Is California Reaching Critical Mass?

Authored by Victor Davis Hanson via American Greatness,

By any measure, California is a failed state—and a national embarrassment.

• Taxes? It has the highest income and gas taxes in the nation.

• Roads? A Reason Foundation survey ranks it 49th among the states.

• Mass flight? Between 250,000 and 350,000 more Californians leave the state than move in each year. Housing, gas, insurance, and electricity prices? The highest in the continental U.S.

• Illegal aliens, the poor, the homeless, the foreign-born, and welfare recipients? The largest numbers in the U.S.

• Public K–12 schools? Test scores in the bottom quartile.

• Poverty? Twenty percent live below the poverty line.

So, what happened to the nation’s most richly naturally endowed—and once best governed—state?

The Left took total control—after millions of the embattled middle class fled.

Millions more impoverished immigrants, legal and illegal, took their place.

Left-wing Silicon Valley spawned some of the wealthiest elite liberal enclaves in the world.

The result was a neo-feudal society that was hardly democratic.

Millions of subsidized poor compose the bottom.

A beleaguered middle continues to shrink.

An ultra-rich apparat of left-wing coastal professionals and investors rules from the top.

As upper-bracket taxpayers fled, taxes rose on those who remained to fund expanding entitlements for newly arrived poor would-be residents. In turn, even more of the middle class left.

The remaining pyramidal economic structure ensured a Democratic monopoly—further entrenched by changing balloting laws, gerrymandering voting districts, vote harvesting, fueling public employee unions, and ignoring or undermining popular referenda.

In 2014, Californians voted for Proposition 1, a $7.5 billion water bond designed to solve the state’s chronic water storage deficit.

Included was $2.7 billion specifically designated for new reservoirs, as the last major reservoir had been built in 1980, when California had roughly half its current population.

Despite the people’s vote, bureaucracies, elected officials, and green activists blocked all new reservoir construction.

Adding insult to injury, Governor Gavin Newsom instead used $250 million from the Proposition 1 fund to blow up four dams on the Klamath River. They had once provided storage, electrical generation, recreation, and flood control.

Californians have twice voted in referenda (for Proposition 209 and against Proposition 16) to bar the use of racial preferences for contracting, admissions, and promotion in public institutions.

Most public universities simply ignored the law. They continued their “diversity” quotas under new names, relying on left-wing elected officials and judges to ignore again the will of the people.

Preferential admissions, along with racially segregated dorms and graduation ceremonies, continued under euphemisms and denials. “Theme” houses, “affinity” graduations, and “safe spaces” practice “affirmative” discrimination.

California voters in 2008 passed Proposition 11 to stop political gerrymandering by creating a supposedly nonpartisan state redistricting commission of five Democrats, five Republicans, and four Independents. Two years later, the commission took over redrawing congressional districts as well.

But Democratic lobbyists and lawyers sabotaged the goal of disinterested redistricting according to population and geography. Instead, racial preferences and the interests of the Democratic majority of incumbents prevailed to warp the intent of the voters.

Although Republicans usually achieved nearly 40 percent of the California vote in national elections, two decades later there were only seven Republicans in the 52-person congressional delegation, or a mere 13 percent of the state’s representatives.

But even that tiny contingent was considered too generous by the Left. Thus, in 2026, it will likely be further redistricted down to four or five seats.

The balloting mess in the recent Los Angeles mayoral race further reminds the nation and the world just how dysfunctional and anti-democratic California has become.

Democrats warp elections without the need for the old Chicago way of outright ballot theft or destruction. Instead, they do so in a “legal” manner by passing insane laws that ensure fraud and Democratic victories.

The winners in the strange jungle primaries—usually both Democrats—were not announced until a week after the polls closed. One of the eventual winners in mayoral race, the socialist Nithya Raman, had already given her teary concession speech after coming in well back at third on election night.

The Republican Spencer Pratt was comfortably ahead of her in second place on Election Day—only to lose, as expected, when large numbers of late ballots that broke roughly 90 percent Democratic were counted.

Remember, every registered voter is sent a mail-in ballot. If it is postmarked on election day, it can arrive at vote centers up to seven days after the election.

No one really knows whether the ballots are mailed to the dead, to former or nonexistent addresses, or to legally eligible voters—by design. In 2024, when losing presidential candidate Kamala Harris won the state by 20 points, only 0.09 percent of all ballots cast were rejected.

Anyone can register and receive a provisional ballot on the same day.

Ballot harvesting and ballot curing are legal.

Campaign operatives can round up voters, gather their ballots, and deliver them en masse to a voting center.

They can register anyone to vote, provide a ballot, and then deposit it immediately afterwards.

There is no requirement to provide proof of U.S. citizenship to get a driver’s license. Yet a license is not even needed to register.

Any credit card without a picture suffices.

And it gets worse still.

If the potential voter has no license, no Social Security number, no proof of U.S. citizenship, and no credit cards, he still will be registered—once harvesters provide him with a “unique identifier” number.

