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California Passes Bill To Accept Crypto For State Payments

California Passes Bill To Accept Crypto For State Payments

Authored by Brayden Lindrea via CoinTelegraph.com,

California has taken a step closer toward embracing crypto after a bill allowing state departments to accept digital currencies sailed through the state’s lower house with a unanimous vote and is now headed for the Senate.

Assembly Bill 1180 (AB 1180), which passed the California State Assembly on June 2 with a 68-0 vote on its third reading, would require the Department of Financial Protection and Innovation (DFPI) to develop rules permitting state fees and transactions under the Digital Financial Assets Law (DFAL) to be payable in crypto.

The DFPI is California’s regulatory agency tasked with overseeing financial services and protecting consumers while promoting responsible innovation. Individuals and entities conducting crypto business activities in the state must obtain a license from the DFPI.

If AB 1180 clears the Senate and is signed into law by Governor Gavin Newsom, the bill would become effective on July 1, 2026.

According to the bill’s sponsor, Democratic Assemblymember Avelino Valencia, a pilot program would run until Jan. 1, 2031, when it would become fully operational.

If AB 1180 is passed, California could join the likes of Florida, Colorado and Louisiana that have accepted crypto payments for certain obligations in recent years.

California’s bill would require the DFPI to submit a report by Jan. 1, 2028, detailing all crypto transactions processed, in addition to any technical and regulatory challenges encountered.

Crypto transactions under DFAL are defined as any digital representation of value that is used as a medium of exchange, but is not legal tender.

AB 1180 saw four amendments before being passed by the California Assembly on June 2.

The most notable exclusion concerned a section that sought to define terms related to ride-sharing companies and personal vehicles used for transportation services.

“Bitcoin rights” bill also in the works 

AB 1180 seeks to complement AB 1052, known as the state’s “Bitcoin rights” bill, which is focused on laying out crypto self-custody rights for the state’s nearly 40 million residents.

AB 1052 was passed in the first assembly committee in a unanimous 11-0 vote on May 23 and has been ordered to a third reading.

The bill would also deem the use of a digital financial asset as a valid and legal form of payment in private transactions and would prohibit public entities from restricting or taxing digital assets solely based on their use as payment.

A total of 117 merchants currently accept Bitcoin payments in California, BTC Maps data shows.

Tyler Durden
Wed, 06/04/2025 – 18:50

Beer Distribution Data Signals “Rough Start” To Summer Drinking Season

Beer Distribution Data Signals “Rough Start” To Summer Drinking Season

The growing prioritization of mental health and wellness—amplified across social media platforms by prominent health influencers—appears to be accelerating a “sobriety revolution” among younger generations. This behavioral shift is increasingly translating into reduced alcohol consumption and presents a structural headwind for beer brands, as Gen Z, in particular, redefines norms around drinking. 

Often labeled the “sober-curious” generation, Gen Z has distanced itself from risky behaviors like alcohol consumption, with drinking rates steadily declining in recent years. This trend was evident in Goldman’s latest survey of beer distributors, which reported weaker-than-expected beer demand over the Memorial Day holiday weekend

Goldman analysts, led by Bonnie Herzog, found that beer trends over the Memorial Day holiday weekend largely underperformed. This data was based on feedback from her beer distributor contacts (representing ~50 beer distributors or >230,000 retail outlets/~46% of total US outlets that sell alcohol). 

Herzog largely attributed sliding beer demand to “a challenging macro environment, which appears to be the primary drag on beer trends—as consumers have less disposable income and are prioritizing non-discretionary purchases. Additionally, recent policy changes (e.g., government stance on immigration) and adverse weather conditions further pressured consumption patterns.”

Sure, a challenging macro backdrop usually squeezes household budgets—but historically, that kind of financial misery fuels more drinking, not less. The real culprit behind the beer slowdown? A generational shift of sober-curious youngsters, supercharged by wellness influencers with large followings on social media, is single-handedly rewiring consumption habits

Here are key beer themes Herzog found for the holiday weekend:

  • Memorial Day weekend trends were softer than expected; 55% of distributors reported weaker sales vs last year.

  • Major drags: weak macro environment, immigration policy uncertainty, and unfavorable weather.

  • Total beer category expected to decline -1.9% in 2025, worse than -1.0% in 2024.

Per brand basis:

  • STZ (Constellation Brands): Mixed performance—Modelo growth moderating, but still outperforming category; Pacifico strong; Corona Extra under pressure. Buy rated.

  • TAP (Molson Coors): Holding onto gains from the Bud Light fallout; Miller Lite & Coors Light slowing but maintaining share. Buy rated.

  • SAM (Boston Beer): Truly expected to decline -11% in 2025; Twisted Tea moderating; Sun Cruiser seen as a bright spot. Sell rated.

  • ABI (Anheuser-Busch): Mixed—Michelob Ultra strong, Bud Light remains weak.

  • HEIN: Weakest of the group.

