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Putin Powerfully Rebuffed The Hawks Who Want Him To Attack NATO

Putin Powerfully Rebuffed The Hawks Who Want Him To Attack NATO

Authored by Andrew Korybko,

In his words, talk about Russia attacking NATO “is not simply nonsense; it is a provocation.”

Several top “Non-Russian Pro-Russians” (NRPR) influencers rang the alarm last month about Russia’s alleged plans to attack NATO, which were inspired by top hawk Sergey Karaganov and then Russian Ambassador to the OSCE Dmitry Polyanskiy ominously channeling his rhetoric. Readers can review examples of their warnings herehereherehere, and here. Casual NRPRs therefore braced themselves for what would have in that scenario almost certainly been the start of World War III had it come to pass.

It obviously hasn’t and it likely won’t ever, however, judging by Putin’s response when he was recently asked about these alleged plans during a meeting with foreign journalists. In his words, “Why would Russia attack Europe or go to war with NATO? What would be the purpose? As I have said before, these claims are not merely nonsense. In my view, they are a deliberate provocation designed to create the impression of a threat that does not actually exist.”

Putin then elaborated that “The objective is to persuade their populations to increase defence spending and, as a first step, to pay for the regime that seized power in Kiev. That, I believe, is the real explanation. It is not simply nonsense; it is a provocation. What surprises me, however, is that some people in European countries appear to believe it. I find that astonishing. The whole notion is simply absurd. It would be amusing if it were not so sad.”

It’s not just “some people in European countries” who “appear to believe it”, but his own top hawk is championing this policy and it was recently amplified to the max by top NRPR influencers, many of whom can be described as “state-adjacent” due to being platformed by publicly financed media, attending government-organized conferences, and/or taking state-secured tours of Donbass.

Casual NRPRs are therefore left to wonder whether Putin is telling the truth or is “psyching out the West”.

It’s always best to defer to what Putin himself says in such cases whenever confusion arises, which is due to top NRPR influencers practicing what’s been called “Potemkinism”, or the creation of “alternative realities” about Russian interests and policy for “strategic purposes” (whatever they might be). The most infamous example is that Putin is an anti-Zionist secretly allied with Iran against Israel despite him being a proud lifelong philo-Semite as proven by his many quotes to this end from the official Kremlin website.

Accordingly, while it would be inaccurate describe the fiercely loyal Karaganov as a “provocateur” in the spirit of how Putin condemned such folks who advocate for Russia to attack NATO, he nevertheless powerfully rebuffed hawks such as him as well as the top NRPR influencers who hyped up his rhetoric. That said, Russia’s foreign spy service did indeed warn last month that their country might carry out retaliatory strikes against Latvia if Ukraine launches drones from there, which should be taken seriously.

That’s altogether different than what Karaganov has been pushing for, namely a first strike against NATO that could easily spiral into World War III, and it’s important for casual NRPRs to understand this. As Putin himself phrased it, such talk “is not simply nonsense; it is a provocation.” When those on Russia’s side do it, no matter what their intentions might be, they inadvertently “persuade [Westerners] to increase defence spending and, as a first step, to pay for the regime that seized power in Kiev.”

Tyler Durden
Wed, 06/10/2026 – 23:25

AI Price Wars Begin: OpenAI Considers “Drastic Price Cuts” In Pursuit Of Anthropic Customers

AI Price Wars Begin: OpenAI Considers “Drastic Price Cuts” In Pursuit Of Anthropic Customers

Earlier today, in a report discussing how “AI bills are out of control“, JPMorgan tech guru and TMT salesman, Mark Schilsky wrote that “most of my high level investor discussions focus on one major topic: when will the party end? Put another way, tech investors have made so much money in Semis so quickly that they are looking for potential warning signs that the music is about to stop. Predicting such an end is incredibly difficult. As such, investors are searching for forward-looking indicators that might suggest the AI party is nearing a peak.” 

Here, the JPM trader highlighted perhaps the clearest indicator that the music was about to stop: “A slowdown in the growth of the annualized run-rate revenues of the major AI labs. If there is any sort of second derivative ‘kink’ in their growth algorithms, that could portend a future problem for the AI trade.”

In response to this, we pointed to just such a “slowdown in the run-rate revenues”, when we showed that the Silicon Data token price index is down for 7 straight days to a level last seen in mid-January, or long before the current agentic craze started. Almost as if it knew something… 

Source

Turns out it did: late on Wednesday, with futures surging and Korean stocks erasing a nearly 5% drop and turning green, and euphoria generally back front and center, the WSJ may have burst the AI bubble when it reported that – contrary to conventional wisdom that token prices will magically go to infinity – OpenAI, which has been badly lagging both the revenue and IPO race with Anthropic in recent months – was considering “drastically lowering the prices it charges users” in a panic scramble to regain market share and win back customers from archrival Anthropic.

And so, at a time when there is suddenly a mass realization that token prices had been soared in recent weeks, a wake-up call which JPM lovingly described as follows: “investors have been discussing the possibility that much of the token spend that corporate America is currently incurring is ‘wasted’. Anecdotes from companies like UBER aren’t helping this narrative”, OpenAI is weighing significant cuts to what it charges for tokens. Hilariously, the move would be in anticipation of similar cuts the company expects at Anthropic, which is trying to double how much it charges for its latest model, Fable, which provides at best a very modest modest improvement in performance over Opus 4.8.

