The long-running war of words and denunciations exchanged between Kiev and Budapest has shown no signs of abating. This week Ukraine is now saying it can replace Hungary in the European Union and NATO if Viktor Orbán keeps cozying up to Putin.

The bombastic statement was issued by Ukraine’s Ministry of Foreign Affairs of Ukraine on Wednesday, and was also made available on X. The statement was formulated in response to the “latest manipulative statements from the leadership of Hungary regarding Ukraine’s decision not to extend the transit agreement with the aggressor state, Russia, from 2025 onwards.”

Ukraine said it “would be ready to fill any vacant space in the EU and NATO if Hungary chooses to vacate it” in favor of its membership in the Commonwealth of Independent States (CIS), or the Collective Security Treaty Organization (CSTO).

Formed in 2002, the CSTO has of late been overseen by Putin and originally consists of the six post-Soviet states of Russia, Belarus,  Armenia, Kazakhstan, Kyrgyzstan, and Tajikistan.

“If Hungary genuinely wishes to contribute to ending the war, it should start by not undermining unity within the EU and instead work to strengthen the energy security and independence of its own country and citizens alongside the rest of Europe and the United States,” the statement said further.

Prime Minister Orbán has made himself known as a constant vocal critic of Ukraine ever gaining access to NATO membership. He has further demanded more serious diplomatic efforts to negotiate an end to the war, standing with Slovakia’s Fico in this regard.

All of this also comes amid the backdrop of the gas row triggered by Ukraine’s refusal to renew a 5-year transit deal with Moscow. Orban’s government has blamed Kiev for a some 20% rise in natrual gas prices on the European market.

Slovakia and Austria in addition to Hungary remain heavily reliant on Russian gas purchased through Gazprombank, despite its being under US and European-led sanctions.

Péter Szijjártó, Minister of Foreign Affairs and Trade, said the government is protecting utility price reductions even after the 20 percent rise in gas prices in Europe on the back of Ukraine’s decision to cease gas deliveries from Russia. https://t.co/MS2nrTLwIO

— About Hungary (@abouthungary) January 8, 2025

Hungarian Foreign Minister Péter Szijjártó has charged Ukraine with intentionally putting Europe in an economic bind by not renewing the gas transit deal with Russia.

Authored by George Citroner via The Epoch Times,

Following the August 2024 release of a U.S. government report linking higher levels of fluoride in drinking water to lower IQ in children, a new review conducted by the National Institutes of Health appears to confirm those findings.

The new analysis, published in JAMA Pediatrics on Monday, found that fluoride exposure exceeding 1.5 milligrams per liter (mg/L) was associated with reduced intelligence among children.

The study, conducted by the U.S. National Toxicology Program (NTP), took nine years to complete and is the largest meta-analysis to date on the health effects of fluoride.

The studies reviewed measured fluoride levels in drinking water and in urine. The authors used urinary fluoride as a proxy for total fluoride exposure.

74 Studies Reviewed

Among the 74 reviewed studies, 64 found that higher levels of fluoride exposure were linked to lower IQ in children. The strength of this association is considered moderate to large.

Thirty-one studies reviewed noticed a dose-response, such that increased fluoride levels in drinking water were linked to further decreases in children’s IQ results.

However, the relationship between fluoride and lower IQ scores only persisted when fluoride concentrations in drinking water were above 1.5 mg/L, higher than the current fluoride drinking water standard of 0.7 mg/L.

The 1.5 mg/L cutoff is the same concentration identified in the NTP’s August 2024 report. The report was cited over 120 times in a lawsuit that led the court to rule that the Environmental Protection Agency (EPA) must revise its current drinking water standard of 0.7 mg/L.

When evaluating urinary fluoride, the researchers found that every increase of 1 mg/L in urinary fluoride was associated with an average decrease of between 1.14 and 1.63 IQ points.

Fluoride can cross the blood-brain barrier and accumulate in areas of the brain responsible for cognition and memory, although its effects on the brain remain unclear.

The study’s findings inform future risk-benefit assessments related to fluoride exposure, the authors wrote, especially highlighting the significant contributions of water and drinks made with fluoridated water, like soft drinks, fruit juice, beer, and some bottled water, to total fluoride ingestion.

In the United States, it is estimated that approximately 40 percent to 70 percent of fluoride intake originates from fluoridated drinking water.