Retail beer sales declined year-over-year in the four weeks ending May 17, according to recent sales trend data.

By the brands…

STZ: All Brands 

STZ: Modelo

STZ: Corona

TAP: Miller Lite 

TAP: Coors Light

SAM: Twisted Tea

SAM: Truly 

Meanwhile…

While Goldman analysts believe macroeconomic challenges are pressuring low- to mid-income consumers to spend less on booze, financial misery has historically been a reliable catalyst for drinking more—not less. The bigger story is clear: younger generations are simply drinking less, driven by a growing focus on wellness, mental health, and sober lifestyle trends. 

Tyler Durden
Wed, 06/04/2025 – 18:25

Education Department Says Columbia University Fails To Meet Accreditation Standards

Education Department Says Columbia University Fails To Meet Accreditation Standards

Authored by Jacob Burg via The Epoch Times (emphasis ours),

The Department of Education said on June 4 that Columbia University violated a federal civil rights law and thus failed to meet accreditation standards amid allegations of widespread discrimination against Jewish students on campus.

Columbia University in Manhattan, New York City, on May 10, 2021. Samira Bouaou/The Epoch Times

In a Wednesday press release, the department informed Columbia that it had violated Title VI, a federal civil rights law, following an Office for Civil Rights (OCR) investigation that was initiated in early February.

The OCR “notified Middle States Commission on Higher Education (the Commission) that its member institution, Columbia University, is in violation of federal antidiscrimination laws and therefore fails to meet the standards for accreditation set by the Commission,” the release states.

Following widespread pro-Palestinian protests on campus last year after terrorist group Hamas’s Oct. 7, 2023, attack on Israel, the department is accusing Columbia of acting “with deliberate indifference towards the harassment of Jewish students on its campus.”

This is a developing story that will be updated.

Tyler Durden
Wed, 06/04/2025 – 18:00

Ship Carrying 800 EVs Abandoned In Pacific After Fire Breaks Out

Ship Carrying 800 EVs Abandoned In Pacific After Fire Breaks Out

On Tuesday, the Morning Midas—a roll-on/roll-off (RoRo) vehicle carrier—was abandoned by its crew in the central Pacific Ocean following an onboard fire, according to a Bloomberg report. 

The vessel was transporting approximately 3,000 vehicles, including an estimated 800 electric vehicles (EVs). The fire’s origin has not been confirmed, though lithium-ion battery ignition remains a possible cause given the cargo profile and previous mid-sea incidents involving EVs (see here & here). 

Morning Midas had departed China in late May with a scheduled port call in Mexico, according to Bloomberg data. 

The US Coast Guard evacuated all 22 crew members from the RoRo carrier to a nearby merchant vessel earlier today. Coast Guard sea-based assets are en route to the incident area.

The ship’s manager, Zodiac Maritime, confirmed that smoke was billowing from the deck. A company spokesperson said salvage support teams are en route.

Insurance giant Allianz has long emphasized the need to strengthen safety protocols for all maritime shipments involving lithium-ion batteries given the proliferation of green tech around the world. 

Tyler Durden
Wed, 06/04/2025 – 17:40

Federal Judge Dismisses DNC ‘Election Interference’ Lawsuit Against Trump Admin

Federal Judge Dismisses DNC ‘Election Interference’ Lawsuit Against Trump Admin

Authored by Stacy Robinson via The Epoch Times,

U.S. District Judge Amir Ali on June 3 dismissed a lawsuit by the Democratic National Committee (DNC) that claimed that President Donald Trump would someday harness the power of the executive branch to interfere in upcoming elections.

The suit was brought in response to an executive order by Trump that said the president and the attorney general would have the final say on legal questions regarding executive branch employees.

“The President and the Attorney General’s opinions on questions of law are controlling on all employees in the conduct of their official duties,” the executive order reads.

The DNC said this means Trump would exercise too much control over the Federal Election Commission (FEC) and might use that power to cripple his political opponents.

The FEC intervened in the suit on behalf of Trump, stating that it would remain neutral. It is composed of six members and can never have more than three members from the same political party.

During a hearing on April 9, FEC attorney Jeremy Newman said the FEC’s stance on election law has not changed since the order was issued and that any future decisions it made would continue to reflect the commissioners’ deliberations, not those of the president.

He characterized the DNC’s legal action as premature and said the FEC retains its independence.

“Something else needs to happen, and we know for sure that ‘something’ has not happened,” he said.

Dan Fox, attorney for the DNC, said that “the FEC would prefer to bury their heads in the sand” and pretend there is no problem with the executive order, which he said was already having a “chilling effect” on the DNC’s day-to-day operations.

Ali seemed skeptical of those claims, warning the plaintiffs not to “manufacture standing based on fear of future harms.”

“At bottom, the committees’ claim and stated basis for an injunction is that their dealings with the FEC have changed or will change, and governing precedent requires them to point to a concrete basis for this conclusion,” he said in his written opinion.

