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Senate Panel Rejects Immunity For Ex-Fauci Aide

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Senate Panel Rejects Immunity For Ex-Fauci Aide

The Senate Committee on Homeland Security and Governmental Affairs rejected on Sept. 23 a bid to seek immunity for a longtime special assistant to Dr. Anthony Fauci.

The vote on a resolution authorizing an application for a court order compelling testimony under immunity from the assistant, who was not identified, fell short of the required two-thirds of members.

All eight Republicans, but no Democrats, voted in favor. Two Democrats would have had to cross the aisle for the resolution to be approved.

Fauci, 85, headed the National Institute of Allergy and Infectious Diseases from 1984 to 2022.

He refused to answer questions before the panel earlier in the year, citing the Fifth Amendment, prompting the committee to refer him for contempt of Congress to federal prosecutors.

The Department of Justice has not charged Fauci with any crimes.

As Zachary Stieber reports for The Epoch Times, the female assistant worked for Fauci from 2007 to 2022, according to Sen. Rand Paul (R-Ky.), the committee’s chairman.

He said her position “placed her in the flow of communications directly relevant to our investigation” into Fauci.

She recently appeared behind closed doors before the committee and invoked the Fifth Amendment, or her right against self-incrimination.

The questions senators want answered primarily deal with the destruction of government records, Paul said. A doctor who was a longtime adviser to Fauci recently pleaded guilty to conspiring to delete government records. Fauci has directed subordinates to delete emails.

Sen. Maggie Hassan (D-N.H.), who voted against the resolution, said before the vote that senators should pursue a “good-faith bipartisan approach to obtain this information” rather than rush to approve the resolution.

Republicans expressed frustration and anger that only Hassan among Democratic panel members was present during the meeting.

“I come from the private sector. To not show up to a meeting, to say ‘I refuse to do my job,’ is something that only happens in politics,” Sen. Bernie Moreno (R-Ohio) said.

“That is outrageous.”

After the vote, Paul said:

“A majority of the committee voted to seek the truth. All Republicans voted to seek the truth. We voted to protect this witness and hear her story. All we needed was two Democrats who wanted to hear her story, but not a single one of them is interested in the investigation or the truth about destruction of federal records.”

Hassan said that was a mischaracterization of the Democrats’ position.

Paul said he would be sending a letter to the Department of Justice requesting pursuit of the matter, and said his committee’s investigation into government record destruction will continue.

Tyler Durden
Wed, 09/23/2026 – 17:20

Trump Meets Venezuela’s Rodriguez In New York

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Trump Meets Venezuela’s Rodriguez In New York

Authored by Kimberly Hayek via The Epoch Times,

President Donald Trump and Venezuela’s interim President Delcy Rodriguez met Tuesday night on the sidelines of a United Nations reception, their first face-to-face talks since American forces seized then-President Nicolas Maduro in January.

Venezuela’s Interim President Delcy Rodriguez and U.S. President Donald Trump (R) meet on the sidelines of the U.N. General Assembly in New York on Sept. 22, 2026. Venezuela Presidential Palace Handout via Reuters

The pull-aside was booked for 7:40 p.m. at a gathering Trump is hosting during the U.N. General Assembly. No joint appearance was planned nor a detailed agenda released.

Participants in the pull-aside meeting with Rodriguez included State Secretary Marco Rubio, Treasury Secretary Scott Bessent, White House Chief of Staff Susie Wiles, and White House Chief of Staff Stephen Miller.

“We held a historic meeting with the President of the United States, Donald Trump, during which we discussed strengthening the bilateral relationship between our countries and advancing a cooperation agenda in strategic areas such as energy, mining, security, and other matters of mutual interest,” Rodriguez said in a statement on Telegram.

“We expressed our gratitude to President Trump and his administration for the steadfast support provided during the emergency caused by the earthquakes of June 24, as well as for their backing of our country’s reintegration into multilateral forums,” she wrote, according to a translation. “Venezuela and the United States share a historic relationship that, in this new phase, we are called upon to steer through dialogue. We will continue to pursue a diplomacy that serves the national interest, aimed at achieving concrete results and collective benefits for the Venezuelan people.”

Rodriguez landed Monday for what is her first trip to the United States since taking office. She is scheduled to address the General Assembly on Wednesday afternoon.

