Zero Hedge

Energy Secretary Wright Says U.S. Will Expand Uranium Reserve As Nuclear Enters "Rapid Growth" Phase

Energy Secretary Wright Says U.S. Will Expand Uranium Reserve As Nuclear Enters "Rapid Growth" Phase

Just moments after we noted UK Prime Minister Keir Starmer announcing a US-UK nuclear deal on Monday ahead of Donald Trump’s state visit, aiming to show "a golden age of nuclear", and about 3 weeks after we inconspicuously pointed out that Centrus Energy was getting extremely cozy with the Trump administration, the Trump administration’s top energy official today said the US should expand its strategic uranium reserve to reduce reliance on Russia and bolster confidence in nuclear power.

Energy Secretary Chris Wright, speaking in Vienna at the IAEA conference, noted Russia supplies about a quarter of the enriched uranium for America’s 94 reactors, which generate a fifth of US electricity. Cutting that supply “could endanger about 5% of electricity” without alternatives, according to Bloomberg.

“We’re moving to a place — and we’re not there yet — to no longer use Russian enriched uranium,” Wright said. He added, “We hope to see rapid growth in uranium consumption in the US from both large reactors and small modular reactors. The size of that right buffer would grow with time. We need a lot of domestic uranium and enrichment capacity.”

Bloomberg writes that a uranium reserve was first proposed in 2020 with $150 million requested, though Congress approved half. Biden later supported the plan, and in 2022 the Energy Department began purchases from US miners. Still, US companies hold only 14 months of uranium on average, compared with 2.5 years in the EU and 12 years in China, according to IAEA data.

The US is “furiously at work” rebuilding nuclear-fuel supply chains, Wright said, noting Biden signed a law in 2024 requiring utilities to stop using Russian uranium by 2028. Russia later restricted exports in retaliation.

The US has just two enrichment facilities: Urenco Ltd. in New Mexico for traditional reactors, and Centrus Energy in Ohio, which recently began producing higher-enriched fuel for advanced reactors. A White House order in May aims to speed their deployment, with the first models expected to test next year.

Wright also urged private investment, citing Peter Thiel’s General Matter Corp. as an example: “That’s key for efficiency and innovation and pace. That’s how you drive progress.”

As we noted weeks ago, readers of ZeroHedge are well aware that we believe Centrus Energy could be the next obvious candidate for the U.S. government to cozy up to and acquire a stake(similar to how the Trump admin recently did with rare earth company MP Materials and of course Intel, both of which we correctly predicted ahead of time, here and here). 

Just weeks ago Centrus announced it had signed a Memorandum of Understanding (MOU) with Korea Hydro & Nuclear Power (KHNP) and POSCO International to explore potential investment in expanding its enrichment plant in Piketon, Ohio.

The signing ceremony drew high-level attention, with U.S. Secretary of Commerce Howard Lutnick and Korea’s Minister of Trade, Industry and Energy Kim Jung-kwan both in attendance. The deal underscores a growing U.S.–Korea partnership in civilian nuclear energy — and highlights the demand for secure, non-Russian sources of uranium enrichment.

Tyler Durden Mon, 09/15/2025 - 17:40

With Supreme Court Set To Return, What To Expect In Trump Cases

With Supreme Court Set To Return, What To Expect In Trump Cases

Authored by Sam Dorman via The Epoch Times,

Months of litigation related to Trump administration policies have made it likely the Supreme Court justices will wrestle with limits on executive power in their upcoming term.

Months after President Donald Trump took office, his policy on birthright citizenship prompted the Supreme Court to issue a landmark ruling on judicial authority and the nation’s separation of powers. The ruling opposed lower courts’ imposition of so-called nationwide injunctions, which block a policy on a nationwide basis.

The justices did not, however, resolve underlying constitutional arguments surrounding birthright citizenship.

That issue and other Trump policies could return to the Supreme Court, which has used its emergency docket to offer more tentative decisions on blocks by lower courts.

If and when the justices give those issues more thorough consideration, it could result in landmark decisions on constitutional law. The Supreme Court’s new term is expected to start in October when the justices return for oral arguments.

Tariffs

The ability to impose tariffs is a power typically understood as reserved for Congress under the Constitution. It’s unclear, though, whether Congress effectively delegated that power to the president in a law known as the International Emergency Economic Powers Act.

The Supreme Court has already agreed to hear arguments in November over that issue.

An appeals court said in August that Congress didn’t delegate that power, but delayed its ruling until October. The eventual decision could have major economic consequences, altering the balance of trade and revenue inflows for the United States. In August, the United States reported a record $31 billion in revenue under tariffs that Trump implemented.

Treasury Secretary Scott Bessent said earlier this month that the Trump administration has backup plans in place in case the court rules against it.

Similar to some of Trump’s immigration cases, this issue raises questions about courts intervening in sensitive, ongoing diplomatic negotiations.

Immigration

The 14th Amendment has been interpreted in recent decades to allow birthright citizenship to children born to illegal immigrants. However, after ruling on the preliminary issue of nationwide injunctions, the Supreme Court could reconsider that interpretation and one of its 19th-century precedents.

The Trump administration’s eventual appeal will likely force the Supreme Court to confront competing interpretations of the 14th Amendment.

Other cases could revisit how far Trump’s authority extends as the chief executive of the nation’s laws. A series of legal disputes has developed over the way that Trump views his authority to deport individuals under laws passed by Congress. One of those is the Alien Enemies Act, which allows the president to remove certain individuals during an invasion.

Federal agents detain a man after his hearing in immigration court at the Ted Weiss Federal Building in New York on July 9, 2025. The Supreme Court may consider the issue of birthright citizenship under the 14th Amendment in its upcoming term. Michael M. Santiago/Getty Images

Trump invoked this law to deport suspected members of Venezuela’s Tren de Aragua gang. While the Supreme Court has addressed whether the detainees received adequate due process, the justices have yet to rule on whether gang members perpetrated the type of invasion that would allow deportation under the Alien Enemies Act. Many lower courts have ruled that Trump invalidly invoked the law, with a recent appeals court ruling teeing up a potential Supreme Court challenge.

Other immigration-related cases could also return, such as the administration’s attempt to deport people to “third countries” or those other than their home nations.

That question popped up more recently in yet another case involving Kilmar Abrego Garcia, a Salvadoran national who was returned to the United States after an order from a district court judge. Other cases could revisit Trump’s attempt to remove temporary protected status or parole for migrants who would otherwise be subject to deportation.

Spending

In an attempt to reduce excess spending, the Trump administration has attempted to freeze or cut disbursements related to gender, foreign aid, and a wide variety of other issues. And despite months of litigation over cuts, the court system seems far from resolving the legality.

That’s in part because the Supreme Court keeps sending the cases back to lower courts with rulings more about the judges’ authority than Trump’s. In at least two cases, the Supreme Court has agreed with the administration’s argument that challenges to Trump’s spending cuts should have been brought in the U.S. Court of Federal Claims rather than a regular district court.

The Supreme Court indicated as much in April when it allowed Trump to freeze millions of dollars’ worth of education-related grants. It later reaffirmed that position in an August decision that focused on health grants. That decision, however, was limited, and the justices sharply disagreed over which aspects of a district court’s block on Trump should be removed.

Besides the question of jurisdiction, debate has emerged over how much discretion Trump has in canceling outlays of those funds.

Education Secretary Linda McMahon (R) and Education Department budget analyst Hillary Perkins testify before the Senate Appropriations Committee on Capitol Hill in Washington on June 3, 2025. In April, the Supreme Court allowed Trump to freeze millions in education-related grants, and the justices will continue to weigh cases on presidential spending powers. Chip Somodevilla/Getty Images

Federal Officials

Trump’s firing of Federal Reserve Board of Governors member Lisa Cook has again raised the prospect that the justices could rule on the president’s ability to remove high-ranking federal officials. While the Supreme Court has allowed many of Trump’s firings to proceed, they’ve yet to issue a full-throated explanation of his authority to do so.

The litigation could ultimately prompt the Supreme Court to revisit a precedent known as Humphrey’s Executor v. United States, which was decided in 1935 and has been cited by multiple lower courts in their support of fired federal officials. That decision and others limited the president’s ability to fire officials depending on how much executive authority those officials exercised.

Trump’s victories have signaled that those judges may be misinterpreting Humphrey’s and the Constitution by not giving the president more deference.

Federal Reserve Chairman Jerome Powell speaks alongside Board Vice Chair for Supervision Michelle Bowman (L), Board Governor Lisa Cook (2nd R), and Board Governor Adriana Kugler (R) during a meeting at the Federal Reserve Board building in Washington on June 25, 2025. Trump’s firing of Cook has renewed speculation that the Supreme Court could weigh in on the president’s power to remove high-ranking federal officials. Saul Loeb/AFP via Getty Images

In May, the Supreme Court indicated that members of the Federal Reserve Board, like Cook, could enjoy more protection than heads of other agencies. A majority of the justices had allowed Trump to fire the heads of two labor boards and disputed the officials’ attempts to compare their agencies to the Federal Reserve.

According to the majority, the “Federal Reserve is a uniquely structured, quasi-private entity that follows in the distinct historical tradition of the First and Second Banks of the United States.”

Cook’s firing also included a more detailed explanation from Trump as to why he fired her, raising the prospect that the Supreme Court could judge what is an appropriate cause of termination.

Tyler Durden Mon, 09/15/2025 - 17:20

With Supreme Court Set To Return, What To Expect In Trump Cases

With Supreme Court Set To Return, What To Expect In Trump Cases

Authored by Sam Dorman via The Epoch Times,

Months of litigation related to Trump administration policies have made it likely the Supreme Court justices will wrestle with limits on executive power in their upcoming term.

Months after President Donald Trump took office, his policy on birthright citizenship prompted the Supreme Court to issue a landmark ruling on judicial authority and the nation’s separation of powers. The ruling opposed lower courts’ imposition of so-called nationwide injunctions, which block a policy on a nationwide basis.

The justices did not, however, resolve underlying constitutional arguments surrounding birthright citizenship.

That issue and other Trump policies could return to the Supreme Court, which has used its emergency docket to offer more tentative decisions on blocks by lower courts.

If and when the justices give those issues more thorough consideration, it could result in landmark decisions on constitutional law. The Supreme Court’s new term is expected to start in October when the justices return for oral arguments.

Tariffs

The ability to impose tariffs is a power typically understood as reserved for Congress under the Constitution. It’s unclear, though, whether Congress effectively delegated that power to the president in a law known as the International Emergency Economic Powers Act.

The Supreme Court has already agreed to hear arguments in November over that issue.

An appeals court said in August that Congress didn’t delegate that power, but delayed its ruling until October. The eventual decision could have major economic consequences, altering the balance of trade and revenue inflows for the United States. In August, the United States reported a record $31 billion in revenue under tariffs that Trump implemented.

Treasury Secretary Scott Bessent said earlier this month that the Trump administration has backup plans in place in case the court rules against it.

Similar to some of Trump’s immigration cases, this issue raises questions about courts intervening in sensitive, ongoing diplomatic negotiations.

Immigration

The 14th Amendment has been interpreted in recent decades to allow birthright citizenship to children born to illegal immigrants. However, after ruling on the preliminary issue of nationwide injunctions, the Supreme Court could reconsider that interpretation and one of its 19th-century precedents.

The Trump administration’s eventual appeal will likely force the Supreme Court to confront competing interpretations of the 14th Amendment.

Other cases could revisit how far Trump’s authority extends as the chief executive of the nation’s laws. A series of legal disputes has developed over the way that Trump views his authority to deport individuals under laws passed by Congress. One of those is the Alien Enemies Act, which allows the president to remove certain individuals during an invasion.

Federal agents detain a man after his hearing in immigration court at the Ted Weiss Federal Building in New York on July 9, 2025. The Supreme Court may consider the issue of birthright citizenship under the 14th Amendment in its upcoming term. Michael M. Santiago/Getty Images

Trump invoked this law to deport suspected members of Venezuela’s Tren de Aragua gang. While the Supreme Court has addressed whether the detainees received adequate due process, the justices have yet to rule on whether gang members perpetrated the type of invasion that would allow deportation under the Alien Enemies Act. Many lower courts have ruled that Trump invalidly invoked the law, with a recent appeals court ruling teeing up a potential Supreme Court challenge.

Other immigration-related cases could also return, such as the administration’s attempt to deport people to “third countries” or those other than their home nations.

That question popped up more recently in yet another case involving Kilmar Abrego Garcia, a Salvadoran national who was returned to the United States after an order from a district court judge. Other cases could revisit Trump’s attempt to remove temporary protected status or parole for migrants who would otherwise be subject to deportation.

Spending

In an attempt to reduce excess spending, the Trump administration has attempted to freeze or cut disbursements related to gender, foreign aid, and a wide variety of other issues. And despite months of litigation over cuts, the court system seems far from resolving the legality.

That’s in part because the Supreme Court keeps sending the cases back to lower courts with rulings more about the judges’ authority than Trump’s. In at least two cases, the Supreme Court has agreed with the administration’s argument that challenges to Trump’s spending cuts should have been brought in the U.S. Court of Federal Claims rather than a regular district court.

The Supreme Court indicated as much in April when it allowed Trump to freeze millions of dollars’ worth of education-related grants. It later reaffirmed that position in an August decision that focused on health grants. That decision, however, was limited, and the justices sharply disagreed over which aspects of a district court’s block on Trump should be removed.

Besides the question of jurisdiction, debate has emerged over how much discretion Trump has in canceling outlays of those funds.

Education Secretary Linda McMahon (R) and Education Department budget analyst Hillary Perkins testify before the Senate Appropriations Committee on Capitol Hill in Washington on June 3, 2025. In April, the Supreme Court allowed Trump to freeze millions in education-related grants, and the justices will continue to weigh cases on presidential spending powers. Chip Somodevilla/Getty Images

Federal Officials

Trump’s firing of Federal Reserve Board of Governors member Lisa Cook has again raised the prospect that the justices could rule on the president’s ability to remove high-ranking federal officials. While the Supreme Court has allowed many of Trump’s firings to proceed, they’ve yet to issue a full-throated explanation of his authority to do so.

