraine would stop attacking its energy infrastructure, including refineries.

Zelenskyy said Kyiv was prepared to discuss an energy truce, but only on a reciprocal basis. Reuters reported that the two sides remain divided.

Troubling new estimates suggest Ukraine's agricultural exports could collapse by 54% to about 29.6 million tons during the 2026-27 marketing year, down from an earlier estimate of 64.4 million tons. Wheat shipments alone could plunge by 53% to 8.3 million tons.

Meanwhile, Russian wheat exports in August are also expected to fall by more than 50% from a year earlier. Several terminals at Novorossiysk, Russia's largest Black Sea grain-export hub, suspended operations after sustaining damage in a Ukrainian one-way attack-drone strike. The two damaged facilities have a combined annual export capacity of more than 14 million tons, according to S&P Global.

Port bottlenecks are also growing. Bloomberg reported today that as many as 70 ships were queued near the Danube's Sulina Canal. Massive shipping delays have sent freight costs surging.

More broadly, the Bloomberg Agriculture Spot Index, which tracks 10 major crop products, has also jumped to a three-year high. 

Wall Street warnings that a food crisis could erupt as soon as next year are growing louder.

The latest came from HSBC economist Jamie Culling, who covers Australia, New Zealand, and global commodities. In a Tuesday note titled "Food Prices Rising Due to the Weather and Wars," Culling warned that global agricultural "buffers are now starting to run down."

Last week, JPMorgan global economist Nora Szentivanyi issued a similar warning, saying the next global food crisis "won't be short-lived."

Tyler Durden Wed, 08/26/2026 - 14:25

Trump Admin Defends Kennedy Center Name Plan, Warns Of Demolition Risk

Trump Admin Defends Kennedy Center Name Plan, Warns Of Demolition Risk

Authored by Kimberly Hayek via The Epoch Times,

The Trump administration told a federal judge that the John F. Kennedy Center for the Performing Arts in Washington could face demolition without major renovations.

Lawyers for the Justice Department made the case in a late Monday filing in defense of a recent board resolution that would add language recognizing President Donald Trump on the building and rename the grounds.

The board of trustees for the center voted Aug. 13 to place the words "Restored and Renovated by President Donald J. Trump" below the center's formal name. It also approved calling the physical site the "President Donald J. Trump Plaza."

Rep. Joyce Beatty (D-Ohio), a board member, had asked U.S. District Judge Christopher R. Cooper to block the move. Beatty's emergency motion seeks an injunction against the name recognition resolution.

In response, Justice Department attorney Brantley T. Mayers wrote that the center sits in a "financial and structural death spiral." The filing describes the building as "dangerously dilapidated, outdated, and decrepit."

"Without those efforts, the Center will deteriorate further into an unsafe, decrepit structure that will be required to be taken down, with a determination to follow on what to build on the site," the filing states, pointing toward one long-discussed alternative in the form of a large outdoor amphitheater overlooking the Potomac River.

Mayers argued that blocking recognition of Trump would cause donors to flee, financial contributions to slow, and structural work to stop.

"The crisis is so acute that, without the Trump Administration, its people, and President Trump, the Center cannot survive, either structurally or financially," the filing says.

Cooper ruled in May that an earlier board decision to rename the institution the "Donald J. Trump and the John F. Kennedy Memorial Center for the Performing Arts" violated federal law. Only Congress can change the name, the judge found. Trump's name was removed from the facade in June.

The new resolution stops short of a complete rename. Administration lawyers contend it stays within the board's authority and does not violate the prior order.

A hearing is set for Thursday. The board has said it will not implement the inscriptions before Sept. 8 at the earliest.

The Kennedy Center opened in 1971 as a living memorial to the slain president. Its board, controlled by Trump appointees, has pushed renovations for months, with Trump describing the building as in poor shape and positioning the project as essential to its future.

The filing urges Cooper to deny Beatty's request, describing the recognition language as a necessary acknowledgment for the administration's role in any renovation and rescue effort.

Tyler Durden Wed, 08/26/2026 - 14:05

Yields Hit Session High After Subpar 5Y Auction Tails For 10th Consecutive Time As Foreign Buyers Shrink

Yields Hit Session High After Subpar 5Y Auction Tails For 10th Consecutive Time As Foreign Buyers Shrink

While yesterday's 2 Year auction was absolutely blockbuster, today's sale of 5Y paper left quite a bit to be desired.

Starting at the top, today's sale of $70BN in 2Y paper priced at a high yield of 4.393%, which was modestly below last month's 4.408% if at the high end of all auctions in the past few years. It also tailed the When Issued 4.391% by 0.2bps, which was the 15th consecutive auction without a Stop Through, and the 10th tailing auction in a row.

The bid to cover was 2.37, an improvement to last month's 2.28 and better than the recent average of 2.32. It was also the highest bid to cover going back to November 2025. 

