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US Racing Against Time To Reclaim Supply Chain From China: Former Commerce Official

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US Racing Against Time To Reclaim Supply Chain From China: Former Commerce Official

Authored by Terri Wu and Jan Jekielek via The Epoch Times (emphasis ours),

A former Department of Commerce official recently urged American officials and the general public to adopt an elevated sense of urgency to address the threat of U.S. supply chain dependence on communist China.

An engineer checks a laser cutting machine, to be sold to automotive manufacturers for the production of new energy vehicles, at a facility in Wuhan, in China’s central Hubei province on June 12, 2023. STR/AFP via Getty Images

“We are running out of time. We really need to race to solve this,” Nazak Nikakhtar, former assistant secretary for Industry and Analysis during the first Trump administration, recently told EpochTV’s “American Thought Leaders,” adding that the problem had been neglected for “at least two decades.”

In her view, the issue stems from the deliberate strategic actions of the Chinese communist regime. She said that for many years, Beijing has engaged in unfair trade practices—often paying subsidiaries to flood the global market with cheap made-in-China products that others can’t compete with, thereby gaining control of an industry’s supply chain and moving on to undercut the next one.

Compared to China’s dominance in the production of steel, batteries, solar cells, and personal protective equipment—all of which the American public is aware of due to the tariffs imposed during the Trump and Biden administrations—China’s dominance in lab-grown industrial diamond production is equally critical yet lesser known.

These diamonds are essential for cutting tools—crucial for building, drilling, and manufacturing. The affected industries range from cars to aerospace and defense. According to the U.S. Geological Survey (USGS), China produces 95 percent of the world’s synthetic diamonds, and U.S. dependence on imports has fluctuated between 80 and 95 percent since 2018.

On Dec. 3, China’s ruling communist party banned the export of industrial diamonds to the United States, along with gallium, germanium, and antimony—materials critical for making semiconductors. The decision was announced a day after the United States added advanced semiconductor manufacturing equipment and software to its export controls to curb Beijing’s access to these critical elements for developing artificial intelligence.

Diamonds for Industrial Power

Also referred to as “super hard materials,” industrial diamonds are part of “Made in China 2025,” the Chinese communist regime’s ten-year industrial policy aimed at achieving dominance in advanced manufacturing worldwide.

Since 2012, the regime has classified the manufacturing of diamonds and related equipment as “strategic new sectors.” Central and local authorities developed policies that promoted these businesses and provided subsidies.

Although the specific amounts are unclear, sporadic Chinese media reports have revealed annual subsidies of between 10 million yuan ($1.3 million) and 50 million yuan ($6.8 million) per company.

“Imagine a U.S. economy with zero manufacturing,” Nikakhtar warned.

USGS data indicate that the nation lacks a stockpile of industrial diamonds, and in 2023, the estimated domestic production of the diamonds met only 16 percent of the total volume needed in the United States.

“It’s just time to wake up. China has made clear that it is moving in this direction. We’ve got to take them at their word,” she said. “China has already shown us through its recent export controls that it means business, and it really has the ability to hurt the U.S. economy.”

In the past eight decades, Congress has delegated extensive authority to the president to set tariff rates. A few laws allow America’s chief executive to use tariffs to set foreign policy and protect national security interests.

During Nikakhtar’s tenure with the Commerce Department’s Bureau of Industry and Analysis, President Donald Trump invoked Section 232 of the Trade Expansion Act of 1962 in March 2018 to impose a 25 percent tariff on steel and a 10 percent levy on aluminum from all countries except Canada and Mexico.

In October 2021, President Joe Biden reached an agreement with the European Union and the United Kingdom and replaced the tariffs with quotas in return for lifting the retaliatory tariffs on U.S. exports.

Trump also used Section 301 of the Trade Act of 1974 to impose tariffs on Chinese imports worth approximately $300 billion annually. The Biden administration kept all the duties and added more last year, following a review conducted every four years.

As Trump begins his second term, Nikakhtar stated that the new administration is “very confident in how they’ve utilized the novel laws in the past” and will continue leveraging available legal mechanisms to apply tariffs to correct market distortions caused by unfair trade practices.

Tyler Durden
Tue, 01/21/2025 – 19:55

Major US Firms Demand Suppliers Embrace “China + 1” Factory Strategy

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Major US Firms Demand Suppliers Embrace “China + 1” Factory Strategy

The Covid pandemic sparked a wave of global trade uncertainty, prompting US companies to reevaluate their complex supply chains centered in China by either friend-shoring, near-shoring, or re-shoring. This shift toward friend-shoring in Southeast Asia (ex-China) has positioned Thailand as a pivotal ally in Washington’s US-China decoupling strategy.

The ‘America First’ economic policy directed by President Trump will focus on, most importantly, re-shoring supply chains out of China and back to the US, followed by near-shoring and friend-shoring. Trump is also set to unleash tariffs on foreign goods as the US-China decoupling gathers pace. 

Focusing on friend-shoring trends, Goldman’s Allen Chang, Verena Jeng, and others hosted the “Make in Thailand Tour” last week.

 

During the visit to AI server liquid cooling, automotive electronics, electric vehicles, and other high-tech factories in the Southeast Asian country, Chang found a growing number of US companies are requiring suppliers to have not only Chinese factories but also a “plus one” location outside the world’s second-largest economy for diversification purposes. This has only sparked a boom in business activity in Thailand.

