Jul 10

Today’s News 10th July 2023

  • One-Third Of Seattle Residents May Flee City Over Crime, Costs
    One-Third Of Seattle Residents May Flee City Over Crime, Costs

    One in three residents of Seattle may leave the Democratic stronghold due to skyrocketing crime and the high cost of living, according to a Seattle Times/Suffolk University poll published last month.

    Approximately 33% of those polled said they were ‘seriously considering’ moving out of the city, vs. 67% who said they have no plans to move. Among those who say they’re considering leaving, 37% blame rising costs, while 34% cited public safety as a primary concern.

    Of those considering leaving, renters (44%) were the majority, followed by 27% of homeowners. Those with lower incomes, particularly those making under $20,000, were more likely to blame soaring home prices. The same group understandably also reported experiencing housing insecurity and homelessness at the highest rates.

    In May, Washington governor Jay Inslee signed 10 bills aimed at solving the housing crisis by making home ownership more affordable.

    “Homelessness is a housing crisis,” said Inslee.

    Those in the highest income bracket who make over $250,000 per year, and are more likely to own homes, reported that public safety was their primary concern.

    80% of those who are ‘seriously considering’ moving rated Seattle poorly as a place to live, while 66% said they don’t feel safe in their own neighborhood.

    That said, among the 2/3 of those polled who say they have no plans to move, 88% rated the city as an excellent place to live, while 72% said they felt safe in their own neighborhood.

    The cost of living in the Seattle metro region has exploded over 20% over the last three years – with the area’s home price index now 40% higher than in  2018, while wages have failed to keep up with these increases in costs. Highly-paid tech and finance workers are skewing the city’s income average, according to the Epoch Times.

    Moving patterns revealed these residents were more likely to move out of the county’s wealthiest neighborhoods. While lower-income residents moved less often, they were more likely to move out of the Puget Sound region altogether.

    About 65% of residents considering leaving said the city’s ability to progress on homelessness had worsened, and 60% rated the quality of education as poor.

    According to new Census Bureau data, many people are moving to Florida, which has experienced a population growth of over 22 million people from 2021 to 2022.

    The 1.9% increase was the largest of any US state over this period, exceeding Idaho and South Carolina, which saw their populations grow by 1.8% and 1.7%, respectively.

    “While Florida has often been among the largest-gaining states, this was the first time since 1957 that Florida has been the state with the largest percent increase in population,” said US Census Bureau demographer, Kristie Wilder.

    Tyler Durden
    Sun, 07/09/2023 – 19:00

  • The Supreme Court Should Strike A Blow Against Wealth Taxes
    The Supreme Court Should Strike A Blow Against Wealth Taxes

    Authored by Andrew Wilford via RealClearMarkets.com,

    Wealth tax proposals have been all the rage among progressive politicians of late, despite the many pitfalls of attempting to tax unrealized gains.

    But a case the Supreme Court just took up could render taxation of unrealized gains constitutionally untenable.

    Moore v. United States looks at a provision in the 2017 Tax Cuts and Jobs Act (TCJA). One of the ways that legislators offset the foregone revenue from tax cuts was through a one-time “deemed” repatriation of earnings from U.S. citizens’ shares of foreign corporations.

    Put simply, the deemed repatriation provision acted as if Americans with shares in foreign corporations (above a minimum threshold) had received a dividend representing their share of that corporation’s profits going back to 2006. Never mind that they hadn’t received this dividend — the TCJA treated them as if they had.

    In this sense, the deemed repatriation provision acted very much like a wealth tax. Though corporate shares gain value as the corporation in question is profitable, investors’ gains from these shares are entirely theoretical until they either sell their shares or benefit from those corporate profits in the form of a dividend. The “deemed repatriation” ignored the distinction in American tax law between realized income (which is usually taxable) and unrealized income (which usually isn’t). 

    One couple affected by the deemed repatriation provision, Charles and Kathleen Moore, chose to challenge it in court. Though they had never received any dividends or sold their 13 percent stake in an Indian company that provides agriculture tools to impoverished Indian communities, they were hit by a tax bill under the TCJA just the same. Now, their challenge finds itself before the Supreme Court.

    The case hinges upon the interpretation of the Sixteenth Amendment to the Constitution. Prior to the ratification of the Sixteenth Amendment in 1913, the Constitution granted Congress the power to levy “direct” taxes only if they were equally proportioned among the states — in other words, they could only be levied on a per capita basis.

    The Sixteenth Amendment allowed Congress to ignore this proportionality requirement for “income” taxes specifically. That’s fairly straightforward for normal “income” taxes on wages, dividends, or capital gains — in other words, “realized” income that directly benefits the taxpayer. But whether the Sixteenth Amendment applies to unrealized income, where a taxpayer’s net worth increases but their cash on hand remains the same, is the question before the Court.

    While the case will, of course, hinge upon legal interpretations, the distinction between realized and unrealized income is obvious to most taxpayers. When you receive cash (or an electronic deposit to your checking account), it’s easy enough to set aside part of that for your tax obligations. On the other hand, if your car’s theoretical sales price increases, as many did during the pandemic, it makes little sense for Uncle Sam to demand his share unless you actually go ahead and sell.

    A ruling explicitly describing unrealized income as capital, rather than income, for the purposes of the Sixteenth Amendment would effectively place a judicial stamp of disapproval on wealth tax proposals of all stripes. That would effectively end some of the zanier ideas coming from the left.

    Of course, wealth taxes should be something that Congress avoids because they’re bad policy, are an enormous headache and costly to administer, and harm entrepreneurship. But given that those have never been good enough reasons to stop Congress from doing things in the past, a judicial veto wouldn’t hurt either.

    Tyler Durden
    Sun, 07/09/2023 – 18:30

  • Driverless Cars Hit By 'Coning' Incidents As San Francisco Group Rebels
    Driverless Cars Hit By ‘Coning’ Incidents As San Francisco Group Rebels

    A San Francisco group that stands for “car-free spaces, transit equity, and the end of car dominance” is behind a wave of “coning” driverless cars owned by Waymo and Cruise. 

    Members of the Safe Street Rebels, a group that states cars are “polluting, dangerous & murderous,” are coning driverless cars across the city, which disables the vehicle and forces it to stop. 

    Here is some of the footage of coning incidents:

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    According to ABC7 in San Francisco, the rebellious group has called for a “Week of Cone” ahead of this Thursday’s meeting, where the California Public Utilities Commission will vote to allow Cruise and Waymo to expand operations across the metro area. 

    One member of the group told the local media outlet:

    “Expanded and basically unfettered access to city streets is basically a bad idea.

    “Residents never got a chance to have a say in this, never really consented to be used a human guinea pigs.”

    We’re surprised this group is not affiliated with taxi or Uber drivers who risk being displaced by autonomous taxis in the next several years. 

    Tyler Durden
    Sun, 07/09/2023 – 18:00

  • Tchir: The Battle For Rare Earths & Critical Minerals Heats Up
    Tchir: The Battle For Rare Earths & Critical Minerals Heats Up

    Authored by Peter Tchir via Academy Securities,

    This seemed like one of the longest “short” weeks that I can remember. Maybe it was the Tuesday holiday. Maybe it was because I started the week somewhat jaded (What a “Weird” Week). Maybe it was because the jobs data also forced me to invoke the word “weird” repeatedly (Jobs – What You See Isn’t What You Get?). The fact that my air conditioning unit struggled to keep up with the heat and humidity definitely didn’t help, but neither did watching algo-driven markets (or having to wait until the last hour of trading for stocks to fade). However, I did enjoy catching up with some colleagues on Bloomberg’s Real Yield and talking about credit.

    But enough on that right now, let’s focus on the matter at hand – the battle for resources and chips.

    The week started with China imposing export restrictions on crucial raw materials. Gallium and germanium now require special permission from the government to be exported. These “rare elements” are crucial in the manufacturing of high-end chips.

