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“Great Strategic Importance” – Bitcoin Rallies As Trump Signs ‘Sovereign Wealth Fund” Executive Order

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“Great Strategic Importance” – Bitcoin Rallies As Trump Signs ‘Sovereign Wealth Fund” Executive Order

With Secretary of State Marco Rubio setting in El Salvador (perhaps the most bitcoin-friendly nation in the world currently), and President Trump’s crypto ‘tzar’ David Sacks’ recent comments on the importance of outpacing China on the tech (crypto and AI) front, one could be forgiven for anticipating something large coming very soon with regard the possibility of a Strategic Bitcoin Reserve.

And sure enough, this morning,  President Trump signed an executive action he said would direct officials to create a sovereign wealth fund for the US, following through on an idea he floated during the presidential campaign.

“We have tremendous potential,” Trump told reporters in the Oval Office on Monday as he announced the move.

The president said the action would charge Treasury Secretary Scott Bessent and Howard Lutnick, the nominee for Commerce secretary, with spearheading the effort.

Bessent, who joined Trump at the Oval Office, said the fund would be created in the next 12 months, calling it an issue “of great strategic importance.”

Lutnick suggested the fund could be used to facilitate the sale of TikTok, which is currently operating in the US thanks to an extension signed by Trump prolonging the deadline for a forced sale or shutdown.

While few details are known, we do note that bitcoin rallied into this news…

The text of the document Trump signed was not immediately available, and it’s unclear how the wealth fund – which Trump pledged on the campaign trail would be “the greatest sovereign wealth fund of them all” – would be funded.

Trump floated the idea during an address at the Economic Club of New York during the campaign in September, where he proposed funneling money from tariffs into a wealth fund that could invest in manufacturing hubs, defense and medical research.

“We will create America’s own sovereign wealth fund to invest in great national endeavors for the benefit of all the American people,” Trump said at the time and suggested that the Wall Street and corporate leaders at that event could have a role to play, helping to “advise and recommend investments.”

Will Trump buy Greenland with this fund?

Tyler Durden
Mon, 02/03/2025 – 13:05

“It’s Sh*t Anyways”: Canadians Swear Off U.S. Beer And Liquor Amidst Burgeoning Trade War

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“It’s Sh*t Anyways”: Canadians Swear Off U.S. Beer And Liquor Amidst Burgeoning Trade War

In response to President Trump’s new tariffs, British Columbia will ban alcohol sales from Republican-led U.S. states, while two other Canadian provinces plan to remove all American alcohol from stores, , according to the New York Post.

BC’s state-owned liquor stores will stop selling alcohol from red states ahead of Trump’s 25% tariff on Canadian goods, with existing stock pulled from shelves, per the CBC.

BC Premier David Eby said: “President Trump’s 25% tariffs are a complete betrayal of the historic bond between our countries and a declaration of economic war against a trusted ally.”

“As British Columbians, and as Canadians, we will stand strong and united in the face of this unprecedented attack,” he continued.

The New York Post wrote that Nova Scotia and Ontario will join British Columbia in banning American alcohol at state-run liquor stores starting Tuesday, targeting all U.S. states rather than just Republican-led ones.

State-controlled liquor stores dominate nearly half of BC’s alcohol market, with U.S. alcohol sales there worth nearly $1 billion annually, according to The Daily Beast.

The bans came just hours after Trump signed an executive order imposing steep tariffs—25% on most Canadian and Mexican imports and 10% on energy resources from Canada and Chinese products.

Trump defended the tariffs as a response to illegal immigration and fentanyl trafficking, which the White House claims have caused “tens of millions” of American deaths. Canadian Prime Minister Justin Trudeau called the move “a threat targeting the entire country” and vowed retaliatory tariffs on $155 billion worth of U.S. goods, including alcohol, food, and clothing.

Some Canadian politicians welcomed the ban, happy to see American booze “go down the drain.”

Canadian MP Charlie Angus added on social media: “From here on in I will only drink ‘freedom’ wines from Canada, France or Spain. As for the beer? It’s sh*t anyways.”

