Zero Hedge

Brussels Slams Brakes On 2035 Combustion Engine Ban

Brussels Slams Brakes On 2035 Combustion Engine Ban

The European Commission is preparing to retreat from its planned 2035 ban on new combustion-engine car sales, yielding to pressure from Germany, Italy and automakers struggling to compete with U.S. and Chinese rivals, according to Reuters. The announcement is expected Tuesday.

EU and industry sources say the ban could be delayed by five years or softened indefinitely, turning a once-firm rule into something more aspirational. The reversal would mark the bloc’s biggest climb-down from its green agenda in the past five years.

"The European Commission will be putting forward a clear proposal to abolish the ban on combustion engines," said Manfred Weber, head of the European Parliament’s largest political group. "It was a serious industrial policy mistake."

Traditional automakers such as Volkswagen and Stellantis have lobbied hard for relief, arguing EV demand has fallen short, costs remain high and charging infrastructure is uneven. EU tariffs on Chinese EVs have barely dented the pressure.

"It's not a sustainable reality today in Europe," Ford CEO Jim Farley said last week, adding industry needs were "not well balanced" with EU CO2 targets.

EV-focused companies warn the rethink hands China an even bigger advantage in electrification.

"The technology is ready, charging infrastructure is ready, and consumers are ready," said Polestar CEO Michael Lohscheller. "So what are we waiting for?"

Reuters writes that the 2023 law was meant to force a rapid shift to batteries or fuel cells, with fines for non-compliance. But European carmakers still trail Tesla and Chinese groups like BYD and Geely on scale and cost. Earlier this year, the EU already granted automakers “breathing space” by spreading 2025 compliance over three years.

Manufacturers now want to keep selling combustion engines alongside plug-in hybrids, range-extender EVs and vehicles running on so-called CO2-neutral fuels. Commission President Ursula von der Leyen signaled openness to e-fuels and “advanced biofuels” in October.

"We recommend a multi-technology approach," said Todd Anderson of Phinia, adding the internal combustion engine will "be around for the rest of the century."

EV industry players say regulatory backtracking will undermine investment.

"It's definitely going to have an effect," said ChargePoint CEO Rick Wilmer.

Automakers also want the 2030 target of a 55% cut in car emissions phased in over several years and the 50% reduction target for vans dropped. Germany wants climate credits for low-carbon steel and other upstream measures.

Environmental groups say the EU should stick to the 2035 deadline, arguing biofuels are scarce, expensive and not truly carbon-neutral.

"Europe needs to stay the course on electric," said William Todts of T&E. "It's clear electric is the future."

Whether Brussels actually stays the course, or keeps rewriting the rules when reality intervenes, remains to be seen.

Tyler Durden Tue, 12/16/2025 - 02:45

Brussels Slams Brakes On 2035 Combustion Engine Ban

Brussels Slams Brakes On 2035 Combustion Engine Ban

The European Commission is preparing to retreat from its planned 2035 ban on new combustion-engine car sales, yielding to pressure from Germany, Italy and automakers struggling to compete with U.S. and Chinese rivals, according to Reuters. The announcement is expected Tuesday.

EU and industry sources say the ban could be delayed by five years or softened indefinitely, turning a once-firm rule into something more aspirational. The reversal would mark the bloc’s biggest climb-down from its green agenda in the past five years.

"The European Commission will be putting forward a clear proposal to abolish the ban on combustion engines," said Manfred Weber, head of the European Parliament’s largest political group. "It was a serious industrial policy mistake."

Traditional automakers such as Volkswagen and Stellantis have lobbied hard for relief, arguing EV demand has fallen short, costs remain high and charging infrastructure is uneven. EU tariffs on Chinese EVs have barely dented the pressure.

"It's not a sustainable reality today in Europe," Ford CEO Jim Farley said last week, adding industry needs were "not well balanced" with EU CO2 targets.

EV-focused companies warn the rethink hands China an even bigger advantage in electrification.

"The technology is ready, charging infrastructure is ready, and consumers are ready," said Polestar CEO Michael Lohscheller. "So what are we waiting for?"

Reuters writes that the 2023 law was meant to force a rapid shift to batteries or fuel cells, with fines for non-compliance. But European carmakers still trail Tesla and Chinese groups like BYD and Geely on scale and cost. Earlier this year, the EU already granted automakers “breathing space” by spreading 2025 compliance over three years.

Manufacturers now want to keep selling combustion engines alongside plug-in hybrids, range-extender EVs and vehicles running on so-called CO2-neutral fuels. Commission President Ursula von der Leyen signaled openness to e-fuels and “advanced biofuels” in October.

"We recommend a multi-technology approach," said Todd Anderson of Phinia, adding the internal combustion engine will "be around for the rest of the century."

EV industry players say regulatory backtracking will undermine investment.

"It's definitely going to have an effect," said ChargePoint CEO Rick Wilmer.

Automakers also want the 2030 target of a 55% cut in car emissions phased in over several years and the 50% reduction target for vans dropped. Germany wants climate credits for low-carbon steel and other upstream measures.

Environmental groups say the EU should stick to the 2035 deadline, arguing biofuels are scarce, expensive and not truly carbon-neutral.

"Europe needs to stay the course on electric," said William Todts of T&E. "It's clear electric is the future."

Whether Brussels actually stays the course, or keeps rewriting the rules when reality intervenes, remains to be seen.

Tyler Durden Tue, 12/16/2025 - 02:45

Germany's Municipal Financial Crisis: The Green Transformation Backfires

Germany's Municipal Financial Crisis: The Green Transformation Backfires

Submitted By Thomas Kolbe

For years, politicians managed to hide the damage caused by the green transformation. Now, deep cracks are appearing in municipal finances amid the severe economic crisis gripping the country. Cities like Stuttgart serve as showcases for the future of the republic.

For a long time, Stuttgart’s city treasurer was more than just a steward of solid numbers. He was regarded as the uncrowned king of fiscal policy in the region—and held a position envied by many colleagues. The robust foundation of the automotive industry and its extensive supplier network funneled generous tax revenues into the city’s coffers for years, particularly from trade taxes.

As recently as 2023, Stuttgart recorded a record 1.6 billion euros in trade tax revenue—a sum that gave the city extraordinary financial leeway. Social projects, infrastructure initiatives, municipal ambitions—the local government could spend freely.

Cracks in the Model Municipality

Then came 2024. Early cracks in Germany’s economic foundation, building up over years, began to appear in Stuttgart as well. By the end of the fiscal year, the city faced a deficit of 6.8 million euros—a first warning that things might be spiraling out of control.

In green-led Baden-Württemberg, officials explained the shortfall with one-off effects and general problems in the German economy—problems they firmly believed could be managed under the state’s green transformation.

Then 2025 arrived—and with it, shock. Trade tax revenues collapsed, expected to bring only around 850 million euros into the city’s coffers for the year. The supplementary budget shows Stuttgart now faces a deficit of 890 million euros—a fiscal hammer blow, reflecting the massive collapse of Germany’s core industries, including automotive, machinery, and chemicals.

The Moment of Truth

The picture is the same across the country. For 2025, the German County Association forecasts a cumulative municipal deficit of around 35 billion euros—a historic figure unseen since World War II, and notably, for Germany, once considered a model of fiscal prudence.

The moment of truth has arrived. Ideologues have run their course. What follows are retreating maneuvers, frantic repair attempts, and the reflex to stabilize past policies artificially with ever-larger debt programs. The house of cards is stacked higher before it inevitably collapses.

Recent experiences with Berlin’s debt policies allow a fairly precise prediction of what comes next. Parts of the so-called “special fund”—new federal debt taken on outside the regular budget—will likely be repackaged into municipal aid packages to plug ever-growing budget holes.

If municipal finances worsen, the next escalation stage is already prepared: a consolidation of debt across the states, accompanied by the issuance of so-called special bonds. Initially through the federal states, guaranteed by the federal government, possibly involving the KfW Bank, labeled as infrastructure investments. Political imagination knows almost no bounds—at least until the bond market puts its foot down and abruptly ends the spree.

Germany has become, as a result of prolonged, fatal political mismanagement, a fiscal parasite. The attempt to pull tomorrow’s purchasing power into the present through debt is fundamentally flawed. It generates growing mountains of debt, forces higher levies, and gradually erodes citizens’ purchasing power through rising inflation.

Predictable Reaction

Many municipalities respond predictably. Across the board, trade tax rates are being drastically increased. The Rhineland-Palatinate capital of Mainz, for example, raised its rate from 310 to 440 percent—a significant burden for local businesses.

Other municipalities, like Wörth with a 65-point increase or Bad Dürkheim with 45 points, illustrate the strategy: higher levies amid declining economic performance—a death spiral for the local economy and, in the medium term, for tax revenue itself.

At the same time, massive austerity programs are being implemented. Germany faces a redefinition of public services. Municipally run, loss-making swimming pools, sports facilities, and recreational centers are now on the chopping block. Put simply: after years of delay, the manic cult of green transformation is now presenting its bill.

And it comes unexpectedly high for many, because people believed the promises of green central planners, who claimed that the complex, finely tuned network of domestic industry could be replaced by a centrally planned green fantasy. A historic error and a regression into the disastrous world of socialist feasibility illusions.

The Green Dream Is Being Lied Into Existence

A quick glance at state-funded media is enough to see how politics and state-aligned outlets attempt to deceive the public about the true state of the German economy. Single, typically heavily subsidized green projects are celebrated, while the real world suffers—with around 24,000 corporate insolvencies and hundreds of thousands of job losses this year alone.

During prime-time broadcasts, this dramatic decline is systematically overshadowed by other topics. The media effort by the green power complex to maintain the illusion of a climate-socialist Elysium reaches grotesque extremes.

Ironically, we see the same process on a geopolitical level, with attempts to turn the Russian central bank’s assets at Euroclear into a system of credit collateral. Essentially, everyone is bankrupt, and the EU staggers in panic mode toward a geopolitical catastrophe.

Every new deficit—whether at the federal level, in social funds, or in municipalities—fails to precisely measure a country’s loss of prosperity, which now reflexively flees into a debt crisis. In Berlin, officials seriously believe they can offset declining economic output with money printing. But as the saying goes: if wealth could be printed, one could also award degrees without merit.

