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Waste Of The Day: Secret Settlements Get Taxpayer Money

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Waste Of The Day: Secret Settlements Get Taxpayer Money

Authored by Jeremy Portnoy via RealClearInvestigations,

Topline: Eight Massachusetts state agencies and 13 colleges spent $6.8 million to settle grievances, partly in secret, brought by their own employees from 2019 to 2024, according to a Jan. 16 report from State Auditor Diana DiZoglio. 

At least 80 of the 263 settlements contain confidentiality language such as a nondisclosure agreement — to keep certain details confidential between the two parties — which the audit claims is banned by state guidelines. 

Key facts: The Massachusetts Port Authority transit agency was responsible for 11 of the settlements, costing taxpayers $1.7 million. Most of the money came from a $1.4 million settlement in 2022 with an employee who alleged they were denied a promotion because of their gender. The details are sealed by an NDA.

Six of the confidential settlements involved alleged sexual harassment, and two involved alleged racial discrimination. Most of the others were about violations of collective bargaining agreements and employees who were fired without cause.

NDAs were seemingly used on an arbitrary basis. None of the colleges and state agencies included in the audit had a written policy explaining when confidentiality language should be used, except the inspector general’s office.

“By not having a documented policy on the use of confidentiality language in state employee settlement agreements, there is a risk that confidentiality language may be abused to cover up harassment; discrimination; or other inappropriate, unlawful, or unethical behaviors, potentially allowing perpetrators to continue to remain in their positions and engage in further inappropriate, unlawful, or unethical behavior,” auditor DiZoglio wrote.

All of the colleges and state agencies receive legal assistance from the state attorney general’s office. The office’s guidelines prohibit nondisclosure agreements, and the attorneys told auditors that all state agencies were made aware of the guidelines. 

DiZoglio argued that the NDAs may not even be enforceable. In June 2013, Suffolk County Superior Court sided with the Boston Globe newspaper in ruling that settlements between state agencies and their employees are public records.

Search all federal, state and local salaries and vendor spending with the world’s largest government spending database at OpenTheBooks.com

Background: The audit is a follow-up to a 2025 report that found 75 state agencies had spent $41 million on more than 2,000 employee settlements from 2010 to 2022.

Summary: Massachusetts’ NDAs hurt the public twice. They essentially use taxpayer funds to cover up potentially unethical behavior perpetrated using taxpayer funds.

The #WasteOfTheDay is brought to you by the forensic auditors at OpenTheBooks.com

Tyler Durden
Mon, 02/16/2026 – 11:40

Pentagon Threatens To Blacklist Anthropic As ‘Supply Chain Risk’ Over Guardrails On Military Use

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Pentagon Threatens To Blacklist Anthropic As ‘Supply Chain Risk’ Over Guardrails On Military Use

  • The Pentagon is reportedly about to cut ties with Anthropic, makers of Claude, which is already embedded in classified systems
  • The company insists on implementing guardrails over how the US military can use Claude – specifically when it comes to mass surveillance and autonomous weapons – after it was used in the Maduro raid without their knowledge.  
  • The Pentagon is now calling Claude a threat to national security
  • Some are accusing the overwhelmingly left-leaning company of trying to undermine the Trump administration, while Elon Musk says Claude ‘hates whites, Asians, heterosexuals, and men.’

Defense Secretary Pete Hegseth is reportedly “close” to cutting business ties with Anthropic and designating the firm a supply chain risk – a penalty typically reserved for foreign adversaries, a senior Pentagon official told Axios.

Anthropic’s flagship model, Claude, is already embedded in the military’s classified systems – however the company’s CEO has been pushing for abstract guardrails over ethical concerns for what the government sees as urgent national security needs. 

If classified as a national security risk, the designation would force any company that wants to do business with the U.S. military to certify it does not use Anthropic’s AI – effectively blacklisting the firm from large swaths of the defense ecosystem.

“It will be an enormous pain in the ass to disentangle,” the senior official told Axios. “And we are going to make sure they pay a price for forcing our hand.”

Chief Pentagon spokesman Sean Parnell confirmed the review, framing it as a matter of national security.

“Our nation requires that our partners be willing to help our warfighters win in any fight,” Parnell said. “Ultimately, this is about our troops and the safety of the American people.”

