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AMC Files ATM Offering, One Day After Roaring Kitty Sparks Meme Stock Frenzy

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AMC Files ATM Offering, One Day After Roaring Kitty Sparks Meme Stock Frenzy

Not even a day after “meme stock” influencer Keith Gill, also known as Roaring Kitty, posted a cryptic image of a 2006 Time magazine cover on X…

… which sent meme stocks GameStop and AMC Entertainment soaring as the Reddit Army panic bought…

Top AMC executives and their investment bank wasted zero time as liquidity reentered the meme world and filed to sell up to 50 million Class A shares in “at-the-market offerings” as defined in Rule 415 under the Securities Act of 1933. The filing said Goldman Sachs is the sales agent on the ATM.

Shares tumbled as much as 13% in premarket trading following the news—yet another instance of heavily indebted AMC, burdened by $4 billion in long-term debt and hefty interest payments, being forced to continue tapping equity markets to survive (read: here & here).

AMC was hyping up record box office numbers ahead of the filing, with AMC CEO Adam Aron calling the surge in moviegoers a “national phenomenon.” 

There were even silly TikTok ads of oversized Americans munching on junk food – promoting the AMC revival… 

At the time, we warned, “Any AMC rally on this news should be approached with caution, as the company is burdened by $4 billion in long-term debt and hefty interest payments. This may only suggest that CEO Aron might hit equity markets on any significant pop.” 

And that’s precisely what top-level AMC execs and Goldman did—pulled the rug out from under mom-and-pop Reddit traders—right before Christmas. 

How long until Gamestop’s Ryan Cohen pulls an AMC on Redditors? 

Tyler Durden
Fri, 12/06/2024 – 08:10

NFTs Hit 6-Month High Of $562M In Monthly Sales Volumes

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NFTs Hit 6-Month High Of $562M In Monthly Sales Volumes

Authored by Ezra Reguerra via CoinTelegraph.com,

Non-fungible tokens (NFTs) have maintained their monthly sales momentum, surging by 57.8% in November as digital collectibles continue to recover. 

On Dec. 1, data company CryptoSlam showed that NFTs recorded $562 million in sales in November, a substantial increase in volume from October. CryptoSlam data also indicates that November’s monthly sales volume for NFTs is the highest since May, when digital collectibles had a $599 million sales volume. 

NFT sales volume from May to December 2024. Source: CryptoSlam

Despite the surge, NFT monthly volumes are still far from their peak in 2024. In March, digital collectible sales volumes recorded a yearly high of $1.6 billion. However, this was followed by a seven-month slump, with each month’s sales volume decreasing until it reached its lowest point since 2021. 

CryptoPunks floor price surges by 52% 

As the broader crypto markets surged, popular NFT collection CryptoPunks also had an impressive record in November. According to crypto data website DefiLlama, the NFT collection had a floor price of 26.3 Ether ETH$3,841.83 on Nov. 1. By Nov. 30, CryptoPunks’ floor price had risen to 39.7 ETH, worth about $147,000 at current market prices. 

CryptoPunks floor price data from September to November. Source: DefiLlama

CryptoSlam data also showed that CryptoPunks had a 30-day sales volume of more than $49 million, a 392% increase compared to the previous month. The collection also recorded 388 sales transactions, 213% more than in October. 

Apart from CryptoPunks, the Pudgy Penguins collection also had an impressive November. The collection’s monthly sales volume surged 262% month-on-month, with $16 million in volume. 

DefiLlama data also shows that Pudgy Penguins’ floor price rose from 8.7 ETH on Nov. 1 to 13 ETH, or roughly $48,000, on Nov. 30, a 49% increase.

Ethereum, Bitcoin leads NFT comeback

The Ethereum network led the month with over $216 million in sales volume, a 12% increase from October. 

In terms of percentages, Bitcoin recorded the highest increase among the top blockchains for NFTs. The network had $186 million in sales volume, a 99.44% surge from October. 

Meanwhile, Solana, Mythos Chain, Immutable, Polygon and BNB Chain collectively recorded $162.9 in NFT sales volume for November. 

Tyler Durden
Fri, 12/06/2024 – 06:30

Dozens Of Middlemen Drop Out Of Trading Russian Oil To India

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Dozens Of Middlemen Drop Out Of Trading Russian Oil To India

By Tsvetana Paraskova of OilPrice.com

Dozens of small trading players and middlemen have recently dropped out of trading Russian crude oil to India, as Russia’s interest rates and costs to fund trades have soared, Reuters reported exclusively on Thursday, quoting trade sources and customs and shipping data.

India, one of Russia’s top two markets to sell its oil banned in the West, now relies on Russian crude for a large part of its consumption. Since 2022, after the Russian invasion of Ukraine and the Western sanctions on Moscow, Russia has become India’s single biggest supplier of crude.

Back in 2022 and in 2023, many traders raced to deliver Russian crude to India, lured by the lucrative profits of the trades as risks were higher.

Little-known and newly-incorporated trading companies have handled large volumes of Russian crude oil and products since the Russian invasion of Ukraine and the withdrawal of Western firms from trades with Russia’s oil.

These new oil trading companies that have mushroomed are incorporated in jurisdictions outside of Europe and are often notoriously opaque in their management and dealings.

However, Russia has recently raised its benchmark interest rate to 21%. That’s the highest in two decades and is, of course, affecting funding costs for traders who depend on Russian banks to finance trades with Russian oil, as Western banks are not funding any.

Since the funding costs spiked earlier this year, many middlemen have dropped out of the trades with India, leaving the business to several trading houses.

Currently, the majority of Russian crude volumes are being handled by Litasco Middle East, the Dubai-based trading arm of Russia’s Lukoil, as well as Dubai-based firms Hinera Trading and Black Pearl Energy Trading, per customs and shipping data that Reuters has seen.

India’s demand for Russian crude, which is cheaper than alternatives due to the sanctions, has been so high recently that the discounts at which Russia’s oil is selling to India have narrowed. As a result, private Indian refiners, including Reliance Industries and Rosneft-controlled Nayara Energy, cut their imports of Russian crude by 18% in November compared to October, the New Indian Express reported this week, citing data from energy commodity tracking firm Vortexa.

