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West Bank Annexation ‘Of Course’ A Possibility, Says Trump’s Israel Envoy Pick Huckabee

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West Bank Annexation ‘Of Course’ A Possibility, Says Trump’s Israel Envoy Pick Huckabee

Mike Huckabee, announced Tuesday as the incoming Trump administration’s designated US Ambassador to Israel, spoke to Israel’s Army Radio in a short interview Wednesday morning.

He issued some surprisingly bold statements, amid controversy from some corners of US Congress who are alarmed at the choice, given he has long been among the most staunch and hardline supporters of Israel. He spelled out that he is on board with a complete Israeli annexation of the occupied West Bank, if that’s what Trump policy leaders decide.

“I’m kind of in shock. It’s been an unusual and wonderful day all at the same time. And I’m just incredibly honored that the president would ask me to serve in this capacity,” Huckabee said at the start of the interview.

The Israeli Army show host probed and pressed him on what might be the most forward-looking changes that President-elect Donald Trump might bring to US-Israel relations.

Currently, there are a handful of hardline Israeli ministers who have gone so far as to call for declaring the West Bank as Israeli sovereign territory.

Among the most outspoken are Finance Minister Betzalel Smotrich and National Security Minister Itamar Ben-Gvir. Smotrich recently declared that “now is the time” to declare Israeli sovereignty over Palestinian territories, especially the West Bank.

Huckabee in the Wednesday morning interview, which appears to be his first since being tapped as Israeli ambassador, began with “I have been, as you know, a frequent visitor to Judea and Samaria.” His reference was to what is internationally known as the West Bank. Israel chooses to use the ancient biblical names of Judea and Samaria.

“I also very much believe that the people of Israel deserve a secure and safe country, and anything I can do that will help accommodate that is going to be a great privilege for me,” he added.

But that’s when Army Radio’s Yanir Kozin – sensing that Huckabee was choosing his words and response very carefully, again pressed Huckabee. The former Arkansas governor was asked what his true opinion on the matter of Israel taking over the West Bank, and he responded as follows:

“Well, of course. And you know, I won’t make the policy. I will carry out the policy of the president. But he has already demonstrated in his first term that there’s never been an American president that has been more helpful in securing, uh, an understanding of the sovereignty of Israel from the moving of the embassy, recognition of the Golan Heights and Jerusalem as the capital. No one has done more than President Trump. And I fully expect that will continue,” said Huckabee.

As for the question of recognition of any future settlements in the Gaza Strip, where the army is in the midst of a more than year-long anti-Hamas operation, Huckabee explained, “Well, I haven’t had time to process that…As I say, today has been a pretty intense day of just fielding hundreds, literally hundreds of calls, emails, text messages.”

He continued, “So, you know, I don’t want to make any comments about policy because those won’t be mine to make. That’ll be the president’s. And it will be my job to carry out the policy that he prescribes.”

Map via CDC

Interestingly and controversially, some Israeli officials have hinted at Tel Aviv’s potential pursuit of a ‘Greater Israel’ project – something which has been talked about openly since the 1980s. American neocon policy officials have also talked about this possibility since the 1990s.

A French language documentary recently got Smotrich on record as strongly suggesting he would like to eventually see Israel’s border expand to Damascus: 

Smotrich stated that “it is written that the future of Jerusalem is to expand to Damascus,” adding ominously “only Jerusalem, until Damascus.”

Such rhetoric from top-ranking Israeli officials is sure to only perpetuate the war. Israel is not only at war in Gaza, but is conducting a ground and aerial offensive in southern Lebanon, with strikes extending even into the north and central of the country, with heavy strikes on Beirut. The last week has also witnessed at least four significant air raids of Syria as well, mostly focused on the Damascus suburbs, where Israel says Iran’s military has a presence.

Tyler Durden
Wed, 11/13/2024 – 22:10

Peter Schiff: The Fed Is Trying To Save Itself At Your Expense

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Peter Schiff: The Fed Is Trying To Save Itself At Your Expense

Authored by Peter Schiff via SchiffSovereign.com,

Well, inflation is up again. You’re probably not surprised, and neither are we.

Over the past few months, in fact, we’ve repeated again and again that inflation will keep rising, and even identified some strange reasons why.

Remember back during the early days of the pandemic when used car prices went through the roof? Supply chain dysfunction and stay-at-home orders prevented the big auto manufacturers from producing too many new cars. So, demand for used cars surged… and used car prices shot to the moon.

But used car prices eventually started to fall back to earth. And throughout this year, the government inflation reports showed steep drops in used car prices– like 10 to 12% year-over-year declines.

We made two key points about this:

1) The big drop in used car prices was essentially dragging down the inflation average. Other prices, like housing, medical care, etc. were still rising by 5% or more. But after averaging in the negative 10% used car price declines, the overall inflation rate seemed to be falling.

2) We also said this would be temporary. Used cars could only fall for so long before they reached ‘normal’ levels. And once that happened, inflation would start to rise again.

This appears to have now happened.

During the summer, for example, used car prices fell 10.9% year-over-year in the month of July. Then in August, the year-over-year decline decelerated to -10.4%. Then the following month to -5.1%. Well, the October data was released just this morning, and used cars index fell 3.4%.

In other words, we’re almost at the end of the ‘used car deflation’ benefit that dragged down the government’s inflation report. So, it’s no coincidence that we also see inflation once again rising, from 2.3% in September to now 2.6% in October.

And there are plenty of categories that are WAY more that 2.6%, especially the things that people buy on a regular basis. Health insurance is up 6.8%. Car insurance is up 14%. Airfare is up 4.1%. Housing costs are up 5.2%. Daycare is up 6%.

Sure, there are obviously categories where prices have fallen. And congratulations if you were in the market for a men’s sport coat last month– you paid 5.9% less. Plus, the all-important “dishes and flatware” category plunged 7.4%.

But these hardly make up for the big price hikes in the key categories that are essential to most people.

This is what makes the Fed’s policy actions so bizarre.

Last week they cut rates, again, for the second time this cycle… which is the OPPOSITE of what a central bank would normally do in the face of rising inflation.

In the same way that they pretended inflation was “transitory” throughout 2021, they are now asserting with equal vigor that the inflation beast has been tamed.

They’re so full of self-congratulatory hubris, in fact, that Fed Chairman Jerome Powell stated that he will refuse to step down if Donald Trump demands his resignation.

Bear in mind, Powell is the guy who totally missed inflation in 2021. I mean, he was MISTER Transitory. He failed to act in a timely manner and waited until mid-2022 to start hiking rates in earnest. He then failed to predict any negative consequences from the rate hikes– including the meltdown in the US banking system.

Powell even testified before Congress– just TWO DAYS before Silicon Valley Bank went bust last year– that he saw “nothing in the data” to suggest there were any risks to the Fed’s monetary policy decisions.

I would also point out that during Powell’s chairmanship, two of the most senior Fed officials were found to have been personally profiting from their monetary policy decisions through questionably timed stock trades. It was almost as if Nancy Pelosi was running the joint.

So, Powell– who has been consistently wrong in the most remarkable ways– now insists that he will NOT step down. Apparently, HE and HE ALONE can lead the Federal Reserve. And we’ve seen that arrogance before from Joe Biden, Tony Fauci, etc. It’s not a good look and doesn’t bode well for the Fed.

All that aside, it’s pretty clear that the Fed is in a bind. Inflation is rising, so they should realistically hike rates. But interest rates– even at current levels– are killing the federal government.

The US spent an unbelievable $1.1 trillion in the last fiscal year paying interest on the national debt. That will almost certainly increase for this current fiscal year. And if rates stay where they are now, the total interest bill will exceed $2 trillion in a few years.

That’s a pretty bad situation considering that interest rates are still relatively cheap on a historical basis.

But it’s not just the federal government. Current interest rates are also bad for banks.