He can then vote that very day without any ID at all.

If, in California, you claim you are illiterate and cannot write your name—no problem.

You simply make a mark—anything from an X to a happy face. No one asks whether an illiterate can read the names on the ballot.

Then your handler serves as a “witness” and signs his name. Such witnesses are almost always vote harvesters, and they can sign as many ballots as they wish.

If all that doesn’t work, ballot “curers” can be called in help remedy rejected partisan ballots post facto.

Democrats now rely on the system to ensure supermajorities in both houses of the state legislature, no statewide Republican officeholders, a tiny vestigial Republican congressional contingent, and almost exclusively Democratic-appointed liberal judges.

The more Democrats control the state, the more socialist, anti-democratic—and autocratic—California becomes.

Their gift to the nation is a third-world failed state, now in danger of societal collapse.

• Fires rage—given ideologically driven prohibitions on brush and forest management, cuts in fire departments, and sheer bureaucratic incompetence.

• Multibillion-dollar boondoggle rail projects rust.

• Billions of welfare dollars are stolen with impunity. Illegal aliens who cannot speak or read English are given passes to obtain commercial trucking licenses—as if California’s critical road signs are written in some language other than English.

• A quarter of residents can’t pay their sky-high power bills on time—and correctly assume that the state and the utility companies will mostly foot their delinquent bills.

• Since 2020, over 100,000 criminals have been released early from state prisons—and most have little fear that their present and future crimes will earn them another prison sentence.

• Half the state’s births are paid for through state-supplied welfare coverage.

• And now the homeless without addresses or IDs can determine elections.

In sum, import poverty; romanticize illegal immigration; demonize the middle class; drive out private-sector capital; and exempt elites from the consequences of their own ideology—and you’re left with a state where democracy dies, along with everything else.

Tyler Durden Tue, 06/16/2026 - 16:20

Semiconductor Stocks Tumble After Microsoft Balks At $3B Oracle Cloud Deal

Chip stocks tumbled even further in late Tuesday trading following a report that Microsoft just walked away from talks with Oracle about leasing the company's cloud infrastructure because of concerns over security and compliance. 

The deal, according to Business Insider, would have been worth over $3 billion - as large Silicon Valley tech companies are running short on computing power (more on that later). 

The plan was to move some Microsoft workloads to Oracle Cloud Infrastructure, but Oracle's public cloud did not have the Federal Risk and Authorization Management Program (FedRAMP), a standardized security framework that ensures cloud services are secure enough to handle U.S. government data. Oracle was not willing to add this framework, one of the people said. -BI

Oracle has denied the scoop.

"The details mentioned in the article are inaccurate," an spokesperson said, declining to specify the inaccuracies. "Microsoft is both an OCI partner and a customer. We have a tremendously collaborative and fruitful partnership, where we often talk about ways we can expand upon our ongoing work together." 

The report sent Oracle and the semiconductor basket lower in what was already a dismal day for the sector.

Developing...

 

Tyler Durden Tue, 06/16/2026 - 16:00

FBI Raids Soros-Connected Ohio Voter Mobilization Group In Fraud Investigation

Via American Greatness,

Federal investigators executed search warrants at the headquarters of a Soros-aligned voter mobilization organization in Ohio as part of what sources described as an ongoing fraud investigation.

FBI agents searched the offices of the Ohio Organizing Collaborative on June 11 and conducted interviews with members of the organization across the state, according to reports. Some agents reportedly served subpoenas or sought to seize electronic devices during the operation.

Multiple sources familiar with the matter later told CBS News that the federal action was tied to a fraud-related investigation.

The Department of Justice declined to discuss the specifics of the case.

“Search warrants are authorized by a judge and anything said by any organization or others in the media is unfounded speculation, as the target of any investigation is not privy to the search warrant affidavit until after indictment,” a DOJ official told Fox News Digital.

The Ohio Organizing Collaborative is a nonprofit group involved in voter registration and voter mobilization efforts and works closely with Democrats in Ohio. The organization has also played a prominent role in statewide ballot campaigns and referendum efforts.

The investigation is part of the Trump administration’s effort to increase enforcement of election-related laws and allegations of voter fraud.

Tax records show the organization reported more than $10 million in revenue during 2024.

Funding for the group has come from several major Democratic-aligned organizations and labor unions, including entities connected to the Soros family, the New Venture Fund, the Tides Foundation, the American Federation of Teachers and the Service Employees International Union.

According to the report, the Soros family’s Foundation to Promote Open Society provided approximately $1.9 million to the organization between 2019 and 2020.

The Open Society Action Fund later contributed an additional $1 million to a related organization in 2021 and another $1 million in 2023.

The organization has been active in recent Ohio political battles.

It spent $250,000 in 2023 opposing a Republican-backed effort related to abortion policy and another $300,000 the following year opposing a Republican redistricting proposal.