Tyler Durden
Fri, 12/06/2024 – 05:00

Lavrov Warns Europe The New Cold War Is Turning ‘Hot’

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Lavrov Warns Europe The New Cold War Is Turning ‘Hot’

Russian Foreign Minister Sergei Lavrov on Thursday warned that the new Cold War which has seen Moscow and NATO in a showdown over Ukraine for nearly the past three years is turning into a “hot” East-West conflict, according to the remarks in RIA Novosti.

Lavrov issued the comments before an Organization for Security and Cooperation in Europe (OSCE) council meeting in Malta. He said the West is behind a “reincarnation of the Cold War, only now with a much greater risk of a transition to a hot stage.”

He further lashed out at US hegemony in different sectors of the globe: “Military exercises are growing with native participation in the South China Sea, in the Taiwan Straits around the Korean Peninsula. Clearly, this is an attempt to destabilize the entire Eurasian continent,” the Russian top diplomat asserted.

Via Associated Press

Later he was asked by a media outlet about the new Cold War remarks, to which he responded: “All these fantasies are only exacerbating the situation, and show that the people who hold such ideas, prefer not to hear the very clear warnings that President Putin has repeatedly given.”

This reference to “fantasies” was in response to reports that Western countries such as Germany and France could be open to sending Western troops to Ukraine.

He has additionally laid blame for this new Cold War squarely on the West:

“All the previous years after the end of the Cold War, the West agreed on some right things, rhetorically praised these right things, but in reality grossly violated all the agreements and did everything to suppress the legitimate interests of Russia,” Lavrov said.

During the speech several foreign ministers from rival nations who have declared Moscow an enemy walked out of the room. This included the ministers of Ukraine, Czech Republic, and Poland.

Lavrov later in turn made a point of walking out of US Secretary of State Antony Blinken’s speech, as the Biden top envoy blasted Lavrov for a “tsunami of misinformation.”

US-Russia relations have reached near breaking point, but President-elect Trump, who will enter the White House again on Jan.20, is vowing a quick negotiated solution to the Ukraine war. This will require directly engaging President Putin, which some career military and State Dept. officials have been quick to criticize and reject.

Tyler Durden
Fri, 12/06/2024 – 04:15

Erdogan’s Idlib Shock Shadows “Kursk”

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Erdogan’s Idlib Shock Shadows “Kursk”

Submitted by Alastair Crooke of Conflicts Forum

‘Doomsters’ is an occasional Russian expression used to categorise commentators that only see the ‘dark side to events’ (a vice quite prevalent during the Soviet era). Marat Khairullin, a highly respected Russian military analyst, says, “Today, a network of mercenary war bloggers has begun another round of moaning – this time about Syria, where apparently everything is lost for Russia”.

“Many see the events in Syria (and some add Georgia to the mix) as attempts to open additional fronts against our country. Perhaps that’s true. But in that case, it’s more appropriate to draw direct parallels with the reckless attack on Kursk, which left the Ukrainian armed forces in an almost hopeless position”.

Khairullin views the activation of this jihadist insurgency in Syria as a similarly ‘desperate’ act. The background is that the Syria-Russia-Iran coalition had — thorough the Astana negotiations — “cornered the remaining Syrian terrorists into a 6,000 sq. km enclave. Without delving into the details, it was a process reminiscent of the [Ukrainian] Minsk Agreements—both sides were utterly exhausted and thus agreed to a ceasefire. Importantly, all sides understood this was only a temporary truce; the contradictions were so profound that no one expected the conflict to end”.

Aleppo fell quickly these past days, as “one division of the Syrian National Army outright defected to the Islamists (read: Americans)”. The defection was a set up. Northern Aleppo was occupied by the Syrian National Army, fully controlled, armed and funded by Turkey, which dominates northern Aleppo.

The key, Khairullin says, is this crucial point: The land is flat criss-crossed by few roads:

“ … whomsoever controls the airspace controls the country. Last year, Russia formed a new aerial unit called the Special Air Corps, reportedly tailored for overseas operations. It consists of four aviation regiments, including a regiment of Su-35s. Currently, just two Su-35s are overseeing the entirety of Syria’s territory. Imagine the impact when 24 such aircraft are deployed. And Russia is fully capable of such a deployment”.

The second crucial point is that “Iran and Russia have drawn closer. At the start of the Syrian war, relations between the two were decidedly ‘neutral-hostile’. By late 2024 however, we now see a very strong alliance. Israel and the US, by violating the peace agreements through this Turkish insurrection, have provoked a renewed Iranian presence in Syria: Iran has begun to expand beyond its bases, redeploying additional forces into the country. This gives Assad and his allies a direct pretext to expel the American and Turkish proxies from Aleppo and Idlib. This isn’t speculation — it’s straightforward arithmetic”.

Syria, however, is a key component to the Israeli-American plan to remake the Middle East. Syria is both the supply-line for Hizbullah, as well as a hub of resistance to Israel’s “Greater Israel Project”. Now that the permanent  ‘Anglo’ Security State unreservedly is backing Israel’s ambition to assert regional hegemony, the West has okayed Erdogan’s jihadist insurrection against President Assad. The aim is to split Iran from its allies, weaken Assad and to prepare for the putative Iran overthrow. Reportedly, the Turkish initiative was hurriedly brought forward, to fit with Israel’s ceasefire plan.

Khairullin’s point is that this Syria ‘ploy’ is akin to Ukraine’s “reckless attack on Kursk”, which diverted Ukrainian élite forces from the beleaguered Contact Line, and then marooned these forces in an almost hopeless position in Kursk. Instead of weakening Moscow (as intended), ‘Kursk’ inverted NATO’s original objective — by becoming opportunity to eradicate a major portion of Ukraine’s élite forces.

