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“I Am Senator Alex Padilla!”: Democrat Lawmaker Deported From DHS Press Conference, Placed In Handcuffs

“I Am Senator Alex Padilla!”: Democrat Lawmaker Deported From DHS Press Conference, Placed In Handcuffs

Sen. Alex Padilla (D-CA) was physically removed from a DHS press conference and placed in handcuffs on Thursday, after reportedly lunging at Homeland Security secretary Kristi Noem during a press conference in Los Angeles.

Watch:

As Axios reports;

In a video posted to X by Fox News reporter Bill Melugin, Padilla was seen being grabbed and pushed out of the press conference while saying he had “questions for the secretary.”

  • “I am Senator Alex Padilla,” Padilla said in the video. He was then grabbed by multiple men and shoved out of the room.
  • Further video showed Padilla being handcuffed and detained in the hallway outside the room.
  • “He is not currently detained, and we are working to get additional information,” Padilla’s office said in a statement on Thursday.

Noem subsequently said she would contact Padilla and “try to have a conversation,” NBC News reported.

Developing…

Tyler Durden
Thu, 06/12/2025 – 15:02

LA Riots Hand Republicans Script For Midterms

LA Riots Hand Republicans Script For Midterms

Authored by Philip Wegmann & Susan Crabtree via RealClearPolitics,

The masked man on the motorcycle, the one who waved a Mexican flag in front of a torched car as Los Angeles police stood by, will soon be famous. His identity remains unknown, his image iconic – but for all the wrong reasons. 

Republicans will replay the clip again and again in campaign ads ahead of the midterms. 

This lawlessness is exactly what Americans rejected in 2024,” said Michael Whatley, chairman of the Republican National Committee. “While Democrats sow chaos, Republicans stand as the party of law and order.” President Trump is delivering on his campaign promise to crack down on illegal immigration, Whatley told RealClearPolitics, and ahead of the midterms, his party “will continue to run on this winning message and finish the job for the American people.”

As National Guard were being deployed to quell violence in California, Republicans were mobilizing to capture and catalog video of looting, rioting, and violence. One RNC official told RCP they were struggling to capture the flood of content coming across cable news.

It was just non-stop,” they said. “There was so much.” 

That content from the LA riots will soon provide fodder for the contrast Republicans hope to paint in November of next year, illustrating the failed immigration policies they allege California Gov. Gavin Newsom now embodies. For his part, Newsom blames Trump for inflaming an already “combustible situation.”

Los Angeles became ground zero for the Trump administration’s immigration crackdown Saturday when ICE agents launched a series of raids across the city. Protests followed. Some of the demonstrations have been peaceful. The ones getting wall-to-wall news coverage, however, were not. Demonstrators hurled rocks, firework shells, and Molotov cocktails at police. Vandalism and looting ensued, prompting Trump to order 2,000 National Guardsmen to the city without the approval of the California governor.

Newsom quickly condemned the move as a “blatant abuse of power” that puts the nation on a path to authoritarianism. “Trump is pulling a military dragnet all across Los Angeles,” Newsom said in a speech delivered from an LA studio Tuesday, as the city remains under a curfew ordered by Mayor Karen Bass. “Well beyond his stated intent to just go after violent and serious criminals, his agents are arresting dishwashers, gardeners, day laborers and seamstresses.”

California may be first, but it clearly won’t end here,” the governor said. “Other states are next. Democracy is next.”

The White House already saw the riots as an opportunity to paint Democrats as hapless in the face of lawlessness. After the governor’s speech, they were overjoyed to have that fight with Newsom. “Democrats are not even choosing the 20 on 80-20 issues,” a White House official told RCP. “They’re choosing the 10 on 90-10 issues.”

The situation in Los Angeles could be perilous for Democrats. Newsom has tried to differentiate a violent mob from lawful demonstrators, warning on social media that those “who take advantage of Trump’s chaos” will be held accountable, while encouraging those who are “protesting peacefully.”