In short, we now have a classical deflationary race to the bottom, precisely the opposite of what the profit-strapped industry desperately needs to grow into its gargantuan balance sheets (and massive SPVs); Instead, the AI world is about to get hit with a collapse in both revenues and profit margins, while cash burn goes into full-on incinerator mode.

Warning that “business executives have begun to balk at the high prices for AI usage”, the WSJ writes that OpenAI CEO Altman said at a recent event that costs had become “a huge issue.”

“I think we’ll have a lot of ways we can help people get more value for less spend,” he said.

In other words, LLMs tried to push up token prices to and beyond their breaking point… and succeeded.

And now it’s time for the brutal drop: a drastic price war will erode the profit margins of both companies, which already lose billions of dollars because of the enormous cost for computing resources needed to run AI systems. 

Altman’s decision to start a price war was prompted by OpenAI’s attempt to catch up with its younger rival in the race to win enterprise customers that are paying large amounts of money for AI tools that can improve workplace productivity. Anthropic’s revenue recently surged
“after its coding tool Claude Code went viral among software engineers, and the five-year-old startup surpassed OpenAI’s valuation for the first time.”

Or at least that’s the WSJ version of events. In reality what happened is that Anthropic quietly annualized the one-time bumper revenue from Feb-May during the agentic splurge when nobody had any idea what they were paying, to come up with the ludicrous $47BN ARR, which they then actively paraded ahead of their IPO. But let’s see what Anthropic’s ARR is next month will be after clients finally check their token bills.

Sure enough, as we have been writing repeatedly in recent weeks, “some corporations poured so much money into Anthropic’s products that their leaders are now seeking to rein in spending. Earlier this year, an Uber executive said the company had maxed out its 2026 budget for agentic, or autonomous, AI use, and another company leader said last month that it was difficult to link AI coding productivity improvements to new customer features.”

In other words, yet again the age-old question of whether and when AI will have a positive ROI rears its ugly head, and the answer is not any time soon… if ever. 

Such comments from many executives have triggered a broader debate within Silicon Valley about so-called “tokenmaxxing,” or the practice of using as many tokens as possible to boost productivity, including in ways that don’t generate returns on investment. That may have worked 6 months ago when LLMs were giving out compute for free to capture market share, but it doesn’t work now that all the major AI companies are suddenly charging an arm and a kidney for an “agent” that responds to emails. 

As the WSJ concludes, “a price war would be an early test of the strength of both companies’ business models ahead of hotly anticipated public listings.” OpenAI and Anthropic have captured the majority of revenue from new AI products, powering their rise. But an underlying risk that investors have long identified is the interchangeability of their products, and the ease with which customers can abandon one for the other. 

There is a bigger risk: as we noted one week ago, in the coming price war, neither OpenAI nor Anthropic will win. Instead it will be the country that has made reverse engineering Western technology and then selling it back to the west at 90% off, into an art form. Yes, China is about to enter the chatbot. 

Tyler Durden
Wed, 06/10/2026 – 23:03

As Spy Law Nears Expiration, Lawmakers Mull Short-Term Renewal

As Spy Law Nears Expiration, Lawmakers Mull Short-Term Renewal

Authored by Nathan Worcester via The Epoch Times,

President Donald Trump’s pick for a key intelligence post has left Democrats and Republicans at odds over a spy law set to lapse on June 12.

As the clock ticks down, lawmakers are contemplating Trump’s latest proposal: another short-term extension of the authority while the president searches for a permanent nominee other than his chosen acting director of national intelligence, Bill Pulte.

Section 702 of the Foreign Intelligence Surveillance Act (FISA) allows the government to spy on foreign targets outside the United States.

It has long been controversial, in part because Americans can also be caught up in its warrantless surveillance dragnet. Section 702’s defenders stress its importance to national security, the risks of allowing it to expire, and the strength of the 2024 reforms to the program.

The provision was renewed in late April for a period of 45 days as some lawmakers pushed for reforms to the law.

Also in late April, the House passed a three-year renewal of the spy law with some reforms, though without new warrant requirements.

Democrats raised concerns with re-upping it after Trump selected Pulte as acting director of national intelligence (DNI).

Pulte, director of the Federal Housing Finance Agency and a close Trump ally, is set to replace outgoing DNI Tulsi Gabbard on June 19 while retaining his other duties.

Acting appointments do not require Senate confirmation—but Democrats and some Republicans in the Senate appeared less than enthusiastic about the selection after Trump announced it on June 2.

When asked about Pulte on June 2, Sen. John Cornyn (R-Texas), who lost the GOP Senate primary to Trump-backed Ken Paxton, told reporters, “I see no evidence of any qualifications for that job.”

Sen. John Cornyn (R-Texas) speaks at a rally for his Senate primary campaign in Austin, Texas, on Feb. 17, 2026. Nathan Worcester/The Epoch Times

That same day, Sen. Tom Cotton (R-Ark.), who chairs the Senate Intelligence Committee, declined to comment on Pulte’s fitness for the position when asked about him.

Sen. Mark Warner (D-Va.), ranking member of the intelligence committee, voiced shock and disapproval of Trump’s selection at a June 2 hearing, noting that Pulte lacked experience in law enforcement, the military, and other relevant domains.

He also warned that the pick could undermine public confidence in Section 702.

On June 5, almost all Senate Democrats, joined by some Republicans, blocked a measure to renew the provision.

With the Pulte controversy brewing, House Speaker Mike Johnson (R-La.) met with Trump at the White House on June 9. Johnson’s staff confirmed the meeting to The Epoch Times but did not elaborate on what was discussed.