Organization leaders criticized the federal investigation and suggested it was politically motivated.

“How can they distract and intimidate civil rights leaders and voters and community leaders who are helping people get registered to vote, and create a national spectacle about it?” OOC board member Prentiss Haney told MS Now.

“That is the only reason why they would choose to do that, do it now, in the middle of a contested political election in the state. There’s no other reason. They have no evidence of that.”

The group has previously faced scrutiny related to voter registration activities. In 2017, a paid canvasser working with the organization pleaded guilty in connection with a fraudulent voter registration operation.

Tyler Durden Tue, 06/16/2026 - 15:40

Gavin Newsom And The DOJ Probe Opened Under Biden: Behested Payments, Family Nonprofits, & Questions Of Influence

California Gov. Gavin Newsom has launched an aggressive counteroffensive against a federal investigation he calls a politically motivated "fishing expedition" - for a probe which was opened under the Biden adminisgration. 

In a video posted to X and a formal letter to the Department of Justice, Newsom demanded all internal communications since January 2025 that mention him or his wife, Jennifer Siebel Newsom. The Freedom of Information Act request targets top DOJ officials, including former Attorney General Pam Bondi who was dismissed in April 2026, and Acting officials Emil Bove and Todd Blanche. It sets a July 6, 2026 deadline.

Newsom claims federal agents have been questioning family members, friends, and former employees not because a crime has been identified, but because the Trump administration is trying to manufacture one. He attributes the scrutiny to his vocal criticism of President Trump and the possibility that he may run for president in 2028.

The DOJ has not confirmed or commented on the existence or scope of any investigation. What has surfaced publicly points to two tracks: whistleblower allegations concerning Siebel Newsom's taxes and a separate corruption inquiry linked to Newsom's former chief of staff, Dana Williamson.

The Behested Payments Pipeline

At the center of much of the speculation is California's long-standing practice of "behested payments," which are donations that politicians solicit from private interests on behalf of nonprofit organizations. Following 2021 ethics reforms, amounts above $5,000 must be disclosed, yet the rules remain relatively permissive. Critics, including Republican gubernatorial candidate Steve Hilton, have called the mechanism "literally corruption in plain sight" and pledged to ban it.

Reporting has established that Newsom directed more than $4.4 million in behested payments to the California Partners Project, a nonprofit founded by his wife that focuses on gender equity. Siebel Newsom takes no salary from the organization, but the donations have been described as essential to keeping its operations running. The group has also collaborated with Siebel Newsom's other nonprofit, The Representation Project, which pays her $150,000 annually, and has worked with her private-sector film production company.

One transaction stands out. The Washington Free Beacon reported that Newsom asked a Native American tribe to make two separate $500,000 donations to the California Partners Project. Contemporaneously, he took that tribe's side in a dispute with another tribe over a proposed casino. The juxtaposition of large directed donations to a family-linked nonprofit coinciding with favorable official action has fueled questions about whether donors with business before the state were effectively paying for access or goodwill through the governor's wife's charity.

What Might the DOJ Be Examining?

Speculation about the investigation's focus falls into several overlapping categories, none of which have been confirmed by federal authorities.

Investigators may be testing whether the pattern of soliciting large donations to a spouse's nonprofit, especially from parties with active regulatory or licensing matters before the state, crosses into improper use of public office. Federal prosecutors have pursued cases involving gratuities or implicit quid pro quos even when no explicit bribe was demanded. The casino-related donations are the most concrete example cited so far.

Even if Siebel Newsom draws no direct salary from the California Partners Project, overlapping activities with her compensated nonprofit and production company could raise questions about whether behested funds ultimately supported her professional ecosystem or lifestyle. Tax whistleblower allegations could relate to how such flows were reported on personal or organizational returns.

The separate corruption line involving former chief of staff Dana Williamson suggests investigators may be mapping relationships, communications, and decision-making processes around the time the behested payments occurred. Former aides often become key witnesses or targets in public corruption probes.

Newsom's team frames all of this as baseless harassment. They note that no charges have been filed, that the investigation appears to rely heavily on interviews rather than documentary smoking guns, and that the timing aligns with Newsom's rising national profile as a Trump critic and potential 2028 contender. The sweeping FOIA request itself functions as both a transparency demand and a political weapon intended to expose internal deliberations, force the administration to justify its actions, and rally supporters around a "witch hunt" narrative.

Political and Legal Stakes

The coming weeks will test both the durability of Newsom's counteroffensive and the substance behind the reported probe. If the DOJ produces evidence of systematic steering of donor money to family-controlled entities in exchange for official acts, it could seriously damage Newsom's national ambitions. If the investigation yields little beyond aggressive but legal fundraising practices common in California politics, Newsom will likely portray the entire episode as further proof of Trump-era weaponization of federal law enforcement.

Behested payments occupy a gray zone: legal under current California rules, yet ethically fraught when the ultimate beneficiary is the soliciting politician's spouse and when donors have simultaneous business before the state. Whether that gray zone contains federal crimes remains the open question the DOJ appears to be probing.