Chang’s first takeaway from the visit to nine factories in Thailand is that geopolitical tensions between US-China are the primary driver of business expansion: 

Companies shared that US clients started to mention “China + 1” (production sites outside of China) in 2018, turned more serious in 2022 during COVID with China under lockdown, and increased focus further in 2024 during the US elections. Companies shared some of their clients have stated that they will no longer accept suppliers (for new projects) without “China + 1” by end of 2025. We see geopolitical tensions as the major reason companies are diversifying production into Thailand.

Here are the other main takeaways driving Thailand’s expansion: 

  • Clusters across Southeast Asia: Companies shared there are different clusters across countries in Southeast Asia, and supply chain usually moves with clients to secure timely services. Other than the consideration of distance to the clients, there are different features across different countries as well. For example, Vietnam is closest to China supply chain and developed early; Thailand is open for foreign investment with solid infrastructure; Malaysia’s labours have higher education especially Penang where global-tier semiconductors leaders are developing the OSAT industry since 1970s.

  •  AI servers, PCs, Automotive, LEO satellites are expanding in Thailand: Companies shared that three industries are showing a clear trend of supply chain expansion in Thailand: (1) AI servers supply chain: Quanta announced in Aug 2024 plans to invest US$24m; Inventec announced in late 2023 plans to invest US$152m; Auras’ investment of US$49m to US$55m for the second factory in Thailand; ZDT’s investment of US$250m; Delton’s investment of US$180m; WTT’s investment of US$75m; (2) PC supply chain: Chicony’s investment of US$45m for the phase 2; (3) LEO satellites: Compeq’s investment of US$302m; (4) Automotive: companies shared about more Chinese car OEMs expanding to Thailand, e.g. BYD, Chery, Neta, Greatwall, Geely, etc., leading to supply chain expansion.

  • Lower labour costs, but lower efficiency as well: Companies shared direct labour compensation is around 20-50% lower compared to China, or at Rmb3,000 (US$410) per month; however, for those who speak Mandarin, the costs could be double. Besides, the efficiency is one-third of Chinese labor, and thus the cost is 10-20% higher than China. To reduce costs, most companies have automated production in Thailand, and leverage government support (e.g. tax benefits, tariff benefits, etc.).

  • Hiring is not difficult: Companies shared that hiring is not difficult in Thailand, as there is also labour from countries nearby, e.g. Myanmar. Besides, the working environment is good (new air-conditioned factories) with accommodation or shuttle bus provided, making it easier to attract labour. Some companies shared they received about 90 applications for 20 labour positions.

  • Training in China: To meet US clients’ needs, most factories we visited target to start mass production by mid 2025. To secure a smooth production ramp up, most companies sent local labour to their factories in mainland China for training, and then back to Thailand. Some companies also shared they have 70% Chinese labour in their Thailand factories currently to secure a smooth trial run to production. In general, it takes 12-18 months for factory construction in Thailand (slower than China given there’s rainy season in Thailand), 6 months for equipment set up, 6 months for local labour training in mainland China, leading to mass production target by mid 2025.

  • OEM, ODM / assemblers are closer to airports and ports: We see OEMs, ODM / assemblers factories are 40-60mins drive from airports / ports, while supply chain / component makers are 2-3 hours drive away from airports / ports, but within 1 hour drive to OEMs, ODM / assemblers. Those who invested earlier in Thailand, also enjoy closer distance to airports / ports. For example, Chicony’s Thailand factory dates back to 1989; Auras invested in Thailand in 2019; PI was also early in Thailand and moved to the inner lands to enjoy more tax benefits from the local government.

  • Competition from local peers: All companies we visited didn’t seem worried about local competitors given Technology is not the focus of Thailand (i.e., less students majoring in Electrical Engineering). The government is also open to foreign investment without requirement of forming JV with local peers or cultivating local peers. However, the government strongly encourages local production. For example, the government expects car assembly and components to be produced in Thailand, but not necessarily by Thailand companies.

  • Government policies are supportive: Most companies we visited enjoy 8-year tax free, and they see a stable environment for business operations, with supportive government policies, such as BOI (Board of Investment of Thailand: up to 16 years tax free, tariff free for equipment and raw material imports, funding support for R&D centers, etc.) and EEC (Eastern Economic Corridor: tax free, tariff free for equipment and raw material imports, flexibility in foreign currency outward remittance, etc.). Infrastructure (e.g. road quality) and utilities (electricity, water supply) are also efficient, with stable labour conditions (e.g. less labour strike, disruptions etc).

  • EV market in Thailand: Companies shared that the EV penetration rate in Thailand is around 13-14% (in 2024), or 80k units, which is the largest EV market in Southeast Asia, and the penetration rate could further go up in 2025-26E. The major EV brands in Thailand are all from China, with BYD enjoying 30%+ market share in Thailand’s EV market, followed by Neta at 20%, and other major brands including Changan, SAIC, etc. Companies shared China remains the strongest market for EV, considering the infrastructure (e.g. charging stations) in Thailand is not yet as comprehensive as China.

Major restructuring of supply chains has been underway since Trump’s first term as re-shoring, near-shoring, and friend-shoring trends will go into hyper-drive under Trump’s second term. 

In a separate note, Goldman Chief Economist Jan Hatzius, alongside Alec Phillips, David Mericle, and others, commented on Trump’s day one of office on Monday, calling the president’s tariff reveal “more benign than expected.” This was mainly because Trump did not comment on China’s tariff policy while negotiations appeared ongoing with Chinese President Xi Jinping. However, Trump directed his trade efforts toward Canada and Mexico, threatening a 25% on both countries by February. 

