65.9 F
Chicago
Monday, September 14, 2026
Home Blog Page 1187

Renter Nation Returns: Multi-Family Unit Starts Hit 2 Year Highs But Permits Plunge

0
Renter Nation Returns: Multi-Family Unit Starts Hit 2 Year Highs But Permits Plunge

On the heels of homebuilder sentiment hitting COVID lockdown lows…

Source: Bloomberg

…US housing starts and permits data was mixed in July with Starts surging 5.2% MoM (far better than expected and following an upwardly revised 5.9% MoM jump in June). However, Building Permits disappointed, dropping 2.8% MoM (vs 0.5% MoM decline expected)…

Source: Bloomberg

This is the fourth month in a row of declining building permits (the most forward-looking indicator for the US housing market), now at its lowest since the COVID lockdowns…

Source: Bloomberg

The decline in Permits was dominated by multi-family units (down 9.9% MoM) while Housing Starts saw multi-family units jump 11.6% MoM in July (after surging 34.5% MoM in June)…

Source: Bloomberg

The number of multi-family unit starts is at the highest since June 2023…

Source: Bloomberg

But, and it’s a big but, there is a big housing problem: US home construction pipeline is hopelessly clogged up, with completions crashing to 3 year low as builders prefer to hold off completing current units rather than go to market now, as they expect even higher prices.  

Source: Bloomberg

Cartel behavior to limit supply? Or did the deportation of all those illegals leave the country without anyone who knows how to build a house?

The question we have for the new guy at the BLS is simple – if housing construction is crashing, why aren’t construction jobs?

Source: Bloomberg

It appears Renter Nation is back and home (buying) affordability remains at historically lows

Will lower Fed Fund rates do anything to lower mortgage rates? Or will the implied curve steepening further crush affordability? Dear Mr. Trump, be careful what you wish for.

Tyler Durden
Tue, 08/19/2025 – 08:42

The Art Of The Tariff

0
The Art Of The Tariff

Authored by Michael Talbott via BondVigilantes.com,

Tariff headlines are designed to provoke and grab attention, with striking percentages quoted that appear to signal President Trump’s latest stance, framing the narrative around which country stands to win, and which to lose.  

But the reality is far more nuanced than what a headline number suggests. Recently, we’ve seen that tariffs are driven not just by economic considerations, but increasingly by political motives

In this blog, I want to show why headline numbers can be misleading by highlighting the differences between two particular countries, Brazil and Vietnam, with both appearing to be on the opposite ends of the tariff spectrum. On paper, Brazil faces a 50% tariff on its exports to the US, while Vietnam faces just 20% after agreeing a trade deal with the US. By looking at headline numbers alone, you may be forgiven for concluding that Brazil’s economy is going to be worse hit than Vietnam’s, but once you dig into the finer details, and think about why these tariffs are in place, the conclusion is worlds apart.  

When Trump first rolled out tariffs on Liberation Day, the logic was simple, albeit slightly misguided: target countries with big trade surpluses with the US i.e. target countries that exports more than it imports from the US. Based on this approach, Brazil faced the minimum 10% due to the fact they run a trade deficit with the US, whilst Vietnam received a level of 44% reflecting their large trade surplus with the US. So far so good. But in today’s environment, a mere four months post Liberation Day, the story is very different. This reversal reflects the changing scope of the tariffs from an economic tool, to a political tool designed to shape sovereign issues overseas.

The table below provides some examples of how much tariff levels have changed between Liberation Day and now. We can see that Brazil and India stand out as having received increasing levels and we know that these have been politically driven. India for their continued purchase of Russian oil, and Brazil for reasons we will discuss a little later. For those that have seen decreases, the driver has been agreeing trade deals with the US administration.

Source: M&G, Bloomberg, as 12 August 2025. Stated tariff levels may vary across goods.

The more recent escalation for Brazil came after former president Jair Bolsonaro was indicted for allegedly plotting a coup d’état to overturn the 2022 election, which he lost to Luiz Inácio Lula da Silva.

Prosecutors accused Bolsonaro and his allies of planning to nullify the election results with the charges being accepted by Brazil’s Supreme Court in early 2025, and the US response was swift: tariffs as a political weapon to support one of his closest allies in Bolsonaro. This isn’t new territory for Trump. He has long seen tariffs as a tool for leverage, but the speed and severity of this move underscores how far trade policy has drifted.