Remember that banks across the United States bought mountains of Treasury bonds during the pandemic– at a time when interest rates were at record lows, and those bonds yielded as little as 5 basis points (i.e. 0.05%).

Thanks to the Fed’s interest rate hikes, those banks’ bond portfolios have tanked in value. (When interest rates go up, bonds lose value.) In fact, across the entire US banking system, the total unrealized bond losses exceed $500 BILLION. That’s about 20% of the total capital in the US banking system.

Naturally banks don’t want to take that hit. And the only way to unwind those losses is for interest rates to fall, i.e. the bonds once again increase in value. So, yeah, banks desperately want rate cuts too.

But the most important one is the Fed itself.

Just like banks across the country bought US government bonds during the pandemic, the Federal Reserve bought literally TRILLIONS of dollars of bonds. And their interest rate hikes have caused unbelievable losses to the Fed’s own bond portfolio.

How big are their losses? Roughly ONE TRILLION dollars.

In other words, the Fed is wildly, woefully insolvent. And at this point, they’re just out for self-preservation. Cutting rates is the only way to reduce those unrealized losses and prop up their solvency, even if that means more inflation… or even stagflation that could be worse than the 1970s.

That is especially significant since, during his last press conference, Powell admitted that the Fed has no contingency plan for stagflation. They’re not even thinking about the risk. They’re just focused on saving themselves at your expense.

Tyler Durden
Wed, 11/13/2024 – 21:45

Tucker: Joe Rogan Has “Changed American History”

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Tucker: Joe Rogan Has “Changed American History”

Authored by Steve Watson via Modernity.news,

During a recent discussion with Joe Polish‬ at the Genius Network Annual Event, Tucker Carlson heaped praise on Joe Rogan, going as far to say that the podcast king has “changed American history.”

Tucker noted that “Rogan created the genre of podcasting. I’ve been in the media my whole life. Rogan used to be a sitcom actor, a standup comedian, and an MMA fighter. So he starts this thing called a podcast where he talks for like three hours.”

Carlson admitted “I’m in television at a big network and I thought it was dumb. No one is going to listen to a three-hour podcast from some MMA fighter?”

“I know, right?” Carlson said as the audience began to chuckle.

“And this guy’s not even in our business! What’s he doing?” Carlson related, explaining his feelings at the time.

“He completely changed not only American media but also American history. he created a whole new genre — it would be like if one guy invented the newspaper or television, that’s how big what he did was,” Carlson urged.

He continued, “And I will admit I did not see it coming, I did not understand it, I did not think it would work. And the fact that it did work says something so great and important about Americans. Rogan proved that Americans really want to learn.”

“They’re not learning in school, they’re not learning in the rest of the media. It’s all shallow and dumb, about race and gender, it’s all lying,” Carlson further asserted.

He continued, “Rogan is just willing to just sit there with interesting people and talk for three hours. That was the most affirming, reassuring thing I’ve seen in 35 years of media — that that worked.”

“I’m thrilled and proud to be Rogan’s friend. I admire him more than anybody in media — by far,” Carlson concluded.

The entire discussion is here:

As we highlight in the following video, Trump’s victory, along with the success of Tucker, Rogan and many others could be the final hammer blow that renders the legacy media largely irrelevant.

*  *  *

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

Tyler Durden
Wed, 11/13/2024 – 20:55

Southwest Airlines Offering “Voluntary Separation Packages” Due To “Overstaffing”

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Southwest Airlines Offering “Voluntary Separation Packages” Due To “Overstaffing”

We just saw the ‘success’ of the Biden administration not allowing M&A in the airline industry when Spirit, once slated to merge with jetBlue, instead filed for bankruptcy this week. “That’s the miracle of Bidenomics!”

And they aren’t the only carrier under distress, it appears. 

Southwest Airlines, based in Dallas, is addressing overstaffing issues at select airports by offering voluntary separation to ground operations, cargo, and provisioning employee, according to SimpleFlying. 

In a memo distributed on Friday, the airline noted that overstaffing—largely due to aircraft delivery delays—affects nearly 20 airports where Southwest has a significant presence, though the issue is not universal across all locations. Certain positions at Southwest’s headquarters are also eligible for the voluntary separation program.

Aviation analyst JonNYC first reported that Southwest Airlines is offering a voluntary separation program to address overstaffing at specific airports.

In a memo to staff, Chris Johnson, Vice President of Ground Operations, along with Cole McGuire and Wally Devereaux, both vice presidents overseeing operations, outlined that the voluntary separations aim to align staffing levels with Southwest’s revised capacity plans, impacted by aircraft delivery delays.

The SimpleFlying report notes that the 2024 Voluntary Separation Program (VSP 24) is open to contracted and non-contracted employees, including customer service agents, ramp agents, cargo agents, and provisioning agents.

Eligible positions also extend to operations agents, supervisors, assistant managers, and operations managers. Employees at 18 airports, including Atlanta, Dallas Love Field, Los Angeles, and Tampa, will receive information about the VSP 24 package soon. Select employees at Southwest’s Dallas headquarters will also be eligible.

The program is particularly targeted at employees nearing retirement, or those interested in pursuing personal interests such as returning to school or spending more time with family. These employees will have several weeks to review the resources and determine if the VSP 24 aligns with their goals.

For those opting for voluntary separation, the resignation date is set for December 30, 2024.

This initiative coincides with a planned reduction in Southwest’s Atlanta operations, where over 300 pilot and flight attendant positions will be cut by April. The airline, under shareholder pressure from Elliott Investment Management, is focusing on revenue growth and has also reduced hiring rates to prevent further overstaffing.

A Southwest spokesperson confirmed the program, noting that aircraft delivery delays have limited fleet capacity, prompting adjustments in staffing. The voluntary separation, combined with a hiring slowdown, is intended to prevent workforce excesses at impacted locations.

It remains unclear what actions Southwest will take for employees who choose not to participate in the VSP 24.

Tyler Durden
Wed, 11/13/2024 – 20:30

Doug Casey On Trump’s Second Term: What It Means For America And Investors

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Doug Casey On Trump’s Second Term: What It Means For America And Investors

Via InternationalMan.com,

International Man: What are your overall thoughts on Trump’s second term?

How do you expect it to differ from his first term?

Doug Casey: Thank heavens Kamala lost. If she’d won, the Jacobins would have cemented their hold on the country, and it would have been “game over.” We would have seen an acceleration of cultural decline, vastly higher taxes and regulations, and a serious push to shut down free speech.

It feels like morning in America again. But unfortunately, morning only lasts six hours. You’ve got to remember that roughly half the country voted for Kamala, despite her total lack of any qualifications and her extreme commitment to socialist/statist values. Half the country believes in these things; they’re unhappy and not going away.

In other words, it ain’t over till it’s over. And it ain’t over yet.

Regarding Trump’s next four years, I hope that he shows better judgment than he did in his first term when he surrounded himself with all kinds of spineless toadies, deep-staters, and political hacks. But I’m optimistic. For instance, he’s announced that Mike Pompeo and Nikki Haley—horrible people—are out.

Better yet, he’s putting RFK Jr. in a position of power over the FDA. He’s tasked Elon Musk with trying to cut Federal spending by $2 trillion. They’re talking about putting Ron Paul in a position to weigh in on monetary policy. And they’ve apparently offered Joel Salatin a position in the Department of Agriculture.

While Trump doesn’t have a philosophical core, flies by the seat of his pants, is not terribly knowledgeable, and demonstrated horrible judgment about people the last time around, this time, he’s doing a much better job picking the people who are going to actually make things happen.

What scares me most? There have been two assassination attempts, and there might be a third or a fourth before he’s inaugurated. He has become a totem for cultural conservatism. And the Jacobins who control the US government, academia, the entertainment industry, the corporate world, and all of the power centers of America don’t want to see him in office. They’re presently in disarray, but they’re capable of any knavery.