As for Thailand, it has become an integral part of the US friend-shoring strategy. The big takeaway comes from the Goldman note on US companies demanding suppliers have a plus one factory outside of China, providing tailwinds for Thailand.

Meanwhile, economic tailwinds have likely produced the next yachting boom for the wealthy residents of Thailand.

Tyler Durden
Tue, 01/21/2025 – 19:30

Trump Pardons Silk Road Founder Ross Ulbricht, Slams “Scum” That Worked To Convict Him

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Trump Pardons Silk Road Founder Ross Ulbricht, Slams “Scum” That Worked To Convict Him

Update (1900ET): Well it may not have been officially Day One but Trump kept his promise and just pardoned Silk Road founder Ross Ulbricht after he spent 11 years in jail.

In a statement on Truth Social, President Trump said:

“I just called the mother of Ross William Ulbricht to let her know that in honor of her and the Libertarian Movement, which supported me so strongly, it was my pleasure to have just signed a full and unconditional pardon of her son, Ross.

The scum that worked to convict him were some of the same lunatics who were involved in the modern day weaponization of government against me.

He was given two life sentences, plus 40 years. Ridiculous!“

Promise made. Promise kept…

Here was Ross back in May when Trump made the promise…

*  *  *

“Ross will be freed too.”

Those five words, posted by Elon Musk to his X account, sent the odds of a pardon for Silk Road founder Ross Ulbricht soaring to near certainty.

According to a contract on Polymarket, the odds of a Ulbricht pardon are now above 90%…

A petition calling for clemency for Ulbricht on freeross.org has gathered over 600,000 signatures since his incarceration.

The petition has garnered support from those who argue his life sentence is excessive and unjust, and from some bitcoiners that uphold Silk Road’s libertarian ideals.

As CoinDesk’s Sam Reynolds reports, Trump first promised to pardon Ulbricht during a campaign stop at the Libertarian National Convention last May.

“If you vote for me, on Day 1, I will commute the sentence of Ross Ulbricht to a sentence of time served,” Trump said during a speech last year.

“He’s already served 11 years, we’re gonna get him home.”

Ulbricht was sentenced to life in prison without the possibility of parole in 2015 for his role in the operation of the Silk Road marketplace, which pioneered the use of the dark web.

Supporters of Ulbricht say that his sentence was disproportionately long for the crime.

Elsewhere on the Polymarket pardon list is Roger Ver, an early bitcoin investor and bitcoin cash (BCH) advocate, who was indicted for tax fraud last April, and the market is giving a 32% chance of a pardon taking place in the first 100 days.

Despite crypto playing a prominent part of Trump’s campaign, Polymarket bettors are only giving a 43% of a crypto executive order, regarding the use, trading, or legal status of digital assets, happening in the first week.

Tyler Durden
Tue, 01/21/2025 – 19:20

Davos Shocker: Countries Around The World Eyeing Bitcoin Strategic Reserves Thanks To Trump

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Davos Shocker: Countries Around The World Eyeing Bitcoin Strategic Reserves Thanks To Trump

In a development once deemed unimaginable, Coinbase CEO Brian Armstrong revealed on Tuesday that finance ministers attending the 2025 World Economic Forum in Davos, Switzerland, are showing increasing interest in establishing their own Strategic Bitcoin Reserves. According to Armstrong, this growing momentum appears to be inspired by the United States’ consideration of a similar initiative.

ANDREW SORKIN: Take us inside the room. What was the feeling? We watched the crypto ball and everything also. There seems to be a full-on sea change in Washington about your world.

BRIAN ARMSTRONG:  It’s the dawn of the new day for crypto. The energy was palpable throughout the room. You have to remember the last four years we felt we were being attacked by the administration and they tried to weaponize the lack of clarity and the rules and push back on the good actors. There were bad actors, to be fair, but they were going after the good actors. We are ready for new rules.

ANDREW SORKIN: Did you expect an executive order yesterday? To the extent of Bitcoin prices is a signal of something.

BRIAN ARMSTRONG: It’s been one day. I’m not too worried.

ANDREW SORKIN: What is the executive order you are looking for?

BRIAN ARMSTRONG: Directing the agency of the U.S. government to collaborate and look to clear rules passed. That would allow capital to flow into the United States and startups to be built there. Rearticulating the bill of rights with the self-custodial wallets. That was a big issue in the past four years as well. Operation Chokepoint 2.0. Those were some of the things that can be done with executive orders, it will really take congress.

ANDREW SORKIN: Can I ask about the choke point 2.0? The question is do you believe people were being quote/unquote debanked because they owned crypto at all or debanked because they were seen at those banks as a risk of some sort to the bank?

BRIAN ARMSTRONG: I think what happened is that the regulators likely cajoled by people like Elizabeth Warren applied a soft pressure to the banks and said we have concerns about crypto. Vague statements. Risk-based statements. If you are a bank CEO, that is hard to do if the regulator comes in and says we’re uncomfortable with this. You say is it illegal? No, we’re uncomfortable. That soft pressure was unlawful in my view was happening.

ANDREW SORKIN: This became a commotion in the last 48 hours about crypto. What is your feeling about the Trump family involvement in crypto and President Trump put out a meme coin that was at some point worth tens of billions of dollars. Melania doing the same. There are some people inside crypto who are very critical of those decisions because they look like an enrichment of the president.

BRIAN ARMSTRONG: Look, I think anybody should be able to create a collectible or piece of artwork. There are lots of crypto commodities and hopefully securities in the future. These meme coins are something anybody should put out there. We don’t recommend one asset. We look at the standards and let the market decide.