The litigation could ultimately prompt the Supreme Court to revisit a precedent known as Humphrey’s Executor v. United States, which was decided in 1935 and has been cited by multiple lower courts in their support of fired federal officials. That decision and others limited the president’s ability to fire officials depending on how much executive authority those officials exercised.

Trump’s victories have signaled that those judges may be misinterpreting Humphrey’s and the Constitution by not giving the president more deference.

Federal Reserve Chairman Jerome Powell speaks alongside Board Vice Chair for Supervision Michelle Bowman (L), Board Governor Lisa Cook (2nd R), and Board Governor Adriana Kugler (R) during a meeting at the Federal Reserve Board building in Washington on June 25, 2025. Trump’s firing of Cook has renewed speculation that the Supreme Court could weigh in on the president’s power to remove high-ranking federal officials. Saul Loeb/AFP via Getty Images

In May, the Supreme Court indicated that members of the Federal Reserve Board, like Cook, could enjoy more protection than heads of other agencies. A majority of the justices had allowed Trump to fire the heads of two labor boards and disputed the officials’ attempts to compare their agencies to the Federal Reserve.

According to the majority, the “Federal Reserve is a uniquely structured, quasi-private entity that follows in the distinct historical tradition of the First and Second Banks of the United States.”

Cook’s firing also included a more detailed explanation from Trump as to why he fired her, raising the prospect that the Supreme Court could judge what is an appropriate cause of termination.

Tyler Durden Mon, 09/15/2025 - 17:20

Most NFL Home Teams Pay Homage To Charlie Kirk After Assassination

Most NFL Home Teams Pay Homage To Charlie Kirk After Assassination

Most NFL home teams paid tribute or held a moment of silence for conservative influencer Charlie Kirk this week, who was assassinated last week.

Starting on Sept. 11 during the “Thursday Night Football” game between the Green Bay Packers and Washington Commanders, Green Bay and the league itself held a moment of silence for Kirk, who was shot and killed a day prior.

“There have been a variety of moments of silence and tributes in-stadium and on-air in all games or a game immediately following events that rise to a national level,” the NFL said in a statement to multiple media outlets last week, referring to the league’s moment of silence held during the Packers’ home game.

“Clubs also often hold moments following a tragic event that affects their community.

“There have been moments following school shootings or an attack on a house of worship such as the Tree of Life Synagogue in Pittsburgh in 2018. There also have been moments following major international incidents such as Hamas attack on Israel in October 2023 and weather-related incidents such as major hurricanes and fires.”

As Jack Phillips reports for The Epoch Times, according to a statement from the White House on Sunday, the New York Jets, Dallas Cowboys, New Orleans Saints, Miami Dolphins, Tennessee Titans, Kansas City Chiefs, Pittsburgh Steelers, and Arizona Cardinals held moments of silence for or provided a special recognition of Kirk on Sunday.

An Epoch Times review of game footage and videos that were uploaded to social media showed that the Tennessee Titans included a photo of Kirk with his family on the jumbotron for a moment of silence on Sunday in the team’s home game against the Los Angeles Rams.

At the Chiefs game, a moment of silence was held for the victims of the Sept. 11, 2001, terrorist attacks, for victims of a shooting in Colorado, and for Kirk.

The Chicago Cubs and New York Yankees baseball teams also paid tribute, while NASCAR and the UFC leagues did the same, the White House said.

“These tributes reflect the widespread admiration for Kirk’s dedication to inspiring the next generation of American Patriots,” the White House said in the statement.

“We commend these organizations for honoring a figure who championed the values that unite us all, and we join the nation in celebrating his legacy.”

Two more NFL games will be played this week.

The Tampa Bay Buccaneers are visiting the Houston Texans, and the Los Angeles Chargers are heading to Las Vegas to play the Raiders on Monday night.

Kirk founded Turning Point USA to bring more young, conservative evangelical Christians into politics as effective influencers, and he was a confidant of President Donald Trump, leading to a flood of tributes that included a vigil Sunday night at the Kennedy Center in Washington. Kirk, a 31-year-old father of two, became prominent in part through his speaking tours and debates on college campuses. He was shot on Wednesday while speaking at Utah Valley University.

Tyler Durden Mon, 09/15/2025 - 17:00

Most NFL Home Teams Pay Homage To Charlie Kirk After Assassination

Most NFL Home Teams Pay Homage To Charlie Kirk After Assassination

Most NFL home teams paid tribute or held a moment of silence for conservative influencer Charlie Kirk this week, who was assassinated last week.

Starting on Sept. 11 during the “Thursday Night Football” game between the Green Bay Packers and Washington Commanders, Green Bay and the league itself held a moment of silence for Kirk, who was shot and killed a day prior.

“There have been a variety of moments of silence and tributes in-stadium and on-air in all games or a game immediately following events that rise to a national level,” the NFL said in a statement to multiple media outlets last week, referring to the league’s moment of silence held during the Packers’ home game.

“Clubs also often hold moments following a tragic event that affects their community.

“There have been moments following school shootings or an attack on a house of worship such as the Tree of Life Synagogue in Pittsburgh in 2018. There also have been moments following major international incidents such as Hamas attack on Israel in October 2023 and weather-related incidents such as major hurricanes and fires.”

As Jack Phillips reports for The Epoch Times, according to a statement from the White House on Sunday, the New York Jets, Dallas Cowboys, New Orleans Saints, Miami Dolphins, Tennessee Titans, Kansas City Chiefs, Pittsburgh Steelers, and Arizona Cardinals held moments of silence for or provided a special recognition of Kirk on Sunday.

An Epoch Times review of game footage and videos that were uploaded to social media showed that the Tennessee Titans included a photo of Kirk with his family on the jumbotron for a moment of silence on Sunday in the team’s home game against the Los Angeles Rams.

At the Chiefs game, a moment of silence was held for the victims of the Sept. 11, 2001, terrorist attacks, for victims of a shooting in Colorado, and for Kirk.

The Chicago Cubs and New York Yankees baseball teams also paid tribute, while NASCAR and the UFC leagues did the same, the White House said.

“These tributes reflect the widespread admiration for Kirk’s dedication to inspiring the next generation of American Patriots,” the White House said in the statement.

“We commend these organizations for honoring a figure who championed the values that unite us all, and we join the nation in celebrating his legacy.”

Two more NFL games will be played this week.

The Tampa Bay Buccaneers are visiting the Houston Texans, and the Los Angeles Chargers are heading to Las Vegas to play the Raiders on Monday night.

Kirk founded Turning Point USA to bring more young, conservative evangelical Christians into politics as effective influencers, and he was a confidant of President Donald Trump, leading to a flood of tributes that included a vigil Sunday night at the Kennedy Center in Washington. Kirk, a 31-year-old father of two, became prominent in part through his speaking tours and debates on college campuses. He was shot on Wednesday while speaking at Utah Valley University.

Tyler Durden Mon, 09/15/2025 - 17:00

Welcome To Clusterf**k Nation!

Welcome To Clusterf**k Nation!

Authored by James Howard Kunstler,

Dressed To Kill

"You currently have one side willing to talk and extend a microphone to anyone, and one side that shoots to kill when they do."

- Aimee Terese on X

When Brian De Palma’s movie, Dressed to Kill, came out in 1980, this was a different country.

Like Hitchcock’s Psycho before it (1960), both films depicted men seeking to become women who are murderously deranged by their wishful fantasies.

Now, our country has become murderously deranged by the same fantasy writ large.

These derangements are acted out now by a segment of the population that calls itself “the trans community.” This is just another manipulation of language, of course, by the same organized agencies working to turn our national life upside-down and inside-out. You call them “Globalists” or “Marxists” or “gnostic anarchists,” but who-or-whatever actually directs this action remains an abiding mystery of our time. (The runner-up abiding mystery is how the news media was hijacked to go along with all that.)

You have learned the past ten years how fragile reality can become in a society under stress. But then there is the reality of things as they actually exist, and the group’s perception of reality, which is not the same. The group’s perception of reality requires a consensus, an agreement, that certain things of this world are so. If the agreement is sturdy, and comports with how things actually exist, then you have a high-functioning society.

If the agreement is flimsy and doesn’t comport with how things actually are, you get Clusterfuck Nation, a society tortured by various compounded derangements.

It is hard to account for exactly how this happened to us, but the most visible manifestations of it these days come out of the political Left, the party that once defended the interests of the working-class, the laborers in their tough, uncomfortable lives seeking fair treatment from the comfortable class that employed and managed them.

At least, that’s how things resolved for a while in our industrial society, the classes coexisting in a fruitful, balanced tension. That all peaked in the early 1960s.

Political relations between business and labor grew increasingly irrelevant after that as industry got moved out of our country, so the party of the working-class had to find something else to give its attention to. By the early 1960s, the Democratic Party had already rebranded itself as the party of the civil rights (having been previously the party of Jim Crow and the KKK). It was not an altogether cynical or insincere transformation. It was driven by a dynamic imperative: to prove that America, the self-styled Leader of the Free World after two great and ruinous world wars, was a fair and righteous country, deserving its post-war leadership role. And that imperative rode the tailwind of Franklin Roosevelt’s “progressive” legacy.

Increasingly, though, after the 1960s, the civil rights crusade lost its mojo. It disappointed the zealous. Try as it might, the effort did not lead to a nirvana of racial harmony. In fact, the miserable black underclass seemed to only grow larger and more dysfunctional, the cities they lived in (increasingly run by them) more broken.

The band-aid for that failure was multiculturalism. By the 1980s, the consensus about reality was fracturing, especially about standards of behavior. Too many “people of color” were “justice involved” — they committed crimes. It was an embarrassment to “progressives” (liberal Democrats). Multiculturalism’s premise was that a society could have different standards of behavior and different values for different groups. Henceforth, there was no need for a broad agreement about what sort of behavior was okay and what was not okay — no need for a common culture that applied to everyone.

From there, the Democratic party had to assiduously recruit and sort out all the various multi-cultures in America, and pretend to manage and justify their special needs in order to continue functioning as a national political party. In the 1970s, it was all about feminism, the entry of women into the managerial class, the board rooms, the law firms, the professoriate. Then it was all about gay rights, Stonewall and all that followed. That movement was badly derailed in the 1980s by AIDS, which killed many of its activists and made the group’s sexual activities look less than entirely wholesome.

After about 1985, the liberals had to write off Black men. Too many were crackheads and no accounts. All they had left was the likes of Al Sharpton (of Tawana Brawley infamy) and a few hundred millionaire sports stars. So, the Dems rallied over the plight of Black women. . . who were soon joined by the indigenous people (formerly “Indians”). . . the Pacific Islanders. . . . By the early 21st century, the Democrats had run out of oppressed ethnicities to recruit under the multicultural umbrella. All that remained were the “homeless” (formerly “bums,” “junkies,” and “the mentally ill”).

Actually, the mentally ill had gotten a multicultural jump-start in the 1970s when patients in hospitals for the insane were re-branded as an “oppressed minority.” Thus, the hospitals were all emptied out and closed down and the patients released to “freedom” on the streets with vague promises of “community-based treatment” to follow — it never did, of course. After several major Middle East wars starting with Desert Storm in the 90s, more and more damaged military vets joined the ranks of the homeless. It has apparently never occurred to anyone that re-establishing hospitals for the insane might be necessary.

And so it has gone, from one “marginalized” and “oppressed minority” after another until all that liberalism (and their official org, the Democratic Party) had left in the 2020s was the tiniest subculture in the country: people who fantasized about becoming the opposite sex. That group was much encouraged by the medical establishment so narcissistically enchanted by their surgical skills and manipulations of hormonal chemistry (and the money it generated) that they recruited ever more subjects for their experiments.

The doctors and their therapist partners, in turn, egged-on the teachers, professors, and school administrators to recruit “patients” for “treatment” of the new condition called “gender dysphoria.”

The cheerleaders of the political Left coalesced behind all of that, promoted the hell out of it, went as far as inviting “drag queens” (men portraying women as monsters) into the third-grade classrooms.

And that is how deranged humans like the characters in Dressed to Kill and Psycho became the role models for the Democratic Party.

*  *  *

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Tyler Durden Mon, 09/15/2025 - 16:40

Welcome To Clusterf**k Nation!

Welcome To Clusterf**k Nation!

Authored by James Howard Kunstler,

Dressed To Kill

"You currently have one side willing to talk and extend a microphone to anyone, and one side that shoots to kill when they do."

- Aimee Terese on X

When Brian De Palma’s movie, Dressed to Kill, came out in 1980, this was a different country.

Like Hitchcock’s Psycho before it (1960), both films depicted men seeking to become women who are murderously deranged by their wishful fantasies.

Now, our country has become murderously deranged by the same fantasy writ large.

These derangements are acted out now by a segment of the population that calls itself “the trans community.” This is just another manipulation of language, of course, by the same organized agencies working to turn our national life upside-down and inside-out. You call them “Globalists” or “Marxists” or “gnostic anarchists,” but who-or-whatever actually directs this action remains an abiding mystery of our time. (The runner-up abiding mystery is how the news media was hijacked to go along with all that.)

You have learned the past ten years how fragile reality can become in a society under stress. But then there is the reality of things as they actually exist, and the group’s perception of reality, which is not the same. The group’s perception of reality requires a consensus, an agreement, that certain things of this world are so. If the agreement is sturdy, and comports with how things actually exist, then you have a high-functioning society.

If the agreement is flimsy and doesn’t comport with how things actually are, you get Clusterfuck Nation, a society tortured by various compounded derangements.

It is hard to account for exactly how this happened to us, but the most visible manifestations of it these days come out of the political Left, the party that once defended the interests of the working-class, the laborers in their tough, uncomfortable lives seeking fair treatment from the comfortable class that employed and managed them.

