Feb 23

Today’s News 23rd February 2025

  • Panic Ensues, Dem Senator Lahes Out At 'Dick Boss' Musk Over Email Requiring Feds Explain Work
    Panic Ensues, Dem Senator Lahes Out At ‘Dick Boss’ Musk Over Email Requiring Feds Explain Work

    Update (2356ET): Panic has predictably ensued over Elon Musk’s requirement that all federal employees provide a five bullet point summary of what they accomplished last week, due by midnight on Monday (full details below).

    While newly minted FBI Director Kash Patel exempted agency employees from the requirement (with much of the intelligence community reportedly set to get the same pass), there’s a lot of upset feds out there.

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

    Senator Tina Smith (D-MN) lashed out, posting to X, “This is the ultimate dick boss move from Musk – except he isn’t even the boss, he’s just a dick.” (she said on the heels of a coordinated campaign to brand him ‘Co-President Musk’)

    To which the White House Rapid Response team replied, “What did you accomplish this week, Tina? Five bullets, please,” and Musk replied with a fire and ‘crying while laughing’ emojis.

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

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

    The Rapid Response team, which posts daily information about the Trump agenda, was happy to oblige.

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

    Stay tuned for more…

    *  *  *

    You can support ZeroHedge by purchasing one of these high-quality, sharp, kickass ZeroHedge Multitools which comes with belt pouch. On sale until Monday!

    Satisfaction guaranteed or your money back.

    * * *

    Update (2308ET): New FBI Director Kash Patel sent an email to all agency employees on Saturday night instructing them to “pause any responses” to Elon Musk’s request that all federal employees provide summaries of their accomplishments over the past week or face termination.

    “The FBI, through the Office of the Director, is in charge of all of our review processes, and will conduct reviews in accordance with FBI procedures,” reads the note from Patel. “When and if further information is required, we will coordinate the responses. For now, please pause any responses.“

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

    Meanwhile, at least one federal employee apparently don’t have time to answer the email – but did have time to complain to a MSM reporter about having to do it.

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

    *  *  *

    Elon Musk is ‘running the Twitter playbook on the government,’ after writing in a Saturday post on X that all federal employees will be receiving an email “shortly” requesting to “understand what they got done last week.”

    Those who fail to reply “will be taken as a resignation.”

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

    And there it is (though no mention of the implied resignations for failure to respond):

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

    When X user ‘The Rabbit Hole’ commented that Musk is “running the Twitter playbook on the government,” Musk replied: “It works.“

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

    The post came hours after President Donald Trump encouraged Musk to “get more aggressive” with the Department of Government Efficiency (DOGE), adding “REMEMBER, WE HAVE A COUNTRY TO SAVE.“

    Musk’s email comes after roughly 77,000 federal employees accepted DOGE’s “Fork in the Road” email offering roughly 8 months of pay in exchange for resigning. After that, DOGE moved to fire thousands of employees across various agencies – mostly those in a probationary period who have been in their jobs for less than one year.

    It also comes after the Trump administration scored a legal victory when a judge allowed Musk and crew to continue accessing federal data and arranging for mass layoffs.

    Last week, Trump signed an executive order directing agencies to work with DOGE to make “preparations to initiate large-scale reductions in force.”

    *  *  *

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

     

    Tyler Durden
    Sat, 02/22/2025 – 23:57

  • Bovard: Can Kennedy Save Kids From Psychiatric Ravage?
    Bovard: Can Kennedy Save Kids From Psychiatric Ravage?

    Submitted by Jim Bovard

    President Trump issued an executive order last week creating a Make America Healthy Again Commission, to be chaired by Health and Human Services Secretary Robert F. Kennedy, Jr. Among other targets, the commission will examine “prevalence of and threat posed by the prescription of selective serotonin reuptake inhibitors [SSRIs], antipsychotics, mood stabilizers, stimulants, and weight-loss drugs.”

    Kennedy has been outspoken on the danger of SSRIs, linking them to school shootings and stating that members of his family “had a much worse time getting off of SSRIs than they have getting off of heroin.”

    Kennedy’s views mortify the mainstream media. The Washington Post did a hefty piece portraying Kennedy’s commission as more dangerous than any drugs prescribed to children. To discover the absolute truth, the Post turned to the CEO of the American Psychiatric Association, who assured the Post that “psychiatric drugs can be very effective and generally are given to children carefully after front-line treatments such as talk therapy.”

    Decades ago, who would have expected an apology for Adderall, Prozac, Zoloft, and similar drugs to sound like a pitch for Kellogg’s breakfast cereals? Prescription drug use is skyrocketing. Antidepressant prescriptions for young Americans aged 12 to 25 increased by 66% between 2016 and 2022.

    The New York Times reported last year that many young people were left worse off thanks to “mental health interventions.” The Times showcased psychiatric “prevalence inflation” – a vast increase in reported mental illness among teenagers who are encouraged to view normal feelings as grave maladies requiring intervention. Oxford University psychologist Lucy Foulkes observed that school programs are “creating this message that teenagers are vulnerable, they’re likely to have problems, and the solution is to outsource them to a professional.” 

    Foulkes explained that “awareness efforts” spur young people “to interpret and report milder forms of distress as mental health problems.” Filing such complaints “leads some individuals to experience a genuine increase in symptoms, because labeling distress as a mental health problem can affect an individual’s self-concept and behavior in a way that is ultimately self-fulfilling.”

    Like a New Yorker cartoon from the 1950s, psychiatric diagnoses have become status symbols, propelled by snake oil “social-emotional learning” programs. University of Southern California clinical psychologist Darby Saxbe warns that mental illness labels have “become an identity marker that makes people feel special and unique. That’s a big problem because this modern idea that anxiety is an identity gives people a fixed mindset, telling them this is who they are and will be in the future.” Psychiatric labels can become a ball-and-chain that people drag behind them. Endless classroom presentations on mental health spur “co-rumination” – excessively talking about one’s problems – which evokes memories of first dates from hell.

    Hungarian-American psychiatrist Thomas Szasz warned in the last century, “Psychiatrists manufacture mental diagnoses the way the Vatican manufactures saints.” But protests by Szasz and other dissident shrinks did nothing to prevent a sham stampede.

    The American Psychiatric Association’s Diagnostic and Statistical Manual of Mental Disorders (DSM) now lists more than 300 mental illnesses, five times as many as it specified in the 1960s. Dr. Allen Frances, writing in Psychology Today, warned that the latest DSM contained “many changes that seem clearly unsafe and scientifically unsound” and is “likely to lead to massive over-diagnosis and harmful over-medication.”

    After the DSM redefined autism in the 1990s, the autism rate “quickly multiplied almost 100 fold.” Thanks to another DSM redefinition, the “number of American children and adolescents treated for bipolar disorder increased 40-fold” between 1993 and 2004, the New York Times reported. Psychiatrist Laurent Mottron complained in 2023 that the latest version of the DSM “is full of vague and trivial definitions and ambiguous language that ensures more people fall into various, abnormal categories.”

    The DSM provides a road map for federal law. The Americans with Disabilities Act (ADA) compels schools and universities to provide “reasonable accommodation” to students who claim to have a disability, physical or mental. Even before the pandemic, up to 25% of students at top colleges were “classified as disabled, largely because of mental-health issues such as depression or anxiety, entitling them to a widening array of special accommodations like longer time to take exams,” the Wall Street Journal reported in 2018. Similar string-pulling occurs for the rigorous entrance exams for New York City’s elite high schools, where “white students…are 10 times as likely as Asian students to have a [disability] designation that allows extra time,” the New York Times reported.

    Between 2008 and 2019, the number of undergraduate students diagnosed with anxiety increased by 134%, 106% for depression, 57% for bipolar disorder, 72% for ADHD, 67% for schizophrenia, and 100% for anorexia, according to the National College Health Assessment. Students’ struggles skyrocketed after Covid shutdowns. A Boston University analysis of students on almost 400 campuses in 2022 found that “60% of the respondents met the qualifying criteria for ‘one or more mental health problems, a nearly 50% increase from 2013.’” But awarding endless psychiatric Purple Hearts will do nothing to help college graduates adjust to the challenges of life beyond the classroom.

    I recognized that the DSM was becoming unhinged after attending the 1986 annual meeting of the American Psychiatric Association in Washington. Here are some riffs from a Detroit News op-ed I wrote at that time:

    The APA served attendees a batch of freshly-ordained mental illnesses, including “premenstrual dysphoric disorder.” The APA says symptoms of this “mental illness” include “irritability,” “marked fatigue,” and “negative evaluation of self.” According to the APA’s definition, a third of all women go crazy once a month.

    The second newly ordained mental illness is “self-defeating personality type,” previously known as common or garden-variety masochism. The symptoms for this grade disorder include, “complaints, directly or indirectly, about being unappreciated,” “repeatedly turns down opportunities for pleasure,” and “remains in relationships in which others… take advantage of him or her.” Bring on the Valium!

    The third “discovery” was guaranteed to raise the APA’s popularity with trial lawyers. The APA tentatively decided that anyone who persistently fantasizes about or actively forces a non-consenting person to have sex suffers from “paraphilic rapism.” In other words, a person would have to be nuts to rape somebody. As one protester at the APA’s meeting declared, “Sexual assault is a crime – not a mental disorder.” The Committee of Women of the APA said the new category would “provide an instant insanity plea for anyone charged with rape.”

    If shrinks only cleaned out people’s wallets, then they would be no more harmful than your average politician. But psychiatrists nowadays routinely rely on mind-numbering drugs and mind-shattering electric shock treatments. Some mental patients are developing Parkinson’s disease symptoms as a result of years of heavy medication. Electric shock “therapy” – aside from being a terrifying experience – sometimes causes permanent memory loss, thus making it harder for a patient to handle reality.

    We have new mental illnesses not because of new breakthroughs in understanding the mind, but because psychiatrists want more money and more power over the rest of us. Shrinks generally have a poor batting average for curing known mental problems – but that has not stopped them from creating new “illnesses” that supposedly they alone can treat. But a con artist with an MD is still a con artist.

    My carping did nothing to slow the white-coated hucksters. In 2019, the American Psychological Association officially designated traditional masculinity as a de facto mental illness. Their new guidelines specifically state that “stoicism” and other traits are “on the whole, harmful.” Did Marcus Aurelius spin in his grave? Apparently, instead of toughing out challenges, people are supposed to spend their lives whimpering to shrinks and getting appropriately drugged. At least prior to the current administration, the Food and Drug Administration has been a shill for Big Pharma and is unlikely to expose or admit the long-term harm from drugs that can partially numb minds.

    Image: Shuttestock

    Psychiatrists have helped some individuals better understand themselves and deal more deftly with everyday reality. But bogus mental illnesses have turned millions of healthy Americans into “mental patients,” according to Dr. Allen Frances. 

    But this peril also profoundly endangers freedom. The profusion of new diagnostic labels encourages people to view themselves as psychologically fragile. Actually, the Americans with Disabilities Act rewards people who demand “reasonable accommodations” (extra time for tests, no deadlines, etc.) because they are depressed or anxious. Those incentives create a downward politico-psychological spiral.

