Today’s News 28th April 2023

• German Domestic Spy Agency Labels AfD Youth Org As "Extreme Right", Enabling Mass Surveillance Of All Members
  German Domestic Spy Agency Labels AfD Youth Org As “Extreme Right”, Enabling Mass Surveillance Of All Members

  Authored by John Cody via Remix News,

  Germany’s Federal Office for the Protection of the Constitution (BfV), which serves as the country’s domestic intelligence service, has classified the AfD party youth wing, Junge Alternative (JA), as a “certain right-wing extremist endeavor.”

  

  The new designation not only creates the conditions for increased monitoring and enforcement action against JA, it also comes as a political hit to the parent AfD party at a time when it has seen a surge in popularity.

  The BfV had already listed the AfD youth group as a “suspected case” in 2019, and the agency is now allowed to use all intelligence tools to monitor the JA after its new designation. In addition to the use of so-called confidential informants, this will include telephone tapping and covert observation, according to German newspaper Die Welt.

  The BfV justified its step, among other things, with the concept of how the organization allegedly views the German people. The BfV argues that JA’s view is not compatible with the country’s constitution, also known as the Basic Law.

  “The JA’s understanding of the people, which is clearly evident in its statements and pronouncements, contradicts the understanding of the people expressed in the Basic Law and is capable of excluding members of supposedly other ethnic groups and devaluing German citizens with a migration background as second-class Germans,” the agency wrote in a press release on Wednesday.

  Agitation against migrants is a consistent theme of the Junge Alternative, the BfV stated.

  “In particular, immigrants with a (supposed) Muslim background are attributed negative characteristics in a sweeping manner, such as cultural backwardness and a disproportionately strong tendency to crime and violence, simply because of their origin and religion,” the BfV wrote in a statement.

  It is unclear what specific comments the BfV is referring to, but it has long been reported, including in mainstream media outlets, that foreigners, particularly from Middle Eastern and African countries, feature extremely high crime rates, especially for serious crimes like murder, assault, robbery, and rape. Furthermore, German officials themselves have pointed to foreigners from these countries as being responsible for the dramatic increase in child marriage and female genital mutilation. In other areas, like anti-Semitism, the predominant groups involved all hail from the Middle East.

  The BfV also claims that the AfD has repeatedly expressed itself in an anti-democratic manner. The agency claims members of the JA denigrate “political opponents, but also the state and its representatives per se.” This allegedly indicates that the Young Alternative is not concerned with democratic discourse, “but with a general disparagement of the democratic system of the Federal Republic of Germany.”

  According to the government’s own data, the AfD is the most attacked party in Germany. Its members have been subject to numerous arson attacks, and much of the political establishment — both the left and the center-right — have called for the party’s complete ban. The party has also been effectively banned from the country’s political talk shows on the ARD and ZDF channels, which are required to air a plurality of views reflecting the German public, due to their status as publically funded.

  The federal executive committee of the Junge Alternative downplayed the BfV’s announcement.

  “The classification of the so-called constitutional protection does not surprise us,” the board of the party youth branch announced.

  The statement outlined that the country’s secret services are simply fulfilling their mission of suppressing the country’s opposition.

  “Regardless of whether they are critics of migration, critics of coronavirus measures or advocates of peace — every form of authentic opposition in this country is systematically stigmatized by this authority,” the board of the JA warned. Now, the JA is reviewing its legal options in light of the designation.

  AfD leaders Tino Chrupalla and Alice Weidel also released a joint statement, writing: “We currently have neither a justification nor relevant documents that make the step comprehensible.”

  The AfD is facing various legal disputes that could end up with the party being slapped by the BfV with a similar “right-wing extremist” designation. The party suspects that the BfV made the move against the JA to strengthen its case against the AfD. If the AfD receives such a designation, it could pave the way for a complete ban of the party in Germany.

  There is also the suspicion that the BfV is using the new classification of the JA to influence legal disputes with the AfD.

  In January, the AfD appealed to the Higher Administrative Court in Münster to overturn the BfV’s classification of the party, its youth organization and the dissolved party branch “Der Flügel” as suspected right-wing extremists.

  Federal Interior Minister Nancy Faeser (SPD), known for writing for Antifa Magazine and her claims that the right poses the biggest threat to Germany, praised BfV for classifying the party as a right-wing extremist group.

  “We are a strong and resilient democracy. We are very resolute in defending ourselves against racism and other forms of inhumanity,” she said on Wednesday. “We are doing everything we can to dry up the breeding ground for right-wing extremist violence.”

  Tyler Durden
  Fri, 04/28/2023 – 02:00

• The War On Free Speech Is Really A War On The Right To Criticize The Government
  The War On Free Speech Is Really A War On The Right To Criticize The Government

  Authored by John and Nisha Whitehead via The Rutherford Institute,

  “Since when have we Americans been expected to bow submissively to authority and speak with awe and reverence to those who represent us? The constitutional theory is that we the people are the sovereigns, the state and federal officials only our agents. We who have the final word can speak softly or angrily. We can seek to challenge and annoy, as we need not stay docile and quiet.”

  – Justice William O. Douglas

  Absolutely, there is a war on free speech.

  

  To be more accurate, however, the war on free speech is really a war on the right to criticize the government.

  Although the right to speak out against government wrongdoing is the quintessential freedom, every day in this country, those who dare to speak their truth to the powers-that-be find themselves censored, silenced or fired.

  Indeed, those who run the government don’t take kindly to individuals who speak truth to power.

  In fact, the government has become increasingly intolerant of speech that challenges its power, reveals its corruption, exposes its lies, and encourages the citizenry to push back against the government’s many injustices.

  This is nothing new, nor is it unique to any particular presidential administration.

  For instance, as part of its campaign to eradicate so-called “disinformation,” the Biden Administration likened those who share “false or misleading narratives and conspiracy theories, and other forms of mis- dis- and mal-information” to terrorists. This government salvo against consumers and spreaders of “mis- dis- and mal-information” widens the net to potentially include anyone who is exposed to ideas that run counter to the official government narrative.

  In his first few years in office, President Trump declared the media to be “the enemy of the people,” suggested that protesting should be illegal, and that NFL players who kneel in protest during the national anthem “shouldn’t be in the country.”

  Then again, Trump was not alone in his presidential disregard for the rights of the citizenry, especially as it pertains to the right of the people to criticize those in power.

  President Obama signed into law anti-protest legislation that makes it easier for the government to criminalize protest activities (10 years in prison for protesting anywhere in the vicinity of a Secret Service agent). The Obama Administration also waged a war on whistleblowers, which The Washington Post described as “the most aggressive I’ve seen since the Nixon administration,” and “spied on reporters by monitoring their phone records.”

  Part of the Patriot Act signed into law by President George W. Bush made it a crime for an American citizen to engage in peaceful, lawful activity on behalf of any group designated by the government as a terrorist organization. Under this provision, even filing an amicus brief on behalf of an organization the government has labeled as terrorist would constitute breaking the law.

  President Franklin D. Roosevelt authorized the FBI to censor all news and control communications in and out of the country in the wake of the attack on Pearl Harbor. Roosevelt also signed into law the Smith Act, which made it a crime to advocate by way of speech for the overthrow of the U.S. government by force or violence.

  President Woodrow Wilson signed into law the Espionage and Sedition Acts, which made it illegal to criticize the government’s war efforts.

  President Abraham Lincoln seized telegraph lines, censored mail and newspaper dispatches, and shut down members of the press who criticized his administration.

  In 1798, during the presidency of John Adams, Congress passed the Alien and Sedition Acts, which made it a crime to “write, print, utter or publish … any false, scandalous, and malicious” statements against the government, Congress or president of the United States.

  Clearly, the government has been undermining our free speech rights for quite a while now.

  Good, bad or ugly, it’s all free speech unless as defined by the government it falls into one of the following categories: obscenity, fighting words, defamation (including libel and slander), child pornography, perjury, blackmail, incitement to imminent lawless action, true threats, and solicitations to commit crimes.

  This idea of “dangerous” speech, on the other hand, is peculiarly authoritarian in nature. What it amounts to is speech that the government fears could challenge its chokehold on power.

  The kinds of speech the government considers dangerous enough to red flag and subject to censorship, surveillance, investigation, prosecution and outright elimination include: hate speech, bullying speech, intolerant speech, conspiratorial speech, treasonous speech, threatening speech, incendiary speech, inflammatory speech, radical speech, anti-government speech, right-wing speech, left-wing speech, extremist speech, politically incorrect speech, etc.

  Conduct your own experiment into the government’s tolerance of speech that challenges its authority, and see for yourself.

  Stand on a street corner—or in a courtroom, at a city council meeting or on a university campus—and recite some of the rhetoric used by the likes of Thomas Jefferson, Patrick Henry, John Adams and Thomas Paine without referencing them as the authors.

  For that matter, just try reciting the Declaration of Independence, which rejects tyranny, establishes Americans as sovereign beings, recognizes God (not the government) as the Supreme power, portrays the government as evil, and provides a detailed laundry list of abuses that are as relevant today as they were 240-plus years ago.

  My guess is that you won’t last long before you get thrown out, shut up, threatened with arrest or at the very least accused of being a radical, a troublemaker, a sovereign citizen, a conspiratorialist or an extremist.

  Try suggesting, as Thomas Jefferson and Benjamin Franklin did, that Americans should not only take up arms but be prepared to shed blood in order to protect their liberties, and you might find yourself placed on a terrorist watch list and vulnerable to being rounded up by government agents.

  “What country can preserve its liberties if their rulers are not warned from time to time that their people preserve the spirit of resistance. Let them take arms,” declared Jefferson.

  He also concluded that “the tree of liberty must be refreshed from time to time with the blood of patriots and tyrants.”

  Observed Franklin: “Democracy is two wolves and a lamb voting on what to have for lunch. Liberty is a well-armed lamb contesting the vote!”

  Better yet, try suggesting as Thomas Paine, Marquis De Lafayette, John Adams and Patrick Henry did that Americans should, if necessary, defend themselves against the government if it violates their rights, and you will be labeled a domestic extremist.

  “It is the duty of the patriot to protect his country from its government,” insisted Paine.

  “When the government violates the people’s rights,” Lafayette warned, “insurrection is, for the people and for each portion of the people, the most sacred of the rights and the most indispensable of duties.”

  Adams cautioned, “A settled plan to deprive the people of all the benefits, blessings and ends of the contract, to subvert the fundamentals of the constitution, to deprive them of all share in making and executing laws, will justify a revolution.”

  And who could forget Patrick Henry with his ultimatum: “Give me liberty or give me death!”