International Man: How do you see Trump’s policies in a second term impacting the federal debt, inflation, and the broader US economy?

Is there any realistic path to reversing the current trajectory?

Doug Casey: First, let me reemphasize how important it is that Kamala and the Democrats lost.

The Democrats would’ve gone hog wild toward the socialization of America. I’m extremely grateful for their defeat. And very happy Trump seems angry enough to meet out some justice.

On the downside, though, Trump has always called himself a “low-interest rate guy” and the “king of debt.” Remember that he was a big spender during his first term and ran up huge deficits. They were relatively and absolutely bigger than those of the baby Bush or Obama. And even bigger than Biden’s over the last four years. I expect that since he has no real grip on economics, he’ll encourage printing money to “help” the economy. Not that he has any choice; they have to keep printing, or the debt bubble will implode.

Going back to the bright side, he wants to massively deregulate the economy. That’s a huge plus. And he wants to reduce taxes. That’s wonderful. But the bad news is that he clearly doesn’t understand that there is no such thing as lowering taxes unless you lower government spending. Especially now, when a third of all government spending is funded by selling debt to the Federal Reserve, which amounts to printing money. There’s going to be more of that. Retail prices will go up for sure. But perhaps the stock market—overpriced as it is—will go even higher with the flood of money.

Is there any realistic path to reversing the current trajectory? No.

It’s wonderful that Elon Musk wants to cut the budget by $2 trillion per year, roughly the amount of the deficit. But I’d say the chances of that are close to zero. Things like Social Security, Medicaid, Medicare, interest payments, and the military budget are sacrosanct—and over 90% of the budget.

On the downside, Trump has indicated unwavering support towards Israel. The US might become Israel’s proxy for a hot war with Iran, which would be a disaster. Israel isn’t our 51st state. Despite the fact Trump wants to avoid war, he might yet involve us in a nuclear dust-up with the Middle East version of the Hatfields versus the McCoys.

On the bright side, again, he says he can end the war in the Ukraine because he thinks that he has a good personal relationship with both Zelensky and Putin. Say what you want about Putin, but Zelensky is even more dangerous, responsible for looting scores of billions from the US to prolong a pointless border war. The only winners are Ukrainian bureaucrats and equally corrupt military “defense” companies.

Let’s hope Trump doesn’t try to back the Russians into an impossible corner because he likes to put forward an image of being “tough.” A propaganda-driven hysteria has been created in the US. Americans believe that Russia is evil, and the terminally corrupt Zelensky regime is good. As happened in World War 1, US intervention would likely be catastrophic.

So we’re not out of the woods in foreign policy or domestic affairs. I’m afraid that morning in America, like all mornings, will only last six hours.

International Man: Trump has promised to end citizenship-based taxation for American expats.

What would be the broader implications of this change, and do you think he’ll deliver on this promise?

Doug Casey: It’s a wonderful idea because the US is the only country in the world, other than Eritrea, that taxes its expats.

If Americans leave the country, they’re still taxed as residents for as long as they live. It’s an insane policy. Of course, he should try to change it.

Will he be able to change it?

I’d say the chances of that are slim and none, and Slim’s out of town. With the US government on the way to bankruptcy, Congress won’t want to cut off that source of revenue. If it does, scores of thousands of rich Americans would leave the country to escape its onerous tax and regulatory burdens.

In addition to that, the entire world is going the other direction. Among other places, France and Canada are talking seriously about taxing their expat citizens.

I hope it happens, but don’t count on it. A US passport will remain a huge liability for anyone with assets.

International Man: What geopolitical and foreign policy shifts do you foresee under a second Trump administration?

Doug Casey: The US relationship with the BRICS is becoming important. It’s all about the declining US dollar. Most of the rest of the world wants to stop using dollars. They know that it’s the unsecured liability of a bankrupt government. They’ve seen how it can be weaponized. The $30 or $40 trillion outside the US are hot potatoes and Old Maid cards, even while new dollars are being created like confetti.

Of course, the BRICS are trying to create their own currency and their own SWIFT system equivalent so people don’t have to use the dollar.

Rather than trying to make the dollar once again “as good as gold’, Trump is resorting to threats. He’s said, “Well, you don’t have to use the dollar. But if you don’t use our currency, we’ll charge 100% duties when you try to export to the US.”

He doesn’t seem to realize that the US no longer exports much. We don’t produce nearly what we consume. Our major export since the 1980s has been dollars, not Boeings or soybeans.

If Trump puts heavy duties on imports, there’s an excellent chance that he could destroy the world’s economy, which is vastly more dependent on international trade than it was in 1929, when Hoover did that with the Smoot–Hawley tariffs. High tariffs would, in effect, put the US under a self-imposed trade embargo.

There’s only one way to solve the government’s fiscal problems: Radically cutting spending. That’s unlikely to happen under Trump, despite the best efforts of Elon Musk’s efficiency efforts.

International Man: How are you personally positioning your portfolio for a second Trump term?

What specific sectors or investment strategies do you believe will thrive in this environment?

Doug Casey: I continue to be long gold because they’re going to continue destroying the dollar; its fate is sealed—even if we have a wholesale credit collapse, which is a real possibility.

I continue to think oil, and especially natural gas, are going higher. Even though Trump has said that he will encourage more production—which is wonderful. The world runs on hydrocarbons. I especially like coal. Until the world goes nuclear, it’s the only feasible answer to generating more electricity.

What specific investment strategies will work in the Trump years?

For a while, it will continue to be stocks because money drives the market, and the Trump regime will definitely create lots more money and credit. That said, I’m still not interested in stocks, even though they may become even more overpriced. I have better places to be.

Although the Donald says that he’s a low-interest rate guy, there’s nothing he can do to control long-term interest rates, which are headed higher. I suspect they’re headed back to, and beyond, the levels we saw in the early ’80s. Bonds are a disaster in the making.

As important as knowing what to do, however, is knowing what not to do. You don’t want to lose your capital by putting your money in dangerous places. And that includes bonds, most stocks, and failing to diversify politically.

Don’t forget that—as important as this election was—it can’t immediately undo decades of economic and cultural debauchery.

*  *  *

The truth is, we’re on the cusp of an economic crisis that could eclipse anything we’ve seen before. And most people won’t be prepared for what’s coming. That’s exactly why bestselling author Doug Casey and his team just released a free report with all the details on how to survive an economic collapse. Click here to download the PDF now.

Tyler Durden
Wed, 11/13/2024 – 20:05

OpenAI, Google, & Anthropic Face Hurdles In Advancing AI Models, Casting Doubt On Near-Term AGI

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OpenAI, Google, & Anthropic Face Hurdles In Advancing AI Models, Casting Doubt On Near-Term AGI

Tech companies focused on chatbot development, like OpenAI, Google, and Anthropic, have faced significant near-term headwinds in advancing large language models. Despite tens of billions of dollars in investments, these tech firms are experiencing diminishing returns in advancing more sophisticated LLMs.

Sources told Bloomberg that OpenAI’s new Orion LLM has experienced performance limitations. This means the new LLM would outperform the firm’s existing models, but it does not mean there will be a significant leap in development, like that of GPT-3 to GPT-4. 

As of late summer, for example, Orion fell short when trying to answer coding questions that it hadn’t been trained on, the people said. Overall, Orion is so far not considered to be as big a step up from OpenAI’s existing models as GPT-4 was from GPT-3.5, the system that originally powered the company’s flagship chatbot, the people said. -BBG

The breakneck pace of developing more sophisticated LLMs appears to have also hit a proverbial brick wall at Google, in which its Gemini software has not lived up to expectations, according to sources, adding Anthropic also faces challenges with its long-awaited Claude model called 3.5 Opus. 

Bloomberg noted one of the top obstacles these tech firms have encountered has been “finding new, untapped sources of high-quality, human-made training data that can be used to build more advanced AI systems.” 

