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Ex-Trump NSC Official Fears OpenAI ‘Completely Penetrated’ By Multiple Spy Agencies

Ex-Trump NSC Official Fears OpenAI ‘Completely Penetrated’ By Multiple Spy Agencies

OpenAI, the world’s most valuable artificial intelligence company, is likely being targeted by espionage from multiple nation-states, warns Josh Steinman, a former Trump National Security Council staffer and cybersecurity company founder.

I would be willing to bet a large amount of information that OpenAI is completely penetrated by multiple intelligence agencies—and has been for a while,” Steinman, co-founder and CEO of Galvanick, a cybersecurity company building tools to secure industrial infrastructure and AI systems, 

said in an interview with World of DaaS with Auren Hoffman.

When asked how companies can prevent espionage, Steinman conceded it’s challenging but emphasized that rigorous and selective hiring practices are key. “You just have to be very mindful of who you’re hiring and where you are putting them in your company,” Steinman told Hoffman. “You need to be realistic about who your employees are.”

Watch the full interview:

Steinman referenced a bombshell Wall Street Journal report that alleges Chinese officials, during a secret meeting in Geneva, Switzerland in December 2024, privately acknowledged their role in the Volt Typhoon cyberattacks targeting U.S. critical infrastructure. According to the Journal, the officials’ remarks were “indirect” and “somewhat ambiguous” but sufficient to tie Volt Typhoon and the Chinese government to the relentless cyber assaults on American systems.

The campaign, believed to have started no later than 2023, has unleashed chaos, breaching major U.S. phone carriers, electric utilities, IT firms, internet providers, and government agencies. Volt Typhoon and Salt Typhoon, two Chinese groups, have been repeatedly linked to these hacks.

In July 2024, OpenAI disclosed it was the victim of a security breach in 2023 that exposed internal AI technology secrets, sparking fresh concerns of espionage by foreign adversaries, particularly China. According to the New York Times, a hacker infiltrated OpenAI’s internal messaging systems, accessing employee discussions about AI designs.

As president-elect, Trump’s transition team signaled a more aggressive stance against Chinese cyberattacks. Brian Hughes, a spokesperson for the Trump-Vance transition, told News News that the administration was “committed to imposing costs on private and nation-state actors who continue to steal our data and attack our infrastructure.”

The Trump Administration is committed to imposing costs on private and nation state actors who continue to steal our data and attack our infrastructure,” Hughes added at the time. 

Tyler Durden
Tue, 05/06/2025 – 18:00

Oklo, Nuclear Names Surge Higher After Report White House “Accelerating” Nuclear With Executive Orders

Oklo, Nuclear Names Surge Higher After Report White House “Accelerating” Nuclear With Executive Orders

Nuclear stocks jumped mid day Tuesday after Axios reported that The White House is poised to issue executive orders aimed at accelerating the deployment of nuclear reactors across the United States.

One of our favorite names in the space, Oklo, spiked to new highs heading into the closing 30 minutes of the cash session on strong volume:

The White House actions are expected to leverage the Departments of Defense and Energy to expedite reactor deployment, potentially circumventing delays from the Nuclear Regulatory Commission (NRC).

This initiative aligns with the administration’s strategy to meet the surging energy demands driven by sectors like artificial intelligence and advanced manufacturing.

Publicly traded companies positioned to benefit from this nuclear expansion include our favorite, Oklo, formerly backed by OpenAI CEO Sam Altman.

The company is among eight companies selected to provide microreactors for U.S. military bases, aiming to supply 100% of critical energy needs at these sites.

These developments are part of a broader trend toward revitalizing the U.S. nuclear energy sector.

The ADVANCE Act of 2024, signed into law in July, aims to streamline the licensing process for advanced nuclear technologies, reduce regulatory costs, and promote the development of next-generation reactors.

Additionally, in a rare show of bipartisan agreement, the Biden administration had formerly expressed intentions to triple the nation’s nuclear power capacity by 2050, recognizing nuclear energy’s role in achieving carbon-free electricity goals.

The anticipated executive actions reflect a concerted effort to modernize the U.S. energy infrastructure, with nuclear power playing a central role in ensuring energy security and meeting future demands.

As of early 2025, 411 nuclear reactors operated worldwide with a combined 371-gigawatt capacity. Amazon, investing over $1 billion in nuclear projects, is exploring small modular reactors, while Meta and Google are also considering the emerging technology.

We’ve been following the story since late 2023. We wrote back in early November that Mark Zuckerberg reportedly told Meta workers that plans to build an AI data center powered by nuclear energy were scrapped after rare bees were discovered on the proposed site.

But by December last year it looked like things could be back on track, according to reporting from Axios, who noted first that Meta is joining industry heavyweights like Amazon and Google in exploring nuclear energy as a zero-carbon solution.

And as we have continued to report, accelerating power demand growth from AI data centers has sparked a nuclear power revival in the US:

For those who missed it, in our note “The Next AI Trade” from April 2024, more than one year ago, we outlined various investment opportunities for powering up America, most of which have dramatically outperformed the market since then.

Tyler Durden
Tue, 05/06/2025 – 15:40

“Zero Cancelations”: Ferrari Stock Races Higher Amid “Hot” Demand For Supercars Despite Tariffs

“Zero Cancelations”: Ferrari Stock Races Higher Amid “Hot” Demand For Supercars Despite Tariffs

While most global car companies – even Tesla – are suspending guidance, cursing tariffs for plunging demand and barely treading water at a time when Chinese dumping of its own cars has flooded the European market with ultra cheap alternatives while Democrats in the US have sworn to never again buy anything from Elon Musk, one car company stands above all others. Shares of Italian supercar maker Ferrari rose over 1.0%, and was trading not far below its all time high, after the Italian luxury carmaker reported Ebitda for the first quarter that met analyst estimates, with Bernstein saying the company stands out against rivals after it maintained its guidance.

Another reason why Ferrari’s stock is likely to take out record highs on short notice: demand for the company’s supercars in the US remains “hot” despite price increases to offset Donald Trump’s tariffs, the CEO said as the company maintained its guidance for profit growth this year.