On June 10, Trump laid out a new path forward on Truth Social.

“I am asking Congress to send me a short-term extension of FISA to provide time for the selection and confirmation of a permanent head of the agency,” the president wrote.

Some Senate Democrats continued to express concern about Pulte and Trump’s plan.

Warner told reporters he was not sure if there were enough votes to advance a short-term extension of the authority.

Sen. Mark Warner (D-Va.) speaks at a campaign event for Virginia Democratic gubernatorial candidate former Rep. Abigail Spanberger at H Mart in Centreville, Va. on Nov. 2, 2025. Madalina Kilroy/The Epoch Times

Sen. Peter Welch (D-Vt.) told reporters he would “listen to Senator Warner, adding that the choice of Pulte was “the best way to sabotage [Section] 702.”

Sen. Chris Murphy (D-Conn.), a frequent critic of Section 702, told The Epoch Times he had not seen Trump’s proposal, adding, “There’s no votes for this bill while Bill Pulte is still on the job.”

Yet, some key Democrats and aligned lawmakers signaled more optimism.

Sen. Brian Schatz (D-Hawaii), who is expected to succeed outgoing Sen. Dick Durbin (D-Ill.) in leadership, told reporters he was open to a short-term extension. He said he doesn’t anticipate the provision will lapse on June 12.

Sen. Angus King (I-Maine), an independent who caucuses with Democrats, told reporters a short-term extension could pass muster with him if it came with a clear timeline.

However, he said he would have issues with Pulte staying in the role “for an indefinite period.”

Sen. Josh Hawley (R-Mo.) told The Epoch Times he had no problems with Pulte.

“If he wants him to be acting as short-term [DNI], that’s fine,“ he said. ”If he wants to nominate him permanently, that’s fine by me.”

Hawley told reporters he would not raise opposition to a short-term extension of the authority.

Tyler Durden
Wed, 06/10/2026 – 22:35

The SAVE America Act Hits A Milestone, Does It Have Momentum Now?

The SAVE America Act Hits A Milestone, Does It Have Momentum Now?

The SAVE America Act remains in limbo, but it achieved a critical milestone during a late-night vote-a-rama to advance the GOP’s $70 billion immigration enforcement package, when Sen. Susan Collins (R-Maine) switched her vote. That means the only thing preventing it from becoming law is the 60-vote threshold in the Senate.

The legislation, formally titled the Safeguarding American Voter Eligibility Act, would require proof of U.S. citizenship at voter registration and a valid photo ID to cast a ballot in federal elections. It cleared the House months ago and has sat in the Senate since, caught between a Republican majority that supports it and a 60-vote cloture threshold that has become its ceiling.

Despite the filibuster standing in its way, reports suggest that meeting the 50-vote threshold to pass has given the legislation new momentum.

The path to 50 came through Sen. Mike Lee’s (R-Utah) amendment, which used the bill’s original, unmodified form as passed by the House. An earlier attempt by Sen. Lindsey Graham (R-SC) to attach a modified version that included additional provisions, such as barring men from competing in women’s sports, fell short when four Republicans defected. Sens. Collins, Lisa Murkowski (R-Alaska), Mitch McConnell (R-Ky.), and Thom Tillis (R-N.C.) all voted against the Graham version. Collins switched her vote on Lee’s amendment and provided the crucial 50th yes vote.

“51 votes for the SAVE America Act during tonight’s budget reconciliation vote-a-rama,” Lee said in a post on X during the session.

“That means that but for the Zombie Filibuster, the House-passed SAVE America Act would now be on its way to the White House for President Trump’s signature.”

The Zombie Filibuster he references is the modern mutation of a once-demanding procedural tool that required senators to physically hold the floor with hours of continuous speech. Today, any senator can invoke it with a single objection; legislation dies unless it clears 60 votes, and no one has to say a word.

Lee and a bloc of conservatives have pressed Senate Majority Leader John Thune (R-SD) to force a talking filibuster, requiring Democrats to hold the floor continuously until they run out of steam and the bill advances by a simple majority. However, Thune has so far declined. 

Thune’s concern is that a sustained floor fight and a flood of Democratic amendments could fracture the Republican conference or cause collateral damage to other pieces of Trump’s agenda. It is a calculated bet that the bill’s supporters find increasingly difficult to accept.

The filibuster has taken a huge toll on the productivity of the U.S. Senate. Congress is on pace to enact less legislation in this two-year session than at any point since Barack Obama’s presidency. According to GovTrack, just 97 bills became law across the two most recent Republican-controlled Congresses, compared to 274 during the 118th Congress. The last time the number sank this low was the 112th Congress. 

Yet, the battle inside the chamber bears almost no relationship to where the country stands on the SAVE America Act. A Harvard-Harris poll from earlier this year found broad public support for the SAVE America Act, with 71% of Americans supporting the legislation, including 69% of independents and even 50% of Democrats. Support for its key provisions is even stronger: 81% favor requiring voter ID, 75% support proof of citizenship to vote, and 80% want states to remove non-citizens from voter rolls. Perhaps most striking, 85% of Americans—including 84% of independents and 82% of Democrats—agree that only U.S. citizens should be allowed to vote in federal elections. Overall, 60% view the bill as a commonsense measure to prevent fraud and safeguard election integrity.

Trump has directed his frustration at Senate Parliamentarian Elizabeth Macdonough, who ruled the SAVE America Act ineligible for inclusion in the GOP’s $70 billion immigration enforcement package under the Byrd Rule, which governs what legislation qualifies for budget reconciliation at a 50-vote threshold. 