    The week ended with the Defense Department invoking the Defense Production Act to help collect and (even more crucially) refine the materials in question (Reuters story).

    We have been discussing this theme on many fronts at Academy Securities. Our basic premise has been:

    • China figured out several years ago that rare earths and critical minerals (both their extraction and their processing) would shape the future of global trade and relationships. If the past few decades were shaped by petroleum products, the future will be shaped by these rare earths and critical minerals. We have argued that Russia and India seemed to figure this out a year or so ago (after China) and the U.S. is only recently reacting with the urgency necessary.

    • While sad to say, a tagline that we have been using for two years (or more) is that:

      • The West has a great vision for sustainability, but no plan to get there.

      • China has no vision for sustainability, but a great plan to attain the resources that they think we might need.

    Yes, Yellen is in China (and Blinken was also there recently), but I don’t think that we will see any real thawing of tensions regarding the semiconductor industry or rare earths and critical minerals.

    The cynical side of me expects that China will “throw us a bone” that we will happily gnaw on while they continue to secure the access to and the production of these resources.

    Over two years ago, we published a special SITREP on the topic (Rare Earths – A National Security and Environmental Threat). Generals (ret.) Chinn, Robeson, Kearney, Marks, and Walsh all weighed in on the subject. Michael Rodriguez (Head of ESG) also brought up several salient points which helped form our macro outlook. We will update and refine this outlook in the coming weeks, but this is a great primer and it is (somewhat sadly) easy to see how we got from where we were two years ago to where we are today.

    In February of this year, we “upped the ante” with World War v3.1. While rare earths and critical minerals were a part of that discussion, the main section worth reviewing is “The Semiconductor Industry Viewed Through a Geopolitical Lens”.

    I would put Academy’s track record on predicting the path of U.S./China relations up against anyone’s. The geopolitical insights and experience of the Geopolitical Intelligence Group have been crucial in staying a step ahead of many. However, I do lament that by the time the consensus view catches up with

    Academy’s view, the relationship with China will likely have deteriorated further. Unfortunately, that seems to be occurring again as chips, rare earths, and critical minerals are without a doubt a national security issue with strong bipartisan support.

    Bottom Line

    The February 2021 and February 2023 reports, while dated, are great starting points and worth reviewing even by those who have already been focused this subject.

    While we will be following up more on chips, rare earths, and critical minerals, this also seems like a good time to highlight our From Made in China to Made by China theme. If there is one risk that I think is real (and the market is completely discounting) it is the ongoing shift of China going from making our products to making/selling their own products. That goes hand in hand with their increasing success at getting some level of trading to occur directly in yuan instead of dollars. For those of you who have listened to our calls or watched our webinars, you know that we are not doubting the dollar as the reserve currency, but do see the dollar as the “world wide web” and the yuan as the “dark web”. The scale sounds about right, but maybe it attributes too many negative connotations to trade using the yuan (or maybe not enough depending on your view).

    Artificial intelligence is the hottest topic helping markets (rightfully so in many ways).

    The chip and commodity wars arguably are not getting enough attention.

    My view of this is:

    • Competing with China will be inflationary as we need to secure access to these resources (some of it domestically) and build out processing facilities (domestically or with countries we completely trust).

    • Jobs will be created as part of the process of securing our supply chains, but it will take time, money, and likely the ability to absorb some inflation.

    • Whatever relationship you “hope” that we will return to with China is unlikely to occur. Considering AI, quantum computing, and sustainability (to name a few issues), the stakes are too high and the powers that be in both countries know this and will thwart each other’s attempts to gain the upper hand. It doesn’t mean that we can’t have trade, but whatever relationship we are going to have with China will be something new that is yet to be defined and will be crucial for our economy, companies, and society.

    Maybe for investors, these things will take years to play out and don’t change things much today. However, for companies, those that have gotten ahead of the curve are prospering (and there is still time to react for those that have not). The difficulties that we could face with China regarding chips, rare earths, and critical minerals may lead to some expensive and even seemingly conservative decisions, but those decisions will pay off in the long run.

    Have a great Sunday, hopefully you are having good weather and I did briefly wonder why China was banning geraniums – such pretty flowers.

    Tyler Durden
    Sun, 07/09/2023 – 17:30

  • "It's Seven Grandchildren, Mr. President": NYT Rips Biden For Ghosting Granddaughter
    “It’s Seven Grandchildren, Mr. President”: NYT Rips Biden For Ghosting Granddaughter

    Have you noticed the shift? All of the sudden, the same media which peddled Joe Biden as a virtuous, vigorous, mentally competent alternative to Donald Trump have turned on him.

    Two weeks ago, the White House press corps jumped all over the Biden corruption bombshells – including how Biden’s DOJ allegedly buried, minimized, or otherwise ignored evidence of Hunter Biden’s illegal activities – instead giving him a sweetheart plea deal for multiple crimes that would land anyone else in prison.

    And just two days ago, establishment mouthpiece The Atlantic more or less called the patient in terms of ‘behind the curtain’ support for ol’ Joe.

    Now, the NY Times has joined the party with an article by columnist Maureen Dowd titled: “It’s Seven Grandchildren, Mr. President,” after reports emerged last week that the Biden White House has been instructed not to acknowledge Hunter’s illegitimate daughter, Navy Joan Roberts, who Hunter successfully fought to ensure couldn’t legally use the Biden name. Instead, Biden staffers have been instructed to say that Joe has six grandchildren.

    “What the Navy story reveals is how dated and inauthentic the 80-year-old president’s view of family is,” writes Dowd, adding “The president’s cold shoulder — and heart — is counter to every message he has sent for decades, and it’s out of sync with the America he wants to continue to lead.“

    In short, the Bidens are no longer protected, as it were.

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    “Joe Biden’s mantra has always been that ‘the absolute most important thing is your family.’ It is the heart of his political narrative,” Dowd continued (via the Daily Caller), adding “Empathy, born of family tragedies, has been his stock in trade. Callously scarring Navy’s life, just as it gets started, undercuts that.”

    During the 2021 and 2022 Christmas seasons, Joe and Jill Biden hung up stockings with six of their grandchildren’s names, deliberately excluding Navy’s name from the decorations. Jill Biden also authored a children’s book in 2020 which she dedicated to six of her grandchildren, but not the seventh, Dowd noted in the column. -Daily Caller

    And of course, White House spox Karine Jean-Pierre refuses to address the issue.

    Tyler Durden
    Sun, 07/09/2023 – 17:00

  • "This Made Me Realize How Out Of Touch With 'Reality' The West Is…"
    “This Made Me Realize How Out Of Touch With ‘Reality’ The West Is…”

    Authored by Raul Ilargi Meijer via The Automatic Earth blog,

    Momentum

    An article at RT made me realize today – all the more- how out of touch with reality the “west” is.

    It talks about how Joe Biden warns Xi Jinping about economic consequences of China’s alliance with Russia. Thing is, that ship has long sailed. And Xi, even if he would have wanted to -there are no signs of that-, cannot turn it around, It has gained “momentum”.

    And it’s “Joe Biden”s own doing. Xi and Putin would have happily continued using the USD in their international trade. But the sanctions made that impossible. And then it took off. From BRICS(+) to SCO to INSTC, various groups that had been formed, now found a reason to exist and flourish. And there’s nothing Xi can do to stop that process, even if he would want to. it’s bigger than him, and China. But even then, why would he?

    Biden Told China’s Xi To ‘Be Careful’ After Putin Meeting

    US President Joe Biden called on his Chinese counterpart Xi Jinping ‘to be careful’ after Xi visited Moscow back in March, the American leader has told CNN. In extracts from the interview released on Saturday, Biden said he had highlighted what he called the Asian giant’s dependence on European and US investments.“I said: This is not a threat. This is an observation,” Biden told CNN. “Since Russia went into Ukraine, 600 American corporations have pulled out of Russia. And you have told me that your economy depends on investment from Europe and the United States. And be careful. Be careful,” he added.