In Idlib, the Islamists (HTS), writes Khairullin, “had gained dominance – imposing a strict Wahhabi regime and infiltrating the Turkish-backed Syrian National Army. Both groups are patchwork organizations, with various factions fighting over money, border crossings, drugs, and smuggling. Essentially, it’s a cauldron—not very combat-effective but highly greedy”. 

“Our Aerospace Forces obliterated all command centres (bunkers) of Tahrir al-Sham … and there is a strong likelihood that the entire leadership of the group has been decapitated”, notes Khairullin.

The Syrian Army’s main forces are advancing toward Aleppo; meanwhile, the Russian Air Force is bombing relentlessly; its Navy held a large drill off the Syria cost on 3 December with test launches of hypersonic and Kalibr cruise missiles; and Wagner and the Iraqi Hash’ad forces (Iraqi PM forces that are now part of the Iraqi army) are grouping on the ground in support of the Syrian Army.

Israeli Intelligence Chief’s lately have begun to scent problems with this ‘clever initiative’ that dovetails so exactly with Israel’s pause in the Lebanon fighting; With the supply route from Syria cut, Israel then — in theory — would be in a position to commence ‘Part Two’ of its attempted onslaught on Hizbullah.  

But wait … Israeli Channel 12 reports the possibility that events in Syria are creating threats against Israel “where Israel would be required to act”.  

Shades of ‘Kursk’ — rather than Hizbullah being weakened, Israel adds to its military commitments? Erdogan too, may have wrong-footed himself with this gamble. He has infuriated Moscow and Tehran, and is being flailed at home for siding with the US and America against the Palestinians. Further, he has drawn no Arab support (apart from a Qatari studied ambivalence).

Yes, Erdogan has cards to play in the relationship with Putin (control of naval access to the Black Sea, tourism and energy), but Russia is an ascendant great power and can afford to play some hardball in negotiations with a weakened Erdogan. Iran also has cards to play: ‘You, Erdogan, equipped the jihadists with Ukrainian drones; We can deliver the same to the Kurdish Workers Party’.

In the background is the bellicose language emerging from Team Trump, some of whom take harshly aggressive and hardline positions. These Israel-Firster and hawkish appointees by Trump likely emit their bluster as much to project an image of Trumpist strength to the American public, as to project a substantive project. 

Trump is known for waving a big stick — and when he has played that tune for a little while, he slips in from behind, to complete a deal. 

So we have had (from Trump): “If the hostages are not released prior to January 20, 2025, the date that I proudly assume Office as President of the United States, there will be ALL HELL TO PAY in the Middle East”.  

In the ‘Middle East’? To whom exactly is this addressed? And what does it suggest? (No mention of the thousands of Palestinian detainees and prisoners held by Israel)? Sounds more like Trump has sipped at the Israeli Kool-Aid: ‘All problems derive from Iran’; Israel is the innocent adrift a sea of regional malignity.  

Trump’s disciples believe Trump will impose his will to achieve ‘quiet’ in the Middle East — and impose on Putin an end to the Ukraine War. They are convinced Trump can ‘cut a deal’ in the form of an offer to Putin that he cannot refuse. (For, ‘the current ‘owners of the world’ are never going to let China/Russia just waltz in, form BRICS and assume the position of World Hegemon’).

It is a return to the old formula of Zbig Brzezenski: Promise Putin normalisation with US (and Europe) and full sanctions relief, and pull Russia back into the western sphere — severed from a besieged China and Iran (with BRICS scattered to the wind under threat of sanctions).

It fails, however, to take account of how much the world has transitioned in the intervening years since ‘Trump One’. Bluster simply doesn’t carry the effect it used to: America isn’t what it was; nor is it obeyed as it once was. 

Does Trump understand this accelerating global metamorphosis (as Will Schryver puts it), that “the only deal to be made with Russia is that of agreeing to the terms Russia dictates”:

“That’s what happens in the real world when you win a big war. And make no mistake, in this war, the Ukrainians have been slaughtered, the US/NATO has been humiliated, and the Russians are emerging from it indisputably triumphant, and more powerful on the world stage than they have been since the peak of Soviet strength decades ago”.

In other words, ‘big stick; quick deal’ may not answer to the new world of today.

Putin, in response to a questioner at Astana on 29 November, repeated an earlier warning: “Let me underscore the key point: the essence of our proposal [on Ukraine, given at the Russian Foreign Ministry] is not a temporary truce or ceasefire, as the West might prefer – to allow the Kiev regime to recover, rearm, and prepare for a new offensive. I repeat: we are not discussing freezing the conflict, but its definitive resolution”.

What Putin is saying — very politely — to the West is that: You still ‘don’t get it’. To seek a deal on Ukraine is to treat the symptom and to ignore a cure. The West has its policy back-to-front, in other words. Putin is clear: A definitive solution would be to delineate the frontier between Atlanticist security ‘interest’ and the security interests of the ‘World Island’ (in Mackinder’s terminology): i.e. to settle the security architecture between the ‘Heartland and the Rim-land’. Once that is done, Ukraine falls naturally into its place. It’s at the end of the agenda, not first.

One highly-regarded foreign policy sage, Professor Sergei Karaganov, explains (original only in Russian): 

“Our [Russian] goal is to facilitate the U.S.’s incipient retreat, as peaceably as possible, from the position of global hegemon (which it can no longer afford) to the position of a normal great power.  And to expel Europe from being any international actor.  Let it stew in its own juices …The conclusion is obvious. We must end the current phase of direct military conflict with the West, but not the broader confrontation with it. Trump will offer to ease pressure on Russia (which he cannot guarantee) in exchange for Russia refraining from a close alliance with China. The Trump administration will propose a deal, alternating threats with promises … but the U.S. already understands that it cannot win.  America will remain an unreliable partner for the foreseeable future. Fundamental normalization of our relations with the U.S. should not be expected in the coming decade.  Trump’s hands are tied by the Russophobia fanned by liberals for years. The inertia of the Cold War is still quite strong, and so are anti-Russian feelings among most Trumpists”. 