U.S. Ambassador to the United Nations Mike Waltz told reporters about the upcoming meeting on a call.

“The president will host a U.N. General Assembly leaders’ reception. There, he’ll participate in a pull-aside with the acting president Rodriguez of Venezuela,” Waltz said. He did not say what they would discuss.

Trump spoke to the General Assembly on Tuesday morning, hours before the reception, where he called Maduro an “outlaw dictator,” adding that hundreds of political prisoners had been freed since the capture. Trump pointed to the January raid as proof Washington would use its “unmatched military might” to protect its interests in the Western Hemisphere.

“To the victor belong the spoils,” he said, calling an oil deal his administration signed with Caracas last month “perhaps the biggest deal ever made.”

He has said he wants $100 billion in investment to flow into Venezuela’s oil industry.

On Sept. 16, Trump removed Venezuela from the U.S. list of countries that have failed to combat drug trafficking. The country had been on that list since 2005.

“Given the positive steps taken under interim President Delcy Rodríguez, I have determined Venezuela should no longer be designated as having failed demonstrably to fulfill its drug control commitments,” the presidential determination said. “I expect to see continued, measurable progress from the interim government in dismantling narcoterrorist groups and stopping drug trafficking through Venezuela to the United States.”

Last month the two governments signed an energy agreement covering 65 billion barrels of reserves. Trump called it in a Truth Social post “the biggest oil deal in world history.”

Rodriguez said the pact is meant to last 25 years and to develop 17 strategic oil fields with a production target of more than 1.5 million barrels a day.

“This deal is a huge win for both the American and Venezuelan people,” Secretary of State Marco Rubio wrote on X.

Rodriguez, 56, was born in Caracas and trained as a lawyer. Maduro named her vice president in 2018. U.S. forces captured Maduro and his wife, Cilia Flores, on Jan. 3 and flew them to the United States on narcoterrorism and drug charges. Venezuela’s high court then designated Rodriguez interim president. Maduro has pleaded not guilty.

Reuters contributed to this report

Tyler Durden
Wed, 09/23/2026 – 17:00

Iran Vows To ‘Paralyze’ Regional Airports Which Prevent Its Flights From Landing

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Iran Vows To ‘Paralyze’ Regional Airports Which Prevent Its Flights From Landing

Facing crippling US sanctions against its aviation sector as part of the Trump/Bessent Economic D-Day initiative, Iran is warning that if regional countries join the sanctions action, their own airports could be targeted.

Iran’s Supreme National Security Council has on Wednesday put neighboring states who are allies of Washington on notice. The statement warned their airports will be “paralyzed” if they cooperate with US attempts to prevent the landing of Iranian airliners. 

Source: Government of Kuwait

Treasury Secretary Scott Bessent declared on Monday that by Wednesday. Sept. 23, “all the Iranian airlines will be shut down around the world.“

He warned that any airports or companies providing fuel, landing, and ticketing for sanctioned Iranian entities risk dollar-system exclusion.

Already Turkey has taken the dramatic action of canceling all flights in the foreseeable future for various Iranian carriers.

According to more of the Iranian Supreme National Security Council statement, delivered via its chief, Mohsen Rezaei, “We ask all the countries of the region not to join America’s adventure. If they do not allow Iranian aircraft to travel, their own airports will not be able to have flights either.”

“You are our friends, but you should not join America’s ranks. You should prevent the war from spreading,” he added. Throughout the prior seven months of war with the US, Iran has shown a willingness to target major civilian hubs, particularly in neighboring Kuwait.

Iran is defiantly planning to press forward with its commercial airline operations. While some countries are complying with the US order, China is clearly not…

As for the heavily sanctioned Iranian aviation industry, in recent years the Islamic Republic has suffered some significant aerial disasters, which included the May 19, 2024 death of President Ebrahim Raisi. His military helicopter went down in a rugged, mountainous area of northwestern Iran.

Some speculate that lack of airline parts and aging aircraft, due to the long-standing US targeting of the industry, has only served to increase the chances of aviation disasters.