    Following their Moscow talks, Putin and Xi signed documents on deepening the Russian-Chinese strategic partnership and economic cooperation. Both governments emphasized their readiness to work towards a trade volume of $200 billion or higher, with national currencies increasingly being used in a bid to de-dollarize trade. The conflict in Ukraine was discussed during the Moscow visit as well, with China maintaining its neutral position. Beijing has repeatedly criticized the West’s “abuse” of unilateral economic sanctions and has made efforts toward a peaceful resolution in Ukraine, proposing a twelve-point peace plan. In May, a Chinese special envoy visited several countries, including Russia and Ukraine, in an effort to broker an end to the conflict.

    Biden’s CNN interview comes as US relations with China are far from calm, with Taiwan and security concerns in the Asia-Pacific region among the key issues exacerbating strained ties. President Biden himself provoked a diplomatic incident in June, when he called his Chinese counterpart a “dictator” during a speech. While the US president dismissed concerns that his comment could hinder efforts to improve relations, the Chinese embassy issued a formal protest in response, and foreign ministry spokeswoman Mao Ning denounced the remark as an “open political provocation.”

    It makes no difference anymore what Biden, or any American/western person says. The sanctions have introduced the rest of the world to a feeling, a system, of freedom. And not even Xi can halt that. He could hinder it a bit, sure, but why would he? If the “global globe” can’t use the yuan in trade, they’ll switch to the rupee, which India has loudly announced as being ready for the role. Or the new gold backed currency BRICS/SCO is touting.

    Whichever choice they arrive upon, Biden threatening Xi can only backfire. China already has a huge part of the world population, BRICS/SCO is much bigger than that, in many ways. And they sense/smell freedom. Xi would be crazy to move against that. And why would he? Because Biden threatens to take away some exports from him?

    Xi doesn’t need the US or EU. He knows that because the “collective west’s” anti-Russia sanctions have only made Russia stronger. And the “collective west” is incapable of beating Russia on the battlefield. So what does Xi have to fear?

    We live in a new world, a greatly changed one.

    The last place where you would find out about that is the west, where we live. Where all media and politicians carry on as if nothing has changed. We can’t know the truth about Trump, or about Covid, or about Ukraine, and now we can’t know how our position has changed in global power politics. They want us to believe we’re still no. 1. Well, they are not, and we are not. Get used to it. Get used to being one power in a world with multiple powers. Multipolar.

    We cannot fight the global momentum we ourselves unleashed.

    *  *  *

    Support the Automatic Earth via Patreon.

    Tyler Durden
    Sun, 07/09/2023 – 16:30

  • Cash-Strapped Consumers Resort To 'Dumpster Dining' To Save On Grocery Bill
    Cash-Strapped Consumers Resort To ‘Dumpster Dining’ To Save On Grocery Bill

    Despite the Biden administration’s cheerleading that ‘Bidenomics’ is the economic savior of the middle class — most Americans will disagree there has been an economic revival amid the worst inflation storm in a generation that has sent negative real wage growth negative for more than two years, forcing consumers to deplete personal savings and rack up record amounts of credit card debt in a high-interest rate environment. 

    We have shown many households are in rough financial shape. Dollar Tree executives confirmed weeks ago that mid/low-tier consumers are trading down from other more expensive retailers to their stores for groceries. This means Walmart has become too expensive for some consumers. 

    Even before we noted “Consumers Trade Down From Walmart, Dollar Tree Becomes Supermarket For The Working Poor,” we found a trend on TikTok that showed an increasing number of Americans in March were resorting to dollar stores for groceries to save money. We tilted that note “Dollar Tree Dinners”: TikToker Goes Viral After Showing People How To Cook For $35 A Week.

    Last week, we were the first to point out that Google searches for “pawn shop near me” just erupted to record highs, indicating that consumers are in rough shape. 

    It’s not just us pointing out that Bidenomics might be a failure. Goldman Sachs’ Rich Privorosky told clients last month, “Something is not quite adding up on the consumer,” and asked, “Have we just run out of excess savings and are we returning to replenishing savings?”

    Meanwhile, an increasing number of corporate execs from consumer staple companies have warned about a weakening consumer, leaving us with the evolution of trading down from dollar store dinners to dumpster diving. 

    Some media outlets, including Bussiness Insider and The New York Post, have pointed out that some folks have resorted to dumpster diving to save on food costs. 

    BI titled their piece “A dumpster-diving millennial cut her grocery bill to about $45 a month on average for the last 4 months,” while NYPost titled theirs, “I spend just $90 a year on groceries — here’s how I do it,” which shows how some millennials are dumpster diving for survival in today’s high inflation period. 

    While we thought trading down from Walmart to Dollar Tree for groceries was rock bottom, apparently not. 

    And look at this stunning Google search trend “Is dumpster diving illegal” just hit a record high. 

    The search trend is the hottest in the Midwest and Deep South. 

    Putting this all together, mid/low-tier consumers struggle in the inflation storm while the Biden administration touts meaningless economic stats about how ‘everything is wonderful.’ After all, Democrats have to cheerlead despite the demise of the middle class because a presidential election cycle is nearing. 

    Tyler Durden
    Sun, 07/09/2023 – 16:00

  • "More To Come": Abbott Announces Installation Of Floating Border Barrier Along Rio Grande
    “More To Come”: Abbott Announces Installation Of Floating Border Barrier Along Rio Grande

    Authored by Aldgra Fredly via The Epoch Times,

    Texas has started installing a water-based border barrier along the Rio Grande, Texas Gov. Gregg Abbott said on Saturday, as part of efforts to hinder illegal immigrants from crossing the southern border.

    “New marine barrier installation on the Rio Grande begins today,” Mr. Abbott stated on Twitter, along with a 15-second video showing dozens of large spherical buoys being loaded into tractor-trailers.

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    The Texas Department of Public Safety (DPS) will oversee the deployment of a 1,000-foot floating barrier in Eagle Pass, which is known as a major point for migrant crossings.

    “More to come,” the governor remarked, suggesting that this might only be the first deployment.

    Mr. Abbott unveiled the plan last month to use floating barriers to deter illegal entry into the country. He described it as a man-made wall floating in the water, which would cost the state about $1 million.

    Texas Gov. Greg Abbott speaks about an illustration of new border security implementation during a news conference at the Texas State Capitol in Austin, Texas, on June 8, 2023. (Brandon Bell/Getty Images)

    DPS chief Steve McCraw, who called Mexican cartels as the “number one public enemy,” said the barrier will dissuade people from making dangerous river crossing at the ports.

    “It’s dangerous to cross between ports of entry, and securing the border between them is ideal to fight Mexican cartels,” Mr. McCraw said in a statement on June 8.

    Concerns Over Impacts of Floating Barrier

    Meanwhile, the federal International Boundary and Water Commission (IBWC) said they were not notified about the proposed floating barrier. The IBWC is an international body that oversees the boundary and water treaties between the United States and Mexico.

    IBWC spokesperson Frank Fisher said the commission seeks to determine “whether and how this impacts our mission to carry out treaties between the U.S. and Mexico regarding border delineation, flood control, and water distribution, which includes the Rio Grande.”

    Adriana Martinez, a professor at Southern Illinois University, expressed concerns about the potential effects of the webbing attached to the barrier, which could cause things floating down the river to become entangled in these buoys.

    “A lot of things float down the river, even when it’s not flooding; things that you can’t see like large branches, large rocks,” she told the Associated Press.

    “And so anything like that could get caught up in these buoys and change the way that water is flowing around them.”

    The Center for Immigration Studies said that the water barrier comes with some political risk, as it will likely draw criticism from hostile media should anyone die attempting to overcome the barrier.

    State officials have reportedly said the barrier is designed as a deterrence for the masses, not necessarily the few who might try to get past it, the organization reported.

    “When we’re dealing with 100 or 1,000 people, one of the goals is to slow down and deter as many of them as possible,” Abbott told reporters last month.