The World Health Organization has established the safe upper intake level of fluoride in drinking water to be 1.5 mg/L, and the U.S. Public Health Service recommends a fluoride concentration of 0.7 mg/L of drinking water. However, “fluoride levels above 1.5 mg/L are found in wells and community water systems that serve nearly 3 million people in the United States,” Christine Bruske Flowers, director of communications at the National Institutes of Health, told The Epoch Times.

Food & Water Watch v. EPA

In a September 2024 federal court case in California, environmental nonprofit Food & Water Watch sued the EPA, arguing that adding fluoride to drinking water is harmful. The judge ruled in favor of Food & Water Watch, finding that the current level of fluoride in drinking water (0.7 mg/L) poses an “unreasonable risk” to children’s IQ.

The ruling was based upon the NTP’s report, which found that fluoride concentrations close to the EPA’s current standard posed a risk to neurodevelopment.

The EPA is now required to take action to address this risk, which could lead to significant changes in how we treat drinking water.

Experts in Disagreement

Despite the review’s findings, experts remain at odds about the meaning of the results.

Studies that have suggested a link between childhood fluoride exposure and reduced IQ “have had their limitations,” Suparna Mahalaha, an assistant professor at Case Western University School of Dental Medicine who was not associated with the study, told The Epoch Times.

In an editorial published along with the new study, Dr. Steven M. Levy, a dentist not involved in the study, pointed out that there is “no evidence” of an adverse effect at the lower fluoride levels commonly used in community water fluoridation systems.

One example he cited in opposition to the NTP’s study was the researchers’ use of urinary fluoride as a way to measure long-term fluoride exposure, stating that such measures are invalid because “fluoride has a short half-life and there is substantial variation within days and from day to day.”

Flowers emphasized the importance of fluoridated water and its use for decades to reduce dental cavities and improve general oral health.

However, the increased modes of fluoride exposure can also put pregnant women and children at risk.

Fluoride intake through food and drinks made with fluoridated water, toothpaste, and mouthwashes may increase children and pregnant women’s total fluoride exposure “and may affect fetal, infant, and child neurodevelopment,” Flowers added.

Mahalaha noted that the concentration of fluoride in drinking water is much less than what is added to toothpaste and mouth rinses, which is why it’s essential to ensure children do not swallow these products.

Toothpaste tubes carry warnings against ingestion because excessive fluoride intake can be harmful.

“When applying toothpaste to a child’s toothbrush, less than a pea size amount is sufficient and safe,” she said.

“From a public health perspective, in my opinion, high doses of ingested fluoride, and other things like sugar, processed foods, social media, and screen time all negatively affect the development of a child,” Mahalaha said.

*  *  *

In November, when RFK Jr. raised his concerns about fluoride’s effects, NPR was quick to attack the ‘conspiracist’…

Despite the clear benefits, conspiracy theories around fluoride have existed for almost as long as the water has been fluorinated, according to Matthew Dallek, a political historian at the George Washington University.

“In a way the conspiracy theory about fluoride in the drinking water is one of the original public health conspiracy theories,” he says.

…

Experts were swift to condemn the promise to remove fluoride from the water.

“Fluoride has been well tested. It clearly and definitively decreases cavities, and is not associated with any clear evidence of the chronic diseases mentioned in that tweet,” says Dr. Paul Offit, a researcher and physician at Children’s Hospital of Philadelphia.

“Robert F. Kennedy Jr. is a science denialist. He makes up his own scientific truths and ignores the actual truths,” Offit says.

Who’s the science-denier now Mr.Offit?

With less than two weeks to go until President Trump takes over The White House – and 24 hours after he unveiled a new $20 billion major investment from Emirati billionaire Hussain Sajwani to build new data centers across the US – the Biden administration plans one additional round of restrictions on the export of AI chips from the likes of Nvidia in a final push in his effort to keep advanced technologies out of the hands of China and Russia.

Bloomberg reports, citing people familiar with the matter, that Biden wants to curb the sale of AI chips used in data centers on both a country and company basis, with the goal of concentrating AI development in friendly nations and getting businesses around the world to align with American standards

The regulations, which could be issued as soon as Friday, would create three tiers of chip trade restrictions, said the people, who asked not to be identified because the discussions are private.

• At the top level, a small number of US allies would maintain essentially unmitigated access to American chips.

• A group of adversaries, meanwhile, would be effectively blocked from importing the semiconductors.

• And the vast majority of the world would face limits on the total computing power that can go to one country.