The internals were weaker, with foreign buyers taking down 61.5%, up from 59.2% last month if below the recent average of 65.4%. And with Directs hanging in there, and taking 28.4% of the auction, the most since January, Dealers were left holding 10.0%, the lowest since December. 

Overall, this was a solid, if notably weaker auction than yesterday's phenomenal 2Y sale, and the continued drift higher in the 10Y yield and the entire curve to session highs, confirmed the market's muted reception.

Tyler Durden Wed, 08/26/2026 - 13:49

The Unsustainable $40 Trillion National Debt

The Unsustainable $40 Trillion National Debt

Authored by Jeffrey A. Tucker via The Epoch Times,

The national debt has now passed $40 trillion. It stands at 120 percent of GDP. That should alarm us and probably does but let's just be honest: no one can conceive of such figures. They are just floating zeros and no one has any sense of whether and to what extent this portends economic doom for us. Maybe it does or maybe it doesn't.

An electronic display shows the national debt in Washington, D.C., on Aug. 19, 2026. Mandel Ngan/AFP via Getty Images

You can perhaps conceptualize this better by considering household finance. The extent of the debt burden a household can handle depends on the ratio of financial inflows to outflows in the form of debt service. This is the debt-to-income ratio. Another consideration looks at assets that would need to be liquidated should bankruptcy arrive. That's the debt-to-assets ratio.

The usual financial advice for a household is to keep the debt-to-income ratio in the range of 30 percent. As for debt-to-assets, anything beyond 50 percent is overly vulnerable to shocks that could turn everything south and quickly, leading to tragedy with even small changes in interest rates, stock valuations, business fortunates, or real-estate hiccups.

And yet here we are with a 120 percent ratio of debt to GDP. This is higher than the brief blowout of the Second World War, a time when the nation was stuffed with real savings and U.S. creditworthiness was unquestioned. After the war, the nation got its fiscal house in order and it stayed that way for decades.

The turning point toward this scary debt cycle was the end of the gold standard and the Bretton Woods system that forced some degree of fiscal responsibility. Gold outflows were always going to be a consequence of extension. When the spending extravaganza of the Great Society plus the Vietnam War (guns and butter) tested the limits and nations around the world started demanding payment in specie, the United States panicked and closed the gold window for good. That was 1971 and by 1973, we had a new system: a world of floating fiat currency.

The crucial point here is that Congress no longer faced any real cost for authorizing endless spending of whatever sort. The Treasury creates the debt and sells it to bond dealers who dish it out to all takers. The buyer of last resort is of course the Federal Reserve. This is the creator of this moral hazard. It's why there is no real default premium on U.S. debt and no serious work to rate the quality of debt with any realistic measurement. It's because the Fed is there always and ever to be the buyer of last resort.

Let's put this in simpler terms. Why is it that states within the United States don't run these kinds of debts? If they do run deficits, their default risk goes up and the quality rating goes down. Most states do very well on this score with a AAA rating, whereas Illinois, New Jersey, Pennsylvania, and Kentucky have lower ratings. In states, there are consequences for fiscal mismanagement.

I've wondered how common the knowledge is to explain this puzzle. So I asked a conventional AI engine what it believed to be the explanation. To my amazement, the answer came back quickly and precisely: states in the union have no power to create money. Boom! That's it. That's the whole thing.

This is why every scheme for balancing the budget at the federal level has failed. There is no balanced budget amendment but it likely would not matter much anyway. We could have a quantity rule for the Federal Reserve but it would be completely unenforceable.

The only way to stop the debt madness at the federal level would be to legally prohibit the Fed's open market operations (OMOs) and related large-scale asset purchases. This would largely prevent the Federal Reserve from expanding the monetary base in its primary and most powerful way. This and this alone would bring fiscal accountability to the federal level that states face all day every year.

Absent that solution, the federal government faces the same problem that a household with too much debt faces. Eventually all its income flows will be eaten up by debt service. Right now, 19 percent of federal revenue feeds the debt machine but matters are getting worse. The latest estimates from the Congressional Budget Office forecast a coming fiscal trainwreck.

The new estimates are that if net interest averages 250 basis points (2.5 percentage points) higher than CBO's baseline assumptions, 100 percent of all revenue going to the federal government will go to paying interest on the debt by 2055. That's just not that far away. That moment spells disaster.

And this is one reason why there is such a push by both parties and all stakeholders to hold down rates as much as possible. Letting them float according to free market pressures would bankrupt the country in a period of years. But therein lies another problem. Artificially low interest rates feed inflation and distort production structures.

This is why I'm not optimistic that our problems with inflation are going away anytime soon. If the Fed were really to crack down on quantitative easing, the fiscal burden of debt would explode in ways that would limit the power of politicians and utterly blow up the bond market. It appears to me that U.S. elites have decided that a persistent 3-4 percent inflation rate is a necessary tradeoff to avoid a fiscal calamity.

