China's Largest Oil Producer Suspends Purchases Of Venezuela Oil

Chinese state-owned giant PetroChina, Asia's largest oil and gas producer, which hasn’t bought Venezuelan crude since the U.S. imposed sanctions on Venezuela in 2019, is not too keen to start buying again after the U.S. authorized global traders to market the crude from the world’s biggest reserves holder, OilPrice reports.  

PetroChina has told traders not to buy or trade Venezuela’s oil - a trade that is now under U.S. control after the capture of Nicolas Maduro, trading sources with knowledge of the matter told Reuters on Tuesday.  

The Chinese oil and gas giant stopped imports of Venezuelan crude in 2019, when the first Trump Administration slapped sanctions on Venezuela’s oil sector, for fear of running afoul of the restrictions. Before the 2019 sanctions, PetroChina was the single biggest buyer of crude from Venezuela.

Now PetroChina is refraining from buying crude marketed by the world’s top oil trading houses – with U.S. blessing – as it assesses the situation, according to Reuters’ sources.  

One reason is the concern that the U.S. controls the oil from Venezuela, another is that the offers aren’t competitive compared to other supplies of heavy crude, including from Canada, the sources told the publication.

The discount of Venezuela’s flagship crude grade Merey relative to Brent has narrowed by about $10 per barrel since the ousting of Maduro.

Vitol, the world’s biggest independent oil trader, is offering Venezuelan crude to Chinese refiners at a discount that’s three times narrower compared to the illicit sales from Venezuela before Maduro’s ousting, anonymous traders with knowledge of the development told Bloomberg last week.

Vitol has recently offered cargoes of Venezuela’s flagship Merey heavy sour crude grade to China at a discount of $5 per barrel to ICE Brent, according to Bloomberg’s sources.

This compares with a discount as wide as $15 a barrel to ICE Brent on a delivered basis before the U.S. blitz in Venezuela and the capture of Maduro.

Meanwhile, Chinese independent refiners, which gorged on cheap sanctioned Venezuelan crude in the past few years, are likely welcoming what could be their last imports of sanctioned Venezuelan oil, which loaded before the U.S. blockade.  

Tyler Durden Tue, 01/27/2026 - 20:30

Tucker Carlson Presses Peter Schiff On Bitcoin As A New Global Reserve Currency

Authored by Christina Comben via CoinTelegraph.com,

In a new interview with US media personality Tucker Carlson, gold advocate Peter Schiff renewed his attack on Bitcoin and the broader crypto industry.

Speaking on Carlson’s show, he argued that Bitcoin is a speculative instrument with “no actual use” and warned that proposals for a US strategic reserve amount to a taxpayer‑funded bailout for early adopters. 

Schiff also spent much of the conversation attacking official inflation data and fiscal policy, telling Carlson that Americans are “being lied to” about inflation, and arguing that the government changed the Consumer Price Index so that it could blame the private sector for the higher cost of living, when it was “simply raising prices in response to inflation.”

He singled out President Donald Trump’s signature Big Beautiful Bill as “the worst thing that we’ve done under Trump,” and argued that the legislation not only preserved all the deficit spending under President Joe Biden, but “made it worse” by “increasing government spending” and cutting taxes.

“Complete waste of capital”

Schiff turned to the crypto industry and complained about the US government “promoting” it, which is a “complete waste of capital” and has caused many Americans to “throw their money away” on crypto.

Peter Schiff discusses inflation, gold and Bitcoin. Source: Tucker Carlson

​When Carlson cuts in to ask, “Why is it throwing it away?” and why betting on Bitcoin is any different from buying gold or stocks, Schiff answers that BTC has “no actual use” beyond speculation and “the only reason anybody wants to buy it” is that “they think the price is going to go up.” “That is the sole source of demand,” he said. 

He added that people who “made money in crypto” only did so because “the crypto that they bought a long time ago went way up,” not because they produced anything of value, or made people’s lives better. 

“How’s that different from buying gold? You’re not making anything. You’re not making anyone’s life better,” Carlson interjects, to which Schiff replies:

“There’s a big difference… [Bitcoin] is never going to earn money in the future. It is a non-income-producing digital asset. It’s got nothing in common with gold.”

Bitcoin: The new global reserve currency?

​Summarizing Schiff’s arguments about the state of the global economy and the decline in purchasing power of the US dollar, Carlson asks why Bitcoin could not become the next global reserve asset as confidence in the dollar erodes.

Schiff dismisses that idea outright, claiming that a Bitcoin strategic reserve is really just a “Bitcoin bailout fund,” trying to use taxpayer money, and alleging that some early holders “were able to pay off a bunch of politicians and get them to support Bitcoin.”

​He argues that both BTC and fiat currencies are ultimately faith‑based, but that central banks cannot rely on Bitcoin because it has no non‑monetary demand and would collapse if they ever tried to liquidate it at scale. 

By contrast, he calls gold “real money” and “a valuable commodity” used in jewelry, aerospace, consumer electronics and medicine, and says that tokenized, fully backed gold on blockchains can deliver internet‑native payments without creating inflation or relying on ever‑rising token prices.

The price of gold has been on a tear lately, reaching a new all-time high over $5,000 an ounce on Monday, amid rising global trade tensions, while the Bitcoin price fell briefly below $86,000, signaling a sharp divergence as the precious metal surged 17% in January.

Tyler Durden Tue, 01/27/2026 - 20:05

Government Steams Towards Partial Shutdown Amid Democrat Demands Over ICE

As a Friday deadline approaches for a partial government shutdown, Republicans are backed into a corner following national uproar over two deadly ICE shootings by federal agents in Minneapolis amid growing concern over the agency's tactics. 

Senate Majority Leader John Thune (R-SD) plans to move forward with a six-bill spending package, which includes funding for the Department of Homeland Security (DHS) which runs ICE. Democrats are insisting that R's drop the DHS language from the package, however Republicans are refusing to do so. 

The House-passed bill would allocate another $10 billion for ICE on top of the $76 billion the agency is already slated to receive over four years from the One Big Beautiful Bill Act, which was signed into law last year. 

Right now Trump is focusing on "de-escalatory measures," as one administration official tells Punchbowl News. To that end, the admin has already demoted Gregory Bovino, the CBP official in charge of Minneapolis operations - who's been replaced by border czar Tom Homan. Trump also spoke by phone with Minnesota Gov. Tim Walz and Minneapolis Mayor Jacob Frey on Monday. Meanwhile, DHS Secretary Kristi Noem has agreed to testify before the Senate Judiciary Committee after months of refusing to do so. According to Punchbowl, Noem "has a real problem on both sides of the aisle on the Hill," and her top aide, Corey Lewandowski, met with Trump for two hours on Monday night. 

Polymarket odds of a shutdown by Jan. 31 (Saturday) are now hovering around 79%. 

Democrats Are Still A No

Senate Democrats - who are vowing to block the funding if it includes the DHS language, say the proposals being floated the the White House and Senate Republicans are unrealistic, and they're a 'no' until they see significant reforms to the conduct of federal immigration officers in Minneapolis and other cities - including prohibiting them from wearing masks during federal operations and requiring judicial search warrants before entering a suspect's home. 

On Monday, Senate Democratic Leader Chuck Schumer (D-NY) announced that Democrats will gladly speed through procedural obstacles to pass the funding package as long as it doesn't include DHS funding.

"If [Senate Majority Leader John Thune (R-S.D.)] puts those five bills on the floor this week, we can pass them right away. If not, Republicans will again be responsible for another government shutdown," said Schumer. 

Of note, stripping the DHS / ICE funding from the FY2026 package would require a new vote in the House, which is on recess this week - so there would be a short-term shutdown at minimum. 

GOP congressional leaders and the White House are desperate to avoid a scenario in which the funding package has to go back to the House, which explains their opposition to splitting off the DHS bill.

Here’s the concern gripping the top levels of the Trump administration — the House simply can’t pass another DHS funding bill under any circumstances.

Even if Trump were to cut a deal with Democrats that can get through the Senate, House Republicans believe they can’t round up 218 votes to pass a rule to get it on the House floor. Or alternatively, find 290 lawmakers willing to pass it under suspension of the rules. Republicans just don’t believe there’s a coalition in the House that can pass another DHS bill.