The Italian company is exposed to Trump’s 25% tariffs on imports of foreign-made cars since it makes all of its cars in Italy, even though the US is its largest market and is where it sells about one in four cars. But, unlike virtually every other company, the luxury-car maker also has enough brand strength to pass on the tariff costs to consumers. In other words, if you can pay $300K for a car, you will be just as likely to pay $400K.

The company on Tuesday said it had not received cancellations in its order book — which already covers the whole of 2026 — even after it announced plans in March to raise prices for some of its models by up to 10 per cent.

“Today, we don’t see any weakening of the order book,” said chief executive Benedetto Vigna. “When it comes to the tariff, specifically, I think the order book and the portfolio we have allow us to navigate with better visibility.”

According to the FT, Ferrari reported a 23% YoY increase in Q1 operating profit to €542 million while revenue increased 13% to €1.79bn. Both metrics, which beat estimates, reflected continuing demand for personalisation, with buyers adding expensive features to their supercars.

While many other carmakers have withdrawn or sharply reduced their guidance over the past week, Ferrari broadly stuck with its previous forecast for an adjusted operating profit of at least €2bn and a profit margin of at least 29%.  Ferrari cautioned that the guidance faced a potential risk of a 50bps reduction on profitability percentage margins, but considering how its peers Ford and GM have been slashing guidance, 0.5% seems like a joke by comparison.

“Ferrari stands out, reporting consensus-beating first-quarter results and confidently reiterating its fiscal 2025 guidance,” Bernstein analysts wrote, describing the outcome as “rock steady”.

The company has managed to generate higher margins even as shipments only increased 1% from a year earlier to 3,593 vehicles. The group delivered five hybrid models in the first quarter, representing 49% of total shipments.

Meanwhile, what was once the company’s fastest growing market continues to shrink as shipments to China, Hong Kong and Taiwan fell 25% during the first three months of the year as luxury car brands continue to grapple with slowing demand in China.

But China represents a relatively small market for Ferrari because the carmaker sets a cap of 10 per cent on deliveries to the country.

Vigna said on Tuesday that the company was also on track to unveil its first electric vehicle in October, with sales due to start a year later in 2026.

Tyler Durden
Tue, 05/06/2025 – 15:20

US Transfers, Upgrades Missile Defense System From Israel To Ukraine

US Transfers, Upgrades Missile Defense System From Israel To Ukraine

Via The Libertarian Institute 

The Donald Trump administration is moving forward with a Joe Biden-era plan to move a retired Patriot missile system from Israel to Ukraine. Washington will upgrade the air defense platform before transferring control to Kiev.

The New York Times reported the move on Sunday, citing four current and former US officials who confirmed that Trump planned to go through with sending a Patriot system to Kiev, despite his stated objections to continuing what he calls “Biden’s war” in Ukraine.

Source: US Army Security Assistance Command

The plan to transfer a Patriot battery would also see Germany or Greece send a second system, giving Kiev a total of 10, though one official said two of them are currently not functioning. A Ukrainian official admitted on Friday that his forces lacked adequate air defenses.

According to the NY Times report:

A former White House official said that the Biden administration had secured the agreement with Israel in September, before the election won by Mr. Trump. The Defense Department said in a statement that “it continues to provide equipment to Ukraine from previously authorized” packages, referring to weaponry pulled from existing inventories and new purchases.

…Under U.S. export rules for sensitive defense equipment, the United States must approve any transfers of the American-made Patriot missile systems to Ukraine, even if they were coming via other countries. The systems are scarce, and their deployment is often a shell game of world hot spots, figuring out which global crisis requires them most to defend U.S. troops, bases and allies.

The Patriot system set to be transferred from Israel is an older model that will be upgraded. The US recently deployed a Patriot and multiple THAAD air defense systems to the Middle East to defend Israel.

While Ukrainian President Volodymyr Zelensky has offered to buy more air defense platforms, Kiev is still largely dependent on aid transfers from Washington.

However, last week, a natural resources deal between Washington and Kiev was signed that could give Ukraine access to funds to buy more American weapons.

Trump met Zelensky at the Vatican during Pope Francis’s funeral. The Ukrainian left the meeting feeling he had successfully swayed his American counterpart to take a harder line on Russian President Vladimir Putin. Following the meeting, Trump criticized Putin for targeting Ukrainian cities in a missile attack.

Tyler Durden
Tue, 05/06/2025 – 15:00

Houthis Confirm Ceasefire As Trump Essentially Declares ‘Mission Accomplished’

Houthis Confirm Ceasefire As Trump Essentially Declares ‘Mission Accomplished’

Update(1455ET): The Houthis have confirmed there will be a ceasefire in the Red Sea with the United States. The deal was mediated by Oman, and this looks like a ‘mission accomplished’ moment for Trump where he’s ready to grasp onto a way out of the quagmire the US found itself in. Wisely, he is getting the US out, and Israel appears to be stepping up in terms of its own defense.

Mideast war correspondent Elijah Magnier observes, “The US intelligently stopped the bombing on Yemen due to the lack of objectives, the empty outcome and the high cost versus no gain.” Others have noted this is essentially a declare ‘mission accomplish’ and cut and run moment, amid no better alternatives. 

The full Yemeni statement…

Surreal, close-up images are emerging showing the sheer and utter destruction and size of the Israeli attack on Sanaa International Airport earlier in the day…

It appears Washington is now content to hand things over the Israel. The Pentagon might have better use for its two aircraft carriers off Yemen, which were essentially large sitting ducks. 

* * *

Did the White House make some kind of diplomatic breakthrough with the Houthis of Yemen? There may be behind-the-scenes, unofficial and indirect diplomatic engagement going on, but in the Red Sea there’s a full-scale war scenario. But perhaps no longer.

This week Israel joined the US coalition’s bombardment of Yemen, following a ballistic missile launch on Ben Gurion International Airport, resulting in six injuries. President Trump on Tuesday has indicated the Houthis are ready to talk and no longer want to fight the US. The Houthis within an hour of the headlines denied this, calling the president’s words “inaccurate”. Fight still on?…

HOUTHI SPOKESMAN DENIES GROUP WILL STOP ATTACKING RED SEA SHIPS

Tuesday’s Israeli strike on Sanaa’s international airport. via Reuters

He claimed Houthis have informed his administration that they no longer want to “fight” with the United States, and they are ready to halt attacks on Red Sea shipping lanes. He said this while hosting new Canadian Prime Minister Mark Carney at the White House.