“They have not done so here.”

Judge Ali also noted that the FEC had already stated in court that it would not deviate from its mission even under guidance from the Trump administration, but he said that the court would be willing to hear more arguments from both parties if the situation changed in the future.

The suit arises at a time when the Democrats seek to wrest back control of the government from the GOP, which holds both chambers of Congress and the presidency. The 2026 elections will be top of mind for both parties.

Tyler Durden
Wed, 06/04/2025 – 17:20

Who Really Are The Lawless & The Dictatorial?

Who Really Are The Lawless & The Dictatorial?

Authored by Victor Davis Hanson,

The left is in its usual sanctimonious but schizophrenic mood.

The media claims daily that the Trump administration has usurped power.

It is supposedly destroying democracy. It tramples on the rule of law and thus has created a virtual dictatorship.

Yet at the same time, Democrats high-five the most recent district court judge who has put a stop to the current Trump executive orders—which the Trump administration abides by as it files appeals.

There are two clear conclusions from the flurry of the lower-court liberal justices’ orders:

1) Trump has obeyed their record number of interventions as the appeals go forward; and

2) rarely in the history of the republic has a pool of some 300-400 left-wing district judges exercised such nationwide control over the executive branch and indeed the entire nation.

Yet consider the array of double standards.

Donald Trump is accused of improperly dictating to private elite universities who choose to apply for and receive federal funds. At least, lower court cherry-picked justices predictably rule so.

But please spare us the district courts’ sermons on truth, justice, and the American way, given their lodestar is often ideology, not principled adherence to the law.

After all, Trump is only following the precedents of the Obama administration. With legal impunity, it had threatened fines and worse to public and private universities that did not fully implement Title 9 to Obama’s subjective standards.

Indeed, the Obama Department of Education Office of Civil Rights, in an unconstitutional fashion, habitually threatened colleges and universities (“Dear Colleague…”) with a cutoff of federal funds if they did not comply with its weird version of addressing charges of campus sexual harassment. For the “constitutional lawyer” Obama, gone was the American creed that Americans accused on campus were innocent unless proven guilty “beyond a reasonable doubt.”

For the Harvard Law graduate Obama, gone were even past administrative rules that required “clear and convincing evidence” to convict the accused.

Instead, it ordered campuses to adopt its new Orwellian standard that a mere “preponderance of the evidence” might find the targeted guilty—or risk losing federal funds.

Hillsdale College long ago declined federal subsidies and grants, only to be a target of petty, even spiteful, federal harassment from both the Obama and Biden administrations.

Imagine what would be our current district court judges’ attitude toward an administration’s “interference” in denying federal funds to a campus that allowed black students to be serially harassed and assaulted on campuses—and their attackers honored by the university, in the manner that Jewish students and their assailants are today at Harvard. Would a judge really forbid the federal government from attaching conditions to its optional funding, requiring campuses to follow the law and protect at-risk students?

Imagine what district judges would say should visiting white South African students, here on student visas, trash the libraries of their hosts and rough up minority janitors or surround a library to threaten students of color trapped inside—and do so with assumed campus impunity?

Would our principled district judges really forbid a Democratic administration from holding back federal funds to force sanctimonious college presidents to stop such racially inspired campus violence?

Would the United States Court of Appeals for the Ninth Circuit rule that universities had violated the corpus of civil rights legislation and the 2022 Supreme Court decision if they ever allowed segregated “European-American” auxiliary graduations or de facto segregated Euro-dorms (“theme houses”)?

What if African-American students with higher test scores and GPAs on average than their white counterparts were systematically discriminated against in admissions to ensure that the incoming admitted class was composed of roughly no more than two percent black males —perhaps in the manner of the last few years when about 9 percent of the incoming Stanford classes were apparently designated white males (who make up 33-35 percent of the population)?

Would the lower courts stop a Democratic administration that forced such a racially discriminating university to follow prior civil rights court decisions and federal laws—or else?

Would our lower courts rebuke a Democratic administration that had warned a campus to abide by protections of the First Amendment if they wished continuance of federal funds—and thus, say, stop white male frat students from shouting down, disrupting, harassing, and threatening a speech of a transgendered visiting federal judge—as one of its own right-wing male administrators hijacked and prematurely ended the guest’s lecture?

When CBS’s Scott Pelley hijacked a graduation address to deliver a Bruce Springsteen-like rant against Trump, the purported tyrant, did he specify how the elected president has trampled the Constitution? Does Trump’s press secretary selectively edit her transcripts, as CBS does, to show the president in a more favorable light?

Has Trump followed any of the precedents established during the prior four years of the Biden administration?

Did he, Mr. Pelley, coordinate local, state, and federal prosecutors to warp the law and try to imprison his 2020 and 2024 political opponent?