At least, that’s how things resolved for a while in our industrial society, the classes coexisting in a fruitful, balanced tension. That all peaked in the early 1960s.

Political relations between business and labor grew increasingly irrelevant after that as industry got moved out of our country, so the party of the working-class had to find something else to give its attention to. By the early 1960s, the Democratic Party had already rebranded itself as the party of the civil rights (having been previously the party of Jim Crow and the KKK). It was not an altogether cynical or insincere transformation. It was driven by a dynamic imperative: to prove that America, the self-styled Leader of the Free World after two great and ruinous world wars, was a fair and righteous country, deserving its post-war leadership role. And that imperative rode the tailwind of Franklin Roosevelt’s “progressive” legacy.

Increasingly, though, after the 1960s, the civil rights crusade lost its mojo. It disappointed the zealous. Try as it might, the effort did not lead to a nirvana of racial harmony. In fact, the miserable black underclass seemed to only grow larger and more dysfunctional, the cities they lived in (increasingly run by them) more broken.

The band-aid for that failure was multiculturalism. By the 1980s, the consensus about reality was fracturing, especially about standards of behavior. Too many “people of color” were “justice involved” — they committed crimes. It was an embarrassment to “progressives” (liberal Democrats). Multiculturalism’s premise was that a society could have different standards of behavior and different values for different groups. Henceforth, there was no need for a broad agreement about what sort of behavior was okay and what was not okay — no need for a common culture that applied to everyone.

From there, the Democratic party had to assiduously recruit and sort out all the various multi-cultures in America, and pretend to manage and justify their special needs in order to continue functioning as a national political party. In the 1970s, it was all about feminism, the entry of women into the managerial class, the board rooms, the law firms, the professoriate. Then it was all about gay rights, Stonewall and all that followed. That movement was badly derailed in the 1980s by AIDS, which killed many of its activists and made the group’s sexual activities look less than entirely wholesome.

After about 1985, the liberals had to write off Black men. Too many were crackheads and no accounts. All they had left was the likes of Al Sharpton (of Tawana Brawley infamy) and a few hundred millionaire sports stars. So, the Dems rallied over the plight of Black women. . . who were soon joined by the indigenous people (formerly “Indians”). . . the Pacific Islanders. . . . By the early 21st century, the Democrats had run out of oppressed ethnicities to recruit under the multicultural umbrella. All that remained were the “homeless” (formerly “bums,” “junkies,” and “the mentally ill”).

Actually, the mentally ill had gotten a multicultural jump-start in the 1970s when patients in hospitals for the insane were re-branded as an “oppressed minority.” Thus, the hospitals were all emptied out and closed down and the patients released to “freedom” on the streets with vague promises of “community-based treatment” to follow — it never did, of course. After several major Middle East wars starting with Desert Storm in the 90s, more and more damaged military vets joined the ranks of the homeless. It has apparently never occurred to anyone that re-establishing hospitals for the insane might be necessary.

And so it has gone, from one “marginalized” and “oppressed minority” after another until all that liberalism (and their official org, the Democratic Party) had left in the 2020s was the tiniest subculture in the country: people who fantasized about becoming the opposite sex. That group was much encouraged by the medical establishment so narcissistically enchanted by their surgical skills and manipulations of hormonal chemistry (and the money it generated) that they recruited ever more subjects for their experiments.

The doctors and their therapist partners, in turn, egged-on the teachers, professors, and school administrators to recruit “patients” for “treatment” of the new condition called “gender dysphoria.”

The cheerleaders of the political Left coalesced behind all of that, promoted the hell out of it, went as far as inviting “drag queens” (men portraying women as monsters) into the third-grade classrooms.

And that is how deranged humans like the characters in Dressed to Kill and Psycho became the role models for the Democratic Party.

*  *  *

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Tyler Durden Mon, 09/15/2025 - 16:40

Microsoft Deal Rewrite Could Save OpenAI $50 Billion Amid Record AI Data Center Spend 

Microsoft Deal Rewrite Could Save OpenAI $50 Billion Amid Record AI Data Center Spend 

The Information recently reported that ChatGPT-maker OpenAI has informed shareholders that it expects to reduce the percentage of revenue paid to Microsoft from about 20% today to just 8% by 2030. The shift could save the chatbot startup tens of billions of dollars over the next half-decade as it struggles with soaring compute costs and an accelerating buildout of data centers.

Under the proposed terms being discussed in an amended OpenAI–Microsoft collaboration deal, the outlet reports a potential seismic shift in how much OpenAI will pay Microsoft. This change could help offset record-breaking computing costs and save the startup $50 billion:

As part of their original partnership agreement, Microsoft is entitled to 20% of the startup's revenue through 2030. But OpenAI has projected to share roughly 8% of its revenue with commercial partners—namely, Microsoft—by the end of the decade from just under 20% this year. The difference between those figures adds up to over $50 billion in additional revenue OpenAI would keep for itself through 2030, which it needs because it has projected record-breaking expenses for computing power before that year.

The companies are also negotiating what will happen when OpenAI achieves so-called artificial general intelligence, or AI that's as intelligent as a human. The companies' existing contract stipulates that Microsoft will lose exclusive access to OpenAI's technology once the startup demonstrates that its technology can surpass certain financial milestones, but Microsoft has been angling for the AGI clause to be modified or removed from the contract.

The two companies are also negotiating how much OpenAI will spend to rent servers from Microsoft, according to another person briefed on the discussions.

. . . 

It's not clear why OpenAI is projecting sharing less than 20% of its revenue with Microsoft, given the earlier terms, but some OpenAI leaders want Microsoft to exempt future OpenAI products that haven't been released yet from the existing revenue-sharing agreement, such as PhD-level agents that cost $20,000 a month.

. . .

While many aspects of the deal are still up in the air, some aspects of the agreement have been largely worked out, say people close to the discussions. Namely, OpenAI's nonprofit and Microsoft will each get around one-third of the new company, which is currently allowing its employees to sell shares at a $500 billion valuation, one of the people said.

Over the past several weeks, teams from OpenAI and Microsoft have met to negotiate revenue-sharing and other restructuring details. Any cut in OpenAI's payout to Microsoft would offer relief to a startup burning through cash on AI infrastructure like a drunken sailor. For now, the nonprofit-governed company remains a money pit with no end in sight.

Tyler Durden Mon, 09/15/2025 - 15:25

Microsoft Deal Rewrite Could Save OpenAI $50 Billion Amid Record AI Data Center Spend 

Microsoft Deal Rewrite Could Save OpenAI $50 Billion Amid Record AI Data Center Spend 

The Information recently reported that ChatGPT-maker OpenAI has informed shareholders that it expects to reduce the percentage of revenue paid to Microsoft from about 20% today to just 8% by 2030. The shift could save the chatbot startup tens of billions of dollars over the next half-decade as it struggles with soaring compute costs and an accelerating buildout of data centers.

Under the proposed terms being discussed in an amended OpenAI–Microsoft collaboration deal, the outlet reports a potential seismic shift in how much OpenAI will pay Microsoft. This change could help offset record-breaking computing costs and save the startup $50 billion:

As part of their original partnership agreement, Microsoft is entitled to 20% of the startup's revenue through 2030. But OpenAI has projected to share roughly 8% of its revenue with commercial partners—namely, Microsoft—by the end of the decade from just under 20% this year. The difference between those figures adds up to over $50 billion in additional revenue OpenAI would keep for itself through 2030, which it needs because it has projected record-breaking expenses for computing power before that year.

The companies are also negotiating what will happen when OpenAI achieves so-called artificial general intelligence, or AI that's as intelligent as a human. The companies' existing contract stipulates that Microsoft will lose exclusive access to OpenAI's technology once the startup demonstrates that its technology can surpass certain financial milestones, but Microsoft has been angling for the AGI clause to be modified or removed from the contract.

The two companies are also negotiating how much OpenAI will spend to rent servers from Microsoft, according to another person briefed on the discussions.

. . . 

It's not clear why OpenAI is projecting sharing less than 20% of its revenue with Microsoft, given the earlier terms, but some OpenAI leaders want Microsoft to exempt future OpenAI products that haven't been released yet from the existing revenue-sharing agreement, such as PhD-level agents that cost $20,000 a month.

. . .

While many aspects of the deal are still up in the air, some aspects of the agreement have been largely worked out, say people close to the discussions. Namely, OpenAI's nonprofit and Microsoft will each get around one-third of the new company, which is currently allowing its employees to sell shares at a $500 billion valuation, one of the people said.

Over the past several weeks, teams from OpenAI and Microsoft have met to negotiate revenue-sharing and other restructuring details. Any cut in OpenAI's payout to Microsoft would offer relief to a startup burning through cash on AI infrastructure like a drunken sailor. For now, the nonprofit-governed company remains a money pit with no end in sight.

Tyler Durden Mon, 09/15/2025 - 15:25

It's A Crisis! A Whopping 67% Of American Workers Are Living Paycheck To Paycheck In 2025

It's A Crisis! A Whopping 67% Of American Workers Are Living Paycheck To Paycheck In 2025

Authored by Michael Snyder via TheMostImportantNews.com,

When two-thirds of all the workers in your entire country are just barely scraping by from month to month, you have got a major crisis on your hands. For a long time, our standard of living has been going down and the middle class has been shrinking. But in recent years, those two trends have accelerated. We have now reached a point where it takes 5 million dollars to live the American Dream for a lifetime. Needless to say, the vast majority of the population will never come close to making that sort of money. But most Americans continue to strive to live a middle class lifestyle, and as a result most people are teetering on the brink of financial disaster in this day and age.

According to a survey that was recently conducted by PNC Bank, 67 percent of U.S. workers are now living paycheck to paycheck…

A growing share of U.S. workers are struggling to cover expenses as everyday costs continue to weigh heavily on household budgets, according to new survey findings.

PNC Bank’s annual Financial Wellness in the Workplace Report shows that 67 percent of workers now say they are living paycheck to paycheck, up from 63 percent in 2024.

The report surveyed 1,000 U.S. workers aged 21 to 69 who work full time at companies with more than 100 workers.

There are two very important points that I want to make about this survey.

First of all, it only covers people that actually have a job.

There are vast numbers of other Americans that are not employed and that are deeply struggling right now.

So when you take that into account, this survey is even more shocking.

Secondly, it is clear that we are rapidly moving in the wrong direction.

It was bad enough that 63 percent of U.S. workers were living paycheck to paycheck last year, but now we are at 67 percent.

A four percent jump in a single year is a very troubling sign.

The primary reason why so many employed Americans are struggling financially is due to the rapidly rising cost of living.

For example, the price of coffee has risen by almost 21 percent over the past 12 months…

Coffee drinkers are in for a jolt long before their first sip.

Retail coffee prices in the United States in August jumped nearly 21% compared to the same month last year — the largest annual jump since October 1997, according to the latest Consumer Price Index, released Thursday. On a monthly basis, coffee prices rose 4%, the most in 14 years.

The vast majority of the coffee that we drink is imported, and Brazil is the number one source

Coffee, for instance, is largely imported because there are only a handful of places in the U.S. where the beans can be grown, such as Hawaii and Puerto Rico. About 80% of unroasted coffee imports are sourced from Latin America, primarily from Brazil, according to the U.S. Department of Agriculture.

Products from Brazil that are shipped to the U.S. now face a 50% tariff, according to the White House.

If you drink coffee, you will want to brace yourself, because prices are only going to go higher in the months ahead.

Of course just about everything has become significantly more expensive, and this is pushing many consumers over the edge.

I recently wrote about how subprime auto loan delinquencies in the U.S. have risen to an all-time high, and now we have learned that one of the largest subprime auto loan lenders in the U.S. has filed for Chapter 7 bankruptcy

A company that provides auto loans to families with poor or no credit has filed for bankruptcy.

Tricolor Holdings, a Dallas-based car fixing and credit company, has filed for Chapter 7 — or liquidation — bankruptcy. The filing typically means the company will quickly go out of business.

The company’s demise is a warning sign for the US economy: Americans are racking up a huge amount of debt to keep their cars, while a record amount can’t keep up with the payments.

This is just the beginning.

There will be more failures.

At this stage, most of us can feel the change that is in the air.  In fact, it is being reported that consumer confidence “dropped sharply in September”…

Consumer confidence dropped sharply in September to its lowest level in four months, according to preliminary data released Friday, as Americans expressed growing anxiety about job security and the persistence of high prices.

The University of Michigan’s closely watched index of consumer sentiment fell to 55.4 in September from 58.2 in August, missing economists’ expectations and reflecting what survey director Joanne Hsu described as “multiple vulnerabilities in the economy.”

And the confidence that Americans have in being able to find a new job has fallen to the lowest level ever recorded

In the latest sign of trouble for the U.S. labor market, confidence in the ability to move from one job to another has hit a record low, according to a New York Federal Reserve survey released Monday.

Respondents to the central bank’s monthly Survey of Consumer Expectations for August indicated a 44.9% probability of finding another job after losing their current one. The reading tumbled 5.8 percentage points from the prior month and is the lowest in the survey’s history dating back to June 2013.

If you are thriving in this extremely difficult economic environment, good for you.

For most of the population, things are very painful at this moment.

The ranks of the middle class are steadily thinning out, poverty is growing all around us, and more Americans are homeless than ever before in our entire history.

In Los Angeles, one homeless encampment has become so enormous that it is now being described as a full-blown “city”

A sprawling homeless encampment in Los Angeles is drawing ire from neighbors who say the makeshift shelter has grown into a full “city” of its own, complete with working electricity and a recreational area featuring a tennis court, garden and barbecue pit.

The encampment sits on a vacant Koreatown lot surrounded by apartment buildings and other structures, according to ABC 7.

“The reason why people are sleeping here is because you leaders are sleeping on not taking initiative and action to clean this place up,” neighborhood resident Daniel King told the station.

Most Americans are just a few bad breaks from losing everything.

