Russia & The US' Diplomatic Choreography At The UN Shows Their Commitment To A "New Détente"

Authored by Andrew Korybko via substack,

Any claims of Russia “backstabbing” or “selling out” China are absurd and driven by a desire to sow discord...

The “New Détente”, which refers to the ongoing efforts between Russia and the US to enter into a rapprochement in the New Cold War similar in spirit to what they agreed to half a century ago during the Old Cold War, is no longer speculation after the US’ pivot towards Russia at the UN. The US joined Russia in vetoing a resolution from the General Assembly that condemned Russia for its special operation and then Russia sided with the US in supporting the latter’s more neutral one in the Security Council.

This diplomatic choreography was clearly coordinated between Putin and Trump to show the entire world that they’re committed to the “New Détente”. In parallel with what was unfolding on the world stage, each leader also spoke highly about the future of their economic ties, with Trump hyping everyone up to expect “major economic transactions” while Putin hinted at cooperation in the aluminum and rare earth industries. This followed their representatives discussing Arctic energy cooperation in Riyadh.

It was foreseen in early January that “Creative Energy Diplomacy Can Lay The Basis For A Grand Russian-American Deal”, which readers can learn more about from the preceding hyperlinked analysis. The two dozen compromises suggested near the end have already been agreed upon in part as proven by the US withholding Article 5 guarantees from NATO countries’ troops in Ukraine, ruling out its membership in NATO, discussing energy cooperation with Russia, and flirting with other forms of sanctions relief.

Unlike what some have claimed, Trump isn’t trying to pull a so-called “Reverse Nixon” by incentivizing Russia to turn against China like his predecessor half a century ago incentivized China to turn against the erstwhile USSR, which is unrealistic to expect in any case. Rather, as explained in the analysis about creative energy diplomacy, the purpose is to incentivize Russia into placing limits on its resource and eventually military cooperation with China in order to erode its strategic advantages vis-à-vis the US.

From Trump’s view, this will avert the scenario of Russia turbocharging China’s superpower rise and thus even the odds of reaching a grand deal with the People’s Republic that’ll be more in the US’ favor, while Putin sees this as managing the global balance of power. From his perspective, Russia is incentivizing the US into relieving pressure upon it and unofficial paying reparations for the proxy war via investments into its resource industry and economy as a whole, all while redirecting the US’ military focus elsewhere.

The Kissinger-inspired pragmatism behind this arrangement is predictably opposed by each country’s most zealous supporters, both at the civil society and state levels, but more on the US’ side than Russia’s. Furthermore, even though China officially supports the emerging Russian-US rapprochement, it’s likely still very suspicious of this process but is playing it cool for now in order to not attract negative attention. These trends must be managed by both parties in order for their envisaged “New Détente” to succeed.

Trump is ignoring his powerless opponents at the civil society level and European state one while purging his much more powerful opponents at the domestic (“deep”) state level through Musk’s DOGE, with the outcome of Trump’s efforts in turn shaping what Putin will ultimately do. Since nothing tangible has been achieved thus far, the Russian leader doesn’t seem to be doing anything other than sending positive signals, but that could change if Trump agrees to the compromises that Putin requires for cutting a deal.

In that scenario, Russian publicly funded media’s narratives towards the US and the New Cold War more broadly could drastically shift, which would be expected to also influence the information products of those Russian-friendly members of the Alt-Media Community who take their cues from the Kremlin. To be clear, these figures and outlets are free-thinkers, but they trust Putin and the media that’s under his authority for guidance to better understand the global systemic transition and specific processes therein.

Dissident elements might no longer be platformed by Russian publicly funded media nor invited to Russia for conferences since their views would no longer conform with the Kremlin’s so that could motivate them to rethink their opposition to the “New Détente” in furtherance of their career interests. No such potentially high-profile dissent is expected at the domestic (“deep”) state level though due to the differences between Russia and the US’ systems so such forces are expected to easily fall into line.

As regards China’s speculative suspicions of the Russian-US rapprochement, Trump, Putin, their top diplomats, and other representatives are expected to make a concerted effort to allay their counterparts’ fears about this process in order to avoid an overreaction that could worsen China’s ties with each. That said, China is known for reacting calmly even to events that it disapproves of so no significantly negative response is expected, though Chinese-friendly Alt-Media figures might be a totally different story.

It's entirely possible that they’d either be tacitly encouraged to fearmonger about the “New Détente”, including by sensationally claiming that Russia “sold out” to the US, or might interpret everything on their own this way and sincerely believe that expressing these views somehow helps China. In any case, it can’t be ruled out that the Alt-Media Community might bifurcate into Russian-friendly and Chinese-friendly halves wherein the influential Iranian-led Resistance segment aligns with the latter out of spite.

That last prediction is predicated on how upset many of these figures are after “Russia Dodged A Bullet By Wisely Choosing Not To Ally With The Now-Defeated Resistance Axis” as Israel systematically destroyed their regional network in West Asia over the course of the latest war. That outcome could be offset though if Iran later enters into its own “New Détente” with the US, after which it too could signal to its like-minded Alt-Media allies to shift their narratives like Russia might have earlier done by then.

All the insight shared thus far is conditional on the “New Détente” succeeding, the odds of which are increasing by the day as shown by the latest Russian-US developments and their respective leaders’ statements, hence the need to forecast the impact that this could have on the information sphere. The best-case scenario is that the pro-Chinese part of the Alt-Media Community doesn’t overreact on its own or is encouraged by China to respond that way so that the US can then more easily reach a deal with it.

Putin also endorsed Trump’s bold proposal for halving their defense budgets if everything works out between them, with the Russian leader even proposing that China do so too if it’s interested. He therefore clearly wants to promote or even help broker a Sino-US deal for resolving the root causes of their own security dilemma exactly as he and Trump are trying to do with theirs. Any claims of Russia “backstabbing” or “selling out” China are accordingly absurd and driven by a desire to sow discord.

If everything evolves along the trajectory that was outlined in this analysis, then the onus will be on China and to a lesser extent on Iran whether to get with the program by negotiating their own comprehensive deals with the US or to continue to defy it at the expense of jeopardizing world peace. Russia and the US’ diplomatic choreography at the UN, and Putin and Trump’s arguably coordinated economic-resource partnership statements, show that they trust each other and truly want peace.

China and Iran have repeatedly expressed that they trust Russia, both at the national and leadership levels, so it would be a moment of truth for them whether they’d then follow its lead by entering into their own talks with the US or go the opposite way in a sign that they never really trusted Russia. Whatever they do will in turn inform Russian policymakers, Putin chief among them, of their true intentions and could thus lead to pragmatic and peaceful recalibrations of Russia’s policy towards them.

Tyler Durden Tue, 02/25/2025 - 23:25

Democratic Policies At Work: "Almost Half" Of Seattle's Homeless Population Is Not From Seattle

A new study from the Discovery Institute’s Fix Homelessness reveals the devastating consequences of Seattle’s failed policies, which have not only failed to address homelessness but have actively worsened the crisis, according to 770 KTTH.

Driven by progressive ideology rather than practical solutions, city leaders have fostered a system that attracts homeless individuals from outside the region while keeping them trapped in cycles of addiction, crime, and dependency.

Rather than tackling the root causes, these policies have invited more homelessness, turning the issue into a manufactured disaster rather than a problem to be solved.

The study reveals that nearly half of the city’s homeless population became homeless outside of Seattle or King County, drawn in by the city’s permissive policies—free tents, open-air drug use, and a refusal to enforce encampment laws. An overwhelming 86.6% were born elsewhere, and 80.2% didn’t even attend high school in the area.

The KTTH report says that rather than addressing addiction and mental health, Seattle relies on the failed “Housing First” model, which prioritizes subsidized housing over real treatment. Instead of helping, the city warehouses the homeless, trapping them in cycles of dependency.

KTTH's Jason Rantz argues that Seattle’s homelessness crisis isn’t about a lack of funding—it’s about failed priorities. The study shows the city has abandoned emergency shelters and recovery programs in favor of “supportive housing,” leading to a 282% spike in overdose deaths between 2020 and 2023.

Nearly half of King County’s 2023 overdose deaths were among the homeless, many in these housing units.

Like San Francisco and Los Angeles, Seattle spends billions while the crisis worsens. Leaders refuse to require addiction treatment before granting housing and have let encampments overrun parks and neighborhoods. Their one-size-fits-all approach ignores addiction and mental illness, trapping people in cycles of dependency.

Real solutions exist: prioritize treatment over subsidized housing, stop incentivizing homelessness, and enforce the law, Rantz says. Despite a Supreme Court ruling allowing cities to ban encampments, Seattle refuses to act. Until it abandons failed progressive policies, the crisis will only grow—and it won’t stay within city limits.

Tyler Durden Tue, 02/25/2025 - 23:00

22 Really Bizarre Facts About The Most Orwellian Society On Earth

Authored by Michael Snyder via TheMostImportantNews.com,

Have you ever wondered what it would be like to live in a truly Orwellian society where there is absolutely no freedom of speech, absolutely no freedom of religion and absolutely no freedom of the press?  

You may think that the rules that you are currently living under are bad, but the country that I am about to discuss exercises total control over the population.  In this nation, you can only choose a haircut off a pre-approved list, and smiling on the wrong day can literally get you sent to a prison camp.  Unfortunately, once you are sent to a prison camp you will be worked day and night until you either starve or drop dead.

Of course the country that I am talking about is North Korea.  

The following are 22 really bizarre facts about the most Orwellian society on Earth…

#1 The first “Great Leader” of North Korea, Kim Il-sung, is deeply revered in North Korea.  In fact, there are approximately 40,000 statues of Kim Il-sung scattered all throughout the nation.