  Then again, perhaps you don’t need to test the limits of free speech for yourself.

  One such test is playing out before our very eyes on the national stage led by those who seem to believe that only individuals who agree with the government are entitled to the protections of the First Amendment.

  To the contrary, James Madison, the father of the Constitution, was very clear about the fact that the First Amendment was established to protect the minority against the majority.

  I’ll take that one step further: the First Amendment was intended to protect the citizenry from the government’s tendency to censor, silence and control what people say and think.

  Having lost our tolerance for free speech in its most provocative, irritating and offensive forms, the American people have become easy prey for a police state where only government speech is allowed.

  You see, the powers-that-be understand that if the government can control speech, it controls thought and, in turn, it can control the minds of the citizenry.

  This is how freedom rises or falls.

  Americans of all stripes would do well to remember that those who question the motives of government provide a necessary counterpoint to those who would blindly follow where politicians choose to lead.

  We don’t have to agree with every criticism of the government, but we must defend the rights of all individuals to speak freely without fear of punishment or threat of banishment.

  Never forget: what the architects of the police state want are submissive, compliant, cooperative, obedient, meek citizens who don’t talk back, don’t challenge government authority, don’t speak out against government misconduct, and don’t step out of line.

  What the First Amendment protects—and a healthy constitutional republic requires—are citizens who routinely exercise their right to speak truth to power.

  Tolerance for dissent is vital if we are to survive as a free nation.

  While there are all kinds of labels being put on so-called “unacceptable” speech today, the real message being conveyed by those in power is that Americans don’t have a right to express themselves if what they are saying is unpopular, controversial or at odds with what the government determines to be acceptable.

  By suppressing free speech, the government is contributing to a growing underclass of Americans who are being told that they can’t take part in American public life unless they “fit in.”

  Mind you, it won’t be long before anyone who believes in holding the government accountable to respecting our rights and abiding by the rule of law is labeled an “extremist,” is relegated to an underclass that doesn’t fit in, must be watched all the time, and is rounded up when the government deems it necessary.

  It doesn’t matter how much money you make, what politics you subscribe to, or what God you worship: as I make clear in my book Battlefield America: The War on the American People and in its fictional counterpart The Erik Blair Diaries, we are all potential suspects, terrorists and lawbreakers in the eyes of the government.

  Tyler Durden
  Thu, 04/27/2023 – 23:40

• Mysterious Listeria Outbreak Spreads To 15 States
  Mysterious Listeria Outbreak Spreads To 15 States

  Federal health officials are investigating a “Listeria outbreak with unknown source” across 15 states.

  “A specific food item has not yet been identified as the source of this outbreak. However, CDC is concerned that illnesses continue to be reported. Listeria illness is rare, but it can result in serious illness or death,” a recent notice via the Centers for Disease Control and Prevention (CDC) read. 

  The overall count of infections might be higher than what is currently being reported. According to CDC data, there have been 18 cases of infection, leading to 17 hospitalizations in 15 different states. So far, no fatalities have been reported.

  Michigan and Wisconsin are the only states to have recorded two illnesses. Illinois, Arkansas, California, Colorado, Missouri, New York, North Carolina, Pennsylvania, South Dakota, and Washington have each reported one. 

  The CDC has constructed an outbreak map. 

  

  “Public health officials are interviewing people in this outbreak to find out what foods they ate before getting sick,” the CDC said, adding the infection is “especially harmful if you are pregnant, aged 65 or older, or have a weakened immune system.” 

  Tyler Durden
  Thu, 04/27/2023 – 23:20

• Escobar: Mr. Lavrov's New York Shuffle
  Escobar: Mr. Lavrov’s New York Shuffle

  Authored by Pepe Escobar,

  Foreign Minister Sergey Lavrov’s New York moment performed the diplomatic equivalent of bringing the house down…

  

  Now picture a true gentleman, the foremost diplomat of these troubled times, in total command of the facts and endowed with a delightful sense of humor, taking a perilous walk on the wild side, to quote iconic Lou Reed, and emerging unscathed.

  In fact, Foreign Minister Sergey Lavrov’s New York moment – as in his two interventions before the UN Security Council on April 24 and 25 – performed the diplomatic equivalent of bringing the house down. At least the sections of the house inhabited by the Global South – or Global Majority.

  April 24, during the 9308th meeting of the UNSC under the agenda “Maintenance of international peace and security, effective multilateralism through the protection of the principles of the UN Charter”, was particularly relevant.

  Lavrov stressed the symbolism of the meeting happening on the International Day of Multilateralism and Diplomacy for Peace, deemed quite significant by a 2018 UN General Assembly resolution.

  In his preamble, Lavrov noted how “in two weeks, we will celebrate the 78th anniversary of Victory in World War II. The defeat of Nazi Germany, to which my country made a decisive contribution with the support of the Allies, laid the foundation for the post-war international order. The UN Charter has become its legal basis, and our organization itself, embodying true multilateralism, has acquired a central, coordinating role in world politics.”

  Well, not really. And that brings us to Lavrov’s true walk on the wild side, pinpointing how multilateralism has been trampled. Way beyond torrents of denigration by the usual suspects, and their attempt to submit him to an ice cold shower in New York, or even confine him to the – geopolitical – freezer, he prevailed. Let’s take a walk with him across the current wasteland. Mr. Lavrov, you’re the star of the show.

  

  Our way or the highway

  That “rules-based order”:

  “The UN-centric system is going through a deep crisis. The root cause was the desire of some members of our organization to replace international law and the UN Charter with a kind of ‘rules-based order.’ No one saw these ‘rules’, they were not the subject of transparent international negotiations. They are invented and used to counteract the natural processes of the formation of new independent centers of development, which are an objective manifestation of multilateralism. They are trying to contain them with illegitimate unilateral measures, including cutting off access to modern technologies and financial services, ousting them from supply chains, confiscating property, destroying competitors’ critical infrastructure, and manipulating universally agreed norms and procedures. As a result, the fragmentation of world trade, the collapse of market mechanisms, the paralysis of the WTO and the final, already without disguise, transformation of the IMF into a tool for achieving the goals of the United States and its allies, including military goals.”

  Destroying globalization:

  “In a desperate attempt to assert its dominance by punishing the disobedient, the United States went on to destroy globalization, which for many years was extolled as the highest good of all mankind, serving the multilateral system of the world economy. Washington and the rest of the West, which has submitted to it, use their ‘rules’ whenever it is necessary to justify illegitimate steps against those who build their policies in accordance with international law and refuse to follow the selfish interests of the ‘golden billion’. Dissenters are blacklisted according to the principle: ‘Whoever is not with us is against us.’ It has long been ‘inconvenient’ for our Western colleagues to negotiate in universal formats, such as the UN. For the ideological justification of the policy of undermining multilateralism, the theme of the unity of ‘democracies’ as opposed to ‘autocracies’ has been introduced. In addition to the ‘summits for democracy’, whose composition is determined by the self-proclaimed Hegemon, other ‘clubs of the elite’ are being created, bypassing the UN.”

  “Garden” vs. “Jungle:

  “Let’s call a spade a spade: no one allowed the Western minority to speak on behalf of all mankind. It is necessary to behave decently and respect all members of the international community. By imposing a ‘rules-based order’, its authors arrogantly reject a key principle of the UN Charter – the sovereign equality of states. The quintessence of the ‘exclusivity complex’ was the ‘proud’ statement by the head of EU diplomacy, Josep Borrell, that ‘Europe is the Garden of Eden, and the rest of the world is a jungle.’ I will also quote the NATO-EU Joint Statement of January 10 of this year, which states: the ‘United West’ will use all the economic, financial, political and – I pay special attention – military tools available to NATO and the EU to ensure the interests of ‘our one billion’.

  NATO’s “line of defense”:

  “At last year’s summit in Madrid, NATO, which has always convinced everyone of its ‘peacefulness’ and the exclusively defensive nature of its military programs, declared ‘global responsibility’, the ‘indivisibility of security’ in the Euro-Atlantic region and in the so-called Indo-Pacific region. That is, now the ‘line of defense’ of NATO (as a defensive Alliance) is shifting to the western shores of the Pacific Ocean. Bloc approaches that undermine ASEAN-centric multilateralism are manifested in the creation of the AUKUS military alliance, into which Tokyo, Seoul and a number of ASEAN countries are being pushed. Under the auspices of the United States, mechanisms are being created to intervene in maritime security issues with an eye to ensuring the unilateral interests of the West in the South China Sea. Josep Borrell, whom I have already quoted today, promised yesterday to send EU naval forces to the region. It is not hidden that the goal of the ‘Indo-Pacific strategies’ is to contain the PRC and isolate Russia. This is how our Western colleagues understand ‘effective multilateralism’ in the Asia-Pacific region.”

  “Promoting democracy”:

  “Since World War II, there have been dozens of criminal military adventures by Washington – without any attempt to gain multilateral legitimacy. Why, if there are ‘rules’ unknown to anyone? The shameful invasion of Iraq by the U.S.-led coalition in 2003 was carried out in violation of the UN Charter, as was the aggression against Libya in 2011. A gross violation of the UN Charter was U.S. interference in the affairs of post-Soviet states. ‘Color revolutions’ were organized in Georgia and Kyrgyzstan, a bloody coup d’état in Kiev in February 2014, and attempts to seize power by force in Belarus in 2020. The Anglo-Saxons, who confidently led the entire West, not only justify all these criminal adventures, but also flaunt their line of ‘promoting democracy.’ But again, according to its ‘rules’: Kosovo – to recognize independence without any referendum; Crimea – not to recognize (although there was a referendum); Do not touch the Falklands/Malvinas, because there was a referendum there (as British Foreign Secretary John Cleverly said recently). That’s funny.”

  The geopolitics of the “Ukrainian issue”:

  “Today, everyone understands, although not everyone talks about it out loud: this is not about Ukraine at all, but about how international relations will be built further: through the formation of a stable consensus based on a balance of interests – or through the aggressive and explosive promotion of hegemony. It is impossible to consider the ‘Ukrainian issue’ in isolation from the geopolitical context. Multilateralism presupposes respect for the UN Charter in all the interconnectedness of its principles, as mentioned above. Russia has clearly explained the tasks that it pursues as part of a special military operation: to eliminate the threats to our security created by NATO members directly on our borders and to protect people who have been deprived of their rights proclaimed by multilateral conventions, to protect them from the direct threats of extermination and expulsion from the territories where their ancestors lived for centuries publicly declared by the Kyiv regime. We honestly said what and for whom we are fighting.”