Recent weeks have witnessed an uptick in Houthi drone attacks on US warships in regional waters, including against the USS Truman carrier, which reportedly resulted in a F-18 Hornet fighter jet going overboard.

“The Houthis have announced that they are not…that they don’t want to fight anymore,” Trump said in the fresh statement.

“They just don’t want to fight. And we will honor that, and we will, we will stop the bombings, and they have capitulated, but more importantly, they we will take their word they say they will not be blowing up ships anymore,” he added.

“We just found out about that. So I think that’s very, very positive… I will accept their word, and we are going to stop the bombing of the booties, effective immediately,” he said. He claimed the Iran-backed rebels have essentially admitted defeat:

“We will stop the bombings. They have capitulated… we will take their word that they will not be blowing up ships anymore, and that’s the purpose of what we were doing,” Trump said.

The fact that the US Commander-in-Chief just said US attacks will go into effect “immediately” is quite significant – as the fight has been on for over a year. The Houthis have long vowed to keep up the attacks on Red Sea shipping so long as Israel occupies Gaza, but have given China and Russia a pass.

However, Al Jazeera has written in an update that “The Houthis have not confirmed the pause. The US has been striking the Houthis on near daily basis.”

Tuesday saw huge Israeli airstrikes destroy Yemen’s main international airport in Sanaa. Fireballs and smoke plumes rose high over the entire capital city. The raids appear to have ceased for now. 

The Israelis have had support from US military assets in the region, and the Houthis have condemned what a statement called the “US-Israeli aggression”. The Pentagon has said US forces “have hit over 1,000 targets” in Yemen since mid-March, “killing Houthi fighters and leaders, including senior Houthi missile and UAV officials, and degrading their capabilities”

Trump’s words from the Oval Office on Tuesday:

Meanwhile, Trump also said from the Oval that he has a “very, very big announcement” ahead of his upcoming trip to the Middle East. He’s set to depart Monday for Saudi Arabia, the United Arab Emirates and Qatar.

“We’re going to have a very, very big announcement to make, like as big as it gets,” Trump said. “And I won’t tell you on what … and it’s very positive.”

“It is really, really positive. And that announcement will be made either Thursday or Friday or Monday before we leave,” Trump said. “But it’ll be one of the most important announcements that have been made in many years about a certain subject, very important subject. So you’ll all be here.” 

Tyler Durden
Tue, 05/06/2025 – 14:59

Goldman: Tesla’s China FSD Push Is Mission-Critical

Goldman: Tesla’s China FSD Push Is Mission-Critical

At the start of the week, Goldman analysts Mark Delaney, Dan Duggan, and others told clients that Tesla’s market share in China has remained stable, and the world’s second-largest economy has recently overtaken the U.S. as Tesla’s largest market. The analysts also reviewed Tesla’s rollout of Full Self-Driving (FSD) software in China, noting that the autopilot market is in an “increasingly competitive landscape.” 

Delaney highlighted that China has become Tesla’s largest auto market in recent quarters, overtaking the U.S. auto market in late 2024.  

The analysts said Tesla’s appeal in China is primarily driven by the country’s higher battery electric vehicle (BEV) penetration rates compared to other markets. 

In Western markets, Tesla’s dominance has eroded from the U.S. to Europe. In the U.S., its market share plunged from 80% in 2021 to around 45% in Q1 2025. In Europe, the story is very similar, with share slipping to low double digits. However, Tesla’s market share in China has remained relatively stable, holding around the high single-digit range (even despite a trade war).

High-frequency data from Morning Consult shows that consumer sentiment around Tesla has shifted lower in recent months, yet it has held steadily in positive territory in China. The dismal sentiment in the West has mainly been caused by unhinged liberals, their rogue NGOs, and far-left corporate media outlets waging war against Tesla CEO Elon Musk for his involvement with DOGE. In return, Musk’s involvement with DOGE has hit the brand. 

Given China’s growing importance to Tesla, the analysts emphasized that the world’s largest auto market remains a highly competitive environment for FSD, with several domestic EV makers offering comparable driver-assistance features.

Here’s more color from the analysts about FSD in China:

On 2/25/25, media outlets reported that Tesla had pushed an update to some users who had previously purchased Tesla’s FSD software (which costs ¥64,000 or ~$8,750 USD) with several FSD-like features including automatic lane change, traffic light detection, and turning capabilities. Tesla commented on its 1Q25 earnings call that it was able to launch supervised FSD in China with minimal local specific data for the China market, as the company was able to leverage the more generalized software it had already developed. That said, Tesla’s FSD software has historically worked better in the U.S. per media reports, as Tesla has had more data and time to refine the product domestically. Tesla also spoke to the benefits of local training and parameters on its 1Q25 call. Per reviews (link & link), FSD in China has performed relatively well, especially given limits to Tesla’s data collection in China. However, some reviews cite a lack of understanding of local traffic rules (e.g. Tesla vehicles going into shoulder/bike lanes on turns) and the sporadic use of wrong lanes, which we believe could be due to the more limited data for the China market.

Tesla’s FSD offering is one of several ADAS options for consumers in China, with many local competitors offering this as a standard feature even on mainstream vehicles (Exhibit 6). The level of technology and cost improvement that Tesla can achieve with FSD, both absolute and relative to competitors, will be key for its longer-term economics related to autonomy in our opinion (both globally and in China).

The analysts remain “Neutral” rated on Tesla shares with a 12-month price target of $235. 

Shares are down 40% from the $479 peak established in Decemeber 2024. 

An emerging theme this year for Tesla is that China has become its largest market in terms of deliveries. However, key questions remain about whether Tesla’s FSD offering is competitive enough to outperform driver-assistance systems from local brands. Musk’s anticipated pivot away from DOGE may also help repair Tesla’s negative brand sentiment in Western markets in the second half.

Tyler Durden
Tue, 05/06/2025 – 14:40

Paul Tudor Jones Warns About New Market Lows, Skynet-Style AI Threat To Humanity

Paul Tudor Jones Warns About New Market Lows, Skynet-Style AI Threat To Humanity

Billionaire hedge-fund manager Paul Tudor Jones issued a stark warning during an appearance on CNBC’s Squawk Box Tuesday morning, cautioning investors about the potential economic fallout from 145% tariffs on Chinese goods entering the US and the risk of new market lows. Beyond trade war and market concerns, Jones expressed deep unease about the developments surrounding artificial intelligence, which he described as an imminent threat to humanity. 