The White House, meanwhile, sees nothing but anarchy and is considering invoking the Insurrection Act, a law that grants the president authority to deploy the military on U.S. soil. Asked if he was considering it, Trump told RCP Tuesday in the Oval Office, “We will see.” 

Republicans are betting that voters have already made up their minds. “AI couldn’t generate better imagery,” said Jesse Hunt, a GOP strategist and former communications director at the National Republican Senatorial Campaign. Trump won the general election, in large part, in reaction to the lax immigration policies of the Biden administration, Hunt told RCP, and the mob violence in LA will capture voter attention ahead of the midterms. 

It paints a real picture of which side voters can choose to be on,” he said, “public servants enforcing U.S. law in an American city or a violent mob waving another country’s flag.”

The National Republican Congressional Campaign Committee has already cut a digital spot that will serve as a template for the midterms. Posted on social media Tuesday, the video splices together clips of rock-hurling rioters in the smoke-filled streets of LA with soundbites from Democrats defending the demonstrations as “mostly peaceful protests.”

The Congressional Leadership Fund, the super PAC aligned with Speaker Mike Johnson and the largest spender in House campaigns, has already argued this week that the riots roiling Los Angeles will continue to spread to other cities. When confronted with that chaos, the group predicted, “Americans will vote accordingly.”

A new survey commissioned by CLF, obtained by RCP, and conducted by Trump pollster Tony Fabrizio, provides the reasoning for their confidence. The polling of key congressional districts found that on illegal immigration and deportations, 57% favor “hiring nearly 40,000 additional ICE and border patrol agents to address illegal immigration as well as drug and human trafficking.” The Republican survey also showed 68% of voters favor funding for the military to support law enforcement “in their fight against drug cartels.”

The Trump administration remains convinced that the public is on their side. “They are incredibly out of touch with what the vast majority of Americans support,” a White House official said of Democrats, telling RCP, “We are going on offense and backing them into the corner of supporting dangerous criminal illegal aliens, violent rioters, and lawless chaos.”

Susan Crabtree is RealClearPolitics’ national political correspondent.

Tyler Durden
Thu, 06/12/2025 – 14:55

Senators To Propose Ban On Big Pharma Ads As TV Networks Stand To Get Wrecked

Senators To Propose Ban On Big Pharma Ads As TV Networks Stand To Get Wrecked

Senators Bernie Sanders of Vermont and Angus King of Maine, both independents, on Thursday will introduce legislation that would ban pharmaceutical companies from promoting prescription drugs directly to consumers – including through television, radio, print, digital platforms, and social media, the WSJ reports.

HHS Secretary Robert F. Kennedy Jr. said when running for president he planned to ban pharmaceutical ads from TV. Photo: Lev Radin/Zuma Press

The proposal would mark a sweeping shift in the U.S. advertising landscape, where pharmaceutical companies are among the largest spenders. Prescription drug brands accounted for roughly 13 percent of all ad spending on linear television in 2025, totaling approximately $2.18 billion so far this year, according to iSpot data. In 2024, the industry spent $3.4 billion on traditional TV ads between January and August alone, according to ad-tracking data.

The American people don’t want to see misleading and deceptive prescription drug ads on television,” Sanders said in a statement. “They want us to take on the greed of the pharmaceutical industry and ban these bogus ads.”

The legislation follows longstanding criticism from Health and Human Services Secretary Robert F. Kennedy Jr., who has repeatedly called for a ban on prescription drug advertising. While running for president, Mr. Kennedy said he would issue an executive order removing pharmaceutical ads from television, citing overmedication and industry influence on news coverage.

‘The American people don’t want to see misleading and deceptive prescription drug ads on television,’ Sen. Bernie Sanders said in a statement. Photo: piroschka van de wouw/Reuters

“We’re one of only two countries in the world that allow pharmaceutical companies to advertise directly to consumers,” Mr. Kennedy said in a video posted to X. “Everybody agrees it’s a bad idea.”