However, despite the headline-grabbing 50% tariff, the economic impact on Brazil is relatively muted. The US is not a major trading partner for Brazil, accounting for less than 10% of Brazil’s total exports. In fact, Brazil is one of the more closed-off economies when looking at major emerging markets. Moreover, most of Brazil’s high-value exports to the US, such as energy products, aircraft, and industrial materials, are exempt from the steep tariff and remain at 10%. The 50% rate mainly hits agricultural goods like coffee and beef, which, while symbolic, represent a smaller share of Brazil’s overall trade portfolio. And so, in practice, the tariff is more political theatre than it is an economic headwind for Brazil. And for this reason, it may be very unlikely to expect Lula to yield.

Vietnam, on the other hand, is far more exposed. The US is Vietnam’s single largest export market, absorbing roughly 30% of its total exports, primarily in electronics, textiles, and furniture. Even after the recent trade deal that capped tariffs at 20% (down from a threatened 44%), the hit is significant because Vietnam’s economy is deeply dependent on US demand. Add to that the complexity of transshipment rules, which impose 40% tariffs on goods suspected of being Chinese-origin, and compliance costs rise sharply. For Vietnam, this isn’t just a headline; it’s a structural challenge that will weigh on the economy.

The vulnerability gap becomes even clearer when you look at trade balances. Since 2018, Vietnam’s surplus with the US has ballooned, a direct consequence of supply chains shifting during the US-China trade war in 2018-19. Brazil, by contrast, has maintained its steady deficit.

Source: M&G, Bloomberg, US Census as at  31 July 2025

And in the face of these varying vulnerabilities, what are the markets telling us? The cost of buying insurance on Vietnamese and Brazilian debt has fallen year-to-date, but more so for Brazil. During the same period the Brazilian real has strengthened against the dollar by c.14.5%, while the Vietnamese dong has weakened c.3%. Now, currencies and credit spreads are influenced by a whole host of factors, so it would be wrong to claim these moves are entirely a direct reflection of tariffs. But markets are a good barometer of stress, and if there were genuine fears about Brazil’s economy after the tariff hike, we could expect to see it in FX or credit pricing… but we don’t.

Source: M&G, Bloomberg, as 12 August 2025. Shaded area denotes Liberation Day announcement.

And so what we can conclude is that whilst tariffs may dominate headlines, they rarely capture the full picture.

Brazil and Vietnam offer an  example of how the surface-level numbers obscure the economic impact. As we’ve seen, Brazil’s steep tariff hike is more about political signalling than economic punishment, while Vietnam’s seemingly lighter burden carries far heavier consequences due to its structural reliance on US trade. It would also seem that markets appear to understand this nuance better than the headlines do.

As we’re finding in today’s politically charged environment, whereby US trade policy is increasingly moving away from economic basis, it’s not enough to track the numbers, we need to understand the fine print that will determine the overall impact. Only then can we separate the noise from the signal.

Tyler Durden
Tue, 08/19/2025 – 06:30

Japan To Launch First Yen-Based Stablecoin

0
Japan To Launch First Yen-Based Stablecoin

The Nikkei reported that Japan’s Financial Services Agency (FSA) could approve the issuance of Japan’s first yen-denominated stablecoin as early as this fall, joining a global scramble to issue stablecoins denominated in one’s own currency (or linked to one’s stock, in the case of multiple publicly traded companies).

The report states that fintech company JPYC will register as a funds transfer service provider and begin selling its “JPYC” stablecoin within a few weeks. JPYC has been issuing a prepaid payment instrument called “Prepaid JPYC”, but has been preparing to issue and distribute “JPYC”, an electronic payment instrument exchangeable for Japanese yen, under the revised Payment Services Act, which came into effect in 2023.

The goal is to issue 1 trillion yen ($6.81 billion) of the JPYC stablecoin over three years. It has already drawn interest from multiple parties, including hedge funds that invest in cryptocurrencies and offices that manage the assets of wealthy individuals. Expected uses include carry trades, which aim to profit from interest rate differentials.

While attention has been focused mainly on USD stablecoins, the reported approval of a yen-based stablecoin could provide impetus to the digital currency ecosystem in Japan. In results briefings by fintech companies in Jul-Aug, some expressed expectations for domestic stablecoins. For the banking industry, Goldman sees potential for fee income from areas such as custodial services and collateral management. According to JPYC, its trust-type stablecoin is issued on the Progmat Coin platform of Mitsubishi UFJ Trust and Banking.