“For me, it’s pretty clear. You have Trump who’s locked in on tariffs. You have the Fed who’s locked in on not cutting rates. That’s not good for the stock market,” Jones said. 

PTJ, founder and CIO of Tudor Investment, pointed out, “We’ll probably go down to new lows, even when Trump dials back China to 50%.”

In a note to clients earlier, Goldman chief economist Jan Hatzius wrote, “The mood music with China has improved, and we expect the US tariff rate on China to drop from around 160% to around 60% relatively soon. (China is likely to reduce tariffs on the US by a similar amount.)”

Goldman offered some good news last week: peak trade war. Plus, the folks who attended the Milken Institute Global Conference in Beverly Hills on Monday are “warming up” to the tariff environment. 

PTJ said that even if Trump rolls back some tariffs on China, “it’ll still be the largest tax increase since the ’60s,” adding, “So you can take 2% to 3% off growth.” 

Last week’s GDP report showed ominous storm clouds gathering over the US economy: Q1 GDP printed -.3%, worse than the -.2% expected and the first negative print since 1Q22 when the economy was in a recession but was subsequently revised out of it.

On the subject of the Federal Reserve, PTJ said: 

“Unless they got really dovish and really, really cut, you’re probably going to go to new lows. And then when we’re new lows, the hard day will start to follow, and it’ll probably create the Fed to move, create Trump to move. And then we’ll get some kind of reality.”

As of Tuesday morning, interest-rate swaps are pricing in three 25-basis-point cuts by year-end, with the first expected in July.

As part of his apocalyptic warning—echoing rhetoric from Elon Musk and BCA Research in recent years—PTJ cautioned: “There’s a 10% chance AI will kill 50% of humanity in the next 20 years.”

Did PTJ watch the science fiction classic “The Terminator” (1984) before heading to CNBC’s studio?

And apparently he listens to Joe Rogan… 

Remember BCA Research’s warning:

And Elon Musk’s. 

Notice how PTJ wasn’t concerned about nuclear war—instead, his focus was on tariffs and AI.

Tyler Durden
Tue, 05/06/2025 – 13:00

35 House Democrats Join Republicans To Kill Biden’s Preposterous EV Targets

35 House Democrats Join Republicans To Kill Biden’s Preposterous EV Targets

Authored by Mike Shedlock via MishTalk.com,

California’s grip on US EV policy is nearly over!

Trump Smartly Employs the Congressional Review Act

The Congressional Review Act allows Congress to nullify rules taken in the final 60 days of a prior administration.

Trump is using the CRA to kill California’s ability to set EV standards for the Nation.

Many Democrats are howling, but 35 House Democrats support Trump.

What Is the CRA?

The Congressional Review Act (CRA) is a tool that Congress may use to pass legislation overturning a rule issued by a federal agency. When Congress passes a law, it often grants rulemaking authority to federal agencies to implement provisions of the law. That delegation of rulemaking authority, and the rules issued by federal agencies under this authority, is a crucial component of the policymaking process.

The CRA was enacted in 1996 as part of the Small Business Regulatory Enforcement Fairness Act. Under the CRA, before a rule can take effect, an agency must submit the rule to Congress and the Government Accountability Office (GAO).

Upon receipt of the rule by Congress, Members of Congress have a specified time period during which to submit and take action on a joint resolution of disapproval overturning the rule. If both houses pass the joint resolution, it is sent to the President for signature or veto. If the President were to veto the joint resolution, Congress could vote to override the veto. Enactment of the joint resolution would take the rule out of effect or prevent it from going into effect, and the agency would be prohibited from issuing a rule that is “substantially the same” without further authorization from Congress.

The best part of the CRA is that it only requires a simple majority in Congress and is thus filibuster-proof in the Senate.

The Politics of EVs Have Changed

I am pleased to report The Politics of EVs Have Changed

On Thursday the House voted in strong bipartisan fashion to overturn the EV mandate the Biden Administration let California impose on the rest of America.

The vote was 246-164 for a Congressional Review Act (CRA) resolution to repeal the waiver that the Environmental Protection Agency granted California for its EV mandate. The waiver provision was written to let California address smog. But Sacramento Democrats lobbied the Biden EPA to let it apply to carbon emissions.

The mandate is ludicrously impossible to meet. It says zero-emissions vehicles would have to account for 43% of an auto maker’s sales by 2027 in California and the dozen other states that have signed up for its rules. It rises to 68% by 2030.

The House vote is especially striking because of the 35 Democratic ayes. That included three of six Democrats from Michigan, three of five from Ohio, four of 12 from Texas, and even two from the High Climate Church of California (Luis Correa and George Whitesides). Let’s hope they’re not excommunicated by Pope Gavin (Newsom) I.

Democrats Howl Republicans Flouting the Rules

The American Prospect comments How Republicans Are Flouting the Rules of the Congressional Review Act

The CRA was passed in 1996 to empower congressional oversight of federal rulemaking, and is currently being used by Republicans to overturn Biden-era rules on the environment, banking, and more. Once a federal regulation is overturned by a CRA resolution of disapproval and receives the president’s signature, it is gone for good: The rule becomes null and void, and the government is prohibited from publishing any “substantially similar” rule in the future. What’s more, the CRA bars judicial review, giving Congress the final word in a rule’s overturning.

On February 14, Environmental Protection Agency (EPA) administrator Lee Zeldin asked Congress to review waivers issued by Biden’s EPA, suggesting to congressional Republicans that they should be the subject of a CRA resolution of disapproval. The waivers allow California to set its own pollution standards for certain vehicles under the Clean Air Act (CAA) without being preempted by the EPA’s national standards.

“Republicans may regret setting this precedent for expanding the CRA,” he added.

At the end of the day, despite that leverage that Democrats could take advantage of—if they have enough courage to do so—moving forward with this resolution of disapproval would be a dangerous overreach. If Republicans choose not to abide by the CRA’s definition of a rule, there’s nothing stopping them from also sidestepping the law’s 60-day time limit or its one-rule-at-a-time provision.

That would give Congress even more power than the CRA already allows, putting all types of federal rulemaking at risk.