Claude was notably used during the January operation targeting Venezuelan leader Nicolás Maduro, highlighting how deeply embedded the software already is within U.S. defense operations. As Axios noted on Saturday: 

 The tensions came to a head recently over the military’s use of Claude in the operation to capture Venezuela’s Nicolás Maduro, through Anthropic’s partnership with AI software firm Palantir.

  • According to the senior official, an executive at Anthropic reached out to an executive at Palantir to ask whether Claude had been used in the raid.
  • “It was raised in such a way to imply that they might disapprove of their software being used, because obviously there was kinetic fire during that raid, people were shot,” the official said.

Since then, Pentagon officials and Anthropic executives have been locked in contentious negotiations over how the military may use the AI, particularly in surveillance, intelligence collection, and weapons development.

Anthropic CEO Dario Amodei at the World Economic Forum in Davos in January 2026. Photo: Krisztian Bocsi/Bloomberg via Getty Images

Anthropic CEO Dario Amodei has pushed for guardrails to prevent mass surveillance of Americans or the use of AI in fully autonomous weapons systems without human involvement, however the Pentagon says those restrictions are unworkable. Anthropic’s own Acceptable Use Policy (UAP) explicitly prohibits the use of Claude for: 

  • The design or use of weapons
  • Domestic surveillance
  • Facilitating violence or malicious cyber operations

These restrictions are not waived for military/government users unless the contract includes specific safeguards that Anthropic judges adequate, however defense officials insist that military AI tools must be available for “all lawful purposes,” arguing that real-world operations are riddled with gray areas that rigid rules cannot anticipate. The same standard is being demanded of other major AI labs, including OpenAI, Google, and xAI.

One source familiar with the talks said senior defense officials had grown increasingly frustrated with Anthropic – and seized the opportunity to escalate the dispute publicly.

Musk piles on – ‘evil’ and ‘misanthropic’

As the Pentagon showdown escalated, Anthropic also found itself under fire from another powerful adversary – Elon Musk.

Earlier this month, Musk launched a blistering public attack after the company announced a massive $30 billion funding round valuing it at roughly $380 billion. Musk labeled the company’s AI “evil” and “misanthropic,” accusing Claude of ideological bias and hostility toward certain demographic groups, accusing it of “hating Whites, Asians, heterosexuals, and men” in its outputs. 

Musk – whose own company xAI competes directly with Anthropic – mocked the firm’s name, suggesting that a company branded as Anthropic had paradoxically become anti-human.

That said, in January Anthropic cut off xAI’s access to Claude models, which xAI engineers had been using via the Cursor coding tool to speed up internal work. Anthropic enforces a strict policy against using its models to build/train competitors (they had done the same to OpenAI earlier). Musk’s co-founder Tony Wu (who just left) sent an internal note acknowledging the productivity hit but saying it would motivate xAI to build better tools, while Musk later called the cutoff “not good for their karma.”

Musk’s beef isn’t baseless; tests and user reports show Claude often declines queries that could be seen as offensive or non-inclusive (e.g., jokes about certain demographics, historical hypotheticals).

Musk has positioned xAI’s Grok as a less restricted, “truth-seeking” alternative to what he and allies describe as overly constrained or ideologically filtered models. Anthropic, by contrast, has built its reputation around “constitutional AI” – a framework designed to impose ethical limits on how its systems behave.

High stakes, limited alternatives

Designating Anthropic a supply chain risk would force defense contractors to rip Claude out of their internal workflows – a massive compliance headache given the company’s reach. Anthropic recently said eight of the ten largest U.S. companies already use its technology.

The Pentagon contract at risk is valued at up to $200 million – small compared to Anthropic’s reported $14 billion in annual revenue, but symbolically enormous.

Complicating matters, a senior administration official acknowledged that competing AI models are still “just behind” Claude when it comes to specialized government and classified applications, making an abrupt transition risky.

Still, Pentagon officials appear confident that other AI providers will ultimately agree to the “all lawful use” standard, even as sources close to the negotiations say much remains unsettled.

Tyler Durden
Mon, 02/16/2026 – 11:15

ByteDance Vows To Crack Down On “Unauthorized IP” In Seedance 2.0 After Legal Threats From Hollywood

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ByteDance Vows To Crack Down On “Unauthorized IP” In Seedance 2.0 After Legal Threats From Hollywood

Update (Monday):

Disney and Paramount Skydance have both sent cease-and-desist letters to ByteDance, accusing the Chinese tech firm of “blatant infringement” by embedding their intellectual property into its AI video generator, Seedance 2.0.