Germany is now attempting to do both simultaneously. In the end, the country will experience its green miracle.

Tyler Durden Tue, 12/16/2025 - 02:00

Germany's Municipal Financial Crisis: The Green Transformation Backfires

Germany's Municipal Financial Crisis: The Green Transformation Backfires

Submitted By Thomas Kolbe

For years, politicians managed to hide the damage caused by the green transformation. Now, deep cracks are appearing in municipal finances amid the severe economic crisis gripping the country. Cities like Stuttgart serve as showcases for the future of the republic.

For a long time, Stuttgart’s city treasurer was more than just a steward of solid numbers. He was regarded as the uncrowned king of fiscal policy in the region—and held a position envied by many colleagues. The robust foundation of the automotive industry and its extensive supplier network funneled generous tax revenues into the city’s coffers for years, particularly from trade taxes.

As recently as 2023, Stuttgart recorded a record 1.6 billion euros in trade tax revenue—a sum that gave the city extraordinary financial leeway. Social projects, infrastructure initiatives, municipal ambitions—the local government could spend freely.

Cracks in the Model Municipality

Then came 2024. Early cracks in Germany’s economic foundation, building up over years, began to appear in Stuttgart as well. By the end of the fiscal year, the city faced a deficit of 6.8 million euros—a first warning that things might be spiraling out of control.

In green-led Baden-Württemberg, officials explained the shortfall with one-off effects and general problems in the German economy—problems they firmly believed could be managed under the state’s green transformation.

Then 2025 arrived—and with it, shock. Trade tax revenues collapsed, expected to bring only around 850 million euros into the city’s coffers for the year. The supplementary budget shows Stuttgart now faces a deficit of 890 million euros—a fiscal hammer blow, reflecting the massive collapse of Germany’s core industries, including automotive, machinery, and chemicals.

The Moment of Truth

The picture is the same across the country. For 2025, the German County Association forecasts a cumulative municipal deficit of around 35 billion euros—a historic figure unseen since World War II, and notably, for Germany, once considered a model of fiscal prudence.

The moment of truth has arrived. Ideologues have run their course. What follows are retreating maneuvers, frantic repair attempts, and the reflex to stabilize past policies artificially with ever-larger debt programs. The house of cards is stacked higher before it inevitably collapses.

Recent experiences with Berlin’s debt policies allow a fairly precise prediction of what comes next. Parts of the so-called “special fund”—new federal debt taken on outside the regular budget—will likely be repackaged into municipal aid packages to plug ever-growing budget holes.

If municipal finances worsen, the next escalation stage is already prepared: a consolidation of debt across the states, accompanied by the issuance of so-called special bonds. Initially through the federal states, guaranteed by the federal government, possibly involving the KfW Bank, labeled as infrastructure investments. Political imagination knows almost no bounds—at least until the bond market puts its foot down and abruptly ends the spree.

Germany has become, as a result of prolonged, fatal political mismanagement, a fiscal parasite. The attempt to pull tomorrow’s purchasing power into the present through debt is fundamentally flawed. It generates growing mountains of debt, forces higher levies, and gradually erodes citizens’ purchasing power through rising inflation.

Predictable Reaction

Many municipalities respond predictably. Across the board, trade tax rates are being drastically increased. The Rhineland-Palatinate capital of Mainz, for example, raised its rate from 310 to 440 percent—a significant burden for local businesses.

Other municipalities, like Wörth with a 65-point increase or Bad Dürkheim with 45 points, illustrate the strategy: higher levies amid declining economic performance—a death spiral for the local economy and, in the medium term, for tax revenue itself.

At the same time, massive austerity programs are being implemented. Germany faces a redefinition of public services. Municipally run, loss-making swimming pools, sports facilities, and recreational centers are now on the chopping block. Put simply: after years of delay, the manic cult of green transformation is now presenting its bill.

And it comes unexpectedly high for many, because people believed the promises of green central planners, who claimed that the complex, finely tuned network of domestic industry could be replaced by a centrally planned green fantasy. A historic error and a regression into the disastrous world of socialist feasibility illusions.

The Green Dream Is Being Lied Into Existence

A quick glance at state-funded media is enough to see how politics and state-aligned outlets attempt to deceive the public about the true state of the German economy. Single, typically heavily subsidized green projects are celebrated, while the real world suffers—with around 24,000 corporate insolvencies and hundreds of thousands of job losses this year alone.

During prime-time broadcasts, this dramatic decline is systematically overshadowed by other topics. The media effort by the green power complex to maintain the illusion of a climate-socialist Elysium reaches grotesque extremes.

Ironically, we see the same process on a geopolitical level, with attempts to turn the Russian central bank’s assets at Euroclear into a system of credit collateral. Essentially, everyone is bankrupt, and the EU staggers in panic mode toward a geopolitical catastrophe.

Every new deficit—whether at the federal level, in social funds, or in municipalities—fails to precisely measure a country’s loss of prosperity, which now reflexively flees into a debt crisis. In Berlin, officials seriously believe they can offset declining economic output with money printing. But as the saying goes: if wealth could be printed, one could also award degrees without merit.

Germany is now attempting to do both simultaneously. In the end, the country will experience its green miracle.

Tyler Durden Tue, 12/16/2025 - 02:00

Aristocracy, Meritocracy, Technocracy, And Revolution

Aristocracy, Meritocracy, Technocracy, And Revolution

Authored by J.B. Shurk via American Thinker,

All human societies have informal social classes or formal social castes that separate groups of people within the same community.  Generally speaking, notions of aristocracy and hereditary nobility started on the battlefield.  Warrior chiefs of clans became minor kings after killing more rivals without dying themselves.  Rather than remaining in a constant state of tribal conflict, the chiefs of other clans bent the knee and became lesser lords.  Because kings and lords prefer their heirs to be kings and lords, too, bloodlines afforded children the social status that their ancestors had earned on the battlefield.

A ruling king who provided security and stability earned deference from those under his protection.  Over time, tribes combined to become nations.  Chieftains cooperated to form royal courts.  And the heirs of warrior chiefs adopted customs and traditions that symbolically separated those who rule from those who are ruled.

During social upheavals, the ruling aristocracy is often overthrown.  This provides hereditary nobles an incentive not only to quell rebellions quickly but also to find ways to keep the interests of non-nobles aligned with the aristocratic class.  Gifts of land, titles, and property buy a certain amount of loyalty.  The creation of minor offices apportions power to those deemed “worthy” of holding it.  The historic growth of administrative bureaucracies creates a path for non-nobles to exercise their talents in the service of those who rule.

To the consternation of Europe’s aristocratic class, the Great War ushered in a popular revolution against the hereditary order.  Several centuries of a growing middle class, increased literacy, industrial innovation, entrepreneurialism, and more widespread property ownership helped to create the social conditions for broad swaths of Europe’s populations to question why bloodlines should matter more than intelligence, talent, and hard work.  Many European families who lost fathers and sons during the First World War blamed European nobles for the calamity.

By the time the Second World War had provided an extra helping of self-destructive ruin, many of Europe’s noble houses were no more.  Those that had survived were acutely wary of suffering the fates of so many cousins who had been hanged, burned, or shot.  For the surviving members of Europe’s aristocracy to endure, they had no choice but to hand considerable political powers to the common people.  The twentieth century shepherded government reforms, suffrage for men and women without property, public welfare statutes, and expanded opportunities for common people to become part of the State’s governing bureaucracy.

While these reforms were celebrated as triumphs for “democracy,” it is important to understand that they did not completely supplant the vestiges of European aristocracy.  In the United Kingdom, the House of Lords still recognized the inherent right to rule of certain families.  Men with noble titles still ran central banks, trading houses, and clandestine agencies.  The attachés of those administrative lords still came from the “best families” and attended the “finest schools.”  Increasingly, however, the children of middle class families competed for and secured positions within the larger bureaucratic staff.

This twentieth century transition — in which citizens from low social classes were more broadly included in the functions of government — marked the social pivot to what Westerners call “meritocracy.”  

No longer would a person’s bloodline serve as the limits of what that person might achieve in this life.  Instead, natural intelligence, hard work, and determination could provide a person of any means the opportunity to rise as high as he might wish.

“Meritocracy” was an alluring idea to sell to the common people who had already destroyed so much of the aristocrats’ cherished social order in the first half of the twentieth century.  

Out with the nobles!  In with the people who deserve to have power!  From the point of view of someone in the lower or middle classes, a system that rewards skill, smarts, and determination sounds much fairer.

However, “meritocracy” provides an ancillary benefit to a ruling class seeking to maintain control: It keeps the most ambitious members of the non-noble classes competing against each other for a small number of powerful positions and reinforces the legitimacy of the governing system as a whole.  People who study, sacrifice, and struggle to obtain a little power within a governing bureaucracy are not inclined to question, criticize, or delegitimize that system once vested with a modicum of authority inside of it.

With the rise of the “meritocracy,” residual ruling class families found endless opportunities to keep unsuspecting commoners chasing their tails.  

A hundred years ago, “gentlemen” in positions of power had, at most, a college education.  The transition toward “meritocracy” convinced members of the lower classes that they needed all kinds of postgraduate degrees to prove their “expertise.”  

Just keep studying, kids, and you might finally have the right credentials to do the same job as a bunch of lords once did before they had reached the age of twenty-two! 

 In the meantime, stay poor, follow the rules, question nothing, and the ruling class might find a position for you once you’ve begged long enough.

In pursuit of “meritocracy,” commoners have been conditioned to believe that you cannot be successful without at least a college education.  In turn, the remnants of the noble ruling class have turned colleges into indoctrination laboratories that reinforce the ideologies of the ruling system.  Members of the Old Guard, in other words, have found the perfect mechanism through which to subordinate the very people otherwise inclined to overthrow them.  

Say ‘Hello’ to the new nobility; it looks just like the old one!

