63.3 F
Chicago
Friday, October 2, 2026
Home Blog Page 890

CFTC Starts Pilot Program Allowing Crypto As Collateral In Derivative Markets

0
CFTC Starts Pilot Program Allowing Crypto As Collateral In Derivative Markets

Authored by Stephen Katte via oinTelegraph.com,

The US Commodity Futures Trading Commission has issued updated guidance for tokenized collateral in derivatives markets, paving the way for a pilot program to test how cryptocurrencies can be used as collateral in derivatives markets.

Collateral in derivatives markets serves as a security deposit, acting as a guarantee to ensure that a trader can cover any potential losses. 

The digital asset pilot, announced by CFTC acting chairman Caroline Pham on Monday, will allow futures commission merchants (FCM) – a company that facilitates futures trades for clients – to accept Bitcoin, Ether and Circle’s stablecoin USDC for margin collateral.

The CFTC pilot is another step toward integrating crypto into regulated markets, and Circle CEO Heath Tarbert said it will also protect customers, reduce settlement frictions and assist with risk reduction. 

Pham said in a statement that the pilot program “establishes clear guardrails to protect customer assets and provides enhanced CFTC monitoring and reporting.”

As part of the pilot, participating FCMs will be subject to strict reporting criteria, which require weekly reports on total customer holdings and any significant issues that may affect the use of crypto as collateral. 

Source: Caroline Pham

Updated CFTC guidance for tokenized assets

The CFTC’s Market Participants Division, Division of Market Oversight, and Division of Clearing and Risk also issued updated guidance on the use of tokenized assets as collateral in the trading of futures and swaps.

The guidance covers tokenized real-world assets, including US Treasury’s money market funds, and topics such as eligible tokenized assets, legal enforceability, segregation and control arrangements.

Pham said in an X post on Monday that the “guidance provides regulatory clarity and opens the door for more digital assets to be added as collateral by exchanges and brokers, in addition to US Treasurys and money market funds.”

At the same time, the Market Participants Division issued a “no-action position” on specific requirements regarding the use of payment stablecoins as customer margin collateral and the holding of certain proprietary payment stablecoins in segregated customer accounts.

A CFTC Staff Advisory that restricted FCMs’ ability to accept crypto as customer collateral, Staff Advisory 20-34, was also withdrawn because it is “outdated and no longer relevant,” in part due to the GENIUS Act.

Crypto execs back CFTC move

Several crypto executives applauded the move by the CFTC.

Katherine Kirkpatrick Bos, the general counsel at blockchain company StarkWare, said the use of “tokenized collateral in the derivatives markets is MASSIVE.”

“Atomic settlement, transparency, automation, capital efficiency, savings. Feels abrupt but who recalls the tokenization summit in 2/24, a glimmer of hope in the darkness,” she said.

Coinbase chief legal officer Paul Grewal also supported the action, calling Staff Advisory 20-34 a “concrete ceiling on innovation.”

“It relied on outdated info, went well beyond the bounds of regulation and frustrated the goals of the PWG.”

Source: Paul Grewal 

Salman Banaei, the general counsel at layer-1 blockchain the Plume Network, said it was a “major move” by the CFTC, and another push toward wider adoption.

“This is a step toward the use of onchain infra to automate settlement for the biggest asset class in the world: OTC derivatives, swaps,” he added.

Tyler Durden
Wed, 12/10/2025 – 08:40

Trump To “Make Phone Call” Over Thai-Cambodia Border Crisis As 500,000 Flee

0
Trump To “Make Phone Call” Over Thai-Cambodia Border Crisis As 500,000 Flee

At a rally in Pennsylvania on Tuesday night, President Trump told the crowd he will be “making a phone call” to the leaders of Thailand and Cambodia to urge peace and help resolve their ongoing border dispute.

“Who else could say, ‘I’m going to make a phone call and stop a war of two very powerful countries. We’re making peace through strength,” Trump told the audience.

Heavy fighting has erupted again earlier this week along the 500-mile Thailand-Cambodia border, leaving at least a dozen people dead and forcing more than half a million to flee.

Footage of the chaos:

In July, Trump pressured both countries with potential trade restrictions, which helped produce a temporary peace deal over the summer, but the conflict has since spiraled out of control in recent days.

“Bangkok’s resistance is a test for Trump’s tariff play, but the tariff has always been a blunt instrument,” Chong Ja Ian, a political science professor at the National University of Singapore, told Reuters, adding, “Whether it can get a lasting ceasefire over longstanding and deep-seated animosities has been and is doubtful.”

Trump has recently positioned himself as a mediator in several international disputes as part of his pursuit of a Nobel Peace Prize. The US also signaled to Kyiv this week that reaching a peace agreement by Christmas Day is crucial.

