Zero Hedge

Iran Publicly Discloses Supreme Leader's Status For First Time: 'Marginally Injured'

Iran Publicly Discloses Supreme Leader's Status For First Time: 'Marginally Injured'

The Iranian government has for the first time officially weighed in on the health of new supreme leader, Ayatollah Mojtaba Khamenei, who was injured in the opening strikes of Trump's Operation Epic Fury, which killed the younger Khamenei's father and wife.

"A government official claimed Khamenei, who hasn't been seen in public since that attack, is now in good health," The Wall Street Journal writes Saturday.

via AFP

He hasn't been seen in public since the war began, and even official statements have been read aloud on state media broadcasts. There have since been conflict reports. However, according to the latest:

Yet the chief of protocol for the supreme leader’s office, Mozaher Hosseini, said on Friday that Khamenei is in “complete health,” stressing that he has only been “marginally injured” on his foot and lower back and hit by “a small piece of shrapnel had hit him behind the ear.”

The enemy is spreading all kinds of rumors and false claims. They want to see him and find him, but people should be patient and not rush. He will speak to you when the time is right,” Hosseini told a crowd in Tehran.

Prior international reports suggested he was being treated for severe burns and that he could undergo surgery, and resorts to communicating commands to lower officials via low-tech means, including written and hand delivered messages, in order to avoid Israeli or US intelligence intercepting signals related to his whereabouts.

Regional and Gulf media have also summarized of the latest official Iranian description of the Ayatollah's health, that "there were no indications of a serious deterioration in his condition."

And, "According to Iranian media reports, the official stated that medical examinations confirmed Mojtaba Khamenei’s condition was completely stable. He added that the injury did not require complex surgery. Furthermore, he is undergoing only routine medical monitoring to ensure his well-being."

Iranian President Masoud Pezeshkian revealed on Thursday that he for the first time recently held a meeting with Mojtaba Khamenei, at an undisclosed location, and that the encounter was a long and productive one. State media said it was two-and-a-half hours.

"What stood out more than any other topic in the meeting was the way of dealing, the type of outlook, and the humble and deeply friendly manner of conduct by the leader of the revolution," Pezeshkian described. He characterized the new Ayatollah's approach as "a model based on taking responsibility, being close to the people, and truly listening to issues and problems."

Western officials and intelligence have all the while been seeking to assess just who is ultimately in charge of running the country. There have been reports of a growing split between the IRGC military apparatus and the Islamic Republic's civilian leadership. However, none of these reports are confirmable, but it's largely only guesswork by those far outside the country.

Tyler Durden Sat, 05/09/2026 - 13:25

5 Highlights From The Pentagon's UFO Files

5 Highlights From The Pentagon's UFO Files

Authored by Jacob Burg & Jacki Thrapp via The Epoch Times (emphasis ours - the ALFstein files),

Apollo 11 astronauts reported seeing a “sizeable” object close to the moon with a “fairly bright light source” that they described as a “possible laser,” in a newly released post-mission crew debriefing from NASA.

The U.S. Indo-Pacific Command reported a UAP that resembled a football-shaped body near Japan in 2024. The image was released on May 8, 2026. Department of War

That document, along with videos and images of unknown objects in airspace from nearly all corners of the globe, was included in newly released files from the Pentagon related to the U.S. government’s investigations into unidentified flying objects (UFOs) and unidentified anomalous phenomena (UAP). The first tranche of files was released on May 8.

“As for my promise to you, the Department of War has released the first tranche of the UFO/UAP files to the Public for their review and study,” President Donald Trump wrote on social media Friday morning.

With these new Documents and Videos, the people can decide for themselves, ‘WHAT THE HELL IS GOING ON?’ Have Fun and Enjoy!”

While the Pentagon had been increasingly declassifying various UFO and UAP files throughout the past decade, Trump threw the topic back into public focus when he suggested in February that a document release could be coming soon.

The first batch of released files includes FBI interviews and internal communications, State Department cables, NASA crew transcripts, and videos of potential UFOs.

Here are five highlights from a partial review of the new file release.

Moon Sightings

The newly released documents reveal that NASA astronauts encountered a series of unexplained phenomena during multiple Apollo missions.

Astronaut Buzz Aldrin reported witnessing a “fairly bright light source” which he described as a “possible laser” while in lunar orbit, according to a previously confidential crew debriefing of Apollo 11 taken on July 31, 1969.

The Apollo 12 flight crew observed two separate incidents of an “unidentified phenomenon” in November 1969.

Apollo 12 astronaut Alan L. Bean described observing particles of light “sailing off in space,” that looked as if they were “escaping the Moon.” Charles “Pete” Conrad made a separate observation of seeing floating debris outside the lunar module.

Apollo 17 astronauts reported three different unexplained events on three separate days of their 1972 mission.

Harrison “Jack” Schmitt said he observed a flash on the lunar surface north of the Grimaldi crater. He described it as a “thin streak of light.”

Schmitt experienced another unexplained event with Command Module Pilot Ronald Evans, as they observed “very bright particles or fragments” drifting and “tumbling” near the spacecraft.

“There’s a whole bunce (sic) of big ones on my window down there—just bright,” Schmitt said. “It looks like the Fourth of July out of Ron’s window.”

In a separate incident on the same Apollo 17 mission, Mission Commander Eugene A. Cernan said he experienced an intense, “imposing” light flashing between his eyes like it was a train headlight.

Amid those sightings, the astronauts took a photo of what appeared to be three dots in a triangular formation in the sky above the moon. NASA noted that while the image has been released previously, “there is no consensus about the nature of the anomaly.”

A NASA file photo from the Apollo 17 Mission, taken in December 1972, shows an unidentified anomalous phenomenon in the sky above the moon. Courtesy of the Pentagon ‘Eight-Pointed Star’

The Epoch Times reviewed all the videos included in the Pentagon’s initial UFO file release. Potentially the most striking video came from U.S. Central Command in 2013, which shows an aerial object that was described as “an eight-pointed star with arms of alternating length.”

The object appears to be hovering in the one-minute forty-six-second video.

A newly released video of a potential UAP by the Pentagon shows an aerial object that was described as “an eight-pointed star with arms of alternating length.” Screenshot by The Epoch Times/Courtesy of the Pentagon

U.S. Central Command reported another potential UFO that was filmed from an infrared sensor aboard a U.S. military platform in 2022. The report described the object as a “possible missile” quickly moving across the field of view.

In a third video, another U.S. military infrared sensor films two bright objects that seemingly track across the sky in formation. The objects appear with high contrast against the sky’s backdrop.

U.S. Indo-Pacific Command submitted a video from 2024 to the Pentagon that was also filmed with an infrared sensor, tracking a potential UFO through an area containing multiple windmills.

FBI Probes Multi-Witness Sighting

The file dump included multiple heavily redacted FBI interview reports from a multi-witness sighting at an unknown U.S. testing facility in September 2023.

In one report, a woman describes a strange series of events that occurred one morning when she and several government contractors were working on a special project under restricted airspace.

While trying to enter a remote-controlled gate at the undisclosed U.S. testing facility, the gate “opened just a little and then closed on three separate tries” before finally opening on the fourth attempt.

The report said the gate had zero operational issues before or after the incident occurred.

As the woman’s vehicle drove through the gate entrance, she “looked up and saw a cigar-shaped object with an extremely bright light” anywhere between 500 and 3000 feet above the nearest treeline.

She described it as “metallic bronze in color” and the length of two to three Black Hawk helicopters “lined up nose to tail.” The woman and another unnamed contractor watched the object for five to 10 seconds before it disappeared, leaving no contrails.

The FBI included a composite sketch of the reported object.

An FBI composite sketch of a UAP reported by multiple witnesses over an undisclosed U.S. testing facility in September 2023. Screenshot by The Epoch Times/Courtesy of the Pentagon

These were not the only witnesses. The FBI interviewed a drone pilot operating near the same testing facility who also claimed to see the object, and other redacted witnesses driving towards the facility that day who saw it as well.

‘Cobalt Ray’ Telegram

One of the seemingly strangest documents seen thus far by The Epoch Times in the Pentagon’s initial UFO file release is an internal FBI memo from 1967, sent from the Bureau’s legal attaché in Mexico City to FBI Director J. Edgar Hoover.

Marked as “classified SECRET,” the memo reproduces a telegram sent to Mexico’s Federal Security Police by a W.R. Hanawalt, who reportedly sent it from Harlingen, Texas, in December 1966.

Hanawalt tells of a strange technological object that he describes as a “laser ray, or cobalt ray” that is “self-enshrouding” and “similar in use to a cocoon around a silk worm.” He says the ray can enclose a person’s entire nervous system, allowing the operator to produce “visions of flying objects.”

“Breathing and heartbeat can be absolutely manipulated—your lie detector tests can be positively controlled without your knowledge,” Hanawalt writes, adding that the ray can manipulate a person’s five senses.

They have infiltrated almost every business level,” he says, referring to those who operate the alleged technology.

“I have stated the possibility of premeditated murder from the standpoint of the operator, his vehicle and add to this the same conditions for the other vehicles involved. These are manipulated by the ‘rotten apples’ in the barrel of any Federal security arm, who are untouchable because of betrayal of Federal top secrets they have sworn to defend,” Hanawalt adds.

Other than the “SECRET” stamps on the document and barely legible handwritten notes, the only notation from the FBI is that the Bureau had no information in its files on Hanawalt.

‘Bright Light of Enormous Intensity’

The trove of files also included multiple State Department cables and documents.

In one cable, dated Jan. 31, 1994, an object was reportedly seen over Kazakhstan by Tajik air pilots, who described it as a “bright light of enormous intensity” that approached them from over the horizon.

“They watched the object for some forty minutes as it maneuvered in circles, corkscrews, and made 90-degree turns at rapid rates of speed and under very high [G-forces],” the cable said. “After some time, the object adopted a horizontal high-speed course and disappeared over the horizon.”

The captain took photos of the object with a pocket Olympus camera. Those photos were not included with the report.

In another State Department cable dated Jan. 28, 1985, a “high-altitude, high-speed aircraft” was observed over Papua New Guinea by the U.S. Embassy in Port Moresby.

Local residents reportedly became frightened by unidentified aerial objects flying overhead. The reports described “fast-moving objects with lights, contrails, and noise.”

A pilot reported seeing an aircraft on radar “flying south to north at high altitude and high speed.”

The State Department told Papua New Guinea’s National Intelligence Organization that it knew of no overflights of U.S. military B-52s, or U.S. aircraft in the area on the night of the reported incidents.

Tyler Durden Sat, 05/09/2026 - 12:50

Putin Rips NATO Aggression At Scaled-Down Victory Day Parade As Ceasefire Holds

Putin Rips NATO Aggression At Scaled-Down Victory Day Parade As Ceasefire Holds

By many accounts Russia's Saturday Victory Day parade and memorial observances in Moscow's Red Square were once again muted and somewhat scaled down compared to the immense pageantry which marked the pre-Ukraine war years.

President Putin used the occasion while speaking in front of thousands of military personnel and flanked by a handful of world leaders to take swipes at NATO and the West, saying he's fighting "just" war and called Ukraine an "aggressive force" that is being "armed and supported by the whole bloc of NATO".

Pool Photo via AP 

"The great feat of the generation of victors inspires the soldiers carrying out the goals of the special military operation today," Putin said. "They are confronting an aggressive force armed and supported by the entire NATO bloc. And despite this, our heroes move forward." He added: "I firmly believe that our cause is just."

The three-day Ukraine ceasefire announced and backed by President Trump appears to be holding, as no drone attacks have been registered on Moscow or other parts of the country. Large-scale drone waves were coming on a daily basis throughout last week. Massive bombardment of Ukraine has also ceased. Ukraine's Zelensky had reportedly ordered his armed forces to adhere to the short ceasefire:

Meanwhile, Ukrainian President Volodymyr Zelensky issued a decree on Friday (May 8) ordering the Ukrainian military not to attack the parade. He also confirmed that his government would adhere to the ceasefire and the prisoner swap of 1,000 detainees from each side.