Countries in the last group would be able to bypass their national limits – and get their own, significantly higher caps – by agreeing to a set of US government security requirements and human rights standards, one of the people said.

That type of designation – called a validated end user, or VEU – aims to create a set of trusted entities that develop and deploy AI in secure environments around the world.

Nvidia explained its dissatisfaction at Biden’s decision in the most diplomatic manner:

“A last-minute rule restricting exports to most of the world would be a major shift in policy that would not reduce the risk of misuse but would threaten economic growth and US leadership,” Nvidia said.

Every data center and business is already incorporating AI through what the company calls accelerating computing, Nvidia said.

“The worldwide interest in accelerated computing for everyday applications is a tremendous opportunity for the US to cultivate, promoting the economy and adding US jobs,” the chipmaker said.

NVDA shares are down just over 1% in the after-market…

…which pushes the giant tech company into ‘correction’ – down over 10% from its $3 trillion-plus peak market cap.

Via Headline USA,

LGBT liberals are reportedly buying firearms over fears they’ll be rounded up and placed in “concentration camps” under the incoming Trump administration, according to the Philadelphia Inquirer.

The new gun-toting groups, including the Liberal Gun Club, the Socialist Rifle Association, and Pink Pistols, claimed they’ve received “thousands” of firearm training requests since Trump won the 2024 election.

“Three months before the election, that’s when the alarm bells started to ring,” a 24-year-old transgender activist told the outlet, adding that armed leftists will now be able to fight back “in the event of hate crimes or terrorist attacks.”

The activist added minorities should also take their Second Amendment rights seriously, since “minorities that are armed are more difficult to legally oppress.”

Left-winger Matthew Thompson said he purchased his first gun in 2016 after Trump was elected the first time, though he claimed he was inspired more by the mass shooting at the Pulse gay nightclub in Orlando, Florida. 

“The people I’ve been seeing on the Left and the gay people who are out purchasing guns for the first time, it’s all about self-defense and fear,” he claimed. “We’re not looking to arm up and storm the [U.S. Capitol]. We just don’t want to be put in concentration camps.”

Trump has not once suggested he is anti-LGBT.

In fact, Trump became the first Republican nominee to mention LGBT issues during his acceptance speech at the Republican National Convention in 2016, shortly after the Pulse nightclub shooting.

“Thank you to the LGBT community! I will fight for you,” Trump said at the time.

Thank you to the LGBT community! I will fight for you while Hillary brings in more people that will threaten your freedoms and beliefs.

— Donald J. Trump (@realDonaldTrump) June 14, 2016

LGBT leftists aren’t the only ones with deranged fantasies about being rounded up by Trump’s fantasies. Rep. Debbie Dingell, D-Mich., also bizarrely claimed last year that she might end up a prisoner in one of Trump’s alleged “internment camps.”

“I get worried enough when he talks about what he’s going to do to his political enemies, but he has talked about them in this with different groups of people,” she said.

As of Wednesday afternoon the fast-moving, wind-driven fires sweeping through the Los Angeles area are still zero percent contained, resulting in ongoing evacuations for 80,000+ residents.

Hundreds of thousands of residential and commercial locations have been left without power in the LA area as the natural disaster has become so large in proportion that it has captured the nation’s attention. Many have been naturally focused on ‘thoughts and prayers’ for heroic LA and California firefighters, and their hoped-for ability to push back the raging inferno. But several local headlines from prior years make clear that area firefighters could have had more resources to draw from, if significant emergency response supplies and items weren’t sent to Zelensky…

“Los Angeles County fire crews are sending some of their extra equipment to firefighters in Ukraine,” a local March 2022 story reads. “The plane carrying that much-needed surplus equipment, such as hoses, nozzles, turnouts, helmets, body armor and other personal protective gear, is expected to take off Friday.”

This began in the opening months of the Russian invasion, and appears to have continued at various times over the last couple years, with large expensive items like firetrucks having been shipped oversees as well.

Putting America “Ukraine first” is the Biden bad foreign policy idea that keeps on giving… and taking away from American citizens caught in the throes of emergency and disaster

Gavin Newsome gave Ukraine fire trucks.

This post is from 6/1/2024

WTF IS HAPPENING!!!!!! https://t.co/YUCbykb0Bj

— Kylie Jane Kremer (@KylieJaneKremer) January 8, 2025

While supporters of such programs argue that this was all surplus and ‘retired’ and extra equipment, we are quite sure that in these current dire circumstances surrounding Los Angeles any such ‘surplus’ could have been used and is still badly needed.