#2 In North Korea, it is believed that “destroying a statue is the most hideous insult to our supreme authority and our people and is an act of war no less serious than an armed invasion”.

#3 Hanging up pictures of founder Kim Il-sung is compulsory for every household in North Korea.

#4 It is against the law for citizens of North Korea to smile on the 8th of July.  If you break this law, you can be sent to a prison camp or in some cases you could even be executed…

Everyone loves a smile. But what if there were laws on when you could do it? Sound nuts? Believe it or not, it’s against the law for North Koreans to smile on July 8, the anniversary of Kim Il-sung’s death.

If Citizens do happen to break the law for this rule, they could be sent to concentration camps or even pay with their lives. The same goes for being loud, drinking, or having a birthday party. So, whatever you do, don’t smile on July 8.

#5 After he died, the body of Kim Il-sung was embalmed and it still lies in state in Pyongyang.

#6 The same thing was done to the body of Kim Jong-il when he died…

North Korea has announced that the body of late leader Kim Jong-il will lie in state permanently at a palace in the capital, Pyongyang.

His body will be displayed at the Kumsusan Memorial Palace alongside his father, Kim Il-sung.

#7 The North Korean people were told that Kim Jong-il actually bowled a perfect game the first time he ever tried bowling…

Kim Jong Il’s mythology is no less extensive. His birth was hailed as “heaven sent” by propagandists, and state media has often touted impossible feats: He scored a perfect 300 the first time he tried bowling, and shot five holes-in-one the first time he played golf. Upon his death in 2011, the skies about the sacred mountain Paektu in North Korea allegedly glowed red.

#8 The Constitution of North Korea actually guarantees freedom of speech and freedom of the press…

Citizens are guaranteed freedom of speech, of the press, of assembly, demonstration and association.

The State shall guarantee conditions for the free activity of democratic political parties and social organizations.

#9 The Constitution of North Korea also guarantees freedom of religion…

Citizens have freedom of religious beliefs. This right is granted by approving the construction of religious buildings and the holding of religious ceremonies.

#10 In 1987, North Korea began construction on the Ryugyong Hotel, which would have been the tallest hotel in the world at that time if it had been finished on schedule in 1989.  Instead, construction of the bizarre 105 story skyscraper that somewhat resembles a pyramid was suspended in 1992, and the unfinished structure was just a massive concrete shell towering over Pyongyang completely empty for the next 16 years.  Work began once again on the project in 2008, but it is still unfinished to this day…

That pointy building in the center of the capital Pyongyang is the Ryugyong Hotel, also known as “the hotel of doom.” At a height of 1,079 feet (329 meters), it is the tallest unoccupied building in the world, according to Guinness World Records. Construction on the abandoned residence began in 1987 and has stopped and started several times over three decades due to North Korea’s economic woes.

#11 One of North Korea’s greatest national treasures is the Pueblo – a U.S. naval vessel that the North Koreans captured from “the imperialist Americans” back in 1968…

USS Pueblo (AGER-2) is a Banner-class environmental research ship, placed into service during World War II, then converted to a spy ship in 1967 by the United States Navy. She gathered intelligence and oceanographic information, monitoring electronic and radio signals from North Korea. On 23 January 1968, the ship was attacked and captured by a North Korean vessel, in what became known as the “Pueblo incident”.

#12 Current leader Kim Jong-un didn’t like the rules of basketball, and so he radically changed them…

Even the country’s sports are isolated from the rest of the world. Kim Jong-un apparently didn’t like the OG way basketball was played, so decided to rewrite it. The North Korean basketball rules say that slam dunks are worth three points and field goals in the final three minutes of the game are worth eight points.

#13 Police in North Korea are often given promotions when they are able to to identify and arrest Christians…

North Korea’s secret police, the Ministry of State Security, are incentivized with promotions when they apprehend Christians and other believers.

“Those charged with Christianity often face execution or are forced to live out the rest of their lives in political prison camps,” testified Inje Hwang, an investigator with Korea Future Initiative, during a webinar hosted by USCIRF.

#14 Children in North Korea are taught that Christian missionaries suck the blood of children…

Even children are taught from a young age to be suspicious of Christianity.

“In schools, young children are taught that Christian missionaries are spies of the countries who seek opportunities to invade North Korea and they’re shown graphic images of missionaries sucking the blood of children to show how malicious they are,” said Suyeon Yoo, co-director of Korea Future Initiative. “And they are taken to state-run exhibition halls where religious adherents are presented as murderers, spies, and where Bibles are displayed as trophies taken from enemies of the state.”

#15 Christians are executed in some of the most brutal ways imaginable in North Korea.  In one case, a group of Christians was crushed to death by a steamroller…

“While Interviewee 17 was in the North Korean Army, his unit was dispatched to widen the highway between Pyongyang and the nearby port city of Nampo. They were demolishing a vacated house in Yongkang county, Yongkang district town, when in a basement between two bricks they found a Bible and a small notebook that contained 25 names, one identified as pastor, two as chon-do-sa (assistant pastors), two as elders, and 20 other names, apparently parishioners, identified by their occupations. The soldiers turned the Bible and notebook over to the local branch of Department 15 of the Korean Workers Party (KWP), but the Party officials said it was up to the military police unit, Bowisaryungbu gigwanwon, to investigate. Tracked down at their place of work through the listing of occupation in the notebook, the 25 persons were picked up without formal arrest by the military bowibu. The interviewee was not aware of any judicial procedures for those seized. In November 1996, the 25 were brought to the road construction site. Four concentric rectangular rows of spectators were assembled to watch the execution. Interviewee 17 was in the first row. The five leaders to be executed – the pastor, two assistant pastors, and two elders – were bound hand and foot and made to lie down in front of a steamroller. This steamroller was a large construction vehicle imported from Japan with a heavy, huge, and wide steel roller mounted on the front to crush and level the roadway prior to pouring concrete. The other twenty persons were held just to the side. The condemned were accused of being Kiddokyo (Protestant Christian) spies and conspiring to engage in subversive activities. Nevertheless, they were told, “If you abandon religion and serve only Kim Il Sung and Kim Jong Il, you will not be killed.” None of the five said a word. Some of the fellow parishioners assembled to watch the execution cried, screamed out, or fainted when the skulls made a popping sound as they were crushed beneath the steamroller. Interviewee 17 thought, at the time, that these church people were crazy. He thought then that religion was an “opiate,” and it was stupid for them to give up their lives for religion. He heard from the soldiers who took away the other twenty prisoners that they were being sent to a prison camp.”

#16 It has been estimated that over 150,000 people live in six giant North Korean concentration camps…

All the fanciful and funny myths about North Korea’s dictators cover up a disturbing truth, however: Some 154,000 North Koreans live in prison camps, according to South Korean government estimates. (Other international bodies put the number at closer to 200,000). There are six camps, surrounded by electrified barbed wire. Two camps allow for some “rehabilitation” and release of prisoners, according to “Escape from Camp 14: One Man’s Remarkable Odyssey from North Korea to Freedom in the West” (Viking, 2012). The rest are prisons for life.

#17 The conditions that prisoners must endure in North Korea are absolutely deplorable…

Extrajudicial executions, rape, forced abortions, jail without trial, torture, starvation rations that leave prisoners so hungry some turn to eating insects.

These are just some of the abuses commonplace in North Korean prisons and other detention facilities, according to former detainees whose testimony forms the basis of a new report released by a human rights watchdog this week.

#18 A song entitled “No Motherland Without You” was written specifically for Kim Jong-il, and it is one of the most popular songs in North Korea.  It is regularly sung by the North Korean military.

#19 Most Americans don’t know that the North Koreans have developed a nuclear missile that can “reach anywhere in the U.S. mainland”…

North Korea said Monday leader Kim Jong Un has vowed to develop more powerful means of attack, days after the country’s first intercontinental ballistic missile launch in more than four years.

The statement suggests North Korea might perform additional launches or even test a nuclear device soon as it pushes to modernize its arsenal and increase pressure on the Biden administration while nuclear diplomacy remains stalled. Last Thursday, the North performed its 12th round of weapons tests this year, launching the newly developed, long-range Hwasong-17, which analysts say was designed to reach anywhere in the U.S. mainland.

#20 North Korea has successfully tested an undersea drone that is reportedly similar to Russia’s Poseidon doomsday weapon…

According to KCNA, the test was personally overseen by dictator Kim Jong-un, who wanted to warn the U.S. and South Korea they are causing a “nuclear crisis” with their “intentional, persistent, and provocative war drills.”

North Korea’s state Rodong Sinmun newspaper published a photo of Kim standing next to a large torpedo, which may or may not have been the undersea drone. The article also included photos that purportedly showed the drone maneuvering underwater and then kicking up a pillar of water, depth-charge style, when its test warhead detonated.

#21 Kim Jong-un has repeatedly threatened to nuke South Korea.  Here is just one example…

North Korean leader Kim Jong Un threatened to use nuclear weapons to destroy South Korea if attacked, state media reported Friday, after South Korea’s president warned that if the North used nuclear weapons it would “face the end of its regime.”

The fiery rhetoric isn’t new, but comes at a time of tension on the Korean Peninsula and just weeks after North Korean state media released images of Kim visiting a uranium enrichment facility, which produces weapons-grade nuclear materials.

#22 Kim Jong-un has also threatened to “thoroughly annihilate” the United States…

North Korean leader Kim Jong Un ordered his military to “thoroughly annihilate” the United States and South Korea if provoked, state media reported Monday, after he vowed to boost national defense to cope with what he called an unprecedented U.S.-led confrontation.

Even knowing all this, I would love to visit North Korea someday.

But those that visit are certainly not guaranteed to get out alive.