Trump has called on Thune to remove her. 

“Just the other night, as an example, she ruled against us on a proposal that would have easily been approved, and should have been, by anyone else,” Trump posted. He followed with a sharper message on Truth Social: “We have every right to change her, and should do so, IMMEDIATELY,” Trump wrote, adding, “As long as she’s there, we will never get our desperately needed, SAVE AMERICA ACT, approved, and put into full force and effect!” 

Thune dismissed the pressure as routine.

“That’s not a new request, as you all know,” Thune said of Trump’s demand, “and as is typically the case, the parliamentarian, the rulings break both ways. And, you know, we lose a few, we win a few, but that’s been true when Democrats have been in the majority, too.”

Collins, who provided the decisive 50th vote on Lee’s amendment, has previously stated she will not support eliminating the filibuster, and it’s unlikely she’ll change her mind on that with her facing a tough reelection bid this year. But reaching the 50-vote threshold to pass the upper chamber is a modest victory that could change the debate going forward.

Tyler Durden
Wed, 06/10/2026 – 22:10

New Arizona Law Targets Demand Behind Prostitution, Sex Trafficking

New Arizona Law Targets Demand Behind Prostitution, Sex Trafficking

Authored by Allan Stein via The Epoch Times,

Arizona has enacted a law that increases penalties for people who buy or attempt to buy sex, and directs new funding to services for victims of sex trafficking.

Under the law, paying, agreeing to pay, or offering to pay for sexual conduct is now a felony offense and carries mandatory jail time. Offenders must also pay a $200 assessment, with all proceeds dedicated to programs that assist trafficking survivors.

A first offense can result in up to 15 days in jail, while a second offense carries up to 30 days.

“Arizona is going after the demand that fuels prostitution and sex trafficking,” said state Rep. Selina Bliss, chairman of the House Health and Human Services Committee, in a June 8 statement.

“This is a victory for families, neighborhoods, and victims who deserve a path out,“ Bliss, who co-sponsored the bill, added. ”The people paying for sex are funding an industry that traffickers exploit, and communities across Arizona are left to deal with the crime, abuse, and damage that follow.

“This law holds offenders accountable, puts money directly toward helping victims recover, and puts every person who pays for sex in Arizona on notice: you can face jail time, a felony record, and the consequences that come with it.”

House Bill 2720 also expands protections for trafficking victims. Courts must seal records tied to prostitution convictions that are later vacated because the individual was a victim of sex trafficking. Supporters say the change will help survivors pursue jobs, housing, and other opportunities without the burden of a criminal record.

Lawmakers said the bill was developed with input from local officials, advocacy organizations, neighborhood groups, schools, and residents seeking stronger action against prostitution and sex trafficking.

Parts of Phoenix, including a three-mile corridor known as “The Blade,” have long been associated with street prostitution. In 2025, the Maricopa County Attorney’s Office filed 437 prostitution-related cases, fueling debate between law enforcement officials and advocates who argue that many people arrested for prostitution are trafficking victims rather than willing participants.

A 2015–2016 study by Arizona State University found evidence that sex trafficking in Arizona had grown substantially over the previous 15 years.

Researchers noted, however, that the increase could have reflected both a rise in victimization and greater public awareness and enforcement efforts.

In Arizona, prostitution is classified as a Class 1 misdemeanor, punishable by up to six months in jail, a $2,500 fine, and as much as three years of probation, according to AZDefenders.com.

Related offenses include solicitation, pandering, facilitating prostitution, and child prostitution.

Escort services remain legal under Arizona law, provided no sexual acts are offered or exchanged for compensation.

Arizona is home to two federally funded human trafficking task forces—the Southern Arizona Anti-Trafficking Unified Response Network and the Central Arizona United to Stop Exploitation Task Force—as well as the City of Phoenix Human Trafficking Task Force and the Governor’s Human Trafficking Council. Together, they work to raise awareness, identify victims, and expand support services for survivors.

Tyler Durden
Wed, 06/10/2026 – 21:45

SoftBank Attempt To Get Downsized $6 Billion OpenAi Margin Loan Stalls

SoftBank Attempt To Get Downsized $6 Billion OpenAi Margin Loan Stalls

One month ago, Japanese tech giant SoftBank Group, was forced to downsize plans for a $10 billion margin loan backed by its OpenAI stake after facing hesitation from some creditors. Today, it couldn’t even get that done after talks with potential creditors to raise the downsized $6 billion stalled amid rising concerns about the collateral value, Bloomberg reported citing people familiar with the matter. 

As a result, the company is now considering various different fundraising options, although it could still move forward with the margin loan at a later stage, they added.

It’s unclear why the margin loan discussions stalled. SoftBank had allegedly secured some $5 billion for the loan before the development, although it was unclear if those were verbal or written commitments. Judging by the outcome, the commitments were tenuous at bet. 

According to the report, the current inaction on the margin loan comes even after some of the potential lenders who had been pitched on it – and who did not view it in an all too favorable light to start – said that they’d started to consider it in a more favorable light, after news last month that the ChatGPT creator was preparing to file for an initial public offering.

Previously some of the potential creditors pitched on the margin loan had expressed concerns about the difficulty of reaching a valuation for an unlisted company like OpenAI. As noted above, SoftBank downsized the loan’s initial target size by 40% after facing pushback from some of the potential lenders. 