The Nikkei article cites cross-border remittances, corporate payments, and asset management as potential applications.

However, challenges remain. One concern is the risk of fluctuation and a potential decoupling from the assumption that each stablecoin unit would trade at one yen. While stablecoins generally have lower volatility than cryptocurrencies, in legal tender one yen is always worth one yen.

Meanwhile, Goldman sees debate soon focusing on anti-money laundering measures, e.g., remittances to recipients not subject to KYC restrictions in the event that stablecoins were used/traded by unspecified parties to be redeemed for legal tender or circulated on a blockchain.

Tyler Durden
Tue, 08/19/2025 – 05:45

“A Matter Of Days Before They Start Killing In The Open Streets”; Serbia President Decries Opposition Protests

0
“A Matter Of Days Before They Start Killing In The Open Streets”; Serbia President Decries Opposition Protests

Via Remix News,

Serbian President Aleksandar Vučić said that the opposition’s protests have become so violent that it is “literally a matter of days before they start killing in the open streets.”

In response, he stated that the country’s leadership will make “surprising” decisions within a few days regarding tough actions against anti-government protesters after days of demonstrations that have turned violent.

“They’ve done everything else, all that’s left is for them to start killing. I’m not exaggerating, I’m saying it’s a matter of days for that to happen. It’s literally a matter of days for them to start killing in the open streets,” he stated.

The Serbian president also stated that “the violence is a sign of complete weakness” and promised to “punish the rioters.”

Vučić said his government will not back down against what he said was external pressure.

“We will resist external pressure and we will prevail,” he said.

According to the Serbian president, if there are no more decisive measures against the violence on the streets, the moment will come when someone will be killed.

Vučić called an emergency press conference for Sunday after more than nine months of anti-government protests in Belgrade, Novi Sad and Valjevo, sparked by the partial collapse of the Novi Sad railway station, which have turned increasingly violent in recent days. Protesters have clashed with members and supporters of the ruling Serbian Progressive Party (SNS) and police, and have set fire to the SNS party office.

The canopy of the Novi Sad railway station collapsed on Nov. 1 last year, killing 16 people. This sparked nationwide protests that continue to this day. 

The demands from protesters included finding and holding accountable those responsible for the accident, as well as the publication of documents related to the renovation of the train station. They are also demanding the release of students and teachers detained during the protests, and increasing the budget for higher education by 20 percent. The government says the demands have already been met, making further protests unjustified.

The competent authorities have charged 16 people with negligence and endangerment, and the Novi Sad High Prosecutor’s Office has launched an investigation into suspicions of possible corruption during the renovation.

The railway station building, which was opened in 1964, was renovated in several waves in 2021-2022, and work continued last year. Minister of Construction Goran Vesic announced last July that the renovation was complete and the entire building could be used again.

The minister has since resigned, but said he does not consider himself responsible for the tragedy. However, the mayor of Novi Sad and the prime minister have accepted responsibility. Milan Djuric and Milos Vucevic announced their resignations at the end of January. The new prime minister and government were elected by parliament on April 16.

Read more here…

Tyler Durden
Tue, 08/19/2025 – 05:00

Putin Pressures Israel To Transfer Sprawling Christian Site In Jerusalem To Russia

0
Putin Pressures Israel To Transfer Sprawling Christian Site In Jerusalem To Russia

An ancient Christian area inside the walled Jerusalem Old City is at the center of diplomatic tensions between Russia and Israel, and President Putin is now openly requesting that the Netanyahu government hand over owndership to Russia.

The Alexander Courtyard is a 1,300-square-meter located near the Church of the Holy Sepulchre in the Christian Quarter, and is currently front and center of the intense ownership dispute. In the packed and densely populated Old City, land of this size is huge and very significant, considering every little meter of property has been hotly fought over for many decades.

Holy Trinity Cathedral in the Russian Compound, Wiki Commons

The site, also often called simply the Russian Compound, includes the Orthodox Church of St. Alexander Nevsky – named after a 13th-century Russian warrior-prince, and has been at the heart of a long-running legal and diplomatic conflict between Israel and Russia.