Tyler Durden
Mon, 02/03/2025 – 12:45

Bill Kristol Admits The Quiet Part Out Loud: “The Deep State Is Far Preferable To The Trump State”

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Bill Kristol Admits The Quiet Part Out Loud: “The Deep State Is Far Preferable To The Trump State”

Authored by Steve Watson via Modernity.news,

Trump obsessed neocon Bill Kristol fired off a tweet declaring that he’d rather see the Deep State running America than President Trump, and thanks to respondents on X it quickly became apparent why he feels that’s the case.

Here’s Kristol’s post:

Obviously a real conservative would never say something like that.

Indeed, it seems Kristol would rather have a corrupt globalist shadow organisation running the show than Trump because his pockets are in danger of being de-lined.

He’s saying the quiet part out loud.

The bad news for Billy is that Elon Musk and DOGE are all over this kind of thing now.

On Friday, DOGE was provided access to the federal payment system by Treasury Secretary Scott Bessent, giving Musk’s team unprecedented new access to monitor and limit government spending.

The New York Times reported that there was initial resistance, with the highest ranking Treasury official, David A Lebryk opposing giving Musk’s team access. Lebryk was quickly placed on leave and then resigned on Friday.

Musk then started to expose what has been going on behind closed doors.

Their house of cards is coming crashing down.

Elon has to be their number one nemesis now.

It’s over for the likes of Kristol and his buddies.

*  *  *

Your support is crucial in helping us defeat mass censorship. Please consider donating via Locals or check out our unique merch. Follow us on X @ModernityNews.

Tyler Durden
Mon, 02/03/2025 – 12:25

Euro Slides After Report Trump Considering 10% EU Tariff

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Euro Slides After Report Trump Considering 10% EU Tariff

The trade war with Mexico may be over almost as fast as it started but a far bigger battle may be about to break out.

According to the Telegraph, Donald Trump is considering plans to impose a 10% tariff on the EU, a move which would “would pour fuel on the blooming global trade war which began on Saturday when the new US president slapped sweeping levies on goods imported from Mexico, Canada and China.”

The newspaper adds that according to a source close to Trump’s administration there is not broad agreement “but some want to put a 10 per cent tariff on the EU”. “They’re talking about doing it on all imports from the EU.”

A second source told The Telegraph: “Trump is testing the water with Canada and Mexico and what he can get away with.”

Speaking as he returned to Washington from his Mar-a-Lago estate in Florida on Sunday, Trump said tariffs on the EU “will definitely happen”.

“I can tell you that, because they’ve really taken advantage of us – you know, we have [an] over $300 billion (£241.5 billion|) deficit,” he added.

“They don’t take our cars, they don’t take our farm products. They take almost nothing, and we take everything: from the millions of cars, tremendous amounts of food and farm products.”

In response, EU policymakers could hit various US imports with duties of 50% or more if Mr Trump goes ahead with his plans for tariffs, the Financial Times reported. On Sunday, Trump also warned that the UK is “out of line” in its trade with the US but suggested the imbalance could be “worked out”.

Asked if any issues could be ironed out, Mr Trump said Sir Keir has “been very nice”. He added: “We’ve had a couple of meetings. We’ve had numerous phone calls. We’re getting along very well.”

Facing the threat of fresh tariffs, Olaf Scholz, the German chancellor said on Monday that Europe “can react to tariff policies with tariff policies”.

During his first term, Trump imposed a 25% tariff on steel imports and 10pc on aluminium from the European Union (EU). The bloc responded in 2018 by placing levies on US goods including whiskey, motorcycles and denim. The bloc responded in 2018 by placing levies on US goods including whiskey, motorcycles and denim.

In response to the Telegraph report, which is just the first of many such notices of more tariffs, the euro skid, and has almost completely reversed its earlier gains following news that US trade war with Mexico is effectively over.

That said, trade wars with Canada and China remain and it looks like Europe is about to be thrown in the mix.

Tyler Durden
Mon, 02/03/2025 – 12:10

USAID Absorbed Into State Department Under Rubio After DOGE Crusade

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USAID Absorbed Into State Department Under Rubio After DOGE Crusade

Update (1210ET):

“USAID will be merged into the State Department with cuts in the workforce, but it will remain a humanitarian aid entity, sources told @saraecook and me. Trump admin expected to announce the moves in coming days. Discussions of reductions in funding were still fluid today,” CBS News senior White House reporter Jennifer Jacobs wrote on X. 