    Kennedy’s commission will report to Trump within 100 days on the “potential over-utilization of medication” and other unrecognized health perils in America. Hopefully, the commission will deliver a stunning, well-documented report that will help people recognize how psychiatrists have concocted labels that have left millions of Americans at their mercy. 

    Tyler Durden
    Sat, 02/22/2025 – 23:20

  • Six Israelis & Nearly 500 Palestinians Freed In Final Phase 1 Ceasefire Exchange
    Six Israelis & Nearly 500 Palestinians Freed In Final Phase 1 Ceasefire Exchange

    The final six living hostages who were still in Hamas captivity have been released on Saturday, as part of the final hostage/prisoner exchange closing out phase one of the Israel-Hamas truce deal.

    They are Tal Shoham, Omer Shem Tov, Omer Wenkert, Eliya Cohen, Avera Mengistu and Hisham al-Sayed, and this marks the largest single day of releases of this current ceasefire deal. There are four more deceased hostages whose bodies are expected to be handed over Saturday. 

    Via AP

    The men were released in two different locations, all looking frail, apparently having suffered significant weight loss.

    Two of the Israeli men had already been captive in Gaza long before the events of Oct.7. They’ve been freed after a full decade, shockingly enough:

    Shoham, Shem Tov, Wenkert and Cohen were all taken captive on October 7, 2023 during the Hamas-led attacks and massacres, and had been held as hostages in Gaza for over 500 days.

    Mengistu and al-Sayed both entered Gaza on their own accord in 2014 and 2015, respectively, and had been held captive by terror groups in Gaza for around a decade each.

    There are reports that the agreed to release of Palestinians prisoners from the Israeli side was delayed, but is now being facilitated.

    It is a huge release this time – involving the transfer of 491 Palestinian detainees. The Red Cross is conducting pre-departure interviews and medical assessments, and are in contact with relatives.

    Whether the ceasefire continues to hold into a second phase remains an open question. Each side has accused the other of violating the terms of the truce over the last month. 

    Spokesman for Hamas’ political bureau Basem Naim has described, “Unfortunately, Netanyahu and his government have been rejecting to engage with the second phase while only one week is left from the first phase. We believe that again, these are dirty games from the right-wing government to sabotage and undermine the deal and to send a message of willingness to go back to war.”

    At least one of the captives who had long been held by Hamas was mentally unwell when he was taken hostage:

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

    “Over 100 Palestinians have been killed in the first phase, much of the agreed humanitarian aid was not allowed into Gaza, and the withdrawal from the Netzarim Corridor was postponed,” Naim said.

    Tyler Durden
    Sat, 02/22/2025 – 22:45

  • It All Comes Down To Accounting
    It All Comes Down To Accounting

    Authored by Jeffrey Tucker via The Epoch Times,

    There are two portals of money in every institution: money coming in and money going out. Keeping track of that in both directions is the key to operations. The final number can reveal profits or losses, surpluses or deficits. Regardless, the accounting books are the beating heart of every institution.

    Accounting means accountability, holding people to account for their work.

    This is why the Department of Government Efficiency (DOGE), formed by Elon Musk with a business-based mindset, sets its sights on two primary institutions in the federal government: the U.S. Treasury payment systems and the revenue agency. That is where the money goes out and where the money comes in.

    Tying these together and tracing the funds with normal accounting standards is the key to eliminating waste, fraud, and abuse. This is all about verifying what is true. It’s not enough just to look at printouts of Congressional budgets or long spreadsheets published by some other agency. The only way to discern what is absolutely true is to go to the source.

    The penetration of both ends of this have generated astonishing results, among which that many millions of Social Security recipients are apparently not alive. Or maybe they are and this is just a recordkeeping error. They are going to find out one way or another.

    The most shocking revelation from the very limited look at the U.S. Treasury books that judges have permitted DOGE concerns proper tagging of expenditures. They have documented that $4.7 trillion in government spending is not tagged with what’s called a Treasury Access Symbol (TAS) that ties the spending to a Congressional authorization.

    Those are huge numbers. Maybe all these expenditures are legitimate and authorized. Or maybe not. Without the TAS tag, there is no way to know. That change in the books has now been made mandatory so that at least we have the beginnings of a valid and verifiable system of accounting in government.

    One does wonder. Every year, Congress debates the budget and there is horse trading all around with every politician fighting for a share of the loot. They estimate revenues. They forecast deficits and debts. After a version is produced that includes both the House and Senate, the final result is sent to the President for a signature.

    From there, we’ve always just assumed that the deeper machinery of the bureaucracy takes it from there. But what if there is no real and necessary relationship between what Congress authorizes and what the President approves and what actually happens on the expenditure and revenue side? This seems to be the situation.

    How long has this gone on? Five former Secretaries of the Treasury have said that it has been almost 80 years since elected officials and their appointees have had access to the payment systems. They have been controlled for all living memory by a small group of civil servants who have long walled themselves off from the electorate. This is a stunning realization, one of many that has been unearthed by the forensics being undertaken by DOGE. It remains entirely possible that once this group of appointed outsiders have completed their work, which is in two years, the budget will be balanced even with lower taxes.

    That might sound crazy but it is entirely possible.

    To be sure, many administrations have come and gone that swore to get to the bottom of the budget problem, to eliminate waste and fraud and make sure that the government is a better steward of public resources. But think about it. If they never really had certifiable access to the real-time sources of collecting and spending, what good could they actually do? This time does seem to be different.

    It fascinates me that the real battles of our time really do come down to something as granular and seemingly mundane as accounting. One hundred years ago, a big debate broke out within economics and political science over accounting and its role. This debate spoke directly to the issue of economic systems and which would be best for society.

    The socialists in those days said that they would implement their vision with collective ownership of the means of production and the assignment of experts at the top to direct the use of resources. Economist Ludwig von Mises in 1920 made the salient point. He said that with collective ownership, there would be no operational markets for capital goods and thus no market prices for them.

    Market prices are essential for calculating profit and loss through means of double-entry bookkeeping. Without that, even the smartest central planning would lack access to data concerning the wisest use of scarce resources. They would have no idea what consumers valued relative to other options and no idea what kinds of materials were available to meet those needs.

    For this reason, Mises said, socialism would institutionalize economic irrationality. Creating an actual economy—meaning an environment in which resources were deployed to their most socially optimal ends—would be impossible. The unfolding of events in Russia proved his point. The experience of socialism in every country would always end up the same: despots at the top squandering resources until the whole society sank into desperate poverty.

    Mises concluded from his deductions that the only real system that allows for rational economizing is the market economy with private property in the capital-good sectors. His argument was shocking, and debated for 20 years following, simply because he was bringing cold hard truths to a subject that had been dominated for far too long by airy philosophy that had nothing to do with the realities of the material world.

    Similarly, government has always had an accounting problem. It does not know what to charge for goods and services and its decisions about revenue were ultimately arbitrary. The larger the government budget, the more irrationality itself is baked into economic structures. That is a given.

    That said, there at least should be some attempt to keep track by creating a web of relationships between what is approved, where the money comes from, and how it is used. This is just normal bookkeeping, without which fraudsters and corruption run rampant.

    It truly boggles the mind that fully $4.7 trillion in federal expenditures have routinely taken place without any real obligation to attach that spending to an authorized source. It makes one wonder if all the debates about the budget and all the voting and signing ceremonies have been nothing but theater for generations.

    What also intrigues me about this line of thinking and work is how, in the end, this is not really about big ideological and philosophical debates about the purposes and scope of government. This is really about something very simple: how the nation goes about balancing its checkbook. Until we get that part right, all the rest of the debates are so much hot air.

    No matter your political outlook, you should be grateful that DOGE seems finally to be setting things right in the operations of government. There absolutely must be a standard of compliance with accounting practices that every single business, nonprofit, or household has to use in order to maintain economic viability. After DOGE does its work, government should continue to practice the precedent established in these days, weeks, and months.

    The whole reason for accounting and careful audits is to verify what is true and thus enhance public trust in their own government. Again, we can argue all day about what the government should and should not do, but until we know for certain what is actually going on, such debates mean nothing.

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

    Tyler Durden
    Sat, 02/22/2025 – 22:10

  • Efforts To Arrange Trump–Putin Meeting Underway, Moscow Says
    Efforts To Arrange Trump–Putin Meeting Underway, Moscow Says

    Authored by Ryan Morgan via The Epoch Times,

    Moscow is working to arrange a face-to-face meeting between Russian President Vladimir Putin and U.S. President Donald Trump, Russian Deputy Foreign Minister Sergei Ryabkov announced on Feb. 22.

    In remarks he shared with Russian state media, Ryabkov indicated that efforts to arrange the meeting have begun in earnest but will require “the most intensive preparatory work.”

    The Russian official said U.S. and Russian envoys could meet “within the next two weeks” to lay the groundwork for the eventual talks between the two leaders.

    If Washington and Moscow can arrange for the two leaders to meet, it will mark the first time that a U.S. president and a Russian president met directly since June 2021, when Putin met with then-U.S. President Joe Biden in Geneva, Switzerland.

    Such a meeting would also mark the first in-person between the leaders of the United States and Russia since Moscow’s troops marched on Ukraine three years ago.

    The Ukraine conflict has strained already contentious U.S.–Russia relations. The United States has been Ukraine’s foremost supporter, providing the most funding for Ukraine-related assistance of any country that has supported Kyiv throughout the conflict.

    The Trump administration has sought to pair negotiations for a peace settlement in the Ukraine conflict with a broader effort to improve U.S.–Russia relations.

    A U.S. delegation comprised of Secretary of State Marco Rubio, White House national security adviser Mike Waltz, and special presidential envoy Steve Witkoff met with a Russian delegation in Riyadh, Saudi Arabia, on Feb. 18 as part of the ongoing Trump administration efforts to reestablish regular dialogue with Moscow.

    Following the Riyadh meeting, Rubio announced both delegations had agreed to appoint high-level teams to work together to settle the Ukraine conflict. Rubio also said the two delegations agreed to establish a mechanism to address strains in U.S.–Russia relations and lay the groundwork for possible future cooperation between the two countries on areas of shared geopolitical and economic interests.

    In his remarks to the press after the Riyadh meeting, Rubio said cooperation between the United States and Russia on geopolitical and economic issues would be contingent on a successful and enduring peace settlement in the Ukraine conflict.

    In a Feb. 20 interview, journalist Catherine Herridge asked Rubio what the potential timeline is for a sit-down meeting between Trump and Putin. Rubio responded: 

    “There isn’t going to be a meeting until we know what the meeting is going to be about.

    “I think when that meeting happens will largely depend on whether we can make any progress on ending the war in Ukraine, and if we can, and that meeting is what seals the deal.”

    While the Trump administration has tried to open up lines of communication with Moscow, it has also had to contend with frustration from Ukrainian President Volodymyr Zelenskyy. Trump and Zelenskyy traded barbs this week, with Trump calling Zelenskyy a dictator and Zelenskyy accusing Trump of being swayed by Russian disinformation.

    At a White House press availability on Feb. 21, Trump faced questions about his comment that Zelenskyy was a dictator and whether he should apply the same label against Putin. Trump didn’t directly answer the question but instead said Putin and Zelenskyy should eventually engage with one another more directly as part of the effort to reach a peace settlement.