    In addition to the barriers, Abbott signed six bills related to border security. These measures include designating Mexican cartels as terrorist organizations, allocating funding for law enforcement training, expanding the use of National Guard surveillance drones, and granting increased powers to Border Patrol agents under Texas law.

    Earlier iterations of Abbott’s border mission have included installing miles of razor wire at popular crossing points on the river and creating state checkpoints beyond federal stops to inspect incoming commercial traffic.

    However, the state has not disclosed any specific tests or studies conducted to assess the potential risks for individuals attempting to circumvent the barrier or the environmental impacts associated with its implementation.

    Tyler Durden
    Sun, 07/09/2023 – 15:30

  • China Fires "First Warning Shot" With Metal Export Controls As Traders Scramble For Gallium
    China Fires “First Warning Shot” With Metal Export Controls As Traders Scramble For Gallium

    Beijing is furious with the Biden administration mulling over a broader semiconductor chip export ban and, in response, decided last week to announce export restrictions on two metals, gallium and germanium, which are heavily imported by Western countries for semiconductor production. 

    The timing of the announcement is one to ponder about. It came days before US Treasury Secretary Janet Yellen’s China visit on Thursday. It appears Chinese officials are playing a complex game of chess with the Biden administration as their dominance over rare earth mining and refining, and the lack of that in the West would open up talks with Yellen about future US bans on chips and semiconductor equipment that are critical for China’s economic growth. 

    “China apparently does not like the news that the Biden administration is considering a wider semiconductor chip ban and decided to ban the export of gallium and germanium, which are used in semiconductors, 5G base stations, and solar panels,” Louis Navellier, founder of Navellier & Associates, wrote in a recent note to clients. 

    “Although the US and its allies depend on China for these critical minerals, China needs Western technology such as lithography machines to produce high-performance chips,” Navellier said.

    On Friday, The Wall Street Journal reported that Yellen met with Premier Li Qiang and discussed economic competition that would benefit both countries. 

    Global gallium prices soared 27% on the news last week. Traders who spoke with Bloomberg said the gallium market is well-supplied, but export controls beginning next month have sent buyers scrambling to purchase the metal. 

    On Friday, Fastmarkets data showed Gallium prices jumped $43 on the week to $326 a kilogram. 

    Starting Aug. 1, exporters must apply for licenses with the commerce ministry to ship the metals abroad. And how the export controls will affect Chinese shipments still needs to be determined. 

    Colin Hamilton, managing director for commodities research at BMO Capital Markets, said the restrictions would likely spur efforts by Western countries to seek supplies of both metals elsewhere.  

    “This is a further example of how industrial raw materials are becoming increasingly strategic in global markets and brought to the center of policy action,” Hamilton wrote in a note early last week. 

    Data from the US Geological Survey shows the US imported an estimated 14,000 kilograms of germanium in 2022 while consuming an estimated 30,000 kilograms. In the same year, imports of gallium were 14,000 kilograms, while consumption was around 18,000 kilograms.

    In the meantime, the US will stockpile these metals as it will diversify sourcing away from Asia. There is a movement by the Biden administration to increase domestic mining and refining of rare earth metals. 

    The move by China is “far from being the nuclear option that it could have chosen,” but it’s the “first warning shot,” Bernard Dahdah, an analyst at Natixis, wrote in a note. He pointed out, “China does control other metals through which it can inflict more severe consequences.”

    Meanwhile, the US US Defense Department announced on Friday it is invoking the Defense Production Act to boost the domestic mining and processing capacity of the two metals. 

    Tyler Durden
    Sun, 07/09/2023 – 15:00

  • Republican Attorneys General Warn Target Over 'Obscene' Pride And Satanic Merchandise
    Republican Attorneys General Warn Target Over ‘Obscene’ Pride And Satanic Merchandise

    Authored by Catherine Yang via The Epoch Times (emphasis ours),

    Indiana Attorney General Todd Rokita sent a letter to Target on Wednesday warning the corporation that its recent “Pride” campaign merchandise and donation efforts ran the risk of violating state child-protection laws. It also cited concerns about parental rights and neglect of fiduciary duties.

    “State child-protection laws penalize the ‘sale or distribution … of obscene matter,’” the letter states (pdf), which includes items with sexual themes and material harmful to minors.

    “Indiana, as well as other states, have passed laws to protect children from harmful content meant to sexualize them and prohibit gender transitions of children.”

    People walk past a Target store in New York City on June 6, 2023. (Samira Bouaou/The Epoch Times)

    The Epoch Times has not received a response from Target.

    Attorneys general from six other states also signed on: Tim Griffin, Arkansas; Daniel Cameron, Kentucky; Andrew Bailey, Missouri; Raul Labrador, Idaho; Lynn Fitch, Mississippi; and Alan Wilson, South Carolina.

    These are states that have this year passed laws, some now in the courts, that prohibit cross-sex hormone and surgery procedures for minors, and the chief legal officers are now sending a signal to corporations that do business in their states to take notice.

    The letter does not cite legal action.

    Contentious Merchandise

    The letter drew attention to some of the products Target stocked in its “Pride” month campaign: LGBT-themed infant clothing, items specifically sourced from a Satanic brand, and the “tuck friendly” swimsuits that sparked media coverage and backlash.

    The attorneys also stated Target’s support for Gay, Lesbian and Straight Education Network (GLSEN), which trains members to create LGBT-related associations in K-12 schools, runs the risk of violating parental-rights laws in these states. GLSEN training materials encourage members to make gender identity decisions with students without the knowledge of parents.

    “The evidence suggests that Target’s directors and officers may be negligent in undertaking the ‘Pride’ campaign, which negatively affected Target’s stock price. Moreover, it may have improperly directed company resources for collateral political or social goals unrelated to the company’s and its shareholders’ best interests,” the letter states.

    Target’s stock tumbled 17 percent in the week following backlash in the wake of its Pride campaign, leading to a three-year low and losses that exceeded $13 billion. Citi and JP Morgan Chase both downgraded Target’s shares.

    “Target’s ‘Pride’ campaign was decidedly not an example of excellence in retail,” the letter continued. “It is likely more profitable to sell the type of Pride that enshrines the love of the United States. Target’s Pride Campaign alienates whereas Pride in our country unites.”

    Target Flip-Flops Under Activist Pressure

    Target issued a statement after the backlash, highlighting the fact that it has stocked products “celebrating Pride” for more than 10 years. It cited the reason for removing some items as “threats impacting our team members’ sense of safety and well-being while at work.” The company reiterated its “commitment to the LGBTQIA+ community” moving forward.

    In response, seven activist groups called on Target to return any removed items to its stores and online, and release a statement to “in the next 24 hours reaffirming their commitment to the LGBTQ+ community.”

    Read more here…

    Tyler Durden
    Sun, 07/09/2023 – 14:30

  • Biden: "The Ukrainians Are Running Out Of Ammunition"
    Biden: “The Ukrainians Are Running Out Of Ammunition”

    Below is a significant admission by the President of the United States, which was said in passing to a reporter after he was grilled over the controversial White House decision to send internationally-banned cluster bombs to Ukraine.

    Biden had also told CNN’s Fareed Zakaria on Friday that the transfer is necessary because Kyiv is “running out of ammunition” after 500 days of war, a grim milestone reached Saturday.

    “It was a very difficult decision on my part. And by the way, I discussed this with our allies, I discussed this with our friends up on the Hill,” he explained. He then added: “The Ukrainians are running out of ammunition.” Watch Biden again make the admission below:

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    A prominent geopolitical observer has noted the following, however…

    “For those saying this means the US military are depleted of our stockpiles, this is not true. We have been giving Ukraine all our old shit and stockpiles from the late 80’s and 90’s.”

    The war analyst continued: “Now we are giving them old cluster munitions, with high dud-rates. We have been giving them the shit we don’t want. They’ve been fighting Russia without air support and with old and faulty equipment. No wonder they are losing.”