The left talks of Elon Musk as a Trump oligarch threatening democracy. Has Musk been convicted of a felony charge of insider trading in the manner that billionaire and donor George Soros was in France? Is he now in prison like left-wing mega-donor and disgraced oligarch Sam Bankman-Fried?

Note well that in the days after Trump’s 2022 announcement to seek reelection, the Biden DOJ appointed Jack Smith as a federal prosecutor to prosecute Trump.

At roughly the same time, Nathan Wade, the lead prosecutor for Fani Willis’s Georgia prosecution of Trump, mysteriously showed up in Washington to meet with the White House counsel. Why?

Stranger still, Matthew Colangelo—formerly the DOJ’s third-ranking prosecutor and a key figure in Letitia James’s ridiculous New York case—left the department once again to rejoin the legal campaign against Trump by leading Alvin Bragg’s municipal prosecution of Trump.

Note also that Smith left his billet under a cloud of ethics conflicts after receiving free legal services and not initially reporting such gifted conflict-of-interest income. Fani Willis was forced off her prosecutions for numerous ethical violations and indeed fined for not turning over subpoenaed documents. Letitia James is currently facing federal investigations ranging from mortgage, mail, and banking fraud to falsification of documents.

So far, Trump has not sent the FBI to raid the multiple Biden residences to search for more classified documents, given Biden’s serial history of improper possession of such materials.

Did Jack Smith, in Robert Hur fashion, ever claim that Trump was not feasibly prosecutable because he had a poor memory, perhaps citing the illustrious work of fired Yale psychiatrist professor and left-wing heartthrob Dr. Bandi Lee, who had earlier tele-diagnosed Trump as demented?

Are any red states currently coordinating to take the 2028 Democratic nominee off their state ballots following the lead of democratic Democrats?

Trump was certainly not nominated by Republican Party insider fiat in 2024. Instead, he ran as a maverick disruptor and won the nomination in open primaries. Kamala Harris was selected by Democrat insiders—despite never having won a single delegate or primary vote in her two nomination bids.

Joe Biden, whose prior 2020 nomination was fixed by party insiders, won the 2024 nomination by winning 14 million primary votes. But he was kicked off the ticket by the same party insiders and donors who had orchestrated his prior nomination. Is that the new Democrat-style of democracy of nullifying the wishes of 14 million voters?

The left talks endlessly of the “rule of law.” But they have crafted a funny sort of selective and self-interested jurisprudence. If a local or state entity decides it does not find federal immigration convenient, it simply defies federal orders to turn over those who have entered and resided in the country illegally, even or especially in the case of the detained who have committed crimes.

In the ancient days, Americans called that defiance “nullification.” Indeed, it was always associated with “states’ rights,” and a long history of insurrectionary illegality from the Confederacy to George Wallace standing in the door of the University of Alabama.

But the left now calls those entities that nullify federal laws “sanctuary cities”—although it would go ballistic should a red country similarly declare the federal Endangered Species Act or gun registration laws nullified in their “sanctuary” jurisdictions. Indeed, a Democrat administration would likely apply a January 6-like preventative detention and indefinite incarceration to any such nullifying “insurrectionaries.”

Are the Trump White House and the Republican majority Senate now maneuvering to end the filibuster as the Democrats once threatened? Are they trying to pack the Supreme Court to ensure more appointments before 2029, in the fashion that Democrat presidential candidates used to promise? Or are they threatening to end the Electoral College as Democrats habitually bluster?

I do not remember, during the current Trump tenure, the FBI suppressing knowledge of evidence in the manner of its Biden-era smothering of Hunter’s authenticated laptop to influence an election. Are Trump’s FBI lawyers doctoring evidence to frame their targets à la Kevin Clinesmith?

In Trump’s first 120 days, I don’t recall FBI Director Kash Patel leaking confidential presidential conversations to the New York Times, or ordering the FBI to collect dirt on Democratic candidates, or hiring a fraudulent ex-British spy to compile a lurid dossier on AOC or Bernie Sanders. Has Patel lied four times to federal investigators following the prompt of Andrew McCabe?

Nor has Patel ordered his agents to work with Facebook and Twitter to suppress embarrassing press coverage about the Trump family.

The Trump Secret Service is not a private retrieval service that hunts down his children’s missing, lurid diaries or incriminating lost laptops or illegally acquired lost handguns.

Is there now a White House-conservative media cabal covering up a Trump cancer diagnosis or demonstrable senility?

So far, the Trump CIA Director John Ratcliffe and Tulsi Gabbard, Director of National Intelligence, have not repeatedly lied under oath to Congress, following the precedents of the Obama-era CIA Director John Brennan and DNI James Clapper.

So please, spare us the sanctimonious lectures on “tyranny” and “dictatorship” from the very ideologues who have done and are doing more to wreck the Constitution and destroy the confidence of the American people in the rule of law than any generation in modern memory.