    “I think that President Putin and President Zelenskyy are going to have to get together because, you know what, we want to stop killing millions of people,” Trump said.

    Twice during his remarks on Friday, Trump denied reports that he plans to travel to Moscow to meet with Putin on May 9.

    Tyler Durden
    Sat, 02/22/2025 – 21:35

  • Federal Judge Rules In Favor Of Trump Government Layoffs
    Federal Judge Rules In Favor Of Trump Government Layoffs

    Authored by Eric Lendrum via American Greatness,

    On Thursday, a federal judge ruled that the Trump Administration can proceed with plans to carry out mass firings of federal employees.

    As reported by The Hill, U.S. District Judge Christopher Cooper, who was appointed by Barack Obama, ruled that the labor unions which filed the lawsuit against the government layoffs had to take their case before the Federal Labor Relations Authority (FLRA) rather than a federal court.

    “The first month of President Trump’s second administration has been defined by an onslaught of executive actions that have caused, some say by design, disruption and even chaos in widespread quarters of American society,” said Judge Cooper.

    “Affected citizens and their advocates have challenged many of these actions on an emergency basis in this Court and others across the country. Certain of the President’s actions have been temporarily halted; others have been permitted to proceed, at least for the time being. These mixed results should surprise no one.”

    Following through on another campaign promise, President Donald Trump has been firing thousands of federal workers, across all agencies, in an effort to shrink the size of the federal bureaucracy.

    To this end, President Trump also offered an unprecedented buyout offer, known as the “Fork in the Road” initiative, granting up to 8 months of paid vacation to all federal employees who submitted their immediate resignation. 

    Over 75,000 employees accepted the offer before its expiration deadline. 

    Several attempts to block the buyout offer ultimately failed in court.

    The most recent case, which led to Judge Cooper’s ruling, was brought by a coalition of labor unions representing federal workers, including the National Treasury Employees Union (NTEU), the National Federation of Federal Employees (NFFE), the International Association of Machinists and Aerospace Workers (IAMAW), the International Federation of Professional and Technical Engineers (IFPTE), and the United Auto Workers (UAW).

    Judge Cooper ultimately did not rule on the validity of the unions’ argument, which claimed that the executive branch’s actions are in violation of the separation of powers, but instead told the unions to make their case in a different setting.

    “The Court acknowledges that district court review of these sweeping executive actions may be more expedient,” the judge wrote.

    “But NTEU provides no reason why it could not seek relief from the FLRA on behalf of a class of plaintiffs and admits that it would ask other agencies to follow an administrative judge’s ruling in its favor.”

    Tyler Durden
    Sat, 02/22/2025 – 20:25

  • How Many Federal Government Workers Has Trump Fired So Far?
    How Many Federal Government Workers Has Trump Fired So Far?

    The first month of Donald Trump’s second term has been a hurricane of activity, with Elon Musk’s DOGE pursuing a scorched earth policy on government waste.  Despite continuing disruptions by Democrats and activist judges the audits of federal government agencies continue.  Trump’s executive orders are likely designed to catch the bureaucracy off guard so they don’t have time to hide their mismanagement.  However, in all that beautiful mayhem many in the public are confused as to what cuts have actually been made.

    Establishment economists are predicting a recession for the Washington DC area due to the mass layoffs (which is not necessarily a bad thing).  The concern over recession within the financial media helps to illustrate how real the cuts are and how worried the progressives have become.  Some argue that conservative employees will be caught up in the cleansing along with their leftist counterparts, however, looking at the voting record of the population of DC it’s not much of a threat. 

    Over 92% of the district voted for Kamala Harris in 2024.  Only one Republican candidate has ever won more than 20% of the DC vote (Richard Nixon in 1972).  The town is crawling with leftists, many of them working within the bowels of the government.  No tears should be shed over rising unemployment in Washington.

    The federal government employs 3 million civilian workers today – A massive number.  The last time the government had this many employees was in 1994.  The foundation for ever growing government was established in 1933 under Democrat President Franklin D. Roosevelt’s “New Deal”; social programs and debt spending became the norm.  The national debt grew by 50% in only three years after the New Deal was passed and, contrary to the propaganda, it accomplished little in the way of solving the problems at the root of the Great Depression. 

    Trump’s federal cuts, if he follows through as he has promised, could mean the smallest federal government apparatus in almost a century.  Here is a list of agencies that have received pink slips so far…

    USAID

    Trump now has the legal go-ahead to gut USAID.  The organization has at least 10,000 employees and most of them will be fired in the coming weeks.  So far 2000 are being put on leave while others are being reviewed to determine if they are essential.  It is expected that Trump will ultimately keep less than 300.  

    Deferred Resignations

    The White House offered a “deferred resignation” proposal in exchange for financial incentives to almost all federal employees who opted to leave their jobs by February 6th.  But a federal judge blocked Trump’s plan, wanting to hear arguments from the administration and the labor unions.  According to the Office of Personnel Management, about 75,000 federal employees had accepted the offer.

    Probationary Employee Layoffs

    Federal workers with less than one year on the job are subject to immediate layoffs.  All agencies have been ordered to fire such employees, meaning up to 220,000 are let go.  Many of these probationary workers are included in the general cuts for institutions like the Department of Defense.

    IRS

    Trump is moving ahead with layoffs within the IRS.  The agency employs at least 100,000 people and Trump’s cuts only affect 6000 of them.  However, questions are swirling over Trump’s intentions to eliminate the IRS entirely, a move which most Americans would welcome.   

    Department of Homeland Security and TSA

    The DHS has executed only 400 layoffs so far, all of them considered “non-mission critical” personnel.

    FAA

    The FAA has fired 400 staff according to the union representing the employees.  DOGE has also been ordered to further investigate and streamline the efficiency of the agency.

    Consumer Financial Protection Bureau

    100 workers have been fired from the CFPB.

    Department of Education

    The battle over the Dept. of Education is ongoing.  No measurable layoffs have been executed yet, but Trump says he intends on removing the agency entirely, which would mean 4400 worker layoffs.

    Department of Energy

    The department famous under the Biden Administration for hiring a trans activist official that liked to steal women’s luggage from airports.  Approximately 2000 personnel have been fired so far.

    Department of Health and Human Services

    Thousands of probationary employees were cut from the HHS and NIH along with 700 employees fired from the CDC.

    Department of Land Management

    At least 2300 employees have been let go including 800 from BLM and 1000 from the National Park Service.

    EPA

    Around 500 staff have been terminated from the EPA after an efficiency review, including the entire staff of the EPA’s Diversity and Inclusion office.

    Small Business Administration

    720 SBA employees were fired, including hundreds of probationary workers. 

    US Forest Service

    Around 3400 employees have been terminated from the Forest Service, at least 10% of the total staff.  Much griping has been made in the media about these job losses, though many of them involved positions in “climate change education” and DEI initiatives.  The layoffs do not include firefighters, law enforcement officers, bridge inspectors or meteorologists.

    Inspectors General

    Each of the federal government’s largest agencies has its own independent inspector general who is supposed to conduct objective audits, prevent fraud and promote efficiency.  Trump has fired at least 17 of them and it’s understandable why.  With the amount of fraud and waste DOGE has found so far, it’s difficult to justify their continued employment.  What a surprise, the bureaucrats policing the bureaucrats doesn’t work.

    Department of Justice

    Trump is firing all Biden era attorneys from the DOJ, including those that hounded him over the last four years.  The Justice Department said last month that it had fired more than a dozen employees who worked on criminal prosecutions of Trump by special counsel Jack Smith’s team.

    State Department

    A large number of senior career diplomats who served in politically appointed leadership positions, as well as in lower-level posts at the State Department, left their jobs at the demand of the new administration.  It was not immediately clear how many nonpolitical appointees were being asked to leave.

    DOGE’s Window Of Opportunity

    Given that Trump has faced ongoing legal challenges on his crusade to reduce the size of government, the level of cuts is still extensive.  DOGE is a limited program that ends in 18 months, just in time for Mid-Term elections where Trump will need to solidify the conservative control of the Congress and Senate while also booting out those pesky deep state Neo-Cons still haunting the the halls.  Whatever layoffs they plan to enforce will all be done in the next year.

    This means the whirlwind will continue. Legal opposition will likely wane as it becomes clear to Democrats that there’s nothing they can do to stop the policies that the American people voted for.  It will be interesting to see what the federal government looks like in 2026.        

    Tyler Durden
    Sat, 02/22/2025 – 19:50

  • How Long Before This Thing Is Roaming Around Exterminating People?
    How Long Before This Thing Is Roaming Around Exterminating People?

    Authored by Steve Watson via Modernity.news,

    A video of a humanoid automaton coming to life has gone viral on X, and has people asking how long before this thing is weaponised?

    The synthetic human-like creature, named Clone Alpha, was created by a company called Clone Robotics, which seems to have directly taken inspiration from the dystopian TV show Westworld.

    Even its company logo is the same as imagery in the show’s opening credits. 

    The company claims that the “muscuskeletal androids” are designed designed to help around the home with menial tasks including cleaning, washing clothes, unloading the dishwasher and making sandwiches.

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

    However, it is also “capable of witty dialogue,” as well as “following you around.”

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

    The machine can also charge itself and comes “equipped with the Telekinesis training platform to let you teach your Clone Alpha new skills.”

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

    The Clone Robotics company says it will produce 279 of the creatures and is taking pre orders. The retail price is not listed, but a robot hand they also sell is listed for $2800.

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

    What’s with the creepy music?

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

    Would you want one of these in your home?

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

    In your home with your kids?

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

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

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

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

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

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

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

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

    *  *  *

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

    Tyler Durden
    Sat, 02/22/2025 – 19:15

  • Previewing Sunday's Critical German Election: All You Need To Know
    Previewing Sunday’s Critical German Election: All You Need To Know

    We previously previewed tomorrow’s German election in an extensive article (see “Everything You Need To Know About The Upcoming German Election“) but with so much at stake, with Elon now going all in…

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

    … and with the situation more fluid by the day…

    Source: Polymarket

    … it’s time for a quick reassessment of where we stand (we summarize various reports from DB, Goldman and Bloomberg).

    1. Executive Summary

    Polls, coalition options and potential impact on policies

    • Polls: The conservative CDU/CSU is leading the polls with 31 followed by the far right AfD at around 21 the Social Democrats at 15 and the Greens at 13%. A lot of attention will be on whether the three smaller parties (FDP, BSW, Left) make it into parliament
    • Timeline: First projections based on exit polls after 6 pm CET on February 23 preliminary results from 6 30 pm CET on and then updated during the night/early morning
    • Coalition formation: Coalition negotiations might take several weeks as they require some difficult compromises 

    Coalition options

    • Base case – two party grand coalition: Polls suggest that the Conservatives could form a coalition government with either the SPD or the Greens A CDU/CSU SPD coalition appears more likely as polls suggest it could achieve a more comfortable majority On defence/foreign policy, there are significant policy overlaps with the Greens
    • Surprise – three party centrist coalition – “Kenya”(CDU/CSU-SPD-Greens) or “Germany”(CDU/CSU-SPD-FDP). On the one hand, a three party coalition could prove to be rather fractious and result in fraught policy compromises On the other hand, a “ coalition might increase the chance of a meaningful shift in fiscal policy if centrist parties kept the two thirds majority 

    What’s are the risks?

