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Marco Rubio Declares War On The Global Censors

Marco Rubio Declares War On The Global Censors

Authored by Jonathan Turley,

Winston Churchill once warned that “appeasement is feeding the crocodile, hoping he will eat you last.”

When it comes to the crocodile of censorship, history is strewn with defenders who later became digestives.

Censorship produces an insatiable appetite for greater and greater speech limits, and today’s censorship supporters often become tomorrow’s censored subjects.

This week, Secretary of State Marco Rubio stopped feeding the crocodile.

On May 28, 2025, Rubio shocked many of our allies by issuing a new visa restriction policy that bars foreign nationals deemed “responsible for censorship of protected expression” in the U.S.

The new policy follows a major address by Vice President J.D. Vance in Munich challenging our European allies to end their systematic attacks on free speech.

Vance declared, “If you are running in fear of your own voters, there is nothing America can do for you. Nor, for that matter, is there anything that you can do for the American people that elected me and elected President Trump.”

At the time, I called the speech “Churchillian” in drawing a bright line for the free world. Rubio’s action is no less impressive and even more impactful.

Europe has faced no consequences for its aggressive efforts at transnational censorship. Indeed, this should not be a fight for the administration alone. Congress should explore reciprocal penalties for foreign governments targeting American companies or citizens for engaging in protected speech.

After Vance spoke in Munich, I spoke in Berlin at the World Forum, where European leaders gathered in one of the most strikingly anti-free speech conferences I have attended. This year’s forum embraced the slogan “A New World Order with European Values.”

That “new world order” is based on an aggressive anti-free speech platform that has been enforced for years by the European Union. At the heart of this effort is the Digital Services Act, a draconian law that allows for sweeping censorship and speech prosecutions. Most importantly, it has been used by the EU to threaten American corporations for their failure to censor Americans and others on social media sites.

After the World Forum, I returned home to warn that this is now an existential war over a right that defines us as a people —the very “Indispensable Right” identified by Justice Louis Brandeis, which is essential for every other right in the Constitution.

The irony was crushing. I wrote about how this nation has fought to protect our rights in world wars, yet many in Congress simply shrug or even support the effort as other countries move to make Americans censor other Americans.

What was most unnerving about Berlin was how Americans have encouraged Europeans to target their fellow citizens. At the forum was Hillary Clinton who, after Elon Musk purchased Twitter on a pledge to dismantle its massive censorship system, called upon the EU to use the Digital Services Act to force him to resume censorship.

Other Americans have appeared before the EU to call upon it to oppose the U.S. Nina Jankowicz, the former head of President Joe Biden’s infamous Disinformation Governance Board, has recently returned to the EU to rally other nations to oppose what she described as “the autocracy, the United States of America.”

She warned that the Digital Services Act was under attack, and that the EU had to fight and beat the U.S.: “Do not capitulate. Hold the line.”

Former European Commissioner for Internal Markets and Services Thierry Breton even threatened Musk for interviewing Trump before our last presidential election. He told Musk that he was being “monitored” in conducting any interview with now-President Trump.

The EU is doubling down on these efforts, including threatening Musk with prosecution and massive confiscatory fines if he does not resume censoring users of X. The penalties are expected to exceed $1 billion.

Other countries are following suit. Brazilian Supreme Court Judge Alexandre de Moraes shut down X in his entire country over Musk’s refusal to remove political posts. These countries could remotely control speech within the U.S., forcing companies like X to meet the lowest common denominator set by the EU and anti-free speech groups.

There are free speech concerns even in such measures designed to protect free speech. This policy should be confined to government officials, particularly EU officials, who are actively seeking to export European censorship systems worldwide. It should not extend to academics or individuals who are part of the growing anti-free speech movement. Free speech itself can counter those voices. These are the same voices that we have heard throughout history, often using the very same terms and claims to silence others.

However, Rubio showed Europe that the U.S. would not simply stand by as European censors determined what Americans could say, read, or watch. As the EU threatens companies like X with billion-dollar fines, it is time for the U.S. to treat this as an attack on our citizens from abroad.

Franklin Delano Roosevelt put it simply during World War II: “No man can tame a tiger into a kitten by stroking it.”

It is time to get serious about the European threat to free speech. And Rubio is doing just that — finally imposing real consequences for censorship. We are not going to defeat censors by yelling at them. Speech alone clearly does not impress them.

Jonathan Turley is the Shapiro Professor of Public Interest Law at George Washington University and the author of “The Indispensable Right: Free Speech in an Age of Rage.”

Tyler Durden
Mon, 06/02/2025 – 09:55

Key Events This Week: Payrolls, ISMs And Non-Stop Fed Talk Including Powell

Key Events This Week: Payrolls, ISMs And Non-Stop Fed Talk Including Powell

Following a relatively quiet, holiday-shortened week, newsflow starts to pick up again. In terms of data this week, we have US payrolls on Friday as the main event but the US manufacturing ISM today and the services equivalent on Wednesday will also be important. We will also get various global PMIs spread across this week. You can see the main ones in the day-by-day calendar at the end as usual.

The ECB rate decision on Thursday (25bps cut widely expected), and what the tone suggests going forward, will also be a big focus. The BoC meet on Wednesday (a 25bps cut also expected). May CPI prints are due in the Eurozone, Switzerland (tomorrow) and Sweden (Thursday). Broadcom, which sits just outside the Mag-7, sees their earnings on Thursday and this might give us some latest thoughts on current AI trends.

Given its payrolls week we also have JOLTS (Tuesday) and ADP (Wednesday), with jobless claims (Thursday) of added interest given we saw a small but notable increase last week. For payrolls economists expect the headline (+128k forecast vs. +177k previously) and private (+115k vs. +167k) gains to slow relative to their trailing three-month averages of 155k and 148k, respectively, with the unemployment rate staying at 4.2%. For the rest of the week ahead see the diary at the end.

DB’s economists also flag that the Senate will return to Washington DC this week to begin marking up the “One Big Beautiful Bill Act”. They think it will be interesting to see if the GOP Senators are as eager to make deep cuts to clean energy tax credits and Medicaid as their House counterparts. At the same time, the latest legal developments on the trade front pose risks to tariff revenues. 

Courtesy of DB, here is a day-by-day calendar of events

Monday June 2

  • Data : US May ISM manufacturing index, April construction spending, UK April net consumer credit, M4, Japan Q1 MoF corporate survey, Italy May manufacturing PMI, new car registrations, budget balance, Canada May manufacturing PMI, Switzerland Q1 GDP
  • Central banks : Fed’s Powell, Waller, Logan and Goolsbee speak, BoE’s Mann speaks

Tuesday June 3

  • Data : US April factory orders, JOLTS report, May total vehicle sales, China May Caixin manufacturing PMI, Japan May monetary base, France April budget balance, Italy April unemployment rate, Eurozone May CPI, April unemployment rate, Switzerland May CPI
  • Central banks : Fed’s Goolsbee, Cook and Logan speak, BoJ’s Ueda speaks
  • Earnings : Crowdstrike, HPE, Dollar General, NIO

Wednesday June 4

  • Data : US May ADP report, ISM services, UK May official reserves changes, Italy May services PMI, Canada Q1 labor productivity
  • Central banks : Fed’s Bostic and Cook speak, Beige Book released, BoC decision
  • Earnings : Dollar Tree