After Seedance 2.0 videos went viral across social media following the model’s release five days ago, Reuters reports that ByteDance issued a statement saying it will strengthen safeguards to curb unauthorized use of intellectual property on the platform.

We are taking steps to strengthen current safeguards as we work to prevent the unauthorized use of intellectual property and likeness by users,” ByteDance said.

Some of the latest Seedance 2.0 videos…

… which only suggests AI-driven equity disruption could emerge across Hollywood studios.

*   *   * 

AI-driven equity disruption was everywhere this past week, spreading like wildfire beyond software into insurance, commercial real estate, financials, shipping, wealth management, and likely many more industries in the coming trading sessions.

One industry in the crosshairs of AI disruption is Hollywood. Some of the publicly traded studios include The Walt Disney Company, Warner Bros. Discovery, Paramount Global, Sony Group Corporation, Netflix, Lionsgate, and others.

On Friday, Axios reported that the Walt Disney Company sent a cease-and-desist letter to ByteDance, alleging that the Chinese tech firm has been infringing on its films to develop Seedance 2.0 without compensation.

Disney’s outside attorney, David Singer, wrote a letter to ByteDance global general counsel John Rogovin, accusing the AI company of “pre-packaging its Seedance service with a pirated library of Disney’s copyrighted characters from Star Wars, Marvel, and other Disney franchises, as if Disney’s coveted intellectual property were free public domain clip art.”

“Over Disney’s well-publicized objections, ByteDance is hijacking Disney’s characters by reproducing, distributing, and creating derivative works featuring those characters. ByteDance’s virtual smash-and-grab of Disney’s IP is willful, pervasive, and totally unacceptable,” Singer said.

He added, “We believe this is just the tip of the iceberg, which is shocking considering Seedance has only been available for a few days.”

It’s not just ByteDance’s Seedance 2.0 that has spooked Hollywood studios.

A growing wave of video-generation models suggests that Hollywood’s moat is crumbling, and its control of the media game is nearing its end.

“Authorities should use every legal tool at their disposal to stop this wholesale theft,” the Human Artistry Campaign – a coalition that includes dozens of creative groups such as SAG-AFTRA and the Directors Guild of America – said in a statement on Friday.

Seedance 2.0 model …

Hollywood is living on borrowed time. The next big AI disruption trade could be studios.

Tyler Durden
Mon, 02/16/2026 – 11:12

Coffee Tied To Lower Dementia Risk, Harvard-MIT Study Finds

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Coffee Tied To Lower Dementia Risk, Harvard-MIT Study Finds

New research published in JAMA reveals a strong reason to feel even better about being three to four espressos deep before the cash market opens in New York. 

Here’s the short version of the findings:

  • Caffeinated coffee was linked to lower dementia risk. Comparing the highest vs lowest consumption groups, the study reported a hazard ratio of 0.82 (95% CI, 0.76 to 0.89), which means higher caffeinated coffee intake was associated with lower risk.

  • People also reported less subjective cognitive decline. The higher-intake group had 7.8% prevalence vs 9.5% in the lower-intake group (prevalence ratio 0.85).

  • The “sweet spot” looked moderate. The most pronounced differences showed up around 2 to 3 cups per day of caffeinated coffee.

  • Decaf did not show a significant association with dementia risk.

The long-running study, led by researchers from Mass General Brigham, Harvard T.H. Chan School of Public Health, and the Broad Institute of MIT, tracked 131,821 U.S. adults for four decades and documented 11,033 dementia cases. One major finding was a very clear pattern: adults who drank about three cups of coffee per day, or one to two cups of tea, had a much lower risk of dementia and more favorable cognitive outcomes over their lifetimes. Decaf, however, did not show the same relationship.

Both male and female participants who drank more than three cups of caffeinated coffee per day had an 18% lower risk of dementia compared with those who reported little or no daily caffeinated coffee consumption.

When searching for possible dementia prevention tools, we thought something as prevalent as coffee may be a promising dietary intervention – and our unique access to high-quality data through studies that have been going on for more than 40 years allowed us to follow through on that idea,” said senior author Daniel Wang, associate scientist with the Channing Division of Network Medicine in the Mass General Brigham Department of Medicine and assistant professor at Harvard Medical School.