    • Downside risk – blocking minority of fringe parties (AfD & BSW): This would imply that constitutional change for setting up an off budget defense/infrastructure fund/debt brake reform is contingent on concessions to the fringe parties or not possible at all
    • Absolute tail risk – AfD as part of the government: Extremely high bar to be crossed all parties credibly rule out that option ex ante

    Potential impact on policies

    • Fiscal policy pivot towards higher spending – The perceived erosion of Europe’s security architecture makes it likely for the new government to swiftly agree on funding higher defence spending outside the debt brake. The fiscal impulse could be material However, the short term growth multiplier should not be overestimated, with the bulk of military procurement going abroad Debt brake reform for the Länder might provide additional and more immediate fiscal stimulus from 2026 onwards
    • Compromises on structural reforms – A CDU/CSU led coalition could potentially agree on a step by step reduction of the corporate tax burden, streamlined administrative processes, and measures to lower electricity prices, but no major pension reform 

    How much of the election is already factored into our forecasts?

    • For 2025, Deutsche Bank expects the economy to grow by 0.5%. The bank’s 2026 forecast is predicated on a meaningful probability that the next government relaxes the constitution debt brake to allow more debt financed investment. Without it, the status quo would imply structural stagnation

    2. Backround

    • A deeply divided coalition government in Berlin has failed to take the hard decisions needed to turn Germany’s economy around. The snap election on Feb 23. is therefore a chance for voters to deliver a stronger government capable of tackling the country’s pressing problems.
    • The main danger is that the poll yields another fragmented parliament. This could leave a power vacuum at the heart of Europe during a particularly challenging time and, eventually, result in a government that is too weak to implement much-needed reform. Furthermore, much of the proposed fiscal stimulus emanating out of Germany has already been priced into European stocks, so a “tail” outcome tomorrow could have a major adverse impact on European markets.
    • The greater the number of parties that enter parliament, the higher the risk that the center-right Christian Democratic Union (CDU)/Christian Social Union (CSU) alliance and the Social Democratic Party (SPD) have too few seats to form a grand coalition.
    • Policy uncertainty is already through the roof in Germany and this is weighing on growth as companies delay investment decisions. The more time it takes to form a coalition, the greater the delay in kickstarting an economic recovery.
    • The duration of coalition talks will also show how willing parties are to overcome their differences to tackle urgent issues such as structurally weak growth, a potential US-Russia deal on Ukraine and a transatlantic trade war.
    • Polling stations will close on Sunday at 6:00 pm Berlin time. Sufficient clarity about the election results should emerge during the evening. The CDU/CSU alliance is set to win, according to opinion polls. The far-right Alternative for Germany (AfD) would have to close a 10-percentage-point gap to defeat the center-right parties.  
    • Barring any surprises, CDU leader Friedrich Merz will become the next chancellor. However, the CDU/CSU alliance is unlikely to have enough seats to lead a cabinet on its own, which means it will have to form a coalition with other parties.
    • Merz has repeatedly declared he will not cut a deal with the AfD. The Free Democratic Party (FDP) isn’t seen as a suitable partner, since it will probably not have enough seats to make a difference — it might even struggle to make it into the Bundestag (national parliament).
    • The most obvious option for Merz is to form a coalition with either the SPD, the Greens, or both. The ideological distance between the Greens and the CDU on social issues such as migration remains large, which means it might be easier for him to cut a deal with the social democrats.
    • Still, much will depend on the distribution of seats in parliament. The more parties enter the Bundestag, the higher the risk that the CDU/CSU and the SPD might not have enough seats to form a government by themselves.

    3. Timeline:

    Timeline for the Bundestag election 2025: What will happen from voting until government formation

    4. Polls

    Germany heading towards new leadership? Conservatives are leading the polls, while the right wing AfD and Left gained further support

    Accuracy of polls seems reasonably good: Far right AfD seems not to be systematically underestimated in polls

    What is driving voters’ decisions? State of the economy is more important for voters’ decisions than immigration

    5. Electoral System

    Germany‘s mixed electoral system demystified: Peculiarities of the voting system might have an impact on the election outcome

    Postal voting has started two weeks ago: Increasingly popular option among German voters

    6. Coalition Formation

    Zooming in on coalition negotiations: Coalition agreement in spring might provide psychological boost to confidence

    Preview of potential coalition options: Conservatives likely to lead the next government according to current polls

    7. Policy Outcomes

    CDU/CSU – SPD or CDU/CSU – Green coalition – agree to disagree? Where do ex ante policy stances differ?

    Potential impact of CDU/CSU policies on the economy: More supply-side policies, but still fiscal hawkishness

    Economic policy implications: Fiscal policy pivoting towards higher defence spending

    The fiscal defence policy nexus: Smaller parties not necessarily standing in the way of constitutional reform

    Constitutional majorities and fiscal regime change: The more fragmentation, the less likely a fiscal regime shift

    Zeitenwende 2.0 moment in defence spending: Pivot towards higher defence spending early in the next parliamentary term

    Fiscal regime change – a cheat sheet for potential options: Policy options, needed majorities and potential timelines

    Germany’s stance on joint EU borrowing: How to fund the VdL 2.0 policy priorities

    8. Economic Outlook

    How much of the election outcome is already factored into DB’s forecasts? A meaningful relaxation of the debt brake is not part of the 2025 baseline forecasts

    9. Much-Needed Reforms

    • A stable coalition would also strengthen Germany’s ability to respond to a long list of pressing economic challenges and thus, support growth in the medium and long term. Germany has to improve its productivity and revive competitiveness while at the same time deal with the threat of high US tariffs and the requirement to boost defense spending.  
    • What all these challenges have in common is that they will likely end up costing a lot of money. The good news is that, in principle, Germany would have the necessary fiscal leeway. According to our estimates, it could raise public investment spending by 1% of GDP in the coming years and the debt-to-GDP ratio would still fall until 2040 and settle below the 60% mark.
    • One main thing to watch is whether the parties that favor a reform of the very strict national fiscal rule, the so-called debt brake, will have the necessary two-third majority in parliament to deliver the required constitutional revision. Conversely, a very fragmented parliament would undermine the ability of the centrist parties to revise the current borrowing limit.

    10. Tail Risks

    What’s in the tails? Surprises, downside and extreme tail risks

    Scenarios for a blocking minority of the far right AfD: Would require significant shift of approval rates and no small party entering the Bundestag

    11. Challenges to Forming a Government

    • The country’s political fragmentation means that negotiations to form a coalition might not be straightforward. CDU’s Merz has shown during the campaign that he wants to move more to the right on migration.
    • That’s further away from the SPD’s stance and in order to make any deal with Merz more palatable to its electorate, the social democrats will try to extract as much as possible (for instance on economic issues) during negotiations.
    • Recent elections show coalition negotiations have taken a substantially long time to wrap up. However, the bleak economic situation and uncertain geopolitics might provide an incentive for parties to accelerate discussions. In fact, how long it takes to form a government will indicate how willing parties are to work together to deal with Germany’s impending challenges.
    • A minority government or new elections would be the available options if coalition negotiations were to fail. However, parties would likely try to avoid a repeat poll given voters might punish them for failing to form a government.

    12. Election of the Federal Chancellor: Usually just a formality

    More in the full presentation available to pro subscribers.

    Tyler Durden
    Sat, 02/22/2025 – 18:05

  • "We Created A Monster With Zelensky": White House Isn't Backing Down In Growing Rift
    “We Created A Monster With Zelensky”: White House Isn’t Backing Down In Growing Rift

    Axios has released a devastating report full of quotes from Trump admin officials which strongly suggests the growing rift with Zelensky is only about to worsen. 

    The Ukrainian leader is seen as having overstepped by the White House. A US administration official involved in peace negotiations with Russia bluntly told the publication that “Zelensky is an actor who committed a common mistake of theater kids: He started to think he’s the character he plays on TV.“ 

    “Yes, he has been brave and stood up to Russia. But he would be six feet under if it wasn’t for the millions we spent, and he needs to exit stage right with all the drama,” the unidentified official said. This strongly suggests that Trump is pursuing a full political transition in Ukraine at this point.

    Photograph/poster obtained by Le Monde depicting Zelensky’s early young acting years.

    Another official, also involved in negotiations described that “We created a monster with Zelensky,” and that “these Trump-deranged Europeans who won’t send troops are giving him terrible advice.”

    Speaking of which, one Saturday headline has revealed the European Union is still seeking ways to seize part of Russa’s frozen $280 billion in assets held abroad. So while Washington under Trump is trying to strike peace and compromise, the Europeans look content to try and sabotage what they already see as a ‘bad deal’ to end the war.

    Yet another US official was quoted in Axios as reviewing that “In the course of a week, Zelensky rebuffed President Trump’s treasury secretary, his secretary of state and his vice president, all before moving on to personally insulting President Trump in the press.“

    The unnamed official followed with, “What did Zelensky think was going to happen?”

    Meanwhile a mineral deal is said to be close, with some Friday night headlines claiming a final deal was ‘hours’ away – but Zelensky’s office has said it’s still mulling over the first draft. “President Trump is obviously very frustrated right now with President Zelensky,” National Security Advisor Mike Waltz underscored in Thursday comments.

    The same Axios report has summarized what it calls Zelensky’s five moves that set off Trump in the following…

    Six administration officials tell Axios that during the past nine days there were five incidents that angered Trump, Vice President Vance, Secretary of State Marco Rubio and Waltz. Taken together, one administration official said, Zelensky “showed how not to do the ‘Art of the Deal’ ” when it came to courting Trump’s support:

    • Feb. 12: Treasury Secretary Scott Bessent met Zelensky in Kyiv to offer a proposal that would give the U.S. access to Ukrainian mineral rights in return for de facto U.S. protection. Trump later told reporters Zelensky was “rude” and delayed his meeting with Bessent because he slept in.
    • Feb. 14: At the Munich Security Conference, Vance and Rubio met Zelensky to get his approval for the mineral rights deal. But, the officials said, Zelensky surprised the Americans by saying he didn’t have the authority to unilaterally approve it without parliament.
    • Feb. 15: Zelensky publicly rejected the offer at the conference. White House sources noted that his remarks to reporters — that the deal was “not in the interests of a sovereign Ukraine” — were markedly different from more positive-sounding comments he’d made on X the day before.
    • Feb. 18: As Rubio, Waltz and presidential envoy Steve Witkoff sat down with Russian negotiators in Saudi Arabia to talk peace, Zelensky criticized the meeting for occurring without Ukraine at the table. An angry Trump then lashed out at Zelensky at a Mar-a-Lago press conference, falsely suggesting Zelensky had started the war with Russia and had an approval rating of only 4%.
    • Feb. 19: Zelensky fired back, saying the U.S. president “lives in a disinformation space.” Trump then ratcheted up the pressure by posting on Truth Social that Zelensky, a former actor, was a “modestly successful comedian” who has become a “dictator without elections.” Trump has refused to criticize Putin as a dictator.