The United States and New Zealand are currently the only countries that permit direct-to-consumer (DTC) prescription drug ads.

Mr. Sanders and Mr. King, who each voted against Mr. Kennedy’s confirmation, have long expressed skepticism of consumer drug marketing. In February, Mr. King introduced a bill that would prohibit pharmaceutical advertising in the first three years following a drug’s approval.

Other lawmakers from both parties have taken similar steps. In May, Senators Josh Hawley, Republican of Missouri, and Jeanne Shaheen, Democrat of New Hampshire, introduced legislation to eliminate tax deductions for pharmaceutical consumer advertising.

Since 1997, when the Food and Drug Administration relaxed disclosure requirements for DTC ads, pharmaceutical companies have increasingly leaned on consumer advertising to drive demand. Under current rules, companies need only disclose a drug’s “most important” risks during commercials.

The result has been a media environment saturated with pharmaceutical messaging. Drug ads made up 24.4 percent of all advertising minutes on evening news broadcasts across major networks — including ABC, CBS, CNN, Fox News, MSNBC, and NBC — through May of this year, according iSpot. On CBS Evening News, pharmaceutical companies appeared in more than 70 percent of commercial breaks, per Kantar Media.

The industry has defended the practice. The Pharmaceutical Research and Manufacturers of America, a leading trade group, points to its “guiding principles,” arguing that direct‑to‑consumer ads increase disease awareness, encourage patients to seek treatment, and prompt conversations with doctors.

Any move to ban pharmaceutical advertising could face legal challenges under the First Amendment’s protections for commercial speech.

Still, Mr. Sanders and Mr. King maintain their efforts are necessary to push back against what they describe as an overcommercialized influence on public health messaging.

Tyler Durden
Thu, 06/12/2025 – 14:30

Trump Administration Launches Website For ‘Gold Card’ Visas

Trump Administration Launches Website For ‘Gold Card’ Visas

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

The Trump administration has launched a new website for people interested in so-called gold card visas, which the president has said would grant citizenship in exchange for millions of dollars.

President Donald Trump arrives on Capitol Hill in Washington on May 20, 2025. Madalina Vasiliu/The Epoch Times

The website, trumpcard.gov, says that “the Trump card is coming” and encourages people to enter their information to be notified when applications open.

A picture of the card shows the president’s face and a figure of $5 million.

People can enter their name, area of residence, and email.

“Thousands have been calling and asking how they can sign up to ride a beautiful road in gaining access to the Greatest Country and Market anywhere in the World,” President Donald Trump wrote on Truth Social, his social media network, on June 11.

Trump said in February that his administration was going to start selling the “gold card” visas so that wealthy people could legally enter the United States.

“They’ll be wealthy, and they’ll be successful, and they’ll be spending a lot of money and paying a lot of taxes and employing a lot of people, and we think it’s going to be extremely successful, and never been done before anything like this,” he said at the time.

The visas are an updated version of the EB-5 investor visas, according to Commerce Secretary Howard Lutnick.

Under the EB-5 program, investors can apply for a green card if they invest in a commercial enterprise in the United States.

Investors must invest an amount that creates at least 10 full-time positions and invest at least $1 million, or at least $800,000 in targeted employment areas. The minimum required investment amount depends on the type of project.

The annual limit of EB-5 visas is 7.1 percent of the worldwide employment limit.

The gold card program does not fit within the Immigration and Nationality Act, the primary U.S. immigration law, the Center for Immigration Studies, a nonprofit that studies immigration laws, said earlier this year.

“The EB-5 program is one of the specified immigrant [visa] categories – the gold card program is not. An alien could not lawfully be admitted as an immigrant on the basis of having received a gold card,” George Fishman, a senior legal fellow with the center, wrote in a blog post. “Further, an alien could not become a naturalized citizen on the basis of having received a gold card, as a gold card would not provide lawful permanent residence.”

He said it is unlikely the program would survive scrutiny by the Supreme Court if it were challenged with a lawsuit, although justices could ultimately rule in favor of the president.