  The Global South fights back:

  “True multilateralism at the present stage requires the UN to adapt to the objective trends in the formation of a multipolar architecture of international relations. The reform of the Security Council must be accelerated by increasing the representation of countries in Asia, Africa and Latin America. The West’s current outrageous overrepresentation in this main UN organ undermines multilateralism. At the initiative of Venezuela, the Group of Friends in Defense of the UN Charter was created. We call on all States that respect the Charter to join it. It is also important to use the constructive potential of BRICS and the SCO. The EAEU, the CIS, and the CSTO are ready to contribute. We are in favor of using the initiative of the positions of regional associations of the countries of the Global South. The Group of Twenty can also play a useful role in maintaining multilateralism if Western participants stop distracting their colleagues from topical issues on its agenda in the hope of muffling the topic of their responsibility for the accumulation of crisis phenomena in the world economy.”

  So who’s breaking the law?

  After this concise tour de force, it would be immensely enlightening to track what Lavrov has been telling the world since February 2022, in consistent, excruciating detail: the serial international law breakers, in contemporary history, have been the Hegemon and its sorry gaggle of vassals. Not Russia.

  So Moscow was completely within its rights to launch the SMO – as it had no alternative. And that operation will be brought to its logical conclusion – inbuilt in the new Russian Foreign Policy Concept published on March 31st. Whatever may be unleashed by the Collective West will be simply ignored by Russia, as it regards the entire combo to be acting outside the norms of international law laid down in the UN Charter.

  Tyler Durden
  Thu, 04/27/2023 – 23:00

• "Vice News Tonight" Canceled As Media Downturn Accelerates
  “Vice News Tonight” Canceled As Media Downturn Accelerates

  The downfall of Vice Media Group (VMG) is a perfect example of the challenges media organizations face that shift focuses towards ultra-left-wing ideologies. Despite being worth billions of dollars just several years ago, the company has followed a similar fate as Buzzfeed, now undergoing broad restructuring.

  In 2017, Vice Media secured a funding round at $5.7 billion. One of its founders joked about “hockey stick” growth and a “sexy” IPO debut. But that never happened, and fast forward to today, top executives told employees in a memo that the popular TV program “Vice News Tonight” will be canceled, as well as a number of employees will be fired. 

  “In response to the current market conditions and business realities facing VMG and the broader news and media industry, we are moving forward on some painful but necessary reductions, primarily across our News business,” co-CEOs Bruce Dixon and Hozefa Lokhandwala told employees. They didn’t specify how many job cuts. 

  Dixon and Lokhandwala emphasized, “We are NOT exiting the news business, but we are changing the shape of VICE News to position the whole Company for long-term opportunities and improve how we deliver important, ground-breaking journalism well into the future.” 

  A person familiar with the upcoming layoffs told CNN that the digital media company plans “dozens” of cuts to reduce operational costs. 

  VMG joins a slew of other media companies that have had no other option but to restructure in recent months due to mounting macroeconomic headwinds and a weak advertising market. Also, many of these firms went ‘woke’ and are quickly going broke. 

  Last week, BuzzFeed’s CEO Jonah Peretti told employees about restructuring plans that called for a reduction of headcount and the cancellation of BuzzFeed News. 

  VMG and BuzzFeed are some of the best examples of how to destroy billions of dollars in valuations through woke and rubbish content. 

  But it’s not just VMG and BuzzFeed hemorrhaging workers. HuffPost’s senior editor Philip Lewis highlighted a list of other media organizations undergoing restructuring efforts. 

  media layoffs in 2023
  -VICE Media
  -Insider
  – Many local newsrooms across the U.S.
  -Buzzfeed (Buzzfeed News, Complex)
  – Paper Magazine
  -Vox Media
  – Disney (ABC, ESPN, National Geographic, FiveThirtyEight)
  – NPR
  – Fandom
  – Gannett
  – The Washington Post
  – NBC News
  – E.W. Scripps

  — philip lewis (@Phil_Lewis_) April 27, 2023

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

  *     *     * 

  Read VMG’s Dixon and Lokhandwala’s memo in full below:

  Team, 

  In response to the current market conditions and business realities facing VMG and the broader news and media industry, we are moving forward on some painful but necessary reductions, primarily across our News business. We are transforming VICE News to better withstand market realities and more closely align with how and where we see our audiences engaging with our content most. To be incredibly clear, VICE News is core to VICE Media Group and fundamental to our business. We are NOT exiting the news business, but we are changing the shape of VICE News to position the whole company for long-term opportunities and improve how we deliver important, ground-breaking journalism well into the future.

  As part of this process, we’ve decided to streamline VICE News and make reductions in roles across our global News team to focus on our growing digital video business and our News documentary and series production business for VTV and distribution partners worldwide. We’re also discontinuing VICE News Tonight on VICE TV (the last VNT broadcast will be in May). It’s clear that we need to accelerate VICE News’ transition to the platforms where its biggest audiences are — on our owned and operated channels where we have a direct relationship with our audience, on Paramount+ with Showtime, FAST Channels, YouTube, TikTok, Twitch, and via documentary programming for streaming platforms such as Netflix, HBO Max and Tubi. We believe this strategic focus strongly positions VICE’s incredibly important news coverage for the future.

  Going forward, VICE News will be produced by our News Productions and Publishing divisions jointly under Subrata De, EVP, News, and Global Head of Programming and Development, and Cory Haik, COO for News and Entertainment — two of the most talented media executives in our industry. Our longform documentary and premium series work will be produced out of our News Productions division under Subrata, who will continue to oversee global news production for all linear and streaming platforms, including VICE TV. Our daily global VICE News journalism will be produced out of our Publishing division, under Cory, with VICE News and Motherboard now organized alongside our other digital brands: VICE, Refinery29, Unbothered and i-D, delivering our digital content across platforms and our VMG network. We will also be unifying all of our news content under VICE News, which will now be our single overarching global News brand. The teams will continue to work closely together, in a coordinated and collaborative manner focused on the shared vision for VICE News’ important role in global news coverage. 

  Our global Human Resources team will begin notifying employees whose jobs are directly impacted by these changes. If you have questions, you should reach out to your manager and HRBP. 

  We hope you understand that these changes were not made lightly, and that it is extremely painful to see our colleagues leave. VICE News began as a small team committed to shining a light on news in corners of the world that were being ignored by the mainstream press. Our team is part of our family and an important part of what built the VICE News brand into what it is today, but as the media industry continues to rapidly evolve and our audience consumes content in new ways, this transformation is a necessary step to safeguard the journalism for which VICE has always excelled and the future of VMG. 

  Thank you, 

  Bruce & Hozefa

  *     *     * 

  Readers will appreciate this… 

  Tyler Durden
  Thu, 04/27/2023 – 22:40

• City Of Asheville Trapped In Crime Crisis, Prepares To Impose 60-Day 'Safety Initiative'
  City Of Asheville Trapped In Crime Crisis, Prepares To Impose 60-Day ‘Safety Initiative’

  The City of Asheville, situated in North Carolina, is facing severe challenges due to soaring crime and a dwindling police force in the aftermath of the 2020 George Floyd murder, which sparked the nationwide ‘defund the police’ movement. In response to the rampant lawlessness, city officials have declared an emergency plan, beginning next week and lasting for two months, to tackle the crime wave. 

  “There are complex circumstances contributing to the safety issues that Asheville is currently seeing downtown, and it will take a community response to address these complexities,” the city stated in a press release. 

  Next Monday, city officials are rolling out a 60-day initiative to address safety downtown:

  “Our efforts in downtown should in no way suggest that we aren’t focused on safety across the entire community. This intensive effort is driven by data that suggests a disturbing trend of increases in both property and violent crime in our downtown,” said Asheville Police Chief David Zack. 

  Here are some initiatives the city will implement to combat criminal activity on its streets:

  • Increased law enforcement presence by utilizing foot, bike, and vehicle patrols as well as enhanced security in downtown parks.

  • Launch of a Community Responder Pilot Program led by the Asheville Fire Department to support individuals in crisis and provide a more visible City public safety presence downtown. The pilot will be used to inform a longer-term Community Responder initiative past the 60 days.

  • Focused attention on the removal of litter, needles and biological waste and general Downtown cleanliness; as well as increased maintenance activities in downtown parks. 

  • Partner with any private or non-profit organization to identify key locations in downtown where there are public safety concerns and/or to schedule community clean-up efforts.

  • Enforcement of illegally parked cars with a specific focus on the areas in and around Pritchard Park.

  • Enhanced frequency of monitoring City-owned and operated public parking garages, including stairwells in these facilities.

  • Focused attention on quickly removing graffiti on public property and graffiti code enforcement on private property in the downtown area.

  • Concentrated effort to identify streetlight outages in the central business district and coordination of necessary streetlight replacements with Duke Energy.

  The announcement comes as local newspaper Mountain Xpress recently warned of a severe police shortage due to the polarizing defunding of the police movement during the pandemic. 

  On an ordinary day in Asheville, 16 to 18 police officers patrol the entire city, an area covering 46 square miles.

  That’s down from 30 cops on duty three years ago, when Asheville first started losing officers faster than it could replace them.

  The Asheville Police Department has been operating at a reduced capacity, now just 60%, for more than two years — and the Police Chief, David Zack, told Asheville Watchdog that it could be another decade before the force returns to pre-pandemic levels.

  Crime in Asheville

  

  Remember, Democrats ensured everyone that defunding the police movement would make communities safer, but in reality, it has unleashed nationwide crime waves. This is evident in Baltimore, Chicago, and numerous West Coast cities. 

  Looking forward, it’s important to hold Democrats responsible for their role in promoting failed social justice reforms that have led to more dangerous metro areas. The best way is to vote these folks out of office in the next election cycle. 

  Tyler Durden
  Thu, 04/27/2023 – 22:00

• We're Done With 'Gradually'. We've Now Reached The 'Suddenly' Part…
  We’re Done With ‘Gradually’. We’ve Now Reached The ‘Suddenly’ Part…

  Authored by Simon Black via SovereignMan.com,

  By the summer of 1563, all of Britain had plunged into chaos over religion and the Reformation.

  King Henry VIII broke away from the Catholic church back in the 1530s, sparking a near civil war within the kingdom. Protestants killed Catholics, Catholics killed protestants, and extreme social tensions lasted for decades.

  Universities were at the heart of this conflict; rather than focus on real subjects like science and mathematics, students and professors became radical social activists and turned their schools into ideological echo chambers. Sound familiar?

  One of the few students who actually wanted to learn was a Scottish teenager named John Napier; Napier had been enrolled at the University of St. Andrews at the time, but he quickly realized that he would never learn a damn thing in that environment. So he dropped out… and started traveling in search of a real education.