President-elect Trump himself has highlighted the ongoing shortages being experienced among emergency crews in the area…

Meanwhile, as California burns Biden is rushing many billions more in taxpayer dollars out the door to go to Ukraine.

Rick Caruso, billionaire real estate developer, called into LA local news:

“This is like a third world country… there is no water coming out of the fire hydrants. LA Mayor Karen Bass is on a foreign trip to Ghana.”pic.twitter.com/iOjXPkWcko

— Geiger Capital (@Geiger_Capital) January 8, 2025

And Biden is still planning a massive final aid package for Ukraine, so that as much as possible gets into Kiev’s coffers prior to Trump being sworn in on Jan.20. How about diverting some of those billions to actual US citizens in LA?

President Joe Biden in a Jan. 5 interview confirmed that he is considering whether to issue preemptive pardons.

White House officials have said that Biden plans to issue additional pardons and commutations before his term ends.

Preemptive pardons would differ from those Biden has already issued and those issued by other presidents in their final days in office. They would protect people from prosecution for charges that have not yet been brought, reports Zachary Stieber at The Epoch Times.

“Some of your supporters have encouraged you to issue preemptive pardons to people like Liz Cheney and Anthony Fauci … will you do that?” USA TODAY’s Susan Page asked Biden during the interview.

The individuals suggested have drawn criticism from President-elect Donald Trump, who is set to take office again on Jan. 20.

Biden referenced a meeting with Trump at the White House in November 2024.

“I tried to make it clear that there was no need, and it was counterintuitive for his interest to go back and try to settle scores,” Biden said, recounting the conversation they had.

Trump did not respond directly to that advice, according to the president.

“He didn’t. But he didn’t say, ‘No, I’m going to…’ You know. He didn’t reinforce it. He just basically listened,” Biden said.

“So you haven’t decided yet. You’re still assessing this issue?” Page asked.

“No, I haven’t,” Biden responded. “A little bit of it depends on who he puts in what positions,” Biden said.

The Trump transition team did not respond to a request for comment. Inquiries sent to the employers of Cheney and Fauci were not returned.

Biden in late 2024 pardoned his son, Hunter Biden, whom a jury convicted of federal gun charges and who pleaded guilty to intentionally failing to pay taxes.

Biden later pardoned another 39 people and commuted the sentences of some 1,500 others, including 37 death row prisoners.

One individual floated as a possible preemptive pardon candidate is Hillary Clinton, the former secretary of state.

Clinton, who mishandled confidential emails and whose campaign funded opposition research against Trump, was included in a list compiled by Kash Patel, Trump’s nominee for FBI director.

The list, Patel has said, are participants in the so-called deep state.

Clinton’s husband, former President Bill Clinton, has said that he does not think Biden should preemptively pardon his wife.

“I hope he won’t do that,” he said during a recent television appearance on Dec. 11.

A Clinton Foundation spokesperson did not return a request for comment.

Biden this month awarded Cheney, who was mentioned during the interview, a Presidential Citizens Medal for her work as vice chair of a House panel that investigated the Jan. 6, 2021, breach of the U.S. Capitol. Biden said Cheney and other former officials who received the medal in the ceremony had “dedicated their careers to serving our democracy” and “served in difficult times with honor, decency and ensure our democracy delivers.”

Authored by Michael Snyder via TheMostImportantNews.com,

All of a sudden, everyone is talking about Greenland.  Normally, Greenland is a place that is largely ignored by the rest of the world, but apparently Donald Trump is very serious about acquiring it.  But what would that look like?  If Greenland is made the 51st state, it would have as many U.S. Senators as the state of California.  That could have very serious implications for the balance of power in Congress.  And how would Greenland vote in U.S. presidential elections?  Has anyone even considered that?  Of course Greenland could become just another U.S. territory, but why would the citizens of Greenland want to become the next Puerto Rico?  That certainly doesn’t sound very appealing.  

And why is Trump making such a big deal out of this anyway?  Approximately 56,000 people live in Greenland, and 80 percent of it is covered in ice.  

So why does Trump want it so badly?

Of course the truth is that it all comes down to natural resources.

In particular, Greenland has lots and lots of oil.