Tyler Durden
Wed, 09/23/2026 – 16:40

Only 7% Of Voters Rank Data Centers As A Top Political Issue; New Survey Finds

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Only 7% Of Voters Rank Data Centers As A Top Political Issue; New Survey Finds

Authored by Bryan Hyde via American Greatness,

A new poll from the Rainey Center for Public Policy shows just 7 percent of registered voters view data centers as a top-three national political issue, confirming that fewer than 10 percent prioritize them at the federal level.

The Washington Examiner reports that the survey of 1,004 registered voters found that found that national concern over data centers remains low with artificial intelligence itself drawing just 12 percent support as a top issue.

The poll was conducted between Sept. 10 and 14, after former Anthropic researcher Jacob Coxon quit his role and warned of the existential threat of AI, sparking a nationwide conversation about AI regulation.

Fifty-seven percent of survey respondents listed “grocery prices, gas and household utilities” as the most salient issue, followed by 30 percent listing jobs and the economy, and 20 percent listing affordable housing.

The poll showed AI as the 13th-most salient issue, directly following energy costs and transgender issues in schools and sports, with data centers being built in communities coming in as the 15th-most salient issue, behind cybersecurity.

According to PBS Newshour , while voters do not rank data centers high on national political agendas, opposition spikes dramatically when facilities are planned nearby.

Fifrt-eight percent of voters say new tech data centers have a mostly negative effect on the country and 65 percent of voters oppose building these facilities in their own communities.

Meanwhile 25 percent of voters say they support local data center construction.

The polling results follow a week of federal and state lawmakers debating how and whether to proceed with additional AI regulations in the face of calls for guardrails on their own industry from frontier AI lab leaders , according to the Washington Examiner.

When questioned on what specifically should be the top three priorities for lawmakers on data centers and AI, 48 percent of survey respondents responded “holding AI companies liable for harms,” while 38 percent answered that “data centers pay their own electricity.”

National leaders remain largely divided on the issue, with President Donald Trump calling on people to ignore the calls for new guardrails because of the United States’ AI race with China.

Tyler Durden
Wed, 09/23/2026 – 15:40

‘Mr.Gold’ Warns Higher Rates Will Blow Everything Up

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‘Mr.Gold’ Warns Higher Rates Will Blow Everything Up

Via Greg Hunter’s USAWatchdog.com,

Financial writer and precious metals expert Bill Holter (aka Mr. Gold) has warned for years about what happens in the end when a debt bubble pops. 

Mr. Gold explains, “This bubble is like any other bubble in mankind’s history…”

”  In the 1920s, credit was extremely easy.  When credit tightened, it was the wealth effect in reverse.  We saw this again in the early 1970s.  We saw this again in the 1987 crash.  Interest rates went from 7% to over 10% . . . and that bubble popped.  We had the emerging market debt problem back in the early 1990s, Long Term Capital in 1998, the Dot Com bubble in 2000, the 2007-2008 Great Financial Crisis, and all you have to do is look at a chart of bond yields and you’ll see that each time yields spiked, those bubbles popped.  Right now, interest rates are spiking, and this is the biggest bubble. 

This is the everything bubble.  Everything is in a bubble.  The only things that are not in a bubble are gold and silver because they are real money. 

I think gold and silver are reflecting the risk of the debt structure coming down. 

From a global standpoint, countries are moving away from the dollar.   They don’t want to be trapped in the dollar system.  The dollar is the world reserve currency that is issued by an insolvent bankrupt entity. 

Higher rates, that’s what is going to blow everything up, higher rates.”

Mr. Gold says the rates can fall back down in a hurry if the economy starts to skid. 

Mr. Gold also says the so-called “reset” you have been hearing about for years is real.  It cannot be stopped, but it is an unfolding process right up until the very end.  Holter says:

“The reset is not a pushed button until the very, very end.  That very, very end is going to be a weekend where you go to bed Friday and things look normal, and on Monday morning, the whole world will have changed. . .. Rising interest rated have happened hundreds of times in history.  That is not the reset. 

The reset is when those rising rates affect the existing debt in the system, and that debt fails and collapses. 

Of course, you can add in derivatives, and the reset is really a wipeout of wealth.  It’s the wipeout of the population’s wealth.  Along with that goes the ‘Great Taking.’  They started putting these laws on the books in 2014 knowing there was going to be a huge rug pull at some point.  They made it legal for brokers, banks and insurance companies to take client assets . . . to save the corporations. 