That’s why Trump has been focused on “de-escalatory measures,” as one administration official told us, a first step toward placating Democrats. -Punchbowl News

The Senate is expected to hold an initial vote to advance the package on Thursday, the day before Friday's deadline. 

Republican Lawmakers Scramble

Following the incidents in Minnesota, Republican lawmakers in both chambers began calling for a thorough investigation into Saturday's shooting, and have asked the Trump administration to immediately ease tensions in Minneapolis. 

"If I were President Trump, I would almost think about, ‘OK, if the mayor and the governor are going to put our ICE officials in harm’s way and there’s a chance of losing more innocent lives, then maybe go to another city," said Rep. James Comer (R-KY), chairman of the House Oversight and Government Reform Committee in a Sunday comment to Fox News' Maria Bartiromo. 

Sen. Ted Cruz (R-TX) called for "everyone" to "ratchet the anger down," while noting that the two US citizens "who have been killed in confrontations with law enforcement" were "from all appearances ... not violent criminals," The Hill notes. 

Sen. Rand Paul (R-KY) who chairs the Senate Homeland Security Committee, sent letters to the heads of CBP, ICE, and US Citizenship and Immigration Services on Monday calling on them to testify on Feb. 12 before his committee. 

How Far Will Dems Push?

While Democrats currently appear to have the upper hand in this fight, Punchbowl asks how far should they push it? While specific targeted policy changes and reforms are likely to gain traction with the White House - which is desperate to get past the moment, calls to "abolish ICE" will be ignored.

There’s also the obvious risk for Democrats: The political fallout from triggering a partial government shutdown just a couple of months after instigating a record 43-day funding lapse. And for DHS, this would hit FEMA at a time when much of the country is dealing with the aftermath of a severe winter storm. The Coast Guard and TSA are under DHS too. Plus, ICE would be funded anyway because of the cash infusion it got from the GOP’s One Big Beautiful Bill last year. -Punchbowl

Then there's the Pentagon, Labor, Transportation, and HUD departments which would be directly affected by the shutdown. The risk for Democrats is that Trump makes concessions on ICE but Democrats continue to 'resist.'

Tyler Durden Tue, 01/27/2026 - 19:10

Patel Says FBI Has Discovered Groups Funding Minnesota Protests

On Monday, FBI Director Kash Patel on Tuesday confirmed that the bureau is investigating groups that are believed to be organizing protests against ICE officials in Minneapolis, as daily demonstrations throughout the city continue.

People march and gather near the post office during a protest, Sunday, Jan. 18, 2026, in Minneapolis. AP Photo/Yuki Iwamura

Patel also said the bureau has made progress investigating groups that are allegedly funding the demonstrations. 

"We’ve got also investigations ongoing into the funding of this. We’ve made substantial progress," he said. "We’ve actually found groups and individuals responsible for funding it ‘cause it’s not happening organically."

FBI Director Kash Patel Announces They've IDENTIFIED Funders Of The Left-Wing Terrorist Groups Attacking ICE In Minnesota, ‘This Isn’t Organic’

“We've got also investigations ongoing into the funding of this. We've made substantial progress. We've actually found groups and… pic.twitter.com/pDV7EIInE5

— Benny Johnson (@bennyjohnson) January 26, 2026

Patel also said four people were arrested earlier this month after a federal vehicle was broken into in Minneapolis, and another person was arrested on Sunday.

"In a vehicle, we discovered not just [FBI] firearms, which thankfully we recovered, but also personal information about law enforcement," Patel told Johnson. "That personal information was being used on the ground to issue threats of life to FBI agents, along with their wives and their children. There are going to be more arrests on that same matter, today and tomorrow. We’re not done."

As the Epoch Times notes further, the FBI last week announced it would be offering a reward of up to $100,000 for information leading to the arrest and capture of individuals who allegedly stole government property out of an FBI vehicle.

This comes after the Department of Homeland Security (DHS) said a protester, Alex Pretti, was shot and killed after he approached Border Patrol officers with a 9 mm semiautomatic handgun. Officials did not specify whether Pretti brandished the gun (he did not).

Videos from the scene circulating on social media appear to show Pretti holding an object in his hand as he struggles with agents. The man’s family said in a statement shared by Sen. Bernie Sanders (I-Vt.) that Pretti was “clearly not holding a gun” but instead had “his phone in his right hand, and his empty left hand is raised above his head.

Earlier this month, Renee Good was shot and killed by an ICE officer in Minneapolis on Jan. 7. Videos show she was driving her Honda Pilot toward the officer when he fired at her. Federal authorities said the officer was struck by the vehicle and hospitalized with internal bleeding.

The Trump administration has defended the ICE agent involved in the shooting, saying his life was at risk. Local and national Democratic officials say both shootings were unjustified and have now warned they could move to shut down the federal government before a Jan. 30 funding deadline if funding for DHS, the agency that oversees ICE, is included in the package.

“Democrats sought common sense reforms in the Department of Homeland Security spending bill, but because of Republicans’ refusal to stand up to President Trump, the DHS bill is woefully inadequate to rein in the abuses of ICE,” Senate Minority Leader Chuck Schumer (D-N.Y.) said in a statement on Saturday. “I will vote no.”

Former Presidents Barack Obama and Bill Clinton also decried the shooting of Pretti, with Obama claiming it’s a sign that “many of our core values” are “increasingly under assault.” In a statement Sunday, Clinton also offered critical comments about the Minneapolis operation and condemned the events leading to Pretti’s death.

President Donald Trump wrote on Truth Social on Jan. 26 that he had spoken with Minnesota Gov. Tim Walz, a Democrat, and told Walz that “I would have (Border Czar) Tom Homan call him, and that what we are looking for are any and all Criminals that they have in their possession.” Walz on Monday confirmed he spoke with Trump.

Tyler Durden Tue, 01/27/2026 - 18:50

Tether Launches USAT, A Federally Regulated, Dollar-Backed Stablecoin For The US Market

Authored by Micah Zimmerman via BitcoinMagazine.com,

Tether, the world’s largest digital asset company by stablecoin circulation, announced Tuesday the official launch of USA₮, a federally regulated, dollar-backed stablecoin designed specifically for use in the United States under the recently enacted GENIUS Act.

USA₮ is issued by Anchorage Digital Bank, N.A., a federally chartered U.S. bank and one of the first institutions approved to issue payment stablecoins under the new law, Tether said.

The launch marks Tether’s first stablecoin built to operate fully within the U.S. regulated financial system, following years of regulatory scrutiny around offshore-issued dollar tokens.

The debut follows the company’s announcement late last year detailing the token’s design and naming former White House Crypto Council Executive Director Bo Hines as CEO of Tether USA₮. With Tuesday’s rollout, USA₮ is now available to U.S. users seeking a dollar-backed token that complies with federal banking and stablecoin rules.

The GENIUS Act established the first nationwide framework governing stablecoins marketed to U.S. users, requiring full reserve backing, bank or qualified issuer status, and ongoing regulatory supervision. Under the law, offshore-issued stablecoins that do not meet these standards face restrictions across U.S.-regulated exchanges, banks, and payment platforms.

USA₮ is structured to meet those requirements. According to the company, Cantor Fitzgerald will serve as the stablecoin’s designated reserve custodian and preferred primary dealer, providing transparency and oversight of reserves from launch. 

Anchorage Digital Bank will handle issuance, compliance, and on-chain settlement infrastructure.

Tether’s dominant role in the crypto space

While Tether’s flagship USD₮ remains the most widely used stablecoin globally, its offshore structure limited its role in the U.S. market under the new law. 

USA₮ allows Tether to maintain USD₮’s international dominance while offering U.S. institutions a regulated alternative tailored to domestic payment and settlement systems.

“This launch represents a new chapter for digital dollars in the United States,” said Paolo Ardoino, CEO of Tether.

“USD₮ has proven at global scale that digital dollars can deliver trust and utility. USA₮ extends that mission with a federally regulated product made in America.”

Bo Hines said the new stablecoin is aimed squarely at institutional users. “USA₮ is designed to meet federal regulatory expectations while delivering stability, transparency, and responsible governance,” he said. “It ensures the United States remains competitive in the evolution of digital money.”