Tyler Durden
Thu, 06/12/2025 – 14:05

FBI Arrests Suspected NGO Face-Shield Foot Soldier In L.A. Riots

FBI Arrests Suspected NGO Face-Shield Foot Soldier In L.A. Riots

One day after FBI Director Kash Patel told Just the News, “The FBI is investigating any and all monetary connections responsible for these riots” in Los Angeles. 

United States Attorney Bill Essayli, a top federal prosecutor in Los Angeles, announced on X that Alejandro Theodoro Orellana was arrested by FBI agents “on an allegation of Conspiracy to Commit Civil Disorders (18 USC 371) for distributing face shields to suspected rioters on Tuesday.” 

We are moving quickly to identify and arrest those involved in organizing and/or supporting civil disorder in Los Angeles,” Essayli said. 

The Trump administration has launched an urgent effort to investigate the command-and-control structures behind a network of rogue Democratic-aligned non-governmental organizations (NGOs), which officials suspect are serving as the organizational backbone of the anti-ICE riots erupting in Los Angeles, with risks of nationwide unrest

Put another way, the civil unrest is being characterized as a Marxist-inspired, color revolution-style mobilization effort—one that squarely targets the president and exhibits alarming insurrectionist behavior

X users have profiled Orellana, and some allege he was part of a paramilitary organization called “Brown Berets.

Brown Berets is not classified as a terrorist organization by any U.S. government entity today—neither by the State Department (which keeps the list of Foreign Terrorist Organizations) nor by the FBI as a domestic terrorist group.

What internet sleuths are saying:

Brown Berets are showing up elsewhere. 

On Monday, Mexican Senate President Gerardo Fernández Noroña publicly displayed an 1830 map of Mexico during a press conference, emphasizing that Mexico once held sovereignty over California, Texas, and much of the modern-day U.S. Southwest

Noroña’s gesture could be viewed as a nationalist provocation, subtly reinforcing irredentist intentions at a time when foreign nationals and dark-money-funded, Marxist-aligned NGOs are sparking civil unrest in Los Angeles—widespread looting, arson, and violent clashes with both local and federal law enforcement.

Hmmm, Via Epoch Times…

All in all, Orellana was likely just a foot soldier. It’s time for the federal government to get serious about investigating the NGOs, donors, and Democratic Party operatives who appear to be waging hybrid warfare against the American people—deliberately fueling nationwide chaos in an attempt to undermine the president.

Tyler Durden
Thu, 06/12/2025 – 13:40

Trump Calls Musk A “Friend” While Discussing EV Mandates

Trump Calls Musk A “Friend” While Discussing EV Mandates

Update (1338ET): 

After The Wall Street Journal and The New York Times pushed out headlines on Wednesday suggesting a possible end to the Musk-Trump feud, President Trump confirmed the cooling of tensions by calling Elon Musk a “friend” while speaking to reporters ahead of plans to abolish California’s vehicle emissions standards. 

Trump praised Musk for not demanding any favors ahead of the administration’s move to eliminate EV tax credits.

The president said Musk was okay with ending the credits and letting the market determine supply and demand, confident he could outperform competitors such as legacy OEMs in the EV space, Rivian, and Lucid. 

Recall that last July, Musk publicly supported Trump’s move to eliminate EV mandates, calling it a major win for Tesla.

We also suspect Musk understands that the catastrophic climate crisis pushed by leftist corporate media is a hoax. At the end of the day, Tesla remains a superior product, and will outperform competitors without relying on government mandates.

Tesla shares briefly popped on Trump’s “friend” comment…

The EV downturn is entering its final chapter—stripping away federal subsidies will only cement Tesla’s dominance in the U.S. market

 

*   *   *  

President Donald Trump on Thursday announced that he’s signing a trio of resolutions reversing California’s 2035 ban on the sale of new gas-powered cars

The move was announced earlier in the week by Rep. Kevin Kiley (R-CA), who wrote on X that Trump would sign his resolution “to reverse California’s absurd ban on gas-powered cars.”