According to Wikipedia, Greenland “has some of the world’s largest remaining oil resources”…

Some geologists believe Greenland has some of the world’s largest remaining oil resources:[30] in 2001, the U.S. Geological Survey found that the waters off north-eastern Greenland (north and south of the Arctic Circle) could contain up to 110 billion barrels (17×109 m3) of oil,[31] and in 2010 the British petrochemical company Cairns Oil reported “the first firm indications” of commercially viable oil deposits.[32]

The U.S. consumes an average of approximately 20 million barrels of petroleum per day.

So 110 billion barrels is a serious amount of oil.

And it also turns out that the Chinese are very interested in the rare-earth elements that are buried under the dirt in Greenland.  In fact, one particular area of Greenland is “home to one of the world’s largest undeveloped deposits of rare-earth elements outside of China”…

Kvanefjeld is home to one of the world’s largest undeveloped deposits of rare-earth elements outside of China. Seventeen elements, including scandium and yttrium, are buried deep underground there. They are used in everything from cell phones and wind turbines to electric cars. Mining advocates say tapping into them would be a major financial boon for Greenland.

Greenland Minerals Limited (GML), the Australian company developing the mine, said that the country would receive $240 million (€201 million) in taxes and royalties annually over the mine’s planned 37-year lifespan. GML’s biggest stakeholder is Shenghe Resources Holding, a Chinese rare-earths processing company.

It has been estimated that there are more than 38 million tons of rare earth deposits in Greenland.

So who will end up benefitting from those deposits?

Will it be the U.S. or will it be China?

On top of everything else, an extremely important U.S. military base is already located in Greenland…

Thule Air Base, already a vital U.S. military installation, provides early warning radar and monitors potential missile threats. Housing approximately 600 personnel, it plays a critical role in the U.S. missile defense network, covering threats across the northern hemisphere. Its strategic location enables unparalleled monitoring capabilities, reinforcing America’s defensive posture in the Arctic. Expanding this presence would fortify America’s Arctic strategy against rivals such as Russia and China, ensuring unparalleled leverage in the rapidly evolving Arctic theater.

If we lost that base, it would be an enormous strategic blow to the United States.

After considering all of the variables, Trump has decided that it is time for us to control Greenland.

In fact, he is threatening Denmark with very painful tariffs if they try to stand in the way…

US President-elect Donald Trump has threatened “very-high” tariffs on Denmark if it resists his effort to take control of Greenland, an autonomous Danish territory.

And on Tuesday, Trump actually refused to rule out the use of military force to take control of Greenland…

President-elect Donald Trump on Tuesday wouldn’t rule out exercising military or economic coercion to further his goal of bringing both Greenland and the Panama Canal under U.S. control, as his son, Donald Trump Jr., is in Greenland amid Trump’s push to acquire the autonomous territory of Denmark.

“I can’t assure you, you’re talking about Panama and Greenland,” Trump told reporters during a press conference at his Mar-a-Lago estate in Florida. “No, I can’t assure you on either of those two. But I can say this — we need them for economic security.”

Obviously, a military invasion of Greenland is something that should be completely off the table.

The rest of the world would be absolutely horrified if we invaded Greenland and made it part of the United States by force.

If Greenland is going to come under U.S. control, it must be done by diplomatic means.  Perhaps Donald Trump Jr.’s visit to the island is the beginning of that process…

Donald Trump Jr., son of President-elect Donald Trump, arrived in Greenland Tuesday with conservative activist Charlie Kirk amid a push to purchase the Danish territory.

“Don Jr. and my Reps landing in Greenland,” the president-elect posted on Truth Social.

“The reception has been great. They, and the Free World, need safety, security, strength, and PEACE!

“This is a deal that must happen. MAGA. MAKE GREENLAND GREAT AGAIN!”

In the end, it will be up to the people of Greenland to decide their future.

It is a land that has been dominated by Denmark for a very long time, but now it could soon be holding a referendum on independence…

Greenland, the world’s largest island, was a Danish colony until 1953, when it became an integral part of the Kingdom of Denmark. In 1979, it achieved home rule, and in 2009, self-governance, granting it control over domestic affairs while Copenhagen retained authority over defence and foreign policy. Crucially, the 2009 agreement provides Greenland with the right to declare independence through a referendum.

If Greenland votes for independence, it seems unlikely that they would be interested in giving that up just to become another U.S. territory.