"Red Square is less important to us than the lives of Ukrainian prisoners who can be returned home," Zelensky said, referring to the historic site in Moscow where the annual event is held.

The Kremlin has over the past days repeatedly warned that Kiev would come under immense bombing if the parade did get attacked, and went so far as to tell foreign diplomats they should evacuate the Ukrainian capital in such a scenario.

via AP

Among the foreign leaders that attended Saturday V-Day included Slovak Prime Minister Robert Fico, President of Belarus Alexander Lukashenko, President of Laos Thongloun Sisoulith, Malaysia Supreme Leader Sultan Ibrahim, President of Kazakhstan Kassym-Jomart Tokayev and President of Uzbekistan Shavkat Mirziyoyev.

The NY Times (and a lot of other Western media outlets) is reading all of this as a 'loss' and reputational hit for Putin, again given the scaled-down and lower key nature of everything.

"President Vladimir V. Putin has cultivated the annual Victory Day parade commemorating the Soviet triumph over Nazi Germany into a cornerstone of Russian patriotic ritual," NYT wrote. "Tanks and nuclear launchers roll across Red Square in a showcase of military prowess and righteous pride that the Kremlin has used to justify the country’s great-power posture toward the West."

But then the report underscores that "Moscow is under a heavy security presence as Ukraine rattles Russia with long-range drone and missile strikes. The Russian authorities have appeared exposed as they acknowledged that the beefed-up security was intended to protect Mr. Putin."

It further highlighted: "The parade on Saturday included none of the usual muscle-flexing missiles and armor. Personnel from Russian military academies and other servicemen made their way through Russia’s most famous square."

Tyler Durden Sat, 05/09/2026 - 12:15

De-Extinct Dire Wolves Ready To Breed; Bioscience Company Pushes Forward Multiple Projects

De-Extinct Dire Wolves Ready To Breed; Bioscience Company Pushes Forward Multiple Projects

Authored by Steve Watson via Modernity.news,

Colossal Biosciences has announced that its de-extinct dire wolves—Romulus, Remus, and Khaleesi—are now breeding-aged and the firm plans to expand the pack later this year. The development marks a significant step for the Texas-based company in its mission to restore extinct species through genetic engineering.

The dire wolf pups, born in late 2024 and early 2025, represent the world’s first de-extinct animals. They have thrived in a secure 2,000-acre preserve, reaching milestones like learning to process whole deer carcasses and now showing readiness for natural breeding behaviors.

“The dire wolf pack is actually breeding-aged at this point,” Matt James, Colossal’s chief animal officer, said, adding “But we will initially grow the pack through assisted reproduction while we create new, genetically diverse individuals.”

The company intends to engineer two to four additional pups to boost genetic diversity before allowing full natural breeding. “The plan is to create an inter-breedable population of dire wolves in which they would eventually breed naturally to create a sustainable population of the world’s first de-extinct species,” James continued.

He further added, “We will grow the population through assisted reproduction initially and then eventually only rely on natural breeding.”

“The dire wolves are doing great,” Ben Lamm, Colossal’s CEO and co-founder, stated., adding “The three dire wolves live on a 2,000-acre secure, expansive ecological preserve that allows us to monitor and manage them while providing them a semi-wild habitat to thrive in. We hope to have more dire wolf pups by the end of the year.”

Colossal reconstructed the dire wolf genome from ancient DNA fragments in bone samples, including a 72,000-year-old skull. Scientists then edited gray wolf embryos to incorporate key traits: a white coat, larger teeth, more muscular build, and distinctive howl. Embryos were implanted in surrogate dogs, with births by caesarean section.

Watch the full story of their creation:

See the pups’ early development and first howls in over 10,000 years:

Colossal is running several parallel de-extinction projects:

  • Woolly Mammoth: Aiming for a live calf by late 2028 through Asian elephant genome editing to restore cold-adapted traits and Arctic ecosystem functions.
     
  • Thylacine (Tasmanian Tiger): Editing fat-tailed dunnart cells to revive this extinct marsupial predator.
     
  • Dodo: Using Nicobar pigeon cells and stem cell technology to revive the iconic bird extinct for over 350 years.
     
  • Moa: Colossal is working on the giant flightless bird of New Zealand, extinct for about 600 years. Director Peter Jackson has invested, calling it a dream project. Related coverage: Peter Jackson Invests In Genetic Project To Bring Giant Bird Back From Extinction.

In April, Colossal announced the bluebuck antelope (Hippotragus leucophaeus) as its sixth de-extinction target—the first large African mammal driven to extinction in modern history around 1800.

The striking silvery-blue antelope once roamed South Africa’s grasslands as a grazer and seed disperser. Habitat loss, farming, and overhunting by European settlers led to its disappearance.

“We don’t love that ending. So we’re rewriting it,” the company states. Using high-quality reference genomes and editing roan antelope cells (its closest relative) as surrogates. The project advances reproductive technologies like ovum pick-up, IVF, and embryo transfer for antelopes, with broader benefits for conservation.

Critics note these animals are genetically edited proxies rather than identical clones, and question ecological reintroduction risks in changed environments. Colossal emphasizes ethical animal welfare, semi-wild habitats, and using de-extinction tech to aid living endangered species.

The projects continue to draw global attention, blending advanced biotechnology with conservation goals.

For those clamouring for Jurassic Park style de-extinction of dinosaurs, however, it’s bad news. Colossal addresses common misconceptions in the video below, noting dinosaurs cannot be revived due to DNA degradation, but more recent species are feasible.

Colossal’s official dire wolf page: colossal.com/direwolf.

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 Sat, 05/09/2026 - 11:40

Frontier Jet Hits Person On Takeoff, Engine Erupts In Flames At Denver

Frontier Jet Hits Person On Takeoff, Engine Erupts In Flames At Denver

A shocking runway security incident unfolded late Friday at Denver International Airport after Frontier Flight 4345, an Airbus A321 bound for Los Angeles, struck an individual during its takeoff roll, forcing the crew to abort.

Full transcript of the ATC audio:

Frontier 4345 (pilot): Tower, Frontier 4345, we're stopping on the runway. We just hit somebody and have an engine fire.

DEN Tower: Frontier 4345, I see that.

DEN Tower (to Frontier 4345): Frontier 4345, I'm going to be rolling the trucks now. Do you know if there are souls on board and fuel remaining?

Frontier 4345 (pilot): Alright, 4345 we have 231 souls on board. We have 21,320 pounds of fuel onboard. There was an individual walking across the runway.

In our view, a commercial jet at a major international airport does not simply "hit someone" on an active runway during takeoff, particularly near the point of rotation. This suggests a potentially serious breakdown in perimeter, airfield, or runway security controls.

The incident appears to represent a major security breach at DEN. One working theory is that the individual intentionally entered the aircraft's path, potentially committing suicide by entering the right turbine intake.

Hence the fire...

After ... 

That said, investigators will need to determine how the person accessed the active runway, whether DEN's perimeter controls failed, and whether the individual was struck by the aircraft and drawn into the engine or simply jumped into the turbine intake.

Tyler Durden Sat, 05/09/2026 - 09:55

Austrian Hotel Defends Burkini Pool Ban As Hygiene Dispute With Muslim Guests Heads To Court

Austrian Hotel Defends Burkini Pool Ban As Hygiene Dispute With Muslim Guests Heads To Court

Authored by Thomas Brooke via Remix News,

A hotel in the Austrian city of Salzburg is defending its refusal to allow two women to use its pool while wearing burkinis, arguing that the decision was based on hygiene concerns rather than discrimination.

The case is now before the Salzburg Administrative Court after the operators of the hotel in Pongau appealed fines imposed by the district authority, according to Salzburger Nachrichten.

Boshra and Jasmina Amasha, two sisters from Upper Austria, had booked a short wellness break at the hotel on Oct. 25 last year.

They arrived early with the intention of using the swimming pool before going hiking.

The dispute started at reception when one of the women mentioned that she was going to retrieve her burkini from the car.

Staff told her that burkinis were not allowed in the hotel pool, a decision that was upheld after a phone call with the hotel manager.

The hotel manager later confirmed in court that women wearing burkinis were not welcome in the pool. She said the policy was linked to hygiene, arguing that longer fabric could carry bacteria into the water.

She acknowledged that she did not have scientific evidence to support that concern, but said the hotel also operated as a spa and had to place particular emphasis on cleanliness, especially because many older guests used the facilities.

The hotel’s co-manager also told the court that there was no formal written swimwear policy, but said long swimwear could have a negative effect on water hygiene. He added that the hotel had also previously asked guests wearing long swimming shorts to change.

The sisters reject the hygiene explanation. Jasmina Amasha said the phone conversation was not presented to them as a technical discussion about pool standards, but instead included remarks such as, “Here in Austria, we have to adapt,” and, “We could go swimming in Saudi Arabia wearing a burkini.”

She also claimed they were told other guests did not like seeing women in burkinis.

Their lawyer argued that burkinis are made from similar material to standard swimwear and are not less hygienic than bikinis.

She also cited a parliamentary inquiry to the Ministry of Health and said the garment could reduce the amount of hair and skin flakes entering the water.

After the confrontation, the sisters left and booked another hotel. The court heard that the original hotel covered the additional costs, but Jasmina Amasha said the experience had been “extremely humiliating and discriminatory.”

The hotel operators are appealing the penalty imposed against them, and the court is expected to issue a written ruling in the coming weeks.

Read more here...

Tyler Durden Sat, 05/09/2026 - 09:20

Europe Sees 'Hyper-Concentration' Of Crypto 'Wrench Attacks' As Losses Hit $101 Million

Europe Sees 'Hyper-Concentration' Of Crypto 'Wrench Attacks' As Losses Hit $101 Million

Authored by Stephen Katte via CoinTelegraph.com,

Estimated losses from global crypto wrench attacks reached $101 million in the first four months of 2026, with most attacks occurring in Europe, according to Web3 security company CertiK.

With just 34 documented crypto wrench attacks, the losses have nearly doubled those of 2025, which came in at $52.2 million. Europe accounted for 82% of incidents, according to CertiK.

“Our 2025 report documented a gradual tilt from Asia and North America toward Europe, and these first four months of 2026 mark a European hyper-concentration.”

The frequency of wrench attacks has increased since 2025. They involve physical force to gain access to a victim’s crypto holdings and have taken the form of home invasions, kidnappings and other extortion attempts. CertiK said there have been 34 attacks since the start of the year.

If the trend continues, CertiK predicts that by year-end the number of incidents could hit 130, and losses could reach “several hundred million dollars.”

There have been 34 verified wrench attacks worldwide since the start of the year. Source: CertiK 

France is an epicenter of wrench attacks

Of the attacks, 24 crypto wrench attacks occurred in France this year, said CertiK. France’s National Prosecutor's Office for Organized Crime has reported a higher figure of 47 incidents in 2026.

CertiK said France has likely emerged as a hot spot for these kinds of criminals because of the presence of crypto executives from major crypto companies such as Ledger, Paymium and Binance.

Crypto holders in France are being targeted more than anywhere else in the world. Source: CertiK 

It also pointed to numerous data leaks, such as the January breach at crypto accounting firm Waltio and tax official Ghalia C, who is accused of selling crypto asset holder data to criminal networks, and “a culture of flexing and voluntary doxxing that remains deeply embedded in the community.”

“Early 2026 marks the shift to a data-driven targeting model in which prior physical surveillance becomes unnecessary once attackers have the victim's full name, home address, financial profile, and so on.”

“The structural takeaway is clear: as the security of protocols and wallets tends to improve, the threat migrates toward the human link. As long as crypto-asset holdings remain associated with identifiable financial data, physical coercion will remain the economically most rational attack path,” CertiK added.