The resolutions, which were co-authored by Sen. Shelley Moore Capito (R-WV), finalize Trump’s months-long effort to rescind California’s authority to sect stricter electrification rules for passenger vehicles and commercial trucks, along with higher standards for heavy-duty diesel engines. 

During Trump’s first term, his EPA revoked a version of California’s vehicle emissions rules through an 18-month regulatory process, however Republicans’ May vote to expedite the rollback through Congress marked the first time that California’s waiver approvals have been considered subject to the Congressional Review Act (CRA) since President Bill Clinton signed the law in 1996. 

California Attorney General Rob Bonta has vowed to fight the decision, saying in May that he plans to sue once Trump signs the resolutions. 

We’re guessing Gov. Gavin Newsom (D) is secretly relieved…

 

Tyler Durden
Thu, 06/12/2025 – 13:38

Stellar 30Y Auction Stops Through Amid Jump In Foreign Demand

Stellar 30Y Auction Stops Through Amid Jump In Foreign Demand

After a medicore 3Y auction to start the week, a solid 10Y auction yesterday, jittery traders were left with just one Treasury sale this week, arguably the most challenging one: today’s $25BN 30Y auction. In retrospect, there was no reason to worry because demand for today’s paper – especially among foreign buyers – was stellar any way you look at it. 

Let’s take a look: starting at the top, the auction priced at a high yield of 4.844%, up from 4.819% last month and the highest since January; more importantly the auction stopped through the When Issued 4.859% by a solid 1.5bps, a reversal to last month’s 2.6 bps, and the second biggest through since November.

The bid to cover rose to 2.430 from last month’s 2.314, was the second highest since January which also put it above the six-auction average of 2.392.

The internals were even more impressive: foreign demand was solid with Indirects awarded 65.2%, up from 58.9% and the highest since January. And with Directs taking down 23.4%, down from 27.2% if above the recent average of 22.3%, Dealers were left with just 11.4$, the lowest since November as there was little need for them to step in considering solid demand.

The market response was favorable, with 10Y yields dropping near session lows of 4.34% – below where the 10Y traded ahead of last week’s solid NFP report – before retracing some of the move, because today’s auction notwithstanding, the US is still facing an avalanche of long duration to find Trump’s Big, Beautiful Bill.

Tyler Durden
Thu, 06/12/2025 – 13:29

Man Who Flew 120 Times For Free By Posing As Flight Attendant Convicted Of Fraud

Man Who Flew 120 Times For Free By Posing As Flight Attendant Convicted Of Fraud

Authored by Katabella Roberts via The Epoch Times (emphasis ours),

A man was convicted by a federal jury of wire fraud and entering a secure area of an airport under false pretenses after posing as a flight attendant to obtain dozens of free flights over six years, the U.S. Attorney’s Office for the Southern District of Florida said in a June 10 statement.

Planes taxi on the runway at the Fort Lauderdale-Hollywood International Airport in Florida, on July 7, 2022. Wilfredo Lee/AP Photo

Tiron Alexander, 35, was convicted on June 5 and faces up to 20 years in prison and a fine of up to $250,000 for wire fraud and up to 10 years and a fine of up to $250,000 for entering the airport’s secure area.

He is scheduled to be sentenced on Aug. 25.

According to an October 2024 indictment, Alexander worked for an unnamed airline from Nov. 30, 2015 onwards, though his role was not disclosed.

The indictment states that he was never a flight attendant or pilot.

At the time of his employment at the airline, airline pilots and flight attendants were entitled to certain travel privileges based on their position, seniority, and tenure, the indictment states.

“These privileges included the ability to obtain no-cost flight reservations on their employer airline and other airlines with which their employer airline maintained reciprocal interline travel agreements,” the indictment states.

According to court documents and evidence presented at trial, between 2018 and 2024, Alexander posed as a flight attendant for airlines and booked free flights on an airline carrier’s website that were reserved solely for pilots and flight attendants.