Economic and EV Madness

It is preposterous that California can set EPA and EV standards for the nation. But here we are.

This started with the 1967 Clean Air Act when Congress made an exception for California due to its history of air pollution problems.

Since then, the EPA made rules that took on a life of their own. It has since morphed into zero-emissions standards such that vehicles would have to account for 43% of an auto maker’s sales by 2027 in California.

Ten states latched on to this madness.

Republicans in Congress Use Obscure Law to Roll Back Biden-Era Regulations

Instead of praising the end of economic madness, the New York Times moans Republicans in Congress Use Obscure Law to Roll Back Biden-Era Regulations

In recent weeks, the G.O.P. has pushed through a flurry of legislation to cancel regulations on matters large and small, from oversight of firms that emit toxic pollutants to energy efficiency requirements for walk-in freezers and water heaters.

To do so, they are employing a little-known 1996 law, the Congressional Review Act, that allows lawmakers to reverse recently adopted federal regulations with a simple majority vote in both chambers. It is a strategy they used in 2017 during Mr. Trump’s first term and are leaning on again as they work to find ways to steer around Democratic opposition and make the most of their governing trifecta of the House, the Senate and the White House.

But this time, Republicans are testing the limits of the law in a way that could vastly expand its use and undermine the filibuster, the Senate rule that effectively requires 60 votes to move forward with any major legislation.

Because resolutions of disapproval under the Congressional Review Act need only a majority vote, they are some of the only legislation that can avoid a filibuster in the Senate. This allows them to circumvent the partisan gridlock that stands in the way of most significant bills. [Sounds Great to Me]

Now Republicans are trying to go much further with the law, including using it to effectively attack state regulations blessed by the federal government. The House this week passed three disapproval resolutions that would eliminate California’s strict air pollution standards for trucks and cars by rejecting waivers from the Environmental Protection Agency that allowed them to take effect.

The move would also permanently prevent federal regulators from writing a similar rule in the future. Both the Government Accountability Office and the Senate parliamentarian, who is in charge of enforcing the chamber’s rules, have said that the E.P.A. waivers do not constitute federal regulations and thus are not subject to the Congressional Review Act.

The pressure now falls on Senator John Thune, Republican of South Dakota and the majority leader, to decide whether he will proceed with the measures anyway, sidestepping the parliamentarian in a move that would undermine the filibuster.

Democrats argue that Republicans’ efforts to kill the E.P.A. waivers amount to illegal overreach on states’ rights. They say the drive could inadvertently subject a plethora of executive actions, such as leasing rights for oil and gas fields as well as waivers for state Medicaid programs, to congressional review.

Either way, experts warned that Republicans may come to regret reading the statute so broadly. Michael Thorning, the director of the Structural Democracy Project at the Bipartisan Policy Center, a nonprofit think tank, said doing so could hand Democrats a powerful tool to undo regulations that they dislike when they one day return to power.

When President Joseph R. Biden Jr. entered office in 2021, congressional Democrats took a cue from Republicans and reinstated Obama-era caps on methane emissions that the Trump administration spent years working to overturn through executive action.

Hoot of the Month

Democrats spend 4 years moaning about the need to kill the filibuster in order to pack the courts with Democrats, change the number of Supreme Court Justices, and pass God only knows what environmental madness.

These hypocrites now oppose using the CRA for what it was intended for, ending inane regulations.

Allowing California to set preposterous environmental stands for the nation, enforced by EPA rules was among the worst.

And just like that, Democrats suddenly want the filibuster to prevent changing inane rules and regulations.

Hypocrites on Both Sides

On March 14, 2025, I commented Hoot of the Day: House Republicans Suddenly Like Clean Energy Tax Breaks

21 House Republicans now like Biden’s Inflation Reduction Act incentives.

Pack of Republican Now Support

  • No Medicaid rollbacks
  • More food assistance
  • Expansion of Inflation Reduction Act provisions to capture methane
  • Reinstatement of State and Local Tax deduction (primary benefit big blue states)

All the Republicans want more military spending, and Trump Promises $1 trillion in Defense Spending for Next Year

And people think Trump will cut the budget.

Tyler Durden
Tue, 05/06/2025 – 12:40

Veteran NIH Infectious Disease Researcher Calls For End Of Dangerous Virus Studies

Veteran NIH Infectious Disease Researcher Calls For End Of Dangerous Virus Studies

Via The DisInformation Chronicle,

Today’s guest essay is by a infectious disease researcher at the National institutes of Health who wishes to remain anonymous to guard against retribution.

As a decades-long NIH insider, I wasn’t surprised to see Dr. Tony Fauci go toe-to-toe with President Trump in his first term. After all, this is a man who built a $4 billion taxpayer-funded empire—the National Institute of Allergy and Infectious Diseases (NIAID)—and transformed it into a medieval Italian Signoria, where his every word was law, his every whim obeyed. When I entered his office, I couldn’t help but notice a portrait of The Godfather hung above his desk—Marlon Brando as Don Vito Corleone, not Al Pacino as the young, upstart Michael—a fitting tribute to his persona and leadership style.

Upon entering NIH meetings, I sometimes caught a favored capo slouching down in his chair after dutifully raising Fauci’s own, so that, feet dangling, the diminutive Don would appear the tallest man in the room. From such commanding heights, the Boss often humiliated staff members, both women and men, in expletive-laden tirades. To avoid this wrath, his minions worked feverishly to anticipate his every desire and satisfy a relentless ambition to expand the Fauci’s scientific dominion.

I admired Fauci in his earlier career because I thought he was a strong leader with a vision for global research. But I can’t say that anymore.

Several incidents caused me to change my view beginning in March 2020 when a group of renowned virologists published a paper in Nature Medicine that falsely concluded a lab accident could not have started the COVID pandemic. A year later, I watched in disbelief as Dr. Fauci testified before Congress where he strongly denied allegations about dangerous virus research he was funding at the Wuhan Institute of Virology. I realized that the Fauci-led NIAID had participated in a classic Washington ploy: satisfy your critics by pretending to regulate activity that can harm the public, while actually letting your friends do whatever they want. In this case, I’m talking about gain-of-function virus studies, research that should end tomorrow to protect us from future man-made pandemic disasters.