Unfortunately for the powers that be, there are widening cracks now in the “meritocracy” illusion.  Those cracks began with “affirmative action” programs in the United States that perpetuated racial discrimination, and they have continued to expand this century with the broad initiatives across the West in support of so-called “diversity, inclusion, and equity.”  Preferential admissions and hiring decisions in favor of special classes of people identified by their skin color, ethnicity, sexual disposition, disability, or perceived “victimhood” have blown up the perception that “meritocracy” exists at all.

Instead, what is increasingly obvious is that the same aristocrats who have always made the rules are once again decreeing which classes of commoners will be allowed to mingle among their ranks.  

Out with the meritocratic!  In with the multi-racial trans-furries who have trouble doing math!  As institutions in the West expose themselves as part of an unjust and prejudicial political system, the legitimacy of the ruling class is increasingly under attack.

For the first time in many decades, Westerners have begun to notice that much of the old aristocracy supposedly supplanted by the “meritocracy” remains nonetheless in charge.  Surprise!  A century after the supposed end of hereditary rule, men and women with feudal titles still control the European Council, transnational governing bodies, international treaty organizations, and all the central banks.  In other words, the illusion of “meritocracy” gave the ruling class just enough camouflage to survive several more generations.

What happens now?  

The world’s richest man, Elon Musk, says that artificial intelligence will soon replace most human jobs.  

He insists that there will be a universal high income that every common peasant receives.  He says people will want for nothing…except purpose.

Perhaps Musk is right.  

Perhaps the lower classes will consent to a small number of elites ruling over them in perpetuity.  

Perhaps they will consent to mass surveillance, censorship, and State-sponsored “truths.”  

Perhaps they will agree to let the families of billionaires behave as entourages within royal courts in support of a coterie of technocratic kings.

Or perhaps we are destined for social upheaval.  

Perhaps what started on the battlefield will return to it. 

 Perhaps the ruling aristocracy will finally be overthrown.  

Regardless, the future will be interesting.

Tyler Durden Mon, 12/15/2025 - 23:25

Aristocracy, Meritocracy, Technocracy, And Revolution

Aristocracy, Meritocracy, Technocracy, And Revolution

Authored by J.B. Shurk via American Thinker,

All human societies have informal social classes or formal social castes that separate groups of people within the same community.  Generally speaking, notions of aristocracy and hereditary nobility started on the battlefield.  Warrior chiefs of clans became minor kings after killing more rivals without dying themselves.  Rather than remaining in a constant state of tribal conflict, the chiefs of other clans bent the knee and became lesser lords.  Because kings and lords prefer their heirs to be kings and lords, too, bloodlines afforded children the social status that their ancestors had earned on the battlefield.

A ruling king who provided security and stability earned deference from those under his protection.  Over time, tribes combined to become nations.  Chieftains cooperated to form royal courts.  And the heirs of warrior chiefs adopted customs and traditions that symbolically separated those who rule from those who are ruled.

During social upheavals, the ruling aristocracy is often overthrown.  This provides hereditary nobles an incentive not only to quell rebellions quickly but also to find ways to keep the interests of non-nobles aligned with the aristocratic class.  Gifts of land, titles, and property buy a certain amount of loyalty.  The creation of minor offices apportions power to those deemed “worthy” of holding it.  The historic growth of administrative bureaucracies creates a path for non-nobles to exercise their talents in the service of those who rule.

To the consternation of Europe’s aristocratic class, the Great War ushered in a popular revolution against the hereditary order.  Several centuries of a growing middle class, increased literacy, industrial innovation, entrepreneurialism, and more widespread property ownership helped to create the social conditions for broad swaths of Europe’s populations to question why bloodlines should matter more than intelligence, talent, and hard work.  Many European families who lost fathers and sons during the First World War blamed European nobles for the calamity.

By the time the Second World War had provided an extra helping of self-destructive ruin, many of Europe’s noble houses were no more.  Those that had survived were acutely wary of suffering the fates of so many cousins who had been hanged, burned, or shot.  For the surviving members of Europe’s aristocracy to endure, they had no choice but to hand considerable political powers to the common people.  The twentieth century shepherded government reforms, suffrage for men and women without property, public welfare statutes, and expanded opportunities for common people to become part of the State’s governing bureaucracy.

While these reforms were celebrated as triumphs for “democracy,” it is important to understand that they did not completely supplant the vestiges of European aristocracy.  In the United Kingdom, the House of Lords still recognized the inherent right to rule of certain families.  Men with noble titles still ran central banks, trading houses, and clandestine agencies.  The attachés of those administrative lords still came from the “best families” and attended the “finest schools.”  Increasingly, however, the children of middle class families competed for and secured positions within the larger bureaucratic staff.

This twentieth century transition — in which citizens from low social classes were more broadly included in the functions of government — marked the social pivot to what Westerners call “meritocracy.”  

No longer would a person’s bloodline serve as the limits of what that person might achieve in this life.  Instead, natural intelligence, hard work, and determination could provide a person of any means the opportunity to rise as high as he might wish.

“Meritocracy” was an alluring idea to sell to the common people who had already destroyed so much of the aristocrats’ cherished social order in the first half of the twentieth century.  

Out with the nobles!  In with the people who deserve to have power!  From the point of view of someone in the lower or middle classes, a system that rewards skill, smarts, and determination sounds much fairer.

However, “meritocracy” provides an ancillary benefit to a ruling class seeking to maintain control: It keeps the most ambitious members of the non-noble classes competing against each other for a small number of powerful positions and reinforces the legitimacy of the governing system as a whole.  People who study, sacrifice, and struggle to obtain a little power within a governing bureaucracy are not inclined to question, criticize, or delegitimize that system once vested with a modicum of authority inside of it.

With the rise of the “meritocracy,” residual ruling class families found endless opportunities to keep unsuspecting commoners chasing their tails.  

A hundred years ago, “gentlemen” in positions of power had, at most, a college education.  The transition toward “meritocracy” convinced members of the lower classes that they needed all kinds of postgraduate degrees to prove their “expertise.”  

Just keep studying, kids, and you might finally have the right credentials to do the same job as a bunch of lords once did before they had reached the age of twenty-two! 

 In the meantime, stay poor, follow the rules, question nothing, and the ruling class might find a position for you once you’ve begged long enough.

In pursuit of “meritocracy,” commoners have been conditioned to believe that you cannot be successful without at least a college education.  In turn, the remnants of the noble ruling class have turned colleges into indoctrination laboratories that reinforce the ideologies of the ruling system.  Members of the Old Guard, in other words, have found the perfect mechanism through which to subordinate the very people otherwise inclined to overthrow them.  

Say ‘Hello’ to the new nobility; it looks just like the old one!

Unfortunately for the powers that be, there are widening cracks now in the “meritocracy” illusion.  Those cracks began with “affirmative action” programs in the United States that perpetuated racial discrimination, and they have continued to expand this century with the broad initiatives across the West in support of so-called “diversity, inclusion, and equity.”  Preferential admissions and hiring decisions in favor of special classes of people identified by their skin color, ethnicity, sexual disposition, disability, or perceived “victimhood” have blown up the perception that “meritocracy” exists at all.

Instead, what is increasingly obvious is that the same aristocrats who have always made the rules are once again decreeing which classes of commoners will be allowed to mingle among their ranks.  

Out with the meritocratic!  In with the multi-racial trans-furries who have trouble doing math!  As institutions in the West expose themselves as part of an unjust and prejudicial political system, the legitimacy of the ruling class is increasingly under attack.

For the first time in many decades, Westerners have begun to notice that much of the old aristocracy supposedly supplanted by the “meritocracy” remains nonetheless in charge.  Surprise!  A century after the supposed end of hereditary rule, men and women with feudal titles still control the European Council, transnational governing bodies, international treaty organizations, and all the central banks.  In other words, the illusion of “meritocracy” gave the ruling class just enough camouflage to survive several more generations.

What happens now?  

The world’s richest man, Elon Musk, says that artificial intelligence will soon replace most human jobs.  

He insists that there will be a universal high income that every common peasant receives.  He says people will want for nothing…except purpose.

Perhaps Musk is right.  

Perhaps the lower classes will consent to a small number of elites ruling over them in perpetuity.  

Perhaps they will consent to mass surveillance, censorship, and State-sponsored “truths.”  

Perhaps they will agree to let the families of billionaires behave as entourages within royal courts in support of a coterie of technocratic kings.

Or perhaps we are destined for social upheaval.  

Perhaps what started on the battlefield will return to it. 

 Perhaps the ruling aristocracy will finally be overthrown.  

Regardless, the future will be interesting.

Tyler Durden Mon, 12/15/2025 - 23:25

John Mearsheimer: Why Diplomacy Is Going Nowhere & Ukraine Is Doomed

John Mearsheimer: Why Diplomacy Is Going Nowhere & Ukraine Is Doomed

With Zelensky having much-belatedly dropped aspirations for Ukraine's NATO membership, European officials are now openly admitting what pretty much everyone knew but was afraid to say.

EU High Representative for Foreign Affairs and Security Policy Kaja Kallas has newly acknowledged in fresh remarks that Ukraine's membership in the military alliance is now obviously "out of the question" - but that the European Union now needs to provide concrete security guarantees.

"Now if this [Ukraine’s NATO membership] is not in question, or this is out of the question, then we need to see what are the security guarantees that are tangible. They can’t be papers, or promises, they have to be real troops, real capabilities," she told reporters ahead of an EU Foreign Ministers meeting.

Kallas asserted that "in the last 100 years, Russia has attacked at least 19 countries," and so this means "the security guarantees are needed for all other members" in the EU.

Image via European Union

Europe is likely still going to propose some scheme not acceptable to Moscow, such as "Article 5-style" security guarantees, falling just short of NATO membership. But Russian leaders are just going to see keep viewing this as but a recipe for future conflict

This is precisely what Zelensky is now demanding in place of dropping the NATO bid. "We are talking about bilateral security guarantees between Ukraine and the United States — namely, Article 5-like guarantees ... as well as security guarantees for us from our European partners and from other countries such as Canada, Japan and others," he recently told Financial Times.

While rejecting the US deal which hinges on significant territorial concessions, Zelensky is hailing his new stance as some kind of grand compromise.