ANDREW SORKIN: The concept of a memecoin. Is that good or bad for crypto? If enough people participate and lose, because more people lose than win, and the fact that the president of the United States and his family involved in the project, does that concern you?

BRIAN ARMSTRONG: A lot of technology looks like a toy. Think about the early internet and people were putting animated gifs and things with cats. It turned out to be much more important than that. You have to be cautious. With meme coins, it is not something I’m trading all the time. I’m not particularly interested in it. It could evolve into something powerful. You have to keep an open mind. I think everybody should have the right.

REBECCA QUICK: The disappointment that’s being read into the price of crypto today. It’s not down all that much. People are saying there’s disappointment because he didn’t enact on day one. If you look at crypto’s price since his election, bitcoin’s price since his election, it’s up almost 50%. I wonder how much of the positive news is baked into what you are seeing in the price of bitcoin? What you are seeing from here in terms of bitcoin’s growth or volatility that could come with that? A lot of the positive news is already recognized from the moment he was elected?

BRIAN ARMSTRONG: We have seen an incredible growth and it hit an all-time high yesterday. We feel very good about that. I think over time, bitcoin will get in the millions price range. It is adopted by more and more customers. ETF with the inflow. If we get clear legislation in the U.S. Strategic Bitcoin Reserve. If the U.S. started, the rest of the G20 would follow. I discussed with leaders from different countries around the world, they are getting more interested in it because the U.S. is looking into it.

Tyler Durden
Tue, 01/21/2025 – 18:40

Correcting Progressive Errors About Why Trump Won

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Correcting Progressive Errors About Why Trump Won

Authored by Peter Berkowitz via RealClearPolitics,

Today, in defiance of mighty odds, Donald Trump, the 45th president of the United States, took the oath of office to become the nation’s 47th president.

Illiberalism of the left proved a major factor in Trump’s close but clear victory over Vice President Kamala Harris and in progressive elites’ far-fetched rationalizations of Harris’ defeat.

Some Harris supporters, especially among the D.C. professional class, attribute Harris’ loss to Trump voters’ gullibility or malice. They say that America is thriving, crime is down, employment is low, and Biden passed major legislation to combat inflation and enhance America’s ability to compete with China. Therefore, only a public that fell for right-wing misinformation or backs Trump’s authoritarian dispositions could have elected him president. Among other things, this assessment overlooks that inflation, which surged during Biden’s presidency, battered working-class voters who form the core of Trump’s support, and that declining inflation does not mean that prices have returned to pre-inflation levels. It also underestimates the impact of lawless borders on middle-class and working-class voters. It avoids consideration of the consequences of mainstream-media gaslighting of Americans about Biden’s declining cognitive capabilities. And it ignores the electoral significance of Harris’ inability to distinguish herself from the Biden administration – known early on as the Biden-Harris administration – and to separate herself from the hard-left positions she took in 2019 in pursuit of her party’s presidential nomination and as a senator from, and attorney general of, California.

Other Harris supporters blame her loss on racism and sexism. They maintain that the American people’s bigotry foiled the election of an African-American woman to the highest office in the land. Well-known facts undercut this accusation. In 2008, then-Sen. Barack Obama defeated John McCain – a center-right, white war hero – to become the first black person elected president of the United States. Following his January 2009 inauguration, President Obama enjoyed sky-high approval ratings that cut across party lines. Obama coasted to reelection in 2012 against Mitt Romney – a center-right, white, former businessman and former Massachusetts governor. And former President Obama and his African-American wife, former first lady Michelle Obama, remain popular. Moreover, though losing to Trump in 2016 in the Electoral College, Hillary Clinton won the popular vote, demonstrating that a majority of Americans can prefer a woman in the White House.

In early January in the New York Times, James Carville took a crack at explaining Harris’ loss. He, too, offered an implausible, one-dimensional account.

In “James Carville: I Was Wrong About the 2024 Election. Here’s Why,” the veteran Democratic campaign advisor and longtime TV political commentator reasonably emphasized that “the most important thing for us now is to face that we were wrong and take action on the prevailing ‘why.’” But his “why” is a misleading cliché. A prominent figure in Bill Clinton’s successful 1992 presidential bid, Carville faulted Democrats in 2024 for neglecting a crucial truth associated with victory 32 years before: “We lost for one very simple reason: It was, it is, and it always will be the economy, stupid.”

Carville greatly oversimplifies. The economy is a major factor in elections. Yet other matters, including citizens’ sense of personal security and overall well-being and candidates’ positions on culture and foreign affairs, not only shape political preferences but also influence voters’ interpretation of economic performance. For example, voters’ assessment of higher taxes and painful tariffs during wartime differ from their view of these burdens in peacetime.

While Trump “decisively won by seizing a swath of middle-class and low-income voters focused on the economy,” according to Carville, it was, he contends, the stories that Republicans told about the economy – and that Democrats did not tell – that determined the outcome. “Democrats have flat-out lost the economic narrative,” writes Carville. “The only path to electoral salvation is to take it back. Perception is everything in politics, and a lot of Americans perceive us as out to lunch on the economy – not feeling their pain or caring too much about other things instead.” Accordingly, Carville instructs Democrats to “focus on revving up a transformed messaging machine for the new political paradigm we now find ourselves living in.” To better manage people’s perceptions, Democrats must devise a simple message and execute a disciplined, back-to-basics campaign – “Repetitive. Memorable. And entirely focused on the issues that affect Americans’ everyday lives.”