A woman named Yeonmi Park knows what daily life in North Korea is like, because she was born there.  By the age of 13, she had literally witnessed people drop dead from starvation right in front of her eyes.  Thankfully, she was able to escape North Korea for a better life.

In 2016, Park transferred from the university that she was studying at in South Korea to Columbia University here in the United States.  Initially she was very excited to be able to study in this country, but once she started attending classes she quickly realized that “even North Korea isn’t this nuts”…

A North Korean defector said she viewed the US as country of free thought and free speech – until she went to college here.

Yeonmi Park attended Columbia University and was immediately struck by what she viewed anti-Western sentiment in the classroom and a focus on political correctness that had her thinking “even North Korea isn’t this nuts.”

It is so easy to mock North Korea, but the truth is that much of the rest of the world has been going down the same Orwellian path.

Hopefully there will be some positive changes now that a new administration is in power here in the United States.

But in most nations, basic freedoms are being eroded at a staggering rate.

Liberty is such a precious thing, and once it is lost it can be exceedingly difficult to ever get back.

Just ask the people of North Korea.

*  *  *

Michael’s new  book entitled “Why” is available in paperback and for the Kindle on Amazon.com, and you can subscribe to his Substack newsletter at michaeltsnyder.substack.com.

Tyler Durden Tue, 02/25/2025 - 22:35

Shock & Outrage Over 'Shameful' US Vote At The United Nations

There's been 'shock' and disappointment among European as well as former US government officials at how the United Nations General Assembly vote went on Monday.

In something unprecedented while the Ukraine war has been on, now having reached the three-year mark, the United States voted alongside Russia to veto European attempts to strengthen language related to a resolution on the conflict's anniversary.

In total 18 countries voted against the Ukrainian-drafted resolution at the UN General Assembly that condemned Moscow and called for a Russian withdrawal from Ukraine.

Via Associated Press

Many observers thought the US would at least simply abstain; instead it opposed the motions alongside nations like Russia, Israel, North Korea, Sudan, Belarus, and Hungary.

The European-backed resolution, which was ultimately adopted with 93 votes in favor, expressed "concern over the ongoing full-scale invasion of Ukraine by the Russian Federation," and underscored its "devastating and long-lasting consequences for Ukraine, regional stability, and global security."

It urged "de-escalation, an immediate ceasefire, and a peaceful resolution to the conflict" while demanding Russia’s "complete and unconditional withdrawal" from Ukrainian territory.

The explanation of US Ambassador to the UN Dorothy Shea was very revealing, and marks a significant shift in perspective compared to the prior Biden admin. As journalist and war observer Dave DeCamp explains:

In remarks to the UN, US Ambassador Dorothy Shea referred to Russia’s invasion of Ukraine as an “escalation of the Russia-Ukraine war” and said the conflict started “11 years ago,” referring to the war that broke out in Ukraine following the US-backed coup in 2014 that ousted former President Viktor Yanukovych.

The language from Shea marks a significant shift from the Biden administration, which always referred to the war as an “unprovoked” Russian invasion despite the history of US and NATO involvement in Ukraine.

Shea said that the many UN resolutions that have demanded a Russian withdrawal from Ukraine have failed to end the conflict. “Since the start of the war 11 years ago, the United Nations has repeatedly condemned Russia’s blatant violations of the UN Charter. Multiple resolutions of the General Assembly have demanded that Russia withdraw its forces from Ukraine,” she said.

“Those resolutions have failed to stop the war. It has now dragged on for far too long, and at far too terrible a cost to the people in Ukraine, in Russia, and beyond,” Shea added.

The White House position appears to be less concerned with endlessly wrangling over blame, and more with finding a peaceful solution to the conflict. 

"Generations of Ukrainians and Russians have died unnecessarily as the war has brought the world closer to a nuclear confrontation," Amb. Shea continued. "The longer it continues, the greater the suffering for both nations. This war must end now."

Several reports have in the wake of the vote collected quotes expressing outrage over the "shameful" vote...

• Former Belgian Prime Minister Guy Verhofstadt described it on X, formerly Twitter, as a "shameful moment in US history."
• Former U.S. Ambassador to Russia Michael McFaul was among those who condemned the American vote as "one of the most shocking foreign policy events of my lifetime."
• Another former diplomat, Steven Pifer, ex-U.S. envoy to Kyiv, posted on X: "how appalling was US vote on UN resolution on just, lasting peace to settle Russia Ukraine war?"
• Republican Senator John Curtis (R-UT) said on X that he was "deeply troubled by the vote at the UN today which put us on the same side as Russia and North Korea."
• Former U.N. Ambassador Nikki Haley did not criticize the U.S. vote directly but posted on X that "we must choose a side, and it should never be the side of dictators."

But in the end, as the Trump administration tries to pursue a truce deal in Eastern Europe, the US had simply introduced its own resolution at the UNGA that called for peace in Ukraine, but the whole showdown and divide resulted after European countries added an amendment that inserted anti-Russian language.

Tyler Durden Tue, 02/25/2025 - 22:10

Iraq Warns Of Resurgent ISIS Cells All Over Syrian Desert

Via The Cradle

The head of Iraq's National Intelligence Service, Hamid al-Shatri, stated on Monday that Baghdad sent direct messages to Damascus about security threats posed to Iraq by ISIS cells in the Syrian desert regions.

During a session of the Baghdad Dialogue conference on Monday, Shatri stated that "The recent events in Syria represent a turning point in the region," expressing his hope that "this will contribute to enhancing stability, despite some concerns related to the presence of armed groups and places of conflict in the region."

In December, militants from Hayat Tahrir al-Sham (HTS), an ISIS offshoot, took power in Damascus, toppling the government of former Syrian president Bashar al-Assad after 14 years of war. HTS leader Ahmad al-Sharaa (also known as Abu Mohammad al-Julani), a former deputy to deceased ISIS leader Abu Bakr al-Baghdadi, appointed himself president of Syria last month.

AFP via Getty images

Shatri added that "Iraqi and Syrian arenas are closely interconnected, and what is happening in Syria directly affects Iraq, and vice versa, and Iraq has sent clear security messages to Syria about the threats posed by some extremist groups, as Iraq has been harmed in the past period by sending suicide bombers and narcotics across the border."

Shatri explained that "Iraq attaches special importance to the issue of fighting the terrorist ISIS gangs, as there are still cells affiliated with these gangs in areas such as the desert of Homs and the Levant."

He pointed out that there are about 30,000 displaced people in Syrian camps from 60 nationalities, in addition to 9,000 ISIS members detained in prisons under the control of the Kurdish-led Syrian Democratic Forces (SDF) in the country's northeastern Hasakah Governorate.

Among these are 2,000 Iraqis. "We want to know how the new Syrian administration will deal with this file," Shatri stated. He also expressed his concern about the weapons that were seized by some armed groups, including ISIS, after the fall of Assad's government.

Shatri stressed that "Iraq continues to send messages and communicate with the Syrian leadership to achieve positive results, and there is interaction with it."

In recent months, Iraq has been repatriating its citizens held in prisons in Hasakeh, including Al-Hol camp, where many family members of ISIS militants have been detained for years.

On February 11, Qasim al-Araji, Iraq's National Security advisor, affirmed that "Al-Hol camp must be emptied." In January, the Iraqi parliament passed a controversial amnesty law that could lead to the release of thousands of prisoners who fought for Al-Qaeda and ISIS between 2004 and 2018.

A copy of the law seen by Reuters shows that those found guilty of terrorism can request a retrial if they allege a confession was extracted under duress.

Sunni blocs in the Iraqi parliament have been pushing for the law as many of those in prison on such charges are Sunni Muslims. Sunni lawmakers estimate that at least 30,000 Sunni prisoners will have the chance for a retrial, Reuters added.

The amnesty law has been sharply criticized by leaders of Iraq's Yezidi community, who fear the releases could help spark a new wave of violence against them.

If you know you know pic.twitter.com/fTIJxxj6b8

— Kevork Almassian (@KevorkAlmassian) February 24, 2025

In 2014, Iraqi Kurdish leader Masoud Barzani partnered with ISIS to carry out a genocide against the Yezidi religious minority in the Sinjar region of Iraq. Thousands of Yezidi men were massacred, while their women and young girls were taken as sex slaves by the extremist group. Hundreds of thousands were forcibly expelled from their homes and lands in Sinjar. Many continue to live in tents in refugee camps in the Iraqi Kurdistan region 10 years later.

Masoud Barzani and his Kurdistan Democratic Party (KDP) enjoy close relations with the US, Israel, and Turkey.

Tyler Durden Tue, 02/25/2025 - 21:45

House Passes GOP Budget Despite Mid-Day Revolt

Update (2040ET): House Republicans were finally able to pass Speaker Mike Johnson's (R-LA) budget bill Tuesday evening despite a mid-day revolt from conservative hardliners.

House Speaker Mike Johnson (R-LA)

Passing along party lines by a vote of 217-215 with the exception of Rep. Thomas Massie (R-KY) who voted no with the Democrats, the passage of the package was a key step to move President Trump's agenda forward, though there are still several hurdles to clear - primarily the Senate.

Going into the vote, GOP Reps. Massie, Spartz (R-IN), Davidson (OH), and Burchett (TN) were expected to be the final holdouts - however they all flipped to a yes except for Massie.

Trump also gave the vote an 11th hour boost, working the phones to convince the holdouts to flip.

The House's resolution lays out a $1.5 trillion floor for spending cuts across committees with a final target of $2 trillion, as well as a $4.5 trillion ceiling on the deficit impact of any GOP plan to extend Trump's 2017 tax cuts, The Hill reports. It also includes $300 billion in additional spending on the border and defense, as well as a $4 trillion debt limit increase.