During its initial rollout, USA₮ will be available on platforms including Kraken, Crypto.com, OKX, Bybit, and MoonPay, with additional U.S.-regulated exchanges and banking partners expected to follow.

According to bitcointreasuries.net, Tether holds 96,370 bitcoin, worth roughly $8.6 billion

Tyler Durden Tue, 01/27/2026 - 18:25

Yale Goes Tuition-Free For Middle-Class As Dartmouth Prez Pushes 'Protections For Unpopular Views'

Starting this fall, Yale University will offer free tuition for new students from households earning less than $200,000 - excluding room, board, fees and books, while admitted students whose families make less than $100,000 will pay nothing.

Tuition alone at Yale is $72,500, while the full cost of attendance - including room, board, fees and books, is around $98,000. 

The move adds Yale to a growing list of Ivy League institutions with similar financial-aid programs aimed at middle-class families, including Harvard and MIT. 

The past few years have brought a string of announcements from schools making their financial aid more generous, including Harvard, MIT and University of Pennsylvania, which each offer tuition-free entry to families making up to about $200,000. Schools including Stanford, Princeton and the University of Texas system cover tuition for students whose families earn close to or above six figures. -WSJ

"We have made a lot of progress with low-income families and students over the past decade, and now we want to continue to make those inroads with some of our middle-class and upper-middle-class families," said Yale's dean of undergraduate admissions and financial aid, Jeremiah Quinlan. 

That said, Quinlan told the Wall Street Journal that the deal applies to families with "typical assets," though he did not elaborate on what defines typical. "If you have an outsized asset portfolio, even if you have an income level that’s in one of these areas, you might get a different financial-aid offer," he added. 

Roughly 1,000 Yale undergrads out of 6,800 attend the school at no cost, while 56% receive some aid. This, as the university's endowment grew 11% last year to $44 billion, the WSJ reports. 

According to a Harvard-based team of researchers at Opportunity Insights, enrollment at Yale has been strong among low-income (subsidized) students and high-income students vs. the "missing middle," the group said. 

Fixing College

While Yale says the free tuition push is about equality, it also comes as many are questioning the value of a degree in the first place. Recent graduates are struggling to find jobs in a rapidly changing market, while progressive ideology has turned college campuses into training camps for radical protest, anti-white racism, and social dysfunction. 

As Dartmouth president Sian Leah Beilock writes in the Journal this week, "American higher education has a trust problem," adding "Colleges can also be too ideological: On many campuses, students are exposed to a limited range of perspectives, signaling to them what rather than how to think."

Also, 'return on investment matters,' Beilock continues. 

Affordability isn’t enough. A college education is one of the largest investments a family will ever make, and there must be an undeniable return. Institutions should be held accountable for student outcomes: Are our graduates getting jobs, pursuing meaningful work, and contributing to their communities?

And the most important point...

Third, re-center higher education on learning rather than political posturing. Too often, colleges and universities have participated in the culture wars. The result is an environment in which students and faculty feel they must toe an ideological line rather than explore ideas that fall outside prevailing norms.

Beilock is calling for colleges to 'embrace institutional neutrality,' which Dartmouth refers to as 'restraint' - because when colleges rush to issue statements over every major political event, "we signal there’s a “right” position and that opposing views are unwelcome."

The problem, according to Beilock is campus culture - which needs to be realigned so that "controversial speakers are heard rather than canceled, where disagreement is expected rather than feared, and where people can explore ideas without being defined by them."

And How? 

Universities must 'double down on supporting faculty who provide structured opportunities for disagreement on complex issues and provide clear protections for faculty, staff and students who voice unpopular views.'

Beyond that, Beilock is calling for:

- Equal opportunity, not equal outcomes. "When an A is the default, it stops meaning “excellent.” It means “I showed up.”"

- Defense of a genuine meritocracy of ideas. "Research funding, faculty hiring and academic recognition should be grounded in scholarly excellence, not ideological litmus tests."

Based?

Tyler Durden Tue, 01/27/2026 - 18:00

Censorship & The Ratchet Effect: Threats To Free Speech Outlast Supposed Crises

Authored by Julian Adorney via TheDailyEconomy.org,

Late last year, YouTube announced plans to reinstate accounts that had been banned at the behest of the Biden Administration for posting alleged COVID-19 misinformation. The announcement likely came as a relief to groups like the Children’s Health Defense Fund, a group associated with Robert Kennedy Jr.; and to Senator Ron Johnson; both of whom were punished by the social media giant for posting videos that ran contrary to the Biden administration’s official policy on the COVID-19 vaccine and on COVID-19 treatments.

This is a good move. But we should remember, it wasn’t just YouTube that decided to punish speech disapproved by the prior administration. 

A report by the United States House of Representatives’ Committee on the Judiciary and Select Subcommittee on the Weaponization of the Federal Government contains damning evidence that the Biden Administration leaned on social media companies to censor anti-vaccine content during the COVID-19 pandemic. The report details how Facebook, Amazon, and YouTube all shadowbanned or removed content that was critical of the administration’s official stance on the vaccines, the origin of the virus, and more.

The administration’s actions were reckless, and endangered more than just our societal freedom of speech.

For one thing, while it might be tempting to think that the Biden Administration only censored crackpots and conspiracy theorists, the truth is far worse. The report details how the Biden administration leaned on Facebook to censor the “lab leak” theory of COVID-19’s origins, a theory that’s now seen as highly plausible. It similarly asked Facebook to censor “negative information on or opinions about the vaccine,” and internal emails from Facebook report that ““The Surgeon General wants us to remove true information about side effects.”

Prominent scientists who opposed the administration’s position on lockdowns, including Dr. Jay Bhattacharya (current head of the National Institutes of Health) were blacklisted by social media platforms. At the administration’s behest, videos featuring Bhattacharya were removed from YouTube.

All of this did immense damage to our truth-seeking apparatus, during a time when finding the truth could not have been more important. When Facebook dragged its feet on censoring certain content, President Biden publicly accused them of “killing people.” But the same accusation could be made against the Biden Administration itself: by censoring scientific debate during a once-in-a-lifetime pandemic, the administration virtually guaranteed that its response would be worse than if prominent critics were allowed to voice their concerns.

Some proponents of censorship argue that the more important an issue is, the more justification there is for censorship. This makes a superficial kind of sense: after all, nobody wants hucksters selling snake oil to take advantage of sick people by claiming that they’re curing cancer. But more often, the inverse is true: the higher the stakes of a given issue, the more essential it is that experts on all sides be allowed to voice their concerns freely. By preventing this robust scientific debate, the Biden administration ensured that the policies it implemented (including lockdowns and vaccine mandates) were worse than if prominent critics had been given a seat at the table.

The Biden Administration’s actions also took a sledgehammer to institutional trust in America, which has fallen to concerning levels. The decline of institutional trust worries critics across the political spectrum, from progressives concerned that our society is becoming anti-science to conservatives like Yuval Levin, for a simple reason: our society works better when we trust our institutions and when, in turn, they show themselves to be trustworthy.

By politicizing the scientific debate about the COVID-19 pandemic, the Biden Administration did profound damage to institutional trust. A study by Pew finds that in April 2020, 87 percent of Americans “had confidence in scientists to act in the public’s best interests.” By late 2023, that number had fallen to 73 percent. By summer of 2024, the Centers for Disease Control and Prevention had only a 33 percent approval rating among Republicans. Many on the left chalk this trend up to Republicans being anti-science, but the House Judiciary report tells a different story: many on the right lost trust in an institution that they justifiably saw as having been shamelessly politicized.

Trust in news has plummeted as well. In 2019, 18 percent of Americans had a “great deal” or “quite a lot” of faith in television news. By 2024, that number had fallen to 12 percent. In 2019, 23 percent of respondents had a “great deal” or “quite a lot” of faith in newspapers; by 2024, that number was just 18 percent. There are multiple reasons for this decline in trust, but it’s hard to see evidence of the administration jawboning companies into censoring so-called “misinformation” on COVID-19 and not conclude that many Americans are simply tired of feeling lied to by the news.