For now, both sides are playing to their audiences, as usual.

Tyler Durden Tue, 06/16/2026 - 15:20

The post Low-IQ Exporters Don’t Know to Eat the Tariffs: Non-Fuel Import Prices Up 3.7% appeared first on CEPR.

San Francisco Judge Dismisses xAI Trade Secret Lawsuit Against OpenAI

Authored by Kimberley Hayek via The Epoch Times,

A federal judge dismissed a trade secret lawsuit filed by Elon Musk’s xAI against OpenAI, ruling that the plaintiff failed to demonstrate the competing artificial intelligence company improperly obtained confidential information.

U.S. District Judge Rita Lin issued the order Monday in San Francisco, dismissing the case with prejudice, resulting in xAI being unable to refile an amended version of the complaint based on the same arguments.

Lin found that xAI did not make clear that OpenAI led former senior engineer Xuechen Li to reveal trade secrets or that OpenAI engineers had knowledge.

The claims were based on Li’s departure from xAI and related discussions during his recruitment with OpenAI.

The judge noted that requesting a job candidate’s prior work experience is standard practice during the recruitment phase and that one ⁠could not infer that that itself constituted an improper solicitation of confidential material.

“To hold otherwise would potentially expose employers to liability any time they inquire about a candidate’s past work,” Lin wrote.

The lawsuit, first brought in September 2025, alleged that OpenAI misappropriated trade secrets tied to chatbot development, such as source code and other proprietary details linked to xAI’s Grok system.

An earlier version of the complaint was dismissed in February 2026, with the amended filing centering primarily on a presentation Li gave about his prior Grok-related work.

OpenAI has maintained that Li never ended up working for the company and never provided it with any xAI trade secrets. In papers favoring the dismissal of the case, OpenAI’s lawyers criticized xAI, stating, “OpenAI does not need or want anyone’s trade secrets, especially not from xAI, which is failing in the marketplace and hemorrhaging talent.”

xAI and OpenAI did not immediately return a request for comment.

xAI has also brought a separate action against Li, who has denied any impropriety.

The court’s decision curtails xAI’s ability to pursue claims over recruitment discussions and the engineer’s presentation detailing his previous experience. Due to the decision being made with prejudice, any future efforts to pursue similar allegations centering on the same facts would run into procedural blocks.

The dismissal marks Musk’s second legal loss involving OpenAI in roughly a month.

On May 18, a jury threw out a separate $150 billion lawsuit in which Musk, who co-founded OpenAI alongside Altman and others in 2015, alleged that OpenAI and Altman, its chief executive, abandoned the company’s original nonprofit mission.

During the trial, Altman countered that he had never promised to keep OpenAI a nonprofit forever.

U.S. District Judge Yvonne Gonzalez Rogers concurred with the jury’s decision at the time.

“There’s a substantial amount of evidence to support the jury’s finding, which is why I was prepared to dismiss on the spot,” she said.

After leaving OpenAI, Musk started his own AI project, xAI, which is a direct competitor with OpenAI and other players in the field.

 

Tyler Durden Tue, 06/16/2026 - 15:00

Thune Signals Senate Will Pursue Stand-Alone FISA Renewal Despite Trump's Demands

Via American Greatness,

Senate Majority Leader John Thune, (R-SD,) said Monday that Senate Republicans are moving forward with plans to renew a key federal surveillance authority as a stand-alone measure, despite President Donald Trump’s insistence that it be tied to election legislation.

Thune told reporters the Senate is working to revive Section 702 of the Foreign Intelligence Surveillance Act, which expired over the weekend after Congress failed to extend it before a deadline.

“We will try and move 702 as soon as we feel like we have the votes to do it,” Thune said.

The Senate majority leader said lawmakers are counting votes and intend to bring the measure to the floor once sufficient support exists.

While we can’t know the consequences of Democrats’ decision to allow FISA to go dark, we do know it is almost certainly putting our nation at greater risk.

I hope that in the coming days, my Democrat colleagues will rethink their decision to take this program hostage and will… pic.twitter.com/7xhbpjzpwn

— Leader John Thune (@LeaderJohnThune) June 15, 2026

Section 702 allows U.S. intelligence agencies to collect communications involving foreign targets located outside the United States without obtaining traditional warrants. Advocates of the authority argue it is an important national security tool.

Thune pointed to previous comments from a senior Democrat from New Mexico in support of the surveillance program.

“From the senior Democrat from New Mexico, and I quote again. As a member of the Intelligence Committee, I have learned the vital role that FISA’s Section 702 authority plays in bolstering our nation’s ability to effectively fight terrorism, disrupt foreign cyberattacks, impede drug trafficking, and protect U.S. troops,” Thune said.

Trump has urged Congress to attach the SAVE America Act to any renewal of Section 702. The voter identification bill has stalled in the Senate despite calls from supporters to change Senate rules and bypass the chamber’s 60-vote filibuster threshold.