Sources said Orion’s dismal coding performance was due to the lack of sufficient coding data to train the LLM. They added that even though the model has improvements compared to legacy ones, it has become increasingly challenging to justify the massive costs of building and operating new models. 

The setbacks may reveal an inconvenient truth for the tech industry plowing tens of billions of dollars into AI data centers and infrastructure, and the feasibility of reaching artificial general intelligence in the near future might be a pipedream. 

John Schulman, cofounder and research scientist at OpenAI who recently left, said AGI could be achieved within a few years. Dario Amodei, CEO of Anthropic, believes it could be achieved by 2026. 

However, Margaret Mitchell, the chief ethics scientist at AI startup Hugging Face, pointed out, “The AGI bubble is bursting a little bit,” adding that “different training approaches” may be needed for progress. 

In a recent interview with Lex Fridman, Anthropic’s Amodei said there are “lots of things” that could “derail” the AI progression, including the possibility that “we could run out of data.” However, he was optimistic that AI researchers would overcome any hurdles.  

Scaling efforts are slowing… 

Source: Bloomberg

“It is less about quantity and more about quality and diversity of data,” said Lila Tretikov, head of AI strategy at New Enterprise Associates and former deputy CTO at Microsoft.

Tretikov said, “We can generate quantity synthetically, yet we struggle to get unique, high-quality datasets without human guidance, especially when it comes to language.”

Moving forward, Noah Giansiracusa, an associate professor of mathematics at Bentley University in Waltham, Massachusetts, said AI models will continue to improve, but the hypergrowth in recent years is unsustainable:

“We got very excited for a brief period of very fast progress. That just wasn’t sustainable.”

If tech firms are struggling to advance LLM performance, this raises serious doubts about whether large investments can continue to be made in AI infrastructure. 

“The infrastructure build for AI is the bubble. The AI 2.0 companies that can actually figure out a way to monetize it are the investments years from now. Might as well light a match to this fund. The infrastructure build like the telecom infrastructure during the dotcom boom will be oversupplied and pricing will collapse,” Edward Dowd recently noted on X.

Well Nvidia has soared to new highs. 

AI companies struggling to develop more advanced LLMs is undoubtedly an ominous sign for the AI bubble.

Tyler Durden
Wed, 11/13/2024 – 19:40

Why Roger Ver Deserves A Presidential Pardon

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Why Roger Ver Deserves A Presidential Pardon

Authored by Aaron Day via The Brownstone Institute,

The US government is attempting to imprison Roger Ver for 109 years for the crime of following his lawyers’ advice. 

His case represents an unprecedented attack on attorney-client privilege that threatens everyone who relies on professional counsel.

Today, Ver sits silenced in Spain, unable to defend himself publicly, while prosecutors use his own lawyers’ records against him—records that show his meticulous attempts to follow the law. This isn’t just about cryptocurrency; it’s about whether any American can safely consult legal counsel without fear of prosecution.

If this precedent stands, seeking professional advice could become evidence of criminality. Business owners, entrepreneurs, and ordinary citizens who rely on lawyers and accountants will all be at risk. The time to act is now, before this dangerous precedent becomes permanent.

Imagine for a moment that you’re an entrepreneur with an unwavering belief: state control over money isn’t just wrong—it’s a weapon. It fuels violence, breeds poverty, and crushes individual freedom. You’ve seen the wreckage it leaves behind and know that there has to be a better way.

You know this because you’ve experienced the state’s brutality firsthand. 

At just 22, you were imprisoned for ten months in federal prison. Your supposed crime? Selling firecrackers on eBay’s then-legal Guns & Ammo section without a license. But the real reason, as Roger tells it, was speaking truth to power—declaring that taxation is theft and wars are mass murder.

In prison, you experienced psychological torture that haunts you to this day. A guard planted a weapon on you as a “joke,” threatening you with additional years in prison until you broke down in tears. You witnessed the theatrical deception when inspectors visited—seeing how the system maintains its façade of legitimacy while grinding down human dignity behind closed doors. In Roger’s own words from his emotional testimony:

“That man just purely tortured me for his own amusement…when he sees that enough tears are coming down my face and that I’m crying enough, he pats me on the shoulder and says ‘Relax, I’m just kidding with you.’”

Then, in 2010, you discover Bitcoin—a revolutionary concept. A form of money that can’t be manipulated by any government, any central bank. Digital cash for the people. Your mind races with the possibilities. For the first time in history, money could flow freely across borders, free from the control of states that use it to fuel wars, or impoverish entire nations. You see what many do not: Bitcoin could be the key to spreading freedom and prosperity to every corner of the earth.

You dive in, headfirst. You’re not just a believer—you become the first merchant to accept Bitcoin, the first investor in Bitcoin-related companies. Your relentless advocacy earns you the title “Bitcoin Jesus.” You invest in decentralized companies with one mission: to free the world from the shackles of centralized control.

But the US—the land of the free—begins to look less and less like the place you want it to be. So, you make the difficult choice to legally expatriate. Despite the murky regulations surrounding this new currency, you hire the best attorneys and accountants to ensure every penny of tax is paid. Your conscience is clear.

A decade passes. Then, without warning, they come for you—not just for you, but for your lawyers too. You find yourself arrested and thrown in a Spanish prison—the same prison where fellow libertarian John McAfee mysteriously died. You don’t speak the language. You’re cut off from everything you know. After months of legal battles, you’re finally out on bond, but the situation is bleak. Six months pass, and you still have no clarity, no answers.

Now, in a cruel echo of his past persecution for speaking truth to power, Roger finds himself essentially gagged. He cannot speak out about his case or the broader implications of his prosecution for fear that his words might be used against him in court—or worse, lead to the revocation of his bail and his return to the same Spanish prison where McAfee met his end. The silencing of Bitcoin Jesus isn’t just about one man’s freedom—it’s about whether any of us will be free to challenge the financial status quo.

Roger Ver: Where Natural Law Meets Human Impact

When people ask me what I believe in, the answer is simple: natural law. Not the academic theory of natural rights, but the living, breathing reality that we can make the world better through right thought and right action. That by aligning our behavior with universal principles of non-aggression, voluntary cooperation, and genuine care for human flourishing, we can create the conditions for freedom to thrive.

In all my years studying and advocating for these principles, I’ve never encountered anyone who embodies them more completely than Roger Ver. While others talk about freedom in the abstract, Roger has dedicated his life to manifesting it in reality.

A Legacy of Impact

I first encountered Roger’s work in 2012 at a Free State Project event called Liberty Forum, where he introduced many of us—including several who are now prominent voices in the crypto industry—to Bitcoin for the first time. In the decade since, I’ve watched him consistently stay ahead of the curve, identifying and supporting technologies that offer real alternatives to centralized control.

But Roger’s impact extends far beyond cryptocurrency. He has invested his heart and resources into more than 40 companies that are transforming the world for the better. From groundbreaking medical technologies making diagnostics accessible to underserved communities, to biotech innovations advancing personalized medicine, to projects reimagining governance itself—Roger’s work touches on every aspect of human freedom and flourishing.

The Hidden Champion of Truth

This weekend, I had the honor of participating in Brownstone Institute’s annual conference in Pittsburgh. For two intense days, I witnessed something remarkable: a gathering of some of the world’s most courageous voices in the fight for human liberty and scientific truth.

The accomplishments of Brownstone over just three years are staggering. When voices of reason were being systematically silenced during the pandemic, Brownstone emerged as a sanctuary for truth-tellers. They’ve fought lockdowns and mandates not just in the public sphere but in the courts. They’ve exposed the machinery of censorship, revealing how government agencies collude with tech companies to suppress dissent. Their research team dismantled flawed pandemic risk assessments and exposed how organizations like the WHO and the G20 manipulated outbreak data to justify massive new funding through REPPARE. Most recently (with my addition as a Fellow), they’ve been at the forefront of warning about the dangers of CBDCs and the weaponization of the financial system against dissenters.