What does that do to the population?  The population becomes penniless.  If you are not protecting yourself, you are going to get swept up in the wave of the Great Reset.”

Holter says the Deep State wants total control, which is why there is a big push to go all digital. 

Holter says buying gold and silver is not about making money but protecting purchasing power and a defense against the Great Reset. 

Holter says, “If you lose 50%, you have to make 100% to get back to break even.  This is not going to be a time that you lose 50% and then things will start going back up again…”

”  Because of the debt all over the world, when the debt breaks, the financial system is going to break. 

If you have counterparties between you and your capitol, you are going to lose your capitol. 

People ask, how much do I put into gold and silver, and I say put in what you don’t want to lose. 

Gold and silver are the only money on the planet that cannot bankrupt in a world that is bankrupting. 

If you had this (gold) mindset since 2000, you are way ahead of the pack compared to the S&P or the DOW.  There was zero default risk. 

When you bought gold, you got the biggest return and took the lowest risk.”

There is much more in the 44-minute interview.

Join Greg Hunter of USAWatchdog as he goes one-on-one with financial writer and precious metals expert Bill Holter/Mr. Gold as he warns of the Great Reset and the Great Taking that will come with it for 9.22.26.

Tyler Durden
Wed, 09/23/2026 – 15:05

“This Nor’easter Is Going To Be An Ordeal”

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“This Nor’easter Is Going To Be An Ordeal”

The US East Coast has avoided any tropical development so far this year, but a developing nor’easter in the Atlantic just off the North Carolina and Virginia coast could still deliver hurricane-force winds and heavy rain, with the greatest impacts expected in the Northeast later this week and into the weekend. 

“Oh, this Nor’easter is going to be an ordeal. This storm will be a monster and will be lashing the coast for several days. Thank your lucky stars this isn’t January because it would be the most epic blizzard,” meteorologist Ryan Maue wrote on X, adding, “Maybe it’s a harbinger of ‘bomb cyclones’ to come this winter?”

The nor’easter formed earlier today off North Carolina and Virginia and is forecast to strengthen as it moves north along the coast, potentially bringing severe weather to coastal areas of the Mid-Atlantic and Northeast.

“This will be a long-duration storm for many areas along the Mid-Atlantic and New England coasts, with impacts beginning along the central Atlantic coast at midweek, spreading to New England on Friday and lasting through the weekend in some areas,” AccuWeather wrote in a report. 

On Saturday, the worst of the storm is expected across southeastern New England, particularly Massachusetts. Local outlet NBC Boston warns that the Boston metro could expect  5 to 8 inches of rain between Friday and Sunday, while Cape Cod could see conditions on par with a tropical storm. 

“If the low shifts close to Boston, this becomes a massive event with 60 to 70 mph wind gusts, heavy rainfall, major storm surge and significant disruptions to Boston Harbor and the Massachusetts coastline,” Fox Weather wrote in a separate report. 

“The nor’easter could take on some characteristics of a tropical storm,” AccuWeather warned. 

Tyler Durden
Wed, 09/23/2026 – 14:45

China’s Quad-G Plan For Global Hegemony Involves The UN And AI

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China’s Quad-G Plan For Global Hegemony Involves The UN And AI

Authored by Anders Corr via The Epoch Times,

The regime in China denies that it has plans for “hegemony or expansion,” but its history – from the peasant land seizures of the 1920s to claims on the entire South China Sea today – is replete with land grabs and territorial expansion.

Starting in 2021 with its first of four global initiatives, the Chinese Communist Party (CCP) has used ideas for such initiatives and Beijing-led international organizations as engines to extend its expansion toward its long-held goal of global hegemony.

The CCP’s four global initiatives are ostensibly related to development, security, civilization, and governance. They are meant to seem palatable to the international community while integrating the United Nations and other forms of global governance into the CCP’s own system, with itself in the lead.

The initiatives are currently expanding and strengthening. On Sept. 12, China expanded the digital element of its Global Development Initiative (GDI) by inviting additional countries to join its World Artificial Intelligence Cooperation Organization (WAICO). The organization was founded in July and is headquartered in Shanghai.