Thune said linking the two measures would be difficult because the SAVE America Act does not currently have enough support to pass as part of the surveillance legislation.

Trump reiterated his position Monday in a Truth Social post.

“A few Dumocrats are against FISA, with or without Bill Pulte going to DNI, as Acting. What kind of a deal is that. Besides, I’m against FISA if it doesn’t come with The Save America Act (Full version!) firmly attached to it. MAKE AMERICA GREAT AGAIN!” Trump wrote.

Asked whether he was concerned Trump could veto a stand-alone renewal, Thune said he hoped the president would ultimately support restoring the authority.

“I certainly would hope if we can get FISA off the floor, he would sign it,” Thune said.

Thune also suggested Democratic opposition to renewing Section 702 could ease after the Senate confirms Jay Clayton as director of national intelligence.

“That’s probably all contingent on Clayton getting confirmed and in position,” he said.

Democrats in both chambers blocked intelligence legislation last week following objections to Trump’s appointment of Federal Housing Finance Agency Director Bill Pulte as acting director of national intelligence.

Meanwhile, House Republicans continue to pursue the SAVE America Act. Speaker Mike Johnson, (R-LA) said Sunday that Republicans intend to advance the measure despite opposition from Democrats.

“So we’re gonna have to do it on our own. I’m gonna attach it to the reconciliation 3.0 and I’ve told the president, we’re gonna work really hard to make sure that gets to his desk,” Johnson said.

Tyler Durden Tue, 06/16/2026 - 14:20

Hardline Israeli Politicians Livid Over Iran Deal, Want Netanyahu Out So They Can Do 'Real Regime Change'

Former Prime Minister Naftali Bennett didn’t mince words on Monday: the clock for regime change in Iran starts ticking the moment Israel gets a new government.

Chairman of the “Together” party and former Prime Minister Naftali Bennett speaks during a press conference at the Knesset in Jerusalem, May 20, 2026. (photo credit: YONATAN SINDEL/FLASH90)

Speaking at the Knesset, Bennett unloaded on Prime Minister Benjamin Netanyahu’s leadership, declaring that his term "began with a civil war, continued with the massacre of October 7, and ends with a historic failure against Iran." He tied any serious effort to topple the Iranian regime directly to political change in Jerusalem.

Bennett promised that under new leadership he would revive the "Octopus Doctrine" - hitting Iran with every tool available while blocking its nuclear path - and fix the IDF’s manpower crisis by ending haredi draft exemptions. “When there are no soldiers, you have to conquer the same point again and again, and that way you can’t win,” he said. “We can restore security to Israel.”

(Abir Sultan/POOL/AFP via Getty Images) Hardliners and Hawks Slam the Deal

Bennett wasn’t alone. Several hardline and hawkish voices erupted in fury over the reported Trump-brokered US-Iran ceasefire agreement, blasting it as a lifeline to the Ayatollahs that leaves Iran’s nuclear infrastructure, ballistic missiles, and regional proxies largely intact, the jpost.com reports.

National Security Minister Itamar Ben-Gvir was blistering on X:

"Trump’s agreement does not bind us. Israel is not subject to the United States, and we are an independent and sovereign nation! We are not partners to this agreement that does not ensure our security… We must not compromise on anything less than the dismantling of Hezbollah, we must not withdraw from any territory that our fighters have captured and cleared of terror infrastructure…" - Itamar Ben-Gvir on X, June 15, 2026

Finance Minister Bezalel Smotrich was equally blunt:

"The agreement with Iran is bad for Israel and for the entire free world. Period… We will need to continue the campaign to topple the regime ourselves and in creative ways and ensure that Iran never has nuclear weapons." - Bezalel Smotrich on X, June 15, 2026

Yair Golan, leader of The Democrats, went further, calling the deal a strategic disaster engineered while Netanyahu stood “weak, sick, isolated, and lacking influence.” He accused Netanyahu of being “good for Hamas… good for Iran… good for Hezbollah” and declared:

"Replacing him is not just a political necessity - it is an existential security imperative."  - Yair Golan on X, June 15, 2026

Former IDF Chief of Staff Gadi Eisenkot described an “abyss” between the government’s empty “total victory” promises and the reality of a failed leadership that had abandoned Israeli residents. Centrist Benny Gantz warned that any restrictions on Israel’s freedom of action in Lebanon or withdrawals that endanger the north were unacceptable.

The Core Demand: No More Half-Measures

Across these statements runs a clear through-line: the current government is too weak, too constrained by American pressure, and too compromised to deliver the decisive blow against Iran and Hezbollah. Bennett and Golan explicitly frame real regime-change pressure as something that can only happen after Netanyahu is gone. Ben-Gvir and Smotrich, still in the coalition, are already signaling they will not be bound by the deal and will push for maximalist goals anyway.