“The foremost goal of the current war should be the decisive defeat in Ukraine of Europe’s rising revanchism. This is a war to ward off World War III and to prevent the restoration of the Western yoke. The initial negotiating position is obvious, it has been stated and should not be changed: NATO’s return to its 1997 borders. Beyond that, various options are possible. Naturally, Trump will try to up the ante. So, we should act pre-emptively”, Professor Karaganov advises.

Recall too, that Trump is, at heart, a sworn disciple of the cult of American primacy; American greatness. “He will act accordingly … The Russians will dictate the terms of surrender in this [Ukraine] war because their strength affords them that privilege, and there is nothing the US and its impotent European vassals can do to alter that reality. That said, a decisive strategic defeat is going to be a very bitter pill to swallow for this second Trump administration. Hopefully they won’t opt to set the world on fire in a fit of humiliated madness”.

To receive Alastair Crooke’s articles regularly, please sign up to his substack page: https://conflictsforum.substack.com 

Tyler Durden
Fri, 12/06/2024 – 03:30

Russia Closes Polish Consulate As Warsaw Accuses Moscow Of ‘Sabotage, Terrorism’

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Russia Closes Polish Consulate As Warsaw Accuses Moscow Of ‘Sabotage, Terrorism’

Polish-Russian relations have continued to spiral toward complete non-existence, and the two sides have long been on the brink of breaking off official relations altogether.

Most of the tit-for-tat actions over the past couple years have focused on mutual accusations of spying. Currently, Poland is threatening to shutter all Russian consulates on Polish soil over espionage and ‘terrorism’.

St. Petersburg, Russia. 

On Thursday Russia ordered the closure if the Polish consulate in St. Petersburg and told its diplomats to immediately leave the country, in the latest escalation.

“Three diplomatic staff members of the Consulate General of the Republic of Poland in St. Petersburg have been declared persona non grata,” the Russian Foreign Ministry announced.

This move is being described as in retaliation for the prior closure of a Russian consulate in the Polish city of Poznan in the western part of the NATO country. The Kremlin has further cited Poland’s “openly hostile policy” toward Moscow as a reason behind the move.

Poland and EU states have accused Moscow of “intimidation, the instrumentalization of migrants, sabotage, disinformation, foreign information manipulation and interference.”

As for a potential new response from the Polish government, a statement has warned:

“If acts of diversion and terrorism continue, I will close down the rest of the Russian consulate presence in Poland,” Foreign Minister Radoslaw Sikorski told reporters after Moscow announced the closure of its St. Petersburg consulate.

On the military front, some Polish top officials have recently argued that the country’s military should be actively intercepting Russian missiles threatening Ukrainian territory, especially ones that fly close to Poland’s border in the region of Western Ukraine.

Poland has generally been among the most hawkish Western allies when it comes to escalating support to Kiev forces in Ukraine.

Warsaw has throughout the conflict played host to a build-up of Western weapons along NATO’s ‘eastern flank’ – and Moscow has especially been alarmed that US missiles have been placed in northern Poland in the Baltic Sea region.

Tyler Durden
Fri, 12/06/2024 – 02:45

48% Of French People Want Zero Immigration

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48% Of French People Want Zero Immigration

Via Remix News,

A new poll shows that nearly a majority of French people do not want any immigration at all, both legal and illegal.

The poll from CSA, which was conducted for Europe 1, CNews and the Journal du Dimanche, showed that 48 percent of French people want zero immigrants coming — that means not a single migrant entering French territory. That is a 7-point jump compared to the same poll conducted in October 2021. In that previous poll, only 41 percent of French said they were in favor of zero immigration.

Notably, the poll shows that young people and women — the two groups arguably most affected by mass immigration — are quickly turning against the idea of more immigrants. In fact, more women were in favor of zero migration than men, with 53 percent of women in favor versus 44 percent of men. In France, the professionals and white-collar class, designated as (CSP+), shows that 45 percent of this group wants zero immigration.

The highest percentage for zero immigration were 18-24 year-olds, with 55 percent of these French youth for zero immigration. Meanwhile, the lowest support was among the 65+ group, with 54 percent of this group being against the policy of zero migration.

The 25-34-year-old group was at 49 percent in favor of zero migration, 5-49-year-olds at 48 percent and, 50-64-year-olds at 51 percent.

As was seen in national elections earlier this year, it was the baby boomers that saved French President Emmanuel Macron from electoral defeat, with this group overwhelmingly voting for the pro-migration president. In turn, the anti-immigration Marine Le Pen over-performed with the youth. However, currently polling shows that she is the most popular candidate in the country and if elections were held today, she would be chosen as France’s new leader. She is, however, facing a criminal trial that could bar her from electoral politics — a move criticized as a disaster for democracy.

The poll also found that 82 percent of National Rally supporters want zero immigration, while for the left parties combined — PS, the Greens, and LFI — only 21 percent were for zero immigration and 79 percent were against.

Overall, a majority were against zero immigration, coming in at 51 percent, while only 1 percent were undecided. However, it is important to note that the poll only asks about zero immigration. There may be, for example, voters who are against the idea of zero immigration who are still in favor of strict immigration controls in France, the deportation of illegal migrant criminals, and other harsh measures against immigration while not necessarily supporting a complete stop to immigration. Notably, other polls have shown strong majorities in support of immigration restriction, above 70 percent in many cases.

The fact that nearly a majority support a complete and total halt to all immigration signals that French society is strongly anti-immigration, and there are even larger majorities for strict immigration controls and caps on migrant numbers. Some of those opposing a halt to all immigration may also be in favor of, for example, a complete cut to illegal immigration or even a halt to all non-EU immigrants.

Read more here…

Tyler Durden
Fri, 12/06/2024 – 02:00

Underwater Geopolitics

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Underwater Geopolitics

Authored by Carlo J.V.Caro via RealClearWire.com,

How China’s Control of Undersea Cables and Data Flows Reshapes Global Power

Cable Routing Protocols

The rapid construction of undersea cables has brought a hidden but crucial issue into focus: the manipulation of the protocols that control how data travels beneath the sea. These protocols determine the pathways internet data takes, influencing speed, costs, and even exposure to surveillance. Even small changes in these pathways can tilt the global balance of digital power. China’s increasing role in this area demonstrates how technology can be used strategically to reshape geopolitics.