Alexander booked and flew on 34 flights with one airline without paying for them, the U.S. attorney’s office said in a statement.

“Over the 34 flights, Alexander claimed through the airline carrier’s website application process—a process that required an applicant to select whether they were a pilot or flight attendant and provide their employer, date of hire, and badge number information—that he worked for seven different airlines and had approximately 30 different badge numbers and dates of hire,” the U.S. Attorney’s Office said.

Evidence presented at trial showed Alexander also posed as a flight attendant on three other airline carriers.

In total, Alexander booked more than 120 free flights by falsely claiming to be a flight attendant, the U.S. Attorney’s Office said.

According to the indictment, Alexander entered a secure area of Fort Lauderdale-Hollywood International Airport in Broward County on or about July 22, 2020.

The Transportation Security Administration investigated Alexander’s case. It is unclear when Alexander was arrested or if he has legal representation.

The Epoch Times contacted the Department of Justice for comment but did not receive a response by publication time.

Tyler Durden
Thu, 06/12/2025 – 13:20

AUKUS-ward If You “Don’t Do Geopolitics”

AUKUS-ward If You “Don’t Do Geopolitics”

By Michael Every of Rabobank

US CPI, even weaker-than-expected 0.1% m-o-m headline and core and 2.4% and 2.8% y-o-y, wasn’t the main event. Neither was President Trump again calling for the Fed to cut 100bps at its next meeting to lower US debt-servicing costs (when our Fed-watcher Philip says it will cut 25bps in September, then stop.) Instead – again – it was geoeconomics and geopolitics.

The ECB’s Lagarde used a platform at the PBOC to state that “coercive trade policies are not a sustainable solution to today’s trade tensions” — in the same way violence is never a solution to violence?– and are “far more likely to provoke retaliation and lead to outcomes that are mutually damaging” – which is exactly where the threat of violence can come in. Was that aimed at the US or China though? She also added, “That means both surplus and deficit countries must take responsibility and play their part.” Was that aimed at China and Germany as well as the US?

Trump tweeted an unwritten “framework” based on the unwritten Geneva “consensus” would see Chinese students back at US universities and rare earths provided to US firms “up front”, with China facing a 55% US tariff and the US a 10% China tariff. However, the Wall Street Journal says the rare earths are only for six months. It seems this on-off process will continue until one side builds a Harvard or the other gets now-weaponised rare earth processing in place (as Bloomberg puts it: ‘China Hit World’s Pain Point on Trade – and Will Do So Again’). Guess which is easier?

Trump also said he’ll set unilateral tariff rates within two weeks for countries not negotiating in good faith, while Treasury Secretary Bessent added the 90-day tariff pause could be extended for those who are – and that China can’t export its way to prosperity and must prove it’s a reliable trade partner.

Russia offered to help Iran remove the weaponized parts of its nuclear programme and build its civilian reactors. That looks a quid pro quo for the US stepping back on support for Ukraine, toppling other dominoes in the Great Game at the expensive of Kyiv and Brussels.

However, that was eclipsed by the US announcing the removal of non-essential staff from its Iraqi and regional embassies and military bases, the former having been placed on high alert with emergency action committees activated after Iran’s defence minister said they would strike those targets if attacked. Moreover, US Senator Cotton stated: “Today @SecDef confirmed that Iran’s terrorist regime is actively working towards a nuclear weapon. For the sake of our national security, the security of our allies, and millions of civilians in the region this cannot be allowed to happen.” Western intel sources also reportedly state Iran has exploited negotiations to actively diminish the potential impact of military strikes on its nuclear sites.

As such, there are press reports the US will announce the end of Iran nuclear talks within hours. That only appears to leave one option – albeit with the Russian offer in the background, perhaps. None of this is a cheap bluff, if that’s what it is; it’s a card you play knowing it’s costly and only works once… unless it’s an essential move because of expected developments.