CCP leader Xi Jinping gave the keynote speech at the event. He called for “true multilateralism,” which analysts interpret as a justification for a parallel global order with Beijing in the lead.

WAICO already has approximately 30 member countries, including Russia and Iran. It serves as a key economic and intelligence initiative led by Beijing to expand the CCP’s global influence by promoting China’s AI software and cloud infrastructure.

The more countries use China’s AI assets, the more Beijing’s authoritarian approach to AI is normalized, and the more opportunities for global espionage and influence open up for China’s military and intelligence agencies.

More generally, the GDI uses a wedge strategy to increase the CCP’s influence in countries by aligning development aid with the U.N. Sustainable Development Goals (SDGs). The resulting influence can then be expanded through larger Belt and Road Initiative projects such as ports, trains, roads, pipelines, and digital infrastructure.

This broader penetration turns countries toward joining the BRICS group, originally Brazil, Russia, India, China, and South Africa, and now including Iran, among others. The group is economically dominated by Beijing, which expects BRICS countries to follow the CCP’s lead on relatively anodyne statements such as Middle East peace, as well as on more substantial international projects such as AI development and efforts to shift world trade away from the U.S. dollar. Xi has personally invited BRICS countries to join WAICO.

The Global Security Initiative (GSI) overlays China’s preexisting military partnerships, such as the Shanghai Cooperation Organization (SCO), with the vision of a “common” security led by the CCP. The Beijing Xiangshan Security Forum, a key vehicle for extending the GSI to influential international military stakeholders, took place from Sept. 15 to Sept. 17. One subject during the forum was reportedly “the impact of AI on future warfare.”

The threat posed by the GSI and its networking with military and economic partners is real and current. Iran supports the GSI and is a member of the SCO. On Sept. 12, news broke that Chinese entities, most likely with the approval of the CCP, provided Iran with satellite images of U.S. forces in Jordan. Those images likely assisted Iran’s missile attack that killed three U.S. troops in July.

China has also provided Iran with dual-use components and fuel precursors for its missile and armed drone technologies used against Israel, Saudi Arabia, and Ukraine. Other than U.S. sanctions against a few Chinese companies, there were few repercussions imposed on the regime in China for providing Iran with dual-use items and satellite intelligence during a war. This signals to Beijing that it can provide the same to other SCO and BRICS countries in the future simply by changing the names and addresses of the Chinese entities involved.

Afghanistan, which hosts al-Qaeda terrorists, is an observer nation in the SCO and could also receive Chinese intelligence or equipment for use against the United States, Pakistan, or India. Beijing has long had a positive relationship with the Taliban in Afghanistan, which has suppressed non-Pashtun ethnicities in the country.

This accords with Beijing’s Global Civilization Initiative (GCI), which claims to create a more pluralistic world in part through supporting the sovereignty of dictators even as they stifle free markets, speech, and diversity within their own countries.

When Xi announced the GCI in 2023, he hypocritically said: “We advocate the common values of humanity. Peace, development, equity, justice, democracy and freedom are the common aspirations of all peoples. Countries need to keep an open mind in appreciating the perceptions of values by different civilizations, and refrain from imposing their own values or models on others and from stoking ideological confrontation.”

The hypocrisy of this position is evident because then and now, Xi’s regime militarily threatens democratic Taiwan; steals maritime territory from the Philippines, Vietnam, and other South China Sea claimants; takes Himalayan territory from India by force; and destroys the freedoms of religious minorities like the Uyghurs, Christians, and Falun Gong within China.

Now, with the CCP’s four global initiatives, this violent illiberality threatens to scale globally. Xi unveiled his Global Governance Initiative (GGI) last September at an SCO meeting in Tianjin. It promotes international law with the CCP in the lead and a coordinating function for the three prior initiatives.

According to Chinese state media, “Viewed as a unified framework, the four initiatives form a ‘four-in-one’ interactive structure: development as the foundation, security as the guarantee, civilization as the bond, and governance as the coordinating mechanism – all serving the overarching objective of building a community with a shared future for humanity.”

The CCP’s “community with a shared future for humanity” sounds acceptable on first blush but can be directly compared to Imperial Japan’s “Greater East Asia Co-Prosperity Sphere” in that both used anti-colonial rhetoric and regional economic integration to try and replace “Western hegemony” with an illiberal hegemony of its own making, led by an authoritarian and territorially aggressive power.