In fact, there are already millions of Americans that have lost everything, and those that are on the bottom levels of the economic pyramid are becoming increasingly desperate.

When things really start hitting the fan in this country, vast numbers of extremely desperate people will cause tremendous chaos throughout our society.

Things didn’t have to turn out this way.

If we would have made much different decisions over the past 50 or 60 years, we would have gotten much different results.

But we just kept doing things the wrong way, and now we shall reap what we have sown.

*  *  *

Michael’s new book entitled “10 Prophetic Events That Are Coming Next” 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 Mon, 09/15/2025 - 15:05

It's A Crisis! A Whopping 67% Of American Workers Are Living Paycheck To Paycheck In 2025

It's A Crisis! A Whopping 67% Of American Workers Are Living Paycheck To Paycheck In 2025

Authored by Michael Snyder via TheMostImportantNews.com,

When two-thirds of all the workers in your entire country are just barely scraping by from month to month, you have got a major crisis on your hands. For a long time, our standard of living has been going down and the middle class has been shrinking. But in recent years, those two trends have accelerated. We have now reached a point where it takes 5 million dollars to live the American Dream for a lifetime. Needless to say, the vast majority of the population will never come close to making that sort of money. But most Americans continue to strive to live a middle class lifestyle, and as a result most people are teetering on the brink of financial disaster in this day and age.

According to a survey that was recently conducted by PNC Bank, 67 percent of U.S. workers are now living paycheck to paycheck…

A growing share of U.S. workers are struggling to cover expenses as everyday costs continue to weigh heavily on household budgets, according to new survey findings.

PNC Bank’s annual Financial Wellness in the Workplace Report shows that 67 percent of workers now say they are living paycheck to paycheck, up from 63 percent in 2024.

The report surveyed 1,000 U.S. workers aged 21 to 69 who work full time at companies with more than 100 workers.

There are two very important points that I want to make about this survey.

First of all, it only covers people that actually have a job.

There are vast numbers of other Americans that are not employed and that are deeply struggling right now.

So when you take that into account, this survey is even more shocking.

Secondly, it is clear that we are rapidly moving in the wrong direction.

It was bad enough that 63 percent of U.S. workers were living paycheck to paycheck last year, but now we are at 67 percent.

A four percent jump in a single year is a very troubling sign.

The primary reason why so many employed Americans are struggling financially is due to the rapidly rising cost of living.

For example, the price of coffee has risen by almost 21 percent over the past 12 months…

Coffee drinkers are in for a jolt long before their first sip.

Retail coffee prices in the United States in August jumped nearly 21% compared to the same month last year — the largest annual jump since October 1997, according to the latest Consumer Price Index, released Thursday. On a monthly basis, coffee prices rose 4%, the most in 14 years.

The vast majority of the coffee that we drink is imported, and Brazil is the number one source

Coffee, for instance, is largely imported because there are only a handful of places in the U.S. where the beans can be grown, such as Hawaii and Puerto Rico. About 80% of unroasted coffee imports are sourced from Latin America, primarily from Brazil, according to the U.S. Department of Agriculture.

Products from Brazil that are shipped to the U.S. now face a 50% tariff, according to the White House.

If you drink coffee, you will want to brace yourself, because prices are only going to go higher in the months ahead.

Of course just about everything has become significantly more expensive, and this is pushing many consumers over the edge.

I recently wrote about how subprime auto loan delinquencies in the U.S. have risen to an all-time high, and now we have learned that one of the largest subprime auto loan lenders in the U.S. has filed for Chapter 7 bankruptcy

A company that provides auto loans to families with poor or no credit has filed for bankruptcy.

Tricolor Holdings, a Dallas-based car fixing and credit company, has filed for Chapter 7 — or liquidation — bankruptcy. The filing typically means the company will quickly go out of business.

The company’s demise is a warning sign for the US economy: Americans are racking up a huge amount of debt to keep their cars, while a record amount can’t keep up with the payments.

This is just the beginning.

There will be more failures.

At this stage, most of us can feel the change that is in the air.  In fact, it is being reported that consumer confidence “dropped sharply in September”…

Consumer confidence dropped sharply in September to its lowest level in four months, according to preliminary data released Friday, as Americans expressed growing anxiety about job security and the persistence of high prices.

The University of Michigan’s closely watched index of consumer sentiment fell to 55.4 in September from 58.2 in August, missing economists’ expectations and reflecting what survey director Joanne Hsu described as “multiple vulnerabilities in the economy.”

And the confidence that Americans have in being able to find a new job has fallen to the lowest level ever recorded

In the latest sign of trouble for the U.S. labor market, confidence in the ability to move from one job to another has hit a record low, according to a New York Federal Reserve survey released Monday.

Respondents to the central bank’s monthly Survey of Consumer Expectations for August indicated a 44.9% probability of finding another job after losing their current one. The reading tumbled 5.8 percentage points from the prior month and is the lowest in the survey’s history dating back to June 2013.

If you are thriving in this extremely difficult economic environment, good for you.

For most of the population, things are very painful at this moment.

The ranks of the middle class are steadily thinning out, poverty is growing all around us, and more Americans are homeless than ever before in our entire history.

In Los Angeles, one homeless encampment has become so enormous that it is now being described as a full-blown “city”

A sprawling homeless encampment in Los Angeles is drawing ire from neighbors who say the makeshift shelter has grown into a full “city” of its own, complete with working electricity and a recreational area featuring a tennis court, garden and barbecue pit.

The encampment sits on a vacant Koreatown lot surrounded by apartment buildings and other structures, according to ABC 7.

“The reason why people are sleeping here is because you leaders are sleeping on not taking initiative and action to clean this place up,” neighborhood resident Daniel King told the station.

Most Americans are just a few bad breaks from losing everything.

In fact, there are already millions of Americans that have lost everything, and those that are on the bottom levels of the economic pyramid are becoming increasingly desperate.

When things really start hitting the fan in this country, vast numbers of extremely desperate people will cause tremendous chaos throughout our society.

Things didn’t have to turn out this way.

If we would have made much different decisions over the past 50 or 60 years, we would have gotten much different results.

But we just kept doing things the wrong way, and now we shall reap what we have sown.

*  *  *

Michael’s new book entitled “10 Prophetic Events That Are Coming Next” 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 Mon, 09/15/2025 - 15:05

Dollar Debates & Gold's Winning End-Game

Dollar Debates & Gold's Winning End-Game

Authored by Matthew Piepenburg via VonGreyerz.gold,

Whatever one thinks of the United States (economically, morally, militarily or politically), we can all agree that its dollar exerts tremendous influence (and controversy) over a rapidly changing world.

The Dollar’s Fate = Our Fate

The “greenback” is much more than the subject of what often feels like overly theoretical debates on its (near and longer-term) direction in both absolute terms (i.e., inherent purchasing power) or in terms of its relative strength to other currencies (i.e., as measured by the DXY).

As the world’s reserve currency, in which:

1) 58% of global FX reserves are held, 2) 80% of global trade finance is conducted, 3) $13T in global debt is denominated, 4) over $90T in FX swaps are traded and 5) the vast majority of US income-earners measure their wealth – the strength, direction and fate of this currency is of massive relevance to all of us – both within and outside of the United States.

A rising or falling dollar, for example, has a direct and immediate impact on stock market direction, bond market volatility, global trade shifts, local currency behaviors, tariff efficiency, central bank policies, alternative currency momentum, war motives and, of course, precious metal price action in the backdrop of gold’s rising reserve asset status.

Or stated even more simply: The fate of the USD matters because all of our fates – and not just the gold price – are tied to it.

More Than a “Debate”

Thus, when asking whether this USD will strengthen or weaken, there is far more at stake than just “winning a debate.”

What is of greater significance is understanding the moving parts of this admittedly complex issue before declaring a conclusion.

To help gain this understanding, we are compelled to respect both arguments – i.e. those who see a dollar’s “last dance” to record highs, and those who think the dollar’s dance (and hegemony) has already come to a historical turning point downwards, though, never, of course, in a perfectly straight line.

Lots of Smart

Toward this end, I have enjoyed unpacking this topic (debate?) with very smart leaders of the “strong dollar camp,” including a November 2023 conversation with the Milkshake Theory’s very own (and very smart) Brent Johnson.

I argued then for a secularly declining dollar; Brent saw a stronger dollar ahead.

At that time, the DXY was near 107. Two years later, the DXY sits today at 97.

Does that mean “I won” the dollar debate?

Hardly.

Start at the End

The dollar, like history, can be full of short-term surprises/movements despite a mathematically confirmed end-game, one in which all paper money, as Voltaire quipped, inevitably reverts to the zero-value of the paper it’s printed on…

But imagining a dying dollar (which has already lost 99% of its purchasing power against a milligram of gold since 1971) is almost impossible to do, especially a dollar as critical to global trade and finance as the world’s reserve currency.

And so, this critical debate, like time and he dollar itself, marches forward.

My Latest Debate

At the end of last month, for example, Francis Hunt and myself enjoyed what could be described as a “spirited exchange” with Henrik Zeberg, who, like Brent Johnson, makes a credible case for at least one more great DXY spike in the USD’s otherwise unlovable trajectory and profile.

Zeberg, like Johnson, legitimately reminds us of critical arguments in favor of a rising DXY (i.e., a USD growing relatively stronger than other key currencies), which I am unfairly simplifying here for reasons of word-count.

The crux, however, of the strong-dollar case hinges upon the fact that trillions (over $13T) in USD-denominated debt trading outside the US (i.e. “Eurodollar debt”) and over $90T in USD-based derivative transactions are perma-thirsty (and straw-sucking) for ever-more USDs to keep their credit and options markets forever dollar-greased and operative.

In times of crisis, this “thirst” for more USDs only increases in a backdrop for which James Rickards has warned there “won’t be enough dollars”, thereby sending the dollar relatively higher as: 1) demand for USDs to cover dollar-denominated (Eurodollar) debt skyrockets, and 2) global investors flock to the relatively safe-haven of the USD and UST.

The 2008 Dollar Template

Zeberg uses the Great Financial Crisis of 2008 as a critical template which confirms the foregoing argument.

During the GFC, for example, massive demand for USDs caused a 20% spike in the DXY and a short, but dramatic, fall in the gold price.

For Zeberg, the past is prologue.

Soon, likely in 2026, his model sees a massive and deflationary “uh-oh” moment in what we all agree is a grotesquely over-valued S&P.

Fair enough.

In the wake of such a crisis, the otherwise unloved and debased USD will see what Zeberg predicts as its “last dance,” evidenced by a spiking DXY and gold dramatically retracing, as we all saw in the 08 crisis.

There is much to consider in this considerably logical argument.

Zeberg, like Brent Johnson, for example, argues (as do I and Francis Hunt) that we are marching toward a sovereign debt crisis/cliff.

In the chaos of such a crisis, Johnson (like Zeberg) argues that more USD liquidity will be the automatic re-cap model familiar to most of the world.

That is, the US will effectively have the biggest “straw” to draw capital in from that world, thereby sending the dollar up relative to other currencies.

In short, and despite its obvious flaws, the USD is presented as “the best horse in the glue factory.”

In times of crisis, the thirst for this key currency will spike. (Even when USTs lost their AAA rating, for example, investor money still flocked to USD.)

These are valid points, indeed.  

More Reasons for the Dollar’s Last Dance

Johnson also reminds that in prior moments of a world on the edge of a credit crisis (such as the higher-for-longer, Powell-induced UST crisis, or the BoE-induced Gilt crisis of 2022), the USD reached a 30-year high.

This, alas, could easily happen again. In fact, for Johnson and Zeberg, it could be even more dramatic going forward.

Why?

Less Cooperative Swap Lines?

In such global inflection points (i.e., liquidity crises thirsty for dollars), the currency swap lines between global central banks traditionally helped buy time to keep USD-liquidity flowing without sending the DXY dangerously too high (because when the DXY rips, just about everything else – from local currencies to tech stocks – tanks).

But today, in a Trump world where global cooperation (and hence central bank currency swaps) could take a second seat to national protectionism, Johnson rightfully wonders if the DXY could spike dramatically higher in such a less-coordinated/cooperative backdrop.

Carry Trade Failures?

There is also the greater risk of carry-trade failures, which could limit liquidity in the next debt crisis and thus send the dollar much higher.

We all saw, for example, how the once reliably weaker/cheaper Yen, traditionally used to create USD liquidity via the arbitraged “Yen Carry Trade,” unwound last August, sending the USD higher.

For Johnson, a simultaneously strengthening Yen and USD could add fire to a percolating global liquidity nightmare in which the DXY could easily hit 150.

This would cripple local currencies, threaten credit markets (via rising rates), crush any chance of a US export revival and potentially trigger an equity market sell-off.

Again: When the DXY rises, just about everything but the dollar falls…

For Zeberg, this includes gold.

A Great Gold Fall?

Although Zeberg, like Johnson and myself, are ultimately bullish on gold, he sees a 2008-like pullback in gold once the last DXY dance/spike takes stride.

Thereafter, and once the Fed resorts to extreme QE to weaken the dollar and monetize otherwise openly unpayable debt levels, Zeberg sees gold racing to astronomical highs as the dollar comes down from its last dance.

These, again, are admittedly simplistic summaries of the strong-dollar case.

An Alternative Take on the Dollar

Which brings me to my counter-argument, or at least counterpoints.

Ultimately, I don’t see a dramatically spiking DXY, a temporarily tanking gold price, nor even a dying dollar.

Instead, I see a dollar being slowly but deliberately re-priced (rather than immediately de-levered) in a backdrop where its role relative to other currencies maintains some supremacy but far less hegemony.

In other words, the dollar won’t vanish, but its historical respect, use and influence will continue to weaken in a world openly moving away from it.

No Rubel, Yuan, Euro or Yen, however, is going to replace the otherwise unlovable USD anytime soon. These currencies don’t want or need to seek global reserve status.

Instead, they are openly reaching trade deals in regional currencies which are net-settled in gold, not USDs or USTs.