Tyler Durden
Wed, 12/10/2025 – 08:25

Trump On NATO: ‘They Call Me Daddy’

0
Trump On NATO: ‘They Call Me Daddy’

Among the more notable and amusing moments from President Trump’s newly published interview with Politico is when he stated that NATO officials refer to him as “Daddy” after being proven right on the need to bolster collective defense funding through increased European budgets.

This tough approach, heavily vocalized during his first term – and subject of immense pushback from European leaders at the time, is now by and large being belatedly (and now urgently) embraced as Europe ramps up defense investments amid the griding Russia-Ukraine war. 

“NATO calls me Daddy,” Trump said in the interview, highlighting that Europe has relied much too heavily on American military might and funding for decades.

via CNN

Trump’s “daddy” remark came in the following context:

Burns pressed Trump on whether he would get “involved in European elections” as a result of what he was seeing, to which the president said he was already involved in Europe but wants to “run” the U.S.

In the middle of the line of questioning, Trump joked: “NATO calls me daddy.”

He pointed out that it was his urgings alone which boosted projected NATO spending “from 2% to 5%” – far surpassing the longtime NATO benchmark of 2% of GDP on defense. 

“I mean, I have a lot to say about it. Look, I raised, you know, GDP from 2 percent to 5%; the 2 % they weren’t paying and the 5% they are paying. And they’re paying it because when we send things over, NATO pays for it, and I assume they give it to Ukraine,” Trump explained.

Watch the comments on the US relationship to NATO unfold…

“But Europe is being destroyed,” he added in reference to his prior commentary on unchecked immigration, leftist censorship policies, and EU centralization which has brought about decline in democracies.

Previously, NATO Secretary General Mark Rutte somewhat awkwardly praised Trump as “a man of strength and peace” before awkwardly stating: “Sometimes, daddy has to use strong words.”

Rutte later tried to distance himself from his casual remarks at a NATO presser back in June, claiming he wasn’t directly talking about Trump in the daddy comments…

Tyler Durden
Wed, 12/10/2025 – 05:45

First Active British Soldier Dies In Ukraine In ‘Tragic Accident’

0
First Active British Soldier Dies In Ukraine In ‘Tragic Accident’

Britain’s military has announced the death of a member of the UK Armed Forces in what officials called a “tragic accident” on Tuesday. The accident happened during a weapons trial conducted by Ukrainian forces, and inside Ukraine.

The Ministry of Defence’s official statement described that the soldier “was injured in a tragic accident whilst observing Ukrainian forces test a new defensive capability, away from the front lines.”

Source: royal.uk

No other related details were released, including about the weapons system involved or the precise location. The description of the system being a “new” defense capability is interesting, however.

“The tragedy occurred during training, and we extend our condolences to the family and loved ones,” the statement added, emphasizing that it was not combat related.

The British soldier may have been observing active combat from a distance, as Financial Times suggests:

An MoD spokesperson said the death was not believed to have been caused by hostile fire, and the soldier had been injured “whilst observing Ukrainian forces test a new defensive capability, away from the front lines”. The serviceman, whose name has not been released, died on Tuesday morning. His family has been informed.

While there have over the years of the Ukraine war been reports of British security contractors and volunteers dying while fighting Russia, this marks a rare – and possibly first – known death of an active UK service member in the country.

As The Guardian observes, “A Ukrainian memorial produced by the Kyiv war museum has counted that 40 Britons have died defending Ukraine, a higher number than previously thought. None are known to have been serving in the British military at the time of their death.”

According to more from FT:

In July, UK Defence Secretary John Healey told parliament that UK personnel were in Ukraine to scout new security arrangements to support Ukraine in the event of a ceasefire. He said planning included “reconnaissance in Ukraine, led by UK personnel”. 

The circumstances of the accident remain unclear, including what was being tested and how the soldier came to be fatally injured. Ukrainian forces have been trialling a range of new defensive technologies — from counter-drone systems to new long-range missiles — as they continue to adapt to evolving battlefield threats.

Britain all the way back closer to the start of the war in 2022 became among the first Western countries to begin hosting Ukrainian troop training programs on its soil. In all probably tens of thousands of Ukrainian have been trained by UK advisers at this point.

As for foreign fighters near the front lines, France has also seen its citizens and foreign legion members go join the fight. At various times the Kremlin has condemned this trend, especially the rise in French mercenaries, and said it won’t refrain from actively targeting any combatants on or near the front lines. American volunteers have also been killed – on both sides it turns out.

Tyler Durden
Wed, 12/10/2025 – 05:45

Shellenberger: Civilizational Suicide Behind Europe’s Demand For Censorship Of X

0
Shellenberger: Civilizational Suicide Behind Europe’s Demand For Censorship Of X

Authored on Dec. by Michael Shellenberger via X,

Today Last week, the European Commission fined Elon Musk’s X €140 million for, it says, breaking laws requiring social media transparency. Specifically, said the Commission, which is the executive branch of the European Union, X broke the law by making its blue checkmarks available to anyone, failing to make its advertising repository transparent, and failing to provide researchers with special access to its data. “Today’s decision has nothing to do with content moderation,” insisted the Commission’s spokesperson.