Blockchain intelligence company TRM Labs reported in May last year that wrench attacks have been on the rise because of the perceived pseudonymity of crypto transactions, the public visibility of wealth, and the ease with which bad actors can gather personal data online.

The criminal teams are often “complete amateurs”

Across recorded wrench attacks, CertiK said the orchestrators are often located outside the target country. The criminal teams on the ground usually consist of three to five people, and they frequently pose as delivery drivers or police officers, or lure victims into an ambush with a ruse such as a fictitious business meeting.

“Most of the time, they are recruited via messaging apps such as Telegram or Snapchat for a few thousand dollars. They don't know each other and are complete amateurs,” CertiK added.

Meanwhile, Casa chief security officer Jameson Lopp has recorded 31 crypto wrench attacks so far this year and reported in March that four cases he was tracking for his list turned out to be mistaken identity, with the thieves attacking the wrong targets. 

Source: Jameson Lopp

In April, at least 88 people, including 10 minors, were indicted in connection with alleged wrench attacks on crypto owners in France.

“The growing proportion of minors signals an increasing externalization of criminal liability toward profiles less exposed to mandatory minimum sentences,” CertiK added.

Tyler Durden Sat, 05/09/2026 - 08:10

We're "Ending The Days Of Hiding Fraud": Bessent Goes After Dark Money In Nonprofits

We're "Ending The Days Of Hiding Fraud": Bessent Goes After Dark Money In Nonprofits

Authored by Stu Cvrk via American Greatness,

On April 23, the US Treasury Department announced that the IRS plans to revise Form 990—the annual information return filed by tax-exempt organizations—to improve transparency and strengthen oversight, specifically targeting reporting on government contracts, government grants, and fiscal sponsorship arrangements. The stated goals are to detect misconduct and hold wrongdoers accountable.

Treasury Secretary Scott Bessent put the matter bluntly: “We are ending the days of hiding fraud, abuse, and extremist activity behind complicated nonprofit arrangements. When bad actors misuse charitable structures, directors and officers should understand that transparency can lead to scrutiny, accountability, and liability under the law.”

The acting IRS chief counsel added: “If an organization receives public funds or tax-deductible donations, it should be prepared to show who controls the money and where it goes.”

Why is this seemingly innocuous regulatory requirement a really big deal, as most Americans have no idea what Form 990 is used for?

Let us answer that in some detail.

Bottom Line Up Front

Right now, enormous sums of money flow through nonprofit “umbrella” organizations to dozens or hundreds of sub-groups, and the paper trail essentially disappears. The IRS currently has no mechanism on the Form 990 to require disclosure of fiscal sponsorship arrangements. The new rules would force these pass-through organizations to reveal who is getting the money and what it’s being used for.

Think of this in the context of the Southern Poverty Legal Center indictments, which are only the tip of the iceberg of fiscal sponsorship arrangements and transactions.

The Problem: What Is Fiscal Sponsorship and How Is It Exploited?

Fiscal sponsorship is a legitimate and longstanding practice. In a typical fiscal sponsorship relationship, a nonprofit organization’s 501(c)(3) tax-exempt status is extended to groups engaged in activities that serve the fiscal sponsor’s mission, typically for a fee. Donations to the project are directed to the fiscal sponsor and are restricted to supporting activities of the charitable venture. The fiscal sponsor is responsible for assuring the activities of the project fulfill their charitable purpose. Here is how the left-wing Tides Foundation advertises fiscal sponsorships on their website.

The legitimate use case: a new charity that hasn’t yet received IRS 501(c)(3) status can operate under an established nonprofit’s umbrella while it goes through the process. The problem is what happens at scale when the model is weaponized.

Arabella Advisors (see below) and its affiliated entities utilized tax regulations in which groups who use a fiscal sponsorship arrangement do not have to file a Form 990 with the Internal Revenue Service. Using “pass-through” arrangements, funding is passed from one organization to another, making it difficult to trace where a donor’s money ends up.

As noted in the Treasury Department’s press release, recent congressional oversight has raised concerns that some fiscal sponsorship arrangements may be used to obscure who is operating a project, who controls project funds, and how those funds are being used.

The key loophole: because the sponsored “project” is not a standalone legal entity, it files no independent 990. Millions of dollars can be directed to a group that, on paper, barely exists—perhaps just a website—with no public accountability whatsoever.

The Arabella Dark Money Network: Scale and Structure

Arabella Advisors, founded in 2005 by Clinton administration alumnus Eric Kessler, became the most sophisticated example of this model on the American Left. Arabella Advisors is a philanthropic consulting company that oversaw a handful of nonprofits, all of which oversaw a multitude of left-leaning projects and organizations. When accounting for the seven nonprofits in the Arabella Network, they provided nearly $1 billion in grants in 2023 alone. That buys a lot of elections and left-wing activism.

The scale is staggering. In the 2020 election cycle, Arabella’s nonprofits took in $2.4 billion, more than the fundraising of the Democratic and Republican National Committees combined. In the 2022 cycle, Arabella’s fundraising rose to $3 billion.

The Arabella-managed nonprofits collectively paid Arabella over $200 million in consulting fees while creating hundreds of left-wing policy and advocacy organizations through “fiscal sponsorship” agreements that generate “pop-up groups” that operate under the umbrella of an Arabella-managed nonprofit, are not required to file independent financial disclosure forms, and often exist as little more than a website.

The core technique—the “pop-up group”—is essential to understanding how the opacity works. Since the Arabella network’s inception, it sponsored at least 340 such groups. These groups rarely disclose their relationship to Arabella Advisors or its in-house nonprofits; nevertheless, many of them accept donations from the public, funds that go to Arabella’s nonprofits. This system also allows these groups to hide their funders, since it’s virtually impossible to trace individual grants to Arabella’s nonprofits to any particular group.

The flagship funds within the network—the New Venture Fund, Sixteen Thirty Fund, Hopewell Fund, Windward Fund, and North Fund—shuffle money among themselves, compounding the opacity. The five funds sent more than $52 million to Arabella Advisors as payment for operational and management services. On numerous occasions, the funds wired millions of dollars to each other, further obscuring which issues and initiatives individual grants supported.

Foreign money has entered this network as well. Swiss billionaire Hansjörg Wyss was able to move $475 million into various organizations to influence US politics and elections through his nonprofits. The Arabella Network can be linked directly to $265 million from Wyss’s Berger Action Fund and Wyss Foundations. Keep in mind that US election laws bar foreign nationals from contributing to candidates or PACs, but no equivalent restriction applies to nonprofits operating in this manner.

What did Arabella fund specifically? Arabella played a major role in battles over Supreme Court nominations, abortion, women’s sports, school discipline, environmental policies, fake local news outlets, “Zuck Bucks” that manipulate election offices, and more. One particularly notable example: An Arabella-sponsored group funded entirely with Soros money—”Governing for Impact,” started in 2019—worked with Harvard Law School to develop legal strategy memos on how to overturn dozens of federal regulations, including Title IX.

The Sixteen Thirty Fund in particular served as an electoral vehicle. The Sixteen Thirty Fund was behind several groups that ran issue advocacy ads to benefit Democrats during the 2018 midterms. The group also funded Demand Justice, which spent millions of dollars on ads attacking Brett Kavanaugh’s Supreme Court nomination. In 2020 alone, the Sixteen Thirty Fund donated $410 million toward defeating Trump and winning Democratic control of the US.

Arabella’s recent rebrand: Facing sustained scrutiny, Arabella announced it would be shuttering, to be replaced by a trio of successor organizations. The fiscal sponsorship division was acquired by Sunflower Services, a newly formed public benefit corporation. The remaining divisions of Arabella formed a new company called Vital Impact. Sunflower Services is at least majority-owned by the three biggest C3 charities in Arabella’s old empire—New Venture, Hopewell, and Windward Funds. Critics note this is a restructuring, not a shutdown; the same infrastructure continues under friendlier-sounding names.

The Tides Foundation: The Original Model

Tides predates Arabella by three decades and essentially invented the fiscal sponsorship model for the Left. Tides founder Drummond Pike envisioned using fiscal sponsorship for progressive political activism. Fiscal sponsorship uses a tax-exempt charity to provide financial support to a non-exempt project or organization, thereby lending it tax exemption as long as the charity retains control of the way its funds are spent.

Between 1996 and 2010, the Tides Center served as a fiscal sponsor to some 677 separate projects with combined revenues of $522.4 million; in 2010 alone, the Center was actively managing nearly 200 projects.

Tides founder Pike himself acknowledged the core purpose of the model: “Anonymity is very important to most of the people we work with.” The Tides Center has been described as an organization that effectively washes away the paper trail between grants and the original donor.

The combined Tides network is enormous. The six Tides nonprofits saw combined total revenues of $785,605,823 in 2024. The Tides Center offers comprehensive fiscal sponsorship to projects that do not have their own tax-exempt status from the IRS. Again, note that Form 990 has no mechanism for disclosing fiscal sponsorship activities. Some current and past Tides Center projects include Fair and Just Prosecution, Palestine Legal, and the International Corporate Accountability Roundtable.

The Washington Free Beacon reported that in 2023, the Tides Foundation gave $286,000 to the Alliance for Global Justice, a group best known for serving as the fiscal sponsor of Samidoun—subsequently sanctioned by the US Treasury as a “sham charity” for providing material support to a Palestinian terrorist organization that participated in the October 7 Hamas attacks.

Tides has also used its fiscal sponsorship services to explicitly facilitate government grant-seeking. The fee for all funding from government sources is 15 percent, higher than standard rates because government grants entail significantly more paperwork and reporting—meaning Tides actively markets itself as a vehicle for its sponsored projects to access federal funding and takes a cut.

Government Money Flowing to Left-Wing Groups

This is where taxpayer dollars enter the picture directly—distinct from private dark money, but often intertwined with it. Here are some estimates and examples.

USAID awarded more than $800,000 to New Venture Fund—a dark money pass-through nonprofit that cloaks which donors give to which nonprofits—and $27 million to the Tides Center.

The US Committee for Refugees and Immigrants, one of the nonprofits that transported illegal aliens across the country under the Biden administration, reported receiving $284 million of its $289 million in revenue from government grants—98.2 percent government-funded.

The Solidarity Center has received over $86 million from the federal government since 2008; $61 million of that was given under President Biden. Three Solidarity employees joined Biden’s Labor Department. Solidarity receives 99 percent of its total revenue from American taxpayers and serves the AFL-CIO, which gave 86 percent of its 2024 political donations to Democrats.

On the climate front: Inflation Reduction Act funds set aside hundreds of billions for the green agenda. A former staffer from an environmental group called the Coalition for Green Capital joined the Biden EPA specifically to direct $27 billion in green funding. Under his tenure, $5 billion was granted to his former organization. Power Forward Communities received nearly $9 billion despite being only a few months old when it applied—and one recipient was a group affiliated with Stacey Abrams that had only $100 in the bank when it received $2 billion.

The Environmental Law Institute, which ran a “Climate Judiciary Project” to educate federal and state judges in favor of climate tort litigation against energy companies, received millions of dollars in grants and contracts from the EPA, the Departments of Justice, Homeland Security, Agriculture, and State, and the National Science Foundation between 2021 and 2024.

Regarding the SPLC specifically: Despite the SPLC reporting $132.7 million in revenue and nearly $770 million in net assets for 2021, the State Department still granted honorariums and speaker fees to SPLC officials. Additionally, a Biden-era Department of Labor approved a $6 million “employment training” grant for NextGen, a nonprofit that fights for “progressive policy change” through advocacy and civic engagement.

The SPLC itself is in the news for separate reasons: the Justice Department indicted the Southern Poverty Law Center on federal fraud charges, alleging it improperly raised millions of dollars to pay informants to infiltrate the Ku Klux Klan and other extremist groups.