But Brownstone’s story begins with a profound act of moral courage. Jeffrey Tucker, witnessing the collapse of scientific discourse and basic human rights during the pandemic, created Brownstone from a place of deep caring—caring about truth, about humanity, and about protecting those who dare to speak out. He wanted to create a haven for dissidents like myself and many other Brownstone Fellows who faced cancellation, professional destruction, and worse simply for doing what was right: speaking the truth.

What few people know—what I didn’t even know until after becoming a Brownstone Fellow—is that none of this would have been possible without Roger Ver. As Brownstone’s founding donor and board member, Roger’s support was crucial in getting this beacon of truth off the ground. In typical Roger fashion, he never sought recognition for this role. While others might have used such support for publicity, Roger quietly helped build an institution that has become one of the most important voices for freedom and scientific integrity in our time.

This is characteristic of how Roger operates. Behind nearly every major initiative promoting human freedom and fighting against authoritarian control, you’ll often find Roger’s quiet support. From Bitcoin adoption in the developing world to fighting against CBDCs, from supporting victims of state persecution to funding research that challenges official narratives—Roger has been there, usually without acknowledgement or acclaim.

Now, in a cruel irony, while Brownstone continues its vital work exposing government overreach and defending individual liberty, one of its key founders sits silenced in Spain, facing persecution from the very systems of state control he helped others fight against. The same commitment to truth and freedom that led Roger to support Brownstone now has him fighting for his own liberty.

The parallel is stark and troubling: just as Brownstone fights to prevent the financial system from being weaponized against dissenters through CBDCs, its own founding donor faces the weaponization of tax law against him. Just as Brownstone works to expose the machinery of state persecution, Roger faces that machinery firsthand.

Natural Law in Action

What makes Roger unique is his understanding that natural law isn’t just a philosophy—it’s a blueprint for action. Rather than just describe Roger’s passion, I encourage you to watch him speak in his own words. In this powerful video, you’ll see Roger’s raw emotion and genuine care as he explains why decentralized money must be accessible to everyone, not just the elite.

When he declares that “Bitcoin is for everybody…regardless of how much money they have or where they were born,” it’s not just rhetoric—it’s backed by decades of concrete action. You can hear the urgency in his voice when he explains:

“More babies are dying in countries around the world because they have less economic freedom…people are literally dying because of this. I’m not exaggerating; this is a life and death matter around the world.”

Beyond Cryptocurrency to Human Freedom

Roger’s vision extends far beyond financial technology. His work in medical accessibility, internet decentralization, and biotech innovation shows his understanding that freedom requires a holistic approach. When he breaks down discussing government monetary control, we see someone who deeply understands the human cost of centralized power:

“I apologize for crying but it just disgusts me from my core when I see government people murdering people around the world…it’s not just theoretical; these are real people with real lives.”

The Price of Principles

Now Roger faces persecution precisely because he’s been so effective at putting these principles into practice. The charges against him aren’t just an attack on one man—they’re an attack on everyone who believes in building voluntary systems outside state control.

The Roger Ver Timeline 

Constitutional Crisis: Robert Barnes Exposes the Ver Persecution

Constitutional lawyer Robert Barnes recently delivered a chilling analysis that should terrify every American who relies on professional advice: The government isn’t just prosecuting Roger Ver—they’re attempting to criminalize the very act of following legal counsel.

The Unprecedented Attack on Attorney-Client Privilege

“This isn’t just about Bitcoin or taxes,” Barnes explains in his detailed analysis. “They’re establishing that they can put you in prison and create new tax policy through criminal law enforcement against individuals, even when you’ve followed expert advice to the letter.”

Consider the timeline that Barnes lays bare:

  • 2014: Ver faces the challenge of valuing Bitcoin for his exit tax

    • The largest Bitcoin exchange (Mt. Gox) had just collapsed

    • No clear valuation guidelines existed

    • The IRS itself admitted they couldn’t determine how to classify Bitcoin

    • Even basic questions about cryptocurrency taxation remained unanswered

  • Ver’s Response: Exactly what any prudent person would do

    • Hired top-tier attorneys

    • Consulted leading accountants

    • Documented every step of compliance

    • Followed expert guidance meticulously

The Government’s Shocking Response

Then comes what Barnes calls “the most disturbing breach of attorney-client privilege I’ve seen:”

  1. Raided Ver’s lawyers’ offices

  2. Seized privileged communications

  3. Found extensive evidence of Ver trying to follow the law

  4. Is now using that evidence of compliance as proof of criminality

“You read the quotes from his lawyer,” Barnes reveals, “and this is the evidence of someone trying to comply with the law, not someone trying to not comply with the law.”

What This Means for Every American

Barnes outlines four immediate threats to anyone who relies on professional advice:

  1. Small Business Owners

    • Your consultations with tax attorneys can be seized

    • Your compliance efforts become evidence against you

    • Even following advice perfectly offers no protection

  2. International Business

    • Complex regulations require expert guidance

    • That guidance can later be used to prosecute you

    • No “safe harbor” even when following professional advice

  3. Tech Entrepreneurs

    • Evolving regulations demand constant legal consultation

    • Today’s compliance could become tomorrow’s crime

    • No way to prove good faith without creating “evidence”

  4. Individual Taxpayers

    • Cannot safely seek professional guidance

    • Cannot trust attorney-client privilege

    • Cannot document compliance efforts without risk

The Constitutional Crisis

Barnes identifies three fundamental rights under attack:

  1. Attorney-Client Privilege

    • Once sacred, now routinely violated

    • Communications with counsel used as evidence

    • No safe way to seek legal advice

  2. Due Process

    • Retroactive criminalization of legal conduct

    • No clear standards for compliance

    • Good faith efforts used as evidence of guilt

  3. Right to Counsel

    • Following legal advice becomes criminal

    • Creating compliance records becomes dangerous

    • Professional guidance offers no protection

The Dangerous Precedent

“If this stands,” Barnes warns, “we’ve entered a world where:

  • Seeking legal advice becomes evidence of guilt

  • Following professional guidance provides no protection

  • Documenting compliance efforts creates prosecution evidence

  • Perfect compliance offers no safety from prosecution.”

Watch Barnes’s complete analysis to understand why this case represents a Constitutional crisis that threatens every American and business that relies on professional advice. As he concludes: “When the government can breach attorney-client privilege, find evidence of compliance, and still pursue prosecution, we’ve moved beyond the realm of law enforcement into territory our Founders feared most: a system where no one is safe.”

The implications are clear: If they can do this to Roger Ver—a man who actively sought to comply with the law—they can do it to anyone. The time to act is now, before this precedent becomes permanent.

Two Dreams, One Persecution: Why Trump Must Resurrect Bitcoin Jesus

There are moments in history when parallel lives intersect to reveal profound truths about power, persecution, and the price of challenging the status quo. Donald Trump and Roger Ver’s stories are such a moment.

The American Dream Under Siege

Both men exemplify the quintessential American success story. Trump transformed New York’s skyline through sheer force of will and vision. Ver saw the revolutionary potential of Bitcoin when it was merely computer code and helped build it into a global force for freedom. Both men didn’t just succeed—they dared to reimagine what success could mean.

But in today’s America, such audacious success comes with a target on your back.