In truth, the Commission’s fine has everything to do with “content moderation,” which is censorship. The EU wants X to give its data to government-selected “researchers” so they can identify which posts and advertisements should be censored. This is a censorship-by-proxy strategy. The US Department of Homeland Security (DHS) from 2020 to 2022, and Europe today, have authorized government-funded NGOs to demand censorship of social media platforms in an attempt to deceive the public.

As such, the European Commission is spreading disinformation in order to demand censorship, and is openly engaged in a deception campaign aimed at confusing the people of Europe and the United States about what it is doing.

Many Americans may rightly wonder why they should care about what the European government is doing. President Donald Trump shut down much of the US censorship industrial complex, including by the DHS.

The reason we should care is that the goal of the European Commission, like that of the governments of Britain, Brazil, and Australia, is to censor the American people. As Public was the first to report in October, a pro-censorship activist think tank, the Stanford Cyberpolicy Center, hosted a gathering of global censorship officials to censor American social media platforms and American citizens. The Stanford Cyberpolicy Center was home to the fake “researchers” who oversaw the DHS censorship-by-proxy effort from 2020 to 2022.

Moreover, the EU is now in direct violation of the NATO Treaty, under which the US is militarily obligated to defend Europe. The NATO Treaty requires member states to have free speech and free and fair elections. France and Germany are actively and illegally preventing political candidates from running for office for ideological reasons, namely their opposition to mass migration. And the Romanian high court, with the support of the European Commission, nullified election results under the thin and unproven pretext of Russian interference, after a nationalist and populist presidential candidate won.

The X fine comes in the wake of a renewed push for governments to break encryption and read private text messages, known as “Chat Control.” The ostensible goal of this is to combat child abuse, and yet there is little evidence that such a system is needed. The heads of Signal and Telegram have strongly opposed the effort as a violation of privacy and a backdoor that others could exploit.

And last month, the European Commission launched a “Democracy Shield” program consisting of more funding for NGOs and “fact checkers” to “ensure swift reactions to large-scale and potentially transnational information operations. An independent European Network of Fact-Checkers will be set up to boost fact-checking capacity in all EU official languages…” In the past, activist NGOs have demanded that social media companies censor content based on fact-checks, including false ones.

The European Digital Services Act (DSA) rests upon a model of censorship by proxy. The proxies are NGOs, law enforcement organizations, and industry groups designated “Trusted Flaggers.” Noted Lorcán Price of the Alliance Defending Freedom in his testimony to Congress in September of year, “When a Trusted Flagger speaks, the service provider must listen and prioritize the review of the flagged content before that of its regular users. The service provider must review the flagged content to determine whether it violates the law of an EU member state or the EU itself. If so, the service provider must remove or disable access to the content.”

Notably, the European Commission announced its X fine on the same day that the Trump administration released its new security strategy, which reads, “We will oppose elite-driven, anti-democratic restrictions on core liberties in Europe, the Anglosphere, and the rest of the democratic world, especially among our allies.” The document implicitly threatens US commitment to military security for Europe. “It is far from obvious whether certain European countries will have economies and militaries strong enough to remain reliable allies.”

The European Constitution states that “Everyone has the right to freedom of expression. This right shall include freedom to hold opinions and to receive and impart information and ideas without interference by public authority and regardless of frontiers.” 

Why then is it now seeking to deny those rights?

Please subscribe now to support Public’s defense of free speech, read the full article, and watch the full video!

Tyler Durden
Wed, 12/10/2025 – 05:00

Turkey Plans Drone Facility In Pakistan

0
Turkey Plans Drone Facility In Pakistan

Turkey, long a pioneer in military drone development and production, plans to set up a facility in Pakistan to assemble combat drones, part of Ankara’s drive to boost its defense industry in international markets, Bloomberg reported citing Turkish officials.

Talks over the project, which would see Turkey export stealth and long-endurance drones to be put together in Pakistan, have advanced significantly since October. 

The discussions are part of Turkey’s efforts to grow its defense industry, a strategy that underpins President Recep Tayyip Erdogan’s ambitions to strengthen his influence in the Middle East and further afield. The country has announced deals this year including an order by Indonesia for fighter planes and has plans to supply more arms to Saudi Arabia and Syria.

Turkey’s defense exports increased 30% in the first 11 months of this year to a record $7.5 billion, Haluk Gorgun, who heads the presidency’s defense-industry body, said last Thursday.

Turkey has long-standing ties with Pakistan and is building corvette warships for its navy under a co-production deal, according to both countries. Turkey has upgraded dozens of Pakistan’s F-16s and now wants Islamabad to join its Kaan fifth-generation fighter program, the people said.