Instead of directing ire toward Trump the man, Carville wants Democratic messaging to target the Trump administration’s likely economic measures: tax cuts for the wealthy, tariffs, and major cuts to health care benefits. These, Carville is confident, will hurt ordinary voters.

He also calls on Democrats to develop their own policies. Implicitly recognizing that Trump tapped into genuine discontents, Carville counsels his party to go “on the offensive with a wildly popular and populist economic agenda” that Republicans cannot but oppose. That agenda should include raising the minimum wage, portraying the Supreme Court’s overturning of Roe v. Wade as an economic issue, and dividing the GOP by supporting immigration reform that encourages high-skilled and well-educated workers to come to America. And, Carville stresses, Democrats must aggressively employ “the new media paradigm” – podcasts, social media, and prominent influencers – to sell their policies.

Musa al-Gharbi sees matters very differently and accounts for Harris’ defeat far more convincingly. In “A Graveyard of Bad Election Narratives,” he criticizes progressive scholars’ and journalists’ propensity to find the source of Trump’s victory in red-state voters’ moral and intellectual failings. An assistant professor of communication, journalism and, by courtesy, sociology at Stony Brook University, the young scholar – no fan of Trump’s – corrects the record through careful consideration of publicly available data.

Al-Gharbi concentrates on “what wasn’t the problem” (emphasis in original) for Democrats. It wasn’t racism: Trump did worse with white voters this cycle than in 2020 and 2016; Harris did better with white voters – especially white men – than did Biden in 2020 and Clinton in 2016; and Trump improved his numbers significantly among non-white voters. It wasn’t sexism: While Trump received a share of the male vote similar to that of Nixon, Reagan, and both Bushes, he significantly increased his portion of the women’s vote. It wasn’t billionaires’ influence: Although Trump had Elon Musk and more than 50 other billionaires on his side, Harris had more than 80 billionaires on hers, raised much more money than Trump, and was preferred by the affluent. It wasn’t third parties: In the two states – Michigan and Wisconsin – where third parties received enough votes to make a difference, a majority of their votes had the third-party candidates not run probably would have gone to Trump. And the problem wasn’t voter turnout: Although down overall from 2020, most of the 2024 decrease came from sure-win states for one of the candidates while four swing states that together were decisive – Pennsylvania, Georgia, Wisconsin, and Michigan – enjoyed record voter turnout.

What then was Harris’ problem in election 2024? It starts, according to al-Gharbi, with her deficiencies as a candidate. Harris entered the race extremely late (Biden’s fault) and failed to communicate a compelling agenda (her fault). In addition, maintains al-Gharbi, by courting Liz Cheney and Dick Cheney she alienated her base without attracting swing voters. She neglected Democrats’ “blue wall” Rust Belt states. Speaking on her behalf, Obama antagonized black voters by scolding them for insufficiently supporting a black woman. And Harris declined an invitation from “The Joe Rogan Experience,” a podcast that typically reaches an audience of 11 million and on occasion as many as 50 million.

The deeper reasons for Trump’s victory involve long-term trends also at work in other Western liberal democracies. The data indicate, argues al-Gharbi, that voters’ top three reasons for rejecting Harris were inflation, immigration, and progressive views on cultural issues. However, if it weren’t for inflation and immigration, argues al-Gharbi, Democrats in 2024 would have continued to shed votes among “non-whites, religious minorities, less affluent people” because of cultural issues’ persistent salience.

For several election cycles, highly educated, prestigiously credentialed elites have alienated middle-class and working-class voters and driven them to the Republican Party, observes al-Gharbi. Over the last 15 years or so, the “Great Awokening,” he argues, intensified progressive elites’ promulgation of hard-left cultural stances. They championed assaults on free speech – by universities, the prestige press, social media, government, and sometimes all in tandem. They promoted a transgender ideology that encouraged adolescents to change their sex through drug therapy and surgery, and that endorsed the participation in women’s athletic competitions of biological men who declared themselves women. And they avidly advanced Diversity, Equity, and Inclusion programs that denounced merit as an artifact of white supremacy and sought to place in positions of power and prestige people of favored skin color, ethnicity, sex, and sexual orientation.

Progressives’ embrace of illiberal doctrines had the strange consequence of transforming Donald Trump into the preferred candidate for president of many who cherish free speech, respect sexual difference while insisting on equal rights, and wish people to be judged based on competence and character. This goes a long way toward explaining Trump’s odds-defying return to the White House.

Peter Berkowitz is the Tad and Dianne Taube senior fellow at the Hoover Institution, Stanford University. From 2019 to 2021, he served as director of the Policy Planning Staff at the U.S. State Department. His writings are posted at PeterBerkowitz.com and he can be followed on X @BerkowitzPeter.

Tyler Durden
Tue, 01/21/2025 – 18:15

Grand Theft Auto VI Priced At $100? This Gaming Analyst Believes So

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Grand Theft Auto VI Priced At $100? This Gaming Analyst Believes So

A gaming industry analyst penned a lengthy 200+ slide presentation about the state of the US video gaming industry for 2025. 

Epyllion CEO Matthew Ball pointed out how the gaming industry has tumbled into a slump, pressuring developers and publishers, but new “hopes” center around Rockstar Games’ guaranteed mega-hit Grand Theft Auto 6 release this fall that “could re-establish packed video game prices after decades of deflation despite rampant cost growth.” 

GTA 6, the long-awaited follow-up to 2013’s GTA 5, will hit store shelves for Xbox and PlayStation this fall. We should note GTA 6 has been previously delayed… 

Ahead of GTA 5’s release, Goldman analysts reiterated in November a “Buy” rating on Take-Two, the owner of Rockstar Games, with a 12-month price target that was shifted up from $186 to $205. 