  No one quite knows exactly where he went or what he did. But when he returned to Scotland eight years later as a young man, Napier had become an intellectual giant.

  You might not have ever heard of him, but John Napier was truly one of the great minds of his era.

  And modern science owes a tremendous debt to his work… in particular his development of logarithms.

  If it’s been a few years since you studied math (or ‘maths’ for my British friends), logarithms are the inverse of exponential functions.

  Simple example: we know that 102 (or 10 squared) = 10 x 10 = 100. So, the number 10 raised to the power of 2 equals 100.

  The inverse of that is to say that the ‘base 10’ logarithm of 100 = 2. Or in mathematical terms, 100 log10 = 2

  Napier devised an entire system of logarithms. And this was actually a tremendous leap forward in mathematics, because logarithms made it so much easier for scientists and researchers to calculate solutions to complex problems.

  One of the many important applications to come out of Napier’s work is the concept of ‘logarithmic decay,’ which models many real world phenomena.

  The idea behind logarithmic decay is that something declines very, very slowly at first. But, over a long period of time, the rate of decline becomes faster… and faster… and faster.

  If you look at it on a graph, logarithmic decay basically looks like a horizontal line that almost imperceptibly arcs gently downwards. But eventually the arc downward becomes steeper and steeper until it’s practically a vertical line down.

  

  Logarithmic decay is like how Hemingway famously described going bankrupt in The Sun Also Rises– “Gradually, then suddenly.”

  In fact logarithmic decay is great way to describe social and financial decline.

  Even the rise and fall of superpowers are often logarithmic in scale. The Kingdom of France in the 1700s infamously fell gradually… then suddenly.

  We can see the same logarithmic decay in the West today, and specifically the United States.

  The deterioration of government finances has been gradual, then sudden. Social conflict, censorship, and the decline in basic civility has been gradual, then sudden. Even the loss of confidence in the US dollar has been gradual… and is poised to be sudden.

  Back in 2009 when I started Sovereign Man, I spoke a lot about ideas that were highly controversial at the time.

  I suggested that Social Security’s trust funds would run out of money. That the US government would eventually be buried by its gargantuan national debt. That the US dollar would eventually lose its international reserve dominance. That inflation and social conflict would rise.

  The main thesis, quite simply, was that the US was in decline. And whenever I spoke at events, I used to talk about logarithmic decay, saying:

  “As a civilization in decline, you never really know quite where you are on the curve. You could be way over here on the horizontal line, at the very beginning of the decline… or you could be standing on the precipice about to hit the vertical slide down.”

  Well, now we have a much better idea of where we are on that logarithmic decay curve. Because these ideas about the national debt, inflation, social security, social conflict, etc. are no longer theories. Nor are they even remotely controversial.

  Just last week, US Speaker of the House Kevin McCarthy said in a speech that “America’s debt is a ticking time bomb”. Social Security’s looming insolvency is now openly discussed in Washington and regularly reported in the Wall Street Journal.

  

  We’ve all seen with our own eyes (and even experienced) inflation, social divisions, and censorship.

  And as for the dollar, we continue to see a multitude of cracks in its dominance. Most notably, Saudi Arabia is considering a plan to sell oil not just in US dollars, but also in Chinese yuan.

  Plus the international development bank of the BRICS nations (Brazil, Russia, India, China, and South Africa) announced earlier this month that they will start moving away from the dollar.

  Is it any surprise? The US government is weeks away from defaulting on its national debt over the latest debt ceiling debacle.

  And yet the guy who shakes hands with thin air refuses to negotiate a single penny in spending cuts to help reduce trillions of dollars in future deficit spending.

  The whole world is watching in utter disbelief at the astonishing level of incompetence that has infected the highest levels of America’s once hallowed institutions, including news media, big business, and the government itself.

  America– and the West by extension– really are on the precipice of that logarithmic decay curve… the part where the horizontal line becomes a vertical line down.

  It has taken years… even decades to reach this point, gradually. We’re now at the “suddenly” part.

  Now, it’s important to note that the outcome is far from inevitable. Plenty of declining superpowers in the past have pulled themselves out of a tailspin, at least temporarily.

  Aurelian’s reforms helped re-establish Rome’s dominance in the late 200s after nearly a century of chaos. The declining Ottoman Empire recovered substantially during the Tanzimat period in the 1800s. King Charles III of Spain made many successful reforms to revive his crumbling empire in the 1700s.

  There are many historical precedents for recovery, so all is not lost. But at the moment there is little evidence to suggest any major change on the horizon.

  I’m not saying this to be alarmist. Quite the contrary, in fact. Because one of the key pillars of our thinking here at Sovereign Man is that, despite the ineptitude of our governments, we as individuals have the tools, power, and freedom to solve these problems for ourselves… and even prosper doing so.

  Simple example: Social Security’s trust funds will run out of money within a decade, and this will be a huge problem for literally tens of millions of people who depend on the progam.

  However there are numerous tools available to solve this problem; a more robust and powerful retirement structure like a self-directed, solo 401(k) plan, for example, allows you to set aside up to $73,500 per year for your retirement.

  Similarly, if you expect a government with deteriorating finances to raise taxes (which they almost always do), you can take completely legal steps to reduce what you owe.

  If you anticipate inflation continuing, you can arrange your investments to capitalize on the surge in real assets, like minerals, energy, and productive technology.

  You can also take steps to diversify geographically, even internationally, to reduce risks to your family’s freedom.

  These solutions barely scratch the surface of the plentiful options at your disposal. All it takes is a sensible understanding of the problem… plus the willingness to take action.

  And rational, informed action is always a better option than despair.

  *  *  *

  If you can see what is happening, and where this is all going, you understand why it is so important to have a Plan B. That’s why we published our 31-page, fully updated Perfect Plan B Guide, which you can download here.

  Tyler Durden
  Thu, 04/27/2023 – 21:40

• Hamptons Luxury-Home Prices Soar On "Very Strong" Demand, Limited Inventory
  Hamptons Luxury-Home Prices Soar On “Very Strong” Demand, Limited Inventory

  Despite the slowest growth in US home prices in ten years and significant price drops in numerous West Coast cities, luxury property values in New York’s Hamptons marched higher in the first quarter. 

  As per a Bloomberg report, citing appraiser Miller Samuel Inc. and brokerage Douglas Elliman Real Estate, luxury property transactions in the top 10% of the Hamptons housing market reached a median price of $8.54 million, an 11% increase compared to the previous year. The average price of the highest-end homes in the seaside playground for Wall Street’s billionaires jumped 33% to a record of $16.1 million. 

  

  Todd Bourgard, Elliman’s chief executive officer for Long Island, explained mansion demand is “very strong.” He added prices are soaring because of low inventory:

  “We have more buyers in that market right now than we do inventory. So when something comes on that is priced reasonably for the luxury market, we’re getting great interest.” 

  Limited inventory and strong buying pressure could suggest that prices are on an upward trajectory — unless macroeconomic headwinds continue to mount and a deep recession unfolds later this year. 

  

  Meanwhile, the combination of low inventory and rising prices sent luxury sales tumbling in the quarter to 18 from 40 in the same quarter a year ago. Overall, sales in the Hamptons plummeted by 57% to 171. This marked the second-lowest total since the firms started monitoring the area’s sales in 2005. 

  At the end of the quarter, there were only 894 homes on the market, still 33% higher than the first quarter of 2022 but significantly lower than pre-pandemic levels. 

  

  Some wealthy buyers seem unphased by high mortgage rates and threats of recession as low supply drives luxury home prices higher in one of the top vacation spots for wealthy New Yorkers. 

  Inventory is so scarce that even tiny homes in the beach community are selling for $3.75 million.

  Tyler Durden
  Thu, 04/27/2023 – 21:20

• Only One Question Remains As Susan Rice, Biden's Shadow President, Leaves The White House
  Only One Question Remains As Susan Rice, Biden’s Shadow President, Leaves The White House

  Authored by Sundance via The Last Refuge (emphasis ours),

  In the game of test-match cricket, a game that can last three days at peak professional level, you have to ‘get out‘ to ‘get in‘.   

  You have to ‘get out‘ of the clubhouse in order to ‘get in‘ to the game.  The same is true for this story about Domestic Policy Advisor, Susan Rice, leaving the Biden administration.   

  Rice has to get out of the administration in order to get in to the 2024 game.

  

  Readers here will likely remember all previous discussion about the likely Democrat field for 2024.  Susan Rice and Gavin Newsom are both key players in the DNC big club game.  There is only one question at the core of the dynamic you need to ask, how will they off-ramp Joe Biden?

  First, the White House announcement: […] “As the only person to serve as both National Security Advisor and Domestic Policy Advisor, Susan’s record of public service makes history. But what sets her apart as a leader and colleague is the seriousness with which she takes her role and the urgency and tenacity she brings, her bias towards action and results, and the integrity, humility and humor with which she does this work. I thank Susan for her service, her counsel and her friendship. I will miss her.” (link)

  Susan Rice is the pliable foot soldier, the protege’ of the Lightbringer, Chicago Jesus.  Rice is the female version of the entire apparatus of the Obama team.  Susan Rice is Barack Obama in female form, and as Ric Grenell said eloquently, Susan Rice is “the shadow president.”

  A Newsom/Rice or Rice/Newsom ticket is a no brainer.  Both are foot soldiers for the Lightbringer movement’s fundamental change agenda, although Rice is the apex player and Newsom is the ideological, intellectual and cognitive equivalent of John Fetterman with better style.  Most people still do not understand that Barack Obama is not just a person, he is a complete political construct -a movement in a box- consisting of multiple component groups all working in synergy.

  The focus of the Obama movement is domestic and ideological.  The “fundamental change“, as outlined previously by the front man for the group, is domestic – exclusively domestic.  The Lightbringer doesn’t care about foreign policy stuff; all of that angle is sold to the multinationals and highest bidders.

  Foreign policy is not a thing for Teh One true bringer of enlightenment; their focus is USA domestically centered. In her capacity as Domestic Policy Advisor, Susan Rice was the guiding hand behind every element of Biden domestic policy.

  The microphone from the Obama basement does not transmit into the earpiece of Biden; it communicates into the two-way radio of Rice.

  If Susan Rice is departing, the question becomes how the club removes Biden from the 2024 race?  There are a multitude of approaches and leverages available for the Lightbringer’s team, which includes Deputy AG Lisa Monaco at Main Justice.

  The criminal activity of Hunter Biden, and the potential for outcomes – or lack therein, can be leveraged.  The direct connection to the action of the principal, “the big guy” Joe Biden, could be leveraged.