Wang noted, “While our results are encouraging, it’s important to remember that the effect size is small and there are lots of important ways to protect cognitive function as we age. Our study suggests that caffeinated coffee or tea consumption can be one piece of that puzzle.”

The cognitive upside of caffeinated coffee is clear.

Now take it up a notch: start with premium whole-bean coffee, then level it up significantly with a smart blend of four ingredients: C8 MCT Oil, Ashwagandha, Alpha GPC, and L-Theanine. The result is steadier focus and no scattered brain.

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What the four ingredients are (and why they’re infused with the bean):

  1. C8 MCT Oil: A type of medium chain fat (caprylic acid), often marketed for quick energy and ketosis support.

  2. Ashwagandha: An herb often marketed for stress support and calmer mood.

  3. Alpha GPC: choline compound (a building block for acetylcholine, a neurotransmitter tied to memory and attention).

  4. L-Theanine: An amino acid naturally found in tea. Often paired with caffeine because it may help you feel calm and focused, and reduce “coffee jitters.”

Thank you for your support.

Tyler Durden
Mon, 02/16/2026 – 10:55

Giddy EU Elites Gush Over Newsom & AOC’s Brave New World (Same As The Broken Old World Order)

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Giddy EU Elites Gush Over Newsom & AOC’s Brave New World (Same As The Broken Old World Order)

Authored by Jonathan Turley,

This week, California Gov. Gavin Newsom (D) joined the many Californians now seeking their fortune elsewhere. The difference is that Newsom is planning to come back to California, even as billionaires, investors, and companies flee his state for greener pastures.

Newsom and Democrats such as Rep. Alexandria Ocasio-Cortez (D-N.Y.) were selling a brave new world that looked a lot like the broken old world. It was an ironic moment. They were addressing countries at the Munich Security Conference that had previously destroyed their economies through socialist and far-left policies.

The rush of liberal Democratic officeholders to Europe was telling.

new poll shows that a record 58 percent of voters believe their party is “too liberal.”

But Newsom and Ocasio-Cortez found a welcoming audience in Europe.

The global elite gushed over Ocasio-Cortez and sat enraptured as she rattled off socialist platitudes.

That included New York Times correspondent Katrin Bennhold, who thrilled the audience by treating it as a given that Ocasio-Cortez will run for president.

Both Newsom and Ocasio-Cortez spoke of returning the U.S. to the good graces of the global elite.

Newsom assured the Europeans that Trump’s reign is temporary, and that the U.S. will soon enough dismantle the “wrecking ball” that the administration has taken to the EU.

Newsom offered his leadership and his state as the model, proclaiming that “California is a stable and reliable partner” for Europe.

The model includes high taxes, massive spending programs and greater bureaucratic regulations — precisely the policies that have driven the European economy into its current stagnation. In other words, Democrats were in Europe to offer precisely what Newsom outwardly condemned: “doubling down on stupid.”

When not fumbling with security questions about issues such as Taiwan, Ocasio-Cortez was demanding that wealth taxes be implemented in the U.S. “expeditiously.”

Word Salad is back…

…and she’s not so hot on geography either…

Such a tax on billionaires’ wealth, including unrealized gains, is currently being pushed in California. The predictable result is that billionaires and other wealthy citizens are rushing to leave the state and taking their investments and companies with them.

Ocasio-Cortez had the audience at hello.

Rather than having Vice President J.D. Vance shaming them for their attacks on free speech, the Europeans positively gushed over Democratic leaders pushing far-left agendas.

It did not matter that such policies devastated European economies in the 20th century.

In my book “Rage and the Republic,” I discuss the rise of support for socialism in both the U.S. and Europe. Many of those supporting it are young voters with no memory of the collapse of socialist economies in the 20th Century. In 1977, Labour Prime Minister James Callaghan pursued many of the same socialist policies, leading to what was called the “winter of discontent” as inflation hit 25 percent. With the collapse of the British pound, the United Kingdom had to take the demoralizing step of securing a loan from the International Monetary Fund, as if it were a developing country.

In France, François Mitterrand was also elected to pursue his “rupture with capitalism.” The French economy collapsed; Mitterrand quickly had to reverse himself and restore capitalist policies.