In addition to the fiscal conservative holdouts, GOP leaders also had to win over moderates concerned about potential cuts to Medicaid in the ultimate Trump agenda bill. The resolution directs the Energy and Commerce Committee — which has jurisdiction over Medicaid — to find at least $880 billion in cuts, a figure that some lawmakers said could not be reached without significant slashes to the social safety net program. -The Hill

Now, of course, the House must reconcile with the Senate - which passed its own budget resolution last week using a different strategy.

*  *  *

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House Republicans took a major step toward enacting former President Donald Trump’s policy vision on Tuesday, advancing a budget resolution that could set the stage for a high-stakes showdown within the GOP. But with hardline conservatives digging in their heels, the bill’s fate remains uncertain.

In a narrow 217-211 vote along party lines, the House approved the procedural rule for the budget resolution, clearing the way for a final vote. The GOP’s spending blueprint aims to push Trump’s domestic agenda—border security funding, energy policy shifts, and tax cuts—through Congress.

But the measure is hanging by a thread, as a group of conservative deficit hawks is refusing to budge. Speaker Mike Johnson (R-LA) acknowledged the uncertainty, telling reporters, “There may be a vote tonight, may not be. Stay tuned.”

Rebel Republicans Threaten to Tank Budget

At least four GOP lawmakers—Reps. Thomas Massie (KY), Victoria Spartz (IN), Warren Davidson (OH), and Tim Burchett (TN)—have vowed to oppose the final resolution, enough to sink the measure unless Johnson can win over last-minute holdouts.

Massie, an outspoken budget hawk, didn’t mince words. “I was a lean no before this meeting, now I’m a no,” he told reporters Tuesday, slamming the budget’s spending numbers as reckless.

“If the Republican plan passes under the rosiest assumptions, which aren’t even true, we’re gonna add $328 billion to the deficit this year, we’re gonna add $295 billion to the deficit the year after that, and $242 billion to the deficit after that, under the rosiest assumptions” Massie warned, adding “Why would I vote for that?”

With the GOP’s razor-thin House majority, Republicans can only afford to lose one of their own votes if Democrats remain united in opposition. That slim margin is making Johnson’s job even tougher as he tries to broker a compromise.

A Balancing Act Between Conservatives and Moderates

For weeks, GOP leadership has been wrangling members from both ends of the ideological spectrum. Conservative hardliners have been pushing for deeper spending cuts, while moderates are concerned about slashes to programs like Medicaid.

Some moderates, however, appear to be coming around. Rep. Juan Ciscomani (R-AZ), who had previously raised concerns, signaled on Tuesday that he was softening his stance. “I’m in a better place [than] where I was yesterday,” he told reporters after meeting with leadership.

The budget resolution sets a floor of $1.5 trillion in spending cuts, a target of $2 trillion in reductions, and a $4.5 trillion cap on the deficit impact of extending Trump’s 2017 tax cuts. It also carves out $300 billion for border security and defense, alongside a controversial $4 trillion increase in the debt limit.

Johnson and his leadership team have been scrambling to shore up support, but the opposition from Massie and other fiscal hawks presents a serious roadblock. If the measure fails, it would be another embarrassing setback for House Republicans, who have struggled to unite behind a cohesive spending strategy.

The House is scheduled to take a final vote on the budget resolution around 6 p.m. Tuesday - but that timeline is now in limbo. With tensions running high, all eyes are on whether Johnson can twist enough arms to push Trump’s budget vision through.

Stay tuned.

Tyler Durden Tue, 02/25/2025 - 20:38

US Invasion Of Canada? Chrystia Freeland Says As Prime Minister She Will Stop It

The political left, regardless of whatever country they are in, is notorious for creating emotional drama for the purposes of propaganda.  They are also notorious for accusing their ideological opponents of committing the exact kind of crimes they are actually guilty of.  Their fundamental strategy is to take the words of their opponents and twist them into a fantastical narrative of villainy.  Add a professional agitator personality like Donald Trump into the mix and you have a recipe for pearl clutching on an epic scale.  

Trump's calls for tariffs on Canada and Mexico have elicited a highly dramatic response, with both government's pretending as if the policy is an act of war.  Specifically, his prodding assertions that Canada should become the "51st state" have Canadian officials in an uproar.  

Podcaster Joe Rogan recently noted that when he asked Trump about the controversy, Trump stated that "It was a joke at first, and then he started to think it might be a good idea".  Whether one agrees with this or not, anyone with any sense understands that it's highly unlikely for a number of reasons that Canada will ever become part of the United States.  It is fun to play with the premise, though.

For Canadian leftists the idea is not a joke.  They are treating it as a precursor to US invasion.  

Chrystia Freeland, a Canadian MP, Deputy Prime Minister and a member of the World Economic Forum's Board of Trustees, is running with the manufactured outrage.  Freeland announced her candidacy for Prime Minister this week and defined her campaign platform almost exclusively as an anti-Trump platform.  She claims that her run as PM was inspired by fears that Donald Trump intends to "invade Canada", a threat she intends to courageously stand against.

"I met a little 4 year old girl, she asked me, whether if I could prevent Trump from invading our country. And that's why I'm standing to be the Liberal Party leader, and to become the next Prime Minister of Canada."

Chrystia Freeland's opening statement at the French debate. pic.twitter.com/xu4wqDYph9

— Rebel News (@RebelNewsOnline) February 25, 2025

First and foremost, whenever leftist candidates conjure a story from thin air they often claim an "innocent child asked them a frightening question" which inspired them to take action.  In all likelihood the four-year-old girl Freeland talks about doesn't exist other than in her own mind.  Second, Freeland is jousting at windmills because no one in the Trump Administration has suggested such an invasion.  

President Donald Trump’s national security adviser Mike Waltz told NBC News’ “Meet the Press” he doesn’t think the president has “any plans to invade Canada.”  His remarks follow multiple reports that Canadian Prime Minister Justin Trudeau told a closed-door meeting of business leaders last week that the Trump administration “keeps talking about absorbing us and making us the 51st state.” 

Freeland says Trump represents 'the greatest threat to Canada since WWII'.  Oddly, Freeland's own family was a part of that threat.  Her Grandfather on her mother's side, Michael Chomiak, was a Ukrainian Nazi collaborator who ran a propaganda newspaper called Krakivski Visti.  

The Ukraine Archival Records held by the Province of Alberta has a large file on Chomiak, including his own details about his days editing the newspaper Krakivski Visti. Chomiak noted he edited the paper first in Crakow (Cracow), Poland and then in Vienna. The reason he edited the paper in Vienna was because he had to flee with his Nazis colleagues as the Russians advanced into Poland.   

Globe and Mail reported that, “Foreign Affairs Minister Chrystia Freeland knew for more than two decades that her maternal Ukrainian grandfather was the chief editor of a Nazi newspaper.”  Despite this fact, she has often cited her grandfather as inspiration for her political career.  Freeland has been called out on multiple occasions for revising her family history and painting her grandfather as a "refugee fleeing the Nazis".  The information on her grandfather was initially labeled "Russian disinformation", but it turned out to be true.

Freeland is not necessarily culpable for the actions of her ancestors, but as a close member of the authoritarian Davos crowd within the WEF, it looks like Freeland is making her Nazi grandfather proud.  Freeland argued during the Liberal leadership French Debate that free speech similar to that in the US should not be tolerated when it comes to negative views on open immigration.

"We can't allow the kinds of comments about immigrants that we're hearing coming out the U.S. at the moment. We can't have that in Canada." Chrystia Freeland at the Liberal leadership French Debate. pic.twitter.com/VcRdRNSulb

— Rebel News (@RebelNewsOnline) February 25, 2025

It should also be noted that Freeland was a rabid supporter of draconian forced vaccination mandates during the pandemic scare in Canada.  It would seem that Canadian citizens have a lot more to fear from Chrystia Freeland as PM than they do from Donald Trump.           

Tyler Durden Tue, 02/25/2025 - 20:30

From Brain Fog To Allergies: The Health Risks Of Mold and How To Tackle It

Au thored by JoJo Novaes and Connie Lai via The Epoch Times (emphasis ours),

Mold is more than just an aesthetic problem in a home; it can also pose a threat to your health. Exposure to mold has been linked to conditions, including allergic rhinitis, asthma, and even cognitive issues like brain fog.

Yury Nikolaev/Shutterstock

In the “Health 1+1” program, Shao-Hung Wang, professor and chair of the Microbiology, Immunology, and Biopharmaceuticals Department at National Chiayi University in Taiwan, discussed the increasing number of mold-related poisoning incidents in recent years. He cited the 2004 contamination of Pedigree dog food, which led to kidney failure in approximately 6,000 dogs in Taiwan alone. More recently, in March of last year, toxic puberulic acid was found in red yeast rice supplements from Japan’s Kobayashi Pharmaceutical, a drug-maker company, resulting in over 100 deaths.

During the program, Wang outlined effective strategies for mold prevention and removal, including essential cleaning products to help keep it at bay.

Health Risks of Indoor Mold

Beyond foodborne mold poisoning, indoor mold contamination is also a serious concern.

In damp environments, mold toxins can trigger allergic reactions and, in some cases, even severe asthma symptoms, Wang noted. He cited a 2023 review indicating that in old, moisture-prone buildings, mold growing on structures can release mycotoxins into the air. These airborne toxins, or bioaerosols, can be unknowingly inhaled by residents, leading to various health issues.

A recent review in the journal Toxicology found that exposure to environmental mycotoxins may compromise the blood-brain barrier, allowing these toxins to enter the central nervous system. This disruption can potentially trigger oxidative stress and neuroinflammation, both of which are linked to an increased risk of Alzheimer’s disease.

Common Mold Habitats in Your Home

Mold thrives in damp, humid environments where nutrients are readily available, making certain areas of the home particularly susceptible, Wang noted.