The talks to bolster Pakistan’s military capabilities come in the wake of a ceasefire with India following a four-day military clash between the nuclear-armed neighbors in May. Tensions are also high between Pakistan and Afghanistan, leading to a series of clashes, ever since Islamabad accused the Taliban of hosting militant groups that plan attacks on the country.

Tyler Durden
Wed, 12/10/2025 – 04:15

Rosneft Oil Cargo Wanders For Weeks As Sanctions Mount

0
Rosneft Oil Cargo Wanders For Weeks As Sanctions Mount

By Tsvetana Paraskova of OilPrice.com

A cargo of crude oil from sanctioned Russian giant Rosneft has made an 11-week-long meandering trip around Europe and Asia in search of buyers and although it has anchored off a sanctioned Chinese import port, it’s not certain it has reached its final destination yet.

The Fortis tanker with about 700,000 barrels of now sanctioned Russian oil dropped anchor near the Chinese port of Rizhao on the east coast on Tuesday, tanker-tracking data compiled by Bloomberg showed.

The Fortis did not make the entire trip from Russia’s western port on the Baltic Sea. The crude cargo from Rosneft began the journey on the Ailana tanker from the Russian export terminal of Ust-Luga at the end of September.   

Following a trip around Europe into the Mediterranean, and through the Suez Canal, the Ailana arrived near India at the end of October. 

But by then the U.S. had already slapped sanctions on top Russian oil producer Rosneft and the second-largest, Lukoil, to force Russia to genuine talks about ending the war in Ukraine. 

India stopped importing any crude known to have originated from or handled by affiliates of Rosneft and Lukoil to avoid angering the Trump Administration further. 

So the Ailana idled off Mumbai for two weeks, according to Bloomberg’s ship-tracking. Then most of the cargo was transferred onto the Fortis tanker which had shown destinations in India and South Korea before anchoring off the Rizhao port, which the U.S. Treasury also sanctioned in October as part of the pressure campaign on China over its purchases of Iranian crude.   

Despite being very close to the Rizhao port, it’s not certain the Fortis would offload the cargo there, according to Bloomberg. 

The three-month long trip and the ship-to-ship (STS) transfer suggest that buyers, especially in India, are steering clear of the sanctioned Russian companies and their cargoes. 

The U.S. sanctions on Rosneft and Lukoil upended all previous plans by Indian refiners, who hastened to withdraw from the spot market for Russian crude in December.

India’s Bharat Petroleum and India Oil Corporation have bought Russian crude from non-sanctioned companies for January delivery, at a discount of $6-$7 to Brent crude, reports emerged last week. 

Tyler Durden
Wed, 12/10/2025 – 03:30

Germany Plans Largest Single-Year Investment In Arms, Equipment In Its History

0
Germany Plans Largest Single-Year Investment In Arms, Equipment In Its History

At a moment the Russia-Ukraine war grinds on, and as Trump-led efforts to find peace have been frustrated – largely as Zelensky and his backers have balked at agreeing to any territorial compromise as the bases of a deal – Germany is busy transforming its military with an aim to boost Bundeswehr numbers and meet NATO targets.

That news dominated headlines last week, but added to this Bloomberg is newly reporting Tuesday that the troop expansion will coincide with a major tech and armament expansion, given lawmakers are expected to approve a record €52 billion (about $61 billion) in military procurement contracts next week.

This will mark the largest single-year investment in defense equipment in the country’s history, underscoring Berlin’s renewed push to modernize its armed forces amid the growing European standoff with Russia.

Source: Rheinmetall

As for 2025 numbers, prior approvals brought total defense commitments for this year to above €33 billion. So next year’s could more than double, based on the new projected figures.

Much of the money is expected to flow to German defense manufacturers, including major firms like Heckler & Koch and Rheinmetall, both long well-known known for their advanced military equipment.

The new procurement package covers 73 major projects aimed at upgrading the Bundeswehr. Examples of key items slated for purchase include:

  • F-35 fighter jets: Advanced stealth aircraft essential for modern air operations.

  • Joint Strike Missiles: Precision munitions that significantly enhance Germany’s strike capabilities.

  • Aladin reconnaissance drones: Unmanned systems that will improve real-time surveillance and intelligence collection.

  • G95 assault rifles: Modern small arms intended to give soldiers more reliable, effective weaponry.

  • Air defense systems: Critical assets to safeguard German airspace from potential threats.

  • Armored vehicles: New platforms that boost troop protection and mobility in combat.

  • Additional small arms: A range of weapons to better equip personnel for varied missions.

German defense minister Boris Pistorius recently told Germans there was “no cause for concern…no reason for fear…The more capable of deterrence and defense our armed forces are, through armament through training and through personnel, the less likely it is that we will become a party to a conflict at all.”

Pistorius and Chancellor Friedrich Merz have set a goal for having Europe’s largest military and to be “war-ready” by 2029. Doing its part to promote German militarism, the Wall Street Journal’s cited unnamed “military analysts [who] think Russia may be able and willing to attack NATO” by that year. 