Over the last several days, the Trump administration’s move to strip USAID of its independence and be rolled into the State Department has been well-telegraphed with leaks and reports via media outlets. 

As we noted earlier:

If USAID is rolled into the State Department, Marco Rubio will ensure grant scrutiny, preventing taxpayer funds from being stuffed into the coffers of the Deep State. And this will ultimately mark a historic shift in America’s role in the world. 

All USAID lacked was grant distribution oversight, turning the agency into a Deep State slush fund. Not anymore, under Rubio at State.

*   *   * 

About one day after the US Agency for International Development’s website went dark and its official X account disappeared, President Donald Trump addressed reporters Sunday night, declaring, “It’s been run by a bunch of radical lunatics. And we’re getting them out.” 

By midnight, Elon Musk—who oversees the government efficiency initiative “DOGE”—provided taxpayers with an update on USAID’s status during a live X Spaces session. 

Musk told the more than 682,000 listeners who tuned in that the president “agreed we should shut it [USAID] down.” This would be one of the largest planned cuts to date, and the fate of USAID is likely that it will lose its independence and be rolled into the State Department.

“As we dug into USAID it became apparent that what we have here is not an apple with a worm in it, but we have actually just a ball of worms. If you have an apple with a worm in it, you can take the worm out. If you have a whole ball of worms, it’s hopeless. USAID is a ball of worms. There is no apple. And when there is no apple you just need to get rid of the whole thing. That’s why it’s got to go. It’s beyond repair,” Musk explained. 

Musk wrote on X, “USAID is a criminal organization. Time for it to die.” 

The move to end USAID as a stand-alone agency comes as the DOGE creator revealed: “Did you know that USAID, using YOUR tax dollars, funded bioweapon research, including COVID-19, that killed millions of people?” 

AP noted:

Musk’s comments come after the administration placed two top security chiefs at USAID on leave after they refused to turn over classified material in restricted areas to Musk’s government-inspection teams, a current and a former US official told The Associated Press on Sunday.

Members of Musk’s Department of Government Efficiency, known as DOGE, eventually did gain access Saturday to the aid agency’s classified information, which includes intelligence reports, the former official said.

Trump has already ordered a freeze on foreign aid as part of his “America First” foreign policy. As some note, USAID has effectively served as a laundering scheme for the Deep State.

Journalist Robby Starbuck provided further color: 

“Like I said before, USAID is a front for the CIA.  And together with NGO’s like the Open Society Foundation, they have been using US tax dollars & govt resources as their personal piggy bank. It has been infuriating to watch. Hopefully now the whole truth will come out,” journalist Lara Logan wrote on X. 

Musk’s involvement with DOGE suggests that the rapid counteroffensive against the Deep State is underway. What likely happened with USAID is a precision-guided strike aimed at severing the Deep State’s key funding source. Always follow the money—neutralizing the Deep State’s ability to launder taxpayer funds is a good start.

Musk was also joined by DOGE co-leader Vivek Ramaswamy and Sen. Joni Ernst (R-Iowa) on X Spaces. Ramaswamy noted:

If USAID is rolled into the State Department, Marco Rubio will ensure grant scrutiny, preventing taxpayer funds from being stuffed into the coffers of the Deep State. And this will ultimately mark a historic shift in America’s role in the world. 

Tyler Durden
Mon, 02/03/2025 – 12:10

Canada’s Auto Industry Faces Shutdown Threat Amid Tariff Shock

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Canada’s Auto Industry Faces Shutdown Threat Amid Tariff Shock

“The auto sector is going to shut down within a week,” said Flavio Volpe, president of Canada’s Automotive Parts Manufacturers’ Association, who Bloomberg quoted about the weekend tariff shock announced by the Trump administration: A 25% tariff on imported goods from Mexico and Canada, with energy imports from Canada facing only a 10% tariff, and a 10% tariff on imports from China. 