  The Biden administration’s interference in any number of related investigations can be leveraged, and… keep in mind…. it is not coincidental the evidence of the interference is manifest by the same team that would remove the principal.  Yeah, think about that for a moment.

  Put aside the 2024 contest participants for a moment (ie. the shiny things), and instead focus on what peripheral risks exist to Joe Biden that could be deployed at any moment to push him to a graceful off ramp.

  There are many club-installed insurance policies, political landmines all around Joe Biden.  Which one will they show him?

  Tyler Durden
  Thu, 04/27/2023 – 21:00

• China Denounces US Nuclear Deployment To Korea As "An Excuse To Create Tension"
  China Denounces US Nuclear Deployment To Korea As “An Excuse To Create Tension”

  China has issued a blistering statement in response to the agreement between Washington and Seoul for the US to send a nuclear ballistic missile submarine to South Korea. Chinese Foreign ministry spokeswoman Mao Ning said it shows the US is undermining the nuclear non-proliferation system and damaging regional peace and stability. 

  “The United States has put regional security at risk and intentionally used the issue of the [Korean] peninsula as an excuse to create tension,” Foreign ministry spokeswoman Mao Ning said in Beijing.

  

  “What the US does is full of Cold War thinking, provoking bloc confrontation, undermining the nuclear non-proliferation system, damaging the strategic interests of other countries, exacerbating tensions on the Korean peninsula, undermining regional peace and stability, and running counter to the goal of the denuclearization of the peninsula,” the Thursday statement said.

  She said it also highlighted Washington’s “selfish geopolitical interests” which puts the world at risk, given the new deployment of “US strategic assets”. 

  South Korean President Yoon’s visit to the White House on Wednesday culminated in the “Washington Declaration” agreement for deterring North Korea from carrying out an attack on the south, by erecting a “nuclear umbrella” that includes the Pentagon sending bombers and aircraft carriers, or nuclear submarines. 

  A nuclear-armed submarine has not docked in the Korean peninsula since the 1980s. President Biden on Wednesday attempted to introduce some nuance which is surely not going to provide any level of comfort for the Kim Jong-Un regime: 

  “We’re not going to be stationing nuclear weapons on the peninsula,” he said in a joint press conference with Yoon at the White House. “But we will have visits to ports, visits of nuclear submarines and things like that.”

  This is insane. Biden and his militaristic advisers are pushing an extremely dangerous policy in Korea. Once a hawk, always a hawk. “S. Korea, U.S. to form nuclear consultative body amid N. Korea’s growing threats.” https://t.co/kneGVsWj2R

  — Tim Shorrock (@TimothyS) April 26, 2023

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

  Now the region is bracing for an expected fierce response from Pyongyang, likely in the form of more threatening ballistic missile tests. There’s also speculation that Kim will order a nuclear weapons test, which would mark a first since 2017.

  Tyler Durden
  Thu, 04/27/2023 – 20:40

• Biological Females Deserve A 'Bill Of Rights'
  Biological Females Deserve A ‘Bill Of Rights’

  Authored by May Mailman via RealClear Wire,

  As a woman who spent her formative years in Kansas, taught Kansas City sixth-graders, and mentored hundreds of young girls through the Chiefs Cheerleaders organization, I was (and still am) devastated when I saw Kansas Governor Laura Kelly veto the Women’s Bill of Rights.

  

  That bill defines a woman, biologically.

  And while yes, I’m concerned that without a definition, the next generation of Kansas women will be harmed–without a say in preserving women’s shelters, women’s sports, girl’s schools, women’s scholarships, sororities, and so on–there’s something deeper than that.

  The truth.

  Do we live in such politically correct times that we must eliminate truth? That we must pretend that women, who are biologically unique from men, do not exist?

  Kansans are better than that. We have fought for truth since our establishment. We joined the Union as a free state (because of the truth that slavery is evil) despite the ugly battles to ensue. And, as Governor Kelly mentioned in both of her inaugural addresses, Kansas has long recognized the truth that women are equal citizens and was one of the first states to give women the vote.

  The truth is women exist as biologically distinct from men. We all know this, and we know it is important. Even Transportion Secretary Pete Buttigieg. He wants to dedicate federal transportation money to create female-shaped crash dummies for car safety tests, a move applauded by Democrats. Why? Because women are, on average, shorter and lighter than men. Cars are engineered to protect male-shaped dummies, leaving females 73% more likely to be injured in a car crash. We have this data because government agencies, for now, use biological definitions of men and women. Those definitions are worth preserving — lives depend on it.

  While female-shaped dummies are hardly the women’s rights issue of our day (and a questionable use of federal dollars), the underlying reality is undeniable. Women are biologically unique from men. We are in general smaller and lighter. Only we get pregnant and breastfeed. These biological truths leave us vulnerable and in need of respect and protection.

  We are vulnerable to domestic abuse: more than three women are killed by their husbands or boyfriends every day. We are not always able to participate in the full range of jobs, due to physical lack of strength or the need to protect our babies in the womb. And try as we might, even our Olympic record holders are outpaced by thousands of high-school boys every year.

  I recognize that Kansans face another moral calling: we are kind. The media has defamed the Women’s Bill of Rights as “anti-trans,” leaving some Kansans wondering whether supporting the bill is kind.

  Let’s be clear: it absolutely is.

  All Kansans are deserving of love and protection. By defining “woman,” the public can make informed and sometimes sensitive decisions about how best to accommodate trans-identifying individuals, while preserving safety, fairness, and privacy for women and girls. Failure to transparently define “women” leaves these high-stakes decisions in the hands of unelected judges and bureaucrats—whose interests often diverge from those of Kansas families.

  Despite the governor’s failure, the Kansas Legislature can still do the right thing. They can override Gov. Kelly’s veto this week. They can stand up for truth.

  The very First Amendment to our Constitution protects speech. Why? Because truth is vital to our nation. Today we face a basic question. Do women exist as distinct from men? We do. By recognizing that truth, we can protect and celebrate our mothers, wives, grandmothers, daughters, and granddaughters.

  Please, Kansas Legislature, do not erase us.

  May Mailman is a senior fellow at Independent Women’s Law Center. A former presidential legal advisor and litigator, Mailman also taught 6th grade in Kansas City through Teach for America and served as Student Body Vice President at the University of Kansas.

  Tyler Durden
  Thu, 04/27/2023 – 20:20

• US Expands Sanctions On Russia's FSB For "Holding Americans Hostage"
  US Expands Sanctions On Russia’s FSB For “Holding Americans Hostage”

  The Biden administration has taken initial action in response to Russia’s detention of Wall Street Journal reporter Evan Gershkovich, who has been in custody since his arrest March 29 in the city of Yekaterinburg on espionage charges. The end of this week marks one month since he’s been imprisoned.

  New sanctions have been imposed on Russian Federal Security Service (FSB) for taking Americans “hostage”, with a senior admin official telling Axios, “We do think it’s significant that the first round of sanctions are being announced specifically for this type of behavior, because we’re really concerned about this type of behavior.”

  

  The sanctions are intended to deter and punish those who hold Americans hostage, officials said. Gershkovich as well as Paul Whelan have been declared “unlawfully detained”. 

  However, the FSB is already under sanctions, thus these new measures are likely more targeted or an expansion after the initial wave. 

  Simultaneously on Thursday more sanctions were also unveiled for the intelligence arm of the Iranian Islamic Revolutionary Guard Corps (IRGC), and additionally four IRGC leaders, for their roles in the arrest and imprisonment of Americans. 

  The US is “showing that one cannot engage in this sort of awful behavior of using human beings as pawns, as bargaining chips, without paying consequences,” according to another a senior US official.

  A Moscow court this month denied a request that Gershkovich be placed under pre-trial house arrest…

  A Moscow court rejected an appeal from US journalist Evan Gershkovich to be freed from pre-trial detention, meaning he will stay in a former KGB prison until at least May 29 while a spying case against him is investigated https://t.co/ODD5UMqbnb pic.twitter.com/87gJ6oQftF

  — Reuters (@Reuters) April 18, 2023

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  It appears the US and UK coordinated dual action against Russian officials, with British Foreign Secretary James Cleverly announcing sanctions the same day against five Russian officials, saying they have “utter contempt for basic human rights.”

  Tyler Durden
  Thu, 04/27/2023 – 20:00

• Biden Challengers Issue Warning To Democrats If Biden Becomes Nominee
  Biden Challengers Issue Warning To Democrats If Biden Becomes Nominee

  Authored by Jack Phillips via The Epoch Times (emphasis ours),

  Two Democrat 2024 candidates issued warnings on Tuesday that President Joe Biden’s 2024 reelection launch won’t energize younger voters and has strayed from traditional Democrat values.

  

  “I think that video was very out of touch, and that’s what people are feeling,” self-help author Marianne Williamson, a Democratic candidate, told The Hill on Tuesday.

  “I think an entire younger generation would stay home in droves in response to what that video is advancing as the administration’s pitch to the American people.”

  Her remarks came after Biden announced that he will run for reelection, releasing a pre-recorded video that criticized former Republicans. Biden’s video and statement did not specifically name any of his GOP rivals, but he used images of the Jan. 6 Capitol breach and posted images of former President Donald Trump, Florida Gov. Ron DeSantis, and Rep. Marjorie Taylor Greene (R-Ga.).

  “Every generation has a moment where they have had to stand up for democracy. To stand up for their fundamental freedoms. I believe this is ours. That’s why I’m running for reelection as President of the United States. Join us. Let’s finish the job,” Biden, 80, wrote on social media. Vice President Kamala Harris, who is joining Biden, is also featured prominently in the clip.

  “For those of us committed to Democrats winning the White House in 2024, the president’s campaign announcement today was concerning,” Williamson, considered a long-shot candidate, wrote Tuesday. “His remark that he has fought so that everyone ‘is given a fair shot’ contradicts his refusal to fight for a higher minimum wage, permanentize the child tax credit, or side with railroad workers trying to negotiate for sick pay.”

  During the 2020 presidential campaign, Williamson was also a Democrat candidate but eventually bowed out in early 2020 before endorsing Sen. Bernie Sanders (I-Vt.).

  Activist Robert F. Kennedy Jr., who announced a Democratic 2024 presidential bid last week, also criticized Biden’s launch. Like Williamson, Kennedy—the son of former Sen. Robert F. Kennedy and nephew of John F. Kennedy—is viewed as a long shot against Biden.

  “I have known and liked Joe Biden for many years, but we differ profoundly on fundamental issues such as corporate influence in government, censorship, civil liberties, poverty, corruption, and war policy, among others. I look forward to engaging him in debates and town hall meetings,” he wrote.