"These security guarantees are an opportunity to prevent another wave of Russian aggression," he had said over the weekend. "And this is already a compromise on our part." But this should have been taken off the table all the way back in February of 2022, on the eve of the Russian invasion, or even well before. Of course, he's much too late 'offering' this 'concession'

As we pointed out earlier, the open secret has for years been that the Washington and EU establishments know full well that it was historic and recent constant NATO expansion which led to this horrific, grinding war. This reality is so well understood that in their private, non-official commentary even former top Biden officials fully admit the fact.

Yet these same Biden officials had while in government pursued policies fueling the Ukrainian proxy war as they wanted to 'weaken' Russia. They considered the issue of NATO expansion as a prime rationale of Russia's invasion to be an off-limits talking point.

All of the above developments suggest that diplomacy is still going nowhere, also as Kiev has still not been induced to offer anything 'real' (from Moscow's perspective) that would be enough to permanently end the war and achieve lasting peace.

According to a recent podcast appearance by geopolitical analyst and University of Chicago professor John Mearsheimer, "there is virtually no reason to think that a peace agreement can be struck to end the war, despite all the diplomatic maneuvering that has been taking place in recent months."

He continued... "For sure, diplomacy is a good thing in principle, but in practice it is going nowhere in this case. Russian demands are completely at odds with Ukrainian and European demands. And neither side is willing to budge an inch. Moreover, many seem to think that the proposal the Trump administration is pushing is a joint US-Russian plan — one that both Moscow and Washington support — when in fact there is no evidence that the Russians have accepted Trump’s 27-point plan."

"Indeed, that proposal is unacceptable to the Russians as they made clear on December 4th. Diplomacy will only become relevant when there is a major development on the battlefield that tells both sides that it is time to negotiate an armistice, turning the hot war into a frozen conflict." Watch the full interview below:

Tyler Durden Mon, 12/15/2025 - 23:00

John Mearsheimer: Why Diplomacy Is Going Nowhere & Ukraine Is Doomed

John Mearsheimer: Why Diplomacy Is Going Nowhere & Ukraine Is Doomed

With Zelensky having much-belatedly dropped aspirations for Ukraine's NATO membership, European officials are now openly admitting what pretty much everyone knew but was afraid to say.

EU High Representative for Foreign Affairs and Security Policy Kaja Kallas has newly acknowledged in fresh remarks that Ukraine's membership in the military alliance is now obviously "out of the question" - but that the European Union now needs to provide concrete security guarantees.

"Now if this [Ukraine’s NATO membership] is not in question, or this is out of the question, then we need to see what are the security guarantees that are tangible. They can’t be papers, or promises, they have to be real troops, real capabilities," she told reporters ahead of an EU Foreign Ministers meeting.

Kallas asserted that "in the last 100 years, Russia has attacked at least 19 countries," and so this means "the security guarantees are needed for all other members" in the EU.

Image via European Union

Europe is likely still going to propose some scheme not acceptable to Moscow, such as "Article 5-style" security guarantees, falling just short of NATO membership. But Russian leaders are just going to see keep viewing this as but a recipe for future conflict

This is precisely what Zelensky is now demanding in place of dropping the NATO bid. "We are talking about bilateral security guarantees between Ukraine and the United States — namely, Article 5-like guarantees ... as well as security guarantees for us from our European partners and from other countries such as Canada, Japan and others," he recently told Financial Times.

While rejecting the US deal which hinges on significant territorial concessions, Zelensky is hailing his new stance as some kind of grand compromise.

"These security guarantees are an opportunity to prevent another wave of Russian aggression," he had said over the weekend. "And this is already a compromise on our part." But this should have been taken off the table all the way back in February of 2022, on the eve of the Russian invasion, or even well before. Of course, he's much too late 'offering' this 'concession'

As we pointed out earlier, the open secret has for years been that the Washington and EU establishments know full well that it was historic and recent constant NATO expansion which led to this horrific, grinding war. This reality is so well understood that in their private, non-official commentary even former top Biden officials fully admit the fact.

Yet these same Biden officials had while in government pursued policies fueling the Ukrainian proxy war as they wanted to 'weaken' Russia. They considered the issue of NATO expansion as a prime rationale of Russia's invasion to be an off-limits talking point.

All of the above developments suggest that diplomacy is still going nowhere, also as Kiev has still not been induced to offer anything 'real' (from Moscow's perspective) that would be enough to permanently end the war and achieve lasting peace.

According to a recent podcast appearance by geopolitical analyst and University of Chicago professor John Mearsheimer, "there is virtually no reason to think that a peace agreement can be struck to end the war, despite all the diplomatic maneuvering that has been taking place in recent months."

He continued... "For sure, diplomacy is a good thing in principle, but in practice it is going nowhere in this case. Russian demands are completely at odds with Ukrainian and European demands. And neither side is willing to budge an inch. Moreover, many seem to think that the proposal the Trump administration is pushing is a joint US-Russian plan — one that both Moscow and Washington support — when in fact there is no evidence that the Russians have accepted Trump’s 27-point plan."

"Indeed, that proposal is unacceptable to the Russians as they made clear on December 4th. Diplomacy will only become relevant when there is a major development on the battlefield that tells both sides that it is time to negotiate an armistice, turning the hot war into a frozen conflict." Watch the full interview below:

Tyler Durden Mon, 12/15/2025 - 23:00

FBI Hunting Down Members Of 764 Network: Dan Bongino

FBI Hunting Down Members Of 764 Network: Dan Bongino

Authored by Naveen Athrappully via The Epoch Times,

The FBI is in the process of pursuing members of the 764 criminal network, Deputy Director Dan Bongino said in a Dec. 12 post on X.

The 764 is a violent network, operating within the United States and around the globe, that methodically targets and exploits minors, according to the FBI.

“These networks use threats, blackmail, and manipulation to coerce or extort victims into producing, sharing, or live-streaming acts of self-harm, animal cruelty, sexually explicit acts, and/or suicide,“ the FBI stated. ”The footage is then circulated among members of the network to continue to extort victims and exert control over them.”

Bongino wrote on X: “We are hunting down the members of the 764 network with unprecedented arrest numbers, and a tireless focus on developing new investigative leads with our state, local, and global law enforcement partners.

“We will not allow them to target our children.

“You cannot hide behind a keyboard.”

The 764 network comprises “Nihilistic Violent Extremists” who support the production and sharing of child sex abuse material and extreme gore media, the Department of Justice stated on Nov. 20.

Members “often conduct coordinated extortions of teenagers, blackmailing the victims to comply with the group’s demands.”

On Nov. 20, a federal grand jury indicted a 20-year-old member of the 764 network over allegations that the person persuaded and coerced three minor females to engage in sexually explicit conduct.

“This is one of the most serious issues in America and the @FBI numbers reflect it—500 percent increase in Nihilistic Violent Extremism arrests over last year and 20 percent increase in confirmed 764 arrests,” FBI Director Kash Patel said in a post on X. “Every field office is fully engaged and we’re not slowing down.”

The FBI stated: “Victims are typically between the ages of 10 and 17 years old, but the FBI has seen some victims as young as 9 years old. These violent actors target vulnerable populations to include children as well as those who struggle with a variety of mental health issues, such as depression, eating disorders, or suicidal ideation.”

Malicious actors groom their targets by establishing trusting, romantic relationships with victims.

The agency asked family and friends to watch out for potential indicators and warning signs among minors, including sudden changes in behavior or appearance, dropping out of activities and becoming more isolated, scars, carvings on the skin such as words or symbols, scratches or bruises, burn marks, wearing long sleeves or pants in hot weather, harming of family pets or other animals, and receipt of anonymous gifts.

Protecting Children

In a Dec. 12 FBI podcast, Supervisory Special Agent Abbi Beccaccio, who oversees specialized child sexual exploitation investigations, said the members of violent online networks get their victims to engage in horrific activities because of “their underlying desire to sow chaos.”

“Essentially, they want to target the most vulnerable populations, and in doing so, they hope to bring down the fabric of society, whether or not they actually have the ability to do that,” Beccaccio said.

This week, Sen. Chuck Grassley (R-Iowa) and Sen. Dick Durbin (D-Ill.) introduced three bipartisan bills to protect children online that focus on sentencing laws, child extortion, and violent online criminal networks, according to a Dec. 9 statement from the Senate Committee on the Judiciary.

The Sentencing Accountability for Exploitation Act requires the U.S. Sentencing Commission to develop a new child sex abuse material (CSAM) sentencing guideline that takes into account modern indicators of dangerous conduct, such as a person taking part in a CSAM online group.

The Ending Coercion of Children and Harm Online Act seeks to tackle the issue of individuals coercing children into harming themselves, other people, or animals by proposing life in prison for such crimes.

The Stop Sextortion Act targets people who threaten to distribute CSAM with the goal of coercing, intimidating, and extorting children.

“Changes in technology have created new opportunities for criminals to harass, exploit, intimidate, and harm American children. These horrific crimes—often committed by violent online groups who take advantage of our nation’s outdated laws—have gone unchecked for far too long,” Grassley said.

“Congress must stand up for American families and finally address the online rot that is hurting children nationwide.”

Tyler Durden Mon, 12/15/2025 - 22:35

End Of An Era: Pro-Democracy Icon Jimmy Lai Found Guilty Of Sedition In Hong Kong

End Of An Era: Pro-Democracy Icon Jimmy Lai Found Guilty Of Sedition In Hong Kong

The high profile trial of Hong Kong's foremost pro-democracy media tycoon has just wrapped up, and it puts a symbolic cap on the end of an era in terms of prior large scale anti-China activism in the city.

Jimmy Lai, who long spearheaded huge protests and local media criticism of Beijing, was found guilty on Monday in a landmark national security case, marking an end to the 156-dady trial. He could spend the rest of his life in prison based the series of sedition-related convictions.

Media tycoon and Beijing critic Jimmy Lai, via Associated Press

Prosecutors accused him of conspiring with senior executives of the fiercely pro-democracy and independent Chinese-language newspaper Apple Daily and others to request foreign forces to impose sanctions or blockades to thwart Beijing influence in Hong Kong. 