Greenland Prime Minister Múte Bourup Egede insists that his country “will never be for sale”…

“Greenland is ours,” Egede also said. “We are not for sale and will never be for sale. We must not lose our long struggle for freedom.”

Egede was indeed responding to an assertion from Trump that the United States must acquire Greenland “for purposes of National Security and Freedom throughout the World.”

So I think that this is a deal that would be exceedingly difficult for Trump to make.

Of course this isn’t the first time that the United States has been interested in acquiring Greenland…

This is not the first time the US has shown interest in acquiring the island. Under President Andrew Johnson in 1867, the US State Department noted Greenland’s resources and location as ideal for acquisition but made no formal efforts.

Nearly a century later, President Harry S Truman offered Denmark $100 million for Greenland in 1946 after recognising its strategic value post-World War II. Truman also considered trading parts of Alaska for Greenland, though the deal never materialised.

Without a doubt, I think that Greenland would like to have very strong ties to the United States.

But I wouldn’t count on Greenland becoming part of the U.S. any time soon.

Needless to say, Trump will have so many other issues to focus on once he becomes president that the status of Greenland will probably quickly become an afterthought.

2025 is going to be such an important year for our nation and for the entire world, and the decisions that Trump makes during the months ahead will have enormous implications for all of us.

*  *  *

Michael’s new book entitled “Why” is available in paperback and for the Kindle on Amazon.com, and you can subscribe to his Substack newsletter at michaeltsnyder.substack.com.

Authored by Chris Martenson via PeakProsperity.com,

Is Biden Trying To Destroy The US’s Energy Future?

Energy is THE master resource.  Have that and everything is possible.  Without it, nothing is possible.

The level of sheer petulance on display by the Biden administration on their way our to door is staggering.  They’ve tried and failed, thankfully, to kick of WW III by lobbing long-range missiles into Russia.  They treated the Western North Carolina hurricane victims so horribly, and continue to do so, that it’s a miracle that hasn’t erupted into violence.  They ran an extremely poorly conducted drones-over-Jersey PsyOp.

Then Biden pardoned some of the worst possible people on the planet, including a judge that shanghaied kids into a prison-for-profit program for infuriatingly stingy kickbacks given the fact that some of the kids committed suicide as a result, and lives were derailed and ruined in all cases.

The two terror incidents were immediately utilized as weapons-grade PsyOps by who knows which over-funded “intelligence” agencies to distract and divide and divert civilian attention while they dialed-for-dollars in a new political landscape where their relevance may have suddenly come into question.

But all of that pales in comparison to the truly stunning attempts by the Biden administration (which we still have no idea who or what we’re really speaking of when we type that out) to hamstring American’s access to affordable, reliable energy and efficient equipment.

The headlines begin with Biden invoking the 1952 Outer Continental Shelf Lands Act, meaning Trump would need Congressional involvement to reverse this action:

(Source)

Most distressingly, Team Biden are of the delusion that oil and gas are “unnecessary to meet our nation’s energy needs.” 

While this may or may not be true, nobody can make that statement because the alternative pathway has never been spelled out.

Repeat after me; there is no plan. 

If there were I’d have found it and shared it with you in detail.

Fun fact:  China has such a plan and it’s coherent, logical and achievable.  It involves a believable mix of nuclear, fossil fuels, efficiency measures, and a 1% per year adoption rate for bringing wind and solar into the grid up to a maximum of 12% which is the most they feel can be tolerated by such an unstable, intermittent source.

Double fun fact: Europe has the same delusional alt-energy mindset as the US, only they are busy watching their industrial economy crumble before their very eyes while seemingly unable to process that information correctly.  Perversely, but predictably, the response from the technocrats is “more regulations – that’s what we need!”

But wait!  There’s more!

The day after Christmas, Team Biden turned into the Grinch and took away the most energy efficient means of heating water available for homeowners.

Biden Bans Scores of Natural Gas Water Heaters, Driving Up Prices With Lame-Duck Regulations

The Biden administration finalized climate regulations to ban most natural gas-powered instantaneous water heaters—a move that critics say will drive up costs for consumers.

The Department of Energy—which formally published the rules the day after Christmas—didn’t issue a press release announcing the action, a departure from past appliance regulations. The published rules say the regulations are expected to help the climate by curbing carbon dioxide emissions.

Overall, under the regulations, roughly 40 percent of the new tankless water heaters available in the United States today will be taken off the market by 2029. Experts and industry officials say that will force consumers to purchase either more expensive or less efficient water heater models.