  Read more here…

  Tyler Durden
  Thu, 04/27/2023 – 19:40

• DOJ Tells Court Teixeira A Flight Risk & May Have More To Leak, Makes Ed Snowden Comparison
  DOJ Tells Court Teixeira A Flight Risk & May Have More To Leak, Makes Ed Snowden Comparison

  Jack Teixeira, the Massachusetts Air National Guardsman accused of leaking classified US intelligence documents online, is being called a flight risk by the Justice Department. The DOJ in a Wednesday night court filing also said it fears he could possibly leak more info if he’s allowed release before he is tried. That’s what is currently before a federal judge in Massachusetts.

  During a Thursday hearing in a federal court in Worcester, the DOJ asserted that if he is released on bail, he might “further disseminate classified information” and “take refuge with a foreign adversary.”

  

  The DOJ further compared him to Edward Snowden, who for years has taken refuge with his wife and child in Russia, having also recently been granted Russian citizenship.

  ABC News described Thursday’s court hearing as follows: “Teixeira walked into the courtroom for his Thursday detention hearing handcuffed, wearing a long rosary necklace and an orange jumpsuit.” Further, “The 21-year-old looked at his family members sitting in the first two rows, and one woman in the front row began to cry.”

  Teixeira faces 25 year in prison and “potentially far more,” according to a DOJ detention memo, which argues further: 

  The lengthy potential maximum sentence could make him a significant flight risk, prosecutors argue, and the value of the information he obtained — as well as his low current net worth of about $19,000 — could make him vulnerable to offers from countries unfriendly to the U.S.

  As has become common in leak prosecutions, the US Justice Department maintains that Jack Teixeira must remain in pretrial detention because he has “knowledge” of classified information that he may continue to disclose to the press or public if released from jail pic.twitter.com/HKIylqQXZc

  — Kevin Gosztola (@kgosztola) April 27, 2023

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  The memo lays out that “He accessed and may still have access to a trove of classified information that would be of tremendous value to hostile nation states that could offer him safe harbor and attempt to facilitate his escape from the United States.”

  The government says it has proof that he intended to circulate classified or sensitive information among foreign countries and entities. According to DOJ filings…

  

  After hearing from both sides, federal magistrate judge David Hennessy said he needs more time to make a final decision on pretrial detention.

  

  Federal judges rarely, if ever, allow for bail in cases of federal or military employees caught leaking government secrets. Even an alleged leaker’s “knowledge” of the classified intel means they are kept locked up on fears they could still communicate secrets to outside entities. 

  Meanwhile, there are reports that the US Air Force has suspended two leaders of the national guard unit in which Teixeira served, pending the ongoing investigation into the extent of the unauthorized disclosure. Presumably the government is also looking into any possible co-conspirator scenarios, but so far he’s been presented as a lone actor.

  Tyler Durden
  Thu, 04/27/2023 – 19:20

• War Threatens Ukraine Auto Empire Of Biden Megadonor And Lender Who's Urging Greater U.S. Role
  War Threatens Ukraine Auto Empire Of Biden Megadonor And Lender Who’s Urging Greater U.S. Role

  Authored by Paul Sperry via RealClear Wire,

  Ukrainian President Volodymyr Zelensky isn’t the only one demanding more military assistance from President Biden to protect Kiev from Russian forces. So too is a close Delaware friend and financial backer of Biden, who owns several luxury car dealerships around the Ukrainian capital. 

  

  By sending billions of dollars in weapons and other military aid to help defend Ukraine, Biden also is securing the investments of millionaire car magnate John Hynansky, a Ukrainian American and longtime supporter of the president. 

  Over the course of Biden’s political career, Hynansky and his family have contributed more than $100,000 to his campaigns, including $8,000 in 2020, Federal Election Commission records show. Hynansky family members have been guests at the White House, and Hynansky has floated hundreds of thousands of dollars in loans to Biden family members, property records show. Hynansky’s son, Michael, who helps run his car empire, lent the use of his Lear jet to Biden when he was a senator.

  Since Russia started shelling the area around Kiev in February 2022, the U.S. government has spent $77 billion to help Ukraine rebuild and repel future attacks. 

  Government ethics watchdogs say the president’s friendship poses a potential conflict of interest that demands a full accounting of how the massive foreign aid, which includes open-ended humanitarian and economic assistance, has been used and who has benefited from it. On the military side, moreover, billions of dollars have gone to unspecified areas, such as “security,” “intelligence,” and “training.” In the past, Hynansky has supplied the police cars and ambulances in several regions of Ukraine. 
   
  The Biden administration helped Hynansky’s team in Ukraine prepare for the invasion, including placing calls to his top executive in Kiev 13 days in advance of Russian tanks crossing the border. It has sent billions of dollars to help rebuild war-torn cities where Hynansky operates the largest share of the country’s car showrooms and service centers specializing in Porsches, Jaguars, Land Rovers, and Bentleys, among other non-American brands he imports.  

  Although supporting Ukraine is a policy with widespread – though not universal – bipartisan support in Washington, the president’s close relationship with Hynansky illustrates larger ethical questions that have long surrounded Biden and his family members, who often have financial interests directly affected by policies he endorses. While serving as President Obama’s point man in Ukraine in 2015,  Biden famously demanded the firing of a prosecutor who was investigating a natural gas company, Burisma, that was paying his son Hunter $80,000 per month to serve on its board. Recent revelations of lucrative dealings with concerns tied to China’s Communist government while Joe Biden was both in and out of office have also raised questions about his current policy toward Beijing. 

  At a time Supreme Court Justice Clarence Thomas’s relationship with a generous billionaire is fueling complaints among Democrats about money and politics, Biden’s friendship with Hynansky also raises red flags.  

  Helping ‘My Very Good Friend’ 

  The connection between Joe Biden and Hynansky’s business ventures dates back to 2009, when the then-vice president made his first visit to Ukraine. In a speech in Kiev to government officials, Biden singled out Hynansky for praise, noting that he had just had breakfast with “my very good friend, John Hynansky.” (The previous year, Hynansky had individually contributed more than $33,000 to the Obama-Biden ticket primarily through the Obama Victory Fund, according to FEC records.)

  Within months of his hobnobbing with the vice president and local officials in the Ukrainian capital, Hynansky scored his first international development loan from the U.S. Overseas Private Investment Corporation, or OPIC, a federal body whose board was appointed by President Obama. Hynansky used the $2.5 million to break ground on a new headquarters and massive distribution center outside Kiev that prepares 8,000 cars for sale every year. In 2012, Hynansky landed another $20 million in OPIC funding to expand his dealership facilities, federal records show, helping him corner roughly 25% of the luxury car market in Ukraine. 

  “The proceeds of the loan will be used to construct and operate two new, state-of-the-art dealership facilities for Porsche and Land Rover/Jaguar automobiles, and repay any outstanding balance of an existing OPIC loan,” according to a 2012 OPIC financing document. 
   
  The terms of the OPIC loans state that all cars sold at his dealerships would be imported from Europe, not the United States, which meant that American-based automakers would not benefit from the taxpayer-backed venture. Under “U.S. economic impact,” the loan summary states that the jobs created from the deal would be created in “the host country, Ukraine,” not America. The terms of the loan also deferred Hynansky’s paying the principal on the loans for almost three years during construction, according to the OPIC document, which called the deferment a “grace period.” 
   
  The next year, acting as Obama’s point man in Ukraine, Biden pushed for the ouster of what he called the country’s Russia-friendly president and helped set up a coalition government in 2014 while promising millions in aid for the Ukraine energy industry. That same year, Hunter Biden, who is a close childhood friend of Hynansky’s daughter, Alexandra (who was listed as a sponsor on the OPIC loans), was appointed to the board of Burisma.

  In 2015, Joe Biden’s younger brother, James, and his sister-in-law, Sara Biden, became overextended financially after purchasing a six-bedroom, four-bathroom beach house plus guest house on Keewaydin Island, Fla., which was dubbed “The Biden Bungalow” after the vice president spent time there as well. Owing almost $700,000 in tax liens and contractor debts, the Bidens turned to Hynansky for help in lieu of a traditional lender. The car dealer came to the rescue with loans totaling $900,000. 
   
  The bailout occurred as Hynansky’s powerful American pal oversaw U.S. policy in Ukraine, and as OPIC authorized new loans allowing his company to build a new 7,300-square-foot Porsche dealership along the highway that connects downtown Kiev to the Boryspil International Airport. 
   
  Mortgage records initially reported the Bidens’ lender as “1018 PL, LLC,” obscuring Hynansky as the source of the loans. But the corporate entity is controlled by Hynansky, a 2018 document would later reveal. 
   
  The Bidens sold the waterfront house in 2018, and Hynansky released his lien on the property. However, Hynansky did not acknowledge full payment and satisfaction of the loans, according to the details laid out in documents recorded in Collier County, Fla. 
    
  Attempts to reach James Biden for comment were unsuccessful.

  Hynansky is politically connected in Kiev as well as Washington. President Zelensky also calls Hynansky a good friend and in recent years has bestowed state awards on him. Kiev Mayor Vitaliy Klitschko also is close to the prominent Wilmington businessman. 

  In August 2021, Hynansky secured a $24 million loan from the European Bank for Reconstruction and Development (EBRD) to expand its Ukraine operations into electric vehicles, including building new Renault and Volvo dealerships in Lviv. The U.S. is a founding member of EBRD and provides 10% of its capital. The Biden administration has been pushing such “green” deals. 
   
  “In the near future, we intend to increase our presence on the Ukrainian market,” Hynansky’s top official in Ukraine, Petro Rondiak, said at the time.  
   
  The White House did not respond to queries about the president’s relationship with Hynansky. 

  Though Biden is silent about his actions in Ukraine as they concern Hynansky and his businesses there, he has repeatedly denied that his son’s Burisma dealings influenced his official actions in Ukraine — which included handing over more than $50 million in U.S. support to assist the Ukrainian energy industry, an aid package Biden personally announced in Kiev the month before Burisma hired his son in 2014. 
   
  Republicans are investigating whether those funds were intended to help his son’s business interests in Ukraine. Less explored is whether U.S. tax money has also been used to protect or boost Hynansky’s Ukrainian investments. 
   
  Paul Kamenar, counsel to the National Legal and Policy Center, a Washington watchdog group. said that in dealing with Ukraine, Biden increasingly is drawing suspicion he may be putting his own political fortunes ahead of the national interest.  

  Many of Hynansky’s dealerships ‒ organized under the Winner Group Ukraine ‒ are located around the Kiev airport. Though the American head of Winner Group Ukraine fled the country after Russia’s invasion, the dealerships are still “operational,” according to a spokesperson at Hynansky’s headquarters in Delaware. All told, his Ukrainian subsidiary controls some 55 dealerships and service centers employing more than 800 workers. 