Further, he's alleged to have engaged in other hostile activities against Hong Kong or China, which hearkens back to prior years of long-running street protests which sometimes descended into violence and vandalism, or at times large student takeovers of entire university buildings.

China had long alleged a foreign intelligence 'hidden hand' behind the protests. This was in part due to student activists being in semi-regular communication with Western officials and NGOs, and sometimes even honored at events hosted in Europe or the US.

A panel of three government-approved judges convicted the 78-year-old, after Lai had consistently denied all charges. He was first detained in August 2020 under Hong Kong’s Beijing-imposed national security law.

The security law has been widely seen as the final nail in the coffin of Hong Kong's long-running autonomy, and was a response to the major 2019 protests which were widely covered in international press reports.

Lai upon the verdict being read appeared upbeat, as he waved to supporters in the public gallery, which included his wife, son, and Hong Kong’s Catholic Cardinal Joseph Zen.

Western leaders, including of the US and Britain, are expected to lobby for his freedom, especially given that this is being viewed as ultimately a crackdown on Western values in influence on one of the globe's main financial hubs.

Sebastien Lai, one of his children, issued a statement on behalf of the family, saying they are saddened by the verdict, describing it as a twisting of justice. "In the 800-page verdict they have there is essentially nothing, nothing that incriminates him," Lai told reporters in London. "This is a perfect example of how the national security law has been molded and weaponized against someone who essentially said stuff that they didn't like."

Western condemnation and outrage pours in...

"This verdict proves that the authorities still fear our father, even in his weakened state, for what he represents," his daughter Claire added in the statement. "We stand by his innocence and condemn this miscarriage of justice."

Tyler Durden Mon, 12/15/2025 - 22:10

Homan Urges Politicians To Stop Attacking ICE, Border Patrol Officers

Homan Urges Politicians To Stop Attacking ICE, Border Patrol Officers

Authored by Naveen Athrappully via The Epoch Times,

Politicians should stop attacking immigration officers trying to enforce laws while putting their lives at risk, border czar Tom Homan said during a press briefing on Dec. 13 that involved officials from the Customs and Border Patrol (CBP).

“I’m begging the politicians, the governors, the mayors who constantly attack these men and women, please stop. I don’t want to bury anybody else. It’s not a joke. We’re all there enforcing the laws. Not only I care about the safety of the men and women in uniform, I care about the safety of those who we’re looking for and apprehending,” Homan told reporters.

“I want you to remember three o'clock this morning, I bet every one of you will be sleeping comfortably in your bed. These men and women will be standing on a dirt trail someplace because a sensor went off. Is it just someone coming for better life? Or was it a heavily armed drug smuggler? They don’t know, but they’re going to take it on. Every night across this nation.”

Homan praised the men and women of CBP, Immigration and Customs Enforcement (ICE), and other federal law enforcement who are involved in building what he called the “most secure border.”

There have been multiple incidents of immigration enforcement officers being attacked while carrying out their duties.

In a Dec. 10 statement, ICE said more than 100 people attempted to impede an investigation, locking a gate to trap agents within a restaurant. The investigation was part of a multi-year probe targeting a transnational criminal organization.

“Agitators quickly turned violent, assaulting officers and slashing tires,” it said.

Two Homeland Security Investigations Special Response Team operators were injured, with one suffering a knee injury while the other ruptured a bicep. Two U.S. citizens were arrested for assaulting a federal officer, obstruction, and damaging a government vehicle.

An ICE officer was attacked by an illegal immigrant from Louisiana who “savagely bit the officer’s hand while resisting arrest,” DHS said in a Dec. 12 statement. The bite tore through the skin and drew blood, according to DHS. The agency called on politicians and the media to halt calls to resist ICE enforcement.

“DHS law enforcement is facing a 1,150 percent increase in assaults against them and an 8,000 percent increase in death threats. This is the reality of what our ICE officers are facing every day as they go to work to simply do their job and enforce the law,” DHS Assistant Secretary for Public Affairs Tricia McLaughlin said.

Protestors taunt federal agents in front of Immigration and Customs Enforcement offices in Portland, Oregon, on Oct. 3, 2025. John Fredricks/The Epoch Times

Protecting ICE Officers

Certain lawmakers and local officials have maintained a negative view of immigration enforcement.

During a Sept. 30 news briefing, Katrina Thompson, the mayor of Broadview, Illinois, demanded that ICE and DHS stop what she called “hostile actions” against the local community.

She alleged officers were deploying chemical agents and physical force against protestors, and said there was a “pattern of escalating aggression” from ICE agents against demonstrators exercising their First Amendment rights.

In September, California Gov. Gavin Newsom signed into law a bill that makes it a misdemeanor crime for officers to wear face coverings while doing their jobs.

Newsom said his state was “pushing back” against actions of the Trump administration.

“It’s like a dystopian sci-fi movie. Unmarked cars, people in masks, people quite literally disappearing. No due process, no rights in a democracy where we have rights,” he said.

Federal agents have been wearing masks to protect their identities and prevent them and their families from being doxxed by activists.

On Nov. 17, the Department of Justice filed a lawsuit against California and its officials, challenging the law and other legislation, arguing they pose considerable personal safety risks for agents, including doxxing and harassment.

“Law enforcement officers risk their lives every day to keep Americans safe, and they do not deserve to be doxed or harassed simply for carrying out their duties,” Attorney General Pamela Bondi said in a statement.

DHS is taking action against people who threaten immigration officers.

Last week, DHS announced it had arrested two people from New Jersey who allegedly threatened to shoot ICE officers “on sight.” The individuals also threatened to hang McLaughlin, the agency said in a Dec. 9 statement.

U.S. citizens Ricardo Antonio Roman-Flores and Emilio Roman-Flores, who are twins, were charged with multiple crimes, including conspiracy to commit terroristic threats and unlawful possession of an assault weapon. The Epoch Times was unable to reach the pair’s attorneys for comment at the time.

“Let this be a warning to anyone who dares threaten or attack our brave law enforcement officers,” Acting ICE Director Todd Lyons said. “If you threaten our law enforcement or DHS officials, we will hunt you down and you will be prosecuted to the fullest extent of the law.”

Tyler Durden Mon, 12/15/2025 - 21:45

Time For An AI-Tech Supply-Chain Channel-Check In Asia. Here Are Key Takeaways...

Time For An AI-Tech Supply-Chain Channel-Check In Asia. Here Are Key Takeaways...

Channel checks in Asia's tech supply chain are critical and can be used as early signals or leading indicators when trying to gauge the AI bubble and/or global demand for tech, especially in North America and Europe.

Goldman's James Schneider told clients on Monday that his team visited two dozen companies deeply embedded in the IT supply chain across Taiwan, Korea, and Japan, the global production capitals for semiconductors, servers, memory, displays, optics, and capital equipment.

Schneider's top ten takeaways from his team's channel checks were that AI server demand remains robust, with no signs of slowing in 2026, while end-market growth for PCs remains mixed.

Here are the top ten takeaways:

  1. AI servers: Robust demand is expected to continue in 2026, with no signs of slowing. Although full-rack shipments could more than double, with similar levels of growth in GPU and ASICs, the rate of ASIC shipment growth will likely be faster.

  2. AI chip vendors: Nvidia's Rubin is on track for mid-2026 production and a strong 2H26 volume ramp. Suppliers note very strong traction for Broadcom's TPU for Google but mixed trends for other suppliers.

  3. Optical networking: Demand is extremely strong, driven by significant speed upgrades (transition to 800Gb and eventually 1.6T) and pricing uplift — and Broadcom datapoints are particularly strong.

  4. Semi cap equipment: 2026 & 2027 WFE expectations continue to increase, led by DRAM and leading-edge logic. NAND spending remains muted for now, and trailing-edge logic remains under pressure.

  5. Semi test: Robust demand continues for AI-driven applications, driven by GPU, ASIC, and HBM. We expect Teradyne's market share position to improve.

  6. Analog and RF: Demand is improving but varies by end market, with strength in datacenter, moderate improvement in industrial, and sluggish trends in automotive.

  7. DRAM: Supply growth remains moderate, and demand continues to materially exceed supply. Blended HBM pricing is expected to moderate before increasing again, while conventional DRAM pricing is expected to increase substantially.

  8. NAND: Supply/demand conditions have tightened materially and are expected to remain tight in the medium term. SanDisk appears to have won an additional hyperscaler customer for eSSDs in 2026.

  9. PCs: Expectations are for very muted unit growth or modest declines in 2026. AMD appears to be gaining some increased level of traction in commercial PCs.

  10. Smartphones: High-end unit shipments remain solid, but low-end market volumes are already being significantly pressured by rising input costs.

Schneider also provided 10 critical charts and much more detail on the channel checks, which can be viewed in full by ZeroHedge Pro subscribers in the usual place.

Tyler Durden Mon, 12/15/2025 - 21:20

"Offensive To Decency": Supreme Court Won't Hear Free Speech Case Over Vanity Plate

"Offensive To Decency": Supreme Court Won't Hear Free Speech Case Over Vanity Plate

Authored by Matthew Vadum via The Epoch Times,

The U.S. Supreme Court has turned away a Tennessee woman’s appeal of her state rejecting a personalized license plate for her car.

The court rejected the petition in Gilliam v. Gerregano on Dec. 8 in an unsigned order without comment. No justices dissented.

The petitioner, Leah Gilliam, is “an avid video gamer and an astronomy buff,” according to her petition filed with the Supreme Court.

In 2010, she applied to the state for a custom plate “69PWNDU,” a phrase that is “understandable to people who share her interests.”

Gilliam says the “69” refers to the 1969 moon landing and “PWND” is a video gamers’ expression that means to be dominated or defeated.

The Tennessee Department of Revenue approved the application and issued the plate, which she mounted on her car for 11 years, during which the department did not receive any complaints about it, the petition said.

After the department’s chief of staff received a complaint in 2021, the agency canceled the personalized plate, asserting it violated state law because it was “offensive to good taste and decency.”

Gilliam sued, arguing that the state law was inconsistent with the U.S. Constitution’s First Amendment because it empowered the government department to engage in viewpoint-based discrimination, the petition said.