Volpe warned that 25% tariffs, which go into effect at 12:01 am on Tuesday, will mean “absolutely nobody in our business is profitable by a long shot.” 

A report from AlixPartners shows the tariff impact will be on about a quarter of the 16 million vehicles sold nationwide, along with parts and components that go into them. The firm said the US import market, valued at $225 billion, would see a $60 billion surge in costs—burdens ultimately passed on to consumers.

Bloomberg cited data from RBC that showed that General Motors, Ford, and Stellantis would sustain the largest earnings hit if the tariffs were prolonged. 

Source: Bloomberg

Shares of General Motors, Ford, and Stellantis were down 7.3%, 4.5%, and 5%, respectively, in premarket trading in New York. 

Wolfe Research analysts estimated that prolonged tariffs could increase new car prices by $3,000. Vehicles with the highest exposure to production and components sourced from Mexico and Canada would face the steepest price bumps. 

“It is going to be a lot of impact,” Aruna Anand, CEO of parts supplier Continental AG’s North American business, told Bloomberg. 

Anand asked, “The question is who is absorbing the price and it becomes, are we able to absorb that price or is it going to be shifted to the end consumer?”

GM is the king of auto production in Mexico, followed by Nissan, VW, Stellantis, Ford, Kia, and Toyota. These automakers will face the steepest vehicle price increases if they pass the costs on to consumers.

Source: Bloomberg

Michael Robinet, vice president of forecast strategy for S&P Global Mobility, warned that automakers would cut production once tariffs go into effect: “Automakers and suppliers would hold off on building high tariff products. We expect production and sales would go down.”

There are concerns that the tariffs could cause a recession in Canada and Mexico. 

Goldman’s Dan Dooling (EMEA Head of FX HF Sales) provided clients with a great summary of the trade situation unfolding from Saturday:

  • Weekend Trump tariff announcements a surprise vs Friday’s close

  • US effective tariff rate rises +7% from from Mexico & Canada proposals with a further 1% from China proposals

  • 2.5% GDP hit in Canada, 3.5% in Mexico under full 25% tariff

  • The 25% Canada and Mexico tariffs imply a 0.7% increase in US core PCE prices and 0.4% hit to GDP (US econ team had 0.3% core pce boost in their baseline)

In case you’re wondering, Cars.com’s ‘Most American Cars 2024’ list:

See this: “Huge Shock” On Wall Street After Trump’s Trade War: Goldman Hopes Tariffs “Short Lived” While Deutsche Warns Of Doomsday.

Tyler Durden
Mon, 02/03/2025 – 12:05

Trump To Suspend Funding To South Africa Over Land Expropriation

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Trump To Suspend Funding To South Africa Over Land Expropriation

Authored by Aldgra Fredly via The Epoch Times,

President Donald Trump said on Sunday that he would suspend future U.S. funding to South Africa in response to the country’s new controversial expropriation law, which allows land seizures by the state.

In a Truth Social post, Trump accused South Africa of seizing land and “treating certain classes of people very badly.”

“It is a bad situation that the Radical Left Media doesn’t want to so much as mention,” the president stated.

“A massive Human Rights violation, at a minimum, is happening for all to see. The United States won’t stand for it, we will act.”

South African President Cyril Ramaphosa signed a bill into law on Jan. 23 that allows provincial and national authorities to “expropriate land in the public interest” for various reasons, “subject to just and equitable compensation being paid.”

The expropriation law aims to address racial disparities in land ownership. 30 years after the apartheid system was abandoned, most farmland remains owned by white people.

Some members of the coalition government question the constitutionality of the law and have indicated they may challenge it in court.

The government notes that special conditions have to be met before expropriating land such as it having longtime informal occupants, being unused and held purely for speculation, or being abandoned.

“We look forward to engaging with the Trump administration over our land reform policy and issues of bilateral interest. We are certain that out of those engagements, we will share a better and common understanding over these matters,” Ramaphosa said in a statement issued by the presidency on Monday.

“South Africa is a constitutional democracy that is deeply rooted in the rule of law, justice and equality. The South African government has not confiscated any land.”