Bathrooms and Kitchens

Bathrooms and kitchens are particularly susceptible to mold, especially on silicone sealants, countertops, and hard-to-reach areas.

These spaces tend to have high humidity, and organic matter—such as soap residue from bathing or food scraps in the kitchen—can serve as nutrients for mold growth.

Furniture and Wall Crevices

Mold can also form on furniture, walls, and ceilings.

For example, the paint or varnish on wooden wardrobes may provide nutrients for mold. In humid, poorly ventilated conditions, mold spots often appear behind closets or in corners.

Mold also tends to grow in hidden areas, sometimes producing a musty odor even when no visible mold is present.

Basements

Poor ventilation in basements makes them prone to moisture buildup, creating ideal conditions for mold growth—especially on wooden wall panels.

Potted Plants and Drip Trays

The soil in potted plants and the water collected in drip trays are also common breeding grounds for mold.

Wang recommends placing plants in sunlight regularly and replacing soil immediately if mold appears.

Household Appliances

• Air Conditioners: Air conditioners tend to accumulate moisture, while indoor air contains skin flakes that serve as nutrients for mold.
• Washing Machines: Constant exposure to water makes washing machines prone to mold growth. Wang recommends having them professionally inspected at least once a year and periodically using mold removers to clean the interior.
• Dishwashers and Dryers: While high temperatures during washing and drying may help, they are not always sufficient to eliminate mold and spores completely. Mold can persist, particularly on rubber seals that do not come into direct contact with heat.

When drying clothes, Wang suggests using anti-static dryer sheets or wool dryer balls, as static electricity can attract mycotoxins. Whenever possible, let clothes dry in the sun after machine drying— this helps reduce static while breaking down particles that may contain fungal toxins.

Preventing Mold Growth

A musty smell in a room is a key indicator of excessive humidity.

A 2024 study showed that increasing air circulation promotes evaporation, helping to keep indoor surfaces like tiles dry. This prevents mold spores from germinating and inhibits mold growth.

In addition to ensuring proper ventilation, using a dehumidifier is essential when relative humidity exceeds 60 percent. Pairing it with an air purifier can further help remove fungal spores, mold fragments, and mycotoxins from the environment.

Safe Mold Removal Methods

If mold develops on walls or silicone surfaces at home, a variety of commercial mold removers are available in spray and foam form. However, Wang cautioned against mixing mold removers with other cleaning or disinfecting agents, as this may trigger harmful chemical reactions. If a mold remover is unavailable, bleach can be used as an alternative.

Step-by-Step Instructions for Bleach Solution:

1. Dilute bleach at a 1:100 ratio with water.
2. Soak a paper towel in the solution and place it over the mold-affected area.
3. Let it sit for one to three hours.
4. Scrub the area with a sponge or scouring pad.

For severe mold growth, use a higher concentration of bleach at a 1:10 ratio. However, when applying a high-concentration solution, be sure to leave the room to avoid inhaling fumes that can irritate the respiratory tract.

Tyler Durden Tue, 02/25/2025 - 20:05

Fear Of Trump Led To The Release Of Hostages In Gaza: Waltz

The phase one of the Israel-Hamas ceasefire and hostage/prisoner exchange deal has held through multiple rounds of captive releases. US National Security Advisor Mike Walz, after six Israelis were recently freed on Saturday, has said it was Hamas' fear of Trump that made this possible.

"Hamas is listening to the president ... 29 hostages are alive today and reunited with their families because the whole world listened when President Trump said there would be all hell to pay after the Biden administration couldn't get this done for 15 months," Waltz told "Fox & Friends" on Monday.

The timeline of the deal seems to back this assessment - that indeed it was anticipation the Trump presidency would push the deal over the line. That deal had been agreed to on January 19, 2025 - literally the day before Trump was inaugurated.

Via Associated Press

"The needle we are trying to thread now is getting all our hostages out. At the same time though, Hamas will not rule Gaza. Period," Walz continued in his comments. "They have a couple of off-ramps that we put on the table, but Hamas will not rule Gaza. They will not cause another Oct. 7. And we will work with Israel to make sure that doesn't happen."

Both sides have lately warned the ceasefire's collapse could be imminent, especially given that Hamas has released nearly all the hostages on a stage and 'graduation' of sorts complete with propaganda posters denouncing Netanyahu and 'Zionist terrorism'...

"Israel will not overlook the inhumane, degrading ceremonies that humiliate our hostages for propaganda," Israeli government spokesman David Mencer said at a press briefing.

Israel has delayed release of all Palestinian prisoners agreed to, but hundreds have been transferred, amid Palestinians celebrations especially in the West Bank.

At the same time, Israeli forces have ramped up West Bank operations, which has included the escalation of sending tanks into some refugee camps. This comes after several attempted bus bombings over the weekend.

Spokesman for Hamas' political bureau Basem Naim days ago described, "Unfortunately, Netanyahu and his government have been rejecting to engage with the second phase while only one week is left from the first phase. We believe that again, these are dirty games from the right-wing government to sabotage and undermine the deal and to send a message of willingness to go back to war."

It's anything but certain whether the truce will hold into phase two and phase three, the details of which have yet to be fully defined or publicized. 

Tyler Durden Tue, 02/25/2025 - 19:40

1 Million Federal Workers Responded To Musk's Mass Email Asking To List Accomplishments

Authored by Jack Phillips via The Epoch Times,

The White House on Tuesday said that 1 million federal employees responded to a mass email from the Office of Personnel Management (OPM) asking them to list five things they had accomplished in the past week.

“We’ve had more than one million workers who have chosen to participate. ... I actually participated in it myself. It took me about a minute and a half,” White House press secretary Karoline Leavitt said in response to a reporter’s question about the OPM email deadline, describing what was asked in the email as something “very simple” that can be accomplished in a few minutes.

Leavitt confirmed that the email was an idea from Elon Musk and that the Department of Government Efficiency (DOGE), which he leads, helped OPM craft the email. She also said that federal workers need to respond to this email unless told otherwise by their agency heads.

However, agency leaders “are responsible for their specific workforce,” Leavitt said. “This is true of the hirings and firings that have taken place.”

The email drew a lawsuit from unions, businesses, veterans, and conservation organizations, arguing Musk had violated the law by threatening mass firings in a social media post referencing the OPM email. Meanwhile, OPM told agencies that employees are not mandated to respond to the email.

Over the weekend, Musk signaled that people who don’t respond to the mass email would be considered to have resigned from their jobs.

Musk wrote on Saturday on social media platform X that “all federal employees will shortly receive an email requesting to understand what they got done last week,” and that “failure to respond will be taken as a resignation.”

He later said that the email was designed to determine whether certain employees are even working, adding that he believes fraud is rampant.

“In some cases, we believe non-existent people or the identities of dead people are being used to collect paychecks,” he stated.

“In other words, there is outright fraud.”

The OPM sent out its email request afterward.

“Please reply to this email with approx. 5 bullets of what you accomplished last week and cc your manager,” the message said.

However, it said nothing about the potential for employees to be fired for noncompliance.

One Million Workers Responded to Musk Email, Leavitt Says

So 2 million govt workers don't exist/don't know how to check email/can't be bothered to write a 5 minute email?

— zerohedge (@zerohedge) February 25, 2025

Musk on Monday balked at the pushback, saying federal workers “hate even the tiniest amount of accountability” and continued to warn they could be fired.

“Subject to the discretion of the President, they will be given another chance,” he wrote on X, which he owns.

“Failure to respond a second time will result in termination.”

When asked on Monday about Musk’s comments and the email, President Donald Trump indicated that he was supportive of the effort.

“What he’s doing is saying, ‘Are you actually working?’” Trump told reporters in the Oval Office during a meeting with French President Emmanuel Macron. 

“And then, if you don’t answer, like, you’re sort of semi-fired or you’re fired, because a lot of people aren’t answering because they don’t even exist.”

The president said Musk and DOGE have found “hundreds of billions of dollars in fraud,” suggesting that federal paychecks are going to nonexistent employees.

Musk’s posts on X and the OPM email came shortly after Trump wrote on social media on Saturday that he wants Musk to “get more aggressive” in his efforts to downsize the federal workforce and eliminate fraud, abuse, and waste.

Tyler Durden Tue, 02/25/2025 - 19:15

"Hold An Election": Musk Blasts Ukrainian Parliament Vote Affirming No Elections, Hailing Zelensky's 'Legitimacy'

On Tuesday Ukraine's parliament passed a resolution extending the mandate of President Volodymyr Zelensky until martial law is lifted. It comes amid growing pressure from Washington for the country to prepare for and hold a national election.

The vote reached the necessary majority, with 268 members voting in support of the resolution, with no abstentions or votes against, according to a statement by parliament deputy Yaroslav Zheleznyak. Several parliament members were absent, however.

"The Verkhovna Rada once again recalls that the President of Ukraine Volodymyr Zelensky was elected in free, transparent, democratic elections. His mandate is not called into question by the Ukrainian people or the Verkhovna Rada," the resolution read, which was intended as clear pushback against Trump. Zelensky's 'legitimacy' is also being declared in the vote.

Via Reuters

President Trump shocked allies last week by calling Zelensky a "dictator without elections" who has refused to conform to democratic norms.

Interestingly, there was more resistance when a first-round vote was held Monday - suggesting things aren't so unanimous. According to a regional source, "The Verkhovna Rada first put the resolution to the vote on Monday, the third anniversary of the start of the war, when it was supported by 218 deputies, short of the required minimum of 226 votes for a vote to pass."

Zelensky has consistently argue country can't hold elections as martial law is still in effect, amid growing criticism that he's conspiring to merely stay in power. His term expired in May 2024, but he recently asserted, "I’m focusing on the survival of our country, and I am doing it really all my term."