Thursday June 5

  • Data : US April trade balance, initial jobless claims, China May Caixin services PMI, UK May new car registrations, construction PMI, Japan April labor cash earnings, Germany April factory orders, May construction PMI, Italy April retail sales, Eurozone April PPI, Canada April international merchandise trade, Sweden May CPI
  • Central banks : Fed’s Kugler and Harker speak, ECB’s decision, BoE’s Greene and Breeden speak, DMP survey released
  • Earnings : Broadcom, Lululemon

Friday June 6

  • Data : US May jobs report, April consumer credit, Japan April household spending, leading index, coincident index, Germany April industrial production, trade balance, France April trade balance, current account balance, industrial production, Eurozone April retail sales, Canada May jobs report
  • Central banks : ECB’s Holzmann and Centeno speak

Finally, looking at just the US, Goldman writes that the key economic data releases this week are the ISM manufacturing and services indices on Monday and Wednesday, respectively, and the employment report on Friday. There are several speaking engagements from Fed officials this week. Chair Powell will deliver opening remarks at a conference hosted by the Fed Board on Monday

Monday, June 2

  • 09:45 AM S&P Global US manufacturing PMI, May final (consensus 52.3, last 52.3)
    We estimate the ISM manufacturing index increased by 0.8pt to 49.5 in May, reflecting firmer manufacturing surveys so far for May (GS manufacturing survey tracker +2.4pt to 49.5).
    10:15 AM Dallas Fed President Logan (FOMC non-voter) speaks: Dallas Fed President Lorie Logan will participate in a moderated discussion with Gabe Guerra, CEO of Kleberg Bank. Audience and media Q&A are expected. On May 29th, Logan said she thought that “monetary policy is in a good place,” with “the labor market holding strong, inflation trending back to target, and risks to the FOMC’s objectives roughly balanced.” Logan also noted that “it could take quite some time to know whether the balance of risks is shifting in one direction or another.”
  • 10:00 AM Construction spending, April (GS +0.2%, consensus +0.2%, last -0.5%)
  • 10:00 AM ISM manufacturing index, May (GS 49.5, consensus 49.5, last 48.7):
  • 12:45 PM Chicago Fed President Goolsbee (FOMC voter) speaks: Chicago Fed President Austan Goolsbee will take part in a Q&A at the Quad Cities Business Journal Mid-Year Economic Review in Davenport, Iowa. On May 29th, Goolsbee noted that if “either we don’t put the tariffs in, or they reach some deals that allow us to avoid doing that, we could go back to [where] we were prior to April 2,” and that “if you have stable full employment and inflation going to target, rates can come down to where they would eventually settle.” Goolsbee observed that “if we can get the dust out of the air, I do still think that underneath there is a strong dual-mandate economy,” but that “the longer we go contemplating really big changes, … the more that fades into the background.”
  • 01:00 PM Fed Chair Powell speaks: Fed Chair Jerome Powell will deliver opening remarks at a conference commemorating the 75th anniversary of the International Finance Division of the Fed Board. Text is expected. On May 15th, Powell said that in its 2025 monetary policy framework review, the FOMC will reconsider the language from its previous review about focusing on “shortfalls” rather than “deviations” from maximum employment and about average inflation targeting. Before that, at the press conference following the FOMC’s May meeting on May 7th, Powell said about twelve times that monetary policy is in a good place and the FOMC can wait and see how the economy evolves for now. He noted that both trade policy and its economic effects remain uncertain, and he reiterated that tariffs could put the two sides of the Fed’s dual mandate in tension. As a result, he said, “Right now there’s no need to make a choice and no real basis for doing so.”

Tuesday, June 3

  • 10:00 AM Factory orders, April (GS -3.6%, consensus -3.1%, last 3.4%); Factory orders ex-transportation, April (last -0.4%); Durable goods orders, April final (consensus -6.3%, last -6.3%); Durable goods orders ex-transportation, April final (consensus +0.1%, last +0.2%); Core capital goods orders, April final (last -1.3%); Core capital goods shipments, April final (last -0.1%)
  • 10:00 AM JOLTS job openings, April (GS 7,200k, consensus 7,100k, last 7,192k): We estimate that JOLTS job openings were roughly unchanged at 7.2mn in April based on the signal from online job postings.
  • 12:45 PM Chicago Fed President Goolsbee (FOMC voter) speaks: Chicago Fed President Austan Goolsbee will take part in a Q&A at the Corridor Business Journal Mid-Year Economic Review in Cedar Rapids, Iowa. Q&A is expected.
  • 01:00 PM Fed Governor Cook speaks: Fed Governor Lisa Cook will discuss the economic outlook at an event hosted by the Council on Foreign Relations. Text and Q&A are expected.
  • 03:30 PM Dallas Fed President Logan (FOMC non-voter) speaks: Dallas Fed President Lorie Logan will deliver opening remarks at a Fed Listens event. Text is expected.
  • 05:00 PM Lightweight motor vehicle sales, May (GS 15.7mn, consensus 16.1mn, last 17.3mn)

Wednesday, June 4

  • 08:15 AM ADP employment change, May (GS +115k, consensus +110k, last +62k)
  • 08:30 AM Atlanta Fed President Bostic (FOMC non-voter) and Fed Governor Cook speak: Atlanta Fed President Raphael Bostic and Fed Governor Lisa Cook will moderate a roundtable conversation at a Fed Listens event.
  • 09:45 AM S&P Global US services PMI, May final (consensus 52.3, last 52.3)
    We estimate that the ISM services index increased by 0.4pt to 52.0 in May, reflecting sequential improvement in our non-manufacturing survey tracker (+1.0pt to 50.3 in May).
  • 10:00 AM ISM services index, May (GS 49.8, consensus 52.1, last 51.6):
  • 02:00 PM Beige Book, June meeting period: The Fed’s Beige Book is a summary of regional economic anecdotes from the 12 Federal Reserve districts. The Beige Book for the May FOMC meeting period noted that economic activity was roughly unchanged since March, with five districts reporting “slight growth,” three districts reporting “relatively unchanged” activity, and the other four districts reporting “slight to modest declines” in activity. The Beige Book noted that the economic outlook had “worsened considerably” for “several” districts because of higher uncertainty, partly as a result of changes to trade policy. The Fed noted that the report was based on information collected on or before April 14th, 2025, after the reciprocal tariffs pause but before the pause in US-China tariff increases on May 12th. In this month’s Beige Book, we look for anecdotes related to changes in expectations and the outlook as a result of the recent reductions in tariffs.

Thursday, June 5

  • 08:30 AM Trade balance, April (GS -$64.0bn, consensus -$66.5bn, last -$140.5bn): We forecast that trade deficit narrowed from $140.5bn to $64.0bn in April, reflecting a sharp decline in the goods trade deficit and a rebound in travel services exports.
  • 08:30 AM Nonfarm productivity, Q1 final (GS -0.7%, consensus -0.8%, last -0.8%): Unit labor costs, Q1 final (GS +6.1%, consensus +5.7%, last +5.7%)
  • 08:30 AM Initial jobless claims, week ended May 31 (GS 235k, consensus 235k, last 240k): Continuing jobless claims, week ended May 24 (consensus 1,906k, last 1,919k)
  • 12:00 PM Fed Governor Kugler speaks: Fed Governor Adriana Kugler will deliver a speech on the economic outlook at the Economic Club of New York. Text and Q&A are expected. On May 12th, Kugler said that “trade policies are evolving and are likely to continue shifting,” but noted that they nevertheless “appear likely to generate significant economic effects even if tariffs stay close to the currently announced levels.”
  • 01:30 PM Philadelphia Fed President Harker (FOMC non-voter) speaks:  Philadelphia Fed President Patrick Harker will deliver remarks on the economic outlook at an event hosted by the Philadelphia Fed. Text and Q&A are expected.
  • 01:30 PM Kansas City Fed President Schmid (FOMC voter) speaks: Kansas City Fed President Jeff Schmid will deliver a speech on banking policy at an event hosted by the Kansas City Fed. Text and Q&A are expected.