    * * *

    The Washington Post is also asking on Saturday: Can Zelensky salvage his relationship with Trump and save Ukraine? This after Trump accused Zelensky of being a ‘dictator’ this week, given his refusal to hold new elections, citing martial law – and after banning multiple political parties seen as too ‘pro-Russian’…

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

    Given this week’s anti-Zelensky rhetoric coming out of the US administration, the European allies are worried Trump will ‘give away more’ amid ongoing strong diplomatic engagement with Moscow (after already declaring that Ukraine won’t become a NATO member). Of course, Kiev is fearful of this too, which is why Zelensky’s advisors are imploring him to stop the rhetorical tit-for-tat and be silent on answering every ‘provocation’ come from the White House. Next week will be interesting to see where all of this goes.

    Tyler Durden
    Sat, 02/22/2025 – 17:30

  • Trump & Russia: Is This Good Or Bad For Markets?
    Trump & Russia: Is This Good Or Bad For Markets?

    Authored by Russell Clark via Capital Flows & Asset Markets blog,

    Trump has done exactly what he said he was going to do, and negotiated with Russia directly to end the war in Ukraine. The Trump deal with Russia could be very bullish for Europe, as it could see Russian sanctions lifted, and oil and gas prices fall. This would be particularly bullish for Germany, as it has suffered from high energy prices. Although far less than in 2022, European energy prices are far higher than in the US or Russia.

    Likewise, increased food supply from Ukraine and Russia could be bring down food prices – which would be bullish.

    After decades of stagnation, Europe has broken out of its range, even as the Trump deal with Putin would seemingly be a negative.

    It is easy to argue the opposite way. Generally speaking, when a dictator has succeeded in using force to increase their power and prestige, it is difficult for them to give up the gun, and the Baltics, like Ukraine used to be part of the Soviet Union. It is hard to find any equity weakness in this area. MSCI Baltics has ripped.

    My best guess for all this bullishness would be the likelihood that the German government is going to abandon is fiscal austerity, and move to a more US style fiscal expansion – which should be good for equities and bad for bonds. That is Trump abandoning Ukraine has forced Germany to abandon austerity – and that is bullish.

    The more interesting question is whether this is good for China or bad for China? On first blush, the market has decided it good. To be fair, for the Chinese tech sector we have also seen the emergence of DeepSeek and the rehabilitation of Jack Ma, and so the Hang Seng Tech index has doubled in 6 months.

    On a more geo-political view, the implication is that President Trump is moving to a sphere of influence model – where Europe has to deal with Russia and its neighbours, while the US deals with its neighbours how it sees fit. The logic then is that China is free to deal with its neighbours how it sees fit too – and will not suffer consequences. In other words, China can harass and absorb Taiwan with impunity. For investors in Chinese assets this is bullish as you can now discount the risk of sanctions – which is what hurt foreign investors into Russia assets. Gazprom London listing is an example of this risk.

    If Kissinger, who talked to Trump extensively during his first time, was still alive, then I would say this was unequivocally bad for China. “How so?” you might ask? Kissinger was instrumental in the ping pong diplomacy of the 1970s, that saw China and the US establish diplomatic relationships. For those you who learn history from popular culture (I learnt more about the royal family from “The Crown” that I ever learnt from any history class), Forrest Gump playing table tennis in China was basically seen as a way for the US to reach out to China. Kissinger was a prime mover in this. The driver of this détente was to isolate USSR- and from a economic point of view, betting on China versus Russia from this point of time made you a sure fire winner.

    First of all there are two things to remember – China and Russia will always be important nations, by dint of the their population and land mass respectively. When they are aligned, they are very difficult to defeat, as we have seen in Ukraine, where Chinese technology has kept Russia in the game. But China and Russia are not natural allies – for most of their history they have faced off against each other. Hard to believe now, but the Soviet Union was not even that supportive of the Chinese Communist Party in its civil war for control of China, at least until the end of the Second World War. Prior to this, China/Russian relations has been defined by battle for control of the far east. If the US can bring Russia into the fold, then China become extremely exposed on oil imports, just at the US was in the 1970s.

    China like the US in the 1970s is now heavily reliant on the Middle East for its oil. Bringing Russia into the fold would make energy a choke point for the Chinese economy.

    Kissinger is no longer with us – so I don’t know if this is part of the plan. But Trump has always signalled that China is the true enemy of the US, not Russia. And a secure Russia would probably go along with a strategy that weakened China, if only to prove the importance of Russia to both the US and China. The thing is Kissinger had a clear aim of avoiding an open clash between the USSR and USA. Trumps aims tend to be less clear, at least to me. If it is the Kissinger line of thinking, then the current rally in Chinese tech is clear trap. But if we are moving to sphere of influence, and deal with China, then perhaps they are a buy. I find geo-politics difficult to read – but all I know is that government spending is going to go up globally – and that is bad for bonds. Japanese bonds continue to be weak.

    Politics is a funny thing I have found. It is not always clear how politicians are going to behave – which I why I suspect voters loved the move to free markets in the 1980s and 1990s – it was a move away from domineering politicians. Having fallen out of love with free markets – we are moving back to domineering politicians. Markets think a deal with Russia is bad for oil prices and good for China – but I could see the reverse being true.

    Tyler Durden
    Sat, 02/22/2025 – 16:55

  • Netanyahu Vows Revenge On Hamas for Returning Wrong Body: 'Unspeakably Cynical'
    Netanyahu Vows Revenge On Hamas for Returning Wrong Body: ‘Unspeakably Cynical’

    One of the four deceased hostages handed over by Hamas on Thursday was the wrong body, according to an Israeli government forensics investigation. As part of phase one of the ceasefire deal several rounds of hostage releases have occurred successfully.

    Hamas agreed to release the body of slain hostage Shiri Bibas and her two young deceased children. “Following the identification process at the Institute of Forensic Medicine, we received this morning the news we had dreaded — our Shiri was murdered in captivity and has now returned home to her sons, husband, sister, and all her family for rest,” the family said in an initial statement.

    However, outrage in Israel has ensued after it was revealed that the casket marked with Shiri’s remains was actually an unidentified deceased person.

    Via Sky News, Israeli media

    Israeli Prime Minister Benjamin Netanyahu said Friday that Israel would make Hamas pay for failing to return Shiri’s remains.

    “We will act with determination to bring Shiri home along with all our hostages — both living and dead — and ensure Hamas pays the full price for this cruel and evil violation of the agreement,” he said in a video statement.

    Israel says the body is likely that of an unidentified Palestinian woman, after the two young sons, Kfir and Ariel were handed over and identified.

    Netanyahu blasted Hamas for acting “in an unspeakably cynical manner” by placing the body of a Gaza woman in the coffin instead of Shiri. Her husband Yarden had also been kidnapped from a kibbutz in southern Israel on Oct.7 – but was released in the first exchange of this current truce deal.

    NBC details, “Hamas leader Mahmoud Mardawi told media outlet Al Arabiya that Bibas’ remains had now been returned, and the International Red Cross said that it has received a set of human remains and transferred them to Israeli officials.”

    According to a statement: 

    In announcing that testing showed the first remains were not that of Shiri Bibas, the IDF said the remains also did not match any other hostage held by Hamas. “It is an anonymous body without identification,” it said.

    Hamas has not commented on the charge, but did follow through with the agreed upon Saturday exchange, which saw the release of the last six living Israeli hostages in return for Israel freeing nearly 500 Palestinians from Israeli prisons.

    The ceasefire will ender phase two, but it’s anything but certain whether the truce will hold, given the growing accusations. Hamas has said the Israel has killed some 100 Palestinians even while the ceasefire was on.

    Tyler Durden
    Sat, 02/22/2025 – 16:20

  • Kash Patel Is Already Making Huge Changes At The FBI
    Kash Patel Is Already Making Huge Changes At The FBI

    Authored by Matt Margolis via PJMedia.com,

    Newly confirmed FBI Director Kash Patel is on fire. 

    After his swearing-in, he gave a not-so-subtle speech, showing that he’s ready to handle the media’s smears.

    “I know the media’s in here, and if you have a target, that target’s right here,” he said, pointing to himself. 

    “It’s not the men and women at the FBI.” 

    “You’ve written everything you possibly can about me that’s fake, malicious, slanderous, and defamatory,” he continued. 

    “Keep it coming — bring it on. But leave the men and women, the FBI out of it. They deserve better.”

    He also promised that a new day at the FBI has started. 

    “I promise you the following, there will be accountability within the FBI and outside of the FBI, and we will do it through rigorous constitutional oversight — starting this weekend.”

    Kash continued, “I am living the American dream, and anyone that thinks the American dream is dead, just look right here. You’re talking to a first-generation Indian kid who’s about to lead the law enforcement community, the greatest nation on God’s green earth.”

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

    He wasted no time turning his bold rhetoric into action. Following his blistering speech on Friday, he ordered the transfer of 1,500 agents and staff from the bureau’s Washington, D.C., headquarters to field offices across the country. 

    Roughly 1,000 will be sent to high-crime cities that the Trump administration designated, where they can focus on fighting crime instead of political games. Another 500 will be reassigned to Huntsville, Ala., which is widely seen as D.C.’s version of exile.

    This is just Patel’s first move, and if any Democrats want to shed a bunch of tears over the move, they can, but they can’t claim they shouldn’t have expected it. As the Washington Post reported, Patel made this plan known during his confirmation hearings.

    Patel, in his 2023 book, vowed to shutter the Hoover headquarters building and turn it into a “museum to the Deep State.” He’s made similar recommendations at his confirmation hearing and in appearances on conservative TV news shows.

    “One of my biggest personal recommendations is … you send those 7,000 agents in the headquarters building down range to chase down rapists, to chase down murderers, to chase down drug traffickers and let the cops be cops on the streets across America,” Patel said during an August appearance on “Stinchfiled Tonight.”

    During his confirmation hearing last month, Patel was asked about his previous comments suggesting he wanted the FBI’s headquarters emptied out and shuttered. His responses did not directly address whether he would actually shut the building down or seek to transform it into a museum, but suggested that he believes the FBI’s workforce in Washington should go out into the country.

    “A third of the workforce for the FBI works in Washington, D.C.,” Patel said. “I am fully committed to having that workforce go out into the interior of the country, where I live west of the Mississippi, and work with sheriff’s departments and local officers.”

    It’s day one and he’s already making changes. It’s glorious to see.

    *  *  *

    You can support ZeroHedge by snagging one of these high-quality, sharp, kickass ZeroHedge Multitools. On sale until Monday!

    Satisfaction guaranteed or your money back.

    *  *  *

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

    Tyler Durden
    Sat, 02/22/2025 – 15:45

  • Pope Francis's Condition Worsens After 'Respiratory Crisis': Vatican
    Pope Francis’s Condition Worsens After ‘Respiratory Crisis’: Vatican

    Pope Francis has spent more than eight days at a hospital in Rome, battling pneumonia in both lungs, and this Sunday he’s expected to miss leading the mass and prayers at St. Peter’s for the second weekend in a row.

    Prior Friday statements suggested his condition ‘slightly improved’ – but by Saturday the situation has become more dire. Pope Francis “is more unwell than yesterday,” the Vatican said in a fresh statement, revealing he’s suffered a “prolonged asthma-like respiratory crisis.”