That history is rarely discussed or taught today. The “warmth of collectivism,” as New York Mayor Zohran Mamdani put it, is back in vogue. It does not matter that, in Argentina, President Javier Milei is achieving one of the most impressive economic turnarounds in history — dramatically curtailing runaway inflation, government deficits and poverty — by reinstating free-market policies and reducing government spending.

What is chilling about Europe is that the EU has strangled growth with its increasingly centralized controls and massive bureaucracy. My book describes the instability of the EU and its global governance model. Europe is facing populist movements and, like many Democrats, the response has been calls for further consolidation of power. This included the creation of a new, uniform European corporate law, known as the “28th Regime.”

With an economy crushed by a massive EU bureaucracy and regulations, the solution of many is all too familiar: borrow more money. French President Emmanuel Macron and others want to issue “Euro bonds” to spend their way into an economic recovery — another policy ideal shared with many on the American left.

This week was only the latest effort of the American left to strengthen an alliance with the EU.

Previously, American leaders such as Hillary Clinton pushed the EU to censor Americans online after free speech protections were restored by companies like Twitter. Likewise, the American left is enamored with the EU’s global bureaucracy and regulations.

Newsom and Ocasio-Cortez certainly found their element in Munich, and the EU certainly found the “reliable partners” it has longed for in creating “a new World Order with European Values.”

Jonathan Turley is the Shapiro Professor of Public Interest Law at George Washington University. He is the author of the New York Times bestselling “Rage and the Republic: The Unfinished Story of the American Revolution.” 

Tyler Durden
Mon, 02/16/2026 – 10:30

Ukraine’s Former Energy Minister Charged With Money Laundering As ‘Operation Midas’ Expands

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Ukraine’s Former Energy Minister Charged With Money Laundering As ‘Operation Midas’ Expands

Months after Ukraine was shaken by a sweeping corruption probe into state nuclear giant Energoatom, and subject of international embarrassment given it even touched Zelensky’s office, former Energy Minister Herman Halushchenko has now been formally charged – after authorities detained him while he was allegedly attempting to leave the country.

Halushchenko had been suspended by Zelensky in mid-November, when news of the scandal first hit global headlines. On Monday, Ukraine’s National Anti-Corruption Bureau (NABU) and the Specialized Anti-Corruption Prosecutor’s Office (SAPO) announced that Halushchenko faces formal charges of money laundering and participation in a criminal organization tied to what investigators call the Midas case or Operation Midas.

The former Minister of Energy, Herman Galushchenko, Creative Commons

“The former minister of energy (2021–2025) has been exposed for money laundering and participation in a criminal organization,” the joint statement said, adding that investigators have “expanded the circle of suspects.”

The investigation is focused on members of the alleged network which established an investment fund in Anguilla (the British Overseas Territory in the Eastern Caribbean) in February 2021. The vehicle was marketed as raising roughly €118 million in “investments” – with Halushchenko’s family listed among the contributors – after which millions flowed directly into accounts controlled by the family

For example, authorities claim part of the funds paid for the education of Halushchenko’s children at elite Swiss institutions, while other sums were deposited into his ex-wife’s accounts, also with a big portion of the money allegedly invested further, “earning extra income for the family’s personal use.”

Halushchenko was energy minister from 2021 to 2025 before being appointed justice minister in July 2025. In November, NABU agents conducted raided offices and properties connected to him as the investigation intensified.

Western mainstream media had almost immediately launched into damage control in the wake of the massive energy scandal, with one op-ed in Bloomberg having tried its best to say it’s not at all Ukraine’s fault, but is actually somehow… the Kremlin behind it(!). Here’s how it began:

There are at least two legitimate responses to allegations that a group of highly placed Ukrainian officials have skimmed $100 million from contracts to repair and protect their nation’s critical energy infrastructure, even as Russian attacks plunge the nation into darkness and cold. One is to despair, the other to celebrate. The second, strange as it may sound, is more logical.

This episode goes to the heart of why Ukrainians are fighting at all. The war began in 2014, after then President Viktor Yanukovych was toppled by mass protests against the epic scale of his corruption and the captivity to Moscow this created. Graft was the glue with which the Kremlin had held…

So even with high officials in Zelensky’s government are caught red-handed by a Ukrainian internal investigation, the ultimate fault lies in Moscow, according to some MSM accounts.

It must be remembered that earlier last year, Zelensky himself found himself at the center of EU pushback and controversy when he attempted to eliminate NABU’s independence, sparking outrage in Brussels some sectors of the Ukrainian populace.