"I’m ready to speak about elections if you want," he said, claiming that "Ukrainians don’t want, totally don’t want, because they are afraid, because otherwise we will lose the military loan, the war loan, our soldiers will come back home, and Putin will occupy all our territory."

Elon Musk among others begs to differ. He wrote on X in response to Tuesday's vote: "Hold an election".

Hold an election

— Elon Musk (@elonmusk) February 25, 2025

Last week, in addition to calling Zelensky a dictator, Trump wrote on Truth Social that Zelensky "better move fast" to achieve peace with Russia or "he is not going to have a country left."

On Sunday Zelensky actually floated the possibility of stepping down if it would lead to peace, but appeared to attach it to NATO membership. "I am ready to leave my post if it brings peace. Or exchange it for NATO," Zelensky said in response to journalists' questions at a local security summit.

Russia's Putin has meanwhile said he can't negotiate directly with Zelensky as he's 'illegitimate' and refuses to hold elections. Putin has also pointed to Zelensky effectively outlawing direct talks with Moscow.

Tyler Durden Tue, 02/25/2025 - 18:50

More Signs Of China's Decline

Authored by Milton Ezrati via The Epoch Times (emphasis ours),

More signs have emerged testifying to the severity of China’s financial woes. Local governments seem to have become so cash-strapped that they have resorted to paying their bills with unfinished and unbought apartments left by the nation’s ongoing property crisis.

A general view shows Evergrande residential buildings under construction in Guangzhou, in China's southern Guangdong Province, on July 18, 2022. Jade Gao/AFP via Getty Images

This kind of barter constitutes a slide back into the sort of primitive economics usually associated with third-world economies. It speaks to how far China has fallen and how much Beijing needs to do to get back on an acceptable development path.

The origins of these problems are reasonably straightforward and should be familiar to regular readers of this column. Beijing planted the seeds of this mess with years of excessive promotion for residential real estate development. In the early stages of China’s development, this emphasis was appropriate. Still, Beijing continued with easy financing terms and support from local governments for too long after the country had caught up with its housing needs.

Because of Beijing’s lavish support, developers could offer attractive deals to potential homebuyers, driving up purchases, while taking full advantage of the seemingly favorable situation by using debt to finance as much development as possible. At the same time, local governments, flush with revenues from booming land sales, also borrowed heavily to create as attractive a civic environment as possible.

At its height, real estate development in China rose to almost 25 percent of the economy. Since most developed economies seldom dedicate more than 5 percent of their gross domestic product to real estate development, the figure itself speaks to how far matters have gone.

In 2019, as Beijing’s planners began to realize how excessive residential development had become, they abruptly withdrew the earlier support. And since they gave little or no warning of the change, neither developers nor local governments had time to adjust.

Developers showed the damage first. They began to fail. The first signs of the unfolding disaster arrived in 2021 when the huge property developer Evergrande announced that it could not meet the equivalent of some $300 billion in obligations. A number of other such failures followed.

Not surprisingly, construction activity stalled, and so did the pace of homebuying. The financial system suffered from the volume of unpaid debt, especially since, at the same time as the developers were failing, Chinese households that had pre-purchased from property developers could no longer complete their payments and refused to fulfill their mortgage obligations. And because Beijing refused to implement policies to mitigate these financial strains, they only got worse.

As these problems festered, local governments, now denied most of the cash flow from land sales, found themselves unable to meet their obligations on the debts they had incurred during the boom years and also their civic obligations to their populations. Not only were lenders asked to wait, but local governments also held back on payments to contractors for all sorts of services, including utilities, garbage collection, street cleaning, and repair. In some cases, matters got so severe that civic employees—teachers, medical staff, police, and firefighters—had to wait for their pay.

In the absence of cash to pay their bills, developers and local governments have resorted to the only thing they have in abundance to pay their bills: unfinished and unoccupied apartments. Three examples should give a sense of what is happening.

Changji City, China, has discharged the equivalent of $25 million in unpaid gas bills to Xinjiang East Universe Gas with some 260 unfinished apartments in what was originally planned as a luxury housing development.

Shanghai Urban Architecture Design has taken 115 apartments to settle the equivalent of some $10 million it was due.

Police departments in China’s Dejiang, Yuping, and Sinan counties have settled the equivalent of some $10 million owed to a software developer with the transfer of apartments from a failed property developer.

Praise for imagination is due to these people. Still, their resort to what has effectively become a barter economy should give a sense of how severe China’s problems of economics and finance have become. Beijing might have headed these problems off by acting promptly at the first signs of failure, but as it was, the authorities took no action until late 2023, fully two years after Evergrande collapsed.

What they have done since has done little to arrest a crisis that has had so much time to build in the interim.

Views expressed in this article are opinions of the author and do not necessarily reflect the views of The Epoch Times or ZeroHedge.

Tyler Durden Tue, 02/25/2025 - 18:25

Massie Teases Senate Run - Jewish GOP Group Threatens 'Unlimited' Spending To Stop Him

Kentucky GOP Rep. Thomas Massie is teasing a potential run for Mitch McConnell's Senate seat in 2026, and a Jewish Republican group is already threatening to unleash "unlimited" spending to thwart any such bid, given his frequent opposition to legislation pushed by the pro-Israel lobby. 

On Thursday, Massie posted a poll on X, asking if he should stay in the House, run for Senate in 2026, or run for governor in 2027. A Senate campaign was the choice of 67% of the respondents.

If you were me, would you:

— Thomas Massie (@RepThomasMassie) February 20, 2025

The libertarian-minded Massie opposes all foreign aid. At his own political peril, he dares to make no exception for the State of Israel, which is among the world's richest countries. He has also voted against legislation that would infringe on free speech by, for example, punishing colleges that allow students and professors to say the wrong things about Israel.

Add it all up -- and stir in the fact that he's a member of a party whose legislators almost universally toe the pro-Israel line -- and Massie is likely the House representative the pro-Israel lobby would most like to eliminate. The idea of him ascending to the Senate has pro-Israel forces racing to DEFCON1. 

In March 2020, Massie explains his effort to prevent a massive Covid stimulus package from being adopted without a recorded vote (Susan Walsh-AP) 

“If Tom Massie chooses to enter the race for US Senate in Kentucky, the RJC campaign budget to ensure he is defeated will be unlimited,” warned Republican Jewish Coalition CEO Matt Brooks in a statement to Jewish Insider. The Republican Jewish Coalition has tried to defeat Massie before. In 2020, the RJC backed Republican Todd McMurtry in challenging Massie in the GOP primary -- only to see Massie trounce McMurtry in an 81% to 19% rout. 

So intense is their opposition to Massie that last year, pro-Israel forces starting preemptively spending money to weaken Massie's Senate prospects. Despite the fact that Massie faced no viable GOP opponent nor any Democrat opponent at all, the intentionally-vaguely-named United Democracy Project -- the independent campaign-spending arm of the mighty American Israel Public Affairs Committee (AIPAC) -- said it would spend $300,000 on ads on Fox television affiliates in Kentucky. "We are trying to shine a light on the radical anti-Israel record of Tom Massie," said spokesman Patrick Dorton. "We want every single voter in the state of Kentucky to know about his anti-Israel actions."  Here's their over-the-top ad: 

https://t.co/hEJYFaBcPp pic.twitter.com/yoIdIg0pEX

— United Democracy Project (@UnitedDemocProj) May 9, 2024

In a direct challenge to the Israel lobby, Massie has pushed for the Department of Justice to compel AIPAC and its associates to register under the Foreign Agents Registration Act, a law that requires individuals and organizations that work to advance the policies of foreign governments to disclose their relationships, actions and compensation. 

Thomas Massie has publicly stated that every Republican member of Congress, except himself, has an "AIPAC babysitter" to ensure they vote in line with the American Israel Public Affairs Committee's interests. pic.twitter.com/VHTWSRm8rZ

— Radical Subtard (@magasubtard) January 3, 2025

If Massie does run for Senate, spending by the RJC and other pro-Israel groups on the race could make it an extraordinarily pricy race. That dynamic was on display in the 2024 cycle: AIPAC successfully targeted incumbent Democratic New York Rep. Jamaal Bowman, and poured an astonishing $14 million into the race -- helping to make it the most expensive House primary contest ever.   

Within hours of Mitch McConnell's announcement that he would not run for re-election in 2026, former Kentucky attorney-general Daniel Cameron formally declared his candidacy. McConnell is considered a mentor to Cameron, making Cameron the establishment-designated heir apparent. Undeclared candidates who've signaled a strong interest in the seat include Kentucky Rep. Andy Barr and waste-and-recycling businessman Nate Morris. Last week at CPAC, Morris condemned both Cameron and Barr for "refus[ing] to call out Mitch McConnell for the sabotage of President Trump's agenda."   

Ma’am, you voted to send those bombs to Israel. https://t.co/N1g1bG7goE

— Thomas Massie (@RepThomasMassie) May 28, 2024

In a Monday interview with Ann Coulter, Massie used his characteristic dry wit to express a middling appetite for a Senate seat:

"It's the the same circus with different monkeys...Here's the good news: I'm not even in the race for Senate and the only poll that's been released shows me in second place." 

Massie was likely referring to a December poll that showed him with 16% support, second to Cameron's 32% but ahead of Barr's 10%. In the same interview, Massie said he consulted Grok about his choice: The X AI engine said a 2027 bid for Kentucky governor would be his best move. That may be best for Massie and his fellow Kentuckians, but it would remove one of the few truly principled voices from the federal legislature -- one who heeds George Washington's warning to avoid "passionate attachments" to any foreign countries, a failing that "facilitat[es] the illusion of an imaginary common interest in cases where no real common interest exists."