“The margin loan is just one piece of a much larger puzzle, and unless we see a clear deterioration in their ability to raise funds this way, we don’t view it as a standalone red flag,” said Hua Cheng, head of Asia credit research at AllianceBernstein. “The best‑case scenario is an OpenAI IPO this year, with SoftBank offloading part of its stake to pay down debt. That would be consistent with what credit investors want.”

OpenAI filed confidentially for an IPO in the US, joining artificial intelligence rivals in tapping public markets to fund ambitious growth plans. The firm is working with Goldman  and Morgan Stanley on a potential listing as soon as in the fall. 

Loan aside, markets have witnessed a broader debate in recent months about SoftBank’s commitments of more than $60 billion to OpenAI at a time when recent breakthroughs by resurgent rival Anthropic PBC have raised doubts for some investors about the business. Within SoftBank itself, some officials had grown anxious about that commitment, according to Bloomberg.

Never one to back down, Masa Son – who nearly went broke after the dot com bubble burst – has been ramping up its broader AI plans. Late last month, it said that SoftBank plans to invest as much as €75 billion – which it does not have – to build artificial intelligence data center capacity in France, saying the country is poised to become a top European hub for AI infrastructure (narrator: it’s not). 

But storm clouds are gathering again for Masa: looming in the background is a $40 billion bridge financing that supported the conglomerate’s investments in OpenAI, and which SoftBank must repay in March 2027. SoftBank has said that borrowing would likely be repaid “through the utilization of existing assets and other financing measures.”

While SoftBank has a number of potential fundraising options, it’s unclear if it would opt to use any of them. Those include potential issuance of more bonds, or possibly borrowing against other listed holdings in its portfolio, although if it can’t get a margin loan against its portfolio crown jewel, one wonders what terms its other assets would garner. Its stakes include ones in Arm Holdings and Intel, whose shares have jumped 197% and 192%, respectively, so far this year amid the AI boom. 

Following the news, Softbank shares tumbled as much as 9.7% Wednesday. Even after declines, SoftBank’s stock was still up about 45% for the period, extending gains in recent weeks after the company reported a jump in quarterly profit due largely to valuation gains on its OpenAI investment. On June 1, SoftBank overtook Toyota Motor Corp. as Japan’s most valuable company by market capitalization. 

Tyler Durden
Wed, 06/10/2026 – 21:31

JPM Says US Defense Base Faces ‘Evolve Or Die’ Moment As Warfare Forever Changes

JPM Says US Defense Base Faces ‘Evolve Or Die’ Moment As Warfare Forever Changes

For several quarters, we have described the Trump administration’s massive push to reshape the military-industrial complex, from DOGE-driven efforts inside the Department of War to reset the procurement process, to a broader pivot toward fast-moving “war unicorns,” like Anduril, rather than bloated legacy defense primes.

The urgency of that transition is now capturing Wall Street’s attention. JPMorgan analysts frame it as a major inflection point: America’s defense industrial base must shift away from slow-moving, costly production and toward one built around speed, scale, technology, low-cost, attritable systems, and rapid battlefield iteration to preserve America’s status as the world’s dominant military power. 

Analyst Jahangir Aziz pointed out: 

The U.S. defense-industrial enterprise now stands at a decisive inflection point.

Success in the era ahead will be determined by its ability to deliver on three tightly interlocking imperatives: integrating the defense and commercial industrial bases, unlocking genuine mass-scale production, and unleashing innovation across the entire ecosystem.

Together, these are the enabling conditions for a force capable of meeting the relentless operational and technological pressures revealed in Ukraine, exposed by China’s fusion model, and only latently present in the U.S. system today.

Aziz wrote that the post-Cold War model, centered on highly capable systems such as the F-35 stealth fighters, aircraft carriers, and advanced missile platforms, has been rendered obsolete in a world defined by China’s anti-access strategy, Russia’s war in Ukraine, the Iran conflict, suicide drones, cyber warfare, electronic warfare, and other low-cost precision weapons.

He said that modern warfare is increasingly defined by the ability to “sense, make sense, and act,” relying on the processing of vast amounts of data and translating it into timely decisions. Such as AI ‘kill chains’… 

The four major vulnerabilities in the U.S. defense industrial base that he outlined include shallow supplier depth, slow acquisition timelines, prime-contractor concentration, and fragile global supply chains, including exposure to China-linked inputs.

U.S. Defense Base Supply Chain 

He warned that major defense programs can take years to field, while critical electronics may be obsolete before they ever reach the modern battlefield.

U.S. Military’s procurement process timeline

Capacity constraints notable among the primes

That lag has become a major problem as modern warfare quickly evolves across Eurasia and the Middle East, from Ukraine to the Gulf, where drones, robotics, electronic warfare, and AI-enabled kill chains are transforming how conflicts are fought. The battlefield of the 2030s will be defined less by slow-cycle platforms and more by high-speed, low-cost, increasingly automated weapons.

For the U.S. military to remain dominant on the global stage, the analyst laid out a clear framework for how that advantage must be secured: 

Our broader take, however, is that the direction of travel is likely to be shaped by the following factors. First, as mentioned, the nature of war has changed and communication and control capabilities will be fundamental in the digital age. Second, that successful defense industrial bases elsewhere, each in their own way, have largely based their success on the integration of their defense and commercial industrial bases. Third, and related to the two above, the U.S. possesses a technological edge in the digital space that is largely in the commercial sector, and integrating it into the defense ecosystem is crucial for the U.S. to maintain its military dominance.