The matter was reportedly raised directly during recent discussions between Russian President Vladimir Putin and Israeli Prime Minister Benjamin Netanyahu, which led to the PM appointing a special committee of senior Israeli ministers in order to handle the sensitive matter

Officials throughout the drawn-out saga have pointed out that President Putin views the issue as deeply personal, not just political.

Ynet News has reviewed that the Imperial Orthodox Palestine Society (OPS) has maintained de facto control over the Alexander Courtyard since its establishment in 1890.

Historical Ottoman documents list it as belonging to “the glorious Russian Empire” – though the OPS had also made formal purchase of the property.

But the Russian government has used this Ottomoman historic reference to argue that the land should now fall under Russian state ownership rather than OPS.

The OPS is a scholarly and charitable organization and insists that it is the sole owner, with both sides are appealing to the Israeli government to uphold and recognize their respective rights and claims.

Stillframe of aerial view of the Russian compound.

Putin’s invervention has continued going back at least a half-decade. Adding to the complexity of the legal matter, in 2020 Netanyahu designated the Alexander Courtyard a “holy site” under British Mandate-era law.

In Israeli law this gives the government greater ability to decide on the matter, but the pressure from Moscow has ramped up in the meantime.

Tyler Durden
Tue, 08/19/2025 – 04:15

On The Road To A Hyperstate: EU Commission Circumvents Financing Rules

0
On The Road To A Hyperstate: EU Commission Circumvents Financing Rules

Submitted by Thomas Kolbe

The European Union is funded by contributions from its member states. At least, that’s what the founding treaties say. In practice, however, the EU has long been taking other paths.

At the core of Europe’s financial architecture lies a clear separation of responsibility and liability: Article 125 of the Treaty on the Functioning of the European Union (TFEU), the so-called “No-Bailout Clause.” It states, unequivocally, that neither the Union nor individual member states may assume the debts of other states. The purpose of this provision is to prevent free-rider effects (moral hazard) at the expense of other member states: each state is responsible for its own obligations.

Still, the clause does not exclude political support, as long as it does not mean assuming the existing debts of other states. A notable example of this practice were the bailout programs for Greece during the sovereign debt crisis one and a half decades ago.

Article 310 TFEU further regulates the EU budget: revenues and expenditures must be balanced every year, and the budget may only be financed through own resources such as member contributions, tariffs, or approved revenues. Independent loans by the EU Commission exceeding the approved framework are prohibited.

Together, these rules form the legal backbone of EU financial policy: no automatic liability, no autonomous EU debt, and only fully covered spending.

This design was deliberately chosen to prevent the emergence of a supra-state in Brussels and to defend the national scope of action of member states against an expanding Brussels bureaucracy.

Theory vs. Practice

That’s the theory. In practice, the EU has steadily increased its presence as a borrower in the bond market. It began in 1976 with the first European Community bond to support Italy and Ireland during the oil crisis. In the 1980s and 1990s, further issues followed for France, Greece, and Portugal—always aimed at demonstrating collective solidarity and easing fiscal tensions.

The 2008/2010 financial crisis marked a decisive turning point: with the European Financial Stabilisation Mechanism (EFSM) and, in 2012, the European Stability Mechanism (ESM), the EU began deliberately supporting over-indebted member states via bond issuance. In 2010, the European Central Bank announced it would purchase euro sovereign bonds on the open market to prevent the collapse of the monetary union—always in close coordination with EU institutions.

The COVID years saw a new dimension in 2020: for the first time, the EU issued Social Bonds under the “SURE” fund. At the same time, the “Next Generation EU” program started, providing around €800 billion in crisis aid. Since 2025, the Union has increasingly relied on so-called “sustainable bonds” (Green Bonds) and plans to issue short-term treasury bills for improved liquidity management.

The EU and ECB now operate in tandem, integrating ever-new financing instruments into the capital markets. The signal to the market is clear: we are ready to meet growing demand for euro bonds. And as collateral, not only the European taxpayer but also the ECB’s virtually unlimited liquidity is on standby. What could possibly go wrong?

Market Demand

For the second half of 2025, the European Commission plans to issue up to €70 billion in EU bonds across six auctions with maturities ranging from three to thirty years. Already in March 2025, the Commission achieved the world’s largest bond issuance increase, totaling $30.62 billion; three placements alone amounted to €13.7 billion.