Ukrainians, currently enduring a harsh winter in subzero temperatures and with rolling power outages due to the war, are outraged. But Americans might also need to wake up and take note of how billions in US funds are going into the coffers of a deeply corrupt Ukrainian system.

Tyler Durden
Mon, 02/16/2026 – 09:25

Detroit Police Chief Targets Officers Allegedly Coordinating With ICE

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Detroit Police Chief Targets Officers Allegedly Coordinating With ICE

Authored by Luis Cornelio via Headline USA,

Detroit Police Chief Todd Bettison said Thursday that officers purportedly collaborating with federal immigration agents will be held “accountable,” as the city defends its so-called “welcoming” status.

Bettison made the comments during a hearing with the Detroit Board of Police Commissioners regarding two incidents, one on Dec. 16 and another on Feb. 9, according to the Detroit Free Press.

“Of our officers, 98-99 percent do it the right way each and every day,” Bettison claimed.

“But I do have one or two percent that decide to violate our rules, our policies and our procedures, and to those officers, I will hold them accountable.”

A “welcoming city” refers to jurisdictions that do not require officers to investigate a person’s immigration status during routine investigations.

By contrast, sanctuary cities refuse to honor ICE detainers and actively decline to cooperate with federal immigration authorities.

In the first incident, a Detroit sergeant reportedly called Border Patrol after an officer requested a translation during a traffic stop of a non-English-speaking individual.

Bettison said that Border Patrol determined the person was not a U.S. citizen and detained the individual as a result.

In the second incident, a Detroit officer allegedly contacted Border Patrol while investigating an individual on a felony warrant.

“Border Patrol did respond, and Border Patrol ultimately took this individual,” Bettison said, citing body-worn camera footage reviewed by the DPD.

The commission is set to decide whether to suspend the officers involved ahead of a Feb. 19 hearing.

Tyler Durden
Mon, 02/16/2026 – 09:00

US NatGas Futs Sink To Four-Month Low As Mid-Atlantic Exits Brutal Winter

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US NatGas Futs Sink To Four-Month Low As Mid-Atlantic Exits Brutal Winter

US natural gas futures tumbled to a four-month low early Monday as weather models indicate the Lower 48 is exiting the peak of the Northern Hemisphere winter and entering a much-needed warmup. For the Mid-Atlantic and Northeast, which experienced some of the coldest weather in decades, the next few weeks are expected to feel more like spring.

March contracts fell 7.5% to about $3 per mmBtu, the lowest level since October 17 and a roughly four-month low.

Weather forecasts for the Lower 48 show above-normal temperatures through the end of the month, particularly in the central and southern regions.

NatGas prices have been extremely volatile this winter. Multiple cold blasts sparked freeze-offs and production disruptions across gas infrastructure that sent spot NatGas prices sharply higher. At the same time, tightening power markets, especially across the Mid-Atlantic area, sent power prices soaring.

Readers may recall we identified peak Northern Hemisphere winter in early February, as 30-year average temperature trends point to warmer conditions across the Lower 48.

Now the Trump administration can point to last month’s cold snap as a real-world stress test: fossil fuel generation helped keep much of the eastern U.S. grid from collapsing under peak demand. Read the note, titled “Sleep Tight, America. We Got This”: NatGas And Coal Power Plants Prevented Grid Collapse During Historic Winter Blast.

Tyler Durden
Mon, 02/16/2026 – 08:30

Macron’s AI Clown Show: Europe’s Digital Dilemma

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Macron’s AI Clown Show: Europe’s Digital Dilemma

Submitted by Thomas Kolbe

The European Union has lost its place in the global race for artificial intelligence. In a single tweet on platform X, France’s President Emmanuel Macron inadvertently outlined the convoluted situation while simultaneously revealing his personal emotional fragility.

The leading representatives of the European Union like to present themselves as emotionless technocrats. Maintaining the greatest possible distance from citizens, they execute their agenda of societal transformation toward what they understand as a net-zero transformation economy. 

This ostentatious distance from the citizenry acts as a simulacrum of power, which, in politicians like Emmanuel Macron, often veers into the caricatural.

Macron’s striking presence in foreign affairs—whether regarding the Ukraine war or recurring provocations toward the United States—correlates with his aggressive censorship policy toward his own population. A president without a people, steering his minority government through a budgetary crisis that brings France ever closer to the fiscal abyss.