    Indeed news of Ukraine’s big counteroffensive, which kicked off after much anticipation last month, has largely retreated from the headlines as more and more negative developments for the Ukrainian effort has become evident.

    Even Zelensky recently admitted a much “slower than expected” offensive, and things along the frontlines have largely remained stalemated, with the recent Wagner mutiny events inside Russia also not making any kind of positive difference in terms of Ukrainian positions on the battlefield. Ukraine is putting its hopes on eventually receiving F-16s from the West, but by the time this actually happens, and the long and difficult task of training Ukrainian pilots is complete, the battlefield momentum is unlikely to be in their favor.

    Tyler Durden
    Sun, 07/09/2023 – 14:00

  • What Is 'Prompt Engineering', And How Does It Work?
    What Is ‘Prompt Engineering’, And How Does It Work?

    Authored by Alice Ivey via CoinTelegraph.com,

    Explore the concept of prompt engineering, its significance, and how it works in fine-tuning language models…

    Prompt engineering has become a powerful method for optimizing language models in natural language processing (NLP). It entails creating efficient prompts, often referred to as instructions or questions, to direct the behavior and output of AI models.

    Due to prompt engineering’s capacity to enhance the functionality and management of language models, it has attracted a lot of attention. This article will delve into the concept of prompt engineering, its significance and how it works.

    Understanding prompt engineering

    Prompt engineering involves creating precise and informative questions or instructions that allow users to acquire desired outputs from AI models.

    These prompts serve as precise inputs that direct language modeling behavior and text generation.

    Users can modify and control the output of AI models by carefully structuring prompts, which increases their usefulness and dependability.

    History of prompt engineering

    In response to the complexity and expanding capabilities of language models, prompt engineering has changed over time. Although quick engineering may not have a long history, its foundations can be seen in early NLP research and the creation of AI language models. Here’s a brief overview of the history of prompt engineering:

    Pre-transformer era (Before 2017)

    Prompt engineering was less common before the development of transformer-based models like OpenAI’s  generative pre-trained transformer (GPT). Contextual knowledge and adaptability are lacking in earlier language models like recurrent neural networks (RNNs) and convolutional neural networks (CNNs), which restricts the potential for prompt engineering.

    Pre-training and the emergence of transformers (2017)

    The introduction of transformers, specifically with the “Attention Is All You Need” paper by Vaswani et al. in 2017, revolutionized the field of NLP. Transformers made it possible to pre-train language models on a broad scale and teach them how to represent words and sentences in context. However, throughout this time, prompt engineering was still a relatively unexplored technique.

    Fine-tuning and the rise of GPT (2018)

    A major turning point for rapid engineering occurred with the introduction of OpenAI’s GPT models. GPT models demonstrated the effectiveness of pre-training and fine-tuning on particular downstream tasks. For a variety of purposes, researchers and practitioners have started using quick engineering techniques to direct the behavior and output of GPT models.

    Advancements in prompt engineering techniques (2018–present)

    As the understanding of prompt engineering grew, researchers began experimenting with different approaches and strategies. This included designing context-rich prompts, using rule-based templates, incorporating system or user instructions, and exploring techniques like prefix tuning. The goal was to enhance control, mitigate biases and improve the overall performance of language models.

    Community contributions and exploration (2018–present)

    As prompt engineering gained popularity among NLP experts, academics and programmers started to exchange ideas, lessons learned and best practices. Online discussion boards, academic publications, and open-source libraries significantly contributed to developing prompt engineering methods.

    Ongoing research and future directions (present and beyond)

    Prompt engineering continues to be an active area of research and development. Researchers are exploring ways to make prompt engineering more effective, interpretable and user-friendly. Techniques like rule-based rewards, reward models and human-in-the-loop approaches are being investigated to refine prompt engineering strategies.

    Significance of prompt engineering

    Prompt engineering is essential for improving the usability and interpretability of AI systems. It has a number of benefits, including:

    Improved control

    Users can direct the language model to generate desired responses by giving clear instructions through prompts. This degree of oversight can aid in ensuring that AI models provide results that comply with predetermined standards or requirements.

    Reducing bias in AI systems

    Prompt engineering can be used as a tool to reduce bias in AI systems. Biases in generated text can be found and reduced by carefully designing the prompts, leading to more just and equal results.

    Modifying model behavior

    Language models can be modified to display desired behaviors using prompt engineering. As a result, AI systems can become experts in particular tasks or domains, which enhances their accuracy and dependability in particular use cases.

    How prompt engineering Works

    Prompt engineering uses a methodical process to create powerful prompts. Here are some crucial actions:

    Specify the task

    Establish the precise aim or objective you want the language model to achieve. Any NLP task, including text completion, translation and summarization, may be involved.

    Identify the inputs and outputs

    Clearly define the inputs required by the language model and the desired outputs you expect from the system.

    Create informative prompts

    Create prompts that clearly communicate the expected behavior to the model. These questions should be clear, brief and appropriate for the given purpose. Finding the best prompts may require trial and error and revision.

    Iterate and evaluate

    Put the created prompts to the test by feeding them into the language model and evaluating the results. Review the outcomes, look for flaws and tweak the instructions to boost performance.

    Calibration and fine-tuning

    Take into account the evaluation’s findings when calibrating and fine-tuning the prompts. This procedure entails making minor adjustments to obtain the required model behavior, ensuring that it aligns with the intended job and requirements.

    Tyler Durden
    Sun, 07/09/2023 – 13:30

  • Russia Has 'Harassed' US Drones In Syria For 3 Straight Days: Pentagon
    Russia Has ‘Harassed’ US Drones In Syria For 3 Straight Days: Pentagon

    The Pentagon has again complained that Russian fighter jets have dangerously interfered with US drone operations over Syria, in what marks the third such incident in as many days.

    “Three MQ-9 Reaper drones the U.S. military said had been ‘harassed’ by Russian fighter jets over Syria on Friday were the same drones that later carried out an airstrike that killed a top Islamic State group leader,” US Central Command said Sunday.

    The incident reportedly happened Friday, the same day that CENTCOM says it killed ISIS leader Usama-al-Muhajir.

    The Pentagon had in the two days prior, on Wednesday and Friday, also alleged Russian jets ‘harassed’ US drones which were actively engaged in counter-ISIS operations. 

    “The strike on Friday was conducted by the same MQ-9s that had, earlier in the day, been harassed by Russian aircraft in an encounter that had lasted almost two hours,” the Sunday CENTCOM statement said.

    The US has once again blasted the “unsafe and unprofessional” behavior of the Russian pilots. ABC News noted the following after the latest incident: 

    There was a third straight day of interactions between Russian fighters and U.S. drones on Friday when U.S. Air Forces Central said “Russian aircraft flew 18 unprofessional close passes that caused the MQ-9s to react to avoid unsafe situations.”

    The Pentagon has at this point declassified two videos which it says supports its assessment of Russian aerial aggression aimed at disrupting American drone flights over Syria. 

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    These ‘harassment’ episodes over Syria appear very similar to the March 14, 2023 event which resulted in an American MQ-9 Reaper drone crashing into the Black Sea. A Russian Su-27 fighter jet had intercepted and damaged the drone, at one point dumping fuel on it in mid-air flight.

    In Syria, the US administration has justified any and all US military actions as based on “countering ISIS” – even though the Islamic State has long been driven underground and was defeated. Russia and Syria have charged that the US really just wants to steal Syria’s oil and gas resources, as part of the continued economic war against Damascus. The Pentagon has also lately been reemphasizing this counter-ISIS mission: “We urge Russian forces in Syria to cease this reckless behavior and adhere to the standards of behavior expected of a professional air force so we can resume our focus on the enduring defeat of ISIS,” it said.

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    But Damascus, Moscow, and Tehran have pointed out that ISIS grew out of the NATO-Gulf regime change efforts to oust Assad, which started in 2011 and 2012, destroying much of Syria and resulting in mass killings.