Demand is plentiful, thanks to dual backing from member states and the ECB: an October 2024 issuance of a seven-year bond was oversubscribed 17 times. Green bonds are especially in focus: up to €250 billion are planned under NextGenerationEU, with €48.91 billion already issued.

Yields on these bonds currently trade about 40 basis points above German Bunds, making them attractive for investors.

Quo Vadis EU?

The European Union is undeniably moving toward a form of autonomous statehood. Its rigid ideological directives and the apodictic tone adopted by Commission representatives toward member states recently culminated in the Commission unilaterally negotiating the EU-US trade agreement.

Regardless of the agreement’s outcome, this sends a clear signal: decision-making power and political competence are shifting markedly from national capitals to Brussels, where a centralized bureaucracy increasingly calls the shots.

A return to national autonomy and a Commission limited to core functions appears out of the question. This is reflected in Commission President Ursula von der Leyen’s EU budget proposal for 2028–2034, projected at around €2 trillion—a 40% increase over the previous period.

Brussels’ fiscal megalomania has a single goal: enabling the EU to finance its activities independently, exploiting the fiscal constraints of member states. The outstanding €650 billion, formally to be raised by member states, hangs like a Damocles sword over ongoing negotiations—a constant pressure allowing the Commission to effectively enforce its financing plans through the bond market.

Apart from Hungary and the Czech Republic, there is broad agreement that Brussels’ financing will increasingly come from the bond market—no national budget could handle the extra levies. The Commission’s plans are therefore tacitly approved.

ECB as Lender of Last Resort

Everything points to a co-financing model that makes the EU increasingly independent of national budgets. Institutional constraints—such as individual member states’ say—are effectively bypassed, as is the Commission’s original prohibition on borrowing. Step by step, the Union is transforming from a rule-bound confederation into a centrally managed financial actor, increasingly deciding over its own resources and priorities.

Should debt ever spiral out of control, as has become common practice in the EU, the European Central Bank would be ready as a lender of last resort. This will work as long as the capital markets retain confidence in the EU’s creditworthiness, particularly Germany’s payment ability. If market faith collapses, the ECB would be forced to intervene in a way that would dwarf the 2010 debt crisis. The euro would then be history. The EU is skating on thin ice.

About the author: Thomas Kolbe, a German graduate economist, has worked for over 25 years as a journalist and media producer for clients from various industries and business associations. As a publicist, he focuses on economic processes and observes geopolitical events from the perspective of the capital markets. His publications follow a philosophy that focuses on the individual and their right to self-determination.

Tyler Durden
Tue, 08/19/2025 – 03:30

Over 40% Of Spaniards Are Worried About Their Financial Future

0
Over 40% Of Spaniards Are Worried About Their Financial Future

It may come as no surprise that many people around the world are feeling concerned about their financial futures.

Years of global inflation, stagnant wages and mounting pressures on pensions systems are contributing to economic uncertainty.

These challenges are further compounded by the impacts of climate change and major geopolitical events, from trade tariffs to armed conflicts.

As Statista’s Anna Fleck shows in the chart belowdata from a Statista Consumer Insights survey shows that four in ten respondents in Spain and South Africa voiced concerns on the topic between July 2024 and June 2025.

Infographic: Financial Future Worries | Statista

You will find more infographics at Statista

In the United States, 35 percent of respondents said the same, while in India and China the share of respondents worried about their financial futures was lower, at 27 and 13 percent, respectively.

Tyler Durden
Tue, 08/19/2025 – 02:45

Refugees In Austria Accused Of Failing German Courses To Stay On Benefits And Out Of Work

0
Refugees In Austria Accused Of Failing German Courses To Stay On Benefits And Out Of Work

Authored by Thomas Brooke via Remix News,

A new report by Austria’s Public Employment Service (AMS) has sparked controversy after suggesting that some refugees are intentionally failing German language courses to avoid being placed in low-paying jobs.

The findings, published in the study “New Refugees from Syria on the Austrian Labor Market,” highlight a growing challenge for integration policy, with concerns that language training, once seen as the key to employment, is becoming a barrier instead.

In the report, one first-hand account from a Syrian woman who studied medicine in her home country and worked as a paediatrician in Turkey, criticized what she sees as a systemic problem: qualified Syrian women being pushed into cleaning jobs without any consideration of their professional skills. She claims that, in response, some refugees purposely fail their language exams to avoid being forced into such low-status work.