Pandemic Subterfuge

Like most everyone in the federal government, in the early months of the pandemic I was working from home when Nature Medicine published a paper called “The proximal origin of SARS-CoV-2.” Written by prestigious virologists Scripps researcher Kristian Andersen and Tulane University’s Robert Garry, this paper concluded, “We do not believe that any type of laboratory-based scenario is plausible.” The paper analyzed the genetic sequence of the COVID virus and concluded that SARS-CoV-2 was a naturally occurring virus, as no clear signs of “gain-of-function” were detected.

Gain-of-function is a process where virologists manipulate a virus’s genetic sequence to make it more transmissible, lethal, or able to overcome countermeasures. After making a virus more dangerous through gain-of-function, researchers then try to figure out how to defeat it. However, the “Proximal Origin” letter in Nature Medicine overlooked a common gain of function method.

Virologists often use a technique called “serial passaging,” where a virus is repeatedly introduced to laboratory animals or different cell types, such as human cell lines. Repetitive passaging allows the virus to genetically adapt, enabling it to grow in the new animal or cells. And such passaging does not require direct genetic manipulation.

The authors of the “Proximal Origin” paper completely ignored the possibility of serial passaging. And because they didn’t discuss this very common laboratory practice, they did not “disprove” a laboratory origin for the virus. I have no idea how ignoring something so obvious could make it pass peer review and get published in a prestigious journal like Nature Medicine.

I remember sitting in my living room, carefully reading the paper line by line, and shouting over to my partner in the next room, “What the fuck is going on?!

Despite such a gaping hole in the analysis, the paper was taken as gospel by basically every reporter covering itNew York Times, CNN, Science Magazine, NBC, Science News, Nature Magazine, Washington Post, etc…—as if it ended all doubt that the COVID virus could have come from a lab.

I discussed this quietly with a few close colleagues I consider friends, but I’m embarrassed to admit that I was afraid to speak out publicly. At the time, people were being called “conspiracy theorists” for even asking if the virus could have had a lab origin. There was a real fear of saying what you thought—shame, humiliation—and I was worried about getting fired. I believed the entire virology and the NIH-funded scientific communities would have banded together to discredit me if I said anything, and my career would have been over. Dr. Fauci was the most powerful man in the scientific community at that time and his word was undisputed.

Besides, the toxic political climate at the NIH did not allow much for dissenting opinions. All communications by federal employees are vetted and go through a multi-layered review process, and criticism of the official narrative would never have been allowed. As any member of the NIH knew, you don’t ever take sides against the family.

The authors of the “Proximal Origin” paper completely ignored the possibility of serial passaging.

During this same time period, I also became aware that something weird was happening inside the NIH. In April 2020, Trump cut off a grant to Peter Daszak who ran a nonprofit called EcoHealth Alliance. Daszak was partnering with researchers at the Wuhan Institute of Virology to collect and characterize bat coronaviruses in China. Trump’s executive action was an effort to prevent another possible COVID-19-like pandemic, even though Politico called these concerns a “conspiracy theory.” But rather than reassess the risks of this research, as the President wanted, the Fauci-led NIAID doubled down on high-risk viral research, funding new programs called Centers for Emerging Infectious Diseases (CREID). These research programs focused entirely on global collection and surveillance of zoonotic viruses from nature.

Instead of pausing to investigate whether a lab leak had occurred, Fauci awarded Daszak a new multi-million-dollar CREID grant dedicated to hunting for novel viruses in bats—not just in Chinese caves, but across Southeast Asia and parts of Africa. From 2020 to the present, Daszak and EcoHealth Alliance received $4,474,707 for his CREID grant plus another $3,353,628 for similar virus hunting grants.

At the same time, NIAID also awarded the authors of the Proximal Origin paper—Scripp’s Andersen and Tulane’s Garry—large CREID grants which have cost American taxpayers $11,322,650. By handing out awards to political allies, Don Fauci maintained a web of allegiances.

But these grants were a slap in the face to President Trump and completely dismissed the American public whose family members were dying from a pandemic which could have started from NIH-funded virus research. The timeline of these awards is also interesting. Andersen’s CREID grant had been reviewed in November 2019 and presented to the official NIAID Advisory Council in January 2020. Fauci would have known the names of researchers getting such a massive grant, and Andersen and Garry would have been very eager to please Fauci.

By publishing the “Proximal Origin” paper, both Andersen and Garry gave Fauci a handy talking point to misdirect public attention away from a lab accident in a Wuhan lab that he was funding. Dr. Collins promoted Andersen’s “Proximal Origin” paper in his March 2020 NIH Director’s Blog, and Fauci seized upon the paper during a televised White House briefing.

Fauci cast aside the possibility of a laboratory-based origin by citing the “Proximal Origin” paper in an April 17, 2020 White House Coronavirus Task Force press briefing. When asked whether the virus was possibly manmade in a lab in China, President Trump stepped aside from the podium and let Fauci answer:

There was a study recently that we can make available to you, where a group of highly qualified evolutionary virologists look at the sequences there and the sequences in bats as they evolve and the mutations that it took to get to the point where it is now is totally consistent with a jump of species from an animal to a human. So, the paper will be available. I don’t have the authors right now, but we can make that available to you.

Fauci’s remarks, as he stood next to the President, really gave the paper added media and public value. At the time, I thought it was weird that Fauci would promote researchers who ignored the obvious possibility of serial passaging, but we later learned that Fauci was intimately involved in the “Proximal Origin” paper.

Emails showed that Andersen sent Fauci several updates as the paper was being written, and even invited him to make suggestions. In a sworn congressional deposition, Fauci later admitted to receiving 5 to 10 drafts of the paper but claimed he didn’t really understand it. But if he really didn’t understand the paper, then why did he promote it to reporters at a White House briefing?

For such a politically savvy man to manipulate the scientific process directly under the nose of the President was rather unexpected. But it got worse. He also thumbed his nose at Congress.

Fauci was the darling of Republicans and Democrats, so he shocked me during a May 2021 Senate hearing when he pointed his finger at physician Senator Rand Paul and called him a liar for noting that NIAID funded dangerous gain-of-function virus research in Wuhan, China.

“Senator Paul, with all due respect, you are entirely and completely incorrect,” Fauci said while under oath. “The NIH has not ever and does not now fund gain-of-function research in the Wuhan Institute of Virology.”