At the heart of this issue is a technology called Software-Defined Networking (SDN). SDN allows data traffic to be managed and optimized in real time, improving efficiency. But this same flexibility makes SDN vulnerable to misuse. Chinese tech companies like HMN Tech (formerly Huawei Marine Networks), ZTE, and China Unicom are leading the way in SDN development. China also holds sway in international organizations that set the rules for these technologies, such as the International Telecommunication Union (ITU) and the Institute of Electrical and Electronics Engineers (IEEE). This influence gives China a hand in shaping global standards and governance.

Africa illustrates how this influence plays out. Chinese investments in digital infrastructure across the continent are massive. For example, the PEACE (Pakistan and East Africa Connecting Europe) cable, which links East Africa to Europe, was designed to avoid Chinese territory. Yet, thanks to SDN technology, its traffic can still be redirected through Chinese-controlled points. This redirection could introduce delays of 20 to 30 milliseconds per hop—not much for casual browsing, but a serious issue for latency-sensitive activities like financial trading or encrypted communication.

In Southeast Asia, similar risks are evident. The Southeast Asia-Japan Cable (SJC), which connects Singapore to Japan, relies on several landing stations influenced by China. During a period of heightened tensions in the South China Sea, some data intended for Japan was mysteriously routed through Hainan Island, under Chinese jurisdiction. Such cases suggest technical routing decisions may sometimes have political motivations.

These examples are part of a broader strategy. By exploiting SDN, China can turn submarine cables into tools for surveillance and control. Data traffic from Africa or Southeast Asia destined for Europe could be secretly rerouted through Shanghai or Guangzhou, exposing it to China’s advanced surveillance techniques like deep packet inspection. This threat extends to cloud computing, as major providers such as Amazon Web Services (AWS), Microsoft Azure, and Alibaba Cloud rely on undersea cables. With SDN, Chinese cloud providers—aligned with state interests—could redirect sensitive inter-cloud traffic, putting critical communications at risk.

Manipulating global data routes gives any actor significant geopolitical power. For instance, in a crisis, China could degrade or even sever internet connectivity for rival nations. In the Taiwan Strait, this could isolate Taiwan from global markets, disrupting financial transactions and trade. In Africa, where Huawei has built a significant portion of the continent’s telecommunications infrastructure—reportedly constructing around 70 percent of 4G networks—there is concern that this reliance could create vulnerabilities. If political tensions were to arise, China could cause slowdowns or disruptions to reinforce dependence, making countries more vulnerable in political standoffs.

The numbers highlight the stakes. Submarine cables carry 99 percent of international data traffic—over 1.1 zettabytes annually. Significant portions of intra-Asia-Pacific data flows pass through key submarine cable landing stations, including Hong Kong, which is under Chinese jurisdiction. With Chinese firms increasingly involved in substantial global submarine cable projects—such as those undertaken by HMN Technologies—Beijing’s influence over the internet’s physical backbone is growing.

The economic impact of internet disruptions on highly connected economies is substantial. For instance, the NetBlocks Cost of Shutdown Tool (COST) estimates the economic impact of internet disruptions using indicators from the World Bank, ITU, Eurostat, and the U.S. Census. According to data presented by Atlas VPN, based on NetBlocks’ COST tool, a global internet shutdown for one day could result in losses of about $43 billion, with the United States and China accounting for nearly half of this sum. Additionally, Deloitte has estimated that for a highly internet-connected country, the per-day impact of a temporary internet shutdown would be on average $23.6 million per 10 million population.

A deliberate attack on routing protocols could cause widespread financial and operational chaos. In today’s interconnected world, where digital infrastructure underpins economic stability, the ability to manipulate undersea cable traffic represents a subtle but powerful geopolitical weapon.

Addressing this threat goes beyond simply building more cables. It requires rethinking how routing protocols are governed. Transparent global standards must ensure no single country or company can dominate these systems. Routine independent audits should be conducted to detect anomalies that may signal interference. Efforts like the European Union’s Global Gateway initiative and Japan’s Digital Partnership Fund must focus on creating alternative routes to reduce reliance on Chinese-controlled nodes.

This issue highlights a new reality in global politics: control over data flows is becoming a key form of power. While most attention has been on building physical infrastructure, the quiet manipulation of routing protocols marks an equally profound shift in global influence. To protect the integrity of the internet, the world must act decisively at both technical and governance levels.

Fiber-Optic Cable Repair Networks

China’s disproportionate control over fiber-optic cable repair networks reveals potential vectors for intelligence dominance, coercive leverage, and disruption of digital sovereignty. Globally, an estimated 60 dedicated cable repair ships service the planet’s 1.5 million kilometers of submarine cables. China controls a substantial percentage of the fleet, including ships operated by state-affiliated enterprises like Shanghai Salvage Company and China Communications Construction Group. In contrast, the United States and its allies maintain a small patchwork fleet, mostly concentrated in the North Atlantic and lacking coverage in the Indo-Pacific, where over 50 percent of global internet traffic routes through key subsea cables.

China’s fleet is heavily concentrated in the South and East China Seas, regions critical to global connectivity due to chokepoints like the Singapore Strait and the Luzon Strait. With maritime exclusivity bolstered by China’s claims in disputed waters, its repair ships have nearly unrestricted access to monitor, repair, or potentially tamper with cables under the guise of routine maintenance.

Repair missions involve exposing critical cable infrastructure, including repeaters, amplifiers, and branch units—hardware that boosts signal strength over long distances but also represents points of vulnerability. Chinese vessels are equipped with advanced robotic submersibles and precision cutting-and-splicing technologies, designed for repairs but capable of installing signal interception devices. Such tools could include optical fiber taps capable of harvesting unencrypted metadata or capturing latency patterns to infer sensitive traffic flow.