Central to her complaint is the issue of inadequate wages, which she says often do not even cover basic living expenses, making social benefits a more attractive option.

The case study appears to be supported by AMS data, which showed that two-thirds of those granted asylum or subsidiary protection require literacy training, and 44 percent are completely illiterate. As reported by Kosmo, the AMS notes that 30 percent of refugees still have no German-language knowledge even 18 months after registering in Austria. Many spent years in transit countries before arriving, and in some cases, they cannot even read in their native language.

In July 2025, the unemployment rate for Syrians in Austria stood at 45.4 percent. Vienna is the epicenter of the problem, with more than half of all unemployed migrants living in the capital. Meanwhile, in other federal states, tens of thousands of low-skilled jobs remain unfilled.

The AMS acknowledges that deliberately failing courses to avoid work may occur, but insists this is not a widespread practice. “There are probably isolated cases, but this does not exist as a perceptible phenomenon,” the agency says. However, it concedes that proving deliberate failure is “hardly feasible in practice.” Sanctions are only possible if it can be clearly demonstrated that a person intentionally sabotaged their course or exam.

The issue is also closely linked to Austria’s welfare system. Some migrants may calculate that low-skilled work pays less than the combined value of unemployment benefits and minimum income support. The AMS does not deny that the financial incentive to remain unemployed exists.

The Austrian federal government is attempting to reform the system to ensure that work pays more than benefits. Starting in 2026, asylum seekers who skip compulsory language courses or fail the final exam will face cuts to their social welfare payments.

In Lower and Upper Austria, such measures are already in place, with reductions of up to 50 percent for those who refuse to participate.

Earlier this week, the reality of mass immigration in Austria was laid bare after new figures from the Statistical Yearbook on Migration and Integration found that women from Syria, Afghanistan, and Iraq living in Austria have an average birth rate almost three times higher than that of Austrian-born women.

The new generation with a growing Muslim population is having a profound effect in Austria, particularly in education.

In October 2024, federal data revealed that more than three-quarters of students in Vienna’s middle schools do not speak German at home, putting pressure on an education system designed for single-language learning.

A survey at the same time by the local teachers’ union at some of Vienna’s 100 compulsory schools revealed not only systematic issues like language barriers, but also extreme incidents, including assaults on teachers, situations where parents of schoolchildren asked a teacher to wear a burqa, and even the presence of mock executions.

It has led to teachers leaving their profession — 20 a day on average in 2024 — and other educators speaking out on the “rapid Islamization” of the Austrian capital.

“Islam is changing our society in ways we do not want,” said longtime principal of a Vienna middle school, Christian Klar, in an interview with Christian magazine Corrigenda last year.

Read more here…

Tyler Durden
Tue, 08/19/2025 – 02:00

Texas Democrats End 2-Week Walkout, Setting Up Vote On Congressional Map Favoring Republicans

0
Texas Democrats End 2-Week Walkout, Setting Up Vote On Congressional Map Favoring Republicans

Authored by Darlene McCormick Sanchez via The Epoch Times (emphasis ours),

Texas Democrats ended a dramatic two-week walkout over congressional redistricting, clearing the way for Republicans to pass a map redrawn in their favor as soon as Aug. 20.

Texas Speaker of the House Dustin Burrows strikes the gavel as the House calls a Special Session with a quorum, in Austin, Texas, on Aug. 18, 2025. Eric Gay/AP Photo

The state Democrats announced that they would return after California Democrats moved forward with plans to redraw their congressional map to counter any GOP gains in Texas.

On Aug. 15, Gov. Greg Abbott called a second special session as the first one ended.

Delinquent House Democrats ran away from their responsibility to pass crucial legislation to benefit the lives of Texans,” Abbott said in a statement.

We will not back down from this fight. That’s why I am calling them back today to finish the job.

When the Texas House convened on Aug. 18, Speaker Dustin Burrows announced a quorum and subsequently ordered the House chamber doors locked, an action permitted under House rules.

Burrows scheduled the House to reconvene on Aug. 20, when a vote on a redrawn congressional map could take place, potentially adding five Republican seats in the next election.