Tyler Durden Tue, 02/25/2025 - 18:00

New Jersey's E-ZPass Contract Raises Concerns About Potential China Ties, Lawmakers Say

Authored by Frank Fang and Eva Fu via The Epoch Times (emphasis ours),

Lawmakers have raised concerns about the New Jersey Turnpike Authority’s decision to award an 11-year E-ZPass contract to a Singaporean-owned company over its alleged ties to the Chinese Communist Party (CCP).

Rich Fischer enjoyed Shen Yun at the Kennedy Center Opera House in Washington on Feb. 23, 2025. Jenny Jing/The Epoch Times

“This is an issue that transcends politics, where we’re truly concerned for the deal and whether or not we can have safeguards to make sure that we were being properly protected,” state Sen. Joe Pennacchio, a Republican from Morris County, told The Epoch Times on Feb. 22.

In September 2024, the Turnpike Authority awarded the E-ZPass customer service operations to Nashville-based TransCore for $1.73 billion. TransCore beat out Conduent, based in Newark, New Jersey, and its more competitive bid of $1.48 billion. TransCore’s parent company, Singapore Technologies Engineering (STE), is owned by Temasek Holdings, which is wholly owned by Singapore’s government.

Earlier this month, Pennacchio wrote a letter to New Jersey Gov. Phil Murphy asking him to use his executive power to void the contract. He explained that Fu Chengyu—a former chairman of China’s state-owned oil companies and a high-ranking CCP member with ties to China’s influence network, the United Front Work Department—was a member of Temasek’s board of directors until recently.

“You have a foreign entity with a former member of the CCP who used to be on the board,” Pennacchio said. “So, I mean, that should be red flags.

“So that’s where we’re dependent on our own government to make sure that these deals that are going to happen are properly vetted, and they’ve gone through the proper circles of national defense, of Homeland Security, and ... the Treasury Department, making sure that our financial secrets are kept secret, not shared with other people.”

The senator said the E-ZPass system collects personal information such as driver’s license information, credit card numbers, and banking information, and can also track the movements of cargo and people.

Pennacchio questioned whether the deal was properly vetted during the Biden administration. He said he had received a response from Murphy directing him to reach out to the Turnpike Authority, but noted that the port agency had not conducted the vetting.

“The only thing that I was able to find through one of the news articles was that the U.S. Treasury Department vetted the company,” he said.

According to Pennacchio, it is important to make sure that Temasek will not use the collected personal information for nefarious means.

“We should have at least the Trump administration perhaps taking a second look and making sure that they’re comfortable ... that these people won’t share that information, and that there are no Chinese military or Chinese government ties to this organization,” he said.

Bipartisan Concern

The New Jersey E-ZPass is accepted by the transportation authorities of several regions, including the Port Authority of New York and New Jersey, the South Jersey Transportation Authority, the Delaware River Joint Toll Bridge Commission, and the Burlington County Bridge Commission.

The issue has drawn scrutiny from New Jersey lawmakers.

“China keeps trying to steal Americans’ data,” Rep. Josh Gottheimer (D-N.J.) wrote on social media platform X on Feb. 7. “Their newest target: Jersey families. We cannot allow our personal information and whereabouts to get into the hands of our number one adversary.”

Rep. Jeff Van Drew (R-N.J.) sent a letter to the Turnpike Authority’s Board of Commissioners on Feb. 5, calling their decision to award the contract to TransCore “misguided.”

“Handing over critical infrastructure operations to a company tied to China is reckless and unnecessary when American-based companies are fully capable of handling these services,” Van Drew said in a statement at the time. “The New Jersey Turnpike Authority must reconsider this contract immediately and put American interests first.”

In a Feb. 11 letter to Van Drew, TransCore stated that it “delivers the most secure toll systems” in the United States, given that its national security agreement with the U.S. Department of Justice would ensure that data collected by its tolling systems would not be accessible to or shared with any foreign entity or affiliate, including STE.

“There is no connection between TransCore, or its parent company ST Engineering (STE), with the Chinese Communist Party (CCP),” TransCore wrote. “Temasek, as a shareholder of STE, has no director appointed to the STE Board and has no role in STE’s business operations.”

Newark’s Conduent, which had the E-ZPass contract for eight years, filed a protest with the Turnpike Authority in October 2024.

“There is no justification for awarding TransCore a contract that is over $251 million more than what Conduent offered,” the appeal document stated.

In response to The Epoch Times’ inquiry, Sean Collins, vice president of external communications and analyst and adviser relations at Conduent, stated that in TransCore’s letter to Van Drew, the company failed to address Temasek’s role or mention that a high-ranking CCP member was a former chairman.

“The response portrayed Temasek as merely one of many shareholders, rather than acknowledging it as the majority and controlling shareholder that consented to Singapore Technologies’ acquisition of TransCore,” Collins said. “Importantly, TransCore failed to comply with the statutorily required ownership disclosure requirement in its proposal.

“Conduent’s proposal also provides for immediate implementation of AI-powered customer experience technologies, high-quality services, and more customer service agents—all without the substantial risks and delays of converting to a new vendor.”

Tyler Durden Tue, 02/25/2025 - 17:00

iPhone's Voice-To-Text Feature Suffers From "Trump Derangement Syndrome"

The iPhone's voice-to-text feature appears to be suffering from a bad case of "Trump Derangement Syndrome."

If a user repeatedly says "racist," the next word generated is "Trump." We independently verified this anti-Trump behavior, which seems to reflect far-left subliminal propaganda.

'SIRI'OUS PROBLEM: iPhone's voice-to-text feature is sparking controversy after a viral TikTok video showed a user speaking the word "racist," which sometimes appeared as "Trump" before switching back to "racist." pic.twitter.com/bC3mAeS9kM

— Fox News (@FoxNews) February 25, 2025

"We are aware of an issue with the speech recognition model that powers Dictation, and we are rolling out a fix as soon as possible," an Apple spokesperson told Fox News Digital.

JUST IN: Apple says it is "addressing the issue" as iPhone's voice-to-text feature periodically shows "Trump" whenever a user says "racist."

"We are aware of an issue with the speech recognition model that powers Dictation, and we are rolling out a fix as soon as possible," an… pic.twitter.com/UVQfzLOKu0

— Kyle Becker (@kylenabecker) February 25, 2025

Similar subliminal propaganda was pushed by Amazon's Alexa virtual assistant ahead of the U.S. presidential elections last fall...

Amazon Admits Alexa's Wildly-Biased Treatment Of Trump, Harris Questions Was 'Error' https://t.co/oCbodR2cY1

— zerohedge (@zerohedge) September 4, 2024

Earlier today, Apple shareholders rejected eliminating toxic DEI policies despite a widespread rollback across corporate America, the federal government, and the military.

Apple did not specify a timeframe for the dictation feature fix but indicated it would be implemented as soon as possible.

Isn't it fascinating how technology sometimes mirrors the unconscious biases of its creators? Parts of Silicon Valley still seem out of touch, failing to recognize that the Overton Window shifted about a year ago.

Not all is bad with Apple...

Apple Goes MAGA: $500 Billion Investment Plan In America, 20,000 New Jobs https://t.co/zcAYiGKn50

— zerohedge (@zerohedge) February 24, 2025. . .

It's time for Trump to have another talk with Cook.  

Tyler Durden Tue, 02/25/2025 - 16:40

EV Chargers At Federal Buildings Set To Go Dark

The federal agency responsible for overseeing government-owned buildings has directed all properties under its management to shut down electric vehicle charging stations.

Bloomberg reported that the General Services Administration, which oversees hundreds of EV chargers nationwide at federal buildings—currently operating 8,000 plugs with plans to expand rapidly in the coming years—recently sent an email outlining the plan to shut down the chargers. The Verge first reported the development last week.

"As GSA has worked to align with the current administration, we have received direction that all GSA-owned charging stations are not mission-critical," the email reads, adding, "Neither Government Owned Vehicles nor Privately Owned Vehicles will be able to charge at these charging stations once they're out of service." 

Colorado Public Radio reported last week that GSA's Denver office will begin turning off charges at federal buildings in the coming weeks. 

A source told The Verge that, in addition to shutting EV charging stations, the GSA will also begin offloading the EVs it purchased under the Biden administration. 

The Verge noted, "Former President Joe Biden's signature climate legislation, the Inflation Reduction Act, included $975 million for the GSA to upgrade federal buildings across the country" with EV chargers. The goal was to achieve net zero by 2045. 

The Trump administration has stated in an executive order to "terminate" the Green New Deal ... and for all agencies to pause "the disbursement of funds appropriated through the Inflation Reduction Act of 2022 (Public Law 117-169) or the Infrastructure Investment and Jobs Act (Public Law 117-58), including but not limited to funds for electric vehicle charging stations made available through the National Electric Vehicle Infrastructure Formula Program and the Charging and Fueling Infrastructure Discretionary Grant Program..." 

This month, the Department of Transportation's Federal Highway Administration ended a $5 billion program that helped states build EV charging stations along US highways. 

We feel this is a smart move that stops the inefficient federal government from expanding its EV charging infrastructure plan. GSA's chargers were likely costing taxpayers a fortune without any clear ROI. 

Last month, Goldman's Thomas Evans told clients that its trading desk views Trump's actions as "bearish for the US EV market specifically."

If the marketplace needs chargers - let the private sector do the buildout - not corrupt DC swamp.  

Tyler Durden Tue, 02/25/2025 - 15:40

The Core And Curse Of DOGE

Via SchiffGold.com,

Every election Americans have been desensitized to claims of cutting spending and somehow getting everything they want at the same time. 

We expect that candidates will say we can have it all. 