Ramaphosa’s office stated that reasons for expropriating land can include promoting inclusivity and allowing access to natural resources. The bill would repeal the nation’s Expropriation Act of 1975, which required the state to compensate owners for the land it sought to seize.

“In terms of this law, an expropriating authority may not expropriate property arbitrarily or for a purpose other than a public purpose or in the public interest,” his office stated.

South Africa’s Democratic Alliance leader John Steenhuisen said in a Jan. 25 statement that he strongly objects to Ramaphosa’s signing of the bill, saying it ignored legal opinion “that the Act is unconstitutional.”

The Democratic Alliance joined a coalition led by Ramaphosa’s African National Congress (ANC) after the 2024 election resulted in a political deadlock. Steenhuisen said that his party will invoke clause 19 of the coalition agreement to seek “an urgent reset in relations.”

“We won over 3.5 million votes and we are in the government to represent our voters and to rescue South Africa,” he said.

“If we cannot fulfil this mandate inside the [Government of National Unity], we will have to seriously consider our next steps.”

Trump said that funding to South Africa will be cut until a full investigation into the situation is completed.

South Africa’s foreign ministry said that it hopes Trump’s advisers will make use of the investigative period to “attain a thorough understanding of South Africa’s policies within the framework of a constitutional democracy.”

“This approach will promote a well-informed viewpoint that values and recognizes our nation’s dedication to democratic ideals and governance,” the ministry said in a statement. 

“It may become clear that our expropriation act is not exceptional, as many countries have similar legislation.”

The United States provided nearly $440 million in foreign aid to South Africa in 2023, according to government data. After taking office on Jan. 20, Trump announced a 90-day freeze on all foreign aid while a review of those programs was ongoing.

The State Department issued a waiver on Jan. 29 for humanitarian aid, including “life-saving medicine, medical services, food, shelter, and subsistence assistance, as well as supplies and reasonable administrative costs as necessary to deliver such assistance.”

Ramaphosa said except for the President’s Emergency Plan for AIDS Relief (PEPFAR), which constitutes 17% of South Africa’s HIV/Aids program, there was no other significant funding provided by the United States.

Tyler Durden
Mon, 02/03/2025 – 11:45

Ontario Rips Up $100 Million Starlink Contract In Response To Trump’s Trade War Chaos

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Ontario Rips Up $100 Million Starlink Contract In Response To Trump’s Trade War Chaos

Premier Doug Ford of Ontario’s Progressive Conservative Party announced on X that, in response to President Trump’s escalating trade war—including a 25% tariff on Canadian goods—the provincial government would be “ripping up” its contract with Elon Musk’s Starlink, which was set to provide high-speed internet to rural communities.

Ford’s statement on X:

Starting today and until U.S. tariffs are removed, Ontario is banning American companies from provincial contracts. Every year, the Ontario government and its agencies spend $30 billion on procurement, alongside our $200 billion plan to build Ontario. U.S.-based businesses will now lose out on tens of billions of dollars in new revenues. They only have President Trump to blame. We’re going one step further. We’ll be ripping up the province’s contract with Starlink. Ontario won’t do business with people hellbent on destroying our economy. Canada didn’t start this fight with the U.S., but you better believe we’re ready to win it.

One X user asked Ford a very good question: “Does that mean you’re dropping Amazon AWS, Google Cloud, Microsoft Azure or Oracle?” 

The Starlink contract with the gov’t of Ontario was announced in late 2024 and would bring high-speed internet to thousands of homes in remote and rural communities across the region.

Back to snail-slow internet… 

Latest on the weekend trade war shock:

It begins. 

Tyler Durden
Mon, 02/03/2025 – 09:35

Putin: Trump Will Restore Order; Elites Will “Stand At The Master’s Feet And Gently Wag Their Tails”

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Putin: Trump Will Restore Order; Elites Will “Stand At The Master’s Feet And Gently Wag Their Tails”

Authored by Steve Watson via Modernity.news,

Russian leader Vladimir Putin has commented on President Trump’s first weeks in office and the effect it will have on Europe, declaring that political elites will fall into line at Trump’s feet.

In an interview with Russia Today, Putin stated “Nothing has changed. They were happy to carry out any order from Washington under Biden.”