The revolving door between these funded NGOs and Democratic administrations is a key part of the story. Personnel from Open Society Foundations and associated left-wing groups cycled in and out of the Biden White House, Justice Department, and other agencies—the same people who had previously shaped grantmaking priorities then directed government money toward aligned organizations.

In just the first month of the Trump administration, 15 groups that had received federal cash from the previous administration sued the current administration, mostly to protect their funding, which totaled $1.6 billion. This is the feedback loop in miniature: government grants activist groups → activist groups lobby for more government → activist groups litigate against anyone who tries to stop it.

Concluding Thoughts

Several converging factors explain the timing of the Treasury Department’s April announcement:

  1. Congressional pressure has been building. Multiple House hearings over the past year—the DOGE Subcommittee hearing “Public Funds, Private Agendas: NGOs Gone Wild” and the Judiciary Subcommittee hearing “How Leftist Nonprofit Networks Exploit Federal Tax Dollars”—have built an extensive public record and created political momentum for regulatory action.

  2. The rebrand attempt flagged the problem. Arabella’s restructuring into Sunflower Services and Vital Impact in late 2025 was widely seen as an attempt to launder its reputation and escape scrutiny. The Treasury announcement signals that rebranding won’t be sufficient.

  3. Form 990 has a structural blind spot. As noted in the Treasury Department’s press release, Form 990 has no mechanism for disclosing fiscal sponsorship activities. This isn’t a bug in enforcement—it’s a gap in the regulatory framework itself, one that has been known and exploited for decades. Treasury is finally moving to close it through regulatory action rather than waiting for Congress to act legislatively.

  4. The SPLC indictment and related scrutiny. The indictment of the SPLC, combined with sustained focus on the Tides Foundation’s role in funding anti-Israel groups, has elevated the broader question of nonprofit accountability in the current political moment.

  5. The “revolving door” has been documented. The Biden years produced extensive documentation of personnel moving between the dark money network and government agencies, with the explicit effect of directing public funds toward aligned organizations. The Trump administration is using every available tool—executive, regulatory, and prosecutorial—to dismantle these arrangements.

The bottom line is pretty straightforward: for decades, a small number of sophisticated nonprofit aggregators have used fiscal sponsorship to create a system in which billions of dollars—from private megadonors, foreign nationals, and American taxpayers—flow to politically aligned left-wing activist organizations with direct ties to the Democrat Party with essentially no public accountability. The sponsored groups don’t file their own 990s.

The pass-through organizations don’t have to disclose which projects their money supports. And the whole system is perfectly legal under current IRS rules. The Treasury announcement is the first significant regulatory step toward forcing disclosure of these arrangements, and its timing reflects both the political will of the current administration and the groundwork laid by over a year of congressional investigation.

Sunlight is the best disinfectant” for the body politic!

Tyler Durden Sat, 05/09/2026 - 06:00

The Day Civilization Runs Out Of Bread Will Not Feel Like Fiction

The Day Civilization Runs Out Of Bread Will Not Feel Like Fiction

Authored by Madge Waggy,

For nearly three decades, much of the modern world behaved as though the nuclear age had quietly expired sometime in the early 1990s. The collapse of the Soviet Union created the comforting illusion that humanity had stepped away from the edge permanently, as if the terrifying balance that defined the Cold War had dissolved together with old political maps. Younger generations grew up hearing about nuclear drills, fallout shelters, and atomic panic the same way they heard about trench warfare or medieval plagues: as distant historical experiences disconnected from ordinary life. Governments gradually shifted public attention toward terrorism, economic globalization, artificial intelligence, and climate policy, while nuclear annihilation faded into the background of public consciousness.

Yet history has a dangerous habit of returning precisely when societies become convinced they have outgrown it.

Throughout 2025 and the opening months of 2026, the international system entered one of its most unstable periods since the twentieth century. Military analysts began warning openly about simultaneous geopolitical flashpoints involving several nuclear powers at once. Russian officials intensified references to strategic deterrence during ongoing confrontations connected to Eastern Europe, while NATO expanded military exercises across regions Moscow considers existentially sensitive. At the same time, China accelerated modernization of its nuclear arsenal and long-range missile systems at a pace that alarmed Western intelligence agencies. North Korea continued demonstrating increasingly advanced delivery capabilities, and tensions surrounding Taiwan, cyber warfare, and contested maritime territories pushed diplomatic relations into progressively uncertain territory.

Most citizens observed these developments from a psychological distance shaped by modern media exhaustion. Continuous exposure to crisis has transformed public attention into something fragmented and temporary. Economic anxiety, inflation, political polarization, housing instability, technological disruption, and endless digital noise have conditioned people to process existential threats as short-lived headlines rather than historical warnings. This emotional fatigue may partially explain why recent discussions surrounding nuclear risk have failed to produce widespread public alarm despite the seriousness of the underlying situation.

What many people still fail to understand is that contemporary fears surrounding nuclear war extend far beyond the immediate destruction caused by the weapons themselves.

The dominant concern among climate scientists, food security experts, and strategic analysts is no longer limited to blast zones or radiation exposure.

The larger fear involves what happens afterward, when the environmental consequences of large-scale firestorms begin altering the planet’s atmosphere and destabilizing the systems that sustain modern civilization.

Civilization Does Not Collapse In One Afternoon

During the Cold War, researchers studying atmospheric science reached conclusions that many policymakers initially struggled to accept. Their models suggested that nuclear detonations targeting cities and industrial infrastructure would ignite massive firestorms capable of releasing extraordinary amounts of soot and smoke into the upper atmosphere. Unlike ordinary pollution, these particles could remain suspended in the stratosphere for extended periods, blocking significant portions of sunlight from reaching the Earth’s surface. The phenomenon eventually became known as “nuclear winter,” though the phrase itself almost sounds too simple for the scale of devastation being described.

The consequences outlined in scientific simulations were extraordinary. Temperatures across major agricultural regions could fall dramatically within weeks. Growing seasons would shorten or disappear entirely in some parts of the world. Rainfall patterns could become severely disrupted, while frost conditions might appear during periods traditionally associated with crop growth. Wheat, corn, rice, and soy production would decline simultaneously across multiple continents, creating a synchronized collapse unlike anything modern economies were designed to survive.

What makes this possibility especially catastrophic in 2026 is the structure of contemporary civilization itself. Modern societies are built upon tightly interconnected supply chains operating with remarkable efficiency but very little redundancy. Large urban populations depend on continuous transportation networks, imported food, fuel distribution systems, refrigeration infrastructure, and stable international trade routes to maintain ordinary daily life. The abundance visible inside supermarkets creates the illusion of permanent security, yet many cities possess only limited food reserves capable of supporting their populations for short periods without resupply.

Once agricultural output begins failing internationally, governments would almost certainly prioritize domestic survival over global cooperation. Export restrictions would emerge rapidly. Shipping routes could become militarized or inaccessible. Financial systems would destabilize under panic conditions, while fuel shortages would further damage transportation and farming operations. Nations heavily dependent on food imports would face immediate humanitarian crises, but even agricultural powers would struggle once climate disruption and supply chain fragmentation intensified simultaneously.

Several modern studies examining nuclear famine scenarios estimate that billions of people could face starvation following a large-scale nuclear exchange. Some projections, revisited in light of newer climate data and current population levels, suggest mortality rates so extreme that they challenge the imagination. This is partly why historical American government assessments discussing potential death tolls approaching ninety percent of humanity continue attracting renewed attention today. The figure sounds almost impossible to comprehend until one begins analyzing how dependent modern civilization truly is on environmental stability and uninterrupted agricultural production.

There is also a psychological dimension to these discussions that experts rarely address publicly in direct terms. Human beings often assume technological sophistication automatically guarantees resilience. The modern world appears powerful because it possesses satellites, artificial intelligence, advanced medicine, digital communication, and industrial automation. However, none of those systems can function normally without stable energy networks, functioning governments, predictable climates, and access to food. Civilization may appear technologically invincible while remaining biologically fragile underneath.

Historical examples repeatedly demonstrate that famine destabilizes societies faster than almost any other force. Political institutions that appear permanent during periods of abundance can deteriorate with astonishing speed once populations begin competing for survival. Social trust erodes rapidly under conditions of scarcity, and governments facing mass hunger frequently resort to emergency powers, censorship, militarized distribution systems, or violent repression in attempts to preserve order. The concern among researchers is not merely that people would suffer physically after a nuclear conflict, but that the organizational foundations of civilization itself could begin disintegrating under sustained environmental pressure.

The Most Dangerous Illusion Of The Twenty-First Century

Perhaps the most unsettling aspect of the modern nuclear dilemma is the persistence of a belief that rational actors will always prevent ultimate catastrophe. Nuclear deterrence theory has long depended upon the assumption that political leaders understand the unacceptable consequences of escalation. For decades, this logic arguably prevented direct conflict between major powers. However, contemporary geopolitical conditions have introduced forms of instability far more unpredictable than those defining much of the Cold War.

Cyberattacks, artificial intelligence-assisted military systems, disinformation campaigns, autonomous weapons development, regional proxy wars, and instantaneous digital propaganda have dramatically accelerated the speed at which crises evolve. Decision-making environments have become saturated with uncertainty, misinformation, and political pressure. Under such conditions, the possibility of miscalculation increases substantially. Many historical catastrophes did not emerge because leaders consciously desired apocalypse; they unfolded because governments believed escalation remained controllable until events moved beyond anyone’s ability to contain them.

This fear now shapes many contemporary security discussions behind closed doors. Analysts increasingly worry less about intentional world-ending war and more about uncontrolled escalation arising from regional conflict, technological failure, accidental launch detection, or political desperation during moments of extreme instability. The existence of thousands of nuclear warheads means humanity continues living inside a system where a relatively small number of decisions made within minutes could alter the trajectory of civilization permanently.

The deeper tragedy is that modern society possesses enough scientific knowledge to understand these risks with remarkable clarity while simultaneously lacking the political unity necessary to eliminate them completely. Humanity has mapped the environmental consequences, modeled agricultural collapse scenarios, studied historical famines, and analyzed strategic escalation pathways extensively. The danger is not hidden ignorance. The danger is collective normalization.

For years, nuclear weapons survived in public imagination mostly as symbols rather than active threats. In 2026, that perception has begun changing again. What once felt theoretical now appears uncomfortably plausible to many researchers observing the deterioration of international stability. The silence surrounding these fears should not be mistaken for safety. In many ways, silence may simply reflect how accustomed humanity has become to living beside mechanisms capable of ending the modern world.

The Hunger That Would Rewrite Human History

For most people living in industrialized nations, hunger exists as an abstract concept rather than an immediate fear. Supermarkets remain illuminated throughout the night, delivery systems function with mechanical precision, and food arrives so consistently that modern consumers rarely consider the extraordinary infrastructure required to sustain this daily normality. Entire generations have grown up inside societies where scarcity feels temporary and manageable, something associated with distant humanitarian crises rather than a condition capable of consuming advanced civilizations. This psychological distance from famine may explain why discussions surrounding nuclear conflict still focus overwhelmingly on explosions instead of agriculture.

Yet among climate scientists and food security researchers, the central nightmare has increasingly shifted away from the battlefield itself. The deeper fear concerns the months and years following the initial detonations, when collapsing harvests begin interacting with fragile political systems and overstretched global supply chains. In this scenario, the bombs become only the beginning of the disaster rather than its conclusion.

A Planet Running Out Of Sunlight

Recent studies examining large-scale nuclear conflict suggest that the atmospheric consequences could emerge faster than most populations would expect. Massive firestorms generated by burning urban centers, oil facilities, industrial complexes, and transportation infrastructure would inject soot into the upper atmosphere on a scale modern civilization has never experienced directly. Once suspended in the stratosphere, these particles could reduce the amount of sunlight reaching agricultural regions across the planet for extended periods of time.