To maintain military dominance, the U.S. defense base must secure enduring advantages by:

  • Integration: Forge deeper links between defense and commercial sectors, leveraging shared platforms, open standards, and continuous feedback.

  • Scale: Build modular, manufacturable systems for rapid mass production, lower barriers for new entrants, and foster a networked industrial base.

  • Innovation: Drive software-led transformation, iterative hardware development, and commercial digital integration. Emerging tech leaders are reshaping autonomy, hypersonics, advanced manufacturing, satellite communications, and mission resilience.

  • Policy reforms like NDAA and Modular Open Systems Architecture (MOSA) are promising, but must overcome entrenched acquisition processes, PPBE constraints, and persistent friction over intellectual property and data rights—barriers that can either enable competition and modularity or reinforce vendor lock-in and exclude new entrants.

America’s defense industrial base stands at a crossroads. Adapting to persistent competition, rapid technological change, and mass-scale attrition warfare is not optional; it’s essential. Enduring advantage will depend on integrating commercial and defense sectors, scaling production, and accelerating innovation, while dismantling deep-seated institutional and structural barriers. Failure to act risks eroding deterrence and long-term military effectiveness, with consequences for national security and global leadership.

None of this should surprise readers. We have repeatedly highlighted the rise of “war unicorns” such as Anduril and other defense-tech startups that are building affordable, scalable, and software-defined weapons systems for the modern battlefield.

Beyond Anduril in the war unicorn sphere, there’s DZYNE Technologies developing autonomous defense systems… 

Anduril’s rapid ascent has already captured Wall Street’s attention. Goldman analysts recently sat down with company executives to better understand the story, the business model, and the role Anduril could play in the next phase of rebuilding America’s next-generation defense-industrial base. The takeaway is increasingly clear: the future of U.S. military power will not be defined by legacy primes alone, but by war unicorns.

Tyler Durden
Wed, 06/10/2026 – 21:20

CBP Chief Says Border Wall Should Be Finished By Late 2027

CBP Chief Says Border Wall Should Be Finished By Late 2027

Authored by Jack Phillips via The Epoch Times,

The U.S. southern border wall will be completed by the end of next year, said U.S. Customs and Border Protection (CBP) Commissioner Rodney Scott at an event on Tuesday.

Scott told an audience in Washington that the “primary border wall … will be done by the end of 2027,” adding that there are a “couple of gaps.” The wall will stretch from San Diego to Texas near the Gulf of Mexico.

“The only places we’re not building a border wall is places where we’ve made a conscious decision that we don’t need it,” Scott said at the Center for Immigration Studies conference, adding that Big Bend National Park is an example of a “super remote area” with “some very, very high cliffs” that preclude construction of the wall.

Other parts of the border wall, including a secondary wall and a barrier in the Rio Grande, will be complete by July or August 2028, Scott said. The barrier will also be backed by electronic surveillance and other systems, he added.

The border wall, which was a campaign promise made by President Donald Trump during his 2016 presidential campaign, is designed to curb illegal immigration and drug trafficking into the United States.

But Scott said the wall isn’t enough to completely stop either one. Drug traffickers and human smugglers are using tunnels to find workarounds, he said.

“That is their business model, and drones definitely make it easier,” he said, adding, “They’re also smuggling narcotics across with drones.”

On the first day of his second term in January 2025, Trump signed an executive order directing the Department of War and Department of Homeland Security secretaries to “take all appropriate action to deploy and construct temporary and permanent physical barriers to ensure complete operational control of the southern border.” The One Big Beautiful Bill Act, approved by Congress in July 2025, included $46.5 billion for border wall construction.

Apprehensions of people crossing the border illegally in the Big Bend Sector fell 74 percent in fiscal 2025 compared with fiscal 2023, according to the CBP. Autonomous surveillance towers have also significantly reduced traffic, according to the agency.

Last month, the CBP released data marking a year of zero releases at the southern border, and apprehensions of illegal immigrants have dropped to their lowest levels in more than three decades.

The agency said that the Border Patrol recorded 8,943 apprehensions along the southwest border in April, a 94 percent decline from the monthly average under the Biden administration and 96 percent below the peak in December 2023.

Rodney Scott, commissioner for Customs and Border Protection, testifies on Capitol Hill in Washington on April 16, 2026. Madalina Kilroy/The Epoch Times

“The U.S. Border Patrol released zero illegal aliens into our country again this month, unlike April 2024, when more than 68,000 were released under President [Joe] Biden,” Scott said in a statement in May.

The Trump administration has also prioritized deporting illegal immigrants.

The White House’s border czar, Tom Homan, said in an interview in May that the administration is moving to increase deportations and that around 800,000 illegal aliens have been removed from the country since Trump took office again.

Tyler Durden
Wed, 06/10/2026 – 19:15

Goldman Flags Tightening Power Grid In Texas Amid Rapid Data Center Growth

Goldman Flags Tightening Power Grid In Texas Amid Rapid Data Center Growth

Goldman shared some of their thoughts on the tightening of power markets as the decade comes to a close. ERCOT’s own Preliminary Long-Term Load Forecast now sees baseline peak-summer demand (excluding most medium and large loads) growing at a 5.2% average annual rate from 2026 through 2030. This is already well above the 3.4% realized average of 2022-2025. 

Layer in the medium- and large-scale additions, overwhelmingly data centers plus crypto and industrial electrification, and the forecast explodes to 31% average annual peak-summer growth.

Put that in national context and Texas alone would account for 39% of total U.S. peak-summer power demand by 2030, up from just 11% last year, assuming the rest of the country continues its slower recent trajectory. 