To say oil, up around 4% at the time of writing, is not where it would be if an attack on Iran were to transpire is an understatement – if it’s not just US military bases and embassies that Iran hits in response. Welcome to one of the key, stacked, geopolitical, binary scenarios I’d flagged for 2025 as The Year of Living Dangerously.

As if that were not enough, the Pentagon also announced it’s reviewing the AUKUS defence treaty as it can’t build enough nuclear subs (or ships) to provide Australia with them ahead. That’s awkward for those who think stuff just appears and don’t get that, as with rare earths, it doesn’t – with disastrous supply-chain consequences. We now see the same dynamic in the world’s military hegemon – it can’t make enough of what it needs. That’s why –alongside structural reforms– it needs to bring back industrial production. Yet the same people who lambaste the US for doing that, “because markets”, also lambaste it for not protecting them everywhere for free. Just as awkwardly, this US move comes just after Australia’s PM Albanese said he wouldn’t be bossed around on defence spending by the US and, alongside the UK and New Zealand, sanctioned two Israeli ministers in a way the US didn’t like. 

The message is clear: the US can step back from defending Australia (and New Zealand) just as it has from Europe if the latter won’t step up at a far higher cost than Australia or New Zealand are currently budgeting for.

At the very least, the US seems to be insisting that Canberra pledges to use any US subs vs China in a potential war over Taiwan. Do that and maybe Australia can keep AUKUS – yet they will likely pay a high price elsewhere, including on trade; and if they don’t, they will have to pay an even higher price for defence, at the very least – the US could squeeze Australia (and New Zealand) in many ways, just as it can Europe. In short, it looks like the D for Decision Day I have long warned of may finally loom Down Under after years of have-your-cake-and-eat-it-ism.

Yet showing somebody is still on a sugar high, Australia reportedly thinks a new security pact with Europe, ahead of a possible FTA, is an answer. Sleep well, Aussies (and Kiwis): Spain and Germany are ready to protect you at the drop of a hat, just as you are ready to fight Russia. Even France, which had wanted to play that role, is going to be overstretched with a huge budget deficit and a lot of Europe to patrol now the Baltic states are being mentioned by Russia.

Similarly, geopolitical events have again eclipsed a careful UK government spending review assuming they wouldn’t even when everyone could see they could. In particular, yesterday’s 4-year plan only sees defence meeting at a 2.6% of GDP level from 2027 onwards, then stopping, even as NATO will require 3.5% to 5%, and a failure of AUKUS would send a further shock through Whitehall. That’s not just ‘what is GDP for?’ but ‘who is paying for that GDP?’

Indeed, Bloomberg notes ‘Britain Counts the Mounting Cost of Taxing Wealthy ‘Non-Doms’’, where “Over 4,400 business leaders have disclosed an overseas move in the last year”; and as the Telegraph bewails ‘Britain ‘surrendering Gibraltar’ after agreeing to EU passport controls’ where Brits “will have to deal with Spanish guards when they land on the Rock after deal agreed.” Yes, The Rock which once underlined British global naval dominance is now to be in the Schengen zone.

You might want to think none of this really matters compared to a 0.1%. In which case, I would suggest that is about as much of the big picture impacting on inflation that you see.

Tyler Durden
Thu, 06/12/2025 – 13:00

Energy Regulations Threaten Pennsylvania’s Tech Boom

Energy Regulations Threaten Pennsylvania’s Tech Boom

Authored by Elizabeth Stelle via RealClearPennsylvania,

Pennsylvania is on the short list of destinations for cloud computing and artificial intelligence (AI). However, the commonwealth – thanks to ill-advised policies pushed by Gov. Josh Shapiro – remains ill-equipped to handle this emerging market.

On Monday, the governor announced a $20 billion investment by Amazon to develop data centers statewide. Though a laudable investment, the governor’s publicity stunt highlights a glaring issue: State policies make it extremely expensive to set up shop in Pennsylvania and tap into the state’s abundant energy resources.

And the governor’s proposals to address this issue will actually make things worse.

Shapiro’s policies to reduce the amount of reliable electricity are the most concerning.