Even relatively small temperature declines can devastate food production when they occur globally and simultaneously. Agriculture depends upon stability more than abundance. Crops evolve around predictable seasonal rhythms, specific rainfall patterns, and narrow temperature windows that determine germination, growth, and harvest cycles. Sudden climatic disruption affecting multiple breadbasket regions at once would trigger cascading failures impossible to offset through ordinary trade mechanisms.

Wheat production in North America, rice cultivation across Asia, corn yields in major exporting nations, and soybean harvests supporting livestock industries could all experience severe declines within the same agricultural cycle. Fisheries might collapse as ocean ecosystems react to cooling temperatures and contamination, while livestock production would suffer from both feed shortages and infrastructure breakdown. Nations that currently import large portions of their food supplies would face immediate humanitarian emergencies, but even countries traditionally considered agricultural powers would struggle to maintain internal stability under prolonged climate disruption.

One of the most disturbing conclusions emerging from famine modeling is that modern civilization possesses remarkably little resilience once synchronized global shortages begin appearing. International trade networks function efficiently during normal conditions precisely because they rely on predictability. Under extreme pressure, however, governments tend to abandon cooperative frameworks rapidly in favor of domestic preservation. Export bans would likely emerge within days of confirmed agricultural collapse. Strategic grain reserves would become politically weaponized. Transportation systems already strained by fuel shortages and economic panic could deteriorate rapidly, preventing aid distribution even when supplies remain technically available.

History offers numerous examples of societies destabilized by food insecurity, but the modern world has never experienced simultaneous scarcity affecting billions of people across multiple continents. During previous famines, unaffected regions could still provide assistance or maintain economic stability. A nuclear-induced agricultural collapse would remove that possibility almost entirely because every major nation would confront variations of the same crisis at once.

The social consequences become difficult to calculate precisely because they extend beyond starvation itself. Large urban populations dependent on uninterrupted food deliveries would likely experience panic within weeks of sustained shortages. Financial systems could freeze as governments impose emergency controls. Mass migration, civil unrest, organized violence, and authoritarian crackdowns would become increasingly probable as political institutions struggle to preserve order. Under such conditions, mortality would rise not only from hunger but from disease outbreaks, collapsing medical systems, infrastructure failures, exposure during extreme winters, and violent conflict over remaining resources.

Why The Twenty-First Century Could Be Less Prepared Than The Cold War

There is an uncomfortable irony hidden within modern discussions about civilization and progress. Technologically, humanity has never appeared more advanced. Artificial intelligence systems can process extraordinary quantities of information, satellites monitor climate activity in real time, and global communication networks connect billions of people instantly. Yet beneath this technological sophistication lies a level of systemic dependency that may actually increase vulnerability during extreme crises.

Cold War societies, despite living under constant nuclear anxiety, often possessed stronger local manufacturing capabilities, larger strategic reserves, and populations more psychologically familiar with rationing or national emergency planning. In contrast, contemporary economies operate through highly optimized global supply chains designed for efficiency rather than resilience. Many industries maintain minimal redundancy because uninterrupted trade and stable geopolitical conditions became normalized assumptions after decades of globalization.

This efficiency creates enormous fragility. A disruption affecting fuel, transportation, fertilizer production, semiconductor manufacturing, or energy infrastructure can rapidly spread through multiple sectors simultaneously. Agriculture itself has become deeply industrialized and dependent on advanced logistics systems. Modern farming requires machinery, synthetic fertilizers, pesticides, refrigeration networks, digital coordination systems, and stable access to fuel. Once several of these components begin failing together, food production declines far more dramatically than many people assume.

Another factor rarely discussed publicly involves population density. The global population now exceeds eight billion people, with massive concentrations living inside urban environments unable to sustain themselves independently for extended periods. Cities function because surrounding systems continuously move food inward and waste outward. Remove those systems long enough and urban civilization becomes extraordinarily difficult to maintain peacefully.

Researchers studying nuclear famine scenarios increasingly emphasize that the world entering such a crisis would already be politically and environmentally strained beforehand. Climate change has intensified droughts, floods, heatwaves, and agricultural unpredictability across several continents. Economic inequality has deepened social tensions within many nations, while migration pressures and regional conflicts continue destabilizing vulnerable areas. In this context, a large-scale nuclear exchange would not strike a healthy and stable international order. It would strike a world already showing signs of exhaustion.

Perhaps this is why certain historical government assessments produced mortality estimates that appear almost surreal to ordinary readers. The projections were not based solely on blast casualties. They reflected broader systemic collapse involving food insecurity, governance failure, economic fragmentation, environmental destabilization, and prolonged humanitarian breakdown. Once those variables interact globally, the number of potential deaths rises with terrifying speed.

The greatest misconception surrounding nuclear war may therefore be the belief that survival depends primarily on avoiding the initial explosions. In reality, the long-term environmental and societal consequences could determine humanity’s future far more decisively than the first hours of destruction. The bombs themselves would last minutes. The famine afterward could reshape civilization for generations.

Tyler Durden Fri, 05/08/2026 - 23:25

The Rise Of AI Writing And The Decline Of Human Voice

The Rise Of AI Writing And The Decline Of Human Voice

Artificial intelligence has become a powerful writing assistant, helping people draft emails, essays, marketing copy, and social media posts in seconds. But as these tools grow more popular, researchers are raising concerns about an unintended consequence: AI may be changing not just what we write, but how we communicate altogether, according to Axios.

New research suggests that widespread use of large language models is making language more uniform. A study conducted by University of Southern California found that after the release of ChatGPT, diversity in writing styles declined across several forms of communication, including scientific publications, local journalism, and social media posts. Researchers observed fewer differences in vocabulary choices and sentence patterns, pointing to a growing preference for polished, formulaic language.

Axios writes that the influence appears to extend beyond writing. Researchers at the Max Planck Institute for Human Development analyzed more than 740,000 hours of spoken and written material and found that certain words commonly associated with ChatGPT responses are appearing more frequently in everyday communication. Words like “delve,” “meticulous,” “boast,” and “comprehend” have become increasingly common, suggesting AI-generated language may be shaping human speech habits as well.

Morteza Dehghani, who led the USC research, believes this shift is happening because people are becoming familiar with a specific type of polished communication. “People get used to this idealized, very predictable form of language, and even people who are not using it, in order to have that sense of powerful, influential writing, they start writing more like LLMs,” he told Axios.

Not everyone sees that as progress. Alex Mahadevan of the Poynter Institute for Media Studies argues that AI-generated content often feels empty despite being technically sound. He described it as noticeably “soulless” and “mediocre,” adding, “There’s no art in it.”

For Emily M. Bender, the concern is personal as well as cultural. The University of Washington linguist said she avoids AI-generated writing whenever possible, explaining, “I do my very best not to read any synthetic text.” However, she admitted that identifying it is becoming increasingly difficult: “oftentimes people will send me something and I won’t know.”

That challenge may only grow as AI adoption accelerates. According to a 2025 survey from the Brookings Institution, nearly one-third of small businesses now use AI tools for customer service and outreach, while 16% of individuals report using large language models for communication and social media content.

Bender warns that the pursuit of flawless AI-style writing could create what she calls the “‘LinkedIn average,’” where communication becomes polished but generic. Mahadevan echoed that frustration, saying he misses “good bad writing,” the kind of imperfect but memorable work that reflects real human personality. He admitted that AI’s growing presence has even made him second-guess his own style: “I have been second-guessing myself, thinking, ‘well, sh*t, is someone going to think this was written with AI?’”

At the heart of the debate is a larger question about what writing actually does for people. Bender argues that writing is more than producing clean sentences—it helps people process ideas and sharpen their thinking. “There is value in the struggle of writing, because we learn to express ourselves, and we learn to do the thinking that happens as we’re writing,” she said.

As AI tools become a permanent part of modern communication, experts say the challenge will be maintaining individuality in a world increasingly shaped by machine-generated language. “Each time we choose not to do that, we are losing out, both individually and societally,” Bender says.

Tyler Durden Fri, 05/08/2026 - 23:00

Gold, Debt And The Inevitable Global Housing Market Crash

Gold, Debt And The Inevitable Global Housing Market Crash

Authored by Brandon Smith via Alt-Market.us

Maybe the most prominent economic discussion circulating today is the fear that the vast majority of people have been priced out of housing markets for the rest of their lives, regardless of the country they live. Gen Z and even Gen Alpha teens are already planning for a future in which buying a home is impossible. Those that are buying are aiming for cost efficiency and they are buying alone (prioritizing savings and home ownership over marriage).

This is a subject for another article but it represents a reversal in traditional consumer behavior; a sea change that needs to be examined because it reflects greater underlying social and economic struggles.

This struggle is not only happening in the US; all across the western world from Australia to Canada to most of Europe people are facing the worst home price inflation in decades and they’re scrambling to find ways to adapt.

That said, just as in physics, there are rules of motion that still apply to markets regardless of government or central bank intervention. What goes up must inevitably come down. There’s been an interesting development in the past year, specifically on the sellers side of the housing equation, and it signals big changes in the near term.

Because of the pandemic, the relocation panic, Covid stimulus and corporate buyers, prices were juiced across the board and the average cost of a home skyrocketed by 50% or more from 2019 to 2024.

A large portion of this buying involved people trying to escape draconian blue state mandates, but there were a lot of speculators trying to play the market and make a quick buck in the expectation that prices would continue rising. Instead, demand has crashed and there are limited buyers to meet the supply.

Google searches for “can’t sell my house” hit an all time high last month surpassing the peak of the crash of 2008. Housing sales have dropped by 32% from 2020 to 2026 while supply has spiked. Realtors have been warning of a massive slowdown, with many sellers refusing to read the room and cut prices as they struggle to find interested buyers.

The reason for the impasse and the frozen market is largely because of debt. In 2008, the crash was caused by easy mortgage loans to people who did not have the income to cover costs attached to ARM mortgages that ratcheted up interest rates over time. Millions of homes were sold to people that didn’t have the income to buy and they defaulted all at once, crashing the system and the derivatives tied to it.

Today, millions of homeowners are locked into ultra-low mortgage rates from previous years. Selling would mean giving up a 3% loan and replacing it with one closer to 6.5%. So they don’t sell.

Beyond that, too many owners bought at the peak of the pandemic rush and the peak of pricing. Now they are stuck trying to sell $250,000 homes for $600,000, and $500,000 homes for over a million dollars. To sell at a steep discount would be essentially the same as accruing even more debt.

The problem is, NO ONE wants to buy a house for $600,000 when they know it’s only going to be worth $250,000 in a few years. In the end, the speculators are left holding the bag and there’s only two options left – Put their excess homes on the rental market, or, cut their prices dramatically and take the loss. I believe this is going to start happening in an accelerated fashion within the next year, even if there is a government or central bank intervention.

Inflationary stimulus is not going to save the housing market this time.

This means considerable losses in home equity and the overall net worth of the population, not to mention a heavy decrease in mortgage loans and credit liquidity. Less credit access means a consumer slowdown. In the case of corporate buyers and banks, a stimulus package might protect them, but not average citizens.

Where there is no liquidity, there is a crash. For now money seems to be moving at a healthy pace, but this is largely in the stock market which is not representative of a stable economy. Stocks are not a leading indicator of crisis; they are always late to the party. By extension, stocks are not going to signal a future crash in housing, nor are they going to pick up on the throttling of buyers taking place right now.

Can this eventual plunge be managed? Yes, to a point, but not at a global level, only at a national level. And, even then it’s not going to change the ultimate outcome, which is concrete losses in liquidity and a spike in debt.

For people waiting to purchase a home this could be good news. Price cuts of 30% to 50% are possible and well overdue. That said, buyers will likely wait out the storm until they think prices have hit bottom. In the meantime there is a danger of post-crash systemic risk to stocks and credit markets. Investors will be looking for a safe haven alternative.