The other problem created by the administration has to do with what economist Robert Higgs calls the “ratchet effect.” Here’s how Michael Matulef describes the phenomenon:

The ratchet effect theory, as popularized by Robert Higgs in his book Crisis and Leviathan, refers to the tendency of governments to respond to crises by implementing new policies, regulations, and laws that significantly enhance their powers. These measures are typically presented as temporary solutions to address specific problems. However, in history, these measures often outlast their intended purpose and become a permanent part of the legal landscape.

One danger of the Biden Administration’s actions is that they can become precedents for future administrations to further erode free speech protections in future crises. The Biden administration inured people to having their freedom of speech censored in the name of public health, which makes it that much more likely that we’ll be equally willing to shrug off future abuses. When it comes to free speech, we the people can feel like the proverbial frog sitting in a pot of increasingly hot water, and it should concern all of us whenever an administration decides to increase the temperature by a few degrees.

When we’re discussing freedom of speech, First Amendment defenders can be strident about the principles involved; as more than one First Amendment absolutist has argued, even if there were no practical benefit to free speech beyond letting people speak freely, it would still be worth defending. 

That’s true, but we shouldn’t let ourselves forget that the First Amendment is also a profoundly practical tool for building a good society.

When governments censor their people, they do profound damage to the truth-seeking apparatus and risk people’s lives and livelihoods with poorly-thought-out policies.

They damage the institutional trust that keeps society functioning.

No matter what we think of the arguments made by lockdown resistors and COVID-19 vaccine skeptics, we should be appalled that our government tried to censor them.

Tyler Durden Tue, 01/27/2026 - 16:20

White House Expects Largest Tax Refund Season As IRS Opens 2026 Filing

Authored by Naveen Athrappully via The Epoch Times,

The IRS announced on Jan. 26 the opening of the 2026 tax filing season.

“The IRS expects about 164 million individual tax returns for tax year 2025 to be filed ahead of the Wednesday, April 15, federal deadline. Taxpayers can find a range of tools and filing options on IRS.gov to help them prepare and file their returns,” the agency said in a news release.

The IRS has various online tools and resources that taxpayers can use before, during, and after filing their federal tax returns, the agency said in a Jan. 8 statement. The One Big Beautiful Bill Act, signed into law by President Donald Trump in July, carries provisions that can help taxpayers lower their tax bills and raise their refund amounts.

“The Internal Revenue Service is ready to help taxpayers meet their tax filing and payment obligations during the 2026 filing season,” IRS Chief Executive Officer Frank Bisignano said.

“As always, the IRS workforce remains vigilant and dedicated to their mission to serve the American taxpaying public. At the same time, IRS information systems have been updated to incorporate the new tax laws and are ready to efficiently and effectively process taxpayer returns during the filing season.”

The White House said in a Jan. 26 statement that millions of Americans are poised to receive “significantly larger tax refunds” this filing season due to the One Big Beautiful Bill Act.

The legislation is set to deliver the “largest tax refund season in U.S. history,” the White House said, projecting average refunds to jump by $1,000 or more, citing various analyses.

Some of the key provisions of the bill contributing to higher refunds are no taxes on tips or overtime up to certain income thresholds, an additional deduction for seniors, and a deduction in auto loan interest payments.

An analysis made by the Tax Foundation cited by the White House expects tax refunds in 2026 to average $3,800 per taxpayer due to the legislation.

Comparatively, the refund amount was $3,052 in tax year 2024 and $3,004 in 2023.

In its latest statement, the IRS said that most refunds are issued within 21 days. However, refunds that require additional review from the agency may take longer.

Direct deposit is the fastest way for taxpayers to receive a refund, according to the agency. The IRS began phasing out paper refund checks beginning Sept. 30, in line with a March 25 executive order signed by Trump.

The order, “Modernizing Payments To and From America’s Bank Account,” stated that the use of paper-based payment systems by the federal government was imposing “unnecessary costs; delays; and risks of fraud, lost payments, theft, and inefficiencies.”

It asked all departments and agencies to comply with the directive by transitioning to an electronic funds transfer system. Paper checks were allowed for certain exceptions, such as individuals who do not have access to banking services, and emergency situations where electronic payments would cause “undue hardship” for the recipient.

Taxpayers are urged to provide their bank account and routing numbers for their refunds to be electronically deposited.

The IRS estimates most refund payments for the Earned Income Tax Credit (EITC) and the Additional Child Tax Credit (ACTC) to be reflected in the bank accounts or debit cards of taxpayers by March 2. This is only applicable for taxpayers who have chosen the direct deposit option, and whose returns do not face any issues with processing.

Taxpayers can track their refund status by using the IRS Individual Online Account, IRS2Go app, or the Where’s My Refund? tool, the agency said. Where’s My Refund? is expected to offer projected deposit dates for most of the early EITC and ACTC refund filers by Feb. 21.

“As America celebrates its 250th anniversary, the IRS and its employees are excited to once again serve American taxpayers in meeting their tax filing obligations during the 2026 filing season,” Bisignano said. “The IRS encourages taxpayers to speed the processing of their returns by using e-file, instead of paper.”

IRS Readiness

Meanwhile, a Sept. 29 audit report issued by the Treasury Inspector General for Tax Administration had raised concerns about the IRS’s ability to handle the 2026 filing season.

“Several initiatives reduced the IRS workforce since January 2025,” the report said. “Key IRS functions responsible for managing the filing season have lost 17 to 19 percent of their workforce.” In addition, the IRS’s Information Technology function has faced staffing losses as well, it said.

“We expect workforce reductions to impact key processing programs and customer service going forward. We are concerned about how this will impact the 2026 Filing Season.”

However, in the Jan. 8 IRS statement, Acting IRS Commissioner Scott Bessent said that the agency had prepared for the 2026 filing season.

Even before the passage of the One Big Beautiful Bill Act, “Treasury and IRS were diligently preparing to update forms and processes for the benefit of hardworking Americans,” Bessent said.

“President Trump is committed to the taxpayers of this country and improving upon the successful tax filing season in 2025.”

Tyler Durden Tue, 01/27/2026 - 14:00

Person In Critical Condition After Border Patrol-Involved Shooting In Arizona

A person is in critical condition following a shooting incident early Tuesday morning in Pima County, Arizona. 

Photo via KVOA

Emergency responders from the Santa Rita Fire District (SRFD) and American Medical Response arrived on the scene around 7:30 a.m., where they found one individual in custody who was in critical condition, KVOA reports.

First responders provided immediate medical care before the patient was transferred to a local medical helicopter, which took the person to a regional trauma center. 

The Pima County Sheriff's Department and the FBI are assisting in the investigation.

Stay tuned for updates...

Tyler Durden Tue, 01/27/2026 - 13:48

Ugly 5Y Auction Tails Amid Faltering Demand

If yesterday's 2Y auction was stellar, today's 5Y sale was the opposite.

Just after 1pm, the US completed the sale of $70BN in 5Y paper at a high yield of 3.823%, up from 3.747% one month ago and the highest since July. It also tailed the When Issued 3.820% by 0.3bps, the 7th tail in the last 8 auctions.

The bid to cover of 2.34 was essentially unchanged from last month's 2.35 and just below the six auction average of 2.36.

The internals were also on the soft side: Indirects were awarded 60.7%, up from 59.5% but below the recent average of 61.0%; and with Directs right in line with expectations (28.5% vs 28.7% recent average), Dealers were left with 10.8%, up modestly from 8.8% last month and also just above the recent average of 10.4%.

Overall, this was an ugly auction, yet the market reception was just modestly chilly at best, with 10Y yields barely moving after the break. After all, the market has the Fed to worry about tomorrow, a far biggest catalyst.

Tyler Durden Tue, 01/27/2026 - 13:28

Los Angeles Homeless Services CEO Charged With Defrauding Taxpayers To Pay For Luxury Lifestyle

Via Headline USA,

The CEO of a Los Angeles homeless services charity faces federal and state fraud charges after prosecutors said he lived a luxury lifestyle that included lavish vacations and designer clothes paid for with $23 million in public money meant to keep people off the streets.

Alexander Soofer, 42, was arrested Friday at his $7 million home that investigators believe he afforded using funds that were supposed to support his nonprofit Abundant Blessings, said First Assistant U.S. Attorney Bill Essayli.

The charitable group was contracted with the Los Angeles Homeless Services Authority, a county agency, to use taxpayer money to find shelter and provide three meals a day for more than 600 homeless residents.