China’s advancements in photonics and quantum communication technologies underscore its capacity to exploit these vulnerabilities. The Chinese Academy of Sciences has reported significant breakthroughs in quantum key distribution (QKD) systems, raising the possibility of developing quantum-based methods to crack encrypted data intercepted during repairs. Integration of AI-driven data sorting tools could automate the extraction and classification of intercepted information, rendering bulk data acquisition during repairs a strategic advantage.

The high seas, where many repair operations occur, are governed by fragmented international frameworks like the United Nations Convention on the Law of the Sea (UNCLOS), which inadequately regulate activities involving critical infrastructure. The International Cable Protection Committee (ICPC) provides voluntary guidelines for repair operations, but enforcement mechanisms are weak, leaving the system vulnerable to exploitation by state actors.

Repair missions are often classified as “emergency operations,” requiring expedited approvals that bypass detailed oversight. In one case, a cable break in the South China Sea in 2021 prompted Chinese repair ships to operate without transparency for over three weeks, raising concerns about potential covert activities. These incidents are rarely reported, as they fall outside the jurisdiction of most maritime monitoring bodies.

The lack of countermeasures by the United States and its allies amplifies the risks posed by China’s dominance. The U.S. Navy operates no specialized repair ships, relying on private operators like Global Marine Group, whose fleet is aging and ill-equipped for operations in contested waters. This contrasts with China’s state-backed model, integrating its repair fleet into broader maritime networks, providing dual-use functionality for civilian and military objectives.

The financial model of undersea cable operations further constrains Western responses. Submarine cables are predominantly privately owned, with firms like Google, Meta, and Amazon investing heavily in infrastructure but lacking incentives to prioritize geopolitical considerations. This privatization leaves strategic gaps in surveillance and monitoring, as governments must negotiate access to privately controlled repair missions.

To mitigate China’s strategic advantage, a multipronged response is essential. The United States and its allies must develop state-owned or state-subsidized repair fleets to operate in contested regions like the South China Sea and Indian Ocean. Enhanced maritime surveillance systems, such as underwater drones and sonar-based monitoring arrays, should be deployed to track repair ship movements in real time.

Revising international frameworks by expanding ICPC mandates to include mandatory reporting of repair operations could curb opacity. Collaboration with regional partners, particularly nations in the Quad (Australia, India, Japan, and the United States), could bolster collective maritime domain awareness and create redundancies in cable repair capabilities.

Maritime Data Through Automated Vessel Tracking

China’s exploitation of automated vessel tracking systems exemplifies a sophisticated component of its global digital strategy. At the heart of this initiative lies the Automatic Identification System (AIS), a maritime safety technology mandated by the International Maritime Organization (IMO) for vessels exceeding 300 gross tons engaged in international trade. While originally intended to improve navigational safety by broadcasting vessel identities, locations, courses, and cargo details, AIS has been effectively repurposed by Beijing into a dual-use asset that supports both economic intelligence gathering and military surveillance.

Chinese firms, including the BeiDou Navigation Satellite System and Alibaba Cloud, have developed advanced platforms that aggregate AIS transmissions from shipping lanes worldwide. These platforms integrate AIS data with artificial intelligence-driven predictive analytics, enabling Beijing to monitor and analyze global maritime chokepoints such as the Strait of Malacca, the Panama Canal, and the Suez Canal—key arteries of international commerce. By doing so, China gains critical insights into global shipping patterns, strategic trade routes, and supply chain dynamics. As of 2023, the global merchant fleet comprised around 60,000 ships.

During the 2021 Suez Canal blockage, Chinese logistics firms, leveraging real-time AIS data, rapidly identified alternative routes through the Arctic and along the Indian Ocean, allowing Chinese exporters to reroute goods while Western competitors faced delays. Similarly, in the Strait of Malacca, a waterway facilitating the transit of over 16 million barrels of oil daily and 40 percent of global trade, Chinese analysts have used AIS data to optimize resource flow, preempt congestion, and study vulnerabilities in energy supply routes.

AIS data plays a pivotal role in China’s military strategy, especially in the Indo-Pacific. By combining AIS information with satellite imagery and data from undersea acoustic arrays, China has established a surveillance network capable of tracking naval deployments with precision. AIS data has been used to monitor patrol patterns of the U.S. Navy’s Seventh Fleet, revealing that over a third of its South China Sea operations in 2022 followed predictable routes. This surveillance allows the People’s Liberation Army Navy (PLAN) to anticipate U.S. Freedom of Navigation Operations (FONOPs) and position its assets accordingly.

China’s manipulation of AIS extends to conflict simulations and asymmetric warfare. During military exercises near Taiwan in 2023, Chinese forces reportedly deployed unmanned surface vessels programmed to mimic civilian AIS signals, complicating the identification of hostile assets.

Through its Digital Silk Road initiative, Beijing has exported various forms of maritime technologies that incorporate Automatic Identification System (AIS) capabilities. China often provides financial incentives to promote the adoption of its technologies abroad, which may enhance its access to regional maritime data. This asymmetry grants China an informational advantage and risks reshaping maritime transparency norms in its favor.

Rare Subsea Mapping Data

China’s increasing investment in subsea mapping has positioned it as a significant player in oceanographic intelligence, impacting scientific, commercial, and military domains. China has been actively mapping its claimed maritime territories using state-funded research vessels and autonomous systems. These efforts contribute to international initiatives like the Nippon Foundation-GEBCO Seabed 2030 project, which aims to map the entire global seabed by 2030 and had mapped approximately 23.4 percent as of June 2022 with international contributions. China’s activities extend to strategic regions in the Indo-Pacific, the Arctic, and the Indian Ocean, raising concerns over the dual-use potential of its data collection.

Subsea mapping data is critical for submarine cable routing, undersea infrastructure development, and naval operations. China’s repository of high-resolution bathymetric maps—including surveys of key chokepoints like the Strait of Malacca and the Bashi Channel—provides a tactical edge. These chokepoints are vital for global trade and serve as strategic naval passages for power projection and anti-access/area-denial operations. The People’s Liberation Army Navy uses seabed data to optimize the placement of undersea sensor arrays, critical for its “Great Underwater Wall” initiative, integrating hydroacoustic monitoring to detect foreign submarines.