One industry analysis estimates that consumers will pay $450 more on average when purchasing new water heaters thanks to the regulations. And that will impact low-income and senior households, which are most reliant on the models targeted by the Department of Energy.

(Source)

What’s truly bizarre, at least if you’re trying to understand this from within their stated narrative about addressing the Climate Crisis, is that they are busy banning the most energy efficient water heaters on the market:

How does that make any sense at all?

It doesn’t and you’ll only break your brain trying to make it fit.

You might as well adopt the explanatory framework of Steve Martin in The Jerk:

Alternatively, maybe they don’t hate the cans, or the appliances at all, maybe they hate you.

To build out this thesis let’s explore the idea in play in full.  They’ve stated their goal in full; they want everything moved over to using electricity.

They want EV’s.  That fits.

They want induction stoves, not gas.  That fits.

They want electrical hot water, not gas.  That fits.

What doesn’t fit is that they haven’t made any corresponding moves to prepare the national electrical grid and power generation to supply all that electricity.

Which means the electrical grid is at risk of becoming unstable.  Oh wait.  It already is.

At least according to this quite good article in Bloomberg that came out last week:

AI data centers are multiplying across the US and sucking up huge amounts of power. New evidence shows they may also be distorting the normal flow of electricity for millions of Americans. This map shows readings from about 770,000 home sensors, with red zones indicating areas with the most distorted power.

The problem is threatening billions in damage to home appliances and aging power equipment, especially in areas like Chicago and “data center alley” in Northern Virginia, where distorted power readings are above recommended levels.

An exclusive Bloomberg analysis shows that more than three-quarters of highly-distorted power readings across the country are within 50 miles of significant data center activity. While many facilities are popping up near major US cities and adding stress to already fragile grids, this trend holds true in rural areas as well.

(Source)

The problem is subtle – all of your appliances are geared to run on a very specific voltage operating at a stable (and pure sine wave) 60Hz.

The article continues:

Every day, Americans reach into their refrigerators or turn on their dishwashers without much thought given to the electricity flowing through their homes. But a hidden problem now threatens these seemingly mundane tasks: distorted power supplies.

The term for the issue is “bad harmonics.” It may seem a bit esoteric, but you can think of it like the static that can be heard when a speaker’s volume is jacked up higher than it can handle. Electricity travels across high-voltage lines in waves, and when those wave patterns deviate from what’s considered ideal, it distorts the power that flows into homes. Bad harmonics can force home electronics to run hot, or even cause the motors in refrigerators and air conditioners to rattle. It’s an issue that can add up to billions of dollars in total damage.

More importantly, bad harmonics are symptomatic of much deeper problems that are engulfing the US grid.

Distorted waves are just one measure of broader power quality. When homes experience good, or stable, power quality, it means that the flow of electricity for lights and appliances is being delivered at an even and predictable pace. The worse power quality gets, the more the risk increases. Sudden surges or sags in electrical supplies can lead to sparks and even home fires. Left unaddressed, one problem can morph into another. That means the bad harmonics of today can be a sign of potential disaster down the road.

“Harmonics are a pretty good canary in the coal mine for early signs of stress and problems,” said Bob Marshall, chief executive officer of Whisker Labs Inc.

Wow!

• First, we learn that there’s already an unacceptable level of ‘above-limit’ power distortion in the US.

• Second that these distortions mainly occur with 50 miles of massive data centers clearly indicating that they are a main culprit.

• Third we learn that the costs of power distortions will be largely borne by residential customers in the form of ruined appliances and possibly house fires.

• Fourth, in induction, we learn that the Biden administration hates us because they are busy banning gas water heaters but saying absolutely nothing about the above issue.  Nor did Team Biden say squat about Meta’s announcement of putting in a 2.2 GW natural gas-powered plant to operate its data center.

What does all this mean?

Here’s an idea.  It means that the future that the Biden-types have in mind is energy poor, unstable, and exists to power data centers which will be primarily used to keep track of you presumably so you can be more easily controlled.

The fact that the grid is becoming more unstable is irrelevant to them.  The fact that cheap energy is THE lifeblood of an industrial e3conomy is also of no concern to them.  The fact that electricity will become more expensive and drive more people deeper into poverty is also apparently of no concern to them.

If it were, we’d already see the crash program of nuclear scale up in motion and the build-out of our electrical grid underway.  Neither are happening.