In Macron’s persona, the European misstep is condensed: economically failed, deeply unpopular among his own people, geopolitically essentially irrelevant—and yet imbued with lofty, messianic plans. 

This performative play of power, coupled with hardly disguised impotence and incompetence, inevitably produces an effect that can be described as clownish. It is the expression of a political style that can no longer reconcile claim with reality—and thus delivers less leadership than a tragicomic performance.

A Touch of Emotion

Politicians like the French president are indeed aware of the growing public anger over their policies and, behind the technocratic façade, very much experience emotional states—Macron revealed this for a brief moment on February 7 on the platform “X,” which he otherwise fights.

This moment of exposure was triggered by a reaction to Israeli AI investor Dr. Eli David. The entrepreneur had ridiculed the French government’s plan to initiate an AI revolution with a mere initial investment of €30 million, publicly calling the president a “clown.” 

Macron responded in classic social media fashion: fast, unconsidered, emotional. And this was precisely the real revelation. His message not only displayed personal fragility but simultaneously exposed Europe’s fatal economic strategy in the field of artificial intelligence.

Macron directly addressed David’s criticism and slid into a rhetorical trap, writing: Yes, exactly this “clown,” meaning himself, would trigger an investment boom with €30 million, eventually mobilizing over €100 billion in private funds. Macron plans a French Silicon Valley south of Paris and intends to catapult his country to the Olympus of artificial intelligence—with €30 million of state money, initially benefiting those who provide the technological framework for the upcoming rollout of digital IDs.

In this sentence, Europe’s dilemma crystallized: self-assurance and denial, the familiar pathos of EU Europeans combined with an astonishing detachment from reality—and a political style that reveals more about Europe’s position in the global AI race than any sober analysis could.

Those familiar with the codes, memes, and recurring keywords of digital platforms understand the significance of this label. When “clown world” or “clown politics” is mentioned, it refers precisely to the comedy we witness daily: the routine evasion of European top politicians from the consequences of their centrally controlled policies—be it economic and industrial policy, migration, or the grotesquely perceived energy policy.

The clown meme condenses the cynically self-ironic perception of the viewer of this comedy—a viewer aware that they are not only the target of these policies but will ultimately bear their consequences.

Clown politics takes many forms. These include the countless crisis or innovation summits in which politicians stage themselves retroactively as initiators of the new, attempting to position themselves at the forefront of developments they have ignored or actively obstructed for decades. 

These summits are a particularly pernicious form of masking incompetence: political self-validation rituals simulating activity while merely covering up structural stagnation.

Another Lost Year

It has been almost exactly one year since Emmanuel Macron, at the AI conference Choose France, presented his megalomaniac-seeming investment initiative. Over €100 billion in private investment pledges were said to have been mobilized, with asset manager Brookfield promising more than €20 billion, and the UAE sovereign wealth fund with €50 billion, to participate in Macron’s Silicon Valley. To this day—nothing has happened.

As elsewhere in the EU, a Kafkaesque thicket of regulation seriously blocks private-sector engagement. At least France could score points thanks to nuclear power: stable, cheap, ideal for energy-hungry data centers. And Germany? Its locational advantage has been squandered in green delusions. Yet France remains trapped in paralyzing stagnation—announcements fade, visions fizzle, and the digital Silicon Valley appears like an illusion from the bureaucratic dream factory.

The contrast with the United States could hardly be starker. There, around $400 billion in private investments in artificial intelligence and data centers were mobilized last year alone. The infrastructure of the data economy of the future is being built in the United States, where President Donald Trump deregulates markets, cuts taxes, and promotes the comeback of nuclear energy.

Notably, major US data center operators—from Meta to Google—have already begun investing in their own energy sources. This not only stabilizes their business models but also the American energy grid. It is an impressive counterpoint from the private sector to Brussels’ statist economic model, where technological ignorance seems almost cultivated.

Europe’s idea of state seed funding and centrally planned market regulation is the real problem. 

European society has drifted too far from the principles of market economy, personal responsibility, and a general culture of initiative in business. Bureaucracy, green socialism, and the decades-long cultural struggle against bourgeois values and roots now bear their rotten fruits. The spirit of EU bureaucracy has warped the perception of economic reality for citizens, entrepreneurs, and the political class alike.