  Thanks to the shipment of U.S. weaponry ‒ including Stinger missiles, howitzers, and Abrams tanks ‒ properties around Kiev airport are now secure enough that Biden was able to use the train station just 19 miles away to visit Zelensky during February’s anniversary of the invasion. And though Boryspil International Airport is still closed, Ukrainian forces have retaken strategically important suburbs of Kiev near the airport. 

  Since taking control of the House, Republicans have threatened to curb aid to Ukraine and audit the massive funds the Biden administration and the Democratic-controlled Congress have funneled there. 

  Winner executives have been clamoring for more U.S. military aid and direct intervention by Biden and other Western leaders. Before the invasion, the company had reported its best year in Ukraine. 
   
  Rondiak, Hynansky’s top executive in Ukraine, has called for greater military intervention from America and the West, including setting up a “no-fly zone” over Ukrainian airspace. “Dear western ally politicians,” he tweeted in December, “when will the gloves come off?” 
   
  Added Rondiak, “The flow of weapons must increase quickly.” He’s also called for a military counteroffensive “to punish Putin.” 
   
  Although car sales are down, he said virtually all of Hynansky’s “dealers are operating” in Ukraine thanks to Biden administration support. He also praised the State Department for calling him to warn him to leave Kiev for his own safety two weeks ahead of the invasion.  

  U.S. Aid ‘as Long as It Takes’  

  Biden has pledged to keep sending U.S. funds to Ukraine “as long as it takes,” continuing indefinitely an already unprecedented spending stream. Support to Ukraine from other countries lags far behind the United States. Britain is providing less than 10% of what America is sending there, despite ranking second in total aid, according to Council on Foreign Relations data. 
   
  Kamenar suggested that a special inspector general may be needed to audit U.S. spending in Ukraine, similar to the one Congress created to monitor U.S. aid and reconstruction contracts in Afghanistan.  

  House Oversight Committee Chairman James Comer said he suspects the kind of fraudulent and wasteful spending the Pentagon IG uncovered in Afghanistan “could be happening in Ukraine, where we are spending a significant amount of tax dollars.” 
   
  “I know some of the tax dollars are going for ammunition. I know some of it’s going for humanitarian aid,” Rep. Comer told CNN last week. “But we hear that not all of it is.”  

  Some administration critics say that Biden has done a poor job of explaining why supporting Ukraine is in America’s interests. Irrespective of that complaint,  the Biden’s financial entanglements with Hynansky muddy the waters – and have gone unreported in the news coverage about his intense focus on the embattled country. 
   
  Long before Hunter Biden landed a lucrative oil and gas deal in Ukraine, despite having no prior experience inUkraine or the energy industry, Biden benefactor Hynansky began investing heavily in Ukraine — with Joe Biden’s help. 

  Paul Sperry is an investigative reporter for RealClearInvestigations. He is also a longtime media fellow at Stanford’s Hoover Institution. Sperry was previously the Washington bureau chief for Investor’s Business Daily, and his work has appeared in the New York Post, Wall Street Journal, New York Times, and Houston Chronicle, among other major publications.

  Tyler Durden
  Thu, 04/27/2023 – 19:00

• Montana Legislature Votes To Remove Trans Lawmaker From House Floor For Rest Of 2023
  Montana Legislature Votes To Remove Trans Lawmaker From House Floor For Rest Of 2023

  After a series of activist disruptions and bizarre rants, trans lawmaker Zooey Zephyr, who was initially censured, is now banned from the floor of the Montana State Legislature for the rest of 2023.  Zephyr (a biological male identifying as a trans bisexual woman), is a representative from District 100 of Montana centered in Missoula.  Being one of the few districts in the state with a dominant college culture and a majority Democrat population, the trans label helped Zephyr win easily in 2022.

  The representative “came out” as trans only a couple years priors to his election, with little identifiable background other than some notoriety as a video game competitor. 

  Montana is now considering a number of bills designed to protect children from trans indoctrination in schools, sexualized drag shows as well as banning sex-change surgeries and hormone therapies for kids.  It is one of many states acting to contain the political indoctrination of children by trans activists and the far-left.  Zephyr insinuated that should they pass bills such as SB 99 into law blood might spill.  He states “I hope the next time there is an invocation when you bow your heads in prayer, you see the blood on your hands.” 

  “Trans people exist,” State Rep. Zooey Zephyr of Montana said, as she rebuked a bill that would ban gender-affirming care for transgender minors, adding that denying care is “tantamount to torture.” Zephyr is the Legislature’s first transgender lawmaker. https://t.co/Gr5rAT8dCp pic.twitter.com/he8Q2W3ats

  — The New York Times (@nytimes) April 21, 2023

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

  He also suggested that “forcing” children to go through puberty was akin to “torture.”

  The mantra of “blood on your hands” has become prominent after the recent mass shooting at a Christian school in Nashville, TN by transgender activist Audrey Hale.  The assertion being that conservatives (rather than the trans shooters) are the people responsible for any such events because they are passing laws to block trans surgeries for children.  Restrictions on gender based procedures and chemical therapies for minors are often compared to “trans genocide,” ostensibly because the only way trans activists can perpetuate their numbers is for children to be converted.

  The statement has been interpreted by Montana lawmakers as threatening language, leading to the decision to censure and then remove Zephyr.

  

  Media proponents argue that banning Zephyr from debating on the floor is censorship of a “marginalized voice”, but the action is legal within Montana and Zephyr will still be able to vote on all bills remotely. Rules against the breaching of decorum on the house floor are a means to force legislators to present facts and evidence instead of utilizing personal attacks and rhetoric.  Montana’s legislature determined that Zephyr broke decorum and acted unprofessionally.  

  The event is perhaps a natural reaction to an ideology seen by many as “unhinged,” with conservative states growing weary of activists trying to justify and rationalize the targeting of minors.  Democrats have been attempting to obscure the reality that most of the conservative bills they oppose revolve around protecting children, leaving adults free to make their own decisions.  Instead they have sought to conflate the legislation with “threats to democracy,” making any meaningful debate almost impossible.     

  Tyler Durden
  Thu, 04/27/2023 – 18:40

• CDC Officials Make False Statements About Possible COVID-19 Vaccine Side Effects
  CDC Officials Make False Statements About Possible COVID-19 Vaccine Side Effects

  Authored by Zachary Stieber via The Epoch Times (emphasis ours),

  Officials with the U.S. Centers for Disease Control and Prevention (CDC) have made multiple false statements this month regarding possible COVID-19 vaccine side effects, continuing a trend of mis- and disinformation from the public health agency.

  

  Dr. Tom Shimabukuro, a top CDC official, recently repeated the lie that the agency has never detected a safety signal for ischemic stroke for the old COVID-19 vaccines.

  “No safety signals were detected for ischemic stroke for primary series or monovalent boosters for Pfizer or Moderna vaccines in U.S. and global monitoring,” Shimabukuro told the Advisory Committee on Immunization Practices, a CDC advisory panel, on April 19.

  CDC researchers identified ischemic stroke as a safety signal for the original Pfizer and Moderna COVID-19 vaccines, according to files obtained by The Epoch Times. More recently obtained documents show the CDC detected the signal as early as May 6, 2022.

  The CDC acknowledges in official documents that any adverse events following COVID-19 vaccination that meet a certain criteria constitute “a safety signal.”

  Shimabukuro, who also made the false claim during an earlier meeting in February, has not responded to requests for comment.

  A CDC spokesperson previously doubled down on the claim, falsely stating that Shimabukuro was correct.

  Ischemic stroke happens when the brain fails to get enough blood supply, according to the Mayo Clinic. It causes brain cells to die within minutes and often leads to death.

  Another unnamed CDC official falsely told NBC that the agency has not found data “suggesting a link between COVID-19 vaccines and tinnitus,” a condition that has symptoms such as constant ringing in the ears.

  The CDC identified tinnitus as a safety signal in its analysis of possible signals in data from the Vaccine Adverse Event Reporting System (VAERS), according to the files obtained by The Epoch Times.

  Bert Kelly, a CDC spokesman, told The Epoch Times in an email: “To date, we have no data to support tinnitus and its link to COVID-19 infection or vaccination.”

  After becoming aware of reports to the adverse event system of tinnitus after COVID-19 vaccination, the CDC analyzed data from a different surveillance system called the Vaccine Safety Datalink. CDC researchers did not identify any “clustering of tinnitus diagnoses” in the datalink system in the 70 days after COVID-19 vaccination, according to Kelly.

  He did not make the data available.

  Barbara Loe Fisher, co-founder and president of the National Vaccine Information Center, noted that there have been more than 24,000 reports of tinnitus submitted to VAERS after COVID-19 vaccination.

  “There is mounting evidence in the medical literature that tinnitus involves inflammation in the brain,” Fisher said, pointing to several studies. “CDC officials should be taking the tinnitus signal seriously and actively pursuing every available avenue of research to find out what is going on rather than doing everything they can to quickly dismiss the reported risk for developing chronic ringing in the ears after COVID shots.”

  Tinnitus is listed as a potential side effect of Johnson & Johnson’s COVID-19 vaccine and regulators in some countries list the condition as a potential adverse event following AstraZeneca’s COVID-19 vaccine. Moderna and Pfizer haven’t been formally linked with tinnitus, though some research has found a statistically significant increase in tinnitus following COVID-19 vaccination, which researchers said “suggest an association between the COVID-19 vaccines” and tinnitus.

  Read more here…

  Tyler Durden
  Thu, 04/27/2023 – 18:20

• Amazon Erases 12% Gain, Turns Red After Revealing Sharp Slowdown In April AWS Growth
  Amazon Erases 12% Gain, Turns Red After Revealing Sharp Slowdown In April AWS Growth

  Update (6:00pm): Everything was going ok, with AMZN stock soaring as much as 12% and then suddenly AMZN stock erased all gains and turned red during the company’s analyst earnings call (the media call held an hour earlier went by ok).

  There was initially some confusion what sparked the plunge, but it eventually was revealed that during the call, Amazon said that “Customers continue to evaluate ways to optimize their cloud spending in response to these tough economic conditions in Q1 and we are seeing these optimizations continue into Q2 with April revenue growth rates about 500bps lower than what we saw in Q1.”

  As noted earlier (see below), AWS did a little better than analysts had expected in 1Q, but that might not be worth much if growth continues to drift toward single digits.

  The company tried to provide some favorable spin with the CEO saying that he is “pretty optimistic that we have a chance not just to recover to where we were pre-pandemic in terms of operating margin, but I think there is additional upside with some of the opportunities we’ve identified” but by now it was too little too late, and the stock had erased all of its earlier gains and was on the verge of turning red for the day.