The Playbook of Persecution

The parallels between their persecutions are not just striking—they’re identical:

The Weaponization of Attorney-Client Privilege

  • Trump watched in horror as federal agents raided his lawyer Michael Cohen’s office, seizing privileged communications

  • Ver’s attorneys faced the same violation, with prosecutors seizing private legal consultations showing his meticulous efforts to follow the law

The Tax Weapon

  • Trump endures endless audits and investigations, with rules twisted to create crimes from normal business practices

  • Ver faces prosecution for following expert advice on Bitcoin taxation during a time when even the IRS admitted they didn’t know how to classify cryptocurrency

The Criminalization of Success

  • Trump’s business empire became evidence of alleged criminality

  • Ver’s pioneering work in cryptocurrency transformed into supposed proof of wrongdoing

The Breach of Sacred Rights

Both men have watched as fundamental legal protections crumbled:

  • Their attorneys raided

  • Their private communications seized

  • Their attempts to follow the law transformed into evidence against them

Why Trump Must Act

Mr. President, you alone understand the machinery of state persecution that’s been unleashed against Roger Ver. You alone have the power to end it. Here’s why pardoning Ver would be a masterpiece of justice:

  1. It Breaks the Deep State’s Weapon

    • Shows that weaponizing justice against innovators will no longer be tolerated

    • Demonstrates that following legal advice won’t be criminalized

  2. It Restores American Innovation

    • Declares America open for blockchain business

    • Signals that challenging financial orthodoxy isn’t a crime

  3. It Reaffirms Sacred Rights

    • Restores the sanctity of attorney-client privilege

    • Proves that seeking legal counsel is a right, not evidence of guilt

  4. It Sends a Global Message

    • America still rewards dreamers

    • Innovation will be protected, not persecuted

The Power of Parallel Justice

Mr. President, you’ve felt the sting of politically motivated prosecution. You’ve watched as attorney-client privilege was shredded. You’ve seen how success can be twisted into evidence of criminality. You alone can turn this moment of parallel persecution into parallel justice.

By pardoning Roger Ver, you won’t just be freeing one man—you’ll be declaring that America still stands for the dreamers, the builders, the innovators who dare to imagine a freer world. You’ll be showing that when the deep state tries to crucify a visionary, America’s highest office still stands for justice.

The symmetry is perfect: The man persecuted for challenging real estate orthodoxy can save the man persecuted for challenging financial orthodoxy. The businessman who became president can restore justice to the entrepreneur who became Bitcoin Jesus.

Mr. President, on Day One, write your name in the history books. Show that America still believes in dreams, in innovation, and in the sacred right to challenge power without fear of persecution.

Pardon Roger Ver. Resurrect Bitcoin Jesus. Let freedom ring.

Defend Freedom: Why Every American Must Stand With Roger Ver

The President holds the power to take a decisive stand, but ultimately, this fight calls on all of us. Roger’s battle isn’t just his own—it’s a rallying cry for anyone who values the right to question authority, seek counsel, and live free from unjust persecution.

This moment demands a response from each of us. Here’s how you can join the movement to defend freedom and stand up for Roger Ver’s rights, along with our own.

The Open Letter

We, the undersigned, call on the US government to end the unjust prosecution of Roger Ver, a pioneer in cryptocurrency and advocate for economic freedom. This isn’t just about Roger—it’s about protecting innovation, defending liberty, and ensuring that following legal advice doesn’t become a crime.

Take Action Now

  1. Sign the Open Letter

    Visit Freerogernow.org to join supporters who have already taken a stand. Your signature helps show the strength of our movement to:

    • End this retaliatory action

    • Allow Roger to continue contributing to a free and open financial future

    • Protect the right to legal counsel

  2. Share Your Story

    Tell the President why you support pardoning Roger Ver:

    • How has Roger’s work impacted you?

    • Why does attorney-client privilege matter to you?

    • What does this case mean for American innovation?

  3. Spread the Word

    Share across your networks using #FreeRoger:

    • Facebook

    • Twitter

    • WhatsApp

    • LinkedIn

    • Telegram

  4. Stay Informed

    Sign up for “Freedom for Roger: Updates & Actions” at Freerogernow.org to:

    • Get the latest case developments

    • Learn about new ways to help

    • Join coordinated actions

The Stakes Are Clear

As Hijacking Bitcoin reveals, this case emerged just as Roger exposed how powerful groups undermined Bitcoin’s original vision. The timing is no coincidence—this prosecution represents an alarming misuse of power aimed at suppressing innovation and dissent.

Together, we can make our voices heard and help secure justice for Roger Ver. But we must act now, before this dangerous precedent becomes permanent.

Join the Movement

Visit FreeRoger.org today to:

  • Sign the open letter

  • Share your story

  • Stay updated on the campaign

  • Stand with Roger

Because tomorrow, the person facing persecution for following legal advice could be you.

#FreeRoger

Tyler Durden
Wed, 11/13/2024 – 19:15

“Grand Political Theatre” – FBI Raids Home Of Polymarket CEO; Seize Phone, Electronics

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“Grand Political Theatre” – FBI Raids Home Of Polymarket CEO; Seize Phone, Electronics

With just a few short weeks until President Trump (and his freshly appointed new AG Matt Gaetz) take over, the FBI has decided to rush in and raid the home of the founder and chief executive of Polymarket, the crypto-based prediction market that was a popular (and very accurate) platform for bets on the US presidential election.

The NY Post reports, citing a source close to the matter, that Shayne Coplan was woken up at 6:00 am Eastern Time in his New York City apartment by US law enforcement officials who demanded he hand over his phone and electronics.

It wasn’t immediately clear what prompted the FBI’s search but Polymarket quickly tied the raid to its track record in the recent election, in which bettors on its platform correctly anticipated that Donald Trump would beat Vice President Kamala Harris.

“This is obvious political retribution by the outgoing administration against Polymarket for providing a market that correctly called the 2024 presidential election,” said a spokesman for the New York-based company.

“Polymarket is a fully transparent prediction market that helps everyday people better understand the events that matter most to them, including elections,” the spokesman added.

The CEO of the decentralized prediction markets platform appeared to confirm the reports on X, claiming to make a post from a new phone.

A person close to the matter described the Coplan’s incident as “grand political theatre” to the NY Post.

“They could have asked his lawyer for any of these things.

Instead, they staged a so-called raid so they can leak it to the media and use it for obvious political reasons.”

Coplan appeared on CNBC last week – which likely irked the establishment:

Polymarket does not allow trading in the US, though bettors can bypass the ban by accessing the site through VPN, and Bloomberg reports that the DoJ is probing the company for allegedly accepting trades from US-based users, according to a person familiar with the matter.

Under an agreement with the CFTC reached in 2022, Polymarket is to prevent US-based traders from making transactions on the platform.

Coplan took to X once more this evening, clearly pissed off at the obvious politicization:

“It’s discouraging that the current administration would seek a last-ditch effort to go after companies they deem to be associated with political opponents. We are deeply committed to being non-partisan, and today is no different, but the incumbents should do some self-reflecting and recognize that taking a more pro-business, pro-startup approach may be what would have changed their fate this election.

Polymarket has provided value to 10’s of millions of people this election cycle, while causing harm to nobody.

We’re deeply proud of that.

I’m also proud to say that the future of America, and in particular American entrepreneurship, has never been brighter.

In the face of adversity, we build.”

Investors in Polymarket include Founders Fund, the Silicon Valley venture firm started by billionaire Peter Thiel, and a number of prominent crypto personalities.

Tyler Durden
Wed, 11/13/2024 – 18:50

Schoolhouse Limbo: How Low Will Educators Go To ‘Better’ Grades?

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Schoolhouse Limbo: How Low Will Educators Go To ‘Better’ Grades?

Authored by Vince Bielski via RealClearEducation,

Maryland’s new education chief, Carey Wright, an old-school champion of rigorous standards, is pushing back against efforts in other states to boost test scores by essentially lowering their expectations of students.

States, including Oklahoma and Wisconsin, are making it easier for students to demonstrate on annual assessments that they are proficient in math and English after a decade of declining test scores nationwide. By redesigning the assessments and lowering the so-called “cut scores” that separate achievement levels such as basic, proficient, and advanced, several states have recently posted dramatic increases in proficiency, a key indicator of school quality. 