Friday, June 6

  • 08:30 AM Nonfarm payroll employment, May (GS +125k, consensus +125k, last +177k); Private payroll employment, May (GS +115k, consensus +110k, last +167k); Average hourly earnings (MoM), May (GS +0.3%, consensus +0.3%, last +0.2%); Unemployment rate, May (GS 4.2%, consensus 4.2%, last 4.2%): We estimate nonfarm payrolls rose 125k in May. On the positive side, big data indicators indicated a solid pace of job creation. On the negative side, we expect another modest increase in government payrolls (GS forecast 10k vs. 13k on average so far this year), reflecting a 10k decline in federal government payrolls that partly offsets a 20k increase in state and local government payrolls. We estimate that the unemployment rate was unchanged at 4.2% on a rounded basis. We estimate average hourly earnings rose 0.3% (month-over-month, seasonally adjusted), reflecting neutral calendar effects.

Source: DB, Goldman

Tyler Durden
Mon, 06/02/2025 – 09:45

The Tide Is Turning Against The Transgender Takeover Of Women’s Sports

The Tide Is Turning Against The Transgender Takeover Of Women’s Sports

In February, President Donald Trump signed an executive order banning transgender athletes (men pretending to be women) from participation in publicly funded women’s sporting events.  “We will not allow men to beat up, injure and cheat our women and our girls. From now on, women’s sports will be only for women,” Trump said at the signing ceremony, standing at a podium flanked by female athletes. “With this executive order, the war on women’s sports is over.”

The shift in public sentiment by the end of 2024 was palpable.  The western world was being force fed a steady diet of trans propaganda that bordered on worship.  The public could not go anywhere without being inundated with LGBT flags and imagery.  For a minority that represents less than 1% of the global population, the level of funding and political power behind them has been astonishing.   

The proclamation that trans people were a special and privileged class and their feelings had to be protected at all costs was simply too much.  The campaigns to control American speech, indoctrinate American children in public schools and insert men into women’s spaces inspired widespread anger.

Trump’s order was important in changing the discourse on the transgender issue in political terms, but the grotesque societal stain left behind by a decade-long invasion of transgender ideology into American culture will take a bit more effort to wash out.  Don’t shine a black light on America’s sheets, you won’t be happy with what you find.

Most critics of men using the trans issue as a way to sneak into women’s bathrooms, locker rooms and athletics have noted that women and their families will have to step up and fight back if they ever hope to save female spaces from being dominated by mentally ill dudes in wigs and makeup.  A common question throughout the early 2020s was “When are the women going to speak up and defend themselves?”

It seems as though this is finally happening.  With women athletes like Riley Gaines leading the charge there has been a noticeable change in tone among women competitors as well as attendees of these sports events.  

Most transgender participation in sports is happening in a handful of leftist holdout states like California, Oregon, Washington and Maine.  However, female athletes and their families have been far less inclined to pretend as if they agree with school policies allowing men to compete. 

One trans athlete, Ada Gallagher (a boy pretending to be a girl), said he and his family are planning to move to Canada because of the backlash.  Ada crushed his female competition in the Oregon State Championship for track and was met with boos from the crowd.  This has inspired the young man and his family to leave the country (instead of simply competing in men’s sports as he should). 

In California a trans athlete named AB Hernandez (male pretending to be female) dominated the high jump in the high school track and field competition.  The man took the 1st place podium for photos only to be met with silence.  The second place was met with exuberant cheers.

Female athletes are also refusing to take to the podium when men are allowed to compete and win in events.

In other cases, the audience outright boos male competitors when they win women’s events. 

The media claims the backlash against trans athletes is overblown because they represent a small percentage of competitors.  Leftists will argue that this behavior is discriminatory and “mean spirited”, but they don’t consider the situation from the point of view of real women athletes (or they don’t care).  Every time a man wins a women’s sports event he is stealing an opportunity from a woman who worked hard her entire life to get to that moment.  He skipped ahead of those women by using his biological advantage and exploiting a political loophole.  He’s making a mockery of the spirit of competition.

Furthermore, the longer this trend is allowed to continue the more real women will be phased out of sports by men.  In ten years time it would not be unreasonable to predict that every top athlete in women’s sports will be a man.  Biological female winners will become a thing of the past.  Ultimately, real women will stop participating altogether, because what’s the point.

Pressure must be applied at every level to erase this travesty.  The age of madness when America entertained the delusions of the mentally ill for the sake of progressive relativism needs to finally and fully end.  The concept of trans athletes needs to become an embarrassing and forgotten memory, and this will only happen when Americans stop feeling obligated to applaud them for their theatrics.      

Tyler Durden
Mon, 06/02/2025 – 06:55

Reishi Mushroom: An Ancient Mushroom For Modern Health Benefits

Reishi Mushroom: An Ancient Mushroom For Modern Health Benefits

Authored by Ben Lam and JoJo Novaes via The Epoch Times (emphasis ours),

Lingzhi (Reishi Mushroom) is a medicinal mushroom regarded as a precious Chinese medicinal herb since ancient times. It is well known for its benefits of “tonifying the five internal organs and prolonging life.”

Neelakandi/Shutterstock

In NTDTV’s “Health 1+1” program, Shu Rong, a traditional Chinese medicine (TCM) practitioner and director of Dr. Rong’s Clinic in Cambridge, England, gave an in-depth analysis of the efficacy of Reishi Mushroom, how to take it, and key points for purchasing. She also provided us with practical health advice and identified risk groups that should avoid eating it.

Reishi Mushroom’s Many Health Benefits

Reishi Mushroom provides nourishment to all organs, Shu said. The ancient TCM text on agricultural and medicinal plants, “Shennong’s Herbal Classics,” lists Reishi Mushroom as a “superb product,” which means it can be taken for a long time without side effects, and its continued use will produce better and better results. The book records the beneficial effects of two types of Reishi Mushroom—purple and red.

According to the ancient text, purple Reishi Mushroom was used to cure deafness and arthritis, strengthen muscles and bones, pacify the mind, promote fertility, and improve skin condition.

Red Reishi Mushroom was said to treat heart disease, memory loss, lack of concentration, and slow aging.

Modern medical research has confirmed that more than 200 polysaccharides and more than 400 secondary metabolites have been found in Reishi Mushroom. Reishi Mushroom is anti-inflammatory, antioxidant, can prevent cardiovascular disease, and prevent and treat diabetes. It can also improve respiratory diseases such as bronchitis, asthma, chronic cough, improve sleep, promote digestion, and regulate the function of our immune system.

6 Types of Reishi Mushroom

There are many varieties of Reishi Mushroom. Shu said that according to the renowned TCM classic “Compendium of Materia Medica,” Reishi Mushroom can be divided into six categories according to their colors. TCM believes that different colors correspond to different organs. Thus, different-colored Reishi Mushroom acts on various parts of the body.

1. Red Reishi Mushroom: enters the heart, improves cardiovascular health, pacifies the mind, enhances physical strength.

2. Purple Reishi Mushroom: enters the heart and kidneys, pacifies the mind, strengthens joints and tendons, and fights fatigue.