Tyler Durden
Wed, 06/04/2025 – 16:40

Kill (The) Bill: Musk Goes Ballistic Against GOP Tax And Spending Package

Kill (The) Bill: Musk Goes Ballistic Against GOP Tax And Spending Package

Let’s be honest, Elon Musk has been made a fool of by the GOP. After assembling the DOGE team and spending months finding egregious levels of waste, fraud and abuse within the US government – i.e. what Trump supporters voted for – House and Senate Republicans gave Musk a little pat on the head, then proceeded to roll out President Trump’s ‘Big Beautiful Bill’ – that codified exactly zero of DOGE’s findings, raises the debt ceiling by $5 trillion, and relies on ambitious economic projections to achieve what the White House insists is $1.4 trillion in savings (while the Congressional Budget Office projects deficits of $1.7 – $2.3 trillion over the next decade). 

Needless to say, Musk is livid. 

On Tuesday, Musk posted to X, “I’m sorry, but I just can’t stand it anymore. This massive, outrageous, pork-filled Congressional spending bill is a disgusting abomination.”

His post was immediately met with support from Sen. Rand Paul (R-KY), who said “We can and must do better.” 

This sent the White House scrambling to do damage control – with Budget Director Russ Vought sending Congress a request for a $9.4 billion clawback for unspent foreign aid funding – which if you’re Musk, after what DOGE has uncovered, is a huge slap in the face.

Kill (the) Bill

On Wednesday, Musk continued to rage on X – posting: “Call your Senator, Call your Congressman, Bankrupting America is NOT ok! Kill the Bill.” – followed by a ‘Kill Bill’ movie poster featuring Uma Thurman. 

Musk’s solution? A new spending bill that doesn’t jack the debt ceiling by $5 trillion dollars while “massively” growing the deficit. 

Musk also amplified several posts supporting his position;

Needless to say, the GOP has quite the shitshow on its hands. Maybe next time enact the will of the people, bitchez.  

Tyler Durden
Wed, 06/04/2025 – 16:20

Beige Book Finds US Economy Diverging By Party Lines, No Trace Of Runaway Inflation

Beige Book Finds US Economy Diverging By Party Lines, No Trace Of Runaway Inflation

Many were stunned after the latest inflation and core PCE data confirmed that the experts were once again dead wrong, and instead of the widely expected inflation tsunami, Trump’s tariffs have so far sparked only continued disinflation (which will only become more acute as home prices slide). And yet, anyone who read our Beige Book analysis from last month (not to mention our prediction from last June that “The Experts Are All Wrong About Inflation Under A Trump Presidency“) would have known just that: as we laid out, “Beige Book Finds Inflation Mentions Tumble To 3 Year Low” which was the clearest indication that despite the prevailing narrative, rising prices is simply not a thing businesses across the US are worried about.

Fast forward to today when the latest, May, Beige Book was released, and it revealed that according to reports across the 12 Fed district, “economic activity has declined slightly since the previous report” with half of the districts reporting slight to moderate declines in activity, three Districts reported no change, and three Districts reported slight growth. And here an interesting divergence appears, because the Beige Book appears to reveal another party-line split. Here are the districts that reported declines in activity:

  • New York
  • Boston
  • Philadelphia
  • San Francisco
  • Minneapolis
  • Kansas City
And the districts that reported flat/slowing activity:
  • Cleveland
  • Dallas
  • Richmond
  • Atlanta
  • Chicago
  • St Louis

In any case, the Beige Book said that all Districts reported elevated levels of economic and policy uncertainty, which have led to hesitancy and a cautious approach to business and household decisions. Manufacturing activity also declined  slightly, while consumer spending reports were mixed, with most Districts reporting slight declines or no change; however, some Districts reported increases in spending on items expected to be affected by tariffs.

Elsewhere, residential real estate sales were little changed, and most district reports on new home construction indicate flat or slowing construction activity. Reports on bank loan demand and capital spending plans were mixed. Activity at ports was robust, while reports on transportation and warehouse activity in other areas were mixed.

On balance, the outlook remains slightly pessimistic and uncertain, unchanged relative to the previous report. Yet, here too, confusion was the dominant them, with a few District reports indicating the outlook has deteriorated while a few others indicating the outlook has improved.

Focusing on labor markets, the Beige book reported the following:

  • Employment has been little changed since the previous report.
  • Most Districts described employment as flat, three Districts reported slight-to-modest increases, and two Districts reported slight declines.
  • Many Districts reported lower employee turnover rates and more applicants for open positions.
  • Comments about uncertainty delaying hiring were widespread: all Districts described lower labor demand, citing declining hours worked and overtime, hiring pauses, and staff reduction plans.
  • Some Districts reported layoffs in certain sectors, but these layoffs were not pervasive.
  • Two Districts noted that, for many of their contacts, hiring plans had not changed since the start of the year.
  • Wages continued to grow at a modest pace, although many Districts reported a general easing in wage pressures.
  • A few Districts indicated that higher costs of living continued to put upward pressure on wages.