China’s advancements in autonomous underwater vehicles (AUVs) enhance its capabilities. In 2021, the Hailong III and Qianlong II AUVs were deployed for deep-sea mapping missions in the South China Sea, gathering data at depths over 6,000 meters. These AUVs have multi-beam sonar systems achieving sub-meter resolution, surpassing commercial standards. Their ability to operate autonomously over long durations allows China to map intricate undersea topographies critical for resource exploration and undersea warfare.

China has used seabed mapping as a diplomatic tool to extend influence over smaller nations. Through its Maritime Silk Road Initiative, Beijing has signed agreements with over 20 countries, granting Chinese research vessels access to Exclusive Economic Zones (EEZs). Between 2015 and 2022, Chinese expeditions in Pacific Island nations’ EEZs often involved dual-use mapping activities.

In 2019, the Chinese survey vessel Haiyang Dizhi 8 conducted seismic surveys near the Vanguard Bank within Vietnam’s Exclusive Economic Zone (EEZ), collecting bathymetric data that aligns with key undersea routes potentially useful for submarine operations. This incursion led to a tense standoff with Vietnam, drawing international criticism over China’s assertive actions and raising concerns about the dual-use potential of the data collected. Similarly, in 2018, China’s proposed involvement in undersea cable projects connecting Papua New Guinea and the Solomon Islands through Huawei Marine raised significant security concerns. Fearing risks to the security of undersea communication cables and potential espionage, Australia intervened by funding and undertaking the projects themselves, highlighting apprehensions about granting Chinese entities access to critical seafloor data in the region.

China’s seabed mapping strategy has significant military implications, particularly in the South China Sea. In this region, where China has constructed artificial islands such as Fiery Cross Reef, Subi Reef, and Mischief Reef, high-resolution seabed data enables precise deployment of missile systems, naval patrols, and underwater drones. Detailed seabed mapping supports the construction and fortification of these islands, allowing for the installation of surface-to-air missiles, anti-ship cruise missiles, and the operation of military airstrips. Additionally, China’s deployment of unmanned underwater vehicles like the Sea Wing (Haiyi) gliders enhances their ability to collect oceanographic data crucial for submarine navigation and anti-submarine warfare. These activities have raised concerns among neighboring countries and the international community about the dual-use potential of China’s maritime endeavors and their impact on regional security.

By controlling seabed mapping data, China influences submarine cable networks, which carry 95 percent of global internet traffic and $10 trillion in daily financial transactions. China’s involvement in projects like the South Pacific Cable Project through state-owned China Mobile led to concerns over data interception capabilities. Its presence in Arctic seabed mapping, facilitated by icebreaker vessels like Xuelong 2, underscores ambitions to secure alternative maritime routes and resources under the guise of scientific research.

China’s approach to subsea mapping data has raised concerns about transparency and shared access in the global community. While international initiatives like the Seabed 2030 Project encourage open sharing of ocean floor data to advance scientific research and environmental understanding, China has been criticized for not fully sharing the extensive seabed data it collects. For example, much of the data gathered by Chinese vessels in international waters is not readily available in global databases like those managed by the International Hydrographic Organization (IHO) or the General Bathymetric Chart of the Oceans (GEBCO). This selective sharing limits other nations’ ability to leverage valuable information and contrasts with global norms promoting cooperation and transparency in oceanographic research.

Tyler Durden
Thu, 12/05/2024 – 23:25

Will Trump Keep Or Break His Vow To Release The Secret JFK Records?

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Will Trump Keep Or Break His Vow To Release The Secret JFK Records?

Authored by Jacob Hornberger via The Future of Freedom Foundation,

In October 2022, the Mary Ferrell Foundation filed a lawsuit in federal court seeking the release of the JFK-assassination-related records that the CIA and other federal agencies have succeeded in keeping for more than 60 years. The foundation’s suit was based on the notion that the JFK Records Act of 1992 mandated the release of those records.

Not surprisingly, the CIA, operating through the Justice Department, fiercely opposed the lawsuit. It argued that “national security” required the continued secrecy of those 60-year-old records, even into perpetuity.

Recently, the Ninth Circuit federal Court of Appeals made it clear that it was siding with the government and keeping these records secret. See “Court Ruling Begs the Question, Is the JFK Records Act Dead?” by Chad Nagle, which is posted on the website of JFK Facts.

That certainly doesn’t surprise me.

While I greatly admire the people and attorneys who brought the lawsuit, I never had much hope that any federal judge, including those on the U.S. Supreme Court, would dare to buck the national-security establishment, especially on something like this.

Meanwhile, a member of Congress is proposing to bring into existence a new version of the Assassination Records Review Board, the independent agency that was charged with enforcing the JFK Records Act back in the 1990s. The ARRB did a fantastic job in securing the release, oftentimes over the fierce objections of the Deep State, of thousands of assassination-related records that the CIA, Pentagon, Secret Service, and other Deep State agencies had succeeded in keeping secret for more than 30 years.

Unfortunately, however, the JFK Records Act gave those federal agencies an additional 25 years of secrecy on thousands of records, on grounds of “national security,” while letting the ARRB go out of existence. That meant that when those 25 years were up, there was no federal agency in existence to enforce the law.

Will Congress bring into existence another ARRB? In my opinion, there isn’t any reasonable possibility of that happening. That’s because Congress is even more deferential to the national-security branch of the federal government than the federal judiciary is. The members of Congress know what will happen if they buck the Pentagon or the CIA: they will be threatened with closure of military bases and installations within their district, thereby making them “ineffective” members of Congress. Moreover, there is now a large number of proud military veterans and “former” CIA officials now serving in Congress who remain fiercely loyal to the national-security establishment. In my opinion, there is no reasonable possibility that this military-intelligence-congressional complex is going to help secure the release of those long-secret assassination-related records, given that the Deep State continues to fiercely oppose disclosure.