This is also why I do NOT see a dramatic or lasting pullback in the gold price during the next deflationary credit-crisis/S&P implosion.

Gold’s Role Has Changed

The current stock market bubble, credit crisis and gold backdrop are objectively different from the 2008 template/example cited above.

Stated more simply, gold won’t act like it did in 2008 (i.e. retrace by > 30%), because the gold of 2025 and beyond operates in a dramatically different landscape and role today than yesterday.

The strong dollar case underestimates the open de-dollarization movement, which came in the wake of the 2022 weaponization of the greenback; it also assumes smooth and continuous dollar hegemony in a new “Game of Thrones” setting by which the dollar is not the same dragon it used to be…

With those broad statements thus made, let’s dig a bit deeper to make this case.

The US Doesn’t Want a Stronger USD

First, and as I argued with Brent Johnson back in 2023, one of the primary arguments against a dangerously spiking DXY/USD is the simple fact that the US doesn’t want, nor can it afford, a DXY ripping North.

The aim of the US, both for trade deficits and debt monetization, is a relatively (as well as absolutely) weaker (not stronger) USD.

Of course, this alone is no defense. Not wanting a stronger USD doesn’t mean it can’t happen.

But should the DXY start climbing into the 130’s or higher, there would be an immediate, and yes, desperate, series of foreseeable and unforeseeable (and rocky rather than smooth) policy moves (with admittedly less effective “tools”) to slow any further spike.

This is because a dangerously rising DXY destabilizes the world.

Such desperate “reactions” would and could take any number of forms, from a sudden Plazza Accord 2.0 or Bretton Woods 2.0 event to a global scrambling of central bank demands for emergency swap lines, YCC and extreme Fed QE to the moon – all in order to prevent a rising USD from crushing local and global debt markets, spiking US trade deficits and gyrating global equity markets.

Any such messy “solutions” could protect the USD’s relative strength from spiking the DXY, but naturally and simultaneously destroy its absolute purchasing power, which is now beyond current or even future dispute.

This is because the US, at current and historically unprecedented debt levels, is out of currency options: It’s now inflate or die.

In other words, the FED and US Treasury will continue to debase (weaken) the USD and run negative real rates to “save” its debt market by further destroying its paper dollar.

This template of currency destruction in a debt crisis is as old and predictable as history itself.

It is thus critical to understand that even a rising DXY does not protect the dollar from being inherently debased.

Gold Rising in the Next Crisis

As for gold retracing ala 2008 in the next deflationary credit implosion, Zeberg’s argument assumes that the world still sees gold as a speculation or liquidity asset (as it did then) rather than as a strategic global reserve asset (as it does now).

The evidence of gold replacing the UST and USD as a far greater (and strategic) store of value since 2008 is no longer a conspiracy theory or “gold bug spin.”

Instead, the evidence of gold’s rising status and role is literally all around us – from: 1) the rise of gold as a net-settlement asset within the ever de-dollarizing BRICS+ coalition, 2) the weakening petrodollar and rising Yuan/Russia oil trade, 3) the IMF’s confession of gold being critical to any reset to come, 4) the 3X expansion of central bank gold stacking since the US weaponized the USD in 2022, and 5) the BIS openly granting gold aTier-1 status to 6) the embarrassing repatriation of physical gold off the London and New York exchanges.

In other words, and contrary to Zeberg’s argument of the USD and UST as a “safe-haven” in the next deflationary crisis, I (and Francis Hunt) would argue the very opposite.

Why, after all, would the world seek a “safe-haven” in a UST (the worst performing asset in the last 5 years with a 50% loss of value) and hence USD, when gold, the new Tier-1 asset, is an objectively, monetarily and mathematically superior store of value?

Rather than dump gold in the next “08 moment,” the world will instead be racing toward it.

A Mug’s Game, A Critical Asset

Again, a deeper dive into the nuances of these otherwise complex yet broadly stroked arguments is not my aim here.

Predicting precise scenarios and DXY directional percentages is ultimately a mug’s game in a sea of volatility.

Nevertheless, tracking the empirical decline of the USD’s absolute purchasing power is no debate, but an empirical fact.

As for the USD’s relative moves in the DXY and against other currencies, that is admittedly, and in all fairness to Brent Johnson, harder to “win” or predict in the near-term.

There is much to his and Zeberg’s arguments, though Johnson, like me, does not believe that the gold price will fall even if the DXY should spike.

Gold and the USD can rise (and have risen) together.

And to repeat: Even a rising DXY does not mean the USD is protected from a debasement of its absolute purchasing power.

This is why gold will outperform rather than retrace in the next crisis, regardless of the DXY’s relativity theory…

It is equally worth noting that despite the necessary and important differences in opinions as to the great dollar/DXY debate outlined above, all of us – Hunt, Zeberg and Johnson – do agree on this: In the end, gold will continue to be an essential, if not THE essential, asset in the years ahead.

Regardless, then, of the DXY’s debated direction, gold’s finest hours are yet to come.

Tyler Durden Mon, 09/15/2025 - 14:25

Dollar Debates & Gold's Winning End-Game

Dollar Debates & Gold's Winning End-Game

Authored by Matthew Piepenburg via VonGreyerz.gold,

Whatever one thinks of the United States (economically, morally, militarily or politically), we can all agree that its dollar exerts tremendous influence (and controversy) over a rapidly changing world.

The Dollar’s Fate = Our Fate

The “greenback” is much more than the subject of what often feels like overly theoretical debates on its (near and longer-term) direction in both absolute terms (i.e., inherent purchasing power) or in terms of its relative strength to other currencies (i.e., as measured by the DXY).

As the world’s reserve currency, in which:

1) 58% of global FX reserves are held, 2) 80% of global trade finance is conducted, 3) $13T in global debt is denominated, 4) over $90T in FX swaps are traded and 5) the vast majority of US income-earners measure their wealth – the strength, direction and fate of this currency is of massive relevance to all of us – both within and outside of the United States.

A rising or falling dollar, for example, has a direct and immediate impact on stock market direction, bond market volatility, global trade shifts, local currency behaviors, tariff efficiency, central bank policies, alternative currency momentum, war motives and, of course, precious metal price action in the backdrop of gold’s rising reserve asset status.

Or stated even more simply: The fate of the USD matters because all of our fates – and not just the gold price – are tied to it.

More Than a “Debate”

Thus, when asking whether this USD will strengthen or weaken, there is far more at stake than just “winning a debate.”

What is of greater significance is understanding the moving parts of this admittedly complex issue before declaring a conclusion.

To help gain this understanding, we are compelled to respect both arguments – i.e. those who see a dollar’s “last dance” to record highs, and those who think the dollar’s dance (and hegemony) has already come to a historical turning point downwards, though, never, of course, in a perfectly straight line.

Lots of Smart

Toward this end, I have enjoyed unpacking this topic (debate?) with very smart leaders of the “strong dollar camp,” including a November 2023 conversation with the Milkshake Theory’s very own (and very smart) Brent Johnson.

I argued then for a secularly declining dollar; Brent saw a stronger dollar ahead.

At that time, the DXY was near 107. Two years later, the DXY sits today at 97.

Does that mean “I won” the dollar debate?

Hardly.

Start at the End

The dollar, like history, can be full of short-term surprises/movements despite a mathematically confirmed end-game, one in which all paper money, as Voltaire quipped, inevitably reverts to the zero-value of the paper it’s printed on…

But imagining a dying dollar (which has already lost 99% of its purchasing power against a milligram of gold since 1971) is almost impossible to do, especially a dollar as critical to global trade and finance as the world’s reserve currency.

And so, this critical debate, like time and he dollar itself, marches forward.

My Latest Debate

At the end of last month, for example, Francis Hunt and myself enjoyed what could be described as a “spirited exchange” with Henrik Zeberg, who, like Brent Johnson, makes a credible case for at least one more great DXY spike in the USD’s otherwise unlovable trajectory and profile.

Zeberg, like Johnson, legitimately reminds us of critical arguments in favor of a rising DXY (i.e., a USD growing relatively stronger than other key currencies), which I am unfairly simplifying here for reasons of word-count.

The crux, however, of the strong-dollar case hinges upon the fact that trillions (over $13T) in USD-denominated debt trading outside the US (i.e. “Eurodollar debt”) and over $90T in USD-based derivative transactions are perma-thirsty (and straw-sucking) for ever-more USDs to keep their credit and options markets forever dollar-greased and operative.

In times of crisis, this “thirst” for more USDs only increases in a backdrop for which James Rickards has warned there “won’t be enough dollars”, thereby sending the dollar relatively higher as: 1) demand for USDs to cover dollar-denominated (Eurodollar) debt skyrockets, and 2) global investors flock to the relatively safe-haven of the USD and UST.

The 2008 Dollar Template

Zeberg uses the Great Financial Crisis of 2008 as a critical template which confirms the foregoing argument.

During the GFC, for example, massive demand for USDs caused a 20% spike in the DXY and a short, but dramatic, fall in the gold price.

For Zeberg, the past is prologue.

Soon, likely in 2026, his model sees a massive and deflationary “uh-oh” moment in what we all agree is a grotesquely over-valued S&P.

Fair enough.

In the wake of such a crisis, the otherwise unloved and debased USD will see what Zeberg predicts as its “last dance,” evidenced by a spiking DXY and gold dramatically retracing, as we all saw in the 08 crisis.

There is much to consider in this considerably logical argument.

Zeberg, like Brent Johnson, for example, argues (as do I and Francis Hunt) that we are marching toward a sovereign debt crisis/cliff.

In the chaos of such a crisis, Johnson (like Zeberg) argues that more USD liquidity will be the automatic re-cap model familiar to most of the world.

That is, the US will effectively have the biggest “straw” to draw capital in from that world, thereby sending the dollar up relative to other currencies.

In short, and despite its obvious flaws, the USD is presented as “the best horse in the glue factory.”

In times of crisis, the thirst for this key currency will spike. (Even when USTs lost their AAA rating, for example, investor money still flocked to USD.)

These are valid points, indeed.  

More Reasons for the Dollar’s Last Dance

Johnson also reminds that in prior moments of a world on the edge of a credit crisis (such as the higher-for-longer, Powell-induced UST crisis, or the BoE-induced Gilt crisis of 2022), the USD reached a 30-year high.

This, alas, could easily happen again. In fact, for Johnson and Zeberg, it could be even more dramatic going forward.

Why?

Less Cooperative Swap Lines?

In such global inflection points (i.e., liquidity crises thirsty for dollars), the currency swap lines between global central banks traditionally helped buy time to keep USD-liquidity flowing without sending the DXY dangerously too high (because when the DXY rips, just about everything else – from local currencies to tech stocks – tanks).

But today, in a Trump world where global cooperation (and hence central bank currency swaps) could take a second seat to national protectionism, Johnson rightfully wonders if the DXY could spike dramatically higher in such a less-coordinated/cooperative backdrop.

Carry Trade Failures?

There is also the greater risk of carry-trade failures, which could limit liquidity in the next debt crisis and thus send the dollar much higher.

We all saw, for example, how the once reliably weaker/cheaper Yen, traditionally used to create USD liquidity via the arbitraged “Yen Carry Trade,” unwound last August, sending the USD higher.

For Johnson, a simultaneously strengthening Yen and USD could add fire to a percolating global liquidity nightmare in which the DXY could easily hit 150.

This would cripple local currencies, threaten credit markets (via rising rates), crush any chance of a US export revival and potentially trigger an equity market sell-off.

Again: When the DXY rises, just about everything but the dollar falls…

For Zeberg, this includes gold.

A Great Gold Fall?

Although Zeberg, like Johnson and myself, are ultimately bullish on gold, he sees a 2008-like pullback in gold once the last DXY dance/spike takes stride.

Thereafter, and once the Fed resorts to extreme QE to weaken the dollar and monetize otherwise openly unpayable debt levels, Zeberg sees gold racing to astronomical highs as the dollar comes down from its last dance.

These, again, are admittedly simplistic summaries of the strong-dollar case.

An Alternative Take on the Dollar

Which brings me to my counter-argument, or at least counterpoints.

Ultimately, I don’t see a dramatically spiking DXY, a temporarily tanking gold price, nor even a dying dollar.

Instead, I see a dollar being slowly but deliberately re-priced (rather than immediately de-levered) in a backdrop where its role relative to other currencies maintains some supremacy but far less hegemony.

In other words, the dollar won’t vanish, but its historical respect, use and influence will continue to weaken in a world openly moving away from it.

No Rubel, Yuan, Euro or Yen, however, is going to replace the otherwise unlovable USD anytime soon. These currencies don’t want or need to seek global reserve status.

Instead, they are openly reaching trade deals in regional currencies which are net-settled in gold, not USDs or USTs.

This is also why I do NOT see a dramatic or lasting pullback in the gold price during the next deflationary credit-crisis/S&P implosion.

Gold’s Role Has Changed

The current stock market bubble, credit crisis and gold backdrop are objectively different from the 2008 template/example cited above.

Stated more simply, gold won’t act like it did in 2008 (i.e. retrace by > 30%), because the gold of 2025 and beyond operates in a dramatically different landscape and role today than yesterday.

The strong dollar case underestimates the open de-dollarization movement, which came in the wake of the 2022 weaponization of the greenback; it also assumes smooth and continuous dollar hegemony in a new “Game of Thrones” setting by which the dollar is not the same dragon it used to be…

With those broad statements thus made, let’s dig a bit deeper to make this case.

The US Doesn’t Want a Stronger USD

First, and as I argued with Brent Johnson back in 2023, one of the primary arguments against a dangerously spiking DXY/USD is the simple fact that the US doesn’t want, nor can it afford, a DXY ripping North.

The aim of the US, both for trade deficits and debt monetization, is a relatively (as well as absolutely) weaker (not stronger) USD.

Of course, this alone is no defense. Not wanting a stronger USD doesn’t mean it can’t happen.