As for prices, it should come as no surprise by now that the runaway inflation everyone was expecting just isn’t there. Here is Beige book confirmation: 

  • Prices have increased at a moderate pace since the previous report.
  • There were widespread reports of contacts expecting costs and prices to rise at a faster rate going forward (although expectations don’t pay the bills).
  • A few Districts described these expected cost increases as strong, significant, or substantial (once again, it’s all expected, nothing is realized).
  • All District reports indicated that higher tariff rates were putting upward pressure on costs and prices (so high that price increases were at most moderate, i.e., in line with history).
  • However, contacts’ responses to these higher costs varied, including increasing prices on affected items, increasing prices on all items, reducing profit margins, and adding temporary fees or surcharges.

There was a new section added to this month’s Beige Book, one looking at the fate of US energy:

  • Energy industry contacts reported moderate growth across most sectors.
  • Liquefied natural gas production, exports, and overall global demand remained an area of strength.
  • While domestic demand for U.S. crude oil was steady, global demand softened.
  • Utility companies described robust residential power demand, modest growth in commercial, and some slowing in industrial.
  • Although utility sector contacts reported growth opportunities linked to data center development, some noted a slight deceleration in activity, attributed to concerns over potential tariffs increasing the cost of power infrastructure and impeding investment.
  • Offshore wind contacts reported a significant decline in demand, resulting in downsizing.

In short, for yet another month, the sky is not falling.

Here is a snapshot of highlights by Fed District:

  • Boston: Economic activity decreased slightly overall. Consumer spending at retail stores and restaurants slowed modestly. Employers paused hiring because of heightened uncertainty, with employment declining slightly and wages increasing just barely. Prices increased only slightly, but larger price increases were expected for the summer. Contacts expressed mixed views concerning the outlook.
  • New York: Economic activity in the Second District continued to decline modestly amid heightened uncertainty. Employment held steady, though demand for workers softened and wage growth slowed to a modest pace. Selling price increases remained moderate, but input prices grew strongly with tariff-induced cost increases. Capital spending plans declined, and the outlook was quite pessimistic.
  • Philadelphia: Business activity declined modestly in the current Beige Book period, as it did in the last period. Employment declined slightly, despite an uptick in manufacturing sector jobs. Wages increased slightly, and firm price inflation was up moderately. Existing home sales grew slightly, and new home sales declined moderately. Expectations for future growth rose moderately for manufacturers and slightly for nonmanufacturers.
  • Cleveland: District business activity continued to be flat in recent weeks, and contacts expected activity to remain flat in the months ahead. Retailers noted a pullback in consumer spending, and manufacturers reported softer orders. Many contacts attributed robust cost increases to tariffs and said that their selling prices increased moderately.
  • Richmond: The regional economy continued to grow mildly in recent weeks. Consumer spending and nonfinancial services demand picked up slightly, financial services demand and real estate activity were little changed, and manufacturing activity contracted slightly. Port volumes increased strongly due to a surge in import activity. Employment rose slightly, wage growth was modest, and overall price growth remained moderate.
  • Atlanta: The economy of the Sixth District grew slightly. Employment was steady, and wage pressure decreased. Prices increased moderately. Consumer spending was flat, and travel and tourism declined modestly. Home sales rose slightly. Transportation activity grew at a modest pace. Loan growth slowed. Manufacturing fell, but energy activity rose slowly.
  • Chicago: Economic activity increased slightly. Consumer spending and employment increased modestly; business spending and construction and real estate activity were flat; manufacturing declined slightly; and nonbusiness contacts saw a slight decline in activity. Prices and wages rose modestly, and financial conditions loosened slightly. Prospects for 2025 farm income increased some.
  • St. Louis: Economic activity has remained unchanged, but the outlook has slightly deteriorated. Employment levels were unchanged, and wage growth has been modest. Contacts expressed elevated uncertainty and concern that tariffs would result in further cost increases.
  • Minneapolis: The District economy contracted slightly overall. Employment was flat and wages grew moderately. Some employers were preparing contingency plans for potential layoffs. Prices increased moderately overall; some contacts were adding or considering tariff surcharges. Manufacturing increased moderately and consumer spending fell. Agricultural conditions remained weak, but crop progress was solid.
  • Kansas City: Overall activity declined moderately, driven by lower retail spending, a decline in the demand for single-family homes, and a slight contraction in manufacturing. Businesses indicated they were increasingly cautious about hiring plans and capital expenditures, but employment levels were steady.
  • Dallas: Economic activity in the Eleventh District economy was little changed over the reporting period. Nonfinancial services activity held steady and growth in the manufacturing sector slowed. Loan volumes grew slightly, and the housing market remained subdued. Employment was flat and price pressures held steady except for the tariff-related increases seen in the manufacturing sector. Outlooks generally deteriorated, and tariff uncertainty was making it hard for businesses to plan for the future.
  • San Francisco: Economic activity slowed slightly. Employment levels were generally stable. Wages rose slightly and prices increased modestly. Retail sales and consumer and business services demand eased. Conditions in manufacturing, agriculture, and real estate markets softened slightly. Activity in the financial services sector was stable.