The Tennessee Chancery Court ruled for the state, finding that the custom plate constituted government speech, not private speech, so the First Amendment does not prevent the state from discriminating on the basis of viewpoint. The Tennessee Court of Appeals reversed, holding that the plate was private speech. The court said that most courts have ruled that personalized plates are private speech, the petition said.

The appeals court said vehicle owners use custom plates to express their own messages, that the public sees vehicle owners as the ones speaking, and that even though state employees screen the plates, the process is not involved enough to make the messages on the plates government speech.

The Tennessee Supreme Court reversed, finding that the public sees custom plates as government speech. It also held that alphanumeric combinations on personalized plates are a means for the state to convey information about the vehicle to law enforcement and the public. Although vehicle owners use the plates to communicate personal messages, this is “incidental” and “does not refute this distinct government purpose.”

Because state law forbids the department from issuing plates that are offensive or endorse any practice that is against state policy, “the state exercises enough control over personalized plates for the plates to be government speech,” the state’s highest court said.

In the petition, Gilliam’s attorneys said “an important legal principle is at stake” in the case.

“If the messages on personalized license plates are government speech, then those messages are exempt from the First Amendment. That means a state can allow personalized plates that support one political party but prohibit others,” petition said.

The Tennessee Supreme Court’s decision is “demonstrably wrong” and should be reversed, the petition said.

Attorneys for David Gerregano, the commissioner of the Tennessee Department of Revenue, said the U.S. Supreme Court held in Walker v. Texas Division, Sons of Confederate Veterans Inc., that license plates are “government-mandated, government-controlled, and government-issued IDs.”

The state uses the plates to convey a message that constitutes government speech, the state brief said. The message is, “Identify this vehicle by these alphanumeric characters,” and that is true “whether the characters are requested or randomly generated,” the brief said.

“This Court does not need another license-plate case on government speech. One is plenty,” the brief said.

The Epoch Times reached out to attorneys for Gilliam and Gerregano for comment. No replies were received by publication time.

Tyler Durden Mon, 12/15/2025 - 20:55

China Blasts 'Premeditated' Provocations Of US-Allied Philippines At Disputed Shoal

China Blasts 'Premeditated' Provocations Of US-Allied Philippines At Disputed Shoal

China continues to squabble and get in maritime incidents with US allies in regional waters of the Western Pacific. Lately it has been locked in a heightening dispute with Japan over Tokyo's pro-Taiwan stance, but there's been a new recent incident with The Philippines.

Beijing on Monday accused Manila of staging a "deliberate" provocation and carrying out hazardous and aggressive actions near a contested reef in the South China Sea following a tense weekend incident. China has further blamed Washington for issuing what it labeled as misleading statements that have set the region on edge.

The Philippines said Chinese coast guard vessels used water cannons against Filipino fishing boats near Sabina Shoal during an incident Friday. This led to a weekend of tit-for-tat accusations and denunciations.

China's narrative is that it claimed Philippine personnel threatened its officers with knives. Chinese Foreign Ministry spokesperson Guo Jiakun said Monday that the Philippines had deployed a large number of vessels in a coordinated and intentional effort to stir up trouble in waters near the disputed shoal.

Guo's statement said they "repeatedly carried out dangerous maneuvers" and after knives were brandished, "The measures taken by China were necessary to safeguard its territorial sovereignty and maritime rights and interests, were reasonable and lawful, professional and restrained, and beyond reproach."

"The Philippine side should immediately cease its infringement and provocations, stop hyping and spreading inflammatory narratives, and end the endless self-staged maritime farce," it added.

However, Western sources say it was Philippine civilians who got the worst of it, with several suffering injuries from the encounter. According to the Philippine side

Manila rushed two patrol boats to protect fishermen in the South China Sea after a water cannon attack from Chinese cutters that left three injured in one of the most severe incidents at Sabina Shoal this year.

According to the Philippine Coast Guard (PCG), the incident occurred on Friday near Sabina Shoal when several China Coast Guard (CCG) and China Maritime Militia vessels surrounded 20 Filipino fishing boats operating near the maritime feature located 75 nautical miles from the Philippine island of Palawan. CCG cutters 21559 and 21562 also deployed rigid-hulled inflated boats to cut the anchor lines of the Philippine fishermen, sending them adrift in what the PCG described as an “endangering” action.

Three Philippine citizens sustained injuries, including bruising and open wounds, according to the Philippine Coast Guard. Two fishing vessels were also damaged from the Chinese high-pressure water cannon blasts.

While the injuries don't seem life threatening, it's rare moment for one side to emphasize things like open wounds. But Beijing is dismissing the reports as hype and exaggeration. 

Philippine President Ferdinand "Bongbong" Marcos Jr. said in a speech in Singapore last year that Manila's red line in dealings in such maritime clashes with China would be crossed if a Philippine citizen were killed - a position that has lately reiterated.

Google Maps

The United States has also restated that its mutual defense treaty with the Philippines applies to Philippine vessels operating in the South China Sea. The State Department has made clear that Article IV of the 1951 US-Philippines Mutual Defense Treaty covers armed attacks on Philippine armed forces, public vessels, or aircraft, including those of the Philippine Coast Guard. And this applies to anywhere in the South China Sea, the prior warning from October indicated.

Tyler Durden Mon, 12/15/2025 - 19:40

China Blasts 'Premeditated' Provocations Of US-Allied Philippines At Disputed Shoal

China Blasts 'Premeditated' Provocations Of US-Allied Philippines At Disputed Shoal

China continues to squabble and get in maritime incidents with US allies in regional waters of the Western Pacific. Lately it has been locked in a heightening dispute with Japan over Tokyo's pro-Taiwan stance, but there's been a new recent incident with The Philippines.

Beijing on Monday accused Manila of staging a "deliberate" provocation and carrying out hazardous and aggressive actions near a contested reef in the South China Sea following a tense weekend incident. China has further blamed Washington for issuing what it labeled as misleading statements that have set the region on edge.

The Philippines said Chinese coast guard vessels used water cannons against Filipino fishing boats near Sabina Shoal during an incident Friday. This led to a weekend of tit-for-tat accusations and denunciations.

China's narrative is that it claimed Philippine personnel threatened its officers with knives. Chinese Foreign Ministry spokesperson Guo Jiakun said Monday that the Philippines had deployed a large number of vessels in a coordinated and intentional effort to stir up trouble in waters near the disputed shoal.

Guo's statement said they "repeatedly carried out dangerous maneuvers" and after knives were brandished, "The measures taken by China were necessary to safeguard its territorial sovereignty and maritime rights and interests, were reasonable and lawful, professional and restrained, and beyond reproach."

"The Philippine side should immediately cease its infringement and provocations, stop hyping and spreading inflammatory narratives, and end the endless self-staged maritime farce," it added.

However, Western sources say it was Philippine civilians who got the worst of it, with several suffering injuries from the encounter. According to the Philippine side

Manila rushed two patrol boats to protect fishermen in the South China Sea after a water cannon attack from Chinese cutters that left three injured in one of the most severe incidents at Sabina Shoal this year.

According to the Philippine Coast Guard (PCG), the incident occurred on Friday near Sabina Shoal when several China Coast Guard (CCG) and China Maritime Militia vessels surrounded 20 Filipino fishing boats operating near the maritime feature located 75 nautical miles from the Philippine island of Palawan. CCG cutters 21559 and 21562 also deployed rigid-hulled inflated boats to cut the anchor lines of the Philippine fishermen, sending them adrift in what the PCG described as an “endangering” action.

Three Philippine citizens sustained injuries, including bruising and open wounds, according to the Philippine Coast Guard. Two fishing vessels were also damaged from the Chinese high-pressure water cannon blasts.

While the injuries don't seem life threatening, it's rare moment for one side to emphasize things like open wounds. But Beijing is dismissing the reports as hype and exaggeration. 

Philippine President Ferdinand "Bongbong" Marcos Jr. said in a speech in Singapore last year that Manila's red line in dealings in such maritime clashes with China would be crossed if a Philippine citizen were killed - a position that has lately reiterated.

Google Maps

The United States has also restated that its mutual defense treaty with the Philippines applies to Philippine vessels operating in the South China Sea. The State Department has made clear that Article IV of the 1951 US-Philippines Mutual Defense Treaty covers armed attacks on Philippine armed forces, public vessels, or aircraft, including those of the Philippine Coast Guard. And this applies to anywhere in the South China Sea, the prior warning from October indicated.

Tyler Durden Mon, 12/15/2025 - 19:40

Two Years Of Milei: A Resounding Success?

Two Years Of Milei: A Resounding Success?

Authored by Daniel Lacalle,

When we analyze the economic situation in Argentina, we must first understand the calamity to which the country was left by the socialist government of Alberto Fernandez and years of Peronism.

According to UNICEF, Javier Milei has lifted more than one and a half million children out of poverty in just two years. He has restored economic growth and relaunched Argentina, which was heading towards a disaster similar to Venezuela’s due to the policies of Kirchnerism, often referred to as the “socialism of the XXI century”.

When Milei assumed power, Argentina was hurtling toward hyperinflation and misery, on an accelerated path of economic devastation. Inflation was 25.5% per month.

Under the socialism of the 21st century, Kirchnerism’s “inclusive monetary policy” led to skyrocketing cumulative inflation: between 2011 and 2015, Cristina Fernández de Kirchner oversaw a roughly 175% increase in prices, while Alberto Fernández’s destructive term resulted in a cumulative inflation rate of 1,020%, the highest among the previous five presidents, which meant that prices nearly multiplied tenfold. These policies sank the peso, triggered massive inflation, and drove poverty to over 41.7%, according to official figures. Alberto Fernández left behind nearly 19 million poor and 4.3 million indigent people, multiple exchange rates, a devastating capital control regime, and a bankrupt central bank with net negative reserves of over 15 billion.

Socialism impoverished a rich country like Argentina at an alarming and very rapid rate.

Javier Milei came to power with non-negotiable goals: a fiscal surplus, curbing inflation, and reviving a sunken economy. His first two years in office conclude with a spectacular macroeconomic record: inflation has plummeted from global highs, poverty has fallen back to 2018 levels, the economy is back on a growth trajectory, net debt has been significantly reduced, and real wages are beginning to recover—all thanks to the largest adjustment and deregulation plan in decades.