Tyler Durden
Wed, 12/10/2025 – 02:45

Europe’s Brown New Deal

0
Europe’s Brown New Deal

Authored by Dmitry Orlov via ForumGeopolitica.com,

As living standards in Europe decline, the elites are inventing a fictional enemy: Russia. With staged provocations and historical distortions, they want to divert people’s anger and justify higher military spending.

The result of the Green New Deal is steadily decreasing living standards throughout Europe stemming from the root cause of lower amounts of affordable energy per capita. In turn, it is superficially stable but steadily worsening living conditions, much more so than an outright crisis, that cause populations to rebel and to overthrow their ruling elites. The ruling elites of Europe know this, do not fancy being strung up on lampposts all over Europe, and seek to at least deflect the blame and, better yet, to engineer an outright crisis which they can then pretend to mitigate.

Their manufactured crisis of choice is the entirely fictional yet imminent attack on the European Union by the Russian Federation. The risible lie used to support this argument is that should the Ukrainian army be routed and should the Kiev regime fall, Russian tanks will then roll across Europe… just like they did in 1945! The thorny question of why Russia would ever be interested in such an escapade is avoided through anti-Russian bigotry: the very fact that the Russians happen to be Russian is taken as sufficient to guarantee their propensity for such insane and self-defeating behavior.

But we, not being irrational anti-Russian bigots, will take the time to answer this question. Let us consider Russia’s stated demands for the former Ukrainian Soviet Socialist Republic first created by Lenin and Stalin: its denazification, demilitarization, neutrality and guaranteeing the rights of the Russian-speaking majority (which remains a majority in spite of most heavy-handed official efforts to force people to speak Ukrainian). Note that “conquering all of Europe” or “restoring the USSR” is not on Russia’s to-do list.

Three years into Russia’s Special Military Operation, we can consider the results.

Denazification: where are the Ukraine’s neo-Nazi battalions which sported German Nazi-inspired flags and insignia and whose members were easily distinguished by swastikas and portraits of Hitler with which their limbs and torsos were tattooed? The ones regularly called out for the most war crimes are the Azov Battalion (now a regiment), the Aidar Battalion, the Kraken Regiment, and Right Sector. The Azov battalion was founded by far-right nationalist Andrey Biletsky, which used the Nazi Wolfsangel as its emblem. Pravy Sektor’s ultranationalist members played a major role in the Euromaidan revolution of 2014 and in the war in the Donbas in 2014-2015. Aidar battalion was charged with human rights abuses by Amnesty International and Human Rights Watch. Svoboda (Freedom) Party recruited fighters using ultranationalist and antisemitic rhetoric. All of them had a good run and caused much murder and mayhem, but by now much of their initial membership is dead, and although their names are still being used for propaganda purposes by the Kiev regime, the organizations themselves are half-dead. At this point, the Nazi battalions are mostly being used as barrier troops, blocking the raw recruits thrown at the advancing Russians from retreating and trying to kill them when they try to surrender.

Demilitarization: for the first year or so of the Special Military Operation, the Ukrainian forces had no shortage of volunteers, but now there are none. Instead, men are being grabbed off the streets and press-ganged into service (unless they can afford to pay a hefty bribe) while recruitment officers have become filthy rich and universally loathed and despised. Initially, Ukrainian troops were armed with Soviet-era weapons, left over from Ukrainian SSR, or scrounged from all over Eastern Europe by formerly Warsaw pact but now NATO-member countries. The Ukrainian military was organized and operated in accordance with Soviet-era field manuals and rule-books. And it posed a formidable threat and inflicted considerable casualties on the Russian side. The Soviet-vintage weapons supply was gradually depleted and replaced with NATO weapons, which proved much less effective and far easier for the Russians to destroy, designed, as they are, to maximize profits for American defense contractors rather than to provide adequate defense (since nobody is attacking America in any case). The NATO armories are by now substantially depleted as well, as are the funds available to procure more weapons. European leaders in Hungary, Slovakia, Czechia and elsewhere are starting to reject the idea of further military spending on behalf of the Kiev regime.

Meanwhile, back in the Ukraine, Soviet-era manuals and rule-books were replaced with “NATO standards” and training, which proved to be far less effective than the Soviet ones. NATO members learned the methodology from the Americans, who, in turn, learned it from former Nazi German officers, who, if you will recall, lost the war to the Red Army. NATO, and now the Ukrainian army, are thus reliant on military doctrines, organizational principles and operational practices of the losing side. NATO, which is mostly just the Americans, was able to achieve results (though never quite an outright victory) against such weak adversaries as Serbia and Libya, but its favorite technique — indiscriminate bombing campaigns —would have inevitably escalated to a nuclear exchange if it were ever attempted against Russia.