What could be called the CCP’s Quad-G Plan for global hegemony is dangerous to free markets, human rights, and democracy. The CCP is a totalitarian political party attempting to use the large economy of China, its diplomats, an international AI norms-setting body, and an already-existing international institutional structure at the United Nations and elsewhere as the power and tracks for moving an established U.S.-led international system with true sovereignty for members toward a global and illiberal hegemony with Beijing at the center.

The CCP’s Quad-G approach raises questions about whether U.S. national security and the safety of democracies everywhere necessitate significantly reducing the CCP’s influence at the United Nations and other international organizations, as well as expanding sanctions from targeting a few Chinese entities to targeting China as a whole.

Options at the U.N. include canceling the visas of China’s U.N. diplomats, as was done to Iranian diplomats in 2014 and 2020, to working to return China’s seat at the forum to democratic Taiwan. Though Taiwan does not currently propose this, other more powerful countries and groupings, including the United States, the European Union, and the G7 countries, should consider encouraging this idea to more effectively counter the CCP.

The more democratic countries legitimize the CCP by engaging with it diplomatically, the more latitude it has to influence other countries to depend on its financing, join CCP-led international partnerships, and fall in line with Beijing’s proposals to international organizations. This acclimates them and others to further accept the CCP’s leadership and its preferred authoritarian forms of global governance, with Beijing at the center.

We publish a variety of perspectives. Nothing written here is to be construed as representing the views of ZeroHedge.

Tyler Durden
Wed, 09/23/2026 – 14:25

Kalshi’s $5,499 Question: Wash Trading, Or A Subsidized Volume Machine?

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Kalshi’s $5,499 Question: Wash Trading, Or A Subsidized Volume Machine?

Kalshi’s Ethereum perpetual futures contract has a favorite trade size, and it’s $5,499.

A CoinDesk analysis published Monday pulled 3,450 trades in the contract, a futures product with no expiry that tracks the spot price of ether, from 23 one-hour windows between September 17 and 20. Of those, 1,406 landed within $2 of $5,499. That’s $7.7 million of the $13.5 million sampled, or 57% of the dollar volume. Bitcoin perpetuals showed the same thing with different numbers: trades near $2,500 and $5,000 made up 54% of the $8.5 million sampled. Going back to June 19, CoinDesk found a recurring size on 43 of 46 sampled days, with the magic number migrating from $4,999 to $9,999 to $3,999, $4,499 and $5,499.

The fight started when Beni, a pseudonymous quant and co-founder of Stealth Neolab, posted that Kalshi’s ether perp was printing $539 million of 24-hour volume against $3.1 million of open interest, a ratio of 174 to one, and called the repeating $5,500 prints “undeniable proof” of wash trading. He also waved around an Artemis chart of prediction-market share, which is a different product from the perps, a mistake Kalshi’s crypto chief was happy to point out.

Kalshi’s rebuttal the next day was interesting. The exchange says the fixed-size prints come from one market maker resting orders of a set size and getting picked off by “many takers.” Its own numbers show the takers winning; in one hypothetical it walks through, the aggressors clear about $98,000. Self-trades are blocked at the matching engine, it runs surveillance for pre-arranged trades, and it has “seen no evidence of collusion or wash trades.”

Take all of that at face value and Kalshi has still described a market maker that loses money on every fill and keeps quoting anyway. The rebuttal explains why. Its example liquidity deal pays a firm $100,000 a month to keep bids and offers of at least $5,000 resting within 0.1% of each other, 95% of every hour. The money is for being on the book. A quote of exactly $5,000, or $5,499, is what a contract written that way produces.

The Subsidy Stack

Which raises the question Kalshi’s rebuttal doesn’t ask of itself: why does the market maker keep doing this? The answer is that Kalshi pays it to, through three separate programs.

The resting-liquidity stipend is the first. The second is a fee rebate. A June 24 filing with the CFTC set up a temporary program that hands self-clearing members back all of their net maker and taker fees on perps each month, with two guardrails: no double-paying incentives on the same volume, and no trade may end up net-negative in fees once the maker and taker sides are combined. Free trading for the biggest accounts, but not paid trading.