This brings us to a trend that’s been developing over the past couple years that we have not seem since the crash of 2008-2012. That crash coincided with a historic gold and silver surge and the same pattern is surfacing again. During narrow periods of heightened uncertainty, property might no longer represent a secure place for people to park their cash. When markets are in a panic and other hard assets are in decline, precious metals become the go-to investment.

Despite the wild fluctuations in the past couple months, gold is still up 270% since 2019 and is likely to continue climbing even as housing markets fall. The reason is simple: Consumer debt has continued to grow despite central bank interventions and increased interest rates. These measures were supposedly meant to reduce consumer borrowing, but that didn’t happen.

And, as debt grows, precious metal values invariably climb (inflation through stimulus does not need to be present, but it usually is).

US housing debt has shot up 38% since 2019. US consumer credit card debt has climbed 35% since 2019. The US national debt has climbed 71% since 2019. Property used to offer a safe haven for debt- exposed markets, but this is ending. There are very few secure places left in this environment. IF stock markets take hit (as they probably will), precious metals is one of last bastions of security.

There is definitely a correlation trend taking place which seems to echo the 2008-2012 crisis. Every time US housing prices dip or slow sharply, gold and silver prices typically rise.

As noted, it’s not just the US facing a housing market crash. Reports suggest conditions are even worse in Canada, Australia, the UK and most of Europe. In Canada, for example, leftists from the US have gone in search of alternative residency in order to “flee the Trump regime” only to come crawling back in desperation after dealing with unprecedented housing costs.

In the UK, housing for median income earners barely exists, even if they want to rent. In Australia, the median home price is around $700,000 (in the US, the median home price is $415,000). There’s really no escaping this trend unless you want to live in a third world country. And, ironically, those people are not too happy to see westerners moving into their backyards right now.

On top of the inflationary conditions for home buyers, there’s the mass invasion of illegal migrants into the west over the past decade and this has eaten up the rental markets and driven up prices further. Deportations could help alleviate some of the pressure, but this will also act as a catalyst to speed up housing depreciation. For home owners, a substantial loss of equity should be expected.

In the end the pain is necessary; something has to give. There needs to be a debt reconciliation and the economy needs to take its medicine (a deflationary event). Currently, buying has stabilized after years of decline, but we still have a long way to go before demand and supply are balanced.

It’s doubtful that central banks, built entirely on Keynesian interventionism, will allow this to occur without interference. They will eventually step in with more stimulus, which, again, means ever increasing gold and silver values. For now, the smart move for people looking to buy property (or protect their savings) is to rent until this process plays out, and perhaps invest in precious metals in the meantime as a hedge.

Homeowners should also think about investing a portion of savings into precious metals to offset losses caused by plunging property values. The status quo is ripe for an earthquake.

Tyler Durden Fri, 05/08/2026 - 22:35

DOE's NNSA Removes Enriched Uranium From Venezuela And Japan

DOE's NNSA Removes Enriched Uranium From Venezuela And Japan

The Department of Energy's National Nuclear Security Administration (NNSA) has coordinated with Japan and Venezuela to remove enriched uranium from both countries. 

The NNSA coordinated with Japanese government and nuclear agencies to transfer 1.7 metric tons of high-assay low-enriched uranium (HALEU) from Japan to the US. The material comes from excess supplies at the recently shut-down test reactor in Japan. 

Japan has not completely ceased research into new reactor technology, and instead will focus on the Joyo research reactor. There is a long-standing coordination between the US and Japan to offload excess quantities of enriched uranium due to proliferation concerns.

Typical commercial reactors run on low-enriched uranium (LEU) which is typically enriched to 3-5%. The percentage of enrichment indicates how much of the fuel is actually usable for fission; the amount of U-235 isotopes present in the uranium mix. 

Some of the advanced reactors and currently operating research reactors across the world use HALEU, enriched up to 20%. Enrichment levels beyond that are considered weapons grade and only used for military reactors and nuclear weapons development. 

The HALEU that was imported from Japan will be repurposed and utilized in advanced reactors being developed under the DOE's Reactor Pilot Program and other research efforts.

For context, the amount of enriched uranium brought over from Japan is likely enough to fuel only one microreactor for one full operating cycle. Centrus Energy also currently produces 900kg/year of HALEU at their Piketon facility, with a massive expansion effort currently underway. 

Immediately following the Japan announcement, the NNSA declared all the highly enriched uranium (HEU) was successfully removed from Venezuela. The material was left over from a research reactor program in Venezuela that shut down in 1991. 

The HEU has been transported to the Savannah River Site for processing and reuse, potentially to also be included in future DOE programs 
 

Tyler Durden Fri, 05/08/2026 - 22:10

Global Jet Fuel Exports Hit 10-Year Seasonal Low in April

Global Jet Fuel Exports Hit 10-Year Seasonal Low in April

Submitted by Tsvetana Paraskova of OilPrice.com

Global seaborne jet fuel exports crashed to a seasonal low in April as supplies remained trapped in the Middle East and Asian refiners slashed run rates amid lower crude availability, energy flows analytics firm Vortexa said in a report on Friday.

Global seaborne exports of jet/kerosene fuels slumped to as low as 1.1 million barrels per day (bpd) in April, down by 630,000 bpd from the same month last year. That's also at the lowest end of the ten-year range between 2016 and 2025, Vortexa's freight tracking data showed.

The crash in exports of jet fuel – which is the most stressed barrel during the ongoing supply shock – was not unexpected. Supplies of the fuel from the Middle East cannot move past the Strait of Hormuz, while Asian refiners slashed exports amid reduced run rates and preference and/or orders to keep more supply for their respective domestic markets.

Jet fuel supplies from Northeast Asia and India West Coast crashed and tightened the global jet fuel market so much that officials and airline executives started talking about fuel shortages in a few weeks’ time.

Fatih Birol, executive director of the International Energy Agency (IEA), warned in mid-April that Europe has “maybe six weeks or so” of remaining jet fuel supply.

Following the slump in global flows in April, exports are set to rebound from May and June as some Asian countries and refiners will be exporting more barrels amid high margins, Ivan Mathews, Head of APAC Analysis at Vortexa, wrote.

A rebound in Northeast Asia’s jet fuel exports would be led by South Korea, which could raise refinery utilization as crude arrivals to the country are expected to recover to about 80% of pre-war levels in May, according to Mathews.

Moreover, the expected rise in jet fuel supplies from Asia in May could lead to arbitrage flows to the U.S. West Coast and Northwest Europe, the analyst said.

While higher Asian supplies would drive a modest recovery in global jet fuel exports in the coming months, incremental exports from Asia are unlikely to fully offset in the near term lost supply from the Middle East, Mathews noted.

“Until seaborne flows normalise, jet/kero cracks are expected to remain elevated relative to other refined products, incentivising refiners to maximise jet fuel yields at the margin.”

 

Tyler Durden Fri, 05/08/2026 - 21:45

Is Marco Rubio The New Heir Apparent To Trump?

Is Marco Rubio The New Heir Apparent To Trump?

For months, the conventional wisdom inside Republican circles has been settled and simple: JD Vance is next. The vice president has led 2028 Republican presidential nomination polling by a country mile, averaging nearly 45.5 points in the RealClearPolitics aggregate — more than 30 points ahead of Donald Trump Jr. at 14.8% and Marco Rubio at 14%.

And yet, something shifted this week. One press briefing, and the betting markets started hedging.

Rubio stepped in as White House press secretary on Tuesday, covering for Karoline Leavitt while she’s on maternity leave, and delivered what even the skeptics had to acknowledge was a polished, commanding performance. He defended the war in Iran before a press corps not exactly known for its generosity toward administration officials — and walked away with his standing improved. The room, by most accounts, was notably less adversarial than it tends to be when Leavitt or Trump takes the podium. Rubio was fluid and measured, giving the journalists little to sharpen their teeth on. 

Washington noticed, and Kalshi, one of the leading prediction markets, noticed too. 

By Tuesday, Rubio had leapfrogged Vance to become the overall favorite to win the 2028 presidential election, coming in at 18% to Vance's 17%. Gov. Gavin Newsom sits just behind at 16% - a reminder that the Democrats haven't entirely vacated the field in the markets' eyes.

For Rubio, the jump is particularly striking given that he was sitting in the single digits on Kalshi earlier this year. 

Polymarket still has Vance in front overall - 19.6% to Newsom's 16.7% and Rubio's 15%. 

On the GOP nomination question specifically, Vance retains a meaningful edge on Polymarket (though Rubio's odds are rising). Primary voters and general-election bettors, it turns out, are pricing these things very differently.

None of this, of course, happens in a vacuum. Trump himself has been notably careful — or deliberately noncommittal — about who carries the MAGA torch after January 2029.

Weeks into his second term, Trump sat down with Fox News's Bret Baier and declined to designate Vance as his heir apparent, saying simply that it was too early for such an endorsement. For a president who has never been shy about anointing winners and losers, that hesitation was conspicuous to say the least. He left the door ajar, and markets being markets, traders are now watching to see who walks through it.

Vance remains the favorite by most conventional metrics. His polling advantage is enormous, and he’s been the heir apparent since joining the Trump ticket in 2024. 

But Rubio's trajectory is definitely worth watching to see if his stock goes higher or merely plateaus. His rise from the low single digits to within striking distance of Vance on Kalshi over just a few months could be a one-off or the opening act of a longer repositioning.

For now, Vance’s commanding polling lead offers the most grounded picture of where Republican voters actually stand.

But, prediction markets have a knack for capturing things polls don’t. And it will likely take some time to determine if Rubio’s rise will stick.

Tyler Durden Fri, 05/08/2026 - 21:20

Is There More Risk Than Reward In The US–China Summit?

Is There More Risk Than Reward In The US–China Summit?

Authored by James Gorrie via The Epoch Times (emphasis ours),

Do the advantages of the U.S.–China summit still outweigh the disadvantages?

Perhaps, but the negative risks are high.

President Donald Trump (left) and Chinese leader Xi Jinping shake hands before their meeting at Gimhae International Airport in Busan, South Korea, on Oct. 30, 2025. Mark Schiefelbein/AP Photo

The scheduled May 14–15 summit in Beijing between President Donald Trump and Chinese leader Xi Jinping was intended to be a landmark “reset” between the two nations. But as the high-stakes game of chicken unfolds between Washington and Beijing, there may be more reasons not to meet than to carry on with the summit.

Why would that be?

In both principle and practice, the U.S.–China relationship has moved beyond mere trade friction into the realm of indirect military confrontation. In both countries, there are challenges on the internal political, economic, and social fronts, as well as global reputations at stake.

Any one of a number of potentially explosive geopolitical triggers could justify a second delay to the meeting.

The Hormuz Flashpoint: Chinese Weapons Threatening the US Navy?

Of course, the escalating naval war in the Middle East is one of the main reasons for the summit—and for why it may not happen.

Reports indicate that China’s transfer of “carrier-killer” anti-ship missiles to Iran could enable Iranian forces to strike a U.S. Navy vessel. If such an attack were to occur, the political optics for Trump would be disastrous. Not only would American lives and ships be at risk, but Trump’s humiliation in Beijing would be seen by the entire world.

Furthermore, at least one Chinese tanker has passed through the U.S.-led blockade of the Strait of Hormuz in April, to the distaste of the Trump administration.

For Trump, who prides himself on “strength,” does it make sense to shake hands with a leader whose technology just “painted a target” on American sailors and violated a U.S. blockade?

At the same time, the U.S. blockade, combined with the Iranian-led security controls, has made the strait a high-risk zone, even for Chinese-flagged or linked vessels. In fact, on May 4, a Chinese-owned tanker was hit by Iran, and according to some reports, several people were wounded, and the vessel was damaged.

Beijing Doubling Down on Iran

The war in Iran is both harming the Chinese regime and deepening its presence in the region. That won’t be bargained away. With fundamental disagreements on the future of Iran, there’s little, if any, prospect for long-term upside, with high risk and low probability of even short-term success.