A truly ridiculous situation has emerged: the Ukrainians, role-playing as Nazi Germans, with NATO in a support role, is involved in a high-intensity conventional conflict with Russia, role-playing as the Red Army, and achieving the same end result. Since this implies extreme stupidity, a quick look at national IQ ratings seems warranted: Russia’s average is 103; the Ukraine’s is at 95.4 — the lowest in Europe. The US does a bit better with an IQ of 99.7 — still very far behind China’s 107. “Dumb and Dumber go to War” would have made a good movie title, if it weren’t for all the blood and the gore and the Ukrainian military graves stretching beyond the horizon.

From all of this, it is possible to draw the conclusion that Russia is, slowly but surely, succeeding in the stated goals of its SMO by winning a war of attrition against both the Ukraine (in manpower) and NATO (in weapons). With the Ukrainian ultranationalists mostly dead and the Ukrainian and NATO armories depleted, and more and more Ukrainian soldiers refusing to fight, the military operation will inevitably draw to a close, the Kiev regime will fall, the Russian-speaking majority in the Ukraine will reassert its rights and, if all goes well, there will be a return to constitutional order which was destroyed during the US-organized putsch in the spring of 2014.

Will Russia then go on to more Special Military Operations to denazify, demilitarize and defend the human rights of large Russian minorities living in Estonia, Latvia, Lithuania and Moldova? Russia is treating the plight of the Russians still living in these parts as a humanitarian rather than a military issue, easily absorbing the influx. For instance, there is half a million Moldovans now living in Russia while the total population of Moldova is now just two million and falling fast. The picture for the Baltics is similar, although the numbers are too small to matter.

But each of these semi-defunct former Soviet Socialist Republics, lovingly crafted out of bits of the Russian Empire and nurtured by internationalist-minded Bolsheviks to Russia’s lasting regret and chagrin, also has certain strategic considerations for Russia: Estonia, together with Finland, almost blocks the Gulf of Finland which provides critically important sea access to St. Petersburg and the nearby ports of Ust-Luga and Primorsk with a total cargo volume of around 170 million tonnes per year. Lithuania provides a land bridge to the Russian exclave of Kaliningrad. Moldova has a separatist region of Transnistria, inhabited by half a million actual Russian passport-holders whom the Russian state is theoretically sworn to defend.

But which of these issues would Russia ever attempt to solve by going on attack? A less than completely insane, deranged Europe should be able to resolve such issues amicably and without recourse to violence. We can only hope that a resounding NATO defeat in the Ukraine will cool the NATO-heads who are currently seeking to escalate the conflict.

If a military conflict involving the four countries mentioned above were to erupt, it is important to keep in mind that they would have to be defended by troops from elsewhere in Europe. All four of these countries are largely emptied of young people: since there are hardly any jobs there, young people leave as soon as they can, leaving behind countries sparsely populated by increasingly destitute pensioners, with more and more empty school buildings being converted to care for the old who can no longer take care of themselves.

In turn, how likely is it that American, British, French, German, Spanish and Italian youths can be drafted and sent to die in a futile conflict to defend Estonia, Latvia, Lithuania (NATO and EU members) and Moldova (not)? If just 16% of German men say that they would definitely be willing to take up arms to defend their own Fatherland, then what percentage of them would be willing to go and die for Lithuania? We can only guess, so let us guess 2% — and these would be the mentally defective, suicidal ones! We can also hope that a less than utterly insane German society would generate considerable political pressure to force their government to just give the Russians whatever they want, which isn’t much: open and secure highway and railway corridors to Kaliningrad and widened sea lanes and air corridors through the Gulf of Finland is all it would take to resolve the issue amicably as far as the Baltics.

Currently, however, there seems to be no interest in the West in resolving issues amicably, instead concentrating on staging provocations. On September 10, some number of drones entered Polish airspace. These were subsequently discovered to be Russian-made Gerbera drones —decoys which lack an explosive charge and are used to confuse and to deplete air defense systems. Based on their limited range, they were launched from Kiev regime-held territory. They overflew part of Belarus, where some of them were shot down, while others continued on to Poland. Belarus authorities issued a warning to their Polish counterparts: “Incoming, watch out!”

Polish and other NATO forces scrambled jets — but jets are useless for shooting down such small and slow-moving targets. The drones were Russian-made but there is no evidence that they were Russian-operated. Such drones regularly fall out of the skies in the Ukraine and can be patched up, refueled, reprogrammed and sent on. It is possible that the Russians were behind the provocation if their goal was to demonstrate that NATO is defenseless against even such primitive drones, in which case they did prove their point, but it is far more likely that it was the Kiev regime trying to keep the “Russian aggression” narrative alive.

Such plausibly deniable demonstrations do seem to take place. For example, there was the Chinese weather balloon which overflew continental United States from January 28 to February 4, 2023. Its flight path was a beautiful arc covering Alaska, Western Canada and then the contiguous United States from Washington State to Myrtle Beach, South Carolina. It flew too high for the US Air Force to shoot down but it gradually lost altitude and was shot down by an F-22 Raptor at an altitude of 18,000 meters. It was either an accident (the balloon blown off-course) or a demonstration of the Americans’ inability to defend their airspace against… weather balloons!