Milei inherited a monthly inflation rate of 25.5% in December 2023, close to 300% annually—the highest in the world—and has quickly reduced it to around 2.3% per month by October, the lowest level since 2018, with forecasts pointing to a further decline in 2026. Furthermore, the budget has gone from an unsustainable deficit to recording a surplus for the first time in 14 years, thanks to deep cuts in unnecessary spending without harming essential services, closing ministries, eliminating useless agencies, reducing subsidies, and cutting tens of thousands of bloated public-sector jobs from the final stretch of the previous administration.

Letting the economy breathe works.

Appropriate liberalisation policies have significantly reduced poverty. UCA estimates show a nearly 20 percentage point drop from the crisis peaks and a rate in the 31–36% range—the lowest level in six years—while UNICEF estimates that around 1.7 million children have been lifted out of poverty over the past two years. Furthermore, independent analysts place the “real poverty” inherited from Alberto Fernández at levels much higher than 41.7% if the exchange rate was fully adjusted; in any case, even using official figures, the turnaround is undeniable: far fewer people in poverty and greater purchasing power for vulnerable groups when inflation is tackled at its root.

Argentina was already in a recession when Milei took office. Argentina’s GDP fell by 1.6% in 2023, according to INDEC, and had already been declining since 2022, with a 2.2% seasonally adjusted drop in the fourth quarter of 2022. GDP fell by 1.3% in 2024 and soared by 5.2% in the first nine months of 2025. The 2025 economic growth figures have more than compensated for the deficit, demonstrating robust and healthy growth that is not influenced by public spending. The IMF predicts a growth rate of approximately 4.5% for 2025, placing it among the highest in Latin America. By 2026, projections from major organisations place GDP growth at around 3%–4%, with cumulative growth of nearly 8 percentage points between 2025 and 2026. This strong momentum contrasts with the chronic stagnation left behind by socialism, which had the audacity to claim that its problem was that “we’re growing too much.” The confirmation of the GDP decline in 2023 showed that Argentina’s GDP was virtually the same as in 2011, despite soaring public spending and deficits that artificially boosted economic activity.

Milei’s austerity measures have resulted in a sharp reduction in public-sector employment—which had been inflated by Kirchnerism and financed with debt and inflation—while the private sector begins to take over. Milei created more than 650,000 new private-sector jobs. Total employment has grown by 330,000 jobs in two years, according to INDEC, and, most importantly, public-sector employment has fallen by 370,000 unnecessary political positions inflated by Kirchnerism, while private-sector employment has risen sharply. The government’s objective is for formal private-sector employment to grow steadily as the GDP rebound consolidates, with various scenarios placing the unemployment rate at around 6.5% by 2026 if the reforms are maintained.

Public debt reached very high levels at the end of 2023 and has since fallen dramatically in net terms. The debt burden on the economy has fallen sharply: it has been reduced by tens of billions of dollars and has declined in absolute terms and as a percentage of GDP, and the inherited explosive dynamic has been halted. The debt-to-GDP ratio dropped from over 100% between 2020 and 2023, peaking at 155%, to 70% in the third quarter of 2025.

We cannot forget the debt hole hidden in the Central Bank left by socialism. Milei eliminated the central bank’s debt by transferring it to the Treasury, as it should be, and in the two years of his presidency, total debt recorded a net decrease of 48.5 billion. Minister Luis Caputo and Central Bank President Santiago Bausili played a crucial role in defusing the potential explosives left by socialism, preventing them from exploding in the face of the next administration. We cannot forget Diego Santilli’s efforts to ensure the safety and peace of mind of Argentinians in the face of constant sabotage threats, nor Manuel Adorni’s efforts to dismantle socialist propaganda and disinformation.

The primary surplus has been achieved by cutting spending, reducing the burden of inefficient subsidies, curbing public employment growth, and prioritising essential social programs. Fewer subsidies for everyone and more assistance for those who truly need it allow us to reduce debt, control spending, and help those who really require it.

Deregulation to remove the state’s boot from the economy.

DNU 70/2023 and the Ley Bases have dismantled hundreds of regulations in the markets for goods, services, rentals, foreign trade, and public enterprises, led by the Ministry of Deregulation headed by Federico Sturzenegger. The elimination of price controls, the reduction of tariffs, and the opening of sectors such as air transport and real estate have resulted in a greater variety of products and better prices for consumers.

Now it’s investment’s turn, which needs to eliminate the legal uncertainty created by socialism. The RIGI programme, designed to attract large investments of over $100 million, offers regulatory stability and legal certainty, and more than $31 billion in projects have already been announced, especially in mining and energy.

It is essential that Spanish companies invest in the Argentina of freedom, as the United States has done, or they will miss out on the ongoing period of prosperity.

Voters perceive all these macroeconomic achievements: in the midterm legislative elections, La Libertad Avanza won around 41% of the vote compared to the Peronists’ 32%, marking the first time since 1989 that Peronism has ceased to be the largest minority in Congress and enabling the acceleration of structural reforms.

It’s not a miracle. It’s not an experiment. Milei and his government team have implemented economic logic and an unequivocal defence of freedom.

The recipe for our countries is clear: reject gradualism and defend freedom without any reservations… and prosperity flourishes.

Tyler Durden Mon, 12/15/2025 - 19:15

Two Years Of Milei: A Resounding Success?

Two Years Of Milei: A Resounding Success?

Authored by Daniel Lacalle,

When we analyze the economic situation in Argentina, we must first understand the calamity to which the country was left by the socialist government of Alberto Fernandez and years of Peronism.

According to UNICEF, Javier Milei has lifted more than one and a half million children out of poverty in just two years. He has restored economic growth and relaunched Argentina, which was heading towards a disaster similar to Venezuela’s due to the policies of Kirchnerism, often referred to as the “socialism of the XXI century”.

When Milei assumed power, Argentina was hurtling toward hyperinflation and misery, on an accelerated path of economic devastation. Inflation was 25.5% per month.

Under the socialism of the 21st century, Kirchnerism’s “inclusive monetary policy” led to skyrocketing cumulative inflation: between 2011 and 2015, Cristina Fernández de Kirchner oversaw a roughly 175% increase in prices, while Alberto Fernández’s destructive term resulted in a cumulative inflation rate of 1,020%, the highest among the previous five presidents, which meant that prices nearly multiplied tenfold. These policies sank the peso, triggered massive inflation, and drove poverty to over 41.7%, according to official figures. Alberto Fernández left behind nearly 19 million poor and 4.3 million indigent people, multiple exchange rates, a devastating capital control regime, and a bankrupt central bank with net negative reserves of over 15 billion.

Socialism impoverished a rich country like Argentina at an alarming and very rapid rate.

Javier Milei came to power with non-negotiable goals: a fiscal surplus, curbing inflation, and reviving a sunken economy. His first two years in office conclude with a spectacular macroeconomic record: inflation has plummeted from global highs, poverty has fallen back to 2018 levels, the economy is back on a growth trajectory, net debt has been significantly reduced, and real wages are beginning to recover—all thanks to the largest adjustment and deregulation plan in decades.

Milei inherited a monthly inflation rate of 25.5% in December 2023, close to 300% annually—the highest in the world—and has quickly reduced it to around 2.3% per month by October, the lowest level since 2018, with forecasts pointing to a further decline in 2026. Furthermore, the budget has gone from an unsustainable deficit to recording a surplus for the first time in 14 years, thanks to deep cuts in unnecessary spending without harming essential services, closing ministries, eliminating useless agencies, reducing subsidies, and cutting tens of thousands of bloated public-sector jobs from the final stretch of the previous administration.

Letting the economy breathe works.

Appropriate liberalisation policies have significantly reduced poverty. UCA estimates show a nearly 20 percentage point drop from the crisis peaks and a rate in the 31–36% range—the lowest level in six years—while UNICEF estimates that around 1.7 million children have been lifted out of poverty over the past two years. Furthermore, independent analysts place the “real poverty” inherited from Alberto Fernández at levels much higher than 41.7% if the exchange rate was fully adjusted; in any case, even using official figures, the turnaround is undeniable: far fewer people in poverty and greater purchasing power for vulnerable groups when inflation is tackled at its root.

Argentina was already in a recession when Milei took office. Argentina’s GDP fell by 1.6% in 2023, according to INDEC, and had already been declining since 2022, with a 2.2% seasonally adjusted drop in the fourth quarter of 2022. GDP fell by 1.3% in 2024 and soared by 5.2% in the first nine months of 2025. The 2025 economic growth figures have more than compensated for the deficit, demonstrating robust and healthy growth that is not influenced by public spending. The IMF predicts a growth rate of approximately 4.5% for 2025, placing it among the highest in Latin America. By 2026, projections from major organisations place GDP growth at around 3%–4%, with cumulative growth of nearly 8 percentage points between 2025 and 2026. This strong momentum contrasts with the chronic stagnation left behind by socialism, which had the audacity to claim that its problem was that “we’re growing too much.” The confirmation of the GDP decline in 2023 showed that Argentina’s GDP was virtually the same as in 2011, despite soaring public spending and deficits that artificially boosted economic activity.

Milei’s austerity measures have resulted in a sharp reduction in public-sector employment—which had been inflated by Kirchnerism and financed with debt and inflation—while the private sector begins to take over. Milei created more than 650,000 new private-sector jobs. Total employment has grown by 330,000 jobs in two years, according to INDEC, and, most importantly, public-sector employment has fallen by 370,000 unnecessary political positions inflated by Kirchnerism, while private-sector employment has risen sharply. The government’s objective is for formal private-sector employment to grow steadily as the GDP rebound consolidates, with various scenarios placing the unemployment rate at around 6.5% by 2026 if the reforms are maintained.

Public debt reached very high levels at the end of 2023 and has since fallen dramatically in net terms. The debt burden on the economy has fallen sharply: it has been reduced by tens of billions of dollars and has declined in absolute terms and as a percentage of GDP, and the inherited explosive dynamic has been halted. The debt-to-GDP ratio dropped from over 100% between 2020 and 2023, peaking at 155%, to 70% in the third quarter of 2025.