And finally, confirming that contrary to conventional wisdom the economic picture has been largely unchanged since April, the latest February Beige Book saw just 1 mention of recessions, the lowest this year, and down sharply from 6 three months prior. Where there was some concern is that mentions of “slow” rose from from 50 in April (which was down to 53, the biggest highlight for another month is that contrary to prevailing media narratives, mentions of inflation actually rose ever so modestly from a three-year low of 8 to 10, the second lowest going back to the start of 2022.

All of which suggests that the US economy – while hardly on fire as it was during the hyperinflationary period of Biden’s admin – continues to chug along and is hardly collapsing as so many Trump foes would like to see; and it certainly is not seeing prices explode higher.

Tyler Durden
Wed, 06/04/2025 – 15:59

Chinese Nationals Caught Smuggling “Agroterrorism” Fungus Into America’s Breadbasket

Chinese Nationals Caught Smuggling “Agroterrorism” Fungus Into America’s Breadbasket

In a plot that reads like a Tom Clancy novel crossed with a dystopian agribusiness nightmare, two Chinese nationals, Yunqing Jian, 33, and Zunyong Liu, 34, have been slapped with federal charges for allegedly smuggling a biological ticking time bomb into the U.S. 

The weapon? Fusarium graminearum, a fungus dubbed a “potential agroterrorism weapon” by scientific literature, capable of wreaking havoc on America’s wheat, barley, maize, and rice crops while poisoning humans and livestock with its toxic byproducts. 

The stage? Detroit Metropolitan Airport, where Liu’s clumsy attempt to sneak the pathogen past Customs and Border Protection (CBP) officers unraveled faster than a cheap yuan store sweater.

The Department of Justice dropped the hammer on Tuesday, June 3, 2025, charging Jian and Liu with conspiracy, smuggling, false statements, and visa fraud.

Jian, a postdoctoral researcher at the University of Michigan’s Molecular Plant-Microbe Interaction Laboratory, and her boyfriend Liu, a researcher at Zhejiang University in China, allegedly conspired to bring this crop-killing fungus to a U.S. lab for “research.” 

But let’s cut through the academic veneer: Fusarium graminearum isn’t your garden-variety mold. It causes “head blight,” a disease that can devastate staple crops, costing global agriculture billions annually. 

Worse, its toxins induce vomiting, liver damage, and reproductive issues in humans and animals. In the wrong hands, it’s a bioweapon straight out of a Pentagon threat assessment.

The story begins in July 2024, when Liu landed in Detroit on a tourist visa, claiming he was visiting his girlfriend. CBP officers, not buying the innocent tourist act, searched his luggage and found four plastic baggies stuffed with reddish plant material, later confirmed to be laced with Fusarium graminearum. Liu initially played dumb, insisting someone must have planted the stuff in his bag—a story that collapsed faster than China’s commercial real estate bubble. 

After squirming under questioning, he admitted to hiding the samples in a wad of tissues to dodge CBP scrutiny, intending to deliver them to Jian’s lab at the University of Michigan for “research.”

But the plot thickens. Electronic communications between Jian and Liu, uncovered by the FBI, suggest this wasn’t a one-off. Messages from 2022 show Jian discussing how to smuggle biological materials past CBP, even boasting about hiding samples in her shoes during a previous trip. In early 2024, she reportedly arranged for an associate in China to mail a book with a plastic bag of material hidden inside. And then there’s the kicker: Jian’s phone contained a signed pledge of loyalty to the Chinese Communist Party (CCP), alongside evidence of funding from a Chinese government-backed foundation for her research on—surprise, surprise—Fusarium graminearum. Liu’s phone wasn’t clean either, harboring an article titled “2018 Plant-Pathogen Warfare Under Changing Climate Conditions,” which explicitly flags the fungus as a crop-destroying threat.

The FBI’s counterintelligence division, not known for chasing shadows, labeled this a “grave national security concern.” U.S. Attorney Jerome Gorgon didn’t mince words, calling the smuggling attempt a deliberate move to introduce a pathogen that could paralyze America’s agricultural crop belts

Cheyvoryea Gibson, Special Agent in Charge of the FBI’s Detroit Field Office, echoed the sentiment, framing the charges as a “crucial advancement” in safeguarding national security. Even CBP’s Marty Raybon chimed in, emphasizing the agency’s role in stopping biological threats that could “devastate our agricultural economy.

Jian, now in custody and deemed a flight risk, appeared in a Detroit federal court on Tuesday, where a judge ordered her held without bond pending a hearing. Liu, meanwhile, was sent back to China after his airport interception; his current whereabouts are unknown. Both have a history with the fungus, having co-authored multiple papers on Fusarium graminearum since 2014, which raises questions about how long this scheme was in development. Denials of involvement appear to have crumbled under the weight of text messages suggesting Jian was already cultivating the pathogen in the Michigan lab before Liu’s arrival.