Just 10 days after the episode featuring unarmed Russian drones flying unhindered over Poland, there followed a scandal with Russian jets supposedly violating Estonian airspace. According to the Estonians, three Russian Mig-31 jets entered Estonian airspace “without permission and remained there for a total of 12 minutes.” The jets were on their way from Leningrad region to Kaliningrad region, following the air corridors over the Gulf of Finland and the Baltic which are frequented by air traffic between these two Russian regions and which circumvent the three Baltic countries. In particular, the international free passage corridor between Finland and Estonia is 370km long but only 11km wide and it is theoretically possible that the Migs strayed over the southern, Estonian edge of it. In any case, Mig-31s cruise at 2,500km/h, or 41km/min, and in 12 minutes would have covered 491km, overshooting the mark by some 122km. Essentially, there isn’t enough Estonian territory for them to have taken that long.

The Estonian side failed to present any evidence of such a transgression while Russia’s defense ministry said that the jets were on a “scheduled flight… in strict compliance with international airspace regulations and did not violate the borders of other states, as confirmed by objective monitoring”. That should have been the end of it, but noooo! Was it worth scrambling jets and calling an emergency NATO conference in accordance with Chapter 4 of the NATO charter over such a nonevent, be it intentional, accidental or fictional? Only if the intent was to create much ado about nothing and a tempest in a teacup.

Zooming out from the particulars, such provocations are necessary: the transition from the now defunct Green New Deal to the new Brown New Deal — European militarism, that is — requires an enemy. There are just no other candidates: North Korea is too hot to touch; Iran, if sufficiently provoked, would destroy Israel; and China already has the European and the American economies in a submission hold and will choke out the round-eyes if they don’t start to behave. The only safe enemy is Russia, but that is also a problem: Russia is not sufficiently threatening. It is therefore necessary to stage provocations in order to keep the myth of “Russian aggression” alive in the minds of Europeans, in the hopes of convincing, and, failing that, coercing them into accepting high levels of defense expenditure, just as they accepted high levels of spending on “green” energy — for the European ruling elites to pocket.

However, it turns out that halfhearted provocations are hardly enough to keep the myth of “Russian aggression” alive, never mind making it sufficiently compelling to motivate scores of true believers to queue up at recruitment centers, eager to die battling aggressive Russians Ukrainian style. Luckily, barely believable provocations are not all that the collective West has to offer: there are also efforts being made at constructing a compelling image of the enemy. These efforts are quite extensive and intricate and have been in the works for centuries. They include a fanciful rewriting of history that consigns to oblivion all the episodes that fail to portray Russia in an entirely negative light. We will take them up next.

Tyler Durden
Wed, 12/10/2025 – 02:00

Modern Warfare: Lessons From Ukraine

0
Modern Warfare: Lessons From Ukraine

Authored by Adam Sharp via DailyReckoning.com,

Before Russia invaded Ukraine in 2022, we had very little insight into what modern warfare would look like.

How would hypersonic and cruise missiles perform?

What impact would drones have on the battlefield?

How important is artillery in modern warfare?

How relevant are tanks?

And what about electronic warfare?

All these questions have been answered by this war.

Today let’s review what we’ve learned so far. The future of war is looking more science-fiction by the day.

Drones are Key

The soldier, with a GoPro camera strapped to his helmet, hides in an abandoned building. He’s breathing heavily.

Suddenly, the loud whir of a drone appears. The soldier whispers a prayer and takes cover.

BOOM! The drone explodes nearby. Screaming from a wounded soldier erupts.

I’ve seen this situation play out dozens of times. For both Russian and Ukrainian soldiers.

It’s a terrifying scenario. Sometimes I’ll see a video where a group of soldiers is being attacked by dozens of these killer drones at a time. The whine of a drone’s electric engine has become an ominous sound on the front lines.

These new weapons systems are cheap. A $300 civilian drone combined with a $50 RPG warhead can take out a $4 million tank. This is asymmetric warfare perfected. Tanks will likely maintain a role going forward, but it will be substantially diminished.

Each side uses tens of thousands of these drones per month. They’re so common that 12 gauge shotguns have become essential kit for soldiers on the front-lines. It turns out that birdshot is among the most effective counters. See this video for an example of how effective shotguns can be.

But electronic warfare is also becoming a key defense against drones. The Russian anti-gun drone below works by scrambling a drone’s signal, causing it to crash.

Re-purposed civilian drones have already changed warfare forever. At first they were primarily a scouting tool, but now they’ve become a deadly weapon.

The abundance of weaponized drones on the battlefield has made advancing extremely difficult. A small hidden group armed with a few dozen drones can hold back hundreds of vehicles from advancing.