But should the DXY start climbing into the 130’s or higher, there would be an immediate, and yes, desperate, series of foreseeable and unforeseeable (and rocky rather than smooth) policy moves (with admittedly less effective “tools”) to slow any further spike.

This is because a dangerously rising DXY destabilizes the world.

Such desperate “reactions” would and could take any number of forms, from a sudden Plazza Accord 2.0 or Bretton Woods 2.0 event to a global scrambling of central bank demands for emergency swap lines, YCC and extreme Fed QE to the moon – all in order to prevent a rising USD from crushing local and global debt markets, spiking US trade deficits and gyrating global equity markets.

Any such messy “solutions” could protect the USD’s relative strength from spiking the DXY, but naturally and simultaneously destroy its absolute purchasing power, which is now beyond current or even future dispute.

This is because the US, at current and historically unprecedented debt levels, is out of currency options: It’s now inflate or die.

In other words, the FED and US Treasury will continue to debase (weaken) the USD and run negative real rates to “save” its debt market by further destroying its paper dollar.

This template of currency destruction in a debt crisis is as old and predictable as history itself.

It is thus critical to understand that even a rising DXY does not protect the dollar from being inherently debased.

Gold Rising in the Next Crisis

As for gold retracing ala 2008 in the next deflationary credit implosion, Zeberg’s argument assumes that the world still sees gold as a speculation or liquidity asset (as it did then) rather than as a strategic global reserve asset (as it does now).

The evidence of gold replacing the UST and USD as a far greater (and strategic) store of value since 2008 is no longer a conspiracy theory or “gold bug spin.”

Instead, the evidence of gold’s rising status and role is literally all around us – from: 1) the rise of gold as a net-settlement asset within the ever de-dollarizing BRICS+ coalition, 2) the weakening petrodollar and rising Yuan/Russia oil trade, 3) the IMF’s confession of gold being critical to any reset to come, 4) the 3X expansion of central bank gold stacking since the US weaponized the USD in 2022, and 5) the BIS openly granting gold aTier-1 status to 6) the embarrassing repatriation of physical gold off the London and New York exchanges.

In other words, and contrary to Zeberg’s argument of the USD and UST as a “safe-haven” in the next deflationary crisis, I (and Francis Hunt) would argue the very opposite.

Why, after all, would the world seek a “safe-haven” in a UST (the worst performing asset in the last 5 years with a 50% loss of value) and hence USD, when gold, the new Tier-1 asset, is an objectively, monetarily and mathematically superior store of value?

Rather than dump gold in the next “08 moment,” the world will instead be racing toward it.

A Mug’s Game, A Critical Asset

Again, a deeper dive into the nuances of these otherwise complex yet broadly stroked arguments is not my aim here.

Predicting precise scenarios and DXY directional percentages is ultimately a mug’s game in a sea of volatility.

Nevertheless, tracking the empirical decline of the USD’s absolute purchasing power is no debate, but an empirical fact.

As for the USD’s relative moves in the DXY and against other currencies, that is admittedly, and in all fairness to Brent Johnson, harder to “win” or predict in the near-term.

There is much to his and Zeberg’s arguments, though Johnson, like me, does not believe that the gold price will fall even if the DXY should spike.

Gold and the USD can rise (and have risen) together.

And to repeat: Even a rising DXY does not mean the USD is protected from a debasement of its absolute purchasing power.

This is why gold will outperform rather than retrace in the next crisis, regardless of the DXY’s relativity theory…

It is equally worth noting that despite the necessary and important differences in opinions as to the great dollar/DXY debate outlined above, all of us – Hunt, Zeberg and Johnson – do agree on this: In the end, gold will continue to be an essential, if not THE essential, asset in the years ahead.

Regardless, then, of the DXY’s debated direction, gold’s finest hours are yet to come.

Tyler Durden Mon, 09/15/2025 - 14:25

Nano Nuclear Wins Reactor Contract From US Air Force As UK's Starmer Touts "Golden Age Of Nuclear"

Nano Nuclear Wins Reactor Contract From US Air Force As UK's Starmer Touts "Golden Age Of Nuclear"

NANO Nuclear Energy, one of the handful of nuclear microreactor companies that are at the forefront of energizing the AI revolution, has won a contract from AFWERX - the US Air Force’s innovation arm - to study the feasibility of deploying its KRONOS MMR microreactor at Joint Base Anacostia-Bolling in Washington, DC. The project would mark the first-ever nuclear microreactor at an urban US military base, a milestone with major implications for defense energy resilience, and comes at a time when there is a growing sense of panic about how the US will power itself when most new energy infrastructure is going to powering AI data centers. 

The project, in partnership with the 11th Civil Engineering Squadron, will assess energy needs, grid risks, siting, environmental factors, and regulatory pathways, and will set the stage for accelerated rollouts of similar projects.

A few technical details: the stationary, high-temperature gas-cooled KRONOS Microreactor is designed to deliver 15 MWe, run for decades, operate autonomously during outages, and withstand cyber and physical threats. It uses TRISO fuel with passive helium cooling and can scale by combining units.

Acquired by NANO Nuclear in January 2025, the KRONOS MMR is also set for research deployment at the University of Illinois Urbana-Champaign. The company is developing additional designs, including ZEUS, ODIN, and the space-focused LOKI.

CEO James Walker called the award “another milestone for NANO Nuclear and a validation of our belief that KRONOS MMR Energy System as a leading microreactor programme,” saying it offers “resilience, safety, and carbon-free generation.”

Founder Jay Yu added: “Our KRONOS MMR is designed to protect critical missions in the most demanding environments, and this contract underscores NANO Nuclear’s emerging status as the leader in bringing microreactors to the defense ecosystem.”

This comes amid growing defense interest in microreactors, including Project Pele at Idaho National Laboratory, the ANPI program with multiple contractors, Oklo’s planned Aurora deployment in Alaska, and recent deals with Radiant Nuclear and X-energy. 

Back in May 2024, Zero Hedge was the first outlet to highlight NANO Nuclear's close peer Oklo, which has since exploded almost 20x higher, and today alone the stock up more than $11 and trading around $92 per share, about 10x from when we first highlighted it a year ago, and more than 15x since Jim Cramer said "I can't even look at it."

 Today, NANO Nuclear may be an even higher-beta bet on microreactors - whose fate is closely tied to that of the broader AI space - as it has a similar development profile yet its short interest is double that of Oklo. Having former Energy Secretary Rick Perry as the Chairman of its executive advisory board won't hurt either.

Meanwhile, the broader nuclear space got another boost this week after UK Prime Minister Keir Starmer announced a US-UK nuclear deal on Monday ahead of Donald Trump’s state visit, aiming to show "a golden age of nuclear" with faster approvals, new jobs, and lower bills, according to Financial Times

The FT reported that Starmer hopes the visit boosts Britain’s investment appeal. Downing Street said the deal will cut nuclear licensing times from 3–4 years to about 2. “Together with the US, we’re building a golden age of nuclear,” said Starmer.

US energy secretary Chris Wright - who formerly worked on the Oklo board of directors - praised Trump for “ushering in a true nuclear renaissance.” As part of the announcement, Rolls-Royce also entered the US regulatory process for small modular reactors, while Centrica and X-energy announced a reactor project in Hartlepool.

The nuclear plans are early stage, needing financing and state support, but reflect growing demand for low-carbon power. Ministers also welcomed £1.25 billion of US financial services investment, creating 1,800 UK jobs—1,000 from Bank of America in Belfast, £1.1 billion from Citigroup, plus expansions by BlackRock and S&P Global.

Zero Hedge readers may recall that it was back in April 2024 when he highlighted the coming nuclear boom in our note "The Next AI Trade."  Since that note, some 18 months ago, nuclear and its derivatives - which was at the forefront of the various investment opportunities we highlighted for powering up America - has almost doubled... 

... and is dramatically outperformed the broader market.

Tyler Durden Mon, 09/15/2025 - 14:05

Nano Nuclear Wins Reactor Contract From US Air Force As UK's Starmer Touts "Golden Age Of Nuclear"

Nano Nuclear Wins Reactor Contract From US Air Force As UK's Starmer Touts "Golden Age Of Nuclear"

NANO Nuclear Energy, one of the handful of nuclear microreactor companies that are at the forefront of energizing the AI revolution, has won a contract from AFWERX - the US Air Force’s innovation arm - to study the feasibility of deploying its KRONOS MMR microreactor at Joint Base Anacostia-Bolling in Washington, DC. The project would mark the first-ever nuclear microreactor at an urban US military base, a milestone with major implications for defense energy resilience, and comes at a time when there is a growing sense of panic about how the US will power itself when most new energy infrastructure is going to powering AI data centers. 

The project, in partnership with the 11th Civil Engineering Squadron, will assess energy needs, grid risks, siting, environmental factors, and regulatory pathways, and will set the stage for accelerated rollouts of similar projects.

A few technical details: the stationary, high-temperature gas-cooled KRONOS Microreactor is designed to deliver 15 MWe, run for decades, operate autonomously during outages, and withstand cyber and physical threats. It uses TRISO fuel with passive helium cooling and can scale by combining units.

Acquired by NANO Nuclear in January 2025, the KRONOS MMR is also set for research deployment at the University of Illinois Urbana-Champaign. The company is developing additional designs, including ZEUS, ODIN, and the space-focused LOKI.

CEO James Walker called the award “another milestone for NANO Nuclear and a validation of our belief that KRONOS MMR Energy System as a leading microreactor programme,” saying it offers “resilience, safety, and carbon-free generation.”

Founder Jay Yu added: “Our KRONOS MMR is designed to protect critical missions in the most demanding environments, and this contract underscores NANO Nuclear’s emerging status as the leader in bringing microreactors to the defense ecosystem.”

This comes amid growing defense interest in microreactors, including Project Pele at Idaho National Laboratory, the ANPI program with multiple contractors, Oklo’s planned Aurora deployment in Alaska, and recent deals with Radiant Nuclear and X-energy. 

Back in May 2024, Zero Hedge was the first outlet to highlight NANO Nuclear's close peer Oklo, which has since exploded almost 20x higher, and today alone the stock up more than $11 and trading around $92 per share, about 10x from when we first highlighted it a year ago, and more than 15x since Jim Cramer said "I can't even look at it."

 Today, NANO Nuclear may be an even higher-beta bet on microreactors - whose fate is closely tied to that of the broader AI space - as it has a similar development profile yet its short interest is double that of Oklo. Having former Energy Secretary Rick Perry as the Chairman of its executive advisory board won't hurt either.

Meanwhile, the broader nuclear space got another boost this week after UK Prime Minister Keir Starmer announced a US-UK nuclear deal on Monday ahead of Donald Trump’s state visit, aiming to show "a golden age of nuclear" with faster approvals, new jobs, and lower bills, according to Financial Times

The FT reported that Starmer hopes the visit boosts Britain’s investment appeal. Downing Street said the deal will cut nuclear licensing times from 3–4 years to about 2. “Together with the US, we’re building a golden age of nuclear,” said Starmer.

US energy secretary Chris Wright - who formerly worked on the Oklo board of directors - praised Trump for “ushering in a true nuclear renaissance.” As part of the announcement, Rolls-Royce also entered the US regulatory process for small modular reactors, while Centrica and X-energy announced a reactor project in Hartlepool.

The nuclear plans are early stage, needing financing and state support, but reflect growing demand for low-carbon power. Ministers also welcomed £1.25 billion of US financial services investment, creating 1,800 UK jobs—1,000 from Bank of America in Belfast, £1.1 billion from Citigroup, plus expansions by BlackRock and S&P Global.

Zero Hedge readers may recall that it was back in April 2024 when he highlighted the coming nuclear boom in our note "The Next AI Trade."  Since that note, some 18 months ago, nuclear and its derivatives - which was at the forefront of the various investment opportunities we highlighted for powering up America - has almost doubled... 

... and is dramatically outperformed the broader market.

Tyler Durden Mon, 09/15/2025 - 14:05

Trump Is Successfully Corralling Countries To Join Trade War Against China

Trump Is Successfully Corralling Countries To Join Trade War Against China

By Benjamin Picton, senior market strategist at Rabobank

Central Banks and State Visits

The week ahead is shaping up as somewhat of a watershed for markets as the FOMC looks poised to deliver the first rate cut of the second Trump presidency. 85 of 93 analysts surveyed by Bloomberg are predicting a 25bp cut (including RaboResearch), with 6 forecasting no change and 2 plumping for an extra-large 50bp cut.

OIS futures are convinced that a cut of at least 25bps is a done deal, despite core PCE and CPI sitting well above the Fed’s 2% target at 2.9% and 3.1% respectively. A delta of 26.1bps is currently priced in to the implied Fed Funds rate following a dovish pivot from Jerome Powell at Jackson Hole, two consecutive months of dreadful jobs figures (which the FT is today laying at the feet of Trump’s tariffs) and some even more dreadful revising-away of previously reported employment gains that appear to have been – in part – magicked-up by the BLS’s Birth-Death model.

Regular readers will recall that Trump – unhappy with the swings in reported employment levels – sensationally fired BLS head Erika McEntarfer after the July payrolls report disclosed a huge 258,000 downward revision to reported employment gains in May and June.

The intrigue of this week’s FOMC meeting will be heightened by the Senate confirmation hearing of Trump acolyte Stephen Miran that is scheduled to take place later today. The administration is pushing to have Miran confirmed as replacement for Adriana Kugler – who recently stepped down from her position as a Fed Governor – before the FOMC meeting begins tomorrow. There’s little doubt that Miran would join July dissenters Bowman and Waller in pushing for a rate cut (maybe even a 50bp cut?) if his appointment is confirmed later today. President Trump certainly seems to think so, he told reporters on Sunday that he is expecting a “big cut” from the FOMC this week.