Given that President Biden has authorized the CIA and other federal agencies to keep their assassination-related records secret into perpetuity, there is, of course, no reasonable possibility that he will change his mind before leaving office (as he has done with his pardon of his son Hunter).

That leaves President-elect Donald Trump. In his campaign for reelection, he vowed to release the long-secret JFK-assassination records this time around. As you’ll recall, the last time he was president, he announced that he intended to release them when that 25-year period came due during his administration. But once he received a visit from the CIA, Trump quickly changed his mind and ordered that the records continue to be kept secret.

This time around, Trump’s supporters say that he has changed. This time, they say, he really is going to stand up to the Deep State and fulfill his vow to release those long-secret JFK-assassination-related records — no matter what the CIA, the Pentagon, and other federal agencies say. They say that his friendship with Robert F. Kennedy, Jr., will motivate him to keep his vow.

Okay, so let’s make it easy for Trump to fulfill his vow to get those long-secret JFK-assassination-related records released. All he has to do is prepare an order right now — before he is sworn into office — that will be good-to-go on his first day in office.

In fact, to make things easier and faster for him, I have prepared the following proposed order.

ORDER

I, President Donald Trump, hereby order the National Archives, the CIA, the Pentagon, the Secret Service, and all other federal agencies to immediately release and disclose all their records relating to the 1963 assassination of President John F. Kennedy, including the removal of all redacted portions of all such records. After more than 60 years of secrecy, enough is enough. No more secrecy.

Signed this 20th day of January 2025.
___________________________________
Donald Trump, President

Will Trump fulfill or break his vow to release such records by issuing that type of order? My prediction: Trump will join the federal judiciary and the Congress and, once again, defer to the Deep State. He will break his vow, either by ignoring it indefinitely or by, once again, ordering only a partial release of some of the records, including letting the CIA and other federal agencies keep portions of their long-secret records redacted.

All he has to do is print it, sign it, and publish it on his first day in office.

Tyler Durden
Thu, 12/05/2024 – 22:35

Full Lavrov-Tucker Interview: US & Russia Need To Cooperate ‘For The Sake Of The Universe’

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Full Lavrov-Tucker Interview: US & Russia Need To Cooperate ‘For The Sake Of The Universe’

Tucker Carlson first unveiled Wednesday that he had traveled to Moscow to interview Russian Foreign Minister Sergey Lavrov, and the full interview has subsequently been published Thursday night.

Among the most important messages conveyed was directed by Lavrov toward Washington and its allies, which “must understand that we would be ready to use any means not to allow them to succeed in what they call strategic defeat of Russia.”

And referencing Russia’s recent use of its Oreshnik hypersonic missile, Lavrov expressed hope that Kiev’s backers took “seriously” the new weapon, for which Russia says there is no defense, as Moscow remains ready to use “any means” to defend itself. “We are sending signals and we hope that the last one, a couple of weeks ago, the signal with the new weapons system called Oreshnik… was taken seriously,” Lavrov emphasized. Full interview:

The very opening question posed by Tucker got straight to the main point which is surely on the minds of many viewers:

Tucker Carlson: Minister Lavrov, thank you for doing this. Do you believe the United States and Russia are at war with each other right now?

Sergey Lavrov: I wouldn’t say so. And in any case, this is not what we want. We would like to have normal relations with all our neighbors, of course, but generally with all countries especially with the great country like the United States. And President Vladimir Putin repeatedly expressed his respect for the American people, for the American history, for the American achievements in the world, and we don’t see any reason why Russia and the United States cannot cooperate for the sake of the universe.

Tucker Carlson: But the United States is funding a conflict that you’re involved in, of course, and now is allowing attacks on Russia itself. So that doesn’t constitute war?

Sergey Lavrov: Well, we officially are not at war. But what is going on in Ukraine is that some people call it hybrid war. I would call it hybrid war as well, but it is obvious that the Ukrainians would not be able to do what they’re doing with long-range modern weapons without direct participation of the American servicemen. And this is dangerous, no doubt about this.

We don’t want to aggravate the situation, but since ATACMS and other long-range weapons are being used against mainland Russia as it were, we are sending signals. We hope that the last one, a couple of weeks ago, the signal with the new weapon system called Oreshnik was taken seriously.

In the context of these statements he invoked the undesired and catastrophic possibility of the standoff between Russia and NATO entering nuclear territory:

“The message which we wanted to sell in testing, in real action, this hyper sonic system is that we will be ready to do anything to defend our legitimate interest. We hate even to think about war with the United States which will take nuclear character… [but] since some people in Washington … seem to be not very capable to understand [Russia’s interests], we will send additional messages if they don’t draw necessary conclusions.”

And other interesting moment came when the top Russian diplomat outlined his country’s motives in Ukraine vs. Washington’s…

“They fight to maintain global hegemony over every region, while we fight for our legitimate security interests. Senator Lindsey Graham even said Ukraine’s rare earth metals must not be left to Russia—openly admitting their goal is resource exploitation. They support a regime willing to give away natural and human resources. We fight for the people whose ancestors built and developed these lands for centuries.”

“In any case, this is not what we wanted,” he elsewhere said on the question of war. “We would like to have normal relations with all our neighbors—but generally, with all countries, especially a great country like the United States.”

…”We don’t see any reason why Russia and the United States cannot cooperate together for the sake of the universe,” Lavrov emphasized in a key moment.

* * *

Some highlights…

“An Invitation to Disaster”: Sergey Lavrov commented on talk of a limited exchange of nuclear strikes between the US and Russia in the interview…

Escalation fears… the central question

Russia’s real key condition for lasting peace in Ukraine

Biden administration is seeking to leave as big a mess at it can for incoming Trump administration

The permanence of the Russia-China alliance in the face of Washington aggression

Cooperation for the sake of the peace of the universe

Continue by watching the full interview here.

Tyler Durden
Thu, 12/05/2024 – 22:10