We cannot forget the debt hole hidden in the Central Bank left by socialism. Milei eliminated the central bank’s debt by transferring it to the Treasury, as it should be, and in the two years of his presidency, total debt recorded a net decrease of 48.5 billion. Minister Luis Caputo and Central Bank President Santiago Bausili played a crucial role in defusing the potential explosives left by socialism, preventing them from exploding in the face of the next administration. We cannot forget Diego Santilli’s efforts to ensure the safety and peace of mind of Argentinians in the face of constant sabotage threats, nor Manuel Adorni’s efforts to dismantle socialist propaganda and disinformation.

The primary surplus has been achieved by cutting spending, reducing the burden of inefficient subsidies, curbing public employment growth, and prioritising essential social programs. Fewer subsidies for everyone and more assistance for those who truly need it allow us to reduce debt, control spending, and help those who really require it.

Deregulation to remove the state’s boot from the economy.

DNU 70/2023 and the Ley Bases have dismantled hundreds of regulations in the markets for goods, services, rentals, foreign trade, and public enterprises, led by the Ministry of Deregulation headed by Federico Sturzenegger. The elimination of price controls, the reduction of tariffs, and the opening of sectors such as air transport and real estate have resulted in a greater variety of products and better prices for consumers.

Now it’s investment’s turn, which needs to eliminate the legal uncertainty created by socialism. The RIGI programme, designed to attract large investments of over $100 million, offers regulatory stability and legal certainty, and more than $31 billion in projects have already been announced, especially in mining and energy.

It is essential that Spanish companies invest in the Argentina of freedom, as the United States has done, or they will miss out on the ongoing period of prosperity.

Voters perceive all these macroeconomic achievements: in the midterm legislative elections, La Libertad Avanza won around 41% of the vote compared to the Peronists’ 32%, marking the first time since 1989 that Peronism has ceased to be the largest minority in Congress and enabling the acceleration of structural reforms.

It’s not a miracle. It’s not an experiment. Milei and his government team have implemented economic logic and an unequivocal defence of freedom.

The recipe for our countries is clear: reject gradualism and defend freedom without any reservations… and prosperity flourishes.

Tyler Durden Mon, 12/15/2025 - 19:15

Supertankers Bound For Venezuela Make U-Turns, Fearing US Interdiction, As PDVSA Hit By Cyberattack

Supertankers Bound For Venezuela Make U-Turns, Fearing US Interdiction, As PDVSA Hit By Cyberattack

Fresh reporting in Reuters has tracked at least five supertankers which have changed course on Monday after initially heading to Venezuela to load crude oil, following this month's US naval seizure of a Venezuelan tanker.

Among these was a Russian tanker transporting crude for Venezuela’s state-owned oil company PDVSA, along with at least four other supertankers en route to Venezuelan ports. They made u-turns on fears of facing US military interdiction. 

Illustrative, via Gcaptain.

This also comes after last Friday Bloomberg and others reported that Washington was preparing to carry out further seizures of sanction-linked oil tankers off Venezuela's coast.

Venezuela’s Foreign Minister Yvan Gil condemned these moves and threats as piracy, calling it an "illegal and aggressive act of sabotage."

Officially at least, the Trump-ordered military build-up in the southern Caribbean is all about disrupting and dismantling drug trafficking operations. But many analysts see the real motivator is ease of access to major underground oil reserves.

This has meant that Venezuela’s oil exports are effectively paralyzed, with the exception of Chevron's shipments which are operating under US authorization.

Meanwhile, those earlier telegraphed Trump-authorized CIA covert ops appear to be well underway, given new reports of a major cyber attack on Venezuela's national oil company.

"Venezuela's state-run oil company PDVSA has been subject to a cyberattack, it said on Monday, adding its operations were unaffected, even though four sources said systems remained down and oil cargo deliveries were suspended," according to Reuters.

PDVSA in a statement said that foreign interests were complicit with domestic entities in the cyberattack, as part of Washington's broader efforts to control the nation's sovereign resources oil by "force and piracy." PDVSA further said it was recovering from the attack and trying to bring systems online.

However, some sources have said that the effects from the cyberattack are still ongoing, with a company source stating: "There is no delivery of cargoes, all systems are down."

In total the threat of seizures has left several tankers loaded with a combined 11 million barrels of oil and fuel basically stuck in Venezuelan and Caribbean waters.

Tyler Durden Mon, 12/15/2025 - 18:50

Supertankers Bound For Venezuela Make U-Turns, Fearing US Interdiction, As PDVSA Hit By Cyberattack

Supertankers Bound For Venezuela Make U-Turns, Fearing US Interdiction, As PDVSA Hit By Cyberattack

Fresh reporting in Reuters has tracked at least five supertankers which have changed course on Monday after initially heading to Venezuela to load crude oil, following this month's US naval seizure of a Venezuelan tanker.

Among these was a Russian tanker transporting crude for Venezuela’s state-owned oil company PDVSA, along with at least four other supertankers en route to Venezuelan ports. They made u-turns on fears of facing US military interdiction. 

Illustrative, via Gcaptain.

This also comes after last Friday Bloomberg and others reported that Washington was preparing to carry out further seizures of sanction-linked oil tankers off Venezuela's coast.

Venezuela’s Foreign Minister Yvan Gil condemned these moves and threats as piracy, calling it an "illegal and aggressive act of sabotage."

Officially at least, the Trump-ordered military build-up in the southern Caribbean is all about disrupting and dismantling drug trafficking operations. But many analysts see the real motivator is ease of access to major underground oil reserves.

This has meant that Venezuela’s oil exports are effectively paralyzed, with the exception of Chevron's shipments which are operating under US authorization.

Meanwhile, those earlier telegraphed Trump-authorized CIA covert ops appear to be well underway, given new reports of a major cyber attack on Venezuela's national oil company.

"Venezuela's state-run oil company PDVSA has been subject to a cyberattack, it said on Monday, adding its operations were unaffected, even though four sources said systems remained down and oil cargo deliveries were suspended," according to Reuters.

PDVSA in a statement said that foreign interests were complicit with domestic entities in the cyberattack, as part of Washington's broader efforts to control the nation's sovereign resources oil by "force and piracy." PDVSA further said it was recovering from the attack and trying to bring systems online.

However, some sources have said that the effects from the cyberattack are still ongoing, with a company source stating: "There is no delivery of cargoes, all systems are down."

In total the threat of seizures has left several tankers loaded with a combined 11 million barrels of oil and fuel basically stuck in Venezuelan and Caribbean waters.

Tyler Durden Mon, 12/15/2025 - 18:50

Owners Of Inherited IRAs Face Dec 31 Deadline To Start Taking Withdrawals

Owners Of Inherited IRAs Face Dec 31 Deadline To Start Taking Withdrawals

If you inherited an IRA in 2020 or later, you could be facing a Dec 31 deadline to start taking required minimum distributions from the account, under threat of IRS penalties. 

The new rules spring from the December 2019 SECURE Act, which attacked long-beloved rules that previously allowed beneficiaries to stretch required distributions over their life expectancies, allowing them to enjoy tax-deferred growth along the way. The new rules apply to those who inherited either a traditional or Roth IRA from someone who died in 2020 or after. Those who inherited IRAs before 2020 still get to use the friendlier old rules. 

Rather than simply giving beneficiaries 10 years to drain inherited IRAs at the pace of their choosing, the IRS insisted on a more complicated annual requirement

The new rules apply when the deceased IRA owner was old enough to be taking RMDs of their own before they died. The new requirements do not apply to spouse beneficiaries, who will still be able to take over the inherited retirement plan assets and have them treated as if they had always been theirs. There's also forgiving flexibility for so-called "eligible designated beneficiaries," such as those who are disabled or chronically ill, minor children of the deceased owner, and others who are not more than 10 years younger than the deceased owner.

Between the SECURE Act's passage and the IRS's tardy 2024 announcement about the final rules, IRA beneficiaries were subjected to a multi-year, rolling bureaucratic fiasco, unsure what they were supposed to do. While the feds sorted things out, the IRS said it wouldn't penalize anyone who didn't take a required distribution in 2021, 2022, 2023 or 2024. However, those days of rare IRS leniency are over, with affected beneficiaries now required to calculate a 2025 RMD by applying a life expectancy factor to the balance of their inherited IRA as of Dec 31 of last year.

If you fail to take the RMD, the penalty is a hefty 25% of the amount you should have taken out but didn't. That penalty is trimmed to 10% if you correct things within two years. Among other institutions, Vanguard offers an online, inherited IRA RMD calculator that anyone can use.

Inaction between now and Dec 31 could trigger a big tax penalty for owners of inherited IRAs

There's no need to "make up" for the years when the IRS waived the penalty, and the 10-year clock is still based on the year of death. After taking RMDs driven by your life expectancy each year through Year 9, you'll have to take out the entire remaining balance by Dec 31 of the year containing the 10th anniversary of the original IRA-owner's death. For example, consider a situation where an IRA owner died in 2021 and left her IRA to her adult child. After taking RMD's in 2025, 2026, 2027, 2028, 2029 and 2030, the beneficiary has to take out whatever's left in 2031.  

The RMD math drives distributions of relatively small proportions of the account before Year 10. Building on the previous example, a 58-year-old beneficiary of an inherited IRA that had a balance of $100,000 on Dec 31 2024 would have to take just $3,378 this year. All things equal, those RMD's grow gradually larger each year. However, investment performance and withdrawals will affect the account balance used to determine subsequent RMDs. 


It could be in your interest to take out more than the RMD. For example, if the account is big enough, a large, single withdrawal in Year 10 could push you into a higher tax bracket, or have a domino affect on other elements of your tax return driven by your adjusted gross income. Then there's the question of what future tax rate you'll be subjected to in a late-stage empire that's $38 trillion in debt.  

You may also want to factor in your future income needs. Someone who's retiring a few years before that Year 10 lump-sum requirement may plan on taking big distributions over the last few years of the 10-year span, after his other income has dipped.   

Tyler Durden Mon, 12/15/2025 - 18:25

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