    The new statement says the prognosis for him “remains guarded” – after the 88-year old Pontiff was hospitalized on Feb.14 for worsening bronchitis leading to pneumonia. He is being administered high-flow oxygen and remains in critical condition, and received a blood transfusion.

    Via Associated Press

    As of Thursday he was said to be awake, eating, and doing some work from his hospital bed, but pneumonia in the elderly can be devastating, and despite moments of strength, breathing problems can quickly take a downward turn. Sepsis has also reportedly remained a concern in Francis’ fragile state.

    The severity of the episode has led to days speculation over possible resignation:

    In a memoir, Life: My Story Through History, published last year, Francis wrote, “I think that the Petrine ministry is ‘ad vitam’ [‘for life’] and therefore I see no conditions for a resignation”, only to add in the next sentence, “things would change if a serious physical impediment were to arise”.

    As the pontiff enters his eighth day in hospital on Friday, suffering from pneumonia in both lungs, Vatican watchers are wondering just how serious Francis, 88, thinks that physical impediment has to be.

    On Thursday evening, the Vatican said that Francis’s condition was “slightly improving”, adding that his heart and circulation were in good shape and that he was free of fever and able to work.

    However, in an interview on Italian radio, the senior Vatican cardinal Gianfranco Ravasi broached the topic on everyone’s mind and claimed: “I think he could [resign] because he is a person who, from this point of view, is quite decisive in his choices.”

    This is the first time in his pontificate that the issue of resignation has been raised by a senior Cardinal. However, if he exits the hospital soon this is unlikely, as Pope’s traditionally serve till death. It is extremely rare for a Pope to step down, with his predecessor Pope Benedict XVI having been one of the exceptions to the historic rule.

    Newsweek commented, “The possibility of resignation resurfaced when Cardinal Gianfranco Ravasi noted that if Francis’ ability to engage directly with people was compromised, he might consider stepping down.”

    Reports of a blood transfusion needed:

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

    Conservative and traditional Roman Catholics have been critics of Francis’ leadership, saying he represents a liberalizing trend in church life. For example, in 2023 he issued a document allowing for priests and bishops to conduct blessing ceremonies over same-sex couples. Amid fierce controversy and confusion among conservative Catholics, he later claimed the blessing is over the ‘individuals and not the union’ – in a bit of dubious Jesuitical casuistry. 

    Liberals have tended to hail him as being open to the world and a voice of ‘progress’ – while some traditionalists might be looking forward to the day a new pope is elected, but it remains that an even more liberal pope could be the successor. 

    Tyler Durden
    Sat, 02/22/2025 – 15:10

  • California's High Speed Rail To Face Audit, US Transportation Chief Says
    California’s High Speed Rail To Face Audit, US Transportation Chief Says

    Authored by Beige Luciano-Adams via The Epoch Times (emphasis ours),

    LOS ANGELES—Transportation Secretary Sean Duffy announced he would direct the Federal Rail Administration (FRA) to conduct a compliance review of funding allocated to California’s long-embattled high-speed rail—and determine whether the project is worthy of continued federal investment.

    Secretary of Transportation Sean Duffy speaks during a press conference at Union Station in downtown Los Angeles on Feb. 20, 2025. Patrick T. Fallon/AFP via Getty Images

    “President [Donald] Trump has thought about this project,” Duffy said Feb. 20 during a press conference with elected officials at Los Angeles’s historic Union Station. “I think he was very kind when he said this project has been mismanaged. I would agree.”

    Duffy said California’s high-speed rail has so far consumed nearly $16 billion in 16 years, with almost nothing to show for it, while timelines and budgets have mushroomed, more than tripling since the project was introduced in 2008. The state rail authority reports it has spent $13 billion from July 2006 through June 2024, while recent estimates for completion run as high as $130 billion.

    The rail authority’s inspector general in a Feb. 3 report anticipated further delays and a $6.5-billon funding gap in the 171-mile stretch currently under construction from Bakersfield to Merced in the state’s Central Valley region—an interior segment of the envisioned 400-mile track from Los Angeles to San Francisco.

    Duffy said he would direct the FRA to focus on the $4 billion promised by the Biden administration to fund two construction projects planned for this segment.

    The investigation, which will review how federal money has been spent and whether the state is in compliance with federal agreements, will help determine whether billions in taxpayer dollars should remain committed, Duffy said.

    “We want to make sure the California taxpayer understands that even though they might be excited about this project, [it’s] not going to happen,” Duffy said. “There is no timeline in which you’re going to have a high-speed rail that goes from L.A. to San Francisco.”

    If California wants to continue to fund the rail, Duffy said, it can do so. “But we in the Trump administration are going to take a look at whether this project is worthy of continual investment.”

    Elected leaders were interrupted by a small but boisterous chorus of protesters.

    “The California High-Speed Rail is a long-term project that should not be obstructed by oligarchs who only care about profits in the short term,” Jeff Zhang, 24, told The Epoch Times, suggesting delays are just “part of the cost” of the trial and error involved in building what will be the first major bullet train project in the country.

    Protesters hold signs at Union Station in downtown Los Angeles on Feb. 20, 2025. Patrick T. Fallon/AFP via Getty Images

    Protesters at Union Station in Los Angeles on Feb. 20, 2025. Patrick T. Fallon/AFP via Getty Images

    “This is nothing more than a sham investigation,” Eli Lipmann, executive director of transit advocacy organization Move LA, told The Epoch Times. “Yes, the project is behind,” but, he said, the project has created jobs and will play an integral role in future infrastructure.

    Pausing funding for high-speed rail, he suggested, will also put other infrastructure projects in jeopardy.

    “L.A. County has almost $1.2 billion in grants—signed, sealed, and delivered—that we need to ensure are coming, everything from better bus connections to less traffic on roads to rail projects like the Purple Line, which I took here today.”

    Pointing to a recent Emmerson poll showing 55 percent of Californians still support the project, Lipmann said the federal government should be accelerating, rather than pausing, building high-quality transportation.

    “What are they going to do during the investigation? They’re not going to give California money, they’re going to put a pause on it. And then they’re going to say this project is over budget,” Lipmann said.

    Rep. Doug LaMalfa (R-Richvale) had a different view. The rail’s runaway costs, he suggested during the press conference, would be better spent on agriculture, water infrastructure, and other “things people need.”

    LaMalfa said “dribs and drabs” of $4 billion from the feds would never add up to the $110 billion needed to make it to the finish line.

    “It was a nice thought,” he said. “It’s failed.”

    Secretary of Transportation Sean Duffy speaks at Union Station on Feb. 20, 2025. Patrick T. Fallon/AFP via Getty Images

    Rep. Kevin Kiley (R-Rocklin) said the project symbolizes the “decline of modern California” under current leadership.

    Kiley told The Epoch Times his primary focus is to preclude the possibility that a future administration will pick up the mantle. “Once we cut off the federal funding, we can kill the project and focus on things that will actually improve people’s lives.”

    Republican leaders are also taking aim at the state budget, including with efforts to redirect the $1 billion California spends each year on the rail project to wildfire prevention and water storage.

    Former state lawmaker and current Rep. Vince Fong (R-Bakersfield) had introduced such a bill, which is now being carried by California Assemblywoman Alexandra Macedo (R-Tulare).

    “There have been eight business plans, and the inspector general has outlined all the structural mismanagement,” Fong told The Epoch Times. “So we have all the data we need. It’s just, does the governor and his state legislator—the ruling party—do they have the political will to stop this project and put it into other things?”

    While announcing the review, Duffy also suggested potential fraud and waste was California’s problem, and an audit should be led by Gov. Gavin Newsom.

    “I can’t make decisions for the great state of California, but we do have to be responsible for the tax dollars that are spent from the federal government,” he said.

    The bullet train was among a flurry of targets Trump took aim at when he assumed office last month, promising on social media that an investigation would be forthcoming.

    Duffy pointed to high-speed rail projects with “great timelines” and “great budgets” currently being proposed to the Federal Rail Administration that he said have a realistic shot at completion—such as the privately funded Brightline West, which will connect Los Angeles and Las Vegas and currently and is due to finish in a few years.

    “That seems like a project that is worthy of investment,” he said.

    Transportation chief Sean Duffy speaks at Union Station in downtown Los Angeles on Feb. 20, 2025. Patrick T. Fallon/AFP via Getty Images

    Protesters hold signs during the press conference at Union Station on Feb. 20, 2025. Beige Luciano-Adams/The Epoch Times

    Several protesters said California has fallen behind other developed nations in public transportation and infrastructure.

    “That’s a problem,” said one, of the delays and bleeding costs. “And I also think it needs to get done. We’ve invested so much already. … It’s not just for California, it’s for the whole country.”

    Former Rep. Michelle Steel dismissed any parallels to countries such as Spain, France, China, and Japan, where bullet train projects have succeeded.

    “I was raised in Japan. It works in Japan because you can get off from the highway public transportation and you can hop on, you can go to the city. For this one costing $128 or $140 billion, going nowhere to nowhere, we don’t need this kind of wasting taxpayers’ money.”

    Marc Joffe, a visiting fellow at the California Policy Center and a longtime critic of California’s high-speed rail, in a conversation with The Epoch Times pointed to the state’s uniquely challenging business climate.

    “Lots of high-speed rails in other countries were built a long time ago. China built an enormous amount recently, but they don’t have the private property protections and labor rules like we have here.

    “And I don’t think anyone wants to use Chinese standards for property acquisition, or labor.”

    State Sen. Shannon Grove (R-Bakersfield), meanwhile, suggested the project has benefited from plenty of preferential treatment and fast-tracking, noting its exemption from California Environmental Quality Act (CEQA) review.

    California’s High Speed Rail Project announced the completion of a section of bridgework in Madera County in May 2023, as the first major milestone of the project’s completion. California High Speed Rail Authority

    “It’s proven that the Central Valley is sinking, and they’re building this monstrosity on top of the sinking valley with all that weight of concrete and rail structure,” she told The Epoch Times.

    Referring to one part of the project’s Central Valley segment, Grove said:

    “You can walk across this thing in 10 minutes, and they spent $13 billion on it. It’s ridiculous.”

    In response to the press conference, the rail authority said on social media platform X on Thursday, “We welcome this investigation & look forward to working with federal partners.”

    “CA High-Speed Rail has been audited over 100 [times], every dollar is accounted for & progress is real—50 structures built, 14,600 jobs created & 171 miles under construction.”

    Tyler Durden
    Sat, 02/22/2025 – 14:35

  • Berkshire Cash Hits All-Time High $334BN Even After Paying Record $27BN In Taxes: Shareholder Letter Highlights
    Berkshire Cash Hits All-Time High $334BN Even After Paying Record $27BN In Taxes: Shareholder Letter Highlights

    One of the longest running traditions in modern finance is that every year, one Saturday morning in late February, the world’s financial class – from refined professionals to rancid amateurs – sit down as they have for the past 66 or so years – for an hour and read the latest Berkshire annual letter written by Warren Buffett in which the man seen by many as the world’s greatest investor writes down his reflections, observations, aphorisms and other thoughts for the past year, which are closely parsed and analyzed for insight into what he may do next, what he thinks of the current economy and market climate, or simply for insights into how to become a better investor. And with Buffett’s long-time investing partner, Charlie Munger, having one year ago passed away just shy of his 100th birthday and Buffett himself now 94, every such letter may well be the last, which is why – even though their informational content and signal-to-noise ratio has been severely diluted over the year – they are read just as obsessively as they were when Buffett was in his prime.