3. Black Reishi Mushroom: enters and protects the kidneys, promotes diuresis, nourishes the brain.

4. Yellow Reishi Mushroom: enters and nourishes the spleen, can nourish stomach functions, and balance the intestinal microecology.

5. White Reishi Mushroom: enters the lungs, can help lung health, relieve cough, and asthma.

6. Green Reishi Mushroom: enters the liver, can protect the liver, improve eyesight, relieve anxiety, soothe emotions.

Best Ways to Take Reishi Mushroom

Since Reishi Mushroom has mild medicinal attributes, it can regulate and improve physical fitness and usually requires long-term and continuous consumption to exhibit its full effects. Shu recommends primarily the following four forms of administration:

1. Broken Wall Reishi Mushroom Spore Powder

Reishi Mushroom spores are the reproductive part of Reishi Mushroom. They contain higher concentrations of active ingredients than Reishi Mushroom fruit bodies, but are not easily absorbed by the human body, so they need to be broken down. Breaking the peel is hard, so it’s best to buy ready-made Reishi Mushroom powder.

Shu recommends taking 1 to 2 grams per day of peeled Reishi Mushroom spore powder in 158-degree Fahrenheit water, split into 2 to 3 doses according to your condition. Healthy people without any symptoms can take it in the morning. Those with any illness should consult their doctor and adjust the dosage accordingly.

Shu said that seeing the full effects of Reishi Mushroom can take time. It may take up to one to two months for its full effects to become apparent.

2. Reishi Mushroom Spore Oil

The oil version extracted from Reishi Mushroom spores is easily absorbed and is thus suitable for older people. Reishi Mushroom spore oil is mostly sold in capsules. Be sure to pay attention to the product instructions and take it according to the doctor’s advice.

3. Reishi Mushroom Fruiting Body

Reishi Mushroom fruiting body refers to the main body of Reishi Mushroom, which can be ground into powder and eaten as it is. Due to its naturally bitter taste, it is often encapsulated for easier intake, with a typical dosage of 3 grams per day.

4. Reishi Mushroom Medicinal Diet

Reishi Mushroom fruiting bodies can be used to make medicinal food. Shu recommends a nutritious and delicious medicinal dish: “Adenophora, Polygonatum, Chinese Yam, Reishi Mushroom, and Lean Meat Soup.”

Ingredients

  • 20 grams each of Reishi Mushroom, Adenophora sibiricum,  Polygonatum odoratum, and dried Chinese yam
  • 3 figs
  • 15 grams of sweet apricot kernels
  • 1 gram of preserved tangerine peel
  • 250 grams lean meat
  • 3 liters water

Preparation

  • Wash ingredients, slice the Reishi Mushroom, cut figs in half, blanch meat, then place all the ingredients into a clay pot.
  • Add water and boil for 10 minutes.
  • Reduce heat and simmer for 2 hours.
  • Add a little salt to add taste and serve.

According to Shu, this soup can moisten the lungs, relieve coughs, balance immune function, and enhance disease resistance. It is suitable for people with weak pulmonary function, prone to coughing and colds. However, even people who do not have a cough can eat it and use it as a health food.

Wild Reishi Mushroom Versus Its Cultivated Peer

Shu said that wild Reishi Mushroom is not necessarily better than cultivated Reishi Mushroom. Although the ancients may have been able to pick high-quality wild Reishi Mushroom due to a better environment or better expertise in identifying wild medicine, modern wild Reishi Mushroom may be contaminated by heavy metals, toxic plant spores, and other substances, which may endanger health.

The output of wild Reishi Mushroom is limited, and due to their different origins, the active ingredients vary greatly, the quality is difficult to control, and the efficacy varies a lot, she said. On the other hand, the active ingredients of cultivated Reishi Mushroom are relatively stable, resulting in a more reliable therapeutic effect. In addition, cultivated Reishi Mushroom has been evaluated and certified, making it a safer choice. Therefore, under normal circumstances, cultivated Reishi Mushroom can often achieve satisfactory results.

Guidance at Purchase

According to Shu, when purchasing Reishi Mushroom, we need to pay attention to the following:

  1. Choose wild sources carefully. Be extra careful with wild Reishi Mushroom of unknown origin, as they may be toxic and even life-threatening.
  2. Choose certified products. For cultivated Reishi Mushroom, choose products from reliable sources. You need to check whether they have undergone qualified inspection programs with certification and proof of quality.
  3. It is better if the whole plant is intact: When purchasing Reishi Mushroom, choose the whole plant version. It should be one complete piece, without any damage or insect infestation.
  4. Pay attention to its grade identification: Grade identification directly indicates the toxicity of Reishi Mushroom, an important yardstick to ensure safety with no toxic contents.

Contraindications

Although Reishi Mushroom is a top-grade Chinese medicine, it is not suitable for everyone. Shu said the following people should avoid, or take it with caution:

1. People who are allergic to Reishi Mushroom. Shu said that an exceedingly small number of people may have allergic reactions to Reishi Mushroom. If you experience skin rashes or discomfort, such as bloating, after taking it, you should stop taking it immediately. People with allergies should be cautious and consult their doctors before taking Reishi Mushroom.

2. Infants and minors. Reishi Mushroom is often used primarily for the elderly, weak, and those who are prone to illness to help regulate their bodies. Under normal circumstances, infants, minors, and healthy adults only need a balanced diet to maintain good health. If the latter group of people feel they need to take Reishi Mushroom, they should first consult a doctor to confirm whether it is suitable for their physical condition.

3. Those with wounds. People with wounds or long-term unhealed injuries should not eat Reishi Mushroom. Because Reishi Mushroom promotes blood circulation and removes blood stasis, it may affect blood coagulation and hinder wound healing.

4. Those with an upcoming surgery. Reishi Mushroom should not be taken one week before surgery because it may interact with anesthetic drugs and affect their effectiveness. Since wounds need to heal as quickly as possible after surgery, the blood-activating effect of Reishi Mushroom can interfere with the coagulation mechanism and may prolong the healing process. Therefore, you should consider taking Reishi Mushroom only one to two weeks after surgery.

5. Those taking Western medicine. Reishi Mushroom may interact with certain drugs. People taking Western medicine are advised to consult a doctor to confirm whether it is appropriate for them to take Reishi Mushroom at the same time.

Note: Some of the herbs mentioned in this article may be unfamiliar, but they are generally available in health food stores and Asian markets. Treatment methods may vary depending on the person. Consult a health care professional for a personalized plan.

Tyler Durden
Mon, 06/02/2025 – 06:30

Which Cities Are Investing The Most Into AI?

Which Cities Are Investing The Most Into AI?

As the global AI race heats up, a growing share of AI funding is being funneled into a few dominant tech ecosystems.

This map, via Visual Capitalist’s Kayla Zhu, visualizes the top 10 regions with the highest share of venture funding in the ecosystem that went to AI-native companies.

The data comes from Startup Genome, with data covering 2023 and 2024 funding.

AI-native companies are defined by Startup Genome as companies that build cutting-edge generative AI models and deploy AI agents that automate tasks, enhance decision-making, and drive innovation.

Top Cities by AI Funding

Below, we show the top 10 regions with the highest AI funding concentration.

Beijing’s startup investors are placing their biggest bets on AI, dedicating more funding to the growing sector than anywhere else.

The Chinese capital now leads the world in AI deal concentration, with 66% of its ecosystem’s startup funding directed toward AI-native companies—just edging out Silicon Valley at 62%.

Yet in absolute terms, Silicon Valley remains the dominant global hub.

It attracts over 65% of all AI-native funding worldwide—double its share of overall tech funding, which stands at 32.2%.