Goldman analysts flag a 200 GW queue of large-load applications sitting with the grid operator. Even if only 10% of that queue ultimately energizes, it would still lift the region’s demand growth rate above 9% against an expected 6% annual increase in effective generation capacity over the same window. That math points to a high probability of a critically tight market unless supply-side responses accelerate sharply in the next few years.

A quick look at Goldman’s recent nuclear report for last month shows the large grid-scale reactor industry is still sleeping in the US…

Earlier we highlighted ERCOT’s disclosure that multiple clusters of proposed hyperscale loads and crypto facilities failed voltage ride-through testing. Four of those groups alone could shed more than 5,000 MW (Boston-sized chunks of demand) during routine transmission disturbances. That is the demand-side mirror of the Spain blackout dynamics we referenced, where rapid disconnections and inadequate reactive power support turned a manageable event into a cascading failure.

ERCOT is not alone in upgrading its outlook. PJM lifted its 10-year average annual peak-summer demand growth forecast from 3.1% to 3.6% earlier this year. MISO raised its 20-year view from 1.6% to 2% in April, more than doubling its realized 2022-2025 average of 0.8%. 

These changes reflect the same AI-driven commercial load surge now visible in the data. Goldman shows the U.S. commercial sector posting the strongest year-over-year power demand growth in January-February at +1.8%, while industrial and residential lagged. Nationally, data-center capacity additions are accelerating, with Texas, Virginia, Arizona, Ohio, Indiana, and Georgia leading the way on a year-over-year basis.

On the generation side, the picture is mixed. Solar continues its seasonal ramp with solid year-over-year capacity additions. 

Natural gas-fired output has been responsive. But nuclear has been weaker due to maintenance outages, hydro is suffering from drought across more than half the country, and coal remains under pressure. 

Construction employment tied to data-center and utility work is rising sharply, which is welcome, but employment is not the same as energized megawatts and reinforced lines.

We noted flags starting to pop up regarding the lack of construction industry manpower back in October…

And we also noted other analysts starting to recognize the same body count issue – the lack of engineers and other skilled laborers to build the energy generating side of the grid. 

Tyler Durden
Wed, 06/10/2026 – 18:50

The Potemkin Ballot

The Potemkin Ballot

Authored by Spyridon Andrews via American Greatness,

The only completely predictable result of an election in a Western democracy is election fraud.

Fraud is so fundamental to Western democracies that it is fair to say that democracies exist in name only. In fact, elections have become so essential to illegitimate power that they are almost the surest path to subvert the will of the people. Potemkin elections are essential ways for the ruling class to mask that they are truly in control. The notion of the divine right, or right of the aristocracy to rule, died a relatively quick death after the Renaissance. And the 14th-century political Renaissance led by figures such as Leonardo Bruni, the brilliant Renaissance historian who later became chancellor of Florence, brought back the notion of the Roman Republic to the modern era. Florence reinvented free elections of the citizenry; however, the notion of citizenry was limited compared to today.

Palazzo Vecchio, the town hall of Florence, which sits on the Piazza della Signoria.

Uniquely, Florence had no king, duke, or hereditary monarch during much of the Renaissance. Power was vested in the city’s executive governing council, or the signoria. The Council was led by a chief magistrate, known as the Gonfaloniere di Giustizia or justice. There were various legislative and advisory councils, as well as guilds that represented merchants, banks, craftsmen, and professionals.

In order to avoid “corruption,” the Florentines used the lottery system. When a government position opened, names were drawn from bags. As a further precaution, terms were short, only two months, and rotations were constant.

Cosimo the Elder or “Father of the Fatherland.” Posthumous portrait attributed to unknown 16th-century Florentine workshop artists.

Enter the Medici. It was Cosimo de’ Medici who transformed the system into the dynasty that is famous in history. The Medici controlled the largest banking network in Europe and, consequently, extended credit to many of the continent’s most powerful families. The success of a merchant’s business relied upon loans or assistance from the Medici. As a result, patronage opportunities were abundant, and the Medici had a ready-made army of supporters. They also had the support of the intelligentsia through their patronage of literature and the arts. There was no need for Cosimo to be elected to office or even to be seen all that much.

This, however, did not prevent the Medici from influencing electoral outcomes in their favor. Although appointments were decided by lot, there was an art to ensuring that the correct names got dropped into the lottery in the first place. Committees controlled by the Medici determined which citizens were eligible to be elected to posts. So, although a genuine lottery was held, the candidate pool was not so genuine. Florence, on the surface, held free elections and had councils, debates, and all the symbolism of republicanism. But it was controlled by the family who controlled the money supply.

If this sounds familiar, this is because the Medici’s influence extended well beyond their patronage of literature and the arts. During the reign of Louis XIII in France, Cardinal Richelieu never wore a crown. Nevertheless, he controlled foreign policy, court appointments, political alliances, and intelligence networks.

William “Boss Tweed” (1823–78)

In America in the 19th and 20th centuries, the New York machine at Tammany Hall ran the show. The outward constitutional order remained in place, while the political bosses determined the candidates who could run, who received the patronage jobs, and who was awarded the political contracts. While Boss Tweed was an important part of the machine while he was alive, the machine outlived him, and the candidates became fungible.