    Tyler Durden
    Sun, 07/09/2023 – 13:00

  • "Unstoppable Duo?" Prospect Of An Unlikely Trump-RFK Ticket Remains A Hot Topic
    “Unstoppable Duo?” Prospect Of An Unlikely Trump-RFK Ticket Remains A Hot Topic

    Authored by Alice Giordano via The Epoch Times (emphasis ours),

    As Robert F. Kennedy Jr. draws unusual bipartisan support in the race for the White House, there is a swell of sentiment that he should be former President Donald Trump’s running mate.

    Mary Kreider of Plymouth, Mass., attends the grand opening of Trump’s campaign headquarters in New Hampshire on June 27, 2023. (Alice Giordano/The Epoch Times)

    “They would be an unstoppable duo,” Carla Gericke, both a Republican and Libertarian out of New Hampshire, told The Epoch Times, “I think it’s literally the ticket to reunite this fractured country of ours.” 

    Texas realtor Trisha Psencik Hope told The Epoch Times that while she is “Trump all the way” regardless of who his running mate will be, her top pick is RFK Jr., mostly because of the strong stance he took against COVID vaccine mandates. 

    Mrs. Psenick Hope, of Houston, said she wished Trump had taken a strong position against mandating the experimental jab and believes other GOPers feel the same way. 

    “I think bringing RFK to the ticket will soothe some of the lingering feelings about that and any future concerns about the government doing something like that again,” she said. 

    On July 6, Mr. Kennedy told NewsMax he wouldn’t consider being a running mate for either Trump or [Joe] Biden, but the prospect of a Kennedy/Trump ticket remains a hot topic on social media and also among high-profile politicians and could reveal how America will vote next November.

    Former Trump adviser Steve Bannon suggested a Trump/Kennedy ticket back in April. 

    Early in July, on the Christian Broadcasting Network (CBN), former Arizona gubernatorial candidate Kari Lake, who considered herself a vice-presidential prospect for Trump, was asked about what she thought of the idea.

    While she didn’t directly answer the question, Mrs. Lake called Mr. Kennedy a good man who has done amazing and criticized people who have been referring to Mr. Kennedy as a “MAGA Democrat.”

    “They just don’t want outsiders in the political machine, they don’t want outsiders coming into the swamp draining the swamp,” said Mrs. Lake, “They just want just the pre-approved, controllably, easily blackmailed and easily bribed people like Biden and the whole swamp system down there.”

    Mr. Bannon said Mrs. Lake is his favored choice for Trump’s vice president, but said on his War Room show that if she wasn’t available “Kennedy would be an excellent choice.”

    Others like Connecticut resident Libby DePiero, who has attended 41 Trump rallies since his first run for president in 2016, told The Epoch Times it would be a “dream come true” if Kennedy and Trump ran together. 

    “Between Kennedy’s fight for medical freedom against the COVID tyrannists [sic], and Trump’s proven record to make Americans first in their own country, it would be an even better presidency than Trump’s first time in office,” she said. 

    Several who like the idea have run polls on social media posing the question.

    According to a Twitter poll of 1,629 users, 73.8 percent said they would support a Trump/Kennedy Ticket. The poll was based on 1,629 voters.

    Participants like New York Times bestselling author and founder of ACT for America Brigitte Gabriel said a “Trump-Kennedy 2024 unity ticket would end Biden’s chances of re-election!”

    Ms. Gericke said that while Kennedy does come from a political dynasty, she sees him as an outsider like Trump who knows that this world is such dire straits that the presidency is beyond party loyalty.

    Mrs. Psenick Hope said while she and her husband were vacationing in Colorado, they broached the idea of a Kennedy/Trump ticket with locals in the left-leaning state. 

    “They said they would support Trump if Kennedy was on the ticket with him, she said, “just like Republicans say they would support Kennedy if he was on the ticket with Trump.”

    Mrs. Lake told CBN anchor Gary Lane that the swell of support for a Kennedy/Trump ticket shows “we are almost beyond Democrat versus Republican. We are now Communism and Globalism versus Americanism,” she said. 

    Tyler Durden
    Sun, 07/09/2023 – 12:30

  • These Are The Most Profitable US Companies, By Sector
    These Are The Most Profitable US Companies, By Sector

    U.S. corporate profits hit record levels in 2022, even as stocks fell into a bear market and inflation reached 40-year highs.

    Given these headwinds, investors are watching corporate fundamentals very closely. Corporate profit margins provide a buffer against higher borrowing costs and price pressures and for many reasons, they are a key measure of financial health.

    In the following infographic, Visual Capitalist’s Dorothy Neufeld shows America’s most profitable companies by sector, using data from Fortune.

    America’s Most Profitable Companies

    Here are the U.S. firms with the highest annual profits in their sector. Data is based on the fiscal year ending on or before January 31, 2023 across companies in the Fortune 500.

    Both public and private companies that are incorporated and operate in the U.S. are included.

    Company Sector 2022 Annual Profit Annual % Change
    Apple Technology $99.8B 5.4%
    Exxon Mobil Energy $55.7B 141.9%
    JPMorgan Chase Financials $37.7B -22.1%
    Pfizer Health Care $31.3B 42.7%
    Verizon Communications Telecommunications $21.3B -3.7%
    Home Depot Retailing $17.1B 4.1%
    Visa Business Services $15.0B 21.5%
    Procter & Gamble Household Products $14.7B 3.0%
    Tesla Motor Vehicles & Parts $12.6B 127.5%
    UPS Transportation $11.5B -10.4%
    Coca-Cola Food, Beverages & Tobacco $9.5B -2.3%
    Nucor Materials $7.6B 11.4%
    Deere Industrials $7.1B 19.6%
    McDonald’s Hotels, Restaurants & Leisure $6.2B -18.1%
    Nike Apparel $6.0B 5.6%
    DuPont Chemicals $5.9B -9.3%
    D.R. Horton Engineering & Construction $5.9B 40.3%
    Lockheed Martin Aerospace & Defense $5.7B -9.2%
    Netflix Media $4.5B -12.2%
    Walgreens Boots Alliance Food & Drug Stores $4.3B 70.6%
    W.W. Grainger Wholesalers $1.5B 48.3%

    Apple is the most profitable company in America. Reaching almost $100 billion in profits in 2022, it outpaces the profit leaders in both the energy and financials sectors combined. Furthermore, at the end of 2022, its net profit margin stood at nearly 25%.

    Amid a maturing smartphone market, the company is focusing more on service-based revenue. iPhones make up roughly half of its total net sales, yet growth is plateauing. Last year, iPhone sales growth was 7%, compared to 39% the year before. Meanwhile, services sales—including cloud, AppleCare, and advertising—increased 14% annually.

    Within the energy sector, Exxon Mobil took the top spot with record profits of over $55 billion. Profits jumped almost 142% last year as oil prices spiked with Russia’s invasion of Ukraine. Steep cuts in costs through the pandemic also helped to bolster the company’s returns.

    JPMorgan Chase saw the highest profits in the financial sector. As the nation’s largest bank by assets, it saw a sharp decline in its investment banking division as higher interest rates made financing mergers and acquisitions less lucrative. Overall, profits sank more than 22% annually.

    Corporate Profits in Perspective

    Low taxes and interest rates contributed to about one-third of profit growth across nonfinancial companies in the S&P 500 over the last 20 years, a paper from the Federal Reserve shows.

    Now, as interest rates climb higher, steeper costs could cut into bottom lines. The good news is so far, corporations have shown resilience to a shifting interest rate regime.

    In the first quarter of 2023, U.S. corporate profits fell moderately by just over 5%.

    Profitability and Competitive Advantage

    What does this mean for investors?

    For investors looking for companies that can weather higher rates, profitability is one factor to consider. Companies with strong profitability can reinvest in their business, pay dividends, and better withstand road bumps from rising costs.