Democrats, who showed up on Aug. 18 but face arrest warrants that were issued for fleeing the state, were released from the chamber in the custody of Department of Public Safety officers responsible for their return.

“We have a quorum. Now is the time for action. We will move quickly,” Burrows said.

More than 50 Democrats left the Lone Star State for several blue states as a way of thwarting GOP-led congressional redistricting. The 150-member Texas House requires 100 legislators to be present to meet a quorum requirement and conduct business.

Republican leadership applied extraordinary pressure to force the Democrats to return.

Besides issuing civil arrest warrants for the absent Democrats, Burrows threatened each of them with a $500 daily fine under House rules.

Attorney General Ken Paxton filed lawsuits to remove fleeing Democrats from office and target organizations funding their quorum break.

Abbott, too, filed a lawsuit with the Texas Supreme Court asking it to rule that Rep. Gene Wu, chairman of the House Democratic caucus, had vacated his seat by refusing to come to work.

President Donald Trump has expressed support for congressional redistricting in red states to give Republicans a better chance at maintaining control of the U.S. House.

On July 7, the U.S. Justice Department sent Abbott a letter raising concerns that four congressional districts in the Houston and Dallas areas were unconstitutional because of “racial gerrymandering.”

Current boundaries run afoul of the Voting Rights Act by relying on racial demographics to group minority voters into “coalition districts,” where no single racial group forms a majority, according to the Justice Department.

Tyler Durden
Tue, 08/19/2025 – 00:05

Creative Chaos: Inside The CIA’s Covert War To Topple The Syrian Government

0
Creative Chaos: Inside The CIA’s Covert War To Topple The Syrian Government

Authored by Joseph Solis-Mullen via The Mises Institute,

For over a decade, the dominant Western narrative on the Syrian War has been simple: a peaceful uprising turned into a brutal civil war because of Bashar al-Assad’s ruthless crackdown on his own people.

But in Creative Chaos: Inside the CIA’s Covert War to Topple the Syrian Government, the Libertarian Institute’s latest book, William Van Wagenen methodically dismantles this mainstream version of events, exposing it as a convenient fiction crafted to justify one of the most disastrous regime change wars of the modern era.

His central thesis is clear: the war in Syria was not an organic revolution but a deliberate effort by Washington, Israel, and their regional partners to weaken Iran by toppling Assad’s government. 

And when peaceful protests were hijacked by Islamist militants, instead of helping restore stability, the US and its allies deliberately prevented Assad from crushing the insurgency—even as it became dominated by al-Qaeda and ISIS-affiliated groups.

Now, years later, the result is a fractured Syria, ruled by jihadist warlords and occupied by foreign powers, with Israel consolidating its hold over strategic territory.

How and why did this disaster for Syria’s people come to pass? And why were the non-interventionists who called out Washington’s lies always right about the war and its likely outcome?

Regime Change: The Blueprint for Syria’s Destruction

Van Wagenen carefully documents how regime change in Syria had been a goal of US foreign policy long before the Arab Spring. The Bush administration set the groundwork, but the Obama administration accelerated the effort, seeing it as a way to strike a blow against Iran without a direct war.

His research confirms that the US and its allies—including Israel, Saudi Arabia, Qatar, and Türkiye—actively supported and armed the so-called “moderate opposition,” despite overwhelming evidence that jihadists controlled the rebellion almost from the start.

Instead of letting the Assad government restore order, Western intelligence agencies funneled billions in arms, logistics, and training to extremist groups, ensuring the war would drag on.

The leaked 2012 email from Jake Sullivan to Hillary Clinton (which Van Wagenen references) makes this reality undeniable: “AQ [Al-Qaeda] is on our side in Syria.”

This stunning admission exposes the real nature of US policy in Syria: at the same time they fought them on the other side of the line in Iraq, Washington was directly supporting al-Qaeda-linked groups because they served its geopolitical interests.

Note: For those who haven’t read the Libertarian Institute Director Scott Horton’s book Enough Already: Time to End the War on Terror, this was a reversion to form rather than a policy innovation: Washington had, as a rule, favored the fundamentalist and radical Sunni sects over secular alternatives in the region going back decades.