The third would go further. A September 2 filing cuts the taker fee on crypto perps to 0.3 basis points, or 0.003%, and pays the maker a net rebate of the same 0.3 basis points. The filing makes that live “upon Exchange notice, but not earlier than 5:00 PM ET on September 16, 2026.” Kalshi says the notice hasn’t gone out and the program isn’t running, so it can’t be what generated the September 17-20 tape. Nobody outside Kalshi can currently check that.

Kalshi also runs a retail-facing Volume Incentive Program that splits a cashback pool by each trader’s share of volume during reward periods. Market makers with existing agreements are excluded. Whether it touched the disputed markets isn’t disclosed.

Put together, the stipend pays one side to post the $5,499 quote and the fee rebate makes it free for the other side to hit it. The repeating number is the incentive structure working as written.

The CFTC Wrote The Memo Five Weeks Early

On August 12 the CFTC’s Division of Market Oversight put out a staff advisory, Letter 26-23, whose stated focus is “incentive programs established in connection with prediction markets.” It warns that “volume-based rewards with steep tiers or threshold bonuses can encourage participants to trade solely to reach volume targets, heightening risks of wash-trading, pre-arranged trading,” and, separately, that “market-maker programs that guarantee net profits or cover participant losses through stipends and rebates may incentivize artificial strategies.” Exchanges are told to build surveillance around the specific behavior each program invites.

The advisory names no exchange and finds nothing against anyone. Kalshi’s response, that CME, Cboe and NYSE all pay for liquidity too, is true and beside the point. 

Real Trades, Fake Signal

Rajiv Sethi, an economist at Barnard College, published the cleanest account of the mechanism on Wednesday – and it doesn’t necessarily point to cheating. In his reading, “the volume rewards paid by Kalshi to the market maker are flowing in part to aggressive traders who are able to move before stale orders can be cancelled.” The fee refund makes it worse, because refunding the taker’s fee “aggravates the adverse selection problem faced by liquidity providers.” His verdict: “By channeling funds to aggressive low latency traders through the market makers, the exchange is undoing the liquidity provision that the rewards were meant to boost.”

Tyler Durden
Wed, 09/23/2026 – 14:05

Spain Clears Way For US Extradition Case Against Cox Media Heir Turned Communist Financier

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Spain Clears Way For US Extradition Case Against Cox Media Heir Turned Communist Financier

The Spanish government has begun a process that could soon lead to the US extradition of Jim “Fergie” Chambers, the communist centimillionaire and heir to the massive Cox media fortune.

Bloomberg reported Tuesday that Chambers moved a step closer to extradition to the US after Spain’s Cabinet allowed the case to proceed to court.

Chambers has been detained since his July 10 arrest in Ibiza and is wanted by the US on money laundering, riot and riot conspiracy charges linked to 2023 pro-Palestinian demonstrations and transfers to a company in Tunisia, where he previously lived.

Government spokeswoman Elma Saiz confirmed to the outlet that Spanish courts would now review the request. If judges approve extradition, the final decision returns to Prime Minister Pedro Sánchez’s Cabinet.

We profiled Chambers in July, shortly after he was arrested, and noted that he was a major funder of America’s radical left and had been described by pro-Palestinian activist Laith Marouf as “the new Soros.“

Chambers founded the Babochki Collective and is a major backer of Stop Cop City, Palestine Action US (later renamed Unity of Fields), and related legal defense efforts. He allegedly funded bail, legal fees, and direct-action campaigns targeting police-training projects and Israeli-linked defense firms, while also building networks with far-left activists.

A communist and a convert to Islam from New York, Chambers allegedly used his $250 million fortune to fund “revolutionary organizing.”

The indictment also alleges that, after fleeing the US in 2023, he transferred about $7.5 million out of the country in order to seek opportunities to provide material support to Hamas, Middle East Eye reported.

There are numerous reports that Chambers has possibly supported or interfaced with designated terrorist groups, including Samidoun, which the US Treasury identified as a “sham charity serving as an international fundraiser for the Popular Front for the Liberation of Palestine (PFLP) terrorist organization,” and Middle East Children’s Alliance, which has been cited by US and allied governments for links to the PFLP.