    Going further, companies with high profitability often have a strong market share thanks to economies of scale lowering costs, brand loyalty driving demand, and economic moats. We can see this with Apple and Visa, for example.

    Over time, this builds a sustainable competitive advantage. As companies preserve profitability, it adds value to shareholders, often supporting share prices over the longer-term.

    Tyler Durden
    Sun, 07/09/2023 – 12:00

  • Russia Says Cruise Missile Launched On Crimea As War Reaches 500 Days
    Russia Says Cruise Missile Launched On Crimea As War Reaches 500 Days

    In another significant escalation, Russia says it shot down a cruise missile launched by Ukraine over Crimea, according to Crimean Governor Sergei Aksyonov.

    “The incident inflicted no damage or casualties, he added, without specifying where the missile had been launched from,” according to international reports. The intercept reportedly happened near the city of Kerch on the Crimean peninsula.

    Cruise missile, file image

    Drones inside Russia’s territory or over Russian-controlled Crimea have been a regular feature of this war, but cruise missiles or other long-range heavy missiles much less so. 

    Regional reports say the attack temporarily halted traffic over the immense Crimean Bridge:

    Krym Realii media outlet reported that several explosions were heard in occupied Crimea at around 12 p.m. on July 9.

    Following Aksyonov’s claim, local Telegram channels also reported that the traffic was temporarily stopped at the Crimean Bridge that connects the Russian-occupied peninsula and mainland Russia over the Kerch Strait. There have been no further details.

    Elsewhere, the Rostov regional government reported that a Ukrainian missile was intercepted over its territory in the south of Russia. “There were no casualties. The debris partially damaged the roofs of several buildings,” Governor Vasily Golubev wrote. 

    As these kinds of attacks have increased and become more frequent over the last several months, Kremlin accusations of the US directly assisting in cross-border attacks have increased. Russia has warned in response it could begin taking out “decision-making centers” in Ukraine in response, and in some cases it has acted on these warnings.

    Various governments and institutions around the world observed the grim milestone of the 500th day of the war on Saturday, with Western governments condemning Moscow and calling on it to halt its operations…

    https://platform.twitter.com/widgets.js

    This weekend marked the 500th day since the Russian military invasion on Feb. 24, 2022. Ukraine’s much-touted counteroffensive, launched last month, has largely retreated from the headlines, strongly suggesting its failure. 

    Tyler Durden
    Sun, 07/09/2023 – 11:00

  • Snyder: Joe Biden And His Warmongering Minions Seem Absolutely Determined To Drag America Into World War III
    Snyder: Joe Biden And His Warmongering Minions Seem Absolutely Determined To Drag America Into World War III

    Authored by Michael Snyder via The Economic Collapse blog,

    When the nukes start falling, nobody will be able to say that they weren’t warned. 

    Thanks to Joe Biden and his warmongering minions, we are steamrolling toward World War III, but most Americans don’t seem to care.  Most of us just continue to party our lives away, but meanwhile our leaders seem absolutely determined to drag us into an apocalyptic conflict.  The Biden administration is constantly provoking China and constantly escalating the war in Ukraine, and one of these days they could cross a line that will never be able to be uncrossed.  They are literally playing with fire, but they won’t be the only ones that get burned if they push things too far.

    This week, we learned that the Biden administration has decided to give cluster munitions to Ukraine as part of a new $800 million military assistance package.

    If you don’t know what cluster munitions are, here is a pretty good explanation from NBC News…

    The dual-purpose improved conventional munitions, or DPICMs, are surface-to-surface warheads that explode and disperse multiple small munitions or bombs over wide areas — bringing more widespread destruction than single rounds. The rounds can be charges that penetrate armored vehicles, or they can shatter or fragment to be more dangerous for people.

    Some human rights groups oppose their use because of concerns that unexploded bomblets, or duds, could explode after battle, potentially injuring or killing innocent civilians.

    These weapons are considered to be extremely dangerous to civilians, because many of them fail to go off initially and end up getting detonated by civilian activity much later…

    As the bomblets fall over a wide area, they can endanger non-combatants.

    In addition, somewhere between 10% to 40% of the munitions fail, according to the International Committee of the Red Cross. The unexploded munitions can then be detonated by civilian activity years or even decades later.

    The Cluster Munition Coalition, an activist group trying to get the weapons banned everywhere, says potentially deadly cluster submunitions still lie dormant in Laos and Vietnam 50 years after their use.

    As you can see, there is a reason why so many countries have banned the use of such weapons.

    In fact, at this point more than 120 nations have agreed to ban them…

    A convention banning the use of cluster bombs has been joined by more than 120 countries who agreed not to use, produce, transfer or stockpile the weapons and to clear them after they’ve been used.

    The United States, Russia and Ukraine are among the countries that have not signed on.

    But even though there is such an international consensus, the Biden administration is sending them to Ukraine anyway…

    But White House national security adviser Jake Sullivan said the munitions were critical for Ukraine to sustain its military operations against the Russian invaders.

    “We will not leave Ukraine defenseless at any point in this conflict, period,” he said.

    Why aren’t more people talking about Jake Sullivan?

    He is a warmongering nutjob, and Joe Biden does pretty much whatever Jake Sullivan tells him to do.

    And so when Jake Sullivan suggests provoking China again, Joe Biden goes along with it.

    Zero Hedge is reporting that the U.S. will now start providing Volcano Vehicle-Launched Scatterable Mine Systems to Taiwan…

    Taiwan has finalized a new defense deal with the US worth $146 million to acquire Volcano Vehicle-Launched Scatterable Mine Systems, seen as crucial for defense of the self-ruled island in the event of a Chinese military invasion. This comes the same week the State Department announced approval for $440 million more in ammo and logistics deals for Taiwan.

    The pending Volcano mine-laying systems deal had first been previewed by the US Defense Security Cooperation Agency in December 2022. It additionally included M977A4 trucks, M87A1 anti-tank mines, as well as M88 and M89 training munitions.

    Needless to say, this is yet another move that has greatly angered the Chinese.

    And our trade war with China just went to another level.

    In response to new restrictions imposed by the U.S., China has just implemented export controls on two absolutely critical raw materials…

    A trade war between China and the United States over the future of semiconductors is escalating.

    Beijing hit back Monday by playing a trump card: It imposed export controls on two strategic raw materials, gallium and germanium, that are critical to the global chipmaking industry.

    “We see this as China’s second, and much bigger, counter measure to the tech war, and likely a response to the potential US tightening of [its] AI chip ban,” said Jefferies analysts. Sanctioning one of America’s biggest memory chipmakers, Micron Technology (MU), in May was the first, they said.

    Ever since Joe Biden entered the White House, our relations with China have gone into the dumpster.

    And I think that there is a chance that the Chinese could actually choose to invade Taiwan before Joe Biden’s time in the White House is over.

    If that happens, it would be a complete and utter catastrophe for the global economy…

    A military conflict over Taiwan would set the global economy back decades because of the crippling disruption to the supply chain of crucial semiconductors, according to the head of one of the island’s leading makers of microchips.

    Taiwan, a self-ruling democracy about 100 miles off China, makes the world’s most advanced microchips — the brains inside every piece of technology from smartphones and modern cars to artificial intelligence and fighter jets.

    We simply cannot afford for such a war to happen, because we must have access to those chips.

    Without the chips that Taiwan produces, we would be in a world of hurt…

    The island is a microchip fabrication hotbed, producing 60% of the world’s semiconductors — and around 93% of the most advanced ones, according to a 2021 report from the Boston Consulting Group. The U.S., South Korea and China also produce semiconductors, but Taiwan dominates the market, which was worth almost $600 billion last year.

    So why don’t we just start building more chips in the United States?

    Well, a 40 billion dollar factory is going to be constructed in Arizona, but it is many years away from completion…

    The U.S., which produces about 10% of the world’s semiconductor chips and none of the most advanced ones, is also trying to boost domestic manufacturing, offering tax incentives for projects like the $40 billion factory being built in Arizona by the Taiwanese chip giant TSMC.