Together, the “AI Big Three”—Silicon Valley, Beijing (10% of global AI-native funding), and Paris (4.3%)—account for a staggering 79.4% of all AI-native investment across the top 40 global startup ecosystems. The remaining 20.6% is split among all other ecosystems.

Beijing has quickly emerged as a magnet for AI investment, with major local startups like Baichuan AI, Zhipu AI, Moonshot AI, and Shengshu Technology collectively raising billions from tech giants and government-backed funds to advance AI models and tools.

In terms of top hubs by AI deal concentration, both Asia and North America boast four cities each in the global top 10 for AI funding, underscoring the regions’ aggressive push in the sector.

Meanwhile, some traditional tech powerhouses like New York and Seattle are falling behind in the AI race.

Only 14% and 15% of their venture funding, respectively, is going toward AI-native startups.

To learn about the global AI race from a different perspective, check out this graphic that compares who’s winning the AI patent race.

Tyler Durden
Mon, 06/02/2025 – 05:45

The BRICS Go Their Own Way

The BRICS Go Their Own Way

Authored by James Rickards via DailyReckoning.com,

It’s that time again.

Time for the annual BRICS+ Leaders Summit. The BRICS have hundreds of meetings over the course of the year on every topic from sports to women’s issues to agriculture. But there is only one Leaders Summit. That’s when the heads of state of the members convene to discuss policy issues and to make announcements of major importance.

For those new to BRICS, it’s an acronym from the names of the founding members of Brazil, Russia, India and China who first met in 2009. That gave us BRICs. South Africa joined in 2010 and the group became BRICS. Iran, Ethiopia, UAE and Egypt joined in 2024 and Indonesia joined in 2025. I refer to this expanded group of ten as BRICS+.

In 2024, a partner category was established for countries that are not full members of BRICS but are invited to join the Leaders’ and Foreign Ministers’ Summits. The current partners are Belarus, Bolivia, Kazakhstan, Cuba, Malaysia, Nigeria, Thailand, Uganda, and Uzbekistan. Some of these partners may become full members in the near future.

In addition, there is an even longer waiting list of potential future members including important economies such as Turkey, Algeria, and Saudi Arabia. Regardless of the specific dates on which particular countries join BRICS or become partner members, the continued expansion of the group seems assured.

Not A Motley Crew

While the Leaders’ Summit is an annual event, it does not occur at the same time each year. The exact date depends on the schedules of the leaders themselves as well as seasonal conditions in the host country. The overall leadership of BRICS+ is a rotating presidency among Brazil, Russia, India, China and South Africa. Last year, the summit was held in Russia in October with President Putin as host.

This year Brazil has the rotating presidency and the summit will be in Rio de Janeiro on July 6 – 7, 2025. Brazilian President Luiz Inácio Lula da Silva is host. All of the founding BRICS leaders are expected to attend including Lula da Silva (Brazil), Vladimir Putin (Russia), Narendra Modi (India), Xi Jinping (China) and Cyril Ramaphosa (South Africa), along with many others.

A brief comparison of the combined resources of the first five BRICS members with the resources of the G7 (U.S., UK, Germany, Italy, France, Japan and Canada) is instructive.

In terms of population, the BRICS have 3.3 billion people compared to 0.8 billion in the G7. The total land area is 39.7 km2 for BRICS versus 21.7kn2 for the G7.

Real annual growth in GDP is about 5% for the BRICS versus 2% in the G7. Nominal GDP for the G7 leads the BRICS by $45.3 trillion (43.7% of global output) compared to $26.7 trillion (28.7% of global output). But when purchasing power parity accounting is used, the BRICS lead G7 $51.6 trillion to $48 trillion.

The point is not that the BRICS are overtaking the G7 across the board – they’re not. The point is that the BRICS are a powerful group demographically and economically and not a motley collection of what were once called third-world countries.

Prepared To Go Their Own Way

The BRICS do far more than gather for summits. They have spent the last sixteen years carefully and methodically building a parallel version of the original Bretton Woods institutions (1944) to suit their own purposes.

The BRICS New Development Bank based in Shanghai functions much like the World Bank as a development lender. The BRICS Contingent Reserve Arrangement (CRA) functions much like the IMF as a swing lender to members experiencing temporary liquidity or foreign exchange distress. The new BRICS payment system (BRICS Pay) functions as a financial payment, settlement and clearance system to displace Western institutions such as SWIFT and Euroclear.

Simply stated, the BRICS are preparing to go their own way and leave the Western financial architecture behind.

What’s NOT Happening This Year

The next BRICS summit in Rio on July 6 promises to be momentous in terms of announcements related to the continued development of this new financial architecture and possible new members. Before considering what these announcements will be, it’s helpful to list what the BRICS will not be doing. BRICs meetings are often surrounded by unfounded conjecture and wild speculation. Let’s dismiss the speculation before turning to the real.

The BRICS will not be announcing a new BRICS currency. There was a lot of speculation about that two years ago at the Leaders’ Summit in South Africa. It didn’t happen then and it’s not happening now. In fact, there may not be a BRICS currency for many years, maybe ever.

The BRICS members have been expanding trade with each other and have been paying with their local currencies and sometimes using the U.S. dollar for convenience. The euro was not created overnight. It took ten years from the Maastricht Treaty in 1991 to the launch of the euro in 2000 to solve all the technical problems. Even the Maastricht Treaty was the result of over twenty-years of experimentation with the European Monetary System (1979-1999), which was an earlier effort to peg exchange rates after the end of the gold standard. So, don’t expect a unified BRICS currency for the foreseeable future.

The BRICS will not be returning to a gold standard. When we use the term “gold standard,” we’re referring to a system in which one or more currencies are pegged to a fixed quantity of gold and the currency is freely convertible into gold at that fixed rate. When more than one currency is on such a gold standard, those currencies are pegged to each other also by the transitive law.

The world was on an ad hoc gold standard from 1870 to 1914 and was on a version of the gold standard by international agreement from 1925 to 1936 and again from 1944 to 1971 under Bretton Woods. There has not been a true gold standard since 1971, and there won’t be one emerging from the BRICS anytime soon.

Finally, there is nothing on the BRICS agenda about abandoning U.S. dollars or ending the role of the U.S. dollar as the unit of account. Today, the dollar accounts for about 60% of global reserves and over 80% of global energy purchases. Despite numerous flaws and complaints, the end of the dollar reserve system and the Petrodollar Accord is not in sight.

What To Expect

With the BRICS currency, a new gold standard and the “end of the dollar” put to one side at least for now, what will the BRICS actually be doing?

The most important initiative will be to admit new members and add new countries to the partner list. The key to creating a BRICS currency (in the long run) and displacing the dollar (in the long run) is to create a large trading area that will accept whatever new currency might be proposed. That was one key to creation of the euro.

The European Monetary Union (EMU) had 11 members in 2000 and has 20 members today with more on a waiting list. The euro is also widely accepted and traded by banks around the world, even outside the EMU. By adding members, the BRICS are making important strides in the direction of a large trading area with mutual payment arrangements.

Another key area for BRICS expansion is the build-out and launch of new systems for payments, settlement and custody. Currently, BRICS members are forced into Western-dominated payment systems such as SWIFT, FedWire, DTCC and Euroclear. These systems are efficient and secure but they are controlled by the U.S. and other G7 governments.