Defense Minister Israel Katz tried to draw a harder line by vowing the IDF would stay in security zones in Lebanon, Syria, and Gaza “indefinitely.” But the louder chorus from Bennett, the hard right, and parts of the opposition is that only new leadership - or at least a complete break from Netanyahu’s approach - can deliver the aggressive, multi-front campaign they believe is necessary.

Tyler Durden Tue, 06/16/2026 - 14:00

Stellar 20Y Auction Stops Through, With Highest Foreign Demand In 2 Years

In a quiet day for stocks, which are now trading near session lows, which in turn is prompting a bid for safety, the Treasury complex was already trading at the best levels of the day ahead of today's Treasury auction. Then just after 1pm, the stellar results from today's 20Y auction (technically a 19 Year 11-month reopening of cusip UV8), confirmed the solid demand for US paper. 

Today's sale of $13BN in 20Y paper was solid from top to bottom. The auction priced at a high yield of 4.927%, down from 5.122% last month; it also stopped through the 4.937% When Issued by 0.1bps. This means we have had 4 auctions without a tailing 20Y auction yet.

The bid to cover was likewise impressive, rising to 2.75 from 2.55, the highest since March and above the recent average of 2.648.

The internals were even better: indirects were awarded 71.6%, a big jump from 67.7% last month and the highest since July 2024. And with Directs awarded 19.9% (below the six-auction average of 24.3%), Dealers were left holding just 8.5%, one of the lowest on record.

Overall, this was a very strong auction, which was notable since there was virtually no concessions in today's strong secondary market. It also indicated that there are few jitters that Kevin Warsh may drop a hawkish surprise during tomorrow's FOMC meeting. 

Tyler Durden Tue, 06/16/2026 - 13:47

Trump Calls On Putin To Reach Deal With Ukraine After Zelenskyy Meeting

Authored by Emel Akan via The Epoch Times,

U.S. President Donald Trump kicked off his G7 summit meetings on June 16 in the French spa town of Evian-les-Bains, joining a roundtable discussion with Ukrainian President Volodymyr Zelenskyy and other G7 leaders.

(L-R) U.S. President Donald Trump, French President Emmanuel Macron, and Ukrainian President Volodymyr Zelenskyy take part in a working session at the G7 summit in Evian-les-Bains, France, on June 16, 2026. Thibault Camus / POOL / AFP

"We had a very good meeting," Trump told reporters after the meeting. "Russia should make a deal. Russia has lost tremendous amounts of people and so has Ukraine."

Before the roundtable, Trump confirmed he also had a private discussion with Zelenskyy.

"I'm meeting with him again later on today," he added.

Trump made these comments during his bilateral meeting with the Emir of Qatar, Sheikh Tamim bin Hamad al-Thani, on the sidelines of the G7 summit.

"I'm going to do whatever I can," Trump said, to end the war in Ukraine.

Trump said he wants to focus on Ukraine now, saying Iran will soon be "back in the rearview mirror."

Leaders of the world's seven largest advanced economies have gathered in Evian-les-Bains, a lakeside town in eastern France, from June 15 to June 17 for their annual summit.

European Commission President Ursula von der Leyen said Ukraine is stronger now than it was at last year's G7 summit in Canada.

"Ukraine is in a different position," von der Leyen said at a press conference in Evian on June 15. "Ukraine is holding the frontline and even partially regaining territory."

She also praised the speed at which Ukraine was becoming a top producer of advanced military equipment.

"On the other hand, Russia is feeling the strain and pressure. Our sanctions are biting and cutting deep," she added.

In August 2025, Trump invited Putin to a meeting in Alaska to discuss a peace deal between Russia and Ukraine. However, the meeting ended with no breakthrough.

Before heading to France, Trump said he had spoken separately with both Putin and Zelenskyy on the phone on June 15.

"We had a very good conversation yesterday with President Zelenskiy and President Putin, and I think maybe we can do something there," he said following his bilateral meeting with Macron on June 15. "I really do. I think they're both open to it."

He said that now the Iran deal is finalized, "we're going to be focusing on that."

On June 15, Ukraine officially began European Union membership negotiations, launching a process that will require its government to commit to years of political reforms even as it fights the Russian invasion.

Ukraine sees EU membership as a security guarantee for a stable future once the war ends.

The Associated Press contributed to this report.

Tyler Durden Tue, 06/16/2026 - 13:00

Deal Doubts Arise As Lebanese, Iranian Officials Say US Must Rein In Israel To Secure Regional Peace

Summary:

• Iran Says Peace Deal Requires Israeli Withdrawal From Lebanon
• Hormuz Fears Ease As Trump, Ghalibaf Virtually Sign US-Iran Deal, But Energy Flows Remain Months From Normal

Polymarket:

//--> //--> Israel x Hezbollah permanent peace deal by June 30, 2026?
Yes 26% · No 74%
View full market & trade on Polymarket

Lebanese Parliament Speaker Nabih Berri and his Iranian counterpart, Mohammad Bagher Qalibaf, held a call earlier, urging the U.S. to compel Israel to end its bloody war on Lebanon, stop home demolitions, and withdraw from occupied Lebanese territory, according to Turkey's state-run Anadolu Agency.