Even without the new influx of data centers, electricity costs are rising in Pennsylvania. On June 1, utility companies increased rates statewide. These companies regularly adjust rates based on market conditions.

And those conditions aren’t great for ratepayers. In this year’s first quarter, wholesale prices in Pennsylvania were up 44%.

What are driving costs? It’s simple supply-and-demand economics. Supply continues to dwindle as regulations force reliable power plants to retire prematurely and force-feed more unreliable solar and wind energy into the state’s energy portfolio.

Meanwhile, demand – driven by AI – keeps escalating.

AI guzzles electricity. A ChatGPT query devours 10 times more electricity than a conventional Google query. To satiate AI’s growing power needs, conservative estimates suggest the United States needs at least 18 gigawatts of additional grid capacity by 2030 – roughly three times the annual consumption of New York City.

Tech companies have already begun to stake claims for increased energy capacity. Case in point: Microsoft’s recent reboot of Three Mile Island. Partnering with Constellation Energy, the tech giant will commandeer the once-shuttered nuclear power plant to power its growing AI capabilities with around-the-clock energy.

And while such deals are great for Big Tech, Pennsylvania households and small businesses remain stuck with ever-increasing electricity bills. Even before the recent rate hike, new polling reveals 78% of Pennsylvanians report increased energy bills over the past two years.

Meanwhile, misguided lawmakers push policies that only exacerbate the problem. For example, Gov. Shapiro’s Lightning Plan – which includes a carbon-tax scheme and mandates more unreliable “green” energy – will add about $157 billion in statewide electricity costs by 2035, according to a new report by Always On Energy and the Commonwealth Foundation. These added costs will double household electricity bills.

So long as these ill-advised policies continue to throttle capacity and generation, the grid will remain a bottleneck to future innovation in Pennsylvania.

To attract new data centers, lawmakers have also flirted with an age-old yet ineffectual solution: corporate welfare. Despite the political appeal, government favors (i.e., tax incentives and subsidies) to attract new businesses often fail.

Pennsylvania’s Independent Fiscal Office found that the commonwealth’s tax credits netted a lousy return on investment, about 25 cents on the dollar.

Others have proven useless: The Pennsylvania Economic Development for a Growing Economy (EDGE) tax credit, which Shapiro wants to expand. has had no takers since its inception in 2022 – not a single dollar.

The best medicine is regulatory reform. Lawmakers should revise electricity regulations to account for reliability and consider all infrastructure costs associated with electricity generation. Also, energy markets need a more predictable permitting process for energy extraction and power plant construction.

Shapiro alluded to fast-tracking permitting for new data centers. Competing with neighbors like West Virginia, which recently passed a bill allowing “microgrid” districts for data centers with standalone power plants, could be beneficial. But there again, the track record of industry-specific reforms is spotty.

Nearly a year ago, Pennsylvania passed the Streamlining Permits for Economic Expansion and Development (SPEED) program to create an expedited permit review and approval process associated with energy production. Today, SPEED remains under development. Shapiro’s call for expedited permitting for data centers appears to be yet another half-measure that won’t accomplish much.

Pennsylvania can’t afford to stop with just one industry. Regulatory reform must be comprehensive and universal, freeing up all economic sectors from onerous red tape.

Pennsylvania, with more than 160,000 individual regulations and restrictions throttling genuine economic development, is one of the most-regulated states. Research suggests a 36% cut in regulations would yield 1% growth in Pennsylvania’s GDP, according to a report coauthored by the Competitive Enterprise Institute and the Commonwealth Foundation.

Before Pennsylvania’s Wyoming Valley can become the next Silicon Valley, the commonwealth must rethink its strategy. Lawmakers must cut red tape, not blank checks to big corporations. Moreover, they must unleash affordable energy, not shackle it with climate-alarmist policies. Without genuine regulatory and energy reform, the commonwealth won’t be able to power the future and will be left in the dark.

Tyler Durden
Thu, 06/12/2025 – 10:40