For instance, from Beijing’s perspective, will China agree to stop buying Iranian oil or stop supplying Tehran with war materiel?

Why would Xi allow himself to be humiliated by hosting the man who kicked China out of Panama and Venezuela, and now potentially Iran?

Trade, of course, is the answer. But Trump has shown that redirecting China’s trade and manufacturing to the United States is a top priority. Therefore, any agreements are unlikely to change those objectives in the long term.

U.S. forces patrol the Arabian Sea near M/V Touska on April 20, 2026. U.S. Navy via Getty Images Israel and the Overland ‘Silk Road’ Conflict

As the U.S.–Israel coalition continues to attack Iran and the surrounding areas, the Israeli attacks have spilled over into China’s critical supply lines. The Israel Defense Forces has reportedly begun striking China’s overland supply line, its railroad in Iran, viewing it as a lifeline for the Iranian regime.

This action by the Israelis moves the conflict from a proxy war with Iran to a direct assault on Beijing’s Belt and Road Initiative assets and relationships.

Regardless of its diplomatic rhetoric, Beijing will have to respond.

Any response could potentially move China into a deeper role in the war, transitioning from a neutral mediator to an active adversary of the U.S.–Israel axis. That fact alone will make the summit more awkward and confrontational, as Beijing is forced to defend its infrastructure against American-aligned forces.

Xi Faces a Perfect Storm of Multiple Risks

Xi is facing a perfect storm of dissent on multiple fronts.

Financial disruptions and acute shortages in the wake of the Hormuz Strait blockade have triggered multiple, visible public protests against the ruling Chinese Communist Party (CCP). These events are censored, but they are happening with more frequency.

Economically, the structural slowdown in China’s economy has shifted from a “soft landing” to a hard reality, with 30 percent of China’s industrial companies operating at a loss, even as the debt-to-GDP ratio continues to rise to 300 percent.

Politically, with the 21st Party Congress approaching in 2027, Xi is in a precarious position, having to consolidate power with a depleted and purged People’s Liberation Army, while his “China Dream” is being undermined by the war in Iran. Every day the war continues, communist China’s geopolitical reputation and its economy grow weaker.

Geopolitically, there is the risk of Iran falling while Trump visits Beijing, or a massive U.S. attack on Iran during the meeting. Either would be a humiliation that Xi may find difficult to politically live down, especially given that confidence in Xi within the CCP has been waning for years.

Why would Xi take the risk of looking weak while the whole world is watching him hosting and toasting Trump? Xi must be planning to avoid this, but how?

A woman looks at a banner about the "China Dream," Chinese leader Xi Jinping's vision for China's future, in Beijing on July 7, 2015. Greg Baker/AFP/Getty Images Trump’s ‘Art of the Deal’ Versus the ‘Weakness’ Trap

Perhaps the most significant psychological factor is Trump’s own brand. Many global critics and domestic opponents argue that the current global instability was “started” by his administration’s aggressive stance on Iran and trade.

But the instability in the Middle East was arguably expanded and deepened by the Biden administration, enabling the Iranian regime to fund multiple military proxies in the region and greatly enhance its military capabilities, significantly aided by China.

If Trump goes to Beijing now, he risks looking like a supplicant—a leader in need of Xi to “save” him from a widening war—giving him the appearance of needing Xi’s help to clean up the mess he made.

Could Trump use another delay as a negotiating tactic to signal that he is not desperate for a deal, especially if the negative optics of the deal outweigh the benefits?

Might Xi feel similarly?

Both are real possibilities.

Does Either Side Actually Want the Summit?

The reality is that both leaders are caught in a paradox.

For Xi, a summit offers a chance to stabilize trade, but he cannot appear to be yielding to “American hegemony” while he prepares for a fourth term. If he cannot guarantee a “win,” he would do better to cancel the summit and not give CCP critics fuel to further undermine his leadership.

For Trump, he wants the “Grand Deal” that would cement his legacy. But the “Art of the Deal” requires leverage. Right now, with the Iranian regime still in power, Trump’s leverage may be less than he thinks it is.

It’s likely that any real upsides may be short-lived and perhaps temporarily improve public relations with the rest of the world, but is that worth the downside risk for Trump or Xi?

We will soon see.

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

Tyler Durden Fri, 05/08/2026 - 20:55

What The Indiana Primaries Tell Us About Trump's Grip On The GOP

What The Indiana Primaries Tell Us About Trump's Grip On The GOP

Tuesday night’s primaries in Indiana were not subtle. Five of seven Republican state senators who had blocked a congressional redistricting map favored by President Donald Trump lost their primary races to Trump-backed challengers. The message, delivered cleanly through the ballot box, couldn’t have been clearer.

Twenty-one Republicans in the Indiana Senate voted against a new congressional map that would likely have added two GOP-leaning U.S. House districts. Eight of those dissenters were up for reelection this cycle, and seven drew primary challengers who carried Trump's explicit endorsement. By Tuesday night, the Associated Press had projected wins for at least five of those challengers. Only state Sen. Greg Goode managed to hold his seat among the targeted incumbents. The rest are heading for the exits.

Trump's play here was neither complicated nor ambiguous. He targeted members of his own party, not for ideological apostasy or opposition to his signature policies, but for refusing to help the GOP fight back against decades of Democrat gerrymanders. It was a demonstration of leverage and political capital, and it worked.

The incumbents who lost weren't rogue progressives or even moderate Republicans, either. They were conventional Republicans who had largely supported Trump on major national issues, and didn’t expect to become Trump targets. That calculation turned out to be wrong, and the lesson other incumbents will draw is obvious: the scope of what constitutes a disqualifying defection is wider than many assumed.

And there are likely to be other victims of Trump’s wrath.

In Kentucky's 4th Congressional District, Trump has endorsed Ed Gallrein against Rep. Thomas Massie, a Republican who has broken with the president on the Iran war, tariffs, and quit a few other things. In Louisiana, Trump is backing Rep. Julia Letlow against incumbent Sen. Bill Cassidy, a physician who has pushed back against the administration's "Make America Healthy Again" agenda. Both of those incumbents were watching Indiana returns Tuesday night and learning something about their own futures.

CNN’s Scott Jennings made it clear that the elections signaled who controls the Republican Party… It’s Trump all the way.

"He's the boss of the party. He calls the shots in the Republican Party, and if you go against that, he will pour his wrath out upon you, and it doesn't typically turn out well." Jennings said.”If you look at what happened in Indiana tonight, and you're Thomas Massie tonight, or you're anybody else in a primary right now where Trump's on the other side of you, you've got to be thinking, this is a bad night for me."

The underlying data on Trump's standing inside the party makes all of this easier to understand, if no less striking. Back in March, an NBC News poll found that Trump had a 100% approval rating among MAGA Republicans - a number that CNN analyst Harry Enten flagged as essentially without precedent. "You don't have to be a mathematical genius to know you can't go higher than one hundred percent," Enten said. He was careful to note the distinction: "Now, there are some Republicans who disapprove of Donald John Trump, but they are not members of the Make America Great Again movement. The bottom line is this: if you are a member of MAGA, you approve of Donald Trump."

That's the context in which Tuesday's results make complete sense. Trump's grip on the GOP isn't merely rhetorical or cultural — it is electoral and operational. Indiana showed that the president is willing to spend political capital on state-level races to advance his agenda, even if tangentially. For Republican incumbents nationwide who have crossed him or are contemplating doing so, that combination — willingness and effectiveness — should worry them.

Tyler Durden Fri, 05/08/2026 - 20:30

UCLA Med School Illegally Using Race In Admissions: DOJ

UCLA Med School Illegally Using Race In Admissions: DOJ

A DOJ investigation into the University of California–Los Angeles (UCLA) found its medial school allegedly used applicants' race to discriminate against white and asian candidates

Royce Hall on University of California, Los Angeles, campus is seen in Los Angeles on Aug. 15, 2024. AP Photo/Damian Dovarganes, File

In a seven-page letter released on Wednesday, the agency’s Civil Rights Division wrote that UCLA "continues to intentionally discriminate against applicants based on their race after the Supreme Court’s decision in Harvard by granting and denying admission on the basis of race," citing a 2023 decision - Students for Fair Admissions vs. Harvard - which barred race-conscious admissions at colleges and universities, but still allowed schools to consider how race affected students if they wrote about their experiences in essays. 

The finding is the latest salvo in the clash between the Trump administration and woke institutions since last year, after federal investigators went after DEI initiatives in higher education.

"Racism in admissions is both illegal and anti-American, and this Department will not allow it to continue," said Assistant Attorney General Harmeet K. Dhillon of the U.S. Department of Justice’s (DOJ) Civil Rights Division.

The David Geffen School of Medicine at UCLA responded - saying its process was "based on merit and grounded in a rigorous, comprehensive review of each applicant." 

"We are confident in our practices and our mission to maintain access to a high-quality education to all qualified students," a spokesperson told the Epoch Times, which notes further: 

The medical school was reviewing the DOJ’s report and was “committed to providing equal opportunity to all applicants and fully complying with federal and state laws,” the spokesperson said.

The DOJ issued a letter to the university’s medical school on May 6 notifying officials of the school’s failure to comply with federal civil rights law for the 2023, 2024, and 2025 classes.

Federal law authorizes the DOJ to conduct periodic compliance reviews and investigations of practices and policies of institutions, such as UCLA, that receive federal funding.

A student walks near Royce Hall on the campus of UCLA in Los Angeles on April 23, 2012. Kevork Djansezian/Getty Images

The DOJ found the medical school’s internal policies, literature, and email correspondence to leadership consistently demonstrated its intent to use race as a factor in admissions despite a U.S. Supreme Court ruling in 2023 in Students for Fair Admissions v. Harvard that found race-based admissions programs were unconstitutional.

The medical school allegedly used different academic metrics to discriminate against all racial groups except black and Hispanic applicants to accept more black and Hispanic applicants into its program, according to the DOJ.

If the DOJ determines that the institution can’t voluntarily change its practices to comply with federal law, the DOJ may seek enforcement through the courts, according to the letter.

The school is also facing a class-action lawsuit filed in May 2025 by Do No Harm, a nonprofit organization opposed to “radical, divisive, and discriminatory ideologies” in health care and medical education.

In the lawsuit, the group also claims UCLA’s medical school has ignored federal law by discriminating against applicants based on race.

Tyler Durden Fri, 05/08/2026 - 19:40

Clinton-Appointed Federal Judge Rules DOGE's Terminations Of Humanities Grants Unlawful

Clinton-Appointed Federal Judge Rules DOGE's Terminations Of Humanities Grants Unlawful

Authored by Guy Birchall via The Epoch Times,

A federal judge ruled on May 7 that the Department of Government Efficiency’s (DOGE’s) termination of hundreds of humanities grants last year was unconstitutional and involved “blatant” discrimination.

In April 2025, the Trump administration axed more than 1,400 grants, amounting to more than $100 million in congressionally appropriated funds awarded to scholars, writers, research institutions, and other humanities organizations.

The move was part of a whirlwind cost-cutting drive that tech billionaire Elon Musk was leading at DOGE as a “special government employee”—a role that is term-limited to 130 days. Musk departed that role after completing his term in May 2025.

However, Bill Clinton-appointed District Judge Colleen McMahon, ruling at the U.S. District Court for the Southern District of New York, said that the administration “engaged in blatant viewpoint discrimination,” ruling in consolidated cases brought by the American Council of Learned Societies, the Authors Guild, and others.

McMahon said the terminations violated the First Amendment right to free speech and the Fifth Amendment, which confers equal protection.

She also ruled that DOGE did not have the legal authority to terminate the grants.

“What mattered to DOGE was not whether a grant lacked scholarly merit, failed to comply with its terms, or fell outside NEH’s [National Endowment for the Humanities] statutory purposes. What mattered was that the grant concerned a ’minority group,'” she ruled.