Of course, there are also dozens of new models of military-grade drones being released every year. There are now mass-produced killer drones of all types being churned out by the tens of thousands. We covered some of the more important modelsback in July.

Ground and Sea Drones

It’s not just flying drones. Unmanned ground combat vehicles (UGVs) are also coming into play. The screenshot below shows Ukraine’s new UGVs armed with .50 caliber machine guns.

For now, these ground-based drones are crude with limited range and ammunition. But within a few years they will evolve into intimidating juggernauts roaming the battlefield. In the near future tanks and artillery will also be unmanned.

Drone warfare extends to the seas. And Ukraine has nearly perfected this form of warfare.

Below is the Magura V5, a Ukrainian sea drone which has sunk a number of valuable Russian warships. It was commemorated with the stamp shown below by the Ukrainian postal service.

The latest version of the Magura can carry an explosive payload of 1,400 lbs. That’s enough to sink almost any ship with proper placement. And the latest models even come equipped with anti-air missiles mounted on the top to counter Russian helicopters and jets.

Sea (and submarine eventually) drones will be an absolutely critical aspect of future wars. Imagine a swarm of 50 of these high-speed sea drones converging on an aircraft carrier strike group, while a swarm of airborne drones attacks from above. It’s virtually impossible to stop such an attack.

The age of mega-ships like aircraft carriers is drawing to a close. It seems likely that naval forces of the future will mostly consist of smaller missile boats and submarines.

Modern Missiles

One part of this war which wasn’t a surprise is Russia’s missile advantage. The country has always specialized in long-range fires, because it realized it couldn’t compete with NATO when it comes to traditional airpower (jets).

That investment has proved to be a wise one. Missiles have been a key advantage in this war. From hypersonic models like the Kinzhal and Iskander-M, to cruise missiles like the Calibr and KH-101, they’ve all been critical to Russia’s progress in the war.

The Iskander has been the most effective missile system of this war. The Iskander is a mobile ground-launched hypersonic missile which Russia mass produces.

An Iskander-M launcher via Wikipedia

The Iskander-M has a range of up to 500 kilometers and carries a warhead of up to 700kg (1,534 lbs). It moves fast, with a burnout speed of Mach 5.9. It can maneuver during flight, and contains decoys and flares which are released as it approaches its target. Each launcher carries 2 missiles and is often accompanied by a reloading vehicle.

The Iskander-M has proven very difficult to intercept, as we covered back in October. The Patriot missile defense system has mostly been outmatched by it.

Iskander missiles are used to strike valuable targets such as command centers, Patriot missile defense systems, ammo/fuel depots, and HIMARS rocket launchers.

Speaking of HIMARS, this American-made rocket system has proven to be an extremely effective weapon for Ukraine.

HIMARS launching a guided rocket, via Wikipedia

The HIMARS system fires 227 mm guided rockets at ranges up to 150 km. The warheads are relatively small at around 200 lbs, but have proven effective at taking out enemy command centers and other valuable targets. Each “pod” contains 6 rockets and is disposable. HIMARS can also fire a single larger ATACMS missile with a ~450 lb warhead.

Early on, the HIMARS was a wonder weapon for Ukraine, having devastating effects on Russian ammo/fuel depots and troop concentrations.

However, as the war has gone on, Russia has figured out how to “spoof” the satellite signals used to guide HIMARS rockets, and the weapons system has become less effective as a result. I’m sure the engineers at Lockheed Martin are working on fixing this, but it’s going to be an ongoing game of cat and mouse for the foreseeable future.

This is another takeaway from the Ukraine/Russia war. Electronic warfare is absolutely critical in modern conflicts.

Conclusions

The Ukraine war has been a wakeup call to the world. Drones are going to be the focal point of future conflicts. When a $350 piece of equipment can take out a $4 million tank and 4 specialist soldiers, the game has changed.

Soon, tanks and artillery units will also be unmanned.

Due to the rise of drones and unmanned systems, electronic warfare will become increasingly important. If you can jam the signal, you can stop the weapon. I expect future battlefields to be absolutely flooded with radio signals and microwaves.

We didn’t even get to AI in this piece, but will look to cover that in depth in the future. Drones and missiles are already becoming capable of autonomous action. But both sides are understandably secretive about their capabilities.

The bottom line is that the hunter-killer robots from The Terminator are moving from sci-fi to reality.

Combined with this new generation of hypersonic missiles, it’s a completely different landscape than it was just 20 years ago.

I am hopeful the war in Ukraine ends soon, but it has given us a rare peek into what modern warfare truly looks like. And it’s terrifying.

This is the age of asymmetric warfare. Pinpoint long-range weapons systems have eliminated the advantage of large troop concentrations and capital ships like aircraft carriers.

For a long time, only superpowers like America and Russia had access to these types of systems. Now they have proliferated throughout the world. The implications have yet to be fully realized.

Tyler Durden
Tue, 12/09/2025 – 23:25