Instead, prosecutors said Soofer bought a $125,000 Range Rover, a $2,450 Hermes jacket, a vacation home in Greece and a trip to Hawaii, where he stayed at the Four Seasons hotel that was famously the setting for the HBO TV show “The White Lotus.”

“He was living the high life while the people suffering, the homeless, lived on the streets with no shelter, no food,” Essayli said during a Friday news conference with Los Angeles County District Attorney Nathan Hochman.

If convicted as charged, Soofer could receive a sentence of up to 20 years in prison, Essayli said. An email was sent Monday seeking comment from Soofer’s attorney, Hilary Potashner.

According to the indictment, Soofer falsified invoices to claim he was serving fresh meals and renting out rooms while homeless people were instead fed canned beans and bulk packs of microwavable ramen noodles.

Investigators found Soofer falsified records to cover up the fact that he paid himself to “rent” properties for homeless people that he already owned, the indictment said.

“Mr. Soofer called his company Abundant Blessings, but the only abundant blessings were the blessings he gave himself,” Hochman said.

During the news conference, the prosecutors pointed to concerns that billions spent to combat homelessness haven’t brought enough people off the streets. The number of homeless residents across Los Angeles County dropped 4% last year, according to the annual count released last July. The tally estimated that some 72,000 people were living in shelters or in sidewalk encampments countywide.

Los Angeles County officials last March moved to take control of hundreds of millions of dollars in spending, citing two scathing audits that found that the homeless services authority spent it recklessly and without transparency.

Between 2018 and 2025, Soofer received more than $23 million in homeless housing funding. Of that, more than $5 million came directly from the county homeless services authority and more than $17 million came through a Los Angeles-based nonprofit called Special Service for Groups Inc., the U.S. Attorney’s Office said. None of the money came directly from the state.

Soofer is charged federally with wire fraud and the state charges include 11 felony counts of conflict of interest, two felony counts of offering false evidence and five felony counts of forgery.

Soofer appeared in court Friday but did not enter a plea. He was released on $1.5 million bond and is scheduled to be arraigned in federal court on Feb. 26. His arraignment on state charges was not yet scheduled.

The arrests became fodder for the ongoing war of words between President Donald Trump’s administration and California Gov. Gavin Newsom. After a conservative commentator placed blame for the fraud on Newsom, the Democratic governor’s press office pushed back.

“This case was uncovered by local investigators working with law enforcement — exactly the kind of accountability and oversight the state has pushed for,” Newsom’s office said.

That prompted a response by Essayli, who again blamed Newsom.

“You and the California legislature facilitated this fraud by handing out billions in tax dollars to these nonprofits with zero vetting and zero state oversight,” Essayli said Friday on social media.

Tyler Durden Tue, 01/27/2026 - 13:05

Guns, Grenades, Killer Drones, & The Hulk: Highlights From The 2026 SHOT Show

Last week was the annual SHOT Show - an industry-only convention held in Las Vegas, Nevada that's notoriously difficult to get into. Fortunately, we were able to call in a favor and walked 25 miles over four days. We met (or almost met) all sorts of interesting folks, including Deputy AG Todd Blanche, Harmeet Dhillon, FBI whistleblower Kyle Seraphin, Ted Nugent, Lou Ferigno, and the guys behind Kommandostore.

Walking into the show, we were confronted with a giant, ominous drone - the IAI APUS-60, with a SIG M250 belt-fed machine gun mounted to it.

The system can detect targets out to 25km (15.5 miles) with an electro optical sensor that has 10x zoom, while its infrared sensor has 5x zoom for night missions. This drone, which again is massive, can carry 77 lbs - or 200 rounds of 7.62x51mm when the M250 is equipped. Fortunately, being a SIG, it did not negligently fire itself (all firing pins were removed from all guns at the show).

Sig told TheFirearmBlog that the drone is designed to provide loitering air support to something like a forward operating base or a moving convoy (for example). Would you like to know more?

Colt, meanwhile, stuck a grenade launcher on a drone:

Photo via soldiersystems.net

Below are some of the interesting products we came across, however scroll to the end for links to even more...

Glock Gen6

Next up is the Glock Gen6, which was introduced at SHOT. Initially offered in 9mm G17 (full size), G19 (compact) and G45 (G19 slide on a G17 frame), the new Glocks have improved ergonomics, a rough-texture frame pattern and deeper slide serrations, which translates to less boxy design, more comfort, and easier racking. 

Photo via nrawomen.com

The trigger reach geometry has also been reduced, which will hopefully eliminate the dreaded "Glock finger," as the folks from guns.com note. 

Via guns.com Bizon anyone?

Got a 9mm AK-V or KP9? Always wanted a Russian PP-19 Bizon, one of the most difficult and expensive Russian firearms to procure? Do you like 55-round helical magazines? Say no more... The folks at Stuff and Things, Inc. have come out with a conversion kit! Or, PSA sells the whole gun. 

Via yours truly

SHHH!

This here's a cute little number - the Station Six 9mm suppressed 'covert' luger. Not only is it silenced, it's a bolt action (single shots) that's engineered for maximum silence. 

Tracing its roots back to the covert, World War II-era Welrod pistol, and more modernized contract B&T VP9, the B&T Station SIX (Silenced Project caliber 9) harkens back to the famed SOE Station IX, where the original concept was conceived by the, then, Inter-Services Research Bureau. This updated, integrally suppressed pistol features a new grip and updated magazines, yet maintains its non-descript appearance, whisper-quiet sound signature and unique rotating bolt operation. 

30MM Grenade Rifle

Barret Arms, perhaps most famous for their 50 caliber sniper rifles, brought a few of their new 30mm grenade rifles to SHOT. Developed in partnership with MARS Inc (not the candy), this little number won the US Army's XTECH Soldier Lethality competition's Precision Grenadier System (PGS) requirement. 

From Barrett: "PGS is a soldier portable, shoulder fired, semi-automatic, magazine fed, integrated armament system (weapon, ammunition, fire control) that enables rapid, precision engagements to destroy personnel targets in defilade and Unmanned Aerial Systems (UAS) targets at close range."

DIAL THE GATE, WE'RE COMING IN HOT!

Not a new gun, but Stargate nerds were able to hold and caress a FN PS90 bullpup. 

HULKING out

Actor and 2A supporter Lou Ferigno was at the show, where we got to meet him at the Gun Owners of America booth. Extremely nice guy, who agreed to arm wrestle GOA's Stephen Willeford (also extremely nice). 

Lucky for Stephen, nobody made Lou mad...

RARE SIGHTING: A representative of the Kingdom of Wakanda was in town, though we must have missed their booth at the show.

What Else Is New?

Check out the following links to TheFirearmBlog (no affiliation) for excellent coverage on way more guns than we saw.

Palmetto State Armory's Fresh Crop Of New Guns

Eotech Scopes, Lasers, Silencers And Red Dots

Now The Chiappa Rhino Comes In .44 Magnum

Kaliber Tech KT10 Semi-auto 6.5 PRC & .300 WSM

Silenced Bond Arms Derringers, Better Suppressed Glocks

AS Designs MP5 Forced Reset Triggers

Automatic For The People: Now You Can DIY A Gatling Gun

An FG42 Or Walther WA2000 For Everyone

And remember...

Tyler Durden Tue, 01/27/2026 - 12:45

The Gold Move Is A Vote Of No Confidence In The Entire Global Financial Architecture

By Michael Every of Rabobank

As Axios puts it, ‘Wall Street's playbook for 2026 already needs to be rewritten’. Many players’ do.

Gold is through $5,000 and silver up 5.5% at over $109 – it was even higher intraday. You might not trade either, and I remain sceptical that we are moving back to a gold or silver standard, even for limited international trade. Yet besides the notable industrial implications from silver (and copper), this is hoarding, and a vote of no confidence in the entire global financial architecture. Wall Street is calling it “the Debasement Trade.’ That fails to see that, in time, it can lead to Wall Street being put in a basement, or up against a wall. Plenty to think about there.

The IMF head warned the world to ‘prepare for a global run on the US dollar’, adding the EU should issue more common debt to provide investors with an alternative safe asset to gold and US Treasuries. There are vast structural changes implied in every part of that sentence.