“DOGE swept in race and ethnicity – including grants concerning Black, Asian, Latino, and Indigenous communities – as well as national origin and immigration status; religion and religious identity (including Jewish, Christian, and Muslim subjects); sex; and sexual orientation, as criteria for grant termination.”

McMahon also said that DOGE staffers using ChatGPT to establish the rationale behind axing some grants would not absolve the government of responsibility for its decisions.

“The government cannot escape liability for DOGE’s work by scapegoating ChatGPT,” she ruled.

Neither DOGE nor the White House has yet responded to the ruling. The Epoch Times has contacted both for comment.

According to DOGE’s website, the department has saved an estimated $215 billion in taxpayers’ money since it was established in January 2025.

That figure amounts to around $1,335.40 per taxpayer, according to DOGE.

The department’s work has been met with other litigation since it began, with the Trump administration in March asking the Supreme Court for a second time to halt lower courts’ attempts to access information about DOGE’s inner workings.

The Supreme Court intervened in the case last year, ruling that lower courts’ orders for the government to turn over information about the department’s activities were overbroad. An appeals court has since asked for less information, but the government told the Supreme Court on March 23 that the requests were still intruding too much on executive branch powers.

“The court of appeals has continued to approve intrusive discovery against a presidential advisory body without adequate consideration for the separation of powers, the FOIA [Freedom of Information Act] statute, and this Court’s previous order,” the government’s filing stated.

The Citizens for Responsibility and Ethics in Washington sued DOGE last year after its FOIA requests were not honored.

The government has argued that DOGE is an advisory arm of the executive branch—not an agency—and is not required to submit to FOIA inquiries. But a district court in Washington ruled differently and ordered DOGE to comply with those inquiries.

The Supreme Court has yet to rule on the administration’s latest request.

Tyler Durden Fri, 05/08/2026 - 19:15

Thailand Emerges As Possible Hub In Nvidia Chip-Smuggling Channel To Alibaba

Thailand Emerges As Possible Hub In Nvidia Chip-Smuggling Channel To Alibaba

New details have emerged in the alleged AI chip diversion scheme involving the co-founder of Super Micro Computer.

Bloomberg reports that some of the $2.5 billion worth of servers containing advanced AI chips were allegedly routed through a Bangkok-based company before reaching Chinese AI leader Alibaba.

The Bloomberg report noted:

US prosecutors this year outlined a scheme in which Super Micro's co-founder allegedly worked with an unnamed Southeast Asian company and a "rotating cast" of third-party brokers to divert the AI semiconductors in violation of US trade rules.

The Southeast Asian firm the prosecutors didn't name, identified only as Company-1, is Bangkok-based OBON Corp., the people said.

Some of the $2.5 billion worth of servers sold to OBON allegedly went to Chinese AI leader Alibaba, according to the people, who requested anonymity to discuss a sensitive legal and geopolitical matter.

It is important to note that OBON is linked to Thailand's AI infrastructure buildout and the creation of Siam AI, Thailand's sovereign cloud champion.

Nvidia CEO Jensen Huang even appeared at a Siam AI event in December 2024, focused on sovereign AI. Siam AI's CEO, Ratanaphon Wongnapachant, said Siam AI was not involved and that he had left OBON when he launched Siam AI.

Washington has restricted exports of advanced Nvidia AI chips to China over national security concerns, leaving Chinese firms to either rent overseas computing resources or obtain chips through smuggling channels.

In mid-March, U.S. federal prosecutors charged three men: senior executive Yih-Shyan "Wally" Liaw, the co-founder; Ruei-Tsang "Steven" Chang; and Ting-Wei "Willy" Sun, with conspiring to divert $2.5 billion worth of Nvidia chips to China.

"OBON's purported involvement in the smuggling arrangement could deal a blow to Thailand's fledgling AI ambitions and reignite calls in Washington for restrictions on chip sales to the region," Bloomberg noted.

Shares of Super Micro have since recovered from the mid-March plunge that followed the co-founder's arrest by U.S. authorities.

Today's report outlines how Thailand's sovereign AI push may have served as a channel to smuggle advanced Nvidia chips to China.

Tyler Durden Fri, 05/08/2026 - 18:50

Traders Puzzled As Physical Oil Prices Tumble Amid Surging Chinese Crude Sales, Plunging Imports

Traders Puzzled As Physical Oil Prices Tumble Amid Surging Chinese Crude Sales, Plunging Imports

Yesterday when discussing China's unexpected flip-flopping on its decision to order local banks to ignore the latest US sanctions on Chinese, followed days later by a demand that they pause loans to sanctions refiners, we highlighted something remarkable: in the aftermath of the Strait of Hormuz blockade, which throttled the transit of ~10% of global oil and sent physical prices soaring to record highs (especially for Dubai crude), resulting in a windfall for European refiners thanks to soaring gasoline premiums... 

... the reaction in China was a mirror image, as already razor-thin independent refiner (teapot) margins plunged to record negative.

The reason for the margin collapse was China’s domestic fuel policy: it has long been Beijing's policy to soften price hikes to help shield consumers and avoid social unrest; which while beneficial to end consumers is catastrophic to refiners and processors who are prohibited from passing on rising costs. In other words, Chna’s "energy security" was the dominant theme, and if it meant an entire industry has to suffer huge losses if it continues to purchase oil and process it into various product grades.

Ordered to process as much available inventory as possible, that's what the refiners have done, and refining rates in Shandong province, China's hub for smaller refineries known as teapots, ramped up over April to the highest level in almost two years, as processing margins cratered to record negative levels meaning refiners are losing record amounts on every barrel they process

“I would not be surprised if the teapots are prioritizing politics over economics with an eye to their long-term survival,” said Erica Downs, a senior research scholar at Columbia University’s Center on Global Energy Policy. “They may be calculating that if they do their part to help China weather the energy crisis, then maybe they will build up some goodwill in Beijing.”

While Downs is right, and teapots are prioritizing politics, they are also certainly keeping an eye on economics to the extent they can avoid Beijing's wrath, and predictably the logical consequence of this centrally-planned policy to force "independent" refiners (who are not really independent if they have to do whatever Beijing instructs them) to make fuel at record losses to ensure energy security, is for them to slash purchases of Iranian crude.

Sure enough, Chinese crude oil imports have plunged: according to Vortexa, China's April imports plunged to a multi-year low of just 8.2 million barrels a day, down by about a quarter from a prewar level of around 11.7 million. The 3.5-million barrels a day swing almost matches the total consumption of Japan and is double the amount supplied by the United Arab Emirates pipeline that circumvents Hormuz. 

As Bloomberg's Javier Blas writes overnight, "simply put, it’s huge, perhaps the second- or third-largest factor rebalancing the oil market today, behind only Saudi Arabia’s own pipeline bypassing the strait and the use of the strategic petroleum reserves of the US and Japan."

The import drop might make sense if Chinese commercial inventories were falling sharply, or if Beijing had tapped its strategic petroleum reserves. But neither appears to be happening. Instead, commercial stockpiles have continued to increase in recent weeks, according to satellite data (of course, China is well known to manipulate all data and with the bulk of its 1.4 billion in strategic oil reserves located underground, it is impossible to trace flows definitively)

Meanwhile, as imports have collapsed, inventories at sea have piled up: Kpler reports that there are now about 16 million barrels on ships anchored in the Yellow Sea off the Chinese coast, almost 40% higher than the level prior to a US blockade of Iran’s ports in mid-April as oil that was ordered previously remains unused. 

There has been another complication: after the Iran war broke out, Beijing banned exports of refined products, effectively allowing refineries to process less crude to meet domestic demand. But the policy has now been reversed, suggesting the country sees enough fuel availability.

In any case, in recent weeks, Blas writes that amid this collapse in Chinese imports, industry executives have noticed something odd: Chinese state-owned oil companies have been reselling some of their oil cargoes to European and Asian rivals. The behavior suggests surpluses, which is "odd" to say the least during a supply shortage. Where is this excess oil coming from (for the answer, see below).

The shift has not only capped benchmark oil prices, but also helped to trigger a collapse in the premia that traders pay above them to secure physical crude. The immediate outcome has been a very beneficial one: physical barrels that in early April went for $30 above benchmark prices are now changing hands at premiums as low as $1. Talk of discounts has even started to emerge.

Underscoring this point, North Sea oil traders don’t appear as desperate for crude for immediate delivery anymore, compared to the panic buying of late March and early April

While the collapse in refining margins is a clear clue to the plunging oil imports, other questions remain: chief among them how is China importing far less crude than before without running down stocks? In the past, the country clearly bought more oil than it needed, building a huge emergency stockpile. Today, China has nearly 1.4 billion barrels in its reserves according to media reports, well above the 400 million of the US and Japan’s 260 million. As we reported in late 2025, China probably bought one million barrels a day more than it needed last year. By simply stopping beefing up the reserve, China can cut imports a lot without affecting its underlying oil needs.

The shift can explain, perhaps, a third of the import cut. But the rest? Here’s where oil traders speculate with different theories. One argument says that Chinese economic activity is weaker than previously thought, and thus oil consumption growth is also lower. What’s the catalyst for that slowdown? Perhaps the impact of the war on several of China’s clients in the region, including the Philippines, Vietnam and Thailand (just don't look for validation in Chinese economic "data" - like everything else, it took is centrally planned and Beijing would never confirm its economy is being hit due to the Iran war as that would mean reduced political leverage).

Separately, the increase of electric vehicles, improved public transportation and the option of working from home have made Chinese households better able to cope with higher oil prices.

Unlike most other nations in the region, China hasn’t announced any emergency action to rein in demand, like adopting a four-day work week for government employees or promoting carpooling.

The IEA estimates that Chinese oil demand slipped into a modest year-on-year contraction in both March and April, down by about 110,000 barrels a day to about 17 million barrels. While the drop is impressive when compared with the exuberant growth of the country’s consumption in the past, it isn’t nearly enough to explain why imports have fallen so much.

It is certainly possible that Chinese oil demand has been contracting far more sharply than currently thought, The key, Blas reckons, is the inscrutable petrochemical industry - the sector that has contributed the majority of oil consumption growth over the last five years. In petrochemicals, China is unique. On top of its traditional industry that uses oil and natural gas as feedstock, it has parallel production that relies on coal.

Since the war started in late February, coal-to-chemicals profit margins have improved markedly. The industry had typically operated with plentiful spare capacity, so there’s room for a significant shift to coal from oil as a chemical feedstock. Hard data is scarce but, anecdotally, petrochemicals plants transforming coal into plastics like polyethylene, polypropylene and polyvinyl chloride have been running hard for the last 60 days, in turn reducing consumption of traditional feedstocks such as ethane and naphtha.

So perhaps China has managed to rely far more on coal-to-chemicals than previously thought. Another possible explanation is that it’s running down hard-to-track inventories of semi-finished plastics and other chemicals, making the recent drop in oil consumption in the petrochemical industry an unsustainable one-off unless there is a global recession which collapses end-demand for Chinese plastics exports. 

And then there are the more banal explanations. Although oil traders try to estimate Chinese inventory data with the use of satellite data, it is in fact possible that observers are missing locations and stocks are, in fact, falling. About two months ago, we hinted that Chinese drain of its SPR could more than offset a full Hormuz blockade for a long time. As we said on March 18, "China can avoid any Gulf imports for months and drain its SPR instead." 

Sure enough, Blas writes that the oil market has been full of chatter about China quietly tapping its strategic reserves, starting by using underground caverns that no one can see using satellites. Maybe. Time lags may also be playing a role; Chinese domestic oil production has been increasing, too, perhaps helping to plug any gaps.

But, as Blas concludes, "make no mistake, China is rebalancing the oil market today." The bigger question is for tomorrow when the Strait is (eventually) unblocked: If China can reduce imports so drastically without having to take extreme measures, what does that say about the future of oil consumption there? Nothing positive for oil bulls, that's for sure. 

Tyler Durden Fri, 05/08/2026 - 18:00

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