Now, let’s connect the dots the mainstream won’t touch. The CCP’s fingerprints are all over this. Jian’s funding ties to a Chinese government-backed foundation and her pledged allegiance to the Party aren’t exactly subtle. Liu’s role at Zhejiang University, a known hub for CCP-aligned research, only adds fuel to the fire. 

Posts on X are buzzing, with users like @TrashDiscourse connecting the dots on potentially broader PLA strategies.

Skeptics might argue that this is just a case of overzealous researchers cutting corners for the sake of science. However, when factoring in the CCP connections and the pathogen’s classification as a potential bioweapon, the “innocent scientist” narrative starts to look like a fairy tale for gullible NPR listeners.

The bigger picture is grim. America’s food supply is a soft target, and a well-placed pathogen could collapse the Midwest’s grain belt, spike food prices, and sow chaos in an already fragile economy. 

With global tensions simmering and China flexing its biotech muscle, this incident raises red flags about what else might be slipping through the cracks. The University of Michigan, caught flat-footed, now faces scrutiny over its lax oversight of foreign researchers. And while Jian sits in a Detroit cell, the question lingers: how many other “researchers” are out there, quietly probing America’s vulnerabilities?

This isn’t just a smuggling bust—it’s a wake-up call. America’s already fragile food supply chain may be the next target in a broader campaign of irregular warfare by a foreign adversary.

From exporting fentanyl precursor chemicals to Mexican cartels—subsidized by Beijing and now causing over 100,000 U.S. deaths annually among working-age adults—to undermining national readiness by taking out military-aged men and women, China appears to be playing the long game: destabilizing America from within.

This is yet another reminder of why Americans must secure local food supply chains—whether that means strengthening ties with nearby farmers and ranchers or simply starting a backyard garden or chicken coop.

Tyler Durden
Wed, 06/04/2025 – 15:58

Ayatollah Rejects US Nuclear Proposal, Vows Iran To Keep Enriching Uranium

Ayatollah Rejects US Nuclear Proposal, Vows Iran To Keep Enriching Uranium

Iran has finally reacted to the US proposal for a fresh nuclear deal which was submitted Saturday via Omani mediators, and as expected it has dismissed Washington demands to take uranium enrichment down to zero.

Iran’s Supreme Leader Ayatollah Ali Khamenei has made clear in fresh statements Wednesday that abandoning uranium enrichment was “100%” against the Islamic Republic’s interests. This comes on the heels of a Truth Social post issued by President Trump which said in all caps: WE WILL NOT ALLOW ANY ENRICHMENT OF URANIUM.

Khamenei as the Ayatollah, or top Shia religious cleric, has final say over all matters of state policy, but notably he didn’t call for halting the talks altogether, after it’s gone through five rounds, including at Rome.

Ayatollah Ali Khamenei’s Wednesday televised speech, via EPA

He said the US proposal “contradicts our nation’s belief in self-reliance and the principle of ‘We Can'”. This is consistent with Iranian officials’ prior position defending enrichment as a matter of national sovereignty that cannot fully be abandoned.

The question that remains is whether the US would allow for limited, lor low-levels of enrichment, instead of the ‘down to zero’ position which is being hotly debated about. “Uranium enrichment is the key to our nuclear program and the enemies have focused on the enrichment,” Khamenei said during a televised speech.

He addressed the nation on the anniversary of the death of the Islamic Republic’s founder, Ayatollah Ruhollah Khomeini. He made it very clear where Tehran stands on the proposal currently offered by the Trump White House:

The proposal that the Americans have presented is 100% against our interests … The rude and arrogant leaders of America repeatedly demand that we should not have a nuclear programme. Who are you to decide whether Iran should have enrichment?,” he added.

There has been somewhat contradictory messaging coming out of Washington, with the Wall Street Journal having reported Sunday that the White House issued a directive last week telling federal agencies to halt the imposition of any new sanctions on Iran. Does this mark a step back from ‘maximum pressure’ in order to give talks a better chance?

“The new policy went out to top officials at the National Security Council and Treasury Department, and then to the State Department,” WSJ said.

“Relevant officials working on the Middle East were looped in, but the directive had to spread much further. Iran sanctions intersect with U.S. policy toward China, where buyers take in more than 90% of Iran’s oil exports, as well as Japan, Europe, India and Southeast Asia.”

Over the weekend White House Press Secretary Karoline Leavitt warned in a statement. “Special Envoy Witkoff has sent a detailed and acceptable proposal to the Iranian regime, and it’s in their best interest to accept it.”

However, Iran responded by demanding transparent and firm guarantees regarding the “real end of the sanctions” which would also feature details on “how and through what mechanism” they would be dismantled.

Tyler Durden
Wed, 06/04/2025 – 14:40