New technologies and innovations are no longer understood as opportunities but as reasons to defensively secure the status quo. This psychopolitical consequence of European bureaucratization weighs like lead on the prosperity and productivity of European economies—with consequences that even French presidents in combative cynic mode on “X” cannot hide.

* * * 

About the author: Thomas Kolbe, a German graduate economist, has worked for over 25 years as a journalist and media producer for clients from various industries and business associations. As a publicist, he focuses on economic processes and observes geopolitical events from the perspective of the capital markets. His publications follow a philosophy that focuses on the individual and their right to self-determination.

Tyler Durden
Mon, 02/16/2026 – 08:10

Amid Saber-Rattling, Iran Touts Economic Benefits To West If Nuclear Deal Reached

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Amid Saber-Rattling, Iran Touts Economic Benefits To West If Nuclear Deal Reached

Days ahead of another round of talks with US negotiators — and on the heels of more saber-rattling by the Trump administration — Iran is touting the potential mutual economic benefits of a deal that would terminate the West’s long-running sanctions regime against the second-largest and second-most-populous country in the Middle East.  

“For the sake of an agreement’s durability, it is essential that the U.S. also benefits in areas with high and quick economic returns,” said Iranian Deputy Director for Economic Diplomacy Hamid Ghanbari on Sunday, according to Iran’s FARS news agency. He said that, during negotiations, there had been discussion of what FARS called “shared interests in the fields of oil, gas, mining and even aircraft purchases.” 

An IranAir Airbus A330 lands in Amsterdam (Nicolas Economou/ Nurphoto via Getty and Forbes

Sanctions have long thwarted Iran’s need to update the country’s passenger jet fleets. After the 2015 nuclear deal was reached and sanctions eased, Iran raced to put in orders for new aircraft from Western suppliers. When President Trump withdrew from the nuclear deal — despite Iran’s full compliance with it — Boeing instantly lost $20 billion worth of business.  

Oil prices were flat in early-Monday global trading. “With both sides expected to hold firm on their core ​red ​lines, expectations are low that a deal can be ​reached and this is likely to be the ‌calm before the storm,” IG analyst Tony Sycamore told Yahoo. 

Oman is set to mediate talks in Geneva this week. Foreign Minister Abbas Araghchi is leading the Iranian delegation, while the US delegation will be headed by Steve Witkoff and Trump son-in-law Jared Kushner. Ahead of the talks, Israeli Prime Minister Benjamin Netanyahu made his sixth US meeting with Trump in just the last year. Netanyahu continues to push for terms that guarantee Iranian refusals and thus set the stage for more war.

Those poison-pill demands include Iran ceasing all uranium enrichment and — preposterously — dismantling the conventional, ballistic missile program that proved so effective in responding to Israel’s initiation of war last June. Trump reportedly told Netanyahu in December that he’d back Israeli strikes on Iran’s ballistic missiles program if a new deal isn’t reached.  

President Trump holds Prime Minister Netanyahu’s chair during a 2025 visit to the White House 

In May 2018, Trump withdrew the United States from the nuclear deal that had been negotiated between Iran and various Western governments and signed in 2015. Under that deal — the Joint Comprehensive Plan of Action (JCPOA) — Iran agreed to a wide array of nuclear safeguards. They included eliminating its medium-enriched uranium, reducing its low-enriched uranium inventory by 98%, capping future enrichment at 3.67%, slashing its number of centrifuges, submitting to enhanced external monitoring, and rendering its heavy-water reactor unusable by pouring concrete in it. 

At the time of Trump’s withdrawal, Iran was in full compliance, according to the International Atomic Energy Agency. In response to the re-imposition of US sanctions, Iran began straying from its own commitments under the deal, seemingly pushing the only lever it had to bring the deal back and get out from under sanctions that have sapped Iran’s economy and inflicted a harsh toll on innocent Iranian citizens

On Friday, Reuters reported that the Pentagon is preparing for a “sustained, weeks-long military campaign” against Iran if President Trump gives the green light. That news came as a second American aircraft carrier was making its way to the region. The USS Gerald Ford — the world’s largest — will join the USS Abraham Lincoln, which is already on station. Before receiving its new orders, the Ford had been operating in the Caribbean after being abruptly redeployed from the Mediterranean — part of an earlier show of force tied to posturing against Venezuela.    

Tyler Durden
Mon, 02/16/2026 – 07:45