Therefore, the electrification of our lifestyles is not truly what they care about.  To the extent those words come out of their mouths it is merely performative and not actually serious.

Therefore, logically, it is our way of life that is actually under attack and which they want to dismantle.

So no oil, no gas, no gas stove, no efficient water heaters, and no stable grid for you!

First Conclusion

Again, if ‘they’ were true believers in Climate Change they’d be leading the charge by flying coach, selling off their surplus waterfront homes, and investing their own money (not the public’s!) in alt-energy solutions.

Broadly speaking, none of that is happening, so they don’t really believe in it either.

What they do believe in is controlling the masses.  Once everyone is herded over into an electrical future, then everything about that future is controllable with the flick of a switch.  This is the conclusion that fits best with fact-pattern.

But the people are waking up…and they are pissed.

Tl;dr: Fed officials are worried about the inflation impacts from Trump‘s policies: Minutes

So the Fed is not reactive (even when inflation is biting it in the ass), but is PROACTIVELY hostile toward the policy of a president it disagrees with even if said policy doesn’t even exist?

*  *  *

Since The Fed’s last meeting (Dec 18th) where they issued a ‘hawkish cut‘, bonds and stocks have been dumped while crude and gold have strengthened along with the dollar…

Source: Bloomberg

More notably, rate-cut expectations have oscillated all over the place but are back near the spike lows from FOMC day (implying a 50-50 chance of 1 or 2 cuts this year)…

Source: Bloomberg

…and the yield curve has steepened dramatically, with the much-watched 3m10Y spread now uninverted at its steepest since Oct 2022…

Source: Bloomberg

The market remains significantly more hawkish about future cuts than The Fed still…

Source: Bloomberg

So the big question is – what does The Fed want us to see from The Minutes? Remember this was the meeting where Powell flip-flopped from uber-dove to super-hawk after Trump won the election.

Will they mention concerns about Trump’s policies driving inflation? Will the topic of their independence come up? Will fears of sticky inflation be mentioned by more than ‘a few’ members?

Key headlines from the minutes include:

• “Many participants suggested that a variety of factors underlined the need for a careful approach to monetary policy decisions over coming quarters.”

• “Some participants stated that there was merit in keeping the target range for the federal funds rate unchanged,”

• “A majority of participants noted that their judgments about this meeting’s appropriate policy action had been finely balanced.”

• “Several observed that the disinflationary process may have stalled temporarily or noted the risk that it could.”

It’s Trump’s fault:

The Fed’s staff incorporated “placeholder assumptions” about potential policy changes under incoming US President Donald Trump, resulting in an economic growth forecast that was slightly slower, with inflation also expected to remain firm.

‘Almost all‘ participants judged that upside risks to the inflation outlook had increased

The minutes showed “a number” of policymakers indicated they also included placeholder assumptions in their updated economic projections.

Forgive us our ignorance here – admittedly we are not PhDs – but we do not remember the staff and members ‘citing’ inflation fears when the Biden admin dropped multi-trillion dollar spending bills (and called them Inflation Reducers)?

Fed officials are worried about the inflation impacts from Trump’s policies: minutes

So the Fed is not reactive (even when inflation is biting it in the ass), but is PROACTIVELY hostile toward the policy of a president it disagrees with even if said policy doesn’t even exist

— zerohedge (@zerohedge) January 8, 2025

Read the full Minutes below…

After two dismal coupon auctions to start the week, and the year, the final sale of Treasury paper in the funeral-shortened week took place shortly after 1pm when the Treasury sold $22BN in a 29 Year, 10 Month reopening, in what was the strongest auction so far in 2025.

Stopping at a high yield of 4.913%, not only was this sharply above last month’s 4.535%, but it was also the highest yield since August 2007. The silver lining: the auction stopped through the When issued 4.920% by 0.7bps, following last month’s tail.

The bid to cover was a solid 2.519, higher than last month’s 2.390 and above the six auction average of 2.42.

The internals were average, with Indirects awarded 66.6%, just barely above last month’s 66.5%, and below the recent average of 67.4%; and with Directs awarded 20.7%, or above the December 19.1%, and just above the recent average, Dealers were left holding 12.7%, down from both the December 14.4% and the recent average of 14.6%.

Overall, this was a mediocre auction, one which sent the 10Y yield spiking 4bps higher and once again approaching session highs which – as we now know – lead to an increasingly violent selloff in the stock market.