A War Hijacked by Jihadists

One of the book’s most important contributions is its wholesale demolition of the “moderate rebel” myth. While establishment media outlets painted the Free Syrian Army (FSA) as a legitimate opposition force, Van Wagenen presents overwhelming evidence that the so-called moderates:

  • Were always outnumbered and outgunned by Islamist factions;

  • Frequently collaborated with or defected to al-Qaeda’s Syrian affiliate, Jabhat al-Nusra (later HTS);

  • Received direct support from the CIA despite ties to terror groups

By 2013, ISIS and al-Nusra dominated the battlefield, and yet the US still prevented Assad from crushing the insurgency. As Van Wagenen documents, Washington:

  • Pressured Jordan to allow jihadists free movement across its border;

  • Supplied weapons through covert programs like Operation Timber Sycamore;

  • Worked with Türkiye and Saudi Arabia to keep a steady flow of foreign fighters into Syria

This policy—arming the terrorists who had just a decade previously attacked the United States, and who were attacking US forces in Iraq at the same time—wasn’t just reckless, it was criminal.

Israel’s Role: Engineering Chaos to Consolidate Power

Another key point in Van Wagenen’s book is that Israel was a major driver behind the push for Assad’s overthrow. While the establishment narrative claims Israel was just a passive observer, the book shows that Tel Aviv had a clear strategic interest in Syria’s disintegration.

  • Israel viewed Assad as Iran’s key ally and wanted him removed;

  • Israeli intelligence worked closely with Western planners to fuel the insurgency;

  • Once jihadists took over much of the country, Israel used this as justification for expanding its own territorial ambitions

Fast forward to today, and Van Wagenen’s prediction has come true: Syria is permanently fractured, and Israel has occupied key territories under the pretense that there is “no legitimate partner for peace.”

As Israeli officials have repeatedly argued, Syria is too unstable to negotiate with because groups like HTS (formerly al-Qaeda’s affiliate) control large parts of it. But this outcome was engineered by Israel and its allies, who spent years ensuring jihadists gained the upper hand over Assad’s forces. In effect, the war has allowed Israel to tighten its grip on occupied Golan and extend its influence into Syrian territory.

The Role of Bureaucratic Interests: Why Regime Change Always Wins

One of the most compelling themes in Van Wagenen’s book is the way he implicitly ties the Syrian War to broader structural issues in US foreign policy—particularly Public Choice Theory and the Iron Law of Bureaucracy. Public Choice Theory teaches us that politicians and government agencies act in their own self-interest, not necessarily in the interest of the public. A subset of this is the so-called “Iron Law of Bureaucracy,” which states that bureaucracies eventually prioritize their own growth and survival over their original mission. The CIA, State Department, and Pentagon all had institutional incentives to prolong the war, expand their budgets, and justify continued intervention, as Van Wagenen’s book shows.

This explains why, despite overwhelming evidence that arming jihadists would lead to disaster, the policy continued for years. The bureaucratic and political interests pushing for intervention simply had too much to gain from prolonging the war.

The Devastating Human Cost

While Van Wagenen’s book is primarily focused on the geopolitical machinations behind the war, he never loses sight of the human cost of Washington’s policies:

  • Hundreds of thousands of civilians were killed;

  • Syria’s minority populations—Alawites, Christians, Druze, and Shiites—were slaughtered or driven into exile;

  • Millions became refugees, fueling instability across the region and in Europe

Rather than bringing “freedom” to Syria, US intervention ensured endless war, ethnic cleansing, and the rise of brutal jihadist warlords.

Final Verdict: A Devastating Indictment of US Foreign Policy

Creative Chaos: Inside the CIA’s Covert War to Topple the Syrian Government is a deeply-researched, compelling, and devastating critique of Western intervention in Syria. Van Wagenen’s book should be required reading for anyone who wants to understand how Washington and its allies systematically engineered one of the most destructive conflicts of the 21st century. He methodically dismantles the legacy media’s lies, exposes the CIA’s reckless support for jihadists, and highlights Israel’s long-term strategic interest in Syria’s collapse.

For those who still believe that US intervention is a force for good in the world, this book is a wake-up call. Syria was not a “humanitarian” war. It was a calculated, brutal regime change operation that destroyed a nation for the sake of geopolitical gain. And, as Van Wagenen warns, despite the non-interventionists having always been right, it likely won’t be the last.

Washington must stop its meddling. This is a message particularly timely as Trump seems more and more inclined toward furthering US involvement in the region.

Tyler Durden
Mon, 08/18/2025 – 23:25