We hypothetically know that cutting spending and government waste are good things, but they always take second priority to whatever urgent situation or desires we face. 

The Department of Government Efficiency takes a radically new approach to this problem of motivation and has created a new means for waste to be cut. It is important to not disregard the fact that there have been many government oversight organizations with the sole purpose of focusing on fraud and waste. DOGE has begun their own efforts of documenting waste and directly cutting excess spending, but they do not seek to undercut previous attempts. DOGE has an ability to act that has not been matched by other waste-cutting agencies.

While the goal of cutting spending is undoubtedly good and we are in a situation of spending crisis, DOGE’s unorthodox methods may set a dangerous precedent for future administrations. It serves as an all purpose task force for the president to enforce his will and identify weaknesses in government spending. While past presidents have been frustrated about being stonewalled by various bureaucrats, DOGE creates an embedded network of control that makes the president’s proclamations much more effectual. While even the left appreciates cutting waste in theory, it is easy to see how such a vital approach to government could be harmful in the future. In the past, layers of inefficiency protected us from radical policies and made systemic change slow. There is no guarantee that a DOGE-type force will only be applied to cutting waste. Even DOGE’s current actions may suggest motives that are less than wholesome. Musk made sure to first attack USAID, which had recently scrutinized him for overcharging the government for Starlink he claimed he would donate. With such an atypical and unsteady start, in the future it could be used to enforce radical social policies or even set the undergirding for a military takeover. DOGE’s effectiveness is the center of its danger.

While there are dangers to be wary of, DOGE could provide a much needed reset for government waste and set the standard for fulfilling campaign promises. It often feels like once elected, presidents have their hands tied and are unable to be judged on the merits of their actions because what happens cannot truly be said to be “them.” This lack of responsibility means that the public is unsatisfied and few things actually happen in a powerful enough way that the citizen can see or feel them. The cutting of DOGE will most likely undo bureaucracies that took decades to establish, creating a new normal that will benefit even the most democratic of presidents. If this process was going through Congress, it would be impossible to make real change in four years. Our debt and interest payments are unsustainable and require this sort of radical action if our country is to continue sustaining itself rather than sinking deeper into destruction through indulgence. 

Critics and supporters of DOGE are quick to point out its unfettered nature. 

The critics are hesitant of its freedom from Congress and point out that it seems dangerously near an oligarchy. Supporters see it’s unfettered nature as necessary to compete with the droves of unelected officials and agencies relatively free from Congress. 

Countless agencies existing outside of congressional concern and control make it nearly impossible for Congress to understand what they are doing, or even which pathways they must use to rein them in. 

DOGE is a good solution to the fact that Congress will never have the bandwidth to understand the minutiae of waste and fraud occurring in the federal government. 

Additionally, much waste and lack of oversight has simple and truly bipartisan solutions. For example, the treasury not having to state what their specific payments were for should be questioned by anyone. This small administrative detail would have never been brought up in congress, but it will ultimately return so much accountability to the American people. If agencies have been able to deny the public the ability to see what’s going on, the public cannot vote accurately. 

The freedom of DOGE is necessary to restore faith in the government and make a new standard of transparency. 

Even if they overstep and do things that Congress should be responsible for, let this article’s point stand: we need more transparency and active cost cutting urgently or this country will pay for its nonchalant attitude towards responsibility. 

Tyler Durden Tue, 02/25/2025 - 15:20

Tesla Sales Fall 45% Across Europe, As Buyers Respond To Musk's Move To Politics

Tesla Inc.’s European sales plummeted 45% in January, with just 9,945 registrations, down from 18,161 a year ago, according to the European Automobile Manufacturers’ Association and Bloomberg.

At the same time, overall EV sales surged 37%, with rival carmakers making strong gains in Germany and the UK.

In the UK, Tesla trailed China’s BYD for the first time, with sales falling nearly 8% in a market that grew 42%.

Tesla is overhauling production lines for its top-selling Model Y SUV while its CEO, Elon Musk, grows more politically divisive.

The Bloomberg report says that a YouGov poll in mid-January found Musk viewed unfavorably in Germany and the UK, where his political involvement was largely unwelcome. On Jan. 9, he hosted Alternative for Germany leader Alice Weidel on his platform X, backing the anti-immigration, pro-Russian party, which finished second in this week’s election.

After backing Donald Trump in the U.S. election cycle, Musk has turned to Europe, supporting far-right parties and criticizing incumbents. He has also joined Trump in attacking Ukraine’s President Zelenskiy, despite polls showing continued domestic support for the leader.

At an AfD rally in January, Musk urged Germans to embrace their culture and downplay historical guilt, a remark that sparked controversy ahead of the 80th anniversary of Auschwitz’s liberation. He also called for UK Prime Minister Keir Starmer’s imprisonment while advocating for jailed far-right activists.

Meanwhile, Tesla likely faced inventory shortages after an end-of-year sales push, compounded by Model Y assembly line changes. CFO Vaibhav Taneja warned that redesigning Tesla’s best-selling model would cause weeks of lost production.

Competition in Europe is intensifying, with Volkswagen, Stellantis, and Renault under mounting pressure to sell more EVs. Stricter EU emissions targets and the UK’s ramp-up to zero-emission sales by 2035 add to the challenge.

Gordon Johnson of GLJ Research said in a note out Tuesday morning that Q1 is "shaping up as an absolute disaster of a delivery quarter".  

Johnson argues that Tesla's stock is poised to be one of the best short opportunities in 2025, citing a combination of business struggles and a lack of external factors that could artificially support the stock price. He believes Tesla faces a challenging year because it must finally deliver on promises related to its Full Self-Driving (FSD) technology and Optimus robot without any political or financial lifelines to prop up investor sentiment.

Johnson is particularly skeptical of Tesla's driverless technology, predicting that its rollout in June 2025 will either be a failure or face significant delays due to fundamental flaws in its camera-only approach. He insists that without LiDAR and radar, Tesla's system remains highly error-prone. Additionally, he criticizes the Optimus robot, arguing that it lags behind industry standards and is inferior even to robotics technology developed decades ago.

More importantly, he points to the deterioration of Tesla's core automotive business, which accounted for nearly 90% of its revenue in the fourth quarter of 2024, as a sign of deeper troubles. He asserts that Tesla's brand is losing its appeal globally, with many consumers viewing its vehicles negatively.

Tyler Durden Tue, 02/25/2025 - 15:00

Worried About Crypto And Its Connection To Markets?

Authored by Peter Tchir via Academy Securities,

I am focused on crypto and potential risk to stocks from further crypto declines.

A decent percentage of inflows into Bitcoin ETFs has occurred since the election and they are all underwater (see chart).

This is important because not only are the ETFs now linking stocks more closely to crypto, MSTR is in the Nasdaq 100 (only 0.4% weighting but in there).

MSTX is a double leveraged ETF on MSTR (representing almost 3% of the float). 

The single stock leveraged ETFs are not a product I understand the need for, but it can be dangerous on a big move to the downside.

MSTR trades at a significant premium to its value in Bitcoin.

I think the crypto world is more tied to equities than at any previous time and that is increasingly scary...

Between the ETFs and MSTR, we are seeing a lot more correlation and impact on daily trading.

We will see what the market cap for the two big stable coins USDT and USDC look like. 

They added over $40 billion since the election, which should have helped at the front of the yield curve.

I think, like many other things, and as mentioned in this weekend's T-Report – All Roads Lead to Mar-a-Lago, the Nasdaq 100 gets back to pre-election levels.

Finally, the "Mexico and Canada tariffs are still on" message from the president yesterday seemed odd and brings up my big concern of "re-trading" - making me more convinced that wherever we wind up in the end (and a lot of rosy scenarios are still in play), there is going to be a hiccup.

Extra finally, the rate move is concerning because it is now much more about de-risking and fears about the economy, than cuts to boost an otherwise ok economy. 

I now regret being bearish on treasuries, and think we might need to see 3 to 4 cuts this year, rather than the 2 priced in so far.

Working on more specifics, but the Citi Econ Surprise index tells a good enough (or bad enough) story for now!

Tyler Durden Tue, 02/25/2025 - 14:40

Stellar 5Y Auction Stops Through Amid Surge In Foreign Demand

After one of the strongest 2Y auction on record, the streak of strong coupon sales extended for a second day and despite the continued plunge in yields, which dipped well below 4.30% at one point in the day, today's sale of $70BN in 5Y paper was flawless, and almost as strong as yesterday's auction.

The auction stopped at a high yield of 4.123%, down 20bps from 4.330% last month and the lowest since Sept 24; it also stopped 1bps through the When Issued, the 4th consecutive stop through and the highest since December 2013.

The bid to cover was fractionally better than last month, but for some bizarre reason this metric has completely frozen for the 5Y tenor as you can see here, with the final print barely moving month after month:

• July 24: 2.40
• Aug 24: 2.41
• Sept 24: 2.38
• Oct 24: 2.39
• Nov 24: 2.43
• Dec 24: 2.40
• Jan 24: 2.40
• Feb 24: 2.42

Finally, the internals were stellar, and while not quite as stellar as yesterday's 2Y which saw record foreign demand, Indirects still surged from 62.8% to 74.9%, the highest since October 2024. And with Directs taking 14.5%, Dealers were left with 10.6%, the lowest since May 2024.

And yet, another stellar coupon auction and... the market barely noticed for the second day in a row, with yields having already tumbled more than 10bps on the day as a result of the ongoing retail liquidation which has hammered stocks and pushed capital into the "safety" of bonds, which will remain safe at least until the Trump admin realizes - and admits - that it is facing an even bigger debt avalanche in the next 4 years. But we'll cross that bridge in due course...

Tyler Durden Tue, 02/25/2025 - 13:41