    Which brings us to the latest Berkshire annual report and accompanying letter, which – at 13 pages clocks in three pages less than last year’s edition and one of the shortest ever – was somewhat of a downer as the Omaha billionaire said that even though Berkshire did “better than I expected”, a majority, or 53% of Berkshire’s 189 operating businesses, reported a decline in earnings. The offset? The company’s staggering cash pile (more on that in a second) which is invested in T-Bills and which generates about a 4.5% in interest income: “We were aided by a predictable large gain in investment income as Treasury Bill yields improved and we substantially increased our holdings of these highly-liquid short-term securities.”

    Buffett also said that Berkshire’s insurance business also delivered a major increase in earnings, led by the performance of GEICO, whose “2024 improvement was spectacular”, while property-casualty insurance pricing strengthened during 2024, “reflecting a major increase in damage from convective storms.” GEICO was also the main contributor to Berkshire’s insurance results, with its pretax underwriting earnings more than doubling to $7.8 billion in 2024. The auto insurer successfully added new clients in the second half, reversing a years-long trend that previously weighed on its performance.

    Buffett also exposed his liberal roots (readers may forget that the folksy Omaha billionaire was one of the loudest and most virtue-signaling Hillary Clinton donors) saying that “climate change may have been announcing its arrival”, yet even Buffett admits that “no ‘monster’ event occurred during 2024.” That said, “someday, any day, a truly staggering insurance loss will occur – and there is no guarantee that there will be only one per annum.” Additionally, Berkshire’s railroad and utility operations, the conglomerate’s largest businesses outside of insurance, also improved their aggregate earnings. 

    All told, Berkshire recorded operating earnings of $14.5 billion in Q4, up 71% from $8.5 billion a year ago, as higher interest rates lifted the conglomerate’s investment income and, while Berkshire’s insurance business scored a 48% jump in insurance investment income, to $4.1 billion, amid higher interest rates. Earnings also got a significant boost from a strong recovery in the firm’s insurance underwriting business, with operating earnings quadrupling over the period to $3.4 billion.

    All told, in 2024 Berkshire earned $47.4 billion in operating earnings, the third straight record operating profit (Buffett will never tire of emphasizing this measure “rather than GAAP-mandated earnings”.) Here’s a breakdown of the 2023-24 earnings as Berkshire reported them. 

    That said, Berkshire said it expects pretax losses of approximately $1.3 billion from the wildfires that ravaged entire parts of Los Angeles last month. Net income for the full year totaled $89 billion, including gains from Berkshire’s common stock investments such as Apple and American Express; for Q4, Berkshire reported that net income more than doubled to $37.574 billion, or $26,043 per Class A share, from $18.8 billion, or $12,355 per share, a year earlier.

    Meanwhile, the otherwise acquisitive Berkshire refused to pursue any M&A for yet another quarter, and Buffett’s cash hoard grew for the 10th quarter in a row, to a record $334.2 billion at the end of 2024, as the billionaire continued to refrain from major stock transactions in the fourth quarter.

    Still, Buffett said his company will continue to prefer owning equities, primarily U.S. stocks, over cash, adding Berkshire is “not finished.”

    Going back to Q4, the firm was a net seller of $6.7 billion worth of shares; this marked the 9th consecutive quarter in which Berkshire has been selling stock (Berkshire has not made a major purchase of an entire company since 2016), the longest stretch by far in the company’s history…

    … and even though Berkshire did not sell any Apple this quarter (having previously slashed his holdings in the smartphone giant by more than half), in Q4 Berkshire did continue to aggressively sell down its financial holdings such as BofA, Citi and Capital One, as discussed in our breakdown of the company’s 13F last week.

    “Often, nothing looks compelling; very infrequently we find ourselves knee-deep in opportunities,” Buffett wrote.

    And, for the second straight quarter, Buffett also did not find Berkshire stock itself to be attractive, buying back zero shares in Q4, the same amount as in Q3. Berkshire’s market capitalization has been hovering above $1 trillion since late last month, and according to Buffett it is perfectly fairly valued here. 

    The company’s stock price has risen 15% in the last year, while the S&P 500 rose 18%. Over the last decade, Berkshire’s stock price has risen 225%, while the index rose 241% including dividends and 185% excluding dividends, Reuters data show.

    “They will have lots of buying opportunities but Berkshire will never be the large double-digit compounder it had been,” said Bill Smead, chief investment office at Smead Capital Management in Phoenix. “Berkshire will be a solid way of participating in owning major companies, and avoiding trouble.”

    The lack of any attractive mergers is a problem that Buffett has been staring down for almost a decade as the growth of Berkshire’s operations and cash levels have compounded. In his annual letter to shareholders, Buffett addressed concerns that Berkshire is hoarding cash and reminded investors that the great majority of the firm’s money remains invested in equities, both public and private, and that this won’t change.

    “Berkshire will never prefer ownership of cash-equivalent assets over the ownership of good businesses, whether controlled or only partially owned,” Buffett said in the letter.

    Buffett also said the value of the Berkshire’s private equity holdings increased and remained “far greater than the value of the marketable portfolio” last year. Over the same period, Berkshire’s ownership of public equities declined 23%, to $272 billion. 

    The billionaire said Berkshire could increase “over time” its long-time holdings in Itochu, Marubeni, Mitsui, Mitsubishi and Sumitomo, Japan’s five largest trading houses. While Berkshire initially intended to keep its stake below the 10% threshold, the five companies have agreed to “moderately relax the ceiling” as the conglomerate approaches it.

    The 94-year-old Buffett also acknowledged his advanced age in the letter, telling shareholders he now uses a cane and will spend less time fielding their questions at Berkshire’s annual meeting in May. He nonetheless assured shareholders they would be in good hands after he turns over the conglomerate’s reins to Vice Chairman Greg Abel, saying the 62-year-old Abel has “vividly shown his ability” to deploy capital.

    Among other topics discussed in his letter, Buffett he sent a cautionary message to Washington, lamenting how capitalism “has its faults and abuses–in certain respects more egregious now than ever,” with malfeasance by “scoundrels and promoters” in full force.

    “But even with such malfeasance – which remains in full force today – and also much deployment of capital that eventually  floundered because of brutal competition or disruptive innovation” Buffett said that “the savings of Americans has delivered a quantity and quality of output beyond the dreams of any colonist.”

    The billionaire also urged lawmakers to help preserve a stable U.S. dollar, saying “paper money can see its value evaporate if fiscal folly prevails,” and that the United States has in its history “come close to the edge.  Fixed-coupon bonds provide no protection against runaway currency.”

    The warning comes at a time of ever louder rumblings about a Mar-A-Lago accord, in which the Trump admin will stealthily devalue the dollar against all other currencies in a bid to kickstart US manufacturing, but will only succeed in sending gold and crypto to new all time highs. 

    Buffett said long-term success of Berkshire and the American economy, which he called the “American miracle,” has depended on people’s ability to participate. That, he said, is something Uncle Sam can encourage, or take away.

    “Take care of the many who, for no fault of their own, get the short straws in life,” Buffett wrote, addressing the government. “They deserve better. And never forget that we need you to maintain a stable currency and that result requires both wisdom and vigilance on your part.”

    To be sure, this was more than just some folksy aphorism. According to Cathy Seifert, a CFRA analyst who rates Berkshire “hold”, “talking about the business of America being messy was his way of addressing the political landscape and its impact on the macroeconomic environment. He is warning Washington: Be careful where you tread.”

    At the annual meeting, which tens of thousands of people attend, Buffett will spend less time on the stage where he, Abel and Berkshire Vice Chairman Ajit Jain answer shareholder questions. Buffett told Fortune magazine last month that he was still having fun and able to do a few things reasonably well, while other activities had been “eliminated or greatly minimized.”

    The meeting will also not feature the traditional movie created by Buffett’s daughter Susie.

    In discussing his age, Buffett said he talks regularly on Sundays with his 91-year-old sister Bertie, using an old-fashioned phone.

    “We cover the joys of old age and discuss such exciting topics as the relative merits of our canes,” he said. “In my case, the utility is limited to the avoidance of falling flat on my face.”

    Beside the company’s record cash hoard, there was another notable record revealed in this year’s letter: Buffett said the company has paid the US government more than $101 billion in taxes since he took the helm 60 years ago, more than any other company in history.

    Buffett’s comments come as President Donald Trump has vowed to cut corporate taxes further after slashing them to 21% during his first term in 2017. Trump wants to reduce the corporate tax rate to 15%.

    Berkshire paid $26.8 billion in taxes in 2024 alone. Buffett said that “record-shattering” figure amounts to roughly 5% of the total taxes paid by US companies last year, and excludes state taxes and taxes paid to foreign governments. 

    “If Berkshire had sent the Treasury a $1 million check every 20 minutes throughout all of 2024 – visualize 366 days and nights because 2024 was a leap year – we still would have owed the federal government a significant sum at yearend,” Buffett wrote, and what is remarkable, is that he is actually proud of enabling the unprecedented grift, corruption and inefficiency that DOGE – and so many others – have unearthed over the years. 

    Berkshire’s 2024 tax bill exceeded that of the previous five years combined, owing in part to his significant sales last year of two of its biggest holdings, Apple and Bank of America, according to Edward Jones analyst Jim Shanahan. In the letter, Buffett said that when he took control of Berkshire Hathaway company in 1965, it was a struggling textile operation that paid zero in income taxes that year, and hadn’t for much of the previous decade.

    “That sort of economic behavior may be understandable for glamorous startups, but it’s a blinking yellow light when it happens at a venerable pillar of American industry,” Buffett wrote. “Berkshire was headed for the ash can.”

    Finally, for all those who are bored to death by the above, here is an AI chatbot summary of all you need to know:

    • Summary of Berkshire Hathaway’s 2024 Annual ReportChairman’s Letter Highlights
      • Performance & Strategy: Berkshire Hathaway delivered stronger-than-expected results in 2024, despite 53% of its 189 operating businesses reporting earnings declines.
      • Insurance Business: The insurance segment, led by GEICO and property-casualty underwriting, saw a significant earnings boost. The company anticipates increased insurance risk due to climate-related disasters.
      • Investment Income: Rising Treasury yields contributed to a major gain in investment income.
      • Major Acquisitions: Increased ownership of Berkshire Hathaway Energy from 92% to 100% for $3.9 billion.
      • Mistakes & Learning: Warren Buffett candidly discusses past investment misjudgments and the importance of correcting errors swiftly.
      • Succession Planning: Greg Abel is set to take over as CEO, emphasizing a commitment to transparency and shareholder value.
      • Berkshire’s Tax Impact: The company paid a record-breaking $26.8 billion in U.S. corporate taxes in 2024.
    • Financial Performance
      • Operating Earnings: Increased to $47.4 billion in 2024 from $37.35 billion in 2023.
      • Investment Portfolio: Berkshire’s partial ownership in leading companies like Apple, American Express, and Coca-Cola was valued at $272 billion.
      • Cash Reserves: While holding a significant cash position, Buffett reinforced the company’s long-term commitment to equities, primarily in the U.S.
    • Japanese Investments
      • Expanded stakes in five Japanese trading companies: ITOCHU, Marubeni, Mitsubishi, Mitsui, and Sumitomo.
      • Current investment worth $23.5 billion, up from a $13.8 billion cost basis.
      • Plans to continue long-term investment strategy in Japan.
    • Property-Casualty Insurance & Risk
      • Berkshire’s P/C insurance sector remains its core business, benefitting from strong underwriting and investment income.
      • The company takes on large-scale risks that competitors often avoid but remains disciplined in pricing.
    • Future Outlook
      • Buffett maintains optimism about capitalism and America’s long-term growth potential.
      • The company will continue prioritizing equity investments and disciplined capital allocation.
      • Plans to deploy capital in large, high-return opportunities as they arise.
    • Shareholder Events
      • The 2025 annual shareholder meeting will take place on May 3 in Omaha, featuring a Q&A session with Buffett and Greg Abel.
      • This report reflects Buffett’s characteristic mix of financial insight, candid reflections, and long-term optimism for Berkshire Hathaway’s future.