I'm very sorry to be the bearer of this bad news. We've gone though heck and back over the last 5 years of inflation but the problem is not going away soon. Let's further assume that the Reality Index is correct that the real inflation rate is one-third higher than official reports. At this rate, the dollar might have lost a clean 50 percent across the board of its 2019 purchasing power in one decade. This means that the fight to achieve the American dream is ongoing.

Consider too that the unfunded liabilities assumed over a 75-year horizon is closer to $80 trillion-$90 trillion, numbers that are beyond comprehension. The answer to the debt problem, then, is to bring back fiscal discipline through serious monetary reform. Let rates rise to their market level, allow that increase to feed the fullness of the yield curve, close open market operations, and expect Congress to stop its wild behavior once and for all. There are pathways out of this mess but it will require genuine political courage to pursue them.

Tyler Durden Wed, 08/26/2026 - 13:25

Trump Sends Saudi Nuclear Accord To Congress, With Israel Normalization Still Attached

Trump Sends Saudi Nuclear Accord To Congress, With Israel Normalization Still Attached

It's official - a proposed agreement with Saudi Arabia on civil nuclear energy has been submitted by the White House to Congress. 

The landmark nuclear accord would mean that uranium enrichment would eventually take place on Saudi territory. However, President Trump has included a major bombshell condition: he has not backed off requiring Saudi normalization with Israel.

Saudi state media sources

"The president's position has not changed that the agreement will only move ‌forward if Saudi Arabia joins the Abraham Accords," an admin official has made clear.

The Wall Street Journal reports that "The agreement, which ‌was reached in July and would allow U.S. companies to ​export civilian nuclear technology to the kingdom, was sent to Congress on Monday, according to the U.S. official, who ⁠declined to be identified."

But officials admit expected fierce debate in Congress, as WSJ also notes: "It was not clear how Trump expects ⁠sending the nuclear deal to Congress, which has 90 session days to consider it, will advance his objectives."

"The 30-year nuclear deal calls for the construction of AP1000 reactors, a project worth tens of billions ​of dollars that would benefit Westinghouse, jointly owned by Canada-based Cameco and Brookfield Asset Management," the same report details.

The Saudis cooled on the potential for normalization with Israel in the wake of the Gaza war. Riyadh has long been demanding nothing less than full recognition of a Palestinian state before it can join the Abraham Accords.

Given at this point that this seems an impossibility from Israel's perspective, which has effectively demolished the Gaza Strip and continues squeezing the West Bank, the Saudi nuclear deal is unlikely to happen anytime soon - and could yet be many years down the line, if at all.

Meanwhile, Tehran will seize on the hypocrisy of the West allowing uranium enrichment in Saudi Arabia - and thus potential nukes - while making war on Iran and sanctioning the country for its nuclear energy program.

Any future Saudi nuclear weapon might also assure an atomic arms race in the region, and certainly the Iranians would then have greater incentive to finally build one. And it could be that they already are in secret, following the US-Israeli unprovoked attacks during Operation Epic Fury.

Iran sees itself as in a war for its very existence, and so would naturally respond accordingly. It also looks at nations like North Korea, who gain automatic 'respect' from Trump and others on the mere basis of possessing a nuclear arsenal.

Tyler Durden Wed, 08/26/2026 - 13:05

SoftBank Credit Risk Rises As Firm Mulls $20 Billion Bond Sale For OpenAI Stake

SoftBank Credit Risk Rises As Firm Mulls $20 Billion Bond Sale For OpenAI Stake

SoftBank Group's 8.5% notes due 2036 fell as much as 2.5 cents to about 98 cents on the dollar after Bloomberg reported that Masayoshi Son's conglomerate is considering a $10 billion to $20 billion bond offering, prompting traders to price in additional leverage and supply risk as the investment firm plans to refinance the massive bridge loan backing its OpenAI investment.

Sources familiar with SoftBank's plans said the potential bond offering could be denominated in dollars and euros, though they stressed that its size and timing could change. Proceeds would be used partly to repay a $40 billion bridge loan secured earlier this year to fund SoftBank's OpenAI investment and partly to finance additional artificial intelligence investments.

Masayoshi Son's junk-rated conglomerate plans to invest more than $65 billion in OpenAI by October, funding one of the largest private AI bets in history partly with borrowed money.

"We are considering various options to refinance the bridge loan, but nothing has been decided, including the amount for each," a SoftBank spokesperson told the outlet. 

The report noted:

Unlike most of its international offerings, SoftBank is exploring a 144A format for the first time in more than a decade, which would allow the notes to be sold to institutional investors in the US, the people said. That would help the company tap a larger pool of capital and potentially boost demand for the sale, they added.

US hyperscalers are expected to pour trillions of dollars into data centers and other AI infrastructure over the coming years. These firms have already borrowed more than $410 billion so far this year, putting pressure on debt markets. There are also $3.1 trillion in hyperscaler off-balance-sheet commitments that have come into question, as we noted in our latest report here.

Tyler Durden Wed, 08/26/2026 - 11:10

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