The same type of arrangement was in place in Chicago from the time of Mike McDonald in the late 19th century all the way to the Daleys in the late 20th and early 21st centuries. McDonald and his political machine financed businesses and candidates, controlled networks, and made or broke political careers. McDonald was succeeded by the duo of Michael “Hinky Dink” Kenna and John Coughlin, an unlikely pair of Irish mobsters who ran the gambling houses and brothels, owned the police, and made sure that their business interests were fully accommodated by the mayors they owned. While neither Boss Tweed nor Mike McDonald were above stuffing ballot boxes or breaking a few legs to ensure the appropriate result, those were matters that only needed to be resorted to in dire emergencies.

The Old Federal Building, where Washington took the First Presidential Oath of Office in 1789.

The modern-day Rothschilds are perhaps less interesting as a secret cabal than as the outrageously wealthy banking family that can make or break global banks and governments. In the late 18th century, Mayer Amschel Rothschild placed his five sons in the European financial centers of London, Frankfurt, Paris, Vienna, and Naples. From there they went on to finance governments, underwrite sovereign debt, fund railroads and infrastructure, and move money across borders as fast as their clients needed it. And it is indisputable that the Rothschilds were fundamental in creating the modern state of Israel—from funding settlements to funding the Israeli parliament building.

It is not simply that the wealthy classes needed additional help to grab political power, but they sure received it in the Citizens United case in 2010. A majority of conservative justices held that political speech is protected by the First Amendment and that the identity of the speaker, whether it is a corporation, union, or nonprofit, does not eliminate that protection. While that was all very noble, the Supreme Court further held that independent expenditures are different from direct campaign contributions and that the states could not limit such spending. Needless to say, political spending exploded, and Super PACs, industry associations, labor-backed organizations, and ideological advocacy groups began buying up politicians and votes like a Blue Light Special at K-Mart.

Politicians selling themselves like hookers on South Figueroa Street in L.A. is not enough these days. Donors need insurance policies for the peace of mind that their investments do not go to waste. And so, they are not above good old-fashioned voter fraud. The alleged appearance of 24,000 votes from nowhere in the Los Angeles Mayoral primary election this week is a testament to the new era of “mail-in balloting,” which is about as legitimate as a Florida time-share. It was the midnight deliveries of mail-in ballots in swing districts during the 2020 election that led to the Capitol protests on January 6, 2021—and the perception by nearly half of Americans that the election was outright stolen.

The utter ignorance of the history of election fraud in the United States is perhaps the major reason that anyone would believe that our federal elections are trustworthy. Apart from the outright purchase of votes in Congress, American history has consistently had patterns of repeat voting, padded rolls, absentee-ballot abuses, vote buying, dead voters, false or corrupted registrations, not to mention election-official complicity, patronage pressure, counting manipulation, control of election officials, and downright intimidation. Election fraud is not prosecuted as often as it should be, but it is prosecuted with regular frequency. The 1982 Illinois Election Fraud cases, combined with the Greylord investigations and indictments of federal and local judges, have clearly demonstrated the infiltration of organized crime into the courtroom. And allegations of organized crime connections between presidents such as Kennedy and Nixon have swirled for decades.

This does not account for the recent charges and countercharges regarding gerrymandering, the reluctance to impose voter ID requirements, allegations regarding dark-money pools, and “legal” lobbying, which is considered outright bribery in other countries. Chicago’s corruption runs so deep that the residents of the city just assume that’s the way it’s all supposed to work. In fact, I hear Chicagoans complain that the system ran better when there was more of a sticker price on what it cost to fix a traffic ticket, reduce a murder charge, or buy an alderman’s vote on a zoning permit.

The demands of a democratic society have equally necessitated workarounds for unsavory results that stem from the will of the people. It was not the will of the people that brought us into either of the World Wars in the 20th century—certain workarounds had to be put into place. Although the cost of life, around 27,000 Americans, was regrettable during the Meuse-Argonne Offensive during World War I, the conveniently placed Zimmerman telegram alleging a German–Mexican alliance was necessary to bring us into the war in the first place.

American Doughboys in the final year of the Great War, likely captured at the Meuse-Argonne Offensive.

Pearl Harbor was regrettable, but apparently our leaders determined that the loss of life was necessary in order to make a highly unpopular war seem necessary. Americans did not vote to intern Japanese citizens, nor did they vote to infect black soldiers with syphilis. But our politicians knew better. In the last two wars, the threat of weapons of mass destruction has led to wars that politicians wanted to fight against Iraq and Iran. And so democratic government does not just necessitate vote buying and election tampering, but also an occasional well-placed lie in order to meet the demands of governing in accordance with the desires of the moneyed interests.

A cynical interpretation might hold that extending suffrage to women and the poor was less about social justice than about creating larger, more easily mobilized voting blocs. Vast voter pools, especially ones that can be purchased through government programs, motivated by single issues or through perceived grievances brought on by other groups, are terrific tools to stay in power.

When these issues become supercharged with emotion, usually through manipulation of media sources or outright lies, they usher forth passionate armies that stand for a candidate or a political party. A much more economical way to hold a voter base together is to convince them that Neil, who coaches your son’s little league team, is a fascist because he’s a Republican, or that Ahmed, who runs the 7-11 next to the dry cleaner, is an existential threat.

One could be cynical and believe that our political class has nothing but disdain for their voters and that they are capable of literally any act to stay in power. One could even believe that because they have seemingly lied to us about everything from the reasons to go to war, the origin of a global pandemic financed by our own government, or the extent of government surveillance by the NSA, they would be capable of anything.

We could say that. But that would be undemocratic.

Tyler Durden
Wed, 06/10/2026 – 18:25