    More in the full Berkshire shareholder letter available here.

    Tyler Durden
    Sat, 02/22/2025 – 14:00

  • DOJ Moves To Dismiss Immigration Case Against SpaceX
    DOJ Moves To Dismiss Immigration Case Against SpaceX

    The U.S. Department of Justice (DOJ) filed a motion Thursday indicating it wants to drop a lawsuit accusing SpaceX of hiring discrimination against refugees.

    The lawsuit filed by the DOJ in August 2023 alleged that SpaceX, owned by Elon Musk, violated the Immigration and Nationality Act by refusing to hire people with asylum or refugee status.

    The aerospace company countersued the DOJ later that year on constitutional grounds. 

    Last month, a federal judge in Texas granted the DOJ’s request to stay the lawsuit for 45 days, saying that the department lacks the authority to pursue its claims against SpaceX.

    Aldgra Fredly reports for The Epoch Times that, in a court filing on Thursday, the DOJ requested that the court lift the stay on the lawsuit so it could proceed with filing a notice of dismissal. It did not provide a reason for the possible dismissal.

    Both the DOJ and SpaceX did not respond to a request for comment by publication time.

    In its 2023 lawsuit, the DOJ alleged that between 2018 and 2022, SpaceX discouraged asylees and refugees from applying for jobs and failed to fairly consider their applications due to their citizenship status. The DOJ accused SpaceX of falsely asserting in job postings and public statements that export control laws hindered the company from hiring people without U.S. citizenship.

    “Under these laws, companies like SpaceX can hire asylees and refugees for the same positions they would hire U.S. citizens and lawful permanent residents,” it stated. 

    “And once hired, asylees and refugees can access export-controlled information and materials without additional government approval, just like U.S. citizens and lawful permanent residents.”

    The DOJ also stated that the Immigration and Nationality Act barred companies from discriminating against refugees and people granted asylum unless legally mandated to do so.

    SpaceX, in its countersuit, denied any wrongdoing, saying that the company has always strived to “hire the very best candidates for every job regardless of their citizenship status.”

    The company argued that due to the sensitive nature of its work—such as manufacturing technologies with military applications—it is subject to legal mandates under export control laws, including the International Traffic in Arms Regulations (ITAR), which limit whom it can employ.

    “These export control laws and regulations are critical to our national security. Moreover, violating them can have severe consequences for a company like SpaceX,” it stated, noting that failing to comply with the regulations could result in hefty fines and criminal penalties.

    On Aug. 25, 2023, Musk stated on the social media platform X that his company had been told that hiring anyone who is not a permanent U.S. resident would violate ITAR.

    “We couldn’t even hire Canadian citizens, despite Canada being part of NORAD! This is yet another case of weaponization of the DOJ for political purposes,” he stated.

    Musk was appointed by President Donald Trump earlier this year to lead the Department of Government Efficiency (DOGE), which has been tasked with reviewing federal agencies for potential downsizing and cost reductions.

    Trump had previously said that Musk would not be able to take any action without approval from the White House, and the government “won’t let him go near it” if there is a conflict of interest.

    DOGE’s work is expected to be completed by July 4, 2026, according to Trump’s Jan. 20 executive order.

    Tyler Durden
    Sat, 02/22/2025 – 13:25

  • Crash Landing: The Democratic Spin On Trump Causing Plane Accidents Collides With Reality
    Crash Landing: The Democratic Spin On Trump Causing Plane Accidents Collides With Reality

    Authored by Jonathan Turley,

    For weeks, politicians and pundits have engaged in a ghoulish effort to blame every plane accident on the Trump Administration, even accidents that occurred within the first weeks of the Trump Administration. 

    Hillary Clinton led the effort by bizarrely suggesting that the collision of the airliner and the helicopter over the Potomac was due to the changes in Trump’s policies. 

    The spin showed utter contempt for the intelligence of the public since there was no evidence that the Trump Administration policies had any impact on the accidents.

    Nevertheless, the press and pundits fueled the false narrative by citing various accidents in January. That narrative then collapsed after CNN and other media outlets acknowledged that there were actually fewer accidents in January than average and that the Biden Administration saw more accidents during the same period.

    The attempt to use these tragedies for raw political advantage is appalling. However, it also shows the complete disregard for the intelligence of voters in suggesting the nexus between the change of Administration and airplane accidents shortly after the inauguration.

    It does not matter that Transportation Secretary Sean Duffy was not confirmed until January 28, 2025, less than 24 hours before the accident over the Potomac.

    Nevertheless, Senate Minority Leader Chuck Schumer and others immediately weaponized that and later tragedies.

    Schumer was joined by media figures like former MSNBC host Mehdi Hasan, who later was compelled to delete a tweet on Sunday, Feb. 16 in which he wrote “Make American Plane Crash Again.” 

    Like others, Hasan was connecting a small plane crash in Georgia to the start of the Trump Administration.

    Then there was Rep. Eric Swalwell. We have previously discussed the bottomless pit of Swalwellian logic, such as shutting down the government to prevent government shutdowns.

    The logic tree was felled again by Swalwell in blaming the Trump Administration for the crash in Georgia: “Trump is President. President Trump is in charge of air safety. All crashes are Trump’s fault.”

    The only problem, as pointed out by CNN, is that air travel overall was better in January than prior such periods:

    “In fact, if the preliminary numbers hold, January 2025 will surpass the previous record for the lowest number of total accidents, with eight fewer than the prior record low of 70 from January 2012.”

    Does that mean that all aircraft safety like aircraft accidents are attributed to Trump? Of course not. Not only have no changes been made that have impacted the air traffic controllers in these cases, but none of the proposals would reduce those controllers.

    The most bizarre was the effort to blame Trump for an accident where a plane flipped over in Canada.

    On NBC, Tom Costello observed “as you know there has been talk about maybe staff cuts at the FAA as a part of President Trump’s effort to trim down the federal workforce.”

    This is becoming a policy version of Six Degrees from Kevin Bacon. Every airport accident can be traced within six degrees of DOGE or Duffy.

    It is very easy. Just take any airline mishap anywhere in the world and then trace it back to the United States and Sean Duffy. For example, there was also a water main break at the airport at Fort McMurray International Airport in Alberta. Ready? Go…

    If you are struggling, just watch Schumer who is the most nimble at this game.

    “I’m thankful that everyone in the flight incident in Toronto that took off from Minneapolis is safe, but we keep seeing these incidents day after day. Meanwhile, Trump’s doing massive layoffs at the FAA – including safety specialists – and making our skies less and less safe…Democrats are fighting to protect the flying public…To those asking whether it matters that the plane’s destination was in Canada: The flight took off from Minneapolis. The FAA was still responsible for inspecting the aviation equipment, and Trump just let go of FAA safety specialists.”

    Done. Six degrees to Duffy.

    Tyler Durden
    Sat, 02/22/2025 – 12:50

  • Mexico President Sheinbaum Warns Against US Military Strikes On Cartels
    Mexico President Sheinbaum Warns Against US Military Strikes On Cartels

    In the wake of President Trump’s designation of several Latin American drug cartels as foreign terrorist organizations, Mexican President Claudia Sheinbaum on Thursday warned the White House against military action inside her country. 

    “This cannot be an opportunity for the U.S. to invade our sovereignty,” she told reporters. “With Mexico, it is collaboration and coordination, never subordination or interventionism, and even less invasion.”

    Mexico President Claudia Sheinbaum flanked by senior security officials during October 2024 inaugural ceremonies 

    Her remarks followed Wednesday’s US State Department announcement that it had designated eight Latin American drug cartels as foreign terrorist organizations. In addition to the notorious Venezuelan gang Tren de Aragua that has been raising hell inside the United States, the list included Mexico’s two principal drug traffickers: the Jalisco Nueva Generacion and Sinaloa cartels. 

    The move fulfilled a promise Trump made during his 2024 election campaign. While the most likely initial actions will center on the legal and financial fronts, the terrorist designation opens the door for military action against the cartels. In the wake of the announcement, Trump advisor Elon Musk tweeted, “That means they’re eligible for drone strikes.”

    Sheinbaum, however, warned against unilateral US military action:

    “The Mexican people will under no circumstances accept interventions, intrusions or any other action from abroad that is detrimental to the integrity, independence or sovereignty of the nation… [including] violations of Mexican territory, whether by land, sea or air.”

    Earlier, Sheinbaum said she had approved US surveillance drone flights over Mexico. That claim came after CNN reported that the administration tapped the CIA to use unarmed MQ-9 drones to monitor the cartels. The secret missions were communicated to members of Congress, with the description of the undertaking making no mention of a partnership with the Mexican government.

    Since Trump took office, the CIA has been using unarmed MQ-9 Reaper drones to spy on Mexican drug cartels (USAF file)

    There have also been indications of US Air Force RC-135V aircraft performing signal intelligence (SIGINT) missions inside Mexican airspace. Meanwhile, the Mexican Senate Commission has given the green light for US Special Forces deployment inside Mexico for “training missions.” 

    Sheinbaum has said she opposes a terrorist designation out of concern that US government actions under such a designation may violate Mexican sovereignty, arguing that the two countries should work in mutual consultation and collaboration. Last week, Sheinbaum threatened to retaliate for a terrorist-designation by expanding Mexico’s lawsuit against several American gun manufacturers, including Smith & Wesson, Barrett, Colt and Sturm, Ruger & Co: 

    “If they were to decree organized crime groups as terrorists, we would have to expand the lawsuit in the United States because — as the Department of Justice itself has already acknowledged that 74% of the arms of criminal groups come from the United States — then how are the arms manufacturers and distributors affected by the decree? The lawyers are looking at it, but they could be accomplices.”

    The move toward the US terror designation began with a Day One executive order from Trump tasking the State Department with evaluating that avenue. “The cartels have engaged in a campaign of violence and terror throughout the Western Hemisphere that has not only destabilized countries with significant importance for our national interests but also flooded the United States with deadly drugs, violent criminals, and vicious gangs,” Trump wrote. 

    Tyler Durden
    Sat, 02/22/2025 – 12:15

Digest powered by RSS Digest

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.