DFC Intelligence, the oldest market analyst firm covering the video games industry, forecasted that GTA 6 could generate over $3 billion in its first year of sales, including $1 billion from just pre-orders. This positions GTA 6 to potentially become the largest-ever entertainment release in history. 

Epyllion’s Ball predicts that GTA 6 could help reverse the deflationary downturn in the video game industry, stating: “Some game makers hope GTA 6 will be priced at $80-100, breaking the $70 barrier and helping $50 titles move up to $60, $60 to $70, $70 to $80.” 

He also noted that at $70, GTA 6 would be the “cheapest” entry in the series in relative terms. This suggests a $10-$30 price increase is ahead for the release this fall, which could benefit the video game industry as a whole. 

In the early 2000s, video games were priced around $50. By the mid-2000s, this increased to $60, and in 2020, the industry raised the price of AAA-rated games to $70. 

“Packaged game prices have never been lower in real terms than they are today — even though budgets are at all-time highs and player growth is stalled,” Ball continued, adding, “GTA 6 could re-establish packed video game prices after decades of deflation despite rampant cost growth.”

Reacting to Ball’s lengthy note, Michael Douse, publishing director at Baldur’s Gate 3 developer Larian, wrote on X, “You’re not supposed to say this out loud!”

Douse continued, “A good company raises salaries in line with inflation so that their staff don’t die or something, but games prices haven’t risen with inflation. This isn’t the reason the industry is in the shit for now, but it is an uncomfortable truth. On the other hand, the responsibility for a game developer is to make sure that the game they show lives up to that promise, and that investment from the player.”

$70, $80, even $100—price increases are unlikely to deter hardcore gamers who have waited over a decade for GTA 6. 

The question remains whether GTA 6 can single-handedly save the video game industry from a deflationary death spiral. 

Tyler Durden
Tue, 01/21/2025 – 17:50

Elise Stefanik Will Deliver On President Trump’s America First Agenda At The UN

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Elise Stefanik Will Deliver On President Trump’s America First Agenda At The UN

Authored by Jim Banks via RealClearDefense,

For four years, we have seen the consequences of weak leadership in the White House: a world rife with conflict, a foreign policy that has emboldened adversaries like Communist China and Iran and abandoned allies like Israel further degrading American security. 

This past fall, the American people voted to usher in an era of renewed American strength. President Trump campaigned on a promise to restore American leadership on the world stage and is appointing the right team to ensure that promises made are promises kept. Specifically at international institutions like the United Nations, this America First leadership cannot come soon enough. Elise Stefanik is the perfect choice to deliver on President Trump’s agenda as Ambassador to the United Nations.

Her pledge to bring “transparency and reform” to the international body is desperately needed. For too long, American interests have taken a backseat at the UN.

The UN rakes in billions of American taxpayer dollars while actively undermining our interests. It allows the worst human rights abusers to sit on the so-called “Human Rights Council,” pushes a radical climate agenda that would destroy our energy industry, and persecutes our most greatest ally Israel while turning a blind eye to bad actors like China and Iran.

Elise understands that there can be no equivocation in our support for our greatest ally, Israel. As a fellow member of the Armed Services Committee during our shared time in the House, she joined me in pushing legislation after legislation that ensures Israel’s right to defend itself and combat the rampant antisemitism polluting our institutions including the United Nations. 

At a time when we face upheaval across the globe, Elise understands that security and peace can only be obtained through strength. Gone are the days of allowing our adversaries unchecked. And under President Trump’s historic national security team filled with my former colleagues and friends, we will restore American standing to the world stage. 

During his first administration, President Trump successfully instituted a historic maximum pressure campaign to hold Iran accountable for its violent actions. Working alongside Congress and with President Trump in the White House, Elise will use her position at the UN to strengthen international pressure on the Iranian regime and hold them accountable once again. 

In addition to standing with Israel and combating Iranian aggression, another key pillar of restoring American strength will be standing up to China, which continues to be a pressing threat to our nation’s security.

Elise summed up the dire need for UN reform and specifically the influence of Communist China when she wrote, “We must strive for a UN in which no one nation is expected to foot the bill but receive no accountability or transparency in return, in which no despot or dictator can sit in judgment of others while deflecting attention away from their own human rights abuses, and in which no organization corrupted by the likes of the Chinese Communist Party can dictate sweeping conventions and international standards across its membership.”

As we saw from their actions during the COVID-19 pandemic, the UN and its World Health Organization are in the pocket of Communist China and its leadership. Across the UN body, subagencies have become mouthpieces for Communist Chinese talking points turning a blind eye to their disgusting human rights violations as they hypocritically chastise other nations’ on the matter from their seat on the Human Rights Council. Under America First leadership and with Elise at the helm, the United Nations will root out this corruption, ensuring accountability for taxpayer dollars sent to the United Nation serve the American people first and foremost. Elise has proven time and time again to be a fighter who will not stand idly by while these international organizations do China’s bidding. 

During her time in public office Elise has shown that she will fight to protect the interests of the American people, defend American sovereignty, and strengthen American security by empowering our allies like Israel and deterring the malign actions of our adversaries like Communist China and Iran. 

Now more than ever that fighting spirit is needed at the UN. I look forward to voting in support of her nomination on the Senate floor and encourage my colleagues to follow suit. 

Sen. Jim Banks (Rep,, Ind.) he preveiously represented Indiana’s 3rd District in the U.S. House of Representatives.