In retrospect, none of this behavior should have surprised me. Fauci is highly territorial and has never allowed anyone—even the President of the United States—to mess with his fiefdom.

Pause on Fauci Science

President Obama put a pause on funding for gain-of-function research in 2014 that lasted until 2017. The gain-of-function moratorium suspended federal funding for research that enhanced the pathogenicity, transmissibility, or host range of dangerous pathogens—the exact type of research Chinese scientists had been conducting at the Wuhan Institute of Virology. This moratorium covered all types of pathogens such as influenza, MERS, and SARS viruses—the type which gave us the COVID pandemic. President Obama imposed the moratorium in 2014 after growing concerns from the scientific community and public advocacy groups about the risks associated with research and the potential for accidental release or misuse of enhanced pathogens.

The pause was triggered by a group of virologists at the Erasmus Medical Center in the Netherlands who used a gain-of-function techniques including serial passaging to adapt influenza to ferrets and made the virus airborne. The pause was lifted in 2017 after the government created a new framework to assess the dangers of gain-function research called P3CO Framework (Potential Pandemic Pathogen Care and Oversight).

But in the end, nothing really changed.

The P3CO Framework was supposed to enforce stricter oversight for high-risk virus research. I now think it was a distraction. Once P3CO was put in place, Fauci’s NIAID simply resumed funding scientists to develop bioengineered viruses. For instance, researchers used a synthetic gene library to generate all possible H5 bird flu variants capable of escaping detection by the human immune system.

I feel certain today that the moratorium was a political show that lasted just long enough for the critics to forget about the dangers of high-risk virus research that created the airborne influenza virus. NIH spent years creating the P3CO safety review, but I now realize there is a gaping hole in the very guidelines designed to check the power of funders like Fauci. A gain-of-function study was only sent for P3CO review if Fauci or his subordinates felt it needed review.

This is an obvious conflict of interest, like allowing a batter to call his own balls and strikes, while sometimes letting an umpire opine, but only if the batter permits it. Although I have no direct evidence, I am suspicious that Fauci purposely avoided sending gain-of-function projects for review to the P3CO committee.

The details of this process are very intricate and hard for outsiders to follow, but Senator Rand Paul made some of this public during an interview a year back.

We have evidence, yes, that they were dishonest, that Anthony Fauci lied in hearings to me, which is a felony, punishable up to five years. We have emails that show him saying that he knew it was gain-of-function, that the virus looked manipulated, and he was worried that this came from Wuhan lab [on] February 1 of 2020. Then he spent the last three years saying nothing to see here. We also know there was a safety committee that should have reviewed this and we know that Anthony Fauci went around the safety committee – the safety committee set up in place to make sure this didn’t happen.

After President Biden granted Fauci a preemptive pardon on his last day in office, Senator Paul sent subpoenas to get answers about what Fauci knew and when he knew it. “In the wake of Anthony Fauci’s preemptive pardon, there are still questions to be answered,” he posted on X. “Who at NIH directed funds to the Wuhan Institute of Virology, and why was the proposal not scrutinized by the P3CO safety committee?”

End Dangerous Virus Research

Throughout the COVID pandemic, concerned scientists and the general public began piecing together a troubling narrative. Emails found that the Wuhan Institute of Virology had been funded by NIAID through a subcontract to Peter Daszak’s EcoHealth Alliance. The work was ostensibly classified as viral surveillance, which allowed it to bypass the new P3CO guidelines created to rein in dangerous virus research.

However, a closer look revealed that scientists at the Wuhan Institute of Virology led by Dr. Zhengli Shi had been trained by Dr. Ralph Baric at the University of North Carolina. Baric is widely regarded as one of the world’s leading bioengineers specializing in coronaviruses, and the NIAID had been funding him for years through a combination of grants and service contracts for pandemic preparedness. His groundbreaking work on manipulating coronaviruses (including constructing Frankenviruses) was pivotal, and that expertise had made its way to Wuhan—intentionally or otherwise.

This is an obvious conflict of interest, like allowing a batter to call his own balls and strikes, while sometimes letting an umpire opine, but only if the batter permits it.

Baric obviously has concerns about what went on in Wuhan. When a group of virologists wrote a February 2020 essay for Emerging Microbes & Infections titled, “No credible evidence supporting claims of the laboratory engineering of SARS-CoV-2” Baric made some secret changes to the text.

“Don’t want to be cited in as having commented prior to submission,” Baric emailed the essay authors, before sending in his text changes.

NIAID’s international cooperation efforts were rooted in the belief that building scientific capacity abroad was a global good—an ideal that often holds true. But in this case, cooperation with foreign researchers came with unintended consequences. The transfer of technical expertise and bioengineering know-how across borders, paired with inadequate oversight and misclassification of research objectives, may have created the perfect storm. While the intent may have been altruistic, the outcome was anything but.

The NIH has repeatedly demonstrated a dangerous inability to safeguard public safety. The P3CO Framework was intended to enforce stricter oversight, but proved to be a hollow safeguard, allowing NIAID to continue funding dangerous research with a fig leaf for compliance. Worse, EcoHealth Alliance’s funding of the Wuhan Institute of Virology was classified as “viral surveillance,” an administrative sleight-of-hand that enabled high-risk experiments to continue with impunity. By allowing gain-of-function research to proceed unchecked, NIH abandoned its responsibility to ensure that taxpayer-funded science did not jeopardize public health.

But NIH’s errors are not merely a matter of oversight failure—they are the result of scientific arrogance compounded by an ingrained, symbiotic relationship between federal science officers and the research academics they fund. This relationship is mutually beneficial as scientists depend on NIH funding to build their careers, while NIH officers rely on these same scientists to generate the groundbreaking studies that justify new initiatives and expand NIH’s influence.

Academic scientists and NIH bureaucrats don’t just collaborate professionally—they often emerge from the same university laboratories, attend the same conferences, and publish together in the same journals. Instead of government oversight of academic research, we have a system that rewards allegiance and mutual advancement. This cozy relationship is cemented by lavish taxpayer-funded travel to international conferences, where federal officers and the university scientists they support fly around the world, stay together at luxury hotels, and forge alliances that prioritize career advancement over public safety.