Additional US groups he has possibly supported or interfaced with include China-based Marxist Roy Singham’s NGO sphere, including ANSWER Coalition, Party for Socialism and Liberation, and Newsclick, as well as student and campus mobilization networks (such as Students for Justice in Palestine) and political prisoner advocacy groups. Chambers’ own Berkshire Communists project in Massachusetts has served as a local hub for organizing and arms training within this network.

City Journal’s Stu Smith wrote in a recent report, “Chambers is one of the main funders of America’s radical Left. His money has flowed to a host of projects in the “anti-imperialism” organizing space,” adding, “Chambers claims that he and Singham are effectively the two primary financiers of the US radical left.” 

Chambers’ arrest came shortly before Secretary of State Marco Rubio and US Treasury Secretary Scott Bessent declared war on the radical left in front of delegations from more than 60 nations and focused on joint efforts to curb transnational far-left terrorism across the Western world (with a focus on Cuba). 

A recent New York Post article mapped out a multi-agency Treasury task force focused on stripping NGOs of tax-exempt status, including George Soros’ far-left Open Society Foundations, the Southern Poverty Law Center, and the Council on American-Islamic Relations. 

On Tuesday, President Trump told the United Nations General Assembly in New York that Cuba has spent decades coordinating with far-left revolutionaries and subversion networks into the U.S. Trump said the State Department has worked to uncover Havana’s ties to subversive and radical groups such as the Communist Party USA, Antifa, and the DSA. 

Whether it’s the federal government’s multi-agency task force focused on communist Chambers, subversion networks from Cuba, China, the Middle East and/or Europe, or NGOs that are hell-bent on stoking a violent Marxist revolution, we have asked the question in a two-part series (see here and here): Where did all the summer riots go?

Tyler Durden
Wed, 09/23/2026 – 11:20

Traders Have Modest Hopes For A Trump-Xi AI Deal

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Traders Have Modest Hopes For A Trump-Xi AI Deal

While we will provide a more detailed preview of the Trump/Xi summit in a subsequent post, there are signs that President Trump and his Chinese counterpart, Xi Jinping, may emerge from their upcoming summit with an agreement about the artificial-intelligence industry, an increasingly prominent flash point between the world’s two biggest economies. But, as Bloomberg’s Jacob Gu  notes, fund managers say it’s unlikely to be significant enough to provide a sustainable boost to AI-related stocks.

Over the weekend, Treasury Secretary Scott Bessent, after hours of talks with Vice Premier He Lifeng in New York, said the two sides agreed to create what he called a “US-China AI dialogue” about the technology’s benefits and threats.

The following day, Liao Min, the Chinese Vice Finance Minister, and a key member of the delegation, told Bloomberg that staff from the two countries were working together toward the details of a potential agreement on AI, investment and trade.

Bessent will present Trump with an AI agreement to review before his meeting with Xi, Fox Business reported.

The importance of AI at the US-China talks is being highlighted by the expected presence of Sam Altman and other industry executives at Trump’s state dinner for Xi to be held later this week, and while US tech execs will be present (again),  Xi is unlikely to bring a delegation of corporate executives when he meets Trump,, the WSJ reported.

But Gary Tan, portfolio manager at Allspring Global Investments, said investors shouldn’t expect it to have much immediate impact on the business between the two countries. “Given past experiences, our sense is that Trump’s visit to China earlier this year with a heavyweight technology entourage did not ultimately translate into meaningful progress on technology or hardware restrictions,” he said.

“From our side, this still looks more symbolic than substantive, and investors should continue positioning for a prolonged AI race rather than an imminent policy breakthrough,” Tan added.

Ashwin Binwani, founder of private investment firm Alpha Binwani Capital, was similarly cautious, since Bessent highlighted safety issues rather than an easing of US export controls.

“A pop on that news is a fade candidate, not a trend to chase,” he said. “Diversify away from pure semiconductor concentration into the hyperscaler capex story, which has its own momentum independent of the summit.”

He said traders have been burned previously when policy discussions failed to result in more concrete steps like licensing or purchase deals. That’s not to say there’d be no potential stock-market impact: He said “a modestly constructive readout” could fuel a rebound in the most heavily shorted Hong Kong stocks as investors close out positions.

Tyler Durden
Wed, 09/23/2026 – 11:15