Wright warns that lowering the bar on proficiency can create the public impression that schools are improving and students are learning more when, in fact, that’s not the case. 

“You can make yourself look better to the public by lowering your cut scores,” Wright, the Maryland state superintendent of schools, told RealClearInvestigations in an interview. “But then you are not really measuring proficiency. My position is no, no, no. Parents and teachers need to know if their children are proficient or not.”

As most public schools continue to deal with the related crises of learning loss and chronic absenteeism years after COVID, Wright says now is the worst time to lower expectations of students, which can stifle the impetus to improve. In other moves to accommodate struggling students, districts and states have reduced graduation requirements and inflated grades with policies that ban failing marks. The best evidence comes from studies in Washington and North Carolina showing that grades have held steady at their pre-pandemic levels even though students are learning much less.

“With grades and assessments, the education system seems to be sleepwalking into a policy of ratcheting expectations down to better reflect what today’s students can do, rather than doubling efforts to help get students to where they need to be,” said Michael Petrilli, president of the Thomas B. Fordham Institute, which advocates for high academic standards. 

Wright, who took over Maryland schools this summer, is refusing to backpedal on standards in a state that plunged from the top to the bottom in U.S. performance over the last decade. The superintendent says she aims to improve Maryland’s declining proficiency rates the hard way by making academic standards more rigorous in all content areas. As students learn more in class, the theory goes, they should become more proficient on state tests. 

But a strategy that asks more of teachers and students is never an easy lift in districts that often resist top-down calls for change. Without direct control over school districts run by local boards, state superintendents like Wright must depend on the ability to inspire principals and teachers to follow their lead and meet inconvenient truths head-on.

Wright has done it before. As the state superintendent in Mississippi a decade ago, she collaborated closely with districts in lifting content standards and provided support to completely revamp literacy instruction in what was the worst-performing state in the union. Student proficiency soared without lowering cut scores. Educators called it the “Mississippi Miracle.”

“If you set the bar low, that’s all you are going to get,” Wright said. “But if you set the bar high for students, and support teachers and leaders, it’s doable.”

Lowering Cut Scores, Boosting Proficiency

Each state controls its own definition of proficiency and how students can achieve the all-important marker of academic success. They set their own content standards that detail what students need to know in each grade, write their own tests to determine if they are proficient, and devise their own cut scores.

The undertaking is more art than science. There is no accepted single definition of what makes a student proficient. States mostly aim for grade-level proficiency, or what the average student can do, based on their own content standards. A handful of states shoot higher, approaching a more rigorous definition of proficiency spelled out by the National Assessment of Educational Progress (NAEP), commonly known as the Nation’s Report Card. 

By moving the bar on tests and cut scores, education officials have instantly raised or lowered proficiency rates. Over the years, some states have added enough rigor to allow only a third of students to show proficiency while others have reduced it to ensure that the vast majority perform well, Marianne Perie, who has helped more than a dozen states develop assessment methods, told the New York Board of Regents last year. 

Today, states are lowering the bar and lifting proficiency rates. “Oklahoma just lowered their cut scores and Wisconsin is another one that ended up with less rigorous cut scores,” Perie told RCI. “If more kids are proficient this year compared with the previous years, it indicates that cut scores are less rigorous or that kids learned a lot more over the last year.”

High Standards Fall in Wisconsin 

Wisconsin, like most states, has experienced a big drop in proficiency. In 2017, 44% of public school students were deemed proficient in English. That percentage fell in 2018 and 2019 and then plunged in the early years of the pandemic before recovering a bit to 39% in 2023. 

This year, Wisconsin rolled out its new test and cut scores. State Superintendent Jill Underly was transparent about the changes, explaining in October that the redesign was meant to fix a problem created a decade ago when Wisconsin and other states aligned their cut scores to an “extremely high” level used by NAEP, reducing Wisconsin’s proficiency rate in the years that followed. Underly wrote that Wisconsin’s new grade-level cut scores better reflect the actual proficiency of students, making results easier for families to understand. 

What families saw was a dramatic boost in English proficiency to 48% this year – a nine percentage-point gain over 2023 – due to assessment changes that had nothing to do with classroom learning. 

To be sure, the Wisconsin Department of Public Instruction didn’t tout the 2024 results. It announced that they shouldn’t be compared to prior years since testing methods changed. Still, families who don’t follow the fine print of assessments may be left with the impression that Wisconsin schools are performing much better this year. 

Paul Peterson, a prominent Harvard professor of education policy who has tracked changes to state proficiency levels, says politics seems to be a driver in the lowering of testing rigor. “Student performance is falling so I would imagine the pressure on states to rethink standards must be considerable,” Peterson said. “Officials want to show that they are spending the public’s dollar well, and that students are learning.”

No Notice in Oklahoma

In Oklahoma, a similar assessment revamp unfolded this summer but with a controversial twist: State leaders in Oklahoma didn’t inform school districts or families that they had lowered the bar before releasing the test results in August, according to reports in the local media. 

When school districts saw the results, principals and teachers were in disbelief over the huge increase in performance. In fourth grade English, for instance, 47% of students reached proficiency – an extraordinary 23-percentage-point jump compared to 2023. 

Later in August state Superintendent Ryan Walters, a conservative who has been under fire for insisting that public schools teach the Bible, admitted that the state changed its assessment regime without publicly announcing it. Republican state lawmakers issued a statement criticizing Walters for “putting a false narrative out there” about a jump in test scores. Oklahoma’s Department of Education didn’t respond to a request from RCI for comment. 

“I believe in transparency and communication,” said Perie, the testing expert. “Oklahoma was the only state where it seemed like they were hiding the changes.”

New York Denies Lower Standards

As in Wisconsin and Oklahoma, New York’s retooled content standards, assessments, and scoring also produced higher proficiency rates. 

A New York education official told RCI that the goal was to determine what should be expected of today’s students and how to evaluate their proficiency in various subjects using the new content standards. New York saw a dramatic 13-percentage-point increase in math proficiency and a small boost in English in 2023, the year the changes were implemented.

Officials in New York and Wisconsin are adamant that the updated assessments don’t amount to a lowering of academic standards even though proficiency rates jumped. The New York official added that while several factors impact student achievement from year to year, instruction is one of the most highly related attributes.

“It is incorrect and irresponsible to derive from this that the standards have been lowered,” the official said in an email. 

Petrilli of the Fordham Institute calls such explanations from state officials double speak. “By definition these states are lowering standards for proficiency because it’s easier for students to meet the standard than it was before,” he said.

Wright’s ‘Mississippi Miracle’

Education experts say Wright’s tenure as the state superintendent in Mississippi offers a lesson to states struggling with low proficiency rates today: Even in the worst of times, Wright showed, states can raise their expectations of students and get results.

When Wright took over Mississippi schools in 2013, they were at the very bottom in performance nationally. A mere 21% of fourth graders were proficient in reading, according to NAEP. Educators in the South would say, “At least we are not as bad as Mississippi.” 

The decade before the pandemic was a time of rising expectations in public education. With Wright in charge, Mississippi joined half of the states in raising the bar for fourth-grade reading proficiency between 2013 and 2019.

The lifting of expectations was relatively easy. It’s policy making. The tough part for state superintendents was implementing changes in schools to reach those higher goals. For the most part, the higher bars didn’t translate into higher levels of proficiency by 2017, according to research by Daniel Hamlin at the University of Oklahoma and Harvard’s Peterson.

There are only theories as to why: After the Great Recession of 2009, school funding declined. The Obama administration relaxed federal accountability measures put in place by President George W. Bush’s No Child Left Behind reform of 2002. The advent of smartphones became a major distraction for students. 

Mississippi was a notable exception. Its fourth-grade reading proficiency jumped by 11 percentage points from 2013 to 2019, rising to a top 20 performer in the U.S., according to NAEP. In math, the increase was equally impressive.