Iranian officials earlier said that any agreement with the US aimed at peace requires Israel to withdraw its forces from southern Lebanon. 

AA continued:

The call came during a phone call between Berri and Qalibaf in which they discussed the latest regional developments following a US-Iran agreement to end their war all on fronts, including Lebanon, according to the Lebanese state news agency NNA.

The two officials also reviewed "the military and political developments related to the memorandum of understanding between the US and Iran, particularly the clause concerning ending the Israeli war on Lebanon," the agency said.

They stressed "the need for the United States, the guarantors of the memorandum of understanding and the international community to assume their responsibilities by compelling Israel to end its war, stop demolishing villages, respect Lebanon's sovereignty and immediately withdraw from the territories it has occupied."

Meanwhile, I24NEWS Hebrew reporter Guy Azriel wrote on X, "I can now confirm that Israel formally requested access to the Iran MoU and was denied. A remarkable and highly unusual development between close allies on an issue of such critical national security importance."

I can now confirm that Israel formally requested access to the Iran MoU and was denied. A remarkable and highly unusual development between close allies on an issue of such critical national security importance.

— גיא עזריאל Guy Azriel (@GuyAz) June 16, 2026

President Trump has criticized Israel's handling of its combat operations against Hezbollah as too bloody.

Hormuz Fears Ease As Trump, Ghalibaf Virtually Sign US-Iran Deal, But Energy Flows Remain Months From Normal

President Trump, Vice President JD Vance, and Iran's Parliament Speaker Mohammad Bagher Ghalibaf have virtually signed a peace deal to end the U.S. naval blockade of the Strait of Hormuz, Iranian ports, the general Gulf region, and begin 60 days of nuclear negotiations, according to CNN, citing US senior sources. 

The text of the so-called memorandum of understanding, a 14-point document that should lead to a two-month extension of the ceasefire and the start of negotiations over Iran's nuclear program, has yet to be published.

But Trump stated overnight the deal terms will be released "pretty soon," likely after the formal signing ceremony in Geneva on Friday. Trump, who is attending the G7 club summit in France, suggested that he would not attend the signing event at the end of the week. 

VP Vance is expected to lead the American delegation in Switzerland on Friday to formally sign an interim peace deal with Iranian Parliament Speaker Mohammad Bagher Ghalibaf.

Trump pushed back on MSM reports that his administration is considering a $300 billion fund for Iran as part of an agreement to end the war.

"Iran has agreed to never have a Nuclear Weapon! Also, the story that the U.S. is paying Iran 300 million Dollars is Fake News, put out by the Dumocrats!!!" Trump wrote in a Truth Social post.

Trump's Truth Social comments came shortly after VP Vance, the Iranians "could have access" to a $300 billion reconstruction fund. 

"That's the sort of thing they could have access to, funded by the Gulf Coast coalition, so long as they honor their end of the obligation," Vance told CBS News in an interview. 

The interim peace deal signals a major diplomatic breakthrough, though Israel remains opposed. Prime Minister Benjamin Netanyahu said he and Trump "do not always see eye to eye." Conflict between Israel and Iran-backed Hezbollah continued Monday in southern Lebanon. 

With the Strait of Hormuz set to open on Friday, blockades and the clogged maritime chokepoint could soon be in the rearview mirror, but the effect on physical markets could last for months, if not longer. 

Barclays commodities/energy research analyst Amarpreet Singh maintained his $100/b forecast for Brent this year. 

Singh explained:

• If the tentative agreement to ease the dual blockade of the Strait of Hormuz is realized, the timing of the restoration of freedom of navigation through the Strait of Hormuz could fall largely in line with our end-June baseline. We maintain our view that Brent should average $100/b in 2026 in that scenario.
• This marks the 16th week of the Iran war and the first eleven weeks led to a more than 350 mb decline in global total oil inventories. Last week, US commercial total oil inventories were already below the trough of early 2022 and declining at a fast pace.
• We forecast a small deficit in Q3 26 in our baseline, as the cyclical demand vector is the strongest since 2022. We recommend going long the Dec 26 minus Dec 27 calendar spread in Brent futures, at $4.67/b at the time of writing.

Normalization of physical energy markets could take many months.

He continued:

The US and Iran have reached an agreement to ease restrictions on trade flows through the Middle East Gulf, with formalization expected by Friday. While early indications suggest that freedom of navigation through the Strait of Hormuz could be restored by month‑end, this does not imply an immediate normalization of physical oil supply chains. Despite this, oil prices have moved sharply lower: prompt‑month Brent and WTI are down around 5% on the day, and the forwards‑implied 2026 Brent average has fallen to $86/b, well below our $100/b forecast. We maintain our view. Inventories are already extremely tight and continue to draw, and our balances point to a modest deficit in Q3 2026 – conditions that are inconsistent with the magnitude of the current price pullback.