In Japan, 10-year yields are +4.5bps, reversing the recent JGB rally. As the WSJ notes, ‘Wall Street Is Fixated on a Possible Yen Intervention.’ After all, Japanese CPI is 2.1%, 30-year yields are 3.66%, the BOJ can’t do too much because public debt is so high, the country has run five annual trade deficits in a row, removing its protective shield, and a weak JPY isn’t helping, just feeding inflation. Some see Japan needing a US bailout before these JGB problems flow back to US Treasuries… even as markets are wondering who is going to bail the US out.

There, note that, the US is breaking the global architecture to bail itself out. That starts with geopolitics and geoeconomics, then flows back to markets:

PM Takaichi just underlined her country’s alliance with the US would 'collapse' if Japan fled a Taiwan crisis. As a result, the US-Japan trade deal --which isn’t an FTA because time is too short for technocratic politesse-- is logically likely to hold; Japan’s industry will be worked into US military supply chains; and the US could logically extend its still-powerful fiat largesse to Tokyo. What other options do Japan or the US have? “Because markets”?

Yet South Korea has seen Trump threaten to increase US tariffs back to 25% because Seoul is “not living up to” the trade deal struck last year. As another stick there, the latest US National Defence Strategy makes clear South Korea, as others, is expected to do far more for its own defense under the US umbrella: but the implication could be that umbrellas can be closed if those under them don’t contribute to holding tightly against strong geopolitical winds.

On which, China’s Xi just purged most of his senior generals on a scale unseen since Mao: the WSJ states one was accused of selling nuclear secrets to the US. It certainly appears all power over the PLA is now in Xi’s hands; but all else is far less certain.

In Europe, the EU parliament delayed its decision to unfreeze the EU-US trade deal after the Greenland crisis, while an FTA with India is on the cards. However, NATO chief Rutte warned Europe can’t defend itself without the US, and “The EU should stop dreaming of creating a European pillar for NATO and continue to build ties with the US despite Trump.” The New York Times adds, ‘As Europe's reliance on natural gas grows, so does Trump’s leverage’, noting concern that “Trump could turn the strong position that the US has gained in the oil and gas industry into a weapon to try to coerce other countries..." So, what is the ultimate EU decision to be?

UK PM Starmer stated the UK doesn’t have to choose between the US and China and is heading to Beijing to strike deals. Note that as with Canadian PM Carney, such trips are planned well in advance. Indeed, Politico claims behind closed doors, ministers have pushed for closer economic collaboration with Beijing for a year, even as they signed a US deal that runs the other way - and as it’s reported that China hacked the Downing Street phones for years. Will the US express the same unhappiness to the UK here as it did to PM Carney, and to PM Starmer over his proposed Chagos Islands deal. If so, does he have to choose?

Carney’s retort that he has no intention of signing an FTA with China (which allows the US to dissolve the USMCA), leaves one wondering what exactly a “strategic partnership” with Beijing, as part of a “New World Order”, involves: the political or military sphere? Meanwhile, in the geoeconomic one, again as predicted, the Canadian press notes the US has broached the idea of “something approaching a North American customs union… The partners would apply a common trade policy to other countries, even globally.” And the US would set it. That would, as its press also notes, render Canada’s status akin to that of Hong Kong within China. Meanwhile, Canada, like the EU, is looking to India for more trade – but that ‘Hong Kong’ issue is in the background.

Not as extreme a case, but still notable, Australia’s financial press underlines that it can expect to be next to be told to make a choice and to spend at least 3.5% of GDP on defence.

Meanwhile, as middle powers talk about propping up the liberal world order without the US, the USS Lincoln Carrier Strike Group has arrived in Middle East, showing what real power is. On one hand, Trump says ‘Iran wants to make a deal,’ yet we may see US strikes against regime targets to trigger new mass protests, and there are suggestions it may impose a Venezuela-style blockade on Iranian oil exports – the kind of upstream disruption of commodity supply chains to China we flagged last year as a trump card vs. Beijing’s control of rare earths (where Japan-China tensions are driving high-tech mineral prices to record highs). Markets will be watching closely.

In the broader region, the Houthis said they may close the Red Sea and Suez Canal again if the US strikes Iran; Hezbollah also said, “we are not neutral,” but it remains to be seen if it is still lethal or not. More broadly, key players are realigning on the expectation that in near future Iran will be less of a threat and the US will be less involved: we see an emerging Saudi-Qatar-Egypt-Turkey-Somalia-Sudan-Yemen-Pakistan alignment vs. the UAE-Israel-Somaliland-South Sudan-South Yemen-India. How will the liberal middle powers tread those waters?

Against this backdrop, it’s reported that a ‘Record number of people in UK live in ‘very deep poverty’, analysis shows’; ‘Health Insurance Is Now More Expensive Than the Mortgage for These Americans’; and ‘Carney unveils hike to GST credit, other measures targeting affordability.’ Moreover, ‘The Wait List for a Birkin or Rolex Is Getting Shorter’ says the WSJ, while “Falling resale values show that even makers of the world’s most popular luxury goods are feeling a slowdown.” Oh, the humanity!

In short, expect domestic politics to stay as ‘interesting’ as geopolitics – and the two are inextricably linked. Indeed, even as Trump appears to be taking a more conciliatory stance over ICE in Minnesota for now, hedge fund star Ray Dalio warns of ‘a more clear civil war.’ Is a Birkin or a Rolex much help in one of those? I’m asking for a friend.

Lastly, as markets wait for the Fed this week while wondering about political pressure on the central bank, Indonesian President Prabowo's nephew is now a step closer to securing a position as Bank Indonesia’s Deputy Governor. Yes, playbooks are being rewritten – with some very old plays.

Tyler Durden Tue, 01/27/2026 - 11:45

US Weighs Precision Strikes On Iranian Officials As Govt Is 'Weakest' Since 1979

On the one hand there are reports that the Trump administration "is open for business" when it comes to negotiations with Iran. "If they want to talk, and they know our terms, we are open to have a conversation," a senior US official has told Axios. But on the other, amid this 'openness' toward cutting a deal (presumably on the nuclear and ballistic missile fronts), President Trump is said to be weighing a menu of escalation options aimed squarely at forcing regime change in the Islamic Republic, according to fresh regional and US reporting.

Middle East Eye, citing Arab officials, reports that Washington is actively considering direct strikes on senior targets in Tehran. "The US is weighing precision strikes on 'high-value' Iranian officials and commanders who it deems responsible for the deaths of protesters, a Gulf official familiar with the discussions told Middle East Eye."

US Air Force image

The Jerusalem Post reports that another option under discussion is a full blockade of Iranian oil exports - a replay of last year's Venezuela playbook. That campaign saw Washington impose an embargo, seize oil tankers, and ultimately kidnap Venezuelan President Nicolás Maduro in the Jan.3rd military raid on Caracas.

Treasury Secretary Scott Bessent has emerged as a leading advocate of economic warfare, arguing that collapsing Iran's economy would create conditions severe enough to trigger an internal uprising against the government, or starve the system until it breaks (as also happened in Iran's ally Syria). US Treasury days ago began hitting Tehran officials with new protest-related sanctions.

Other senior officials are pushing for a more kinetic approach. Members of Trump's Cabinet have urged targeted military strikes against Iranian government and military assets, but say these could be limited in scope akin to military action in the June 12-day war involving Israel.

Earlier this month, Trump reportedly held back from striking Iran, citing concerns that the Pentagon lacked sufficient forces in the region to decisively topple the government, also at a moment the US Navy strike force was built up on the southern Caribbean. 

But a former US official told Middle East Eye that the odds of a strike are now higher than they were just weeks ago. Currently there's a major military buildup ensuing across the Middle East, including the deployment of an aircraft carrier strike group (the USS Abraham Lincoln strike group), additional fighter jets, and advanced air defense systems - signaling 'all options' are indeed on the table.

Protests is in Iran have long gone quiet, but what has changed? The NY Times reports Tuesday:

President Trump has received multiple U.S. intelligence reports indicating that the Iranian government’s position is weakening, according to several people familiar with the information.

The reports signal that the Iranian government’s hold on power is at its weakest point since the shah was overthrown in the 1979 revolution.