This conflict of interest is baked into the system, making genuine oversight of dangerous research nearly impossible. This is not just my professional experience, emails show this is the case. Despite public concerns about the nature of EcoHealth Alliance’s research and multiple media reports about the veracity of Peter Daszak’s public statements, the NIH program officer who oversaw EcoHealth Alliance’s grants began working directly with Daszak on his 2023 grant renewal.

Even more alarming: one of Fauci’s trusted advisors, David Morens, was caught in emails also coordinating with several academics and Daszak to get EcoHealth Alliance’ grant renewed. When Fauci testified afterwards during a congressional hearing, he claimed to barely know Morens, which is patently untrue.

NIH’s pattern of circumventing research safeguards, misrepresenting funding, and the entrenched culture of mutual dependency between program officers and academics has created a system where oversight becomes performative and regulatory frameworks like P3CO become mere window dressing. Dr. Fauci’s public denials of NIH involvement in gain-of-function research at the Wuhan Institute of Virology, despite documented evidence to the contrary, highlights a culture of obfuscation and regulatory evasion. NIH has forfeited public trust and can no longer be relied upon to serve as the gatekeeper for high-risk pathogen research.

Instead of government oversight of academic research, we have a system that rewards allegiance and mutual advancement.

The “conspiracy theory” label deployed by NIH leadership to knock down the possibility of a lab accident troubles me to this day, especially since it seems to have been a misinformation campaign. In my entire scientific career, I have never seen an alternative hypothesis shot down by labeling it a “conspiracy theory.” This was something completely foreign to me, a shameful example of McCarthyism in the scientific community, and the very antithesis of science.

To prevent future disasters, gain-of-function virus research should end at the NIH and should not be funded by any federal agency. Moreover, the government needs to assume legal authority to prevent gain-of-function virus research at private companies or institutions as well. High-risk research that involves manipulating pathogens capable of causing global pandemics should not be treated as routine biomedical research—it should be viewed as having the same risk as bioweapons development.

Despite its defenders, gain-of-function research has not demonstrably contributed to the prevention of pandemics. Let’s not forget, the COVID pandemic started in Wuhan, China, a city that hosts a research lab that is supposed to stop pandemics. The time has come to abandon the false promise that we can outwit nature by engineering lab viruses. We need to shift research to rapid identification of emerging pathogens when they cause symptoms in humans and domesticated animals, and funding should be redirected toward safer, more responsible methodologies such as structural and computational modeling, and laboratory techniques like deep mutational scanning, and loss-of-function studies.

These approaches can help us understand how viruses jump from animals to humans without making these same pathogens more dangerous. For too many years, scientists have sold the public on a lie. It is time to realign our research priorities with the principle that science should serve public safety and protect lives—not gamble with them.

Tyler Durden
Tue, 05/06/2025 – 12:00

Major Israeli Attack Destroys Yemen’s Sanaa International Airport

Major Israeli Attack Destroys Yemen’s Sanaa International Airport

Israel’s air force has continued a second day of large-scale attacks on Yemen, targeting the leadership and infrastructure of the Ansarallah movement, or Houthis, after the Sunday Houthi ballistic missile strike on Israel’s Ben Gurion international airport in Tel Aviv.

Huge plumes of black smoke have been observed rising above the Houthi-controlled airport area in the capital of Sana’a. Prior Israeli strikes, with US backing, focused on the vital port of Hodeidah.

Within a couple hours before the Tuesday Israeli strikes on Sana’a commencing, the IDF military issued an evacuation warning for Yemen’s Sana’a International Airport, stated that being near it “exposes you to danger.”

This warning was given because Israel is fully aware that this is a civilian aviation hub. However, Israeli officials have accused the Houthis of using it as a military base and staging ground.

“We call upon you to evacuate the airport area — Sana’a International Airport — immediately and warn everyone in your vicinity of the need to evacuate this area immediately,” the IDF’s Arabic spokesman warned earlier Tuesday. “Failure to evacuate and move away from the place exposes you to danger.”

Several power stations in the area of the Yemeni capital have also been hit, initial reports say. “Among the targets were the Dhahban and Haiz power stations, a cement plant in Amran, and civilian aircraft and terminals at the airport,” according to regional media.

The IDF has previously alleged that the Houthis use cement from the targeted factory to erect tunnels and military infrastructure, amid international criticism accusing Israel of destroying vital civilian infrastructure.

The Israeli army has issued a full statement which reads as follows:

For the second time in less than 24 hours, the Israeli Air Force struck Houthi terror targets in Yemen. The IAF recently destroyed infrastructure at Sana’a’s main airport, rendering it completely inoperable, in response to a Houthi missile launch at Ben Gurion Airport. Like the Hodeidah port hit earlier, the airport was used by the Houthis to transfer weapons and fighters, and regularly served the group’s terror activities.

The IDF also struck key power stations around Sana’a, which the Houthis exploited as a major energy supply source for their operations—another example of using civilian infrastructure for terror. Additionally, the Al-Amran cement factory north of Sana’a, crucial for tunnel and military infrastructure construction, was hit—impacting the Houthi economy and military buildup.

But if the Houthis have demonstrated anything, it is their resolve and refusal to back down even after months of American-led major attacks. Likely they will ramp up efforts to target Israeli and American assets.

Massive destruction and smoke clouds over Yemen’s main international airport and flight hub…

Given this new targeting of Yemen’s international airport, this could invite Houthi efforts to double down on targeting Ben Gurion in Tel Aviv. Is an airport strike tit-for-tat on the horizon? Certainly this is bad news for civilian aviation and safety in the whole region.

The United States has been supporting Israel’s ‘retaliatory’ action, and Houthi leadership has confirmed that the Monday strikes on Hodeidah were the result of “US-Israeli aggression”.

Sanaa Airport has already suffered damage from coalition attacks, including this from December 27, 2024. via Reuters

Currently the US has two aircraft carriers and accompanying warships in the Red Sea region, and they might be further targeted with drone and rocket attacks.

The US Navy/CENTCOM has already for months been fending off sporadic fire from Yemen, but things seem to be escalating at this point.

The Trump administration has recently been accused of hiding US casualties in this now long-running Red Sea naval battle, which is turning into yet another Washington quagmire in the Middle East.

Tyler Durden
Tue, 05/06/2025 – 11:40