  

  * * *

  With three out of five FAAMG stocks – which of course is now known as GAMMA ever since Facebook’s ignominious rebranding to Meta (at least until the company  quietly changes its name to MetAI) – having already reported solid results helping push the market back into the green for the week, investors are keenly looking to Amazon earnings after the close today to (almost) round out the picture for the resurgent market generals while could set the tone for the rest of 2023… or at least until the Fed meeting next week.

  As previewed earlier, Amazon is expected to post sales of $125 billion, up 7.1% from a year earlier. According to Bloomberg, analysts and investors will be watching for insights into consumer spending patterns, both in terms of confidence in the overall economy and with regard to how much they are spending online vs. in stores. Investors will also be watching to see how Amazon’s cloud computing business and advertising business are holding up.

  Investors will also want to see signs that CEO Andy Jassy’s cost-cutting measures – which included cutting 27,000 corporate employees – are helping to slash expenses and boost profits. Amazon had 1.5 million employees at the end of 2022, mostly blue-collar workers in its warehouses. In addition to the corporate cuts, Amazon tends to trim its warehouse workforce after the holiday shopping season.

  But by far the most important variable will be Amazon Web Services, which is expected to post sales growth of 14%, the slowest since Amazon began breaking out the cloud-computing division’s performance with data going back to 2014. AWS almost always accounts for more operating income than the rest of Amazon’s businesses combined. But the unit has been hit hard as businesses pare their technology spending. Among the biggest questions for Amazon during this year of cost cutting and layoffs is how low AWS’s growth might sink.

  What about Artificial Intelligence, which has been the core theme of Microsoft, Google and Meta’s earnings calls so far this week. How will Amazon play it? The company’s shown its hand, to an extent, on how generative AI will boost their business. But the focus is on AWS and targeting cloud customers (rather than Amazon’s consumer-facing arms).

  Finally, while Amazon stock has badly underperformed the rest of the GAMMA names, heading into today’s earnings the stock gained and was on track to notch its biggest two-day jump since February. So far this year, the shares are up about 31%.

  So with all that in mind, here is what Amazon just reported for its just concluded quarter

  • Q1 EPS 31c,up from a 38c loss YoY, and beating the estimate of $0.21
  • Q1 Net sales $127.358 billion, +9.4% y/y, beating the estimate of $124.7 billion
    • Online stores net sales $51.10 billion vs. $51.13 billion y/y, beating estimate $50.57 billion
    • Physical Stores net sales $4.90 billion, +6.6% y/y, beating estimate $4.77 billion
    • Third- Party Seller Services net sales $29.82 billion, +18% y/y, beating estimate $28.7 billion
    • Subscription Services net sales $9.66 billion, +15% y/y, estimate $9.29 billion
    • North America net sales $76.88 billion, +11% y/y, beating estimate $75.54 billion
    • International net sales $29.12 billion, +1.3% y/y, beating estimate $27.65 billion
    • Third-party seller services net sales excluding F/X +20% vs. +9% y/y, beating estimate +13.9%
    • Subscription services net sales excluding F/X +17% vs. +13% y/y, beating estimate +11.8%
    • And the most important one: AWS net sales $21.35 billion, +16% y/y, beating estimate $21.03 billion
      • Amazon Web Services net sales excluding F/X +16% vs. +37% y/y, estimate +13.8%
  • Operating income $4.77 billion, +30% y/y, beating the estimate $3 billion
  • Operating margin 3.7% vs. 3.2% y/y, beating the estimate 2.38%
  • North America operating margin +1.2% vs. -2.3% y/y, beating the estimate +0.34%
  • International operating margin -4.3% vs. -4.5% y/y, beating estimate -8.49%
  • Fulfillment expense $20.91 billion, +3.1% y/y, beating estimate $20.72 billion
  • Seller unit mix 59% vs. 55% y/y, estimate 56.8%

  Of note, FX headwinds were a factor in the quarter with AMZN booking $2.4 billion unfavorable impact from year-over-year changes in foreign exchange rates throughout the quarter. Excluding that impact, net sales increased 11% in 1Q compared with first quarter of 2022.

  It’s also notable that a big positive for Amazon was its continued revenue mix shift to providing services and advertising to independent merchants as opposed to selling goods directly to shoppers as a retailer. This is a more profitable business model for Amazon with less risk on inventory. Advertising revenue grew by more than 21% and seller services by 18%. Meanwhile, fulfillment expenses grew by just 3% and shipping costs by just 2%. Amazon is making more money off of its e-commerce and logistics operation while keeping expenses in check.

  Bottom line here, Amazon beats expectations for Q1 across the board, and most importantly AWS came in well above expectations on both revenue growth and profit margin basis, which is why AMZN stock is seeing a buying frenzy after hours pushing it more than 10% higher.

  There is another reason for the surge: the company’s Q2 guidance was stellar:

  • Sees net sales $127.0 billion to $133.0 billion, in line with the sellside estimate $130.1 billion;  this represents growth between 5% and 10% compared with Q2 2022 and “anticipates an unfavorable impact of approximately 30 basis points from foreign exchange rates.”
  • Sees operating income $2 to $5.5 billion, estimate $4.74 billion

  The Q2 outlook, with sales of up to $133 billion and operating income of up to $5.5 billion, indicates it expects the positive momentum to continue.

  In short, solid earnings beating expectations across the board, while guidance came generally in line with Wall Street expectations.

  Commenting on the quarter, CEO Andy Jassy said that “we like the fundamentals we’re seeing in AWS, and believe there’s much growth ahead.” He added that “our Advertising business continues to deliver robust growth, largely due to our ongoing machine learning investments that help customers see relevant information when they engage with us, which in turn delivers unusually strong results for brands.”

  Digging into the numbers we find that operating margins soared, more than doubling form 1.8% last quarter which was the lowest in at least five years, to 3.7%, smashing the consensus est of 2.38%.

  

  While the market was clearly happy with the overall profit margin, it also appeared happy with the profit margin breakdown where the AWS profit margin dipped to the lowest since 2017. At the same time, international operating margin remained negative, with US online sales still just barely turned green, generating a 1.2% profit margin.

  

  Maybe the AWS profit margin could have been better (which would be difficult when competitors are now aggressively cutting prices to capture market share), the silver lining was that revenue growth of 16% Y/Y to $21.354 billion, was better than the expected $21.03 billion.

  Jassy had said in his annual shareholder letter a couple of weeks ago that AWS was facing some short-term headwinds. That idea is carried through into the earnings statement, where he says:

  “While our AWS business navigates companies spending more cautiously in this macro environment, we continue to prioritize building long-term customer relationships both by helping customers save money and enabling them to more easily leverage technologies like Large Language Models and Generative AI with our uniquely cost-effective machine learning chips (‘Trainium’ and ‘Inferentia’), managed Large Language Models (‘Bedrock’), and AI code companion CodeWhisperer. We like the fundamentals we’re seeing in AWS, and believe there’s much growth ahead.”

  And while AWS sales growth came in strong, the sales growth for Advertising Services came in even stronger at 23% YoY, a 35.5% beat relative to consensus.

  On the expense side, we already know that AMZN has joined other companies in laying workers off, but a bigger question is whether its employees have plateaued and whether it will start replacing them with robots. Well, in Q1, employment dropped 10% to 1.47 million, well beyond the 27,000 corporate layoffs; furthermore Amazon is shedding blue collar warehouse workers as well, which is typical in the first quarter.

  

  Elsewhere, fulfillment expenses, the cost of packing and shipping goods, were also close to expectations, indicating spending is under control.

  

  The market was also focused the company’s revenue growth forecast which is in a range of $127-$133BN (midline at $130BN), which was on top of the $130.1BN expected. The problem is that at just 7.2%, this would be tied for the lowest annual growth in company history (just Q2 2022 would be comparable).

  

  Finally for those asking, Amazon has clearly also jumped on the AI bandwagon, mentioning the phrase “AI” 6 times in the earnings release, and the full phrase “artificial intelligence” twice.

  Responding to the results, Bloomberg Intelligence analyst Poonam Goyal said that “Amazon did much better than expected, especially in the face of inflation and thoughts from other company leaders who have said consumer spending has slowed recently. It’s quite promising that Amazon is still able to deliver. We don’t think it is promotions. We think it is demand, and consumers are flocking to Amazon for day-to-day needs.”

  The market agreed, and its reaction was euphoric at least initially, with the stock spiking as much as 12% higher in kneejerk before dipping modestly, but still solidly in the green on the day.

  

  Tyler Durden
  Thu, 04/27/2023 – 18:10

• Sen. Tim Scott Introduces Bill To Divert $15 Billion From IRS To Border Security
  Sen. Tim Scott Introduces Bill To Divert $15 Billion From IRS To Border Security

  Republican Senator Tim Scott of South Carolina introduced legislation on Wednesday that would redirect $15 billion from the $80 billion in new funding for the IRS in order to beef up security on the southern US border.

  

  According to the Daily Caller, the ‘Securing Our Border Act’ would specifically fund border inspections to allow law enforcement officials to better combat the illegal trafficking of drugs and other substances before the enter the United States.

  The bill would also fund border wall construction and other technologies to help with tracking and enforcement efforts along the southwest border.

  Additionally, the legislation would give retention bonuses to Border Patrol agents and end the “catch and release” policy. –Daily Caller

  GOP officials have argued that the $80 billion in new IRS funding – which will be used to hire more than 87,000 new IRS employees – will increase audits on poor and middle-class Americans, despite a pledge by the Biden administration to go after wealthier individuals.

  “We have a crisis on our southern border. Rather than putting resources in place to address this major national security and humanitarian catastrophe, the Biden administration and congressional Democrats chose instead to spend $45 billion of taxpayer money to hire an army of IRS agents to audit the middle class,” Scott told the Caller before introducing the bill, adding “While President Biden continues to drop the ball, I’m introducing legislation to fund border infrastructure and give our Border Patrol agents the tools they need to help stop the unaddressed flows of illicit goods and persons into this country. Americans need more border agents keeping them safe – not thousands more IRS agents looking over their shoulder.“

  As the Caller further notes, the bill has five original co-sponsors; Republican Sens. Bill Cassidy of Louisiana, Steve Daines of Montana, Joni Ernst of Iowa, Cynthia Lummis of Wyoming, Mike Rounds of South Dakota, and James Lankford of Oklahoma. It has also been endorsed by the 18,000-member National Border Patrol Council.

   

  Tyler Durden
  Thu, 04/27/2023 – 18:00

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