Tyler Durden
Tue, 01/21/2025 – 17:30

Was Biden China’s Manchurian Candidate The Entire Time?

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Was Biden China’s Manchurian Candidate The Entire Time?

“Was Biden China’s Manchurian candidate the entire time?” David Asher, an expert on illicit financing who previously worked at the US Defense and State Departments, asked on X, following the last-minute pardons that former President Biden issued on Monday morning for family members, including his brother, James Biden; his sister-in-law, Sara Jones Biden; his sister, Valerie Biden Owens; his brother-in-law, John T. Owens; and his youngest brother, Francis Biden. 

Asher said, “Biden just pardoned his family, not just Hunter. It’s a clear indication that they have a secret to cover up. Bohai (aka BHR) is worth billions. Via beneficial interest, Biden family may own up to 27%.” 

Hollywood lawyer Kevin Morris, Hunter Biden’s “sugar brother,” purchased Hunter’s 10% stake in the China-backed investment firm BHR Partners during President Biden’s first year in office. The move allowed the Biden family to declare they had divested from foreign business interests. 

Asher noted, “Hunter says he sold his shares in 2021 to his lawyer/landlord Smith but if that truly happened he would received several billion dollars,” adding, “No evidence of that. All signs are he owns at least 18.8%.” 

“Bohai appears to own China defense company, Zhongkui Group as well. So potential direct ties to the People’s Liberation Army and domestic/foreign Chinese intelligence. WTF??” Asher emphasized. 

Hmmm.

Asher questioned: “Are their associates (Bulger, Morris, et al.) “beneficial shareholders” and have been the whole time? What did they do to be given “golden” founders shares, to begin with, if not for the Biden’s?”

He continued, “Their shares apparently were worth hundreds of millions and possibly billions, at least on paper? So they received this from a Chinese Communist Party company – it is apparently the oldest private equity fund in all of China. While Biden was Vice President and then President? Why are Hunter’s buddies still on the board and or “supervisors.” What’s the deal between Whitey Bulger’s family and the Bidens? Was Biden a Manchurian candidate for the ChiComms?” 

Asher reposted a clip of Peter Schweizer, who said the Biden family pardons are merely “an extension of Joe Biden himself and his role in the family’s dealings.” 

Earlier, the former president said blanket pardons to family members do not acknowledge wrongdoing, nor should acceptance be viewed as an admission of guilt. They cover all nonviolent offenses beginning on Jan. 1, 2014. This comes as various Biden family members have been under investigation for influence peddling.

Here’s Vice President Biden and Hunter Biden pictured with Hunter’s Chinese business associates at a 2013 dinner in Beijing. 

Zero Hedge notes that former President Biden denied attending any dinner or meeting with Hunter’s Chinese business associates. 

Speaking with The Hill on Monday, House Oversight and Government Reform Committee Chair James Comer (R-KY.) said the pardons “validated” the investigations into Biden family members.

“We finished our investigation, we published a very detailed report, and I think the pardons validate everything in that report,” Comer said, adding, “Now it’s Pam Bondi’s.”

Asher continued, “Trump is making history on day one. We are going to end the BS in the USG and make things in government and for the people more than great again. Trump’s better than he’s ever been before. Even old line conservatives need to get on board.” 

“If I get back in, the deep State will be upended and we will make the Department of State great again under Secretary Rubio— who is a total genius and tremendous leader under the president. China will pay for COVID and fentanyl. Iran will not be forgiven for attempting to kill the president and many others while it moves to build nukes to destabilize the Middle East and threaten the US and Europe. We can do a great deal without resorting to kinetic force. Peace through strength!” he concluded. 

The key takeaway is that the last-minute pardons for various members of the Biden family prompted Asher to conduct a public forensic analysis, which raises more questions than answers—particularly about whether Hunter still has ties (potentially beneficial interest) to BHR despite allegedly divesting several years ago. 

According to a 2022 Fox News report, Peter Schweizer stated that the CCP leadership employs a strategy known as “elite capture” to influence or buy off prominent US oligarchs—potentially including the Bidens—to avoid direct conflict.

“If we [CCP] can capture them with sweetheart deals, with other benefits, we can effectively lobotomize the United States by making them unresponsive to our threats,” Schweizer said of Beijing’s strategy. 

During Biden’s first term, China was largely unchecked in its military base expansion in the South China Sea, the presence of PLA ships in Japanese waters, the deployment of hypersonic missiles capable of destroying US aircraft carriers, and simulated war-gaming around Taiwan. Spy balloons floated over US territory, the drug crisis—fueled by fentanyl precursor chemicals from China smuggled via Mexican cartels across open southern and northern borders—intensified, the origins of Covid from a potential Chinese lab leak were dismissed, and the largest offensive cyberattack against the US (still ongoing) occurred, all without a clear policy response from the Biden administration and a rudderless Department of Defense.

Asher concluded: “This honeypot strategy by the CCP is as old as time. It’s hard to believe the Bidens would fall for it—let alone get away with it—while the corporate media fails to grasp or report on the massive scale, scope, and influence of Bohai within the Chinese Communist Party establishment.”

All of this may explain why former President Biden preemptively pardoned his family members.