Separately, President Trump renewed a request on Sunday for a Federal appeals court to allow him to fire Fed Governor Lisa Cook prior to this week’s FOMC meeting. Bloomberg Economics lists Cook amongst the most dovish Fed Governors on its spectrometer, which seems to run counter to the idea that Trump wants to stack the FOMC with doves. Could it be that the President is convinced that Fed Governors’ determinations of the appropriateness of monetary policy are not a purely technocratic process and actually exhibit some malleability dependent on who happens to be occupying the White House? See here for our full preview of this week’s FOMC meeting.

The Fed is not the only central bank in action this week. The Bank of Canada, Bank of England, Norges Bank, Bank of Japan and Brazil Central Bank will all be meeting to set policy rates. Of those listed, the BOC and Norges Bank are expected to deliver 25bp cuts, while the BOJ, BOE and BCB keep rates unchanged.

The Bank of Canada finds itself in a similar position to the Fed, whereby the course of its monetary policy is being dictated by a rapidly deteriorating labour market even as inflation pressures remain uncomfortably elevated. As Molly Schwartz and Christian Lawrence point out here, the Canadian economy is being buffeted by tariff shocks through the trade channel which were not helped by the economic nationalism adopted by former PM Trudeau while he had one foot out the door earlier this year. Increasingly, Mark Carney seems to be walking back Trudeau’s hairy-chested approach in favour of a more “go along to get along” strategy with Canada’s Southern Neighbor.

Carney’s slow motion fold on the tariff fight is interesting in the context of Donald Trump’s suggestions late last week that NATO allies should place tariffs of 50-100% on China and India as secondary sanctions for their continued purchases of Russian energy. Uncomfortably, the EU also continues to purchase Russian energy and no leaders of NATO countries have seen fit to endorse Trump’s plan.

However, it might be worth remembering that it was only a short while ago that the 5% spending target demanded of NATO allies by the USA was seen as a non-starter and impossible under current fiscal constraints – until it wasn’t. It was similarly assumed that the EU would not sign on to a one-sided trade agreement with the United States – until it did, and South Korea wasn’t going to agree to 3.5% defence spending – until it did. Are we seeing a pattern here?

Trump has been transparent in his efforts to corral allies into supporting his strategy of isolating China economically and geopolitically, though many media outlets remain oblivious to the broader strategy and continue to see only chaos.

Canada got in ahead of time to impose tariffs of 100% on Chinese EVs and 25% on Chinese steel and aluminum, while Mexico – ahead of USMCA renegotiations slated for next year – has announced tariffs of up to 50% on cars and other products made in China and Asian economies suspected of acting as intermediaries for Chinese transshipment. The EU imposed tariffs of up to 35% on Chinese EVs in October last year, and South Korea has placed duties of 38% on Chinese steel plate and 21% on stainless steel while also making commitments to lend its expertise (and capital) to help revive US shipbuilding. Trump’s demands are prodding allies further down a protectionist path that they are already on toward common tariffs against China.

For further signs of Western leaders crabwalking towards the US’ policy demands, look no further than Australia. Having spent months pushing back on suggestions that Australia would be forced to increase defence spending in line with US demands, PM Albanese recently announced an A$1.7bn investment in a new fleet of AI-equipped undersea lethal drones to be built by US arms manufacturer Anduril. Shortly afterwards, Albanese announced a A$12bn “downpayment” to expand shipbuilding and maintenance facilities in Western Australia where US Virginia class and UK Astute class nuclear submarines will be rotationally-based and undergo sustainment under the terms of the AUKUS agreement (even as a Chinese defence industry study says that AI could make it “nearly impossible” for submarines to survive in future naval combat), thereby reducing capacity pressures on the US’ own shipbuilding and maintenance facilities. Again, are we sensing a trend here?

Trump himself will make a state visit to the UK from Tuesday this week with NVIDIA’s Jensen Huang and OpenAI’s Sam Altman in tow. The FT reports that PM Starmer is today set to announce a new US-UK agreement on nuclear energy, which apparently includes an agreement between the UK’s Centrica and US’ X-Energy to build advanced modular reactors in Hartlepool, England. Other deals covering tech, AI and Scotch whiskey are also likely to be announced.

Of course, energy is an input to all production and the immense electricity consumption of AI-enabling data centres requires abundant affordable energy to be viable. While reporting on the nuclear energy partnership the FT concurrently bemoans that “the West is buried under red tape” as risk-shy bureaucrats ladle on regulation and complexity, thereby killing competition, innovation and productivity of the kind that will be needed to realise the ‘affordable’ part of ‘abundant, affordable energy’. Trump’s trade tariffs and the various national responses to them are pointed to as another source of complexity that Western business has to deal with.

Perhaps a common external tariff would simplify things?

Tyler Durden Mon, 09/15/2025 - 13:45

Trump Is Successfully Corralling Countries To Join Trade War Against China

Trump Is Successfully Corralling Countries To Join Trade War Against China

By Benjamin Picton, senior market strategist at Rabobank

Central Banks and State Visits

The week ahead is shaping up as somewhat of a watershed for markets as the FOMC looks poised to deliver the first rate cut of the second Trump presidency. 85 of 93 analysts surveyed by Bloomberg are predicting a 25bp cut (including RaboResearch), with 6 forecasting no change and 2 plumping for an extra-large 50bp cut.

OIS futures are convinced that a cut of at least 25bps is a done deal, despite core PCE and CPI sitting well above the Fed’s 2% target at 2.9% and 3.1% respectively. A delta of 26.1bps is currently priced in to the implied Fed Funds rate following a dovish pivot from Jerome Powell at Jackson Hole, two consecutive months of dreadful jobs figures (which the FT is today laying at the feet of Trump’s tariffs) and some even more dreadful revising-away of previously reported employment gains that appear to have been – in part – magicked-up by the BLS’s Birth-Death model.

Regular readers will recall that Trump – unhappy with the swings in reported employment levels – sensationally fired BLS head Erika McEntarfer after the July payrolls report disclosed a huge 258,000 downward revision to reported employment gains in May and June.

The intrigue of this week’s FOMC meeting will be heightened by the Senate confirmation hearing of Trump acolyte Stephen Miran that is scheduled to take place later today. The administration is pushing to have Miran confirmed as replacement for Adriana Kugler – who recently stepped down from her position as a Fed Governor – before the FOMC meeting begins tomorrow. There’s little doubt that Miran would join July dissenters Bowman and Waller in pushing for a rate cut (maybe even a 50bp cut?) if his appointment is confirmed later today. President Trump certainly seems to think so, he told reporters on Sunday that he is expecting a “big cut” from the FOMC this week.

Separately, President Trump renewed a request on Sunday for a Federal appeals court to allow him to fire Fed Governor Lisa Cook prior to this week’s FOMC meeting. Bloomberg Economics lists Cook amongst the most dovish Fed Governors on its spectrometer, which seems to run counter to the idea that Trump wants to stack the FOMC with doves. Could it be that the President is convinced that Fed Governors’ determinations of the appropriateness of monetary policy are not a purely technocratic process and actually exhibit some malleability dependent on who happens to be occupying the White House? See here for our full preview of this week’s FOMC meeting.

The Fed is not the only central bank in action this week. The Bank of Canada, Bank of England, Norges Bank, Bank of Japan and Brazil Central Bank will all be meeting to set policy rates. Of those listed, the BOC and Norges Bank are expected to deliver 25bp cuts, while the BOJ, BOE and BCB keep rates unchanged.

The Bank of Canada finds itself in a similar position to the Fed, whereby the course of its monetary policy is being dictated by a rapidly deteriorating labour market even as inflation pressures remain uncomfortably elevated. As Molly Schwartz and Christian Lawrence point out here, the Canadian economy is being buffeted by tariff shocks through the trade channel which were not helped by the economic nationalism adopted by former PM Trudeau while he had one foot out the door earlier this year. Increasingly, Mark Carney seems to be walking back Trudeau’s hairy-chested approach in favour of a more “go along to get along” strategy with Canada’s Southern Neighbor.

Carney’s slow motion fold on the tariff fight is interesting in the context of Donald Trump’s suggestions late last week that NATO allies should place tariffs of 50-100% on China and India as secondary sanctions for their continued purchases of Russian energy. Uncomfortably, the EU also continues to purchase Russian energy and no leaders of NATO countries have seen fit to endorse Trump’s plan.

However, it might be worth remembering that it was only a short while ago that the 5% spending target demanded of NATO allies by the USA was seen as a non-starter and impossible under current fiscal constraints – until it wasn’t. It was similarly assumed that the EU would not sign on to a one-sided trade agreement with the United States – until it did, and South Korea wasn’t going to agree to 3.5% defence spending – until it did. Are we seeing a pattern here?

Trump has been transparent in his efforts to corral allies into supporting his strategy of isolating China economically and geopolitically, though many media outlets remain oblivious to the broader strategy and continue to see only chaos.

Canada got in ahead of time to impose tariffs of 100% on Chinese EVs and 25% on Chinese steel and aluminum, while Mexico – ahead of USMCA renegotiations slated for next year – has announced tariffs of up to 50% on cars and other products made in China and Asian economies suspected of acting as intermediaries for Chinese transshipment. The EU imposed tariffs of up to 35% on Chinese EVs in October last year, and South Korea has placed duties of 38% on Chinese steel plate and 21% on stainless steel while also making commitments to lend its expertise (and capital) to help revive US shipbuilding. Trump’s demands are prodding allies further down a protectionist path that they are already on toward common tariffs against China.

For further signs of Western leaders crabwalking towards the US’ policy demands, look no further than Australia. Having spent months pushing back on suggestions that Australia would be forced to increase defence spending in line with US demands, PM Albanese recently announced an A$1.7bn investment in a new fleet of AI-equipped undersea lethal drones to be built by US arms manufacturer Anduril. Shortly afterwards, Albanese announced a A$12bn “downpayment” to expand shipbuilding and maintenance facilities in Western Australia where US Virginia class and UK Astute class nuclear submarines will be rotationally-based and undergo sustainment under the terms of the AUKUS agreement (even as a Chinese defence industry study says that AI could make it “nearly impossible” for submarines to survive in future naval combat), thereby reducing capacity pressures on the US’ own shipbuilding and maintenance facilities. Again, are we sensing a trend here?

Trump himself will make a state visit to the UK from Tuesday this week with NVIDIA’s Jensen Huang and OpenAI’s Sam Altman in tow. The FT reports that PM Starmer is today set to announce a new US-UK agreement on nuclear energy, which apparently includes an agreement between the UK’s Centrica and US’ X-Energy to build advanced modular reactors in Hartlepool, England. Other deals covering tech, AI and Scotch whiskey are also likely to be announced.

Of course, energy is an input to all production and the immense electricity consumption of AI-enabling data centres requires abundant affordable energy to be viable. While reporting on the nuclear energy partnership the FT concurrently bemoans that “the West is buried under red tape” as risk-shy bureaucrats ladle on regulation and complexity, thereby killing competition, innovation and productivity of the kind that will be needed to realise the ‘affordable’ part of ‘abundant, affordable energy’. Trump’s trade tariffs and the various national responses to them are pointed to as another source of complexity that Western business has to deal with.

Perhaps a common external tariff would simplify things?

Tyler Durden Mon, 09/15/2025 - 13:45

Ram Cancels All-Electric Pickup Truck Plan Citing Slowing Demand

Ram Cancels All-Electric Pickup Truck Plan Citing Slowing Demand

Ram has abandoned plans to launch an electric pickup truck, according to a Sept. 12 statement from Stellantis.

“As demand for full-size battery-electric trucks slows in North America, Stellantis is reassessing its product strategy and will discontinue development of a full-size [battery-electric] pickup,” the company stated.

In December 2024, the company stated that it planned on launching its Ram 1500 battery-electric pickup in the first half of 2025.

As part of the latest decision, Ramcharger, a pickup truck featuring an electric battery and a gas engine, will be renamed the Ram 1500 REV.

“This vehicle will set a new benchmark in the half-ton segment, offering exceptional range, towing capability, and payload performance,” the Stellantis statement reads.

As Naveen Athrappully reports below for The Epoch Times, Stellantis’s decision to end its full battery-electric trucks comes as a federal tax incentive for purchasing electric vehicles (EVs) is scheduled to end this month.

The New Clean Vehicle Tax Credit grants up to $7,500 in incentives for buying an EV. The credit was offered as part of the Inflation Reduction Act, signed into law by President Joe Biden in 2022.

On July 4, President Donald Trump signed the One Big Beautiful Bill Act into law, scheduling the credit to end on Sept. 30. After this date, EV purchases will stop receiving subsidies.

In a Sept. 9 statement, General Motors said it expects negative effects over the short term from the incentives ending.

It stated that August was GM’s “best month ever” in terms of EV sales and that the company is expecting strong demand in September as well.

“The question, of course, is what’s next?“ the company stated. ”There’s no doubt we’ll see lower EV sales next quarter after tax credits end September 30, and it may take several months for the market to normalize. We will almost certainly see a smaller EV market for a while, and we won’t overproduce.”

However, GM remains positive about the EV market’s potential.

“We believe GM can continue to grow EV market share,“ the company stated. ”Our confidence in the future of our EV business starts with our portfolio. Before there was an [Inflation Reduction Act], the strongest segments were affordable EVs and luxury, and we have those bases covered with our stunning Cadillacs, the Chevrolet Equinox EV, and soon, the new Chevrolet Bolt.”

According to a Sept. 3 statement from Cox Automotive, the EV market outlook among dealers hit a “record low” in the third quarter.

“The EV market outlook index, which asked dealers about the EV market three months from now, dropped to 30, the lowest score on record,” Cox stated in a commentary.

Jonathan Smoke, chief economist at Cox, said: “The outlook for future EV sales really comes as no surprise: Dealers have calendars too; they see the end of government-backed incentives fast approaching and are expecting a slowdown as the market adjusts to a new reality in Q4.”

On his first day in office, Trump signed the “Unleashing American Energy” executive order, calling for the removal of incentives for EVs.

Burdensome and ideologically motivated regulations have impeded the development of the United States’ abundant energy resources, the order states.