This means that BRICS assets cleared or held in those systems are subject to freezes and seizures by the U.S. and its allies for geopolitical reasons. This has already happened to Russia with regard to $300 billion of its reserves held in the form of U.S. Treasury securities in custody at U.S. banks and Euroclear. Those assets are gradually being stolen by the U.S. to prop-up the neo-Nazi regime in Ukraine. Having alternative systems will weaken U.S. financial sanctions and protect BRICS assets.

The BRICS Golden Currency

While the buzz about a new gold standard is overhyped, gold is still a central part of what the BRICS are all about. Those calling for a new BRICS currency seem not to realize that the BRICS already have a common currency – it’s gold.

If Russia has a trade surplus with China, they will accumulate an excess reserve in yuan. If China builds up a trade surplus with Brazil, they will accumulate an excess reserve in reais. These reserves are not useful beyond a certain point and there are no large liquid bond markets in which they can be invested with liquidity and safety. Conversion to U.S. dollars and the purchase of U.S. Treasury securities is an option, but it leaves the holder subject to U.S. sanctions and outright theft.

The alternative is to convert the BRICS currency reserves into gold. In effect, gold is a leading reserve monetary asset for BRICS central banks. When held in physical form in a safe location, gold cannot be frozen or stolen by the U.S. And gold is freely acceptable by the other BRICS members.

This phenomenon is borne out by hard data. Since 2009, Russia has increased its gold reserves from 531 metric tonnes (mt) to 2,333 mt. China has increased its gold reserves from 600 mt to 2,293 mt. India has increased its gold reserves from 358 mt to 880 mt.

These are official holdings, not including private ownership. It is estimated that citizens of India may have as much as 5,000 mt in the form of jewelry and bullion. There is also good reason to believe that Chinese official gold holdings are significantly larger than the figure reported above. Finally, some countries are acquiring large reserves of gold but are non-transparent about their holdings. BRICS member Iran is in this category.

So, the BRICS already have a common currency in the form of gold.

Geoeconomics Rules

It’s important to emphasize that the BRICS are not a military alliance. There are no mutual defense treaties at the BRICS level. The BRICS are a multilateral organization focused on cooperation in economics and other social and person-to-person issues. Critics who say that the BRICS cannot work because of geopolitical tensions, including those between China and India, are missing the point. Geopolitics does not stand in the way of geoeconomics when there are issues that can be addressed on a win-win basis.

The BRICS summit in Rio may disappoint those who are predicting a “global reset” or the “end of the dollar.” But it will be momentous, nonetheless. The end of the role of sterling as a global reserve currency took thirty years (1914-1944). The rise of the euro as a global reserve currency also took thirty years (1979-2000). These were real monetary resets but they didn’t happen overnight. The key is to watch for important moves in a direction that enables us to see the future of the global monetary system. There will be plenty of that on display in Rio de Janeiro this July.

Tyler Durden
Mon, 06/02/2025 – 05:00

US & China’s Combined GDP Equals 184 Countries

US & China’s Combined GDP Equals 184 Countries

The U.S. and China are in the midst of their second trade war in seven years.

Earlier this year President Trump announced an initial 34% “reciprocal” tariff rate on China, leading to a swift Chinese retaliation.

For a brief period, both crossed into 100% territory (i.e., more than the entire cost of the goods itself).

Experts cautioned that the resulting chaos could wipe off hundreds of billions from both economies and financial markets saw a swift downturn in response.

Since then, tariff rates have come down: varying between 40–50% on Chinese goods entering the U.S. and 10–30% on U.S. products entering China.

In this chart, Visual Capitalist’s Pallavi Rao compares the combined GDP of the U.S. and China versus everyone else, using April 2025 data from the International Monetary Fund.

Ranked: Countries by GDP in 2025

The latest estimates for 2025 have America’s and China’s combined GDP at roughly $50 trillion.

Of the two, the U.S. is much larger, at about $31 trillion, with China at $19 trillion.