Tyler Durden
Tue, 01/21/2025 – 17:10

Will Trump Succeed In Overcoming ‘The Deep State’: Putin’s Senior Aide Patrushev

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Will Trump Succeed In Overcoming ‘The Deep State’: Putin’s Senior Aide Patrushev

Authored by Andrew Korybko via Substack,

The outcome of Trump’s continued struggle with the “deep state” will reverberate across the world…

Putin’s senior aide Nikolai Patrushev, who ran the FSB for nearly a decade (1999-2008) before chairing the Security Council for over 15 years till recently (2008-2024), made three predictions about international affairs in his latest interview with Komsomolskaya Pravda. The first concerns the continued struggle between Trump and the “deep state”, the latter of which can be described as US’ permanent military, intelligence, and diplomatic bureaucracies, some members of whom are known to oppose him.

Patrushev expects Trump to implement domestic and foreign policies that are practically the opposite of Biden’s, which he characterizes as pragmatic and more aligned with the interests of the American people, but he’s unsure whether he’ll ultimately succeed due to internal resistance. The precedent from his first term bodes ill for his second, but the outcome of this latest struggle will reverberate for decades seeing as how the world is undergoing far-reaching systemic changes last seen since 1991.

On that topic, Patrushev assessed that one of Trump’s top foreign policy priorities is to ramp up pressure on China, including by artificially exacerbating bilateral tensions.

He then reminded everyone that “For us, China has been and remains a most important partner, with whom we have relations of especially privileged strategic cooperation. These relations are not subject to the situation, they remain regardless of who occupies the Oval Office.” This can be interpreted as signaling that Russia won’t backstab China.

In other words, Trump’s declared goal of “un-uniting” those two will fail, thus meaning that no worsening of their relations will occur. This shouldn’t be misunderstood as suggesting that Russia will go out of its way to help China at the expense of provoking the US’ wrath, however, seeing as how China hasn’t done that for Russia. After all, the Chinese-based BRICS Bank and SCO comply with US sanctions against Russia as do some of its local banks, all of which is proven in the preceding hyperlinked analyses.

A Chinese company also pulled out of Russia’s Arctic LNG 2 megaproject under sanctions duress too while private drone companies sell their wares to Ukraine. At the same time, Russia continues arming China’s Indian rival to the teeth despite their nascent rapprochement, and it also authorized the shipment of jointly Indian produced BrahMos supersonic missiles to the Philippines a year ago. Accordingly, while Sino-Russo ties will remain strong, some differences will nevertheless still exist.

And finally, the last prediction that Patrushev made in his latest interview was that Moldova and Ukraine might cease to exist as a result of their anti-Russian policies, with the first possibly “becoming part of another state” in an allusion to joining Romania like some nationalists there want to have happen. As for the second, his ominous prediction was preceded by him remarking about how such policies “are destroying once prosperous cities in Ukraine, including Kharkov, Odessa, Nikolaev, and Dnepropetrovsk.”

While some might believe that he’s implying that Russian forces will sweep across both to the Romanian and Polish borders respectively, it’s much more likely that he simply wants Moldova, Ukraine, and their shared American patron to bear in mind the possibly existential stakes if the conflict further escalates. Of course, it’s also possible that one or both collapse under the weight of their anti-Russian policies due to a combination of domestic instability and Russian pressure, but that probably isn’t what he meant.

This take on his intentions stems from what else he said about the need for Russia to only negotiate with the US, not with the UK, the EU, or anyone else. He reaffirmed that Russia will achieve its goals in the conflict and won’t cede any territory, but the overall impression is that Russia is interested in compromising with Trump the pragmatist, though the potential failure to agree to a decent deal (perhaps due to “deep state” subterfuge) could doom Moldova and Ukraine (at least with time).

Reflecting on Patrushev’s predictions, all three are grounded in a solid understanding of their associated dynamics, which is to be expected from someone like him. What unites them all is whether or not Trump will succeed in overcoming “deep state” opposition to his policies, thus making this domestic aspect of his platform globally important. If he does, then the US will likely cut a deal in Ukraine in order to “Pivot (back) to Asia” pronto, while it’ll likely remain in Ukraine and possibly even escalate if he doesn’t.

Tyler Durden
Tue, 01/21/2025 – 14:05

18,000 Unionized Costco Workers Prepare To Strike After Vote Passes

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18,000 Unionized Costco Workers Prepare To Strike After Vote Passes

In the past, the name Costco has been synonymous with high employee morale and quality of life. The company has been revered as a place to work due to its good pay, stock options and high focus on employee retention. 

But leave it to unions to take that and flip it on its head. 

Now, “eighteen thousand Costco Teamsters are preparing to strike if a ‘fair contract offer’ is not presented by the end of the month,” according to a new report from Fox Business News. 

Eighty-five percent of Costco Teamsters nationwide voted to authorize a strike, according to a Sunday press release. As final negotiations began on January 20, tensions rose with practice pickets held in California, Washington, and Long Island. Hundreds in San Diego are set to join a large practice picket by Thursday, the union said.

Teamsters General President Sean M. O’Brien commented: “From day one, we’ve told Costco that our members won’t work a day past January 31 without a historic, industry-leading agreement.”

“Costco’s greedy executives have less than two weeks to do the right thing. If they refuse, they’ll have no one to blame but themselves when our members go on strike,” he continued. 

Bryan Fields, a Costco worker in Baltimore, added: “We are the backbone of Costco. We drive its success and generate its profits. We hope the company will step up and do right by us, but if they don’t, that’s on them. The company will be striking itself.”

Costco’s website says it “is often noted for being much more employee-focused than other Fortune 500 companies. By offering fair wages and top-notch benefits, the company has created a workplace culture that attracts positive, high-energy, talented employees.”

Tyler Durden
Tue, 01/21/2025 – 13:45