But the dilemma remains as hawks in the administration urge action: "Mr. Trump warned that he could strike Iran as the government’s bloody crackdown on the protests expanded. Still, his advisers have been divided on the benefits of strikes, particularly if they were simply symbolic strikes against elements of the government involved in the crackdown," The NY Times report adds.

Washington logic: Give them an ultimatum that they'll never accept anyway and consequently you have the perfect reason to start bombing them...

The Americans are basically asking the Iranians to abandon their entire defense strategy. It’s completely untenable for the regime. https://t.co/oGRDn1dDLh

— Woofers (@NotWoofers) January 26, 2026

One anti-Iran think tank hawk, Jason Brodsky, who is Policy Director at United Against Nuclear Iran (UANI), writes that "Iran's regime wants a JCPOA-like deal. It is highly unlikely Khamenei will agree to the terms America is demanding because it would basically amount to a form of regime change. But the Islamic Republic will try and lead the U.S. on to think it will negotiate meaningfully to avoid an attack and entrap the U.S. in endless negotiations."

But we should note that Tehran also has little reason to ever trust Washington, given the original JCPOA was collapsed when the first Trump administration unilaterally pulled out of it.

Tyler Durden Tue, 01/27/2026 - 11:25

Federal Officials Refer Minnesota To DOJ For Allowing Boys In Girls' Sports

Authored by Aaron Gifford via The Epoch Times,

Federal officials have referred Minnesota to the Justice Department (DOJ) over alleged civil rights violations stemming from the state’s refusal to halt male participation in female sports.

The referral came from the Education Department (ED) and Department of Health and Human Services (HHS), which concluded in September that the state violated Title IX’s prohibition on sex-based discrimination in federally funded education.

In a news release on Monday, Education Secretary Linda McMahon accused state officials of failing to uphold federal law.

“Despite repeated opportunities to comply with Title IX, Minnesota has chosen defiance—continuing to jeopardize the safety of women and girls, deny them fair competition, and erode their right to equal access in educational programs and activities,” McMahon said. “The Trump Administration will not stop until accountability is delivered for Minnesota’s students.”

HHS Secretary Robert F. Kennedy said the federal government “will not look the other way” on this matter.

“When states allow males to compete in girls’ sports, they deny young women and girls the protections the law guarantees,” he said in the release.

The referral came amid escalating tensions between the Minnesota officials and the Trump administration, which has taken a number of recent executive actions in response to concerns about the fraudulent use of federal money in the state.

“Today’s letter notifies Minnesota that ED and HHS will refer the matter to DOJ for proceedings, which could result in termination of Minnesota’s Federal funding from ED and HHS,” the news release states.

Last year, an investigation by the administration determined that Minnesota’s education department and its official high school athletic league violated Title IX by allowing males to both compete in multiple female sports programs and occupy female-only bathrooms and locker rooms as well.

The Epoch Times reached out to the Minnesota Department of Education and the Minnesota High School State League for comment.

A proposed resolution agreement was provided to the state agencies to voluntarily resolve this issue, but the state agencies initially ignored the request and later announced that they would not accept the resolution agreement or engage in negotiations, McMahon said in the news release.

The investigations, which were opened in June, determined that a biological male had competed on the Champlin High School girls’ varsity fastpitch softball team since 2023, leading the squad to a winning record against all-girl opponents all three seasons. It also found that other districts had male athletes competing on girls’ lacrosse, volleyball, track and field, and ski (alpine and Nordic) teams.

According to a “toolkit“ on the Minnesota Department of Education website, “Title IX requires schools provide transgender students with the right to participate in such activities, including athletics, in a manner consistent with their gender identity.”

“The Minnesota State High School League allows participation for all students regardless of their gender identity or expression in an environment free from discrimination with an equal opportunity for participation in athletics and fine arts,” the document says.

The U.S. Supreme Court recently heard oral arguments from state leaders in West Virginia and Idaho asking justices to uphold their state laws preventing males from participating in female sports.

Tyler Durden Tue, 01/27/2026 - 11:05

Southwest Airlines Ends Open Seating, Moves To Reservation-Based System

Authored by Rob Sabo via The Epoch Times,

Southwest Airlines’ era of offering passengers open seating is officially ending, as the passenger carrier transitions its seating policy to a reservation-based system common with other airlines starting on Jan. 27.

Southwest announced last summer that it would end its open seating policy to offer customers a wider range of seating options. The airline’s new booking model includes three seating options: standard seating at the back of the aircraft; preferred seating near the front; and extra legroom seats in the front of the cabin and at the exit rows.

Southwest said it will also initiate a new group-based boarding process to replace its old “A,” “B,” and “C” boarding system that encouraged travelers to check in 24 hours prior to departure to secure the coveted “A” boarding option. The new boarding system will be skewed toward passengers who book premium seating options, while customers who choose basic seating will board last. Southwest will need to make physical changes to its departure gates to accommodate the new system, which could take months to complete.

Tony Roach, Southwest Airlines’ executive vice president of customer and brand, said the changes allow customers more choice and control over their flying experience.

“Assigned seating unlocks new opportunities for our customers—including the ability to select extra legroom seats—and removes the uncertainty of not knowing where they will sit in the cabin,” Roach said in a statement announcing the booking shakeup.

“This is an important step in our evolution, and we’re excited to pair these enhancements with our legendary customer service.”

The airline’s new “basic” fare option—formerly called Wanna Get Away—is nonrefundable and does not allow any changes in travel dates or times unless passengers upgrade to a higher tier. Choice Extra is the new name for its former business select option and includes two free checked bags along with priority boarding.

Southwest said on its website that the new booking policy for the extra legroom seats may clash with existing corporate business accounts, which offered priority boarding so business travelers could get first dibs on seats in the front of the plane or those with extra legroom.

“We recognize these changes may impact how business customers interact with Southwest Business,” the airline said. “We are actively working through details on how best to offer updated contractual benefits into future corporate travel agreements, and we will strive to keep you informed on any updates.”

The airline also announced it would change its policy regarding larger travelers who require more room. Starting Jan. 27, passengers who don’t fit within a seat’s armrests will be required to purchase an additional seat. Previously, the airline offered larger passengers the option to purchase a fully-refundable seat or ask for a free one at the gate.

Southwest Airlines’ final flight featuring open seating departed from Honolulu on Jan. 26 and arrived in Los Angeles this morning.

Southwest Airlines has offered open seating since its first flights to Houston and San Antonio from Love Field in Dallas in the summer of 1971. The company went public on the New York Stock Exchange in 1977.

Tyler Durden Tue, 01/27/2026 - 10:30

GM Shares Surge 7% After Surpassing Q4 Estimates, Raising Guidance, Planning $6B Stock Buyback

General Motors exceeded Wall Street’s fourth-quarter earnings expectations and forecast another year of “strong financial performance” in 2026. While revenue fell slightly short, the company announced a 20% dividend increase and a new $6 billion stock buyback program, according to CNBC and GM.

GM reported adjusted earnings per share of $2.51, beating estimates of $2.20, though revenue of $45.29 billion missed expectations.

Shares rose about 7% in early trading.

For 2026, GM projects net income of $10.3 billion to $11.7 billion, adjusted EBIT of $13 billion to $15 billion, and earnings per share between $11 and $13. These forecasts reflect continued investment of $10 billion to $12 billion as the company reevaluates its shift toward electric vehicles.

CEO Mary Barra said GM expects North American profit margins of 8% to 10% this year, up from 6.8% in 2025. She added that GM remains “in a strong position to return capital to shareholders.”

In 2025, GM posted net income of $2.7 billion and adjusted EBIT of $12.7 billion, both down sharply from 2024. Revenue fell 1.3% to $185.02 billion.

The company reported a fourth-quarter net loss of $3.3 billion, driven largely by more than $7.2 billion in special charges tied to EV cutbacks, legal issues, restructuring in China, and the shutdown of Cruise.

Barra said GM’s smaller Detroit headquarters is expected to save “hundreds of millions of dollars” each year.

The report says that the new buyback and dividend increase to 18 cents per share continue GM’s effort to reduce shares outstanding, which fell to 904 million at the end of 2025.

North America remained GM’s strongest region, though profits declined 28.1% to $10.45 billion. International operations improved, while losses in China narrowed.