    But building such a complex industry will take time, Wu said. “I would say 10 years,” he added.

    If our leaders were smart, they would be trying to find a way to maintain peace.

    But instead they just keep antagonizing both Russia and China, and that is just pushing them closer to one another…

    China said it wants closer ties with Russia’s military, a sign Moscow still has Beijing’s support after the aborted Wagner mutiny.

    Chinese Defense Minister Li Shangfu said in a meeting Monday with Nikolai Yevmenov, commander-in-chief of Russia’s navy, that “with the joint efforts of both sides, the relations between the two militaries will continue to deepen and solidify, constantly make new progress and reach a new level.”

    If we end up fighting Russia and China at the same time, it would be a nightmare.

    And needless to say, such a conflict would inevitably go nuclear, and a full-blown nuclear war would have the potential to kill billions of people…

    So let us pray for peace.

    Unfortunately, our leaders don’t seem interested in peace at all.

    Joe Biden and his warmongering minions are playing a very dangerous game, and the fate of humanity hangs in the balance.

    *  *  *

    Michael’s new book entitled “End Times” is now available in paperback and for the Kindle on Amazon.com, and you can check out his new Substack newsletter right here.

    Tyler Durden
    Sun, 07/09/2023 – 10:30

  • Deranged Gunman On Scooter 'Randomly' Shoots People In NYC
    Deranged Gunman On Scooter ‘Randomly’ Shoots People In NYC

    A deranged 25-year-old Hispanic male indiscriminately shot four people, killing one, while casually motoring around New York City on a scooter. Police say the suspect was experiencing a mental health crisis. 

    The shooting spree in Brooklyn and Queens started around 1110 ET Saturday and ended two hours later, police said. The 25yo gunman was in possession of a 9 mm semi-automatic handgun with a high capacity magazine and an “illegal” scooter, New York Police First Deputy Commissioner Edward Caban said at a news conference.  

    Police sources told NBC News that the suspect “appears to suffer from emotional or mental issues.” NYPD Assistant Chief Joseph Kenny noted that the suspect was a “male Hispanic.” 

    The rampage started when the suspect shot a 21yo man in the shoulder in Cypress Hills. About 20 minutes later, the suspect fatally shot an 87yo man once in the back on Jamaica Avenue near 108th Street. A 44yo man was reportedly shot in the face near 126th Street and remains in critical condition. And a 63yo man was shot in the shoulder on 134th Street. 

    “We don’t know the motive…If you look at the demographics and pedigree of the victims, they’re all different,” Kenny said.

    The assistant NYPD chief continued, “At this time, the video shows that he’s not targeting anybody. He’s not following anybody as he’s driving on his scooter, he’s randomly shooting people.”

    https://platform.twitter.com/widgets.js

    https://platform.twitter.com/widgets.js

    The suspect was arrested two hours later on the corner of Sutphin Boulevard and 94th Avenue in Queens. 

    This is just another day in crime-ridden NYC as Democrats fail to enforce law and order. Remember, progressives in City Hall were the ones that pushed disastrous defunding the police measures a few years ago. 

    Tyler Durden
    Sun, 07/09/2023 – 09:55

  • Corporate Bankruptcies Reach Highest Level Since 2010
    Corporate Bankruptcies Reach Highest Level Since 2010

    Authored by Andrew Moran via The Epoch Times,

    New data show that a growing number of U.S. firms are collapsing under the weight of higher interest rates as corporate bankruptcies reached their highest first-half levels since 2010.

    In the first six months of 2023, there were 340 corporate bankruptcies, topping every other comparable span in 13 years, according to S&P Global Market Intelligence. This is up 93 percent from the same time a year ago and higher than in 2020, when there was a spike during the early days of the coronavirus pandemic.

    There were 54 recorded corporate bankruptcy filings in June, unchanged from the 54 bankruptcies in May. Last month, some of the most notable companies to submit filings were Lordstown Motors, Rockport Co., Instant Brands Acquisition Holdings, and iMedia Brands.

    “Lordstown Motors Corp. filed for bankruptcy June 27, with plans to restructure its business and seek a buyer, according to a company release. The electric vehicle manufacturer’s assets include its Endurance pickup truck and related resources,” S&P noted in the July 6 report.

    “Instant Brands Acquisition Holdings Inc. also sought bankruptcy protection June 12. The tightening of credit terms and higher interest rates had impacted the company’s liquidity levels, according to an official release. The company has also already secured $132.5 million from existing lenders and plans to continue discussions with its financial stakeholders.”

    Year-to-date through June, 15 companies with more than $1 billion in liabilities filed for bankruptcy, such as Cyxtera Technologies, Diebold Holding, Bed Bath & Beyond, Diamond Sports Group., and Party City.

    Epiq Bankruptcy, a U.S. bankruptcy filing data provider, confirmed that 2,973 total commercial Chapter 11 bankruptcies were filed in the first half of 2023, up 68 percent from the same period in 2022.

    Higher Interest Rates Impacting Businesses

    Banking experts purport that higher interest rates are the leading cause of the increase in corporate bankruptcies. Many businesses either maintain vast debt loans that will require refinancing or need more liquidity to stay afloat.

    “The increase in commercial and individual bankruptcy filings during the first half of 2023 underscores the economic challenges faced by businesses and individuals,” said Mr. Gregg Morin, Vice President of Business Development and Revenue at Epiq Bankruptcy, in the report.

    “Our objective is to provide bankruptcy professionals with timely and accurate data necessary for analyzing stakeholder volumes and trends for making informed business decisions.”

    The situation could be exacerbated should the Federal Reserve pull the trigger on two more rate hikes this year. The futures market is penciling in a quarter-point boost to the benchmark fed funds rate at this month’s Federal Open Market Committee (FOMC) policy meeting.

    Meanwhile, according to a recent Fitch Ratings report, the corporate default rate is projected to climb to as high as 4.5 percent in 2023, up from the previous forecast low of 2.5 percent. The updated projections reflected “the tighter lending conditions and capital access resulting from stress in the banking sector and inflation uncertainty.”

    However, some argue that corporate bond market indicators are “less ominous.”

    “The interest rate differentials, or spreads, between the 10-year U.S. Treasury note and investment grade (IG) and high yield (HY) corporate bonds continue to hover within their average width over the past 25 years, a bond market signal indicating the likelihood of a less severe recession, with traders pricing in fewer corporate defaults,” wrote John Lynch, the CIO at Comerica Wealth Management, in a research note.

    Economists contend that the worst corporate bankruptcies typically occur one or two years into a recession. Today, they are happening before the official start of an economic downturn as the U.S. economy is still expanding.

    What’s happening?

    “Simple,” says Mr. Pete St. Onge, a Heritage Foundation economist, “banks aren’t lending.”

    “Banks are battening down the hatches, hogging their bailout money instead of lending it out,” he said in a recent podcast.

    “That credit crunch means not only do we get bankruptcies like in any recession, on top of that, we get a lending wall that cuts off even the healthy businesses. Of course, their jobs go down with them.”

    Since the Federal Reserve launched the Bank Term Funding Program (BTFP) following the Silicon Valley Bank collapse in March, financial institutions have kept tapping into these emergency lending facilities. After hitting a record high at above $103 billion at the end of June, the latest central bank H.4.1 data show that the BTFP dropped for the first time since the beginning of May.

    Despite financial entities receiving these funds, companies say it is getting more challenging to apply for credit, resulting in what many perceive to be a credit crunch.

    A recent Goldman Sachs survey found that three-quarters of small business owners say they are worried about accessing capital as banking stress has forced the sector to tighten lending.

    Moreover, a National Federation of Independent Business (NFIB) Small Business Survey found that more small business owners have found it harder to access credit than in the last survey.

    Tyler Durden
    Sun, 07/09/2023 – 09:20

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