“They just don’t like Trump,” he continued, adding “They forgot him actively, really interfered in political life, in the election process of the United States. And then they were confused when Trump suddenly won.”

Putin further declares that the political elite in Europe “mentally liked Biden more,”

“But Trump has better ideas about what is good, what is bad, including in gender policy, in some other issues, they kind of don’t like it,” the Russian president asserted.

“But I assure you, Trump with his character, persistence, he will restore order pretty quickly,” Putin stated, adding “And all of them, you’ll see, it will happen quickly, soon, all of them will stand at the master’s feet and gently wag their tails.”

Trump stated over the weekend that he “absolutely” intends to place tariffs on EU countries where he sees fit.

The comments also come after Putin and Trump reportedly spoke about ending the conflict in Ukraine, with Trump adamant that Ukrainian President Zelenskyy is ready to make a deal.

* * *

Your support is crucial in helping us defeat mass censorship. Please consider donating via Locals or check out our unique merch. Follow us on X @ModernityNews.

Tyler Durden
Mon, 02/03/2025 – 09:15

Musk On DOGE Cuts: “USAID A Ball Of Worms, No Apple. Must Get Rid Of Whole Thing”

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Musk On DOGE Cuts: “USAID A Ball Of Worms, No Apple. Must Get Rid Of Whole Thing”

About one day after the US Agency for International Development’s website went dark and its official X account disappeared, President Donald Trump addressed reporters Sunday night, declaring, “It’s been run by a bunch of radical lunatics. And we’re getting them out.” 

By midnight, Elon Musk—who oversees the government efficiency initiative “DOGE”—provided taxpayers with an update on USAID’s status during a live X Spaces session. 

Musk told the more than 682,000 listeners who tuned in that the president “agreed we should shut it [USAID] down.” This would be one of the largest planned cuts to date, and the fate of USAID is likely that it will lose its independence and be rolled into the State Department.

“As we dug into USAID it became apparent that what we have here is not an apple with a worm in it, but we have actually just a ball of worms. If you have an apple with a worm in it, you can take the worm out. If you have a whole ball of worms, it’s hopeless. USAID is a ball of worms. There is no apple. And when there is no apple you just need to get rid of the whole thing. That’s why it’s got to go. It’s beyond repair,” Musk explained. 

Musk wrote on X, “USAID is a criminal organization. Time for it to die.” 

The move to end USAID as a stand-alone agency comes as the DOGE creator revealed: “Did you know that USAID, using YOUR tax dollars, funded bioweapon research, including COVID-19, that killed millions of people?” 

AP noted:

Musk’s comments come after the administration placed two top security chiefs at USAID on leave after they refused to turn over classified material in restricted areas to Musk’s government-inspection teams, a current and a former US official told The Associated Press on Sunday.

Members of Musk’s Department of Government Efficiency, known as DOGE, eventually did gain access Saturday to the aid agency’s classified information, which includes intelligence reports, the former official said.

Trump has already ordered a freeze on foreign aid as part of his “America First” foreign policy. As some note, USAID has effectively served as a laundering scheme for the Deep State.

Journalist Robby Starbuck provided further color: 

“Like I said before, USAID is a front for the CIA.  And together with NGO’s like the Open Society Foundation, they have been using US tax dollars & govt resources as their personal piggy bank. It has been infuriating to watch. Hopefully now the whole truth will come out,” journalist Lara Logan wrote on X. 

Musk’s involvement with DOGE suggests that the rapid counteroffensive against the Deep State is underway. What likely happened with USAID is a precision-guided strike aimed at severing the Deep State’s key funding source. Always follow the money—neutralizing the Deep State’s ability to launder taxpayer funds is a good start.

Musk was also joined by DOGE co-leader Vivek Ramaswamy and Sen. Joni Ernst (R-Iowa) on X Spaces. Ramaswamy noted:

If USAID is rolled into the State Department, Marco Rubio will ensure grant scrutiny, preventing taxpayer funds from being stuffed into the coffers of the Deep State. And this will ultimately mark a historic shift in America’s role in the world. 

Tyler Durden
Mon, 02/03/2025 – 08:55