CFO Paul Jacobson said U.S. tariffs cost GM $3.1 billion in 2025. Barra said the company is “hopeful” the U.S. and South Korea will finalize a trade deal with a 15% tariff, warning that higher tariffs could hurt costs.

“We’re really encouraging the countries to get the trade deal done,” Barra said.

GM continues to rely on South Korea for entry-level vehicles such as the Chevrolet Trax and Buick Envista, making trade policy a key issue for its future performance. 

Tyler Durden Tue, 01/27/2026 - 10:20

Conference Board Consumer Confidence Crashes To 12 Year Lows

After Boomers and Gen X dragged The Conference Board Confidence measure down to eight month lows to end 2025, expectations were for a rebound to start 2026.

But, reality was far worse with the headline plunging from 94.2 (revised up from 89.1) to 84.5 (well below the 91.0 expected) - the lowest since May 2014.

The Present Situation Index - based on consumers’ assessment of current business and labor market conditions - plummeted by 9.9 points to 113.7 in January (from an upwardly revised 123.6).

The Expectations Index - based on consumers’ short-term outlook for income, business, and labor market conditions - tumbled to 65.1 (from 74.6).

Source: Bloomberg

The Expectations Index has now tracked under 80 for 12 consecutive months, the threshold below which the gauge signals recession ahead.

“Confidence collapsed in January, as consumer concerns about both the present situation and expectations for the future deepened,” said Dana M Peterson, Chief Economist, The Conference Board.

“All five components of the Index deteriorated, driving the overall Index to its lowest level since May 2014 (82.2)—surpassing its COVID-19 pandemic depths.”

Among demographic groups, confidence on a six-month moving average basis dipped for all age groups in January, although consumers under 35 continued to be more confident than consumers age 35 and older.

Confidence among all generations trended downward in the month, but Gen Z remained the most optimistic of all generations surveyed.

By income, confidence on a six-month moving average basis ticked downward for all brackets, and consumers earning less than $15K remained the least optimistic among all income groups.

Consumer confidence continued to fade in January among all political affiliations, with the sharpest decline among Independents.

Peterson added:

“Consumers’ write-in responses on factors affecting the economy continued to skew towards pessimism. References to prices and inflation, oil and gas prices, and food and grocery prices remained elevated.

Mentions of tariffs and trade, politics, and the labor market also rose in January, and references to health/insurance and war edged higher.”

Finally, under the hood, The Conference Board survey shows the trend of a weaker labor market continued to accelerate...

Source: Bloomberg

While the labor market languishes, inflation expectations have tumbled (just like they did in the UMich survey)...

Source: Bloomberg

One final (slight) silver lining was that, on net, consumers’ views of their Family’s Current Financial Situation improved slightly in January, after a plunge into negative territory in December was revised upward to reveal a small net positive. 

So, the stock market soars near record highs, GDP is ripping, but consumer sentiment is collapsing?

Tyler Durden Tue, 01/27/2026 - 10:10

"Did The White House Just Blink?" Border Patrol Boss 'Demoted' As Minneapolis Mayor Says Feds Are Leaving

On the heels of President Trump's reconciliatory statement earlier hailing his "very good call" with Governor Tim Walz, and decision to send Tom Homan to the frontlines in Minnesota...

"...we, actually, seemed to be on a similar wavelength," Trump said.

"I told Governor Walz that I would have Tom Homan call him, and that what we are looking for are any and all Criminals that they have in their possession.

The Governor, very respectfully, understood that, and I will be speaking to him in the near future.

He was happy that Tom Homan was going to Minnesota, and so am I! "

...The Atlantic reports that Gregory Bovino has been removed from his role as Border Patrol “commander at large” and will return to his former job in El Centro, California, where he is expected to retire soon, according to a DHS official and two people with knowledge of the change.

CNN's Kaitlan Collins further confirms that DHS has suspended Gregory Bovino’s access to his social media accounts effective immediately.

He spent yesterday responding to people who were criticizing him and raising questions about his unverified claims about Pretti.

This reported decision follows pressure from Senate Democrats who refused to allow the current DHS funding bill to move forward, this threatening another federal government shutdown.

Additionally, Minneapolis Mayor Jacob Frey said after speaking with President Donald Trump that he expects that some federal agents will start leaving the city on Jan. 27.

“I expressed how much Minneapolis has benefited from our immigrant communities and was clear that my main ask is that Operation Metro Surge needs to end,” Frey wrote on X.

“The president agreed the present situation can’t continue.”

Trump said that the conversation with Frey was “very good” and that progress was made.

“Tom Homan will be meeting with [Frey] tomorrow in order to continue the discussion,” Trump posted on Truth Social.

The mayor said he would continue pushing for all federal agents to leave the city.

“Minneapolis will continue to cooperate with state and federal law enforcement on real criminal investigations—but we will not participate in unconstitutional arrests of our neighbors or enforce federal immigration law,” Frey stated on X.

Walz and Frey have repeatedly encouraged the public to protest and demonstrate against immigration operations taking place in the state, at some points using profanity to tell federal officers to leave.

Trump presented a three-point plan to Walz during the call, according to White House press secretary Karoline Leavitt.

The plan calls for Walz, Frey, and other Minnesota leaders to turn over all criminal illegal immigrants who are currently in custody in state prisons and jails to federal authorities.

Those with active warrants or known criminal histories would be immediately deported, Leavitt said during a press briefing on Jan. 26.

The plan also calls for state and local law enforcement to agree to turn over all illegal immigrants who are arrested by local police and for local police to help federal law enforcement in arresting and detaining illegal immigrants who are wanted for crimes, especially violent crimes, she said.

We give the last words to General Flynn...

Did the WH just blink? https://t.co/lyIJ3kQBSq

— General Mike Flynn (@GenFlynn) January 27, 2026

...good question.

Tyler Durden Tue, 01/27/2026 - 09:59

Trump Admin Wins Appeal Of ICE Injunction In Minnesota

Authored by Jonathan Turley,

In a significant victory for the Trump Administration, a panel of the United States Court of Appeals for the Eighth Circuit lifted the injunction of U.S. District Judge Katherin Menendez, who prevented officers from arresting, detaining, pepper-spraying or retaliating against protesters in Minneapolis without probable cause.

In her Jan. 16 decision, Judge Menendez (a Biden appointee and former public defender) ruled in favor of the protesters suing the Department of Homeland Security (DHS) and ICE. She found the plaintiffs were likely to succeed on claims that federal agents violated their First and Fourth Amendment rights.

The Eighth Circuit first flagged how Menendez ignored the fact that the record shows a wide range of conduct raising different conditions for law enforcement:

“We accessed and viewed the same videos the district court did. … What they show is observers and protestors engaging in a wide range of conduct, some of it peaceful but much of it not. They also show federal agents responding in various ways. Even the named plaintiffs’ claims involve different conduct, by different officers, at different times, in different places, in response to different behavior. These differences mean that there are no “questions of law or fact common to the class,” Fed. R. Civ. P. 23(a)(2), that would allow the court to decide all their claims in “one stroke.”

The panel also found Judge Menendez’s order unacceptably vague:

“Second, in addition to being too broad, the injunction is too vague.

…Even the provision that singles out the use of “pepper-spray or similar nonlethal munitions and crowd dispersal tools” requires federal agents to predict what the district court would consider “peaceful and unobstructive protest activity.” The videos underscore how difficult it would be for them to decide who has crossed the line: they show a fast-changing mix of peaceful and obstructive conduct, with many protestors getting in officers’ faces and blocking their vehicles as they conduct their activities, only for some of them to then rejoin the crowd and intermix with others who were merely recording and observing the scene.”

The panel found that Judge Menendez’s order left federal authorities in a dangerous position of not knowing when they could use these crowd control measures: “to the extent the injunction’s breadth and vagueness cause federal agents to hesitate in performing their lawful duties, it threatens to irreparably harm the government and undermine the public interest.”

Notably, Judge Menendez is the same judge reviewing an even more sweeping motion for an injunction to enjoin ICE operations, a filing from Minnesota Attorney General Keith Ellison that I have criticized as constitutionally meritless.

Here is the opinion: Tincher v. Noem

Tyler Durden Tue, 01/27/2026 - 09:45