The order calls for ending the EV mandate, removing regulatory barriers to motor vehicle access, and terminating state emission waivers that limit the sale of gas-powered vehicles.

In June, Trump signed a package of resolutions blocking California’s vehicle emission mandates, which included phasing out the sale of new gasoline-only vehicles by 2035.

California Gov. Gavin Newsom and California Attorney General Rob Bonta then sued the administration over the revocation of state policies, according to a June 12 statement from the governor’s office.

“Trump’s all-out assault on California continues—and this time he’s destroying our clean air and America’s global competitiveness in the process,“ Newsom said at the time. ”We are suing to stop this latest illegal action by a President who is a wholly-owned subsidiary of big polluters.”

California is also mulling funding the $7,500 tax credit for EV vehicles as a way to maintain its zero emissions market.

Meanwhile, a Sept. 9 analysis by EY (previously Ernst & Young) predicts that EV sales in the United States will slow down because of the end of incentives, legislative uncertainty, and new import tariffs.

Tyler Durden Mon, 09/15/2025 - 13:25

Ram Cancels All-Electric Pickup Truck Plan Citing Slowing Demand

Ram Cancels All-Electric Pickup Truck Plan Citing Slowing Demand

Ram has abandoned plans to launch an electric pickup truck, according to a Sept. 12 statement from Stellantis.

“As demand for full-size battery-electric trucks slows in North America, Stellantis is reassessing its product strategy and will discontinue development of a full-size [battery-electric] pickup,” the company stated.

In December 2024, the company stated that it planned on launching its Ram 1500 battery-electric pickup in the first half of 2025.

As part of the latest decision, Ramcharger, a pickup truck featuring an electric battery and a gas engine, will be renamed the Ram 1500 REV.

“This vehicle will set a new benchmark in the half-ton segment, offering exceptional range, towing capability, and payload performance,” the Stellantis statement reads.

As Naveen Athrappully reports below for The Epoch Times, Stellantis’s decision to end its full battery-electric trucks comes as a federal tax incentive for purchasing electric vehicles (EVs) is scheduled to end this month.

The New Clean Vehicle Tax Credit grants up to $7,500 in incentives for buying an EV. The credit was offered as part of the Inflation Reduction Act, signed into law by President Joe Biden in 2022.

On July 4, President Donald Trump signed the One Big Beautiful Bill Act into law, scheduling the credit to end on Sept. 30. After this date, EV purchases will stop receiving subsidies.

In a Sept. 9 statement, General Motors said it expects negative effects over the short term from the incentives ending.

It stated that August was GM’s “best month ever” in terms of EV sales and that the company is expecting strong demand in September as well.

“The question, of course, is what’s next?“ the company stated. ”There’s no doubt we’ll see lower EV sales next quarter after tax credits end September 30, and it may take several months for the market to normalize. We will almost certainly see a smaller EV market for a while, and we won’t overproduce.”

However, GM remains positive about the EV market’s potential.

“We believe GM can continue to grow EV market share,“ the company stated. ”Our confidence in the future of our EV business starts with our portfolio. Before there was an [Inflation Reduction Act], the strongest segments were affordable EVs and luxury, and we have those bases covered with our stunning Cadillacs, the Chevrolet Equinox EV, and soon, the new Chevrolet Bolt.”

According to a Sept. 3 statement from Cox Automotive, the EV market outlook among dealers hit a “record low” in the third quarter.

“The EV market outlook index, which asked dealers about the EV market three months from now, dropped to 30, the lowest score on record,” Cox stated in a commentary.

Jonathan Smoke, chief economist at Cox, said: “The outlook for future EV sales really comes as no surprise: Dealers have calendars too; they see the end of government-backed incentives fast approaching and are expecting a slowdown as the market adjusts to a new reality in Q4.”

On his first day in office, Trump signed the “Unleashing American Energy” executive order, calling for the removal of incentives for EVs.

Burdensome and ideologically motivated regulations have impeded the development of the United States’ abundant energy resources, the order states.

The order calls for ending the EV mandate, removing regulatory barriers to motor vehicle access, and terminating state emission waivers that limit the sale of gas-powered vehicles.

In June, Trump signed a package of resolutions blocking California’s vehicle emission mandates, which included phasing out the sale of new gasoline-only vehicles by 2035.

California Gov. Gavin Newsom and California Attorney General Rob Bonta then sued the administration over the revocation of state policies, according to a June 12 statement from the governor’s office.

“Trump’s all-out assault on California continues—and this time he’s destroying our clean air and America’s global competitiveness in the process,“ Newsom said at the time. ”We are suing to stop this latest illegal action by a President who is a wholly-owned subsidiary of big polluters.”

California is also mulling funding the $7,500 tax credit for EV vehicles as a way to maintain its zero emissions market.

Meanwhile, a Sept. 9 analysis by EY (previously Ernst & Young) predicts that EV sales in the United States will slow down because of the end of incentives, legislative uncertainty, and new import tariffs.

Tyler Durden Mon, 09/15/2025 - 13:25

Invest Or Index - Exploring 5-Different Strategies

Invest Or Index - Exploring 5-Different Strategies

Authored by Lance Roberts via RealInvestmentAdvice.com,

Investing is about choices. Every investor faces the same challenge: how to grow wealth while controlling risk. Over the years, distinct approaches have proven effective, though none guarantee success. Some strategies require patience. Others demand discipline in timing and execution. A few provide stability and income. There is no right or wrong way to invest, and every strategy has pros and cons. In some cycles, one approach will outperform another. That doesn’t mean a strategy is broken; it just means it is out of favor in the current environment. The problem that investors often face is that they abandon an underperforming strategy to chase another, often at precisely the wrong time.

The cycle rotation on investment strategies was discussed in detail in Why Investing Is Like Gardening:

“Like everything in life, there is a “season” and a “cycle.” When it comes to the markets, “seasons” are dictated by the “technical and economic constructs,” and the “cycles” are dictated by “valuations.” The seasons are shown in the chart below.”

With this in mind, we will examine five major investment strategies: value, growth, momentum, dividend, and index investing. Each comes with strengths and weaknesses. More importantly, each offers lessons from history’s greatest investors, including Benjamin Graham and Warren Buffett. By exploring these strategies, you can better align your portfolio with your financial goals, risk tolerance, and time horizon.

1. Value Investing

Value investing focuses on buying stocks trading below their intrinsic value. Benjamin Graham, often called the father of value investing, defined the approach in Security Analysis (1934) and later The Intelligent Investor. Graham wrote: “An investment operation is one which, upon thorough analysis, promises safety of principal and an adequate return. Operations not meeting these requirements are speculative.”

Value investing emphasizes fundamentals—strong balance sheets, healthy cash flow, and low debt. The strategy assumes markets misprice securities in the short run, but eventually, fundamentals assert themselves. Graham explained this with his famous line: “In the short run, the market is a voting machine, but in the long run, it is a weighing machine.”

“Why do quality stocks outperform over the long run? The below graph is pretty clear, although recent years could question the conclusions drawn from it: does high-quality always outperform lower-quality? Market euphoria, quantitative easing et cetera oftentimes lead to temporary deviations from this general trend.” – The Compounding Tortoise

Warren Buffett, Graham’s most famous student, captured the essence of value investing in fewer words: “Price is what you pay. Value is what you get.” He also stressed the importance of discipline through the idea of a margin of safety. By buying below the intrinsic value, investors protect themselves if the company underperforms or the market takes longer to recognize value.

Tactics for Value Investors
  • Screen for companies with low price-to-earnings and price-to-book ratios.

  • Favor firms with consistent free cash flow and limited debt.

  • Require a margin of safety before buying.

  • Diversify across sectors to avoid concentration risk.

  • Exercise patience. Recognition of value often takes years.

Value investing works best for investors willing to wait for fundamentals to assert themselves. It is not exciting, but it has delivered reliable long-term returns.

2. Growth Investing

Growth investing takes the opposite view. Instead of focusing on undervaluation, it targets companies expected to expand faster than the market. Technology, healthcare, and other innovation-driven sectors dominate this space. These companies often reinvest earnings into expansion rather than pay dividends, prioritizing growth over immediate income.

The attraction is clear: owning the next Amazon, Apple, or Nvidia before the market fully appreciates its potential can generate outsized returns. But growth investing carries risks. Paying high multiples for future earnings leaves no margin for error. If growth slows or expectations are missed, share prices fall quickly.

As noted above, growth investing works during economic expansion cycles. However, in late-cycle and pre-recessionary periods, the risks of being solely allocated to growth investing can be detrimental.

Buffett once said: “It’s far better to buy a wonderful company at a fair price than a fair company at a wonderful price.” This statement captures both value and growth perspectives. Growth matters, but only when tied to quality and reasonable valuation.

Tactics for Growth Investors
  • Target companies with sustained revenue growth above the market average.
  • Use metrics like price-to-sales and price-to-earnings-growth (PEG) to avoid overpaying.
  • Dollar-cost average into volatile names to manage timing risk.
  • Limit allocation. Growth should complement a portfolio, not dominate it.
  • Be prepared for volatility and trim exposure when valuations stretch.

Growth investing suits investors with longer time horizons and higher risk tolerance. The rewards can be significant, but discipline is essential.

3. Momentum Investing

Momentum investing rests on a simple premise: stocks that are rising tend to keep rising, while those falling tend to keep falling. Investors identify strong trends and ride them until they weaken. This strategy relies heavily on technical analysis and often involves short holding periods.

Momentum thrives in bull markets. Herd behavior pushes winners higher, creating self-reinforcing trends. But the risks are significant. Trends can reverse quickly. Benjamin Graham warned: “The more you trade, the more you are likely to lose.” Frequent trading increases costs and exposes investors to sharp reversals when sentiment shifts.

We discussed the concept in more detail in “Momentum Investing:”

“The chart shows the difference in the performance of the “value vs. growth” index. (Fidelity Value Fund vs S&P 500 Index).

Notable are the periods when “value investing” outperforms.

While it may seem like the current bull market will never end, abandoning decades of investment history would be unwise. As Howard Marks once stated:

“Rule No. 1: Most things will prove to be cyclical.

Rule No. 2: Some of the most exceptional opportunities for gain and loss come when other people forget Rule No. 1.”

Momentum is not about fundamentals. It is about psychology and timing. That makes it risky for most investors.

Tactics for Momentum Investors
  • Use strict stop-loss orders to protect capital.
  • Limit position size and portfolio exposure.
  • Focus on liquidity. Stick to names where you can exit quickly.
  • Be disciplined about exits. Do not wait for confirmation once momentum fades.
  • Treat momentum as tactical, not core.

Momentum requires constant monitoring and emotional discipline. It is not for casual investors, but it can be effective for those willing to stay vigilant.

4. Dividend Investing

Dividend investing focuses on stability and income. Investors buy companies with reliable dividend payments and strong balance sheets. This approach appeals to retirees and others who prioritize cash flow over growth. The benefit of dividend investing is that the provision of consistent income reduces reliance on capital gains. They also offer a compounding advantage when reinvested. Over time, reinvested dividends significantly increase portfolio value.

“Dividends have played a significant role in the returns investors have received during the last several decades. Going back to 1960, 85% of the cumulative total return of the S&P 500 Index can be attributed to reinvested dividends and the power of compounding.” – Hartford Funds

Dividend stocks tend to be less volatile than growth names. Companies that pay dividends often have mature businesses and steady earnings. But this stability comes with trade-offs. High-dividend companies may reinvest less in expansion, limiting growth. Dividend stocks are also sensitive to interest rate changes, as higher bond yields can make them less attractive.

Tactics for Dividend Investors
  • Seek companies with long records of raising dividends.
  • Avoid chasing yield. High yields may signal financial distress.
  • Diversify across industries such as utilities, consumer staples, and healthcare.
  • Reinvest dividends during accumulation years.
  • Transition to income withdrawals during retirement.

Dividend investing provides both income and resilience. It works best for investors seeking stability and compounding power.

5. Index Investing

Index investing is simple. Buy a portfolio that mirrors a benchmark, such as the S&P 500, and hold it. This passive approach minimizes costs and provides broad diversification.

Buffett has long recommended index funds for most investors. In his 2013 annual letter to shareholders, he wrote: “My advice to the trustee could not be simpler: Put 10% of the cash in short-term government bonds and 90% in a very low-cost S&P 500 index fund.” His reasoning is straightforward; most active managers underperform the market after fees.

Index investing reduces the need for constant decision-making. It captures market returns without trying to predict winners. But it also has drawbacks. Index funds hold every stock in the benchmark, including poor performers. They will not outperform the market, because they are the market.

Tactics for Index Investors
  • Use low-cost funds to minimize expense drag.
  • Make index funds the foundation of your portfolio.
  • Rebalance annually to maintain allocation.
  • Combine with active strategies if you want additional exposure.
  • Stay invested. The biggest risk with index investing is abandoning the strategy during downturns.

Index investing suits those seeking long-term consistency without the complexity of stock selection.

Final Thoughts

Each strategy offers lessons. Value emphasizes patience and fundamentals. Growth rewards innovation but demands valuation discipline. Momentum takes advantage of market psychology but carries high risk. Dividends provide stability and compounding. Index investing delivers simplicity and cost efficiency.

Benjamin Graham warned against speculation disguised as investing: “The essence of investment management is the management of risks, not the management of returns.” Warren Buffett added his own guardrail: “Know your circle of competence, and stick within it. The size of that circle is not very important; knowing its boundaries, however, is vital.”

In practice, the best approach often blends elements of each. Index funds can form a low-cost core. Value and dividend strategies add resilience. Growth provides upside. Momentum, if used carefully, offers tactical opportunities. Success lies not in chasing the latest idea, but in consistency through cycles.

Markets will always be volatile. Strategies will fall in and out of favor. What matters most is discipline. The investor who remains patient, diversified, and focused on long-term goals will outperform those who chase trends or panic during downturns.

Tyler Durden Mon, 09/15/2025 - 13:05

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