Rank Countries 2025 GDP
(in Millions)
1 🇺🇸 U.S. $30,507
2 🇨🇳 China $19,232
3 🇩🇪 Germany $4,745
4 🇮🇳 India $4,187
5 🇯🇵 Japan $4,186
6 🇬🇧 UK $3,839
7 🇫🇷 France $3,211
8 🇮🇹 Italy $2,423
9 🇨🇦 Canada $2,225
10 🇧🇷 Brazil $2,126
11 🇷🇺 Russia $2,076
12 🇪🇸 Spain $1,800
13 🇰🇷 South Korea $1,790
14 🇦🇺 Australia $1,772
15 🇲🇽 Mexico $1,693
16 🇹🇷 Türkiye $1,437
17 🇮🇩 Indonesia $1,430
18 🇳🇱 Netherlands $1,272
19 🇸🇦 Saudi Arabia $1,084
20 🇵🇱 Poland $980
21 🇨🇭 Switzerland $947
22 🇹🇼 Taiwan $805
23 🇧🇪 Belgium $685
24 🇦🇷 Argentina $684
25 🇸🇪 Sweden $620
26 🇮🇪 Ireland $599
27 🇮🇱 Israel $583
28 🇸🇬 Singapore $565
29 🇦🇪 UAE $549
30 🇹🇭 Thailand $546
31 🇦🇹 Austria $534
32 🇳🇴 Norway $504
33 🇵🇭 Philippines $497
34 🇻🇳 Vietnam $491
35 🇧🇩 Bangladesh $467
36 🇩🇰 Denmark $450
37 🇲🇾 Malaysia $445
38 🇨🇴 Colombia $428
39 🇭🇰 Hong Kong $424
40 🇿🇦 South Africa $410
41 🇷🇴 Romania $403
42 🇨🇿 Czech Republic $360
43 🇪🇬 Egypt $347
44 🇨🇱 Chile $344
45 🇮🇷 Iran $341
46 🇵🇹 Portugal $321
47 🇫🇮 Finland $304
48 🇵🇪 Peru $303
49 🇰🇿 Kazakhstan $301
50 🇩🇿 Algeria $269
51 🇬🇷 Greece $267
52 🇮🇶 Iraq $258
53 🇳🇿 New Zealand $249
54 🇭🇺 Hungary $237
55 🇶🇦 Qatar $223
56 🇺🇦 Ukraine $206
57 🇳🇬 Nigeria $188
58 🇲🇦 Morocco $166
59 🇰🇼 Kuwait $153
60 🇸🇰 Slovak Republic $147
61 🇺🇿 Uzbekistan $132
62 🇰🇪 Kenya $132
63 🇩🇴 Dominican Republic $128
64 🇪🇨 Ecuador $126
65 🇵🇷 Puerto Rico $123
66 🇬🇹 Guatemala $121
67 🇪🇹 Ethiopia $117
68 🇧🇬 Bulgaria $117
69 🇦🇴 Angola $113
70 🇻🇪 Venezuela $109
71 🇴🇲 Oman $104
72 🇨🇷 Costa Rica $103
73 🇭🇷 Croatia $99
74 🇱🇺 Luxembourg $97
75 🇨🇮 Côte d’Ivoire $94
76 🇷🇸 Serbia $93
77 🇵🇦 Panama $92
78 🇱🇹 Lithuania $89
79 🇹🇲 Turkmenistan $89
80 🇬🇭 Ghana $88
81 🇹🇿 Tanzania $86
82 🇺🇾 Uruguay $80
83 🇨🇩 DRC $79
84 🇦🇿 Azerbaijan $79
85 🇸🇮 Slovenia $75
86 🇧🇾 Belarus $72
87 🇲🇲 Myanmar $65
88 🇺🇬 Uganda $64
89 🇧🇴 Bolivia $56
90 🇹🇳 Tunisia $56
91 🇯🇴 Jordan $56
92 🇨🇲 Cameroon $56
93 🇲🇴 Macao $53
94 🇰🇭 Cambodia $50
95 🇧🇭 Bahrain $48
96 🇱🇾 Libya $47
97 🇳🇵 Nepal $46
98 🇱🇻 Latvia $46
99 🇵🇾 Paraguay $45
100 🇪🇪 Estonia $45
101 🇨🇾 Cyprus $39
102 🇭🇳 Honduras $38
103 🇿🇼 Zimbabwe $38
104 🇸🇻 El Salvador $37
105 🇬🇪 Georgia $35
106 🇮🇸 Iceland $35
107 🇸🇳 Senegal $35
108 🇭🇹 Haiti $34
109 🇵🇬 Papua New
Guinea
$33
110 🇸🇩 Sudan $32
111 🇬🇳 Guinea $30
112 🇿🇲 Zambia $29
113 🇧🇦 Bosnia &
Herzegovina
$29
114 🇦🇱 Albania $28
115 🇧🇫 Burkina Faso $27
116 🇹🇹 Trinidad
& Tobago
$26
117 🇦🇲 Armenia $26
118 🇬🇾 Guyana $26
119 🇲🇳 Mongolia $26
120 🇲🇹 Malta $26
121 🇲🇿 Mozambique $24
122 🇲🇱 Mali $23
123 🇧🇯 Benin $22
124 🇳🇪 Niger $22
125 🇯🇲 Jamaica $21
126 🇳🇮 Nicaragua $21
127 🇬🇦 Gabon $20
128 🇰🇬 Kyrgyz
Republic
$20
129 🇲🇩 Moldova $19
130 🇧🇼 Botswana $19
131 🇹🇩 Chad $19
132 🇲🇬 Madagascar $19
133 🇲🇰 North Macedonia $18
134 🇾🇪 Yemen $17
135 🇱🇦 Laos $16
136 🇧🇳 Brunei $16
137 🇲🇺 Mauritius $15
138 🇨🇬 Congo $15
139 🇧🇸 The Bahamas $15
140 🇹🇯 Tajikistan $15
141 🇷🇼 Rwanda $15
142 🇳🇦 Namibia $14
143 🇲🇼 Malawi $14
144 🇸🇴 Somalia $13
145 🇬🇶 Equatorial
Guinea
$13
146 🇲🇷 Mauritania $11
147 🇽🇰 Kosovo $11
148 🇹🇬 Togo $10
149 🇲🇪 Montenegro $9
150 🇸🇱 Sierra Leone $8
151 🇧🇧 Barbados $8
152 🇲🇻 Maldives $7
153 🇧🇮 Burundi $7
154 🇫🇯 Fiji $6
155 🇸🇿 Eswatini $5
156 🇱🇷 Liberia $5
157 🇩🇯 Djibouti $5
158 🇸🇷 Suriname $5
159 🇦🇼 Aruba $4
160 🇦🇩 Andorra $4
161 🇸🇸 South Sudan $4
162 🇧🇿 Belize $4
163 🇧🇹 Bhutan $3
164 🇨🇫 Central African
Republic
$3
165 🇨🇻 Cabo Verde $3
166 🇬🇲 The Gambia $3
167 🇱🇨 Saint Lucia $3
168 🇱🇸 Lesotho $2
169 🇦🇬 Antigua
& Barbuda
$2
170 🇬🇼 Guinea-Bissau $2
171 🇸🇨 Seychelles $2
172 🇹🇱 Timor-Leste $2
173 🇸🇲 San Marino $2
174 🇸🇧 Solomon Islands $2
175 🇰🇲 Comoros $2
176 🇬🇩 Grenada $1
177 🇻🇺 Vanuatu $1
178 🇻🇨 Saint Vincent
& the Grenadines
$1
179 🇼🇸 Samoa $1
180 🇰🇳 Saint Kitts
& Nevis
$1
181 🇸🇹 São Tomé
& Príncipe
$1
182 🇩🇲 Dominica $1
183 🇹🇴 Tonga $1
184 🇫🇲 Micronesia $1
185 🇵🇼 Palau $0.3
186 🇰🇮 Kiribati $0.3
187 🇲🇭 Marshall Islands $0.3
188 🇳🇷 Nauru $0.2
189 🇹🇻 Tuvalu $0.1

Note: Data missing for Afghanistan, Eritrea, Lebanon, Pakistan, Sri Lanka, Syria, and Palestine.

If we skip the next three economies—Germany, India, and Japan—then the entire rest of the world (184 countries), also has an economic output of around $50 trillion.

Which means that despite the rise of regional trade, there is no escaping one of the two economic giants.

Groups 2025 GDP
(in Millions)
🇺🇸 U.S. & 🇨🇳 China $49,739
🌐 184 Countries $50,381
🇩🇪 Germany, 🇮🇳 India, 🇯🇵 Japan $13,118

Note: Figures are rounded to the closest trillion in the visualization. China’s figures do not include Hong Kong or Macao.

The U.S. is the world’s largest importer of consumer goods, and China is the largest exporter. Most of the world picks one of these two as their largest trading partner.

So even when countries might not enjoy the geopolitics of both countries, their economic might effectively makes them the loudest voice in the room.

Want more fun comparison maps? Check out: Germany’s Economy Equals 22 Other European Countries Combined for regional-specific breakdowns.

Tyler Durden
Mon, 06/02/2025 – 04:15

Will Russia’s Military Build-Up Along The Finnish Border Likely Be The New Normal?

Will Russia’s Military Build-Up Along The Finnish Border Likely Be The New Normal?

Authored by Andrew Korybko via Substack,

This is a predictable response to Finland’s unnecessary and highly provocative decision to join NATO…

The New York Times (NYT) recently published an article about how “Russia Beefs Up Bases Near Finland’s Border”, which relied on satellite imagery to reach that conclusion. Russia’s northern military build-up is portrayed as ominous in their piece, with speculation abounding about its post-Ukraine plans among those who they interviewed. To their credit, the NYT’s authors did reference Russia’s perceptions about NATO expansion, but they didn’t take them to their logical conclusion with regard to Finland.

No mention is made about how unnecessary its decision to join NATO was. Prior to that, Finland was already a so-called “shadow member” of NATO in the sense of having closely integrated with the bloc and practically obtained interoperability with its forces after years of joint training. Nevertheless, it didn’t have Article 5 mutual defense guarantees, but they objectively weren’t needed since there was never any credible scenario where Russia would launch an unprovoked attack or all-out invasion of Finland.

Shortly after the special operation began over three years ago, Finland’s liberal-globalist elite fearmongered that their country might be next after Ukraine, which was the false pretext upon which they reversed their decades-long stance towards formal NATO membership. Far from joining out of sincere concerns for their security, they did so solely to expand NATO’s border with Russia, which could then be presented as a symbolic Western victory no matter the outcome of this ongoing proxy war.

Here are three background briefings about this to bring unaware readers up to speed:

* 8 February 2024: “Finland Is Opening Up NATO’s Arctic Containment Front Against Russia”

* 25 May 2024: “A New Iron Curtain Is Being Built From The Arctic To Central Europe”

* 1 October 2024: “Don’t Forget About How NATO’s Northeastern Flank Can Stir Up A Lot Of Trouble For Russia”

They’ll now be summarized and placed in the larger geostrategic context of the New Cold War.