Wright got results the old-fashioned way, with a tenacious focus on improving proficiency for all students, including those living in poverty, says Washington Cole, then her chief of staff and now a district superintendent in Mississippi. To get there, Wright rolled out a literacy program that was backed by decades of research and, crucially, provided teachers and administrators with extensive training in the model and sent coaches into the lowest-performing schools. “The professional development was a huge part of it,” Wright said. 

Wright also toughened the district grading system that provided public accountability. When districts earned an “A” for performance, they were publicly celebrated by community members and lawmakers, adding to the incentives for other districts to improve. Over a decade, Wright’s team transformed Mississippi into an unlikely national K-12 success story. 

“Dr. Wright set high expectations and her hard work and determination were very infectious with everyone. She was amazing,” Cole said. “I have no doubt that she will do the same thing in Maryland.”

Maryland Tries a Turnaround

Wright has her work cut out for her. After a decade of decline in Maryland, 48% of students are proficient in English and 24% in math. 

In Baltimore City, where almost all students are black or Latino, the numbers are tragically low. Only 6% of middle and high schoolers are proficient in math. More than 40% of Baltimore City students were chronically absent last year, according to a district estimate, well above the national average. Students can’t learn if they don’t show up.

None of this seems to faze Wright, who assumed permanent leadership of Maryland’s schools in July. In returning to her native state, where she earned her doctorate in education and began her career as a teacher and administrator, Wright has wasted no time in setting a very ambitious goal.

“In the next three years we are expecting a 5-percentage point increase in proficiency each year in English and math,” she said.

To achieve that goal, Wright appointed a task force of teachers, leaders, experts, and parents to quickly recommend changes to the state’s accountability system, which she discovered painted a very rosy picture for the public. It was giving high marks to three-quarters of all schools despite their low proficiency scores. Wright wants the new system to provide school leaders with clearer measurements on a range of topics, such as the pace of student growth and graduation rates, so they can target their weak areas for improvement. 

“Superintendents take a lot of pride in their ratings,” Wright said. “They want to be that district that gets recognized.”

Major changes are also coming to classrooms. Wright’s new early literacy policy, which won state board approval in October, details expectations for instruction based on the science of reading and teacher training in an attempt to lift test scores that have fallen to 41st in the country. 

The biggest change in policy puts an end to social promotion. Districts with parental consent will be able to hold back third graders who don’t meet literacy standards rather than promote them to fourth grade, where they will continue to struggle to read, hampering their future performance. It’s the kind of bold change that Wright wasn’t hesitant to push despite opposition from some board members and families concerned about the impact on disadvantaged students. 

It worked for Wright in Mississippi, producing a very large increase in reading performance by sixth grade, according to researchers.

“Putting a stake in the ground and saying we are not just going to move kids along if they haven’t learned to read by grade 3 is very powerful and much needed for our education system,” said Joan Dabrowski, the chief academic officer of Baltimore City Public Schools. “Dr. Wright is very clearly telling the districts they need to prioritize this policy and the state will be monitoring districts so there is a lot of accountability.”

Will the policy work? Dabrowski says it depends on the support teachers and principals receive from Wright to make the difficult changes over several years. “I like everything in the policy, but there are lots of points where implementation could go well or not go well,” she said. 

Illinois Next to Lower Cut Scores

In June, Illinois made clear that it plans to boost proficiency too by following the approach of Wisconsin. Illinois Superintendent Tony Sanders said in a report that his state has one of the toughest definitions of proficiency in the nation. He said students who are on track for college could be mislabeled as not proficient, sending a wrong message to their families. 

To fix this, Illinois is planning to adjust its assessment methods by 2025, which will likely boost the state’s proficiency rates. 

If Wright fails in Maryland, would she consider following Illinois and other states in easing the rigor of assessments? 

She scoffed at the idea. 

“When you look over the last decade of dropping test scores, now is not the time to be lowering the bar,” she said. “If you don’t set high expectations, you’re never going to achieve the kinds of goals that you want to achieve. And in our business, it’s called student learning.”

Tyler Durden
Wed, 11/13/2024 – 18:25

US Deficit Explodes: Blowout October Deficit Means 2nd Worst Start To US Fiscal Year On Record

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US Deficit Explodes: Blowout October Deficit Means 2nd Worst Start To US Fiscal Year On Record

It is only fitting that the twilight days of the Biden admin would exhibit more of the same fakeness that defined not only all of the past four years, but certainly the fakeness of that Kamala Harris presidential campaign which had a billion dollars a month ago and ended up in failure, broke and in debt. We are talking, of course, about the relentless debt-funded spree that somehow became synonymous with economic success in the US.

According to the latest Treasury data released today, in October – the first month of fiscal 2025 – the US spent a massive $584.2 billion, a 24.3% increase from the prior year, and a record government outlay for the month of October. On a trailing 6 month moving average basis, to smooth out outliers months, the spending hit $586 billion, effectively at an all time high with just the record spending spree during covid pushing government spending higher.

Key drivers of the deficit widening included outlays in the Departments of Health and Human Services and of Defense, up 12% and 13% respectively, adjusted for calendar differences. Health spending alone jumped by $62 billion compared with the same month last year.

At the same time, the US government collected just $326.8 billion in taxes, down a massive 19% from the $403.434 billion last October, and down even more from the $527 billion in tax receipts in September ’24. As shown in the next chart, while spending continued to grow exponentially, tax receipts have flatlined, and the 6 month average in October was just $380 billion, the same as three years ago!

It’s actually worse than it looks: according to the Treausry, last year’s October tax receipts were unusually higher due to deferred tax receipts that were received that month from companies and individuals affected by disasters including wildfires in California. Taking that into account, the budget deficit this October would have been 22% higher, a Treasury official said.

In any case, netting the two means that the US deficit exploded in October to a staggering $257.5 billion, and even though this included several calendar adjustments – which explains the freak September surplus which as we said was due to calendar effects – the number was not only $25 billion more than consensus estimates of a $232.5 billion deficit, it was a staggering 4x bigger than the $66.6 billion deficit in October of 2023. Worse, it was the second highest October deficit on record, and only the budget busting October when the US was spending to prevent an all-out economic implosion, was bigger.

And putting the deficit in context, October – the first month of the fiscal year – was just shy of the biggest deficit start to a year for the US Treasury on record, with just fiscal 2021 (i.e. October 2020) bigger.

In contrast with what has been a terrifying trend for some time now, the Treasury’s debt-servicing costs only rose slightly in October. Gross interest costs totaled $82 billion in October, unexpectedly down $7 billion from $89 billion in the same month a year before.

The drop meant that LTM interest spending posted the first (very modest) sequential drop – from $1.133 trillion to $1.126 trillion –  since August 2023.

That’s because the weighted average interest rate for total outstanding debt by the end of September was 3.30%, at roughly 15-year highs, but down slightly from the month before, the second monthly decline.

However, don’t expect this decline in interest spending to persist because even though the Fed has cut rates twice since September, this has been more than offset by the surge in debt which at last check was just shy of $36 trillion, and unless Elon’s Department for Government Efficiency (DOGE) manages to somehow slash trillions in both spending, this is what US debt will look like for the next few years, guaranteeing that interest on said debt will very soon become the single largest spending category for the US government.

The mindblowing figures illustrate the monumental challenge for Trump and all those promising to rein in US debt, which has exploded to 120% of GDP after four years of Biden’s “drunken-sailor” spending ways. Last night Trump tapped Elon Musk and Vivek Ramaswamy to look at ways to cut spending. Thursday’s figures showed the bulk of the outlays are in areas that are bound to be politically challenging to address, in other words, any cuts even remotely close to the $2 trillion suggested by Vivek would lead to a revolt.

Tyler Durden
Wed, 11/13/2024 – 18:00