In short, Finland’s NATO membership enables the bloc to divert a portion of Russia’s forces from other fronts like the Ukrainian one while also expanding the West’s capabilities to project force into Russia, thus making it a highly strategic but also extremely dangerous move. The new Iron Curtain that’s descending upon the region upon linking together Finland’s newly strengthened border defenses, the “Baltic Defence Line”, and Poland’s “East Shield” will guarantee that post-Ukrainian tensions persist.

Even in the scenario of the nascent Russian–US “New Détente” evolving into a full-fledged strategic partnership built upon resource cooperation like joint Arctic projects of the sort that Moscow has proposed, NATO’s European members could still unilaterally threaten Russia via these means. In other words, the same strategy that the prior US administration sought to employ against Russia could be used by its nominal allies to provoke a crisis for complicating the new one’s ties with Russia, which is ironic.

That said, the likelihood of this being attempted – let alone succeeding – would be greatly reduced if the aforesaid “New Détente” enters into force since the US might simply refuse to extend Article 5 mutual defense guarantees to any of its “rogue allies” that stir up trouble along this front, thus deterring them. That said, the possibility always remains that a future US administration isn’t so friendly towards Russia or “decouples” from it on whatever pretext, so Russia can’t ever let its guard down from here on out.

Tyler Durden
Mon, 06/02/2025 – 03:30

These Are The World’s Biggest Shadow Economies

These Are The World’s Biggest Shadow Economies

The world’s $12.5 trillion informal economy covers nearly every corner of the world, seeing the highest concentration in emerging economies.

Yet in absolute terms, China, the U.S. and India are home to the largest black markets—covering everything from street vendors to illegal activities that evade governmental oversight. Overall, this generates lower tax revenue and poorer working conditions given the absence of worker protections, leaving millions exposed to poor working conditions.

This graphic, via Visual Capitalist’s Dorothy Neufeld, shows the largest shadow economies in the world, based on data from the EY Global Shadow Economy Report 2025.

Measuring the Informal Economy

While measuring the size of show economy activity is challenging, Ernst & Young used more than 70 variables to analyze unobserved economic activities in a country.

Primarily, a currency demand approach was used to examine cash use patterns across 131 jurisdictions covering 97.2% of world GDP. This is largely due to the informal economy driving significant demand for cash, especially high-denomination bills.

China’s Informal Economy is the World’s Largest

Since 2004, workers employed in China’s informal economy have nearly doubled, reaching approximately 200 million.

Driving this trend are jobs are found in the labor-intensive services sector, such as drivers, nannies, and roadside repairmen. As a result, China’s income tax revenue accounts for about 6% of GDP—far lower than the 24% OECD average.

Ranking in second is the U.S. shadow economy, valued at $1.4 trillion. Overall, states with lower real GDP and higher regulatory burdens tend to have more active underground economies.

Meanwhile, Brazil leads in Latin America, with a shadow economy valued at $448 billion. In Europe, Germany is home to the largest at $308 billion, equal to 6.8% of GDP.

To learn more about this topic from a country-based perspective, check out this graphic on the size of the shadow economy by country.

Tyler Durden
Mon, 06/02/2025 – 02:45

British Voters Lash Out

British Voters Lash Out

Authored by Jake Scott via The Foundation for Economic Education (FEE),

In the United Kingdom, a mini political earthquake has thrown everything up into the air.

At the beginning of May, several local councils held elections for the county, allowing voters a say in how their local services are managed—bin collection, potholes being filled in, local development plans, etc.

These elections are not, therefore, the most decisive electoral events of the calendar. But politically, they can be used to send a message, and that is certainly what happened this time.

Often seen as a chance for voters to express their discontent, local elections can be taken as a test of the current government’s performance, and this is one they definitively failed. Reform UK, the populist-right party led by Nigel Farage, won 677 wards out of 1,632, and took control of ten county councils, including County Durham, a Labour stronghold for 100 years.

Because of their political relevance, but limited national impact, local elections that go against the government can often be hand-waved as protest votes, expressing general discontent with the status quo. On this occasion, doing so would be a serious mistake, for two reasons.

First, the Labour Party, as the current government, did not expect to do well due to the country’s broad dissatisfaction with the economy, high levels of immigration, and climbing costs of living. But it was the Conservatives who suffered the most, having previously held more councils before the elections, and the electorate still has not “forgiven them” since they were voted out in the national elections of July 2024. Indeed, they were the real losers of this round, losing about the same number of wards as Reform gained.

Second, the victories of Reform in the locals, especially in the Midlands and the North East, track with consistent regional patterns that suggest this is truly not a flash in the pan. As I have been pointing out for a while now, Reform’s core areas of support seem to be in the Midlands, North East, and East Anglia, though they are also now breaking through in Kent. Indeed, Reform also won the byelection in Runcorn by six votes, coming from a standing start to take a Labour stronghold.

Meanwhile, YouGov’s first poll after the locals put Reform in the lead on 29 percent, a full 7 percent points ahead of Labour in second place. A national bump after a successful performance in the local elections is to be expected, but this is a serious shift, if it materializes. It may be the case that people who support Reform, but won’t say so publicly out of fear of being judged for it—the “Shy Reformers”—are now emboldened by the success of the party, and no longer shy about supporting them. A similar phenomenon occurred in 2015, when the Conservatives won a majority despite the polls suggesting otherwise.

Reform’s support comes largely from its opposition to mass migration, with leader Farage declaring in April that a Reform government would create a “Minister for Deportations” in the Home Office—which is about the only real concrete policy that the party has put forward. But in this proposal, and in response to the local victories, we can discern Reform’s economic agenda, and it’s one not far from President Trump’s.

In relation to the “Deportations Minister,” Farage stated that “we will need to recruit new people, as the evidence at the moment suggests those who work in the Home Office would willfully obstruct policy if we won the next general election.”

Such comments are reminiscent of Trump’s rhetoric regarding the Deep State, the fear that an obstructive civil service will sabotage any real measures being implemented. Often disregarded as a “conspiracy theory,” there is nevertheless a perception that the “will of the people” is obstructed by independent and unelected officials with their own agendas, contrary to the electorally victorious.

Coming from Farage, it indicates a distrust of the established civil service, and a desire either to strip it back, or to dislodge and replace any servants who are not “on-side.” This would suggest a preference for a minimalist state, but one that is still active in key policy areas.

Such a stance seems to be confirmed by Chairman Zia Yusuf’s statements following the local elections on what Reform plans to do in each council. Talking to the BBC’s Laura Kuenssberg, Yusuf said that Reform “will cut waste” principally by sending “teams in, taskforces; we will be opening up applications soon.” In a move reminiscent of DOGE’s strategy, of sending small teams into each agency and demanding audits, Reform is clearly hoping to bring public spending under control. Meanwhile, Dame Andrea Jenkyns—formerly of the Conservative Party, and now Reform Mayor for Lincolnshire—has set the goal of cutting departments by 10 percent.

Economically then, Reform’s government strategy seems attractive, and this may well bear fruit at the national level, but the obstacle at the local level is remarkably simple: it doesn’t have that much autonomy.

As I say above, councils are not that significant, but where their spending is directed is pretty tightly controlled. For example, as much as 60 percent of local councils’ budgets are dedicated to social care, a statutory obligation determined by the central government in Westminster, so other services must be the first to be cut. And since these are the issues that residents notice daily—road maintenance, bin collection, bus services, etc.—it can be electorally difficult to cut those without losing support.

Reform’s strategy might, therefore, be a necessary one, but the capacity to implement it at the local level is likely to be a struggle, and one that they may not succeed in.

Tyler Durden
Mon, 06/02/2025 – 02:00