This marks the 16th week since the Iran war began. We have inventory data for 14 of those weeks, with the latest observation for the week ending 5 June (Figure 1). Adjusting for shipping lags – typically two to three weeks for Middle East Gulf flows based on last year’s trade patterns – and using pre‑pandemic seasonality (2017–19 average), the first 11  weeks of the conflict resulted in a cumulative 352 mb decline in global total oil inventories, based on our weekly global total oil inventory indicator (Figure 2).

Translating the observed ~4.6 mb/d cumulative inventory draw over this period using the historical beta between inventory changes and market imbalance implies an underlying deficit of roughly 7.3 mb/d on a seasonally adjusted basis. This compares with our non‑seasonally adjusted estimated deficit of 6.6 mb/d for Q2 26. Given that Q2 typically runs a small surplus, realized outcomes to date remain broadly consistent with our balance estimates.

A common pushback to our view is that a significant share of recent inventory draws reflects releases from strategic reserves, which would limit price implications (Figure 3). Our response is that, adjusted for long‑term seasonality, US commercial total oil inventories stood 7 mb below the early‑2022 trough as of 5 June and have been declining at a weekly rate of 11 mb over the past four weeks (Figure 4). Even if the Strait normalizes by month‑end, we expect this tightening trend to persist at least through July. Moreover, unlike in 2022, current US SPR releases are structured as loans rather than outright supply additions.

This raises a key question: with commercial inventories entering peak demand season at historically tight levels and the cyclical demand impulse the strongest since 2022, why should prices not be materially higher? Around 60% of oil demand is tied to the production and movement of goods. While a gradual easing toward $80/b Brent by end‑2027 appears plausible, we see near‑term risks to prices as skewed to the upside.

Key overnight developments (courtsey of Bloomberg):

US-Iran Deal Framework

• The US and Iran are preparing to formally sign their interim peace deal in Switzerland on Friday, with a 14-point memorandum of understanding that should lead to a two-month ceasefire extension and the start of negotiations over Iran's nuclear program
• The text of the memorandum of understanding has yet to be published, though a senior US official said it's possible that happens in the next two days 
• Iran claims the lifting of the US naval blockade has begun and entered the implementation phase, according to Deputy Foreign Minister Majid Takht-Ravanchi
• Iran will allow free Hormuz transit for 60 days under the pact 

Trump Administration Statements 

• President Trump said the US is dealing with 'rational' people in Iran now and described Iran's current leadership as 'nice' to deal with 
• Trump stated that Iran will suffer if it tries to attain a nuclear weapon and that Iran will not develop or buy a nuclear weapon 
• Trump said the deal with Iran can survive if Israel attacks Lebanon, though he is 'not happy with the way Israel has handled themselves with Lebanon and with Hezbollah' 

Israel-Lebanon Tensions

• Iran's Foreign Minister Abbas Araghchi said the deal ending the war with the US would require Israel to withdraw from Lebanon 
• Iran's foreign minister said any Israeli forces remaining in southern Lebanon, or any strikes on the country, would constitute a violation of the US-Iran deal 
• Israeli officials said Monday that troops would stay in Lebanon, as 'Trump's agreement does not bind us' 

Netanyahu Political Impact

• Benjamin Netanyahu has staked his political future on his relationship with Donald Trump, but that's become a liability now that the US president has cut a deal with Iran that much of Israel opposes •
• Netanyahu is preparing for an election this fall and must contend with an agreement that will leave the Islamic Republic intact, an unpalatable prospect to Israelis of all stripes 

Strait of Hormuz Reopening 

• Two Iran-linked tankers are sailing eastward through the Strait of Hormuz ahead of the US and Iran signing an interim peace agreement on Friday that would re-open the waterway 
• Qatar is planning to rapidly boost LNG production once the Strait of Hormuz reopens, aiming to restore most of its export capacity within two months 
• QatarEnergy told buyers it expects to raise output to about 50% of capacity a month after safe passage through the strait is restored, and to roughly 80% within two months

Tyler Durden Tue, 06/16/2026 - 13:00

Deal Doubts Arise As Lebanese, Iranian Officials Say US Must Rein In Israel To Secure Regional Peace

Summary:

• Iran Says Peace Deal Requires Israeli Withdrawal From Lebanon
• Hormuz Fears Ease As Trump, Ghalibaf Virtually Sign US-Iran Deal, But Energy Flows Remain Months From Normal

Polymarket:

//--> //--> Israel x Hezbollah permanent peace deal by June 30, 2026?
Yes 26% · No 74%
View full market & trade on Polymarket

Lebanese Parliament Speaker Nabih Berri and his Iranian counterpart, Mohammad Bagher Qalibaf, held a call earlier, urging the U.S. to compel Israel to end its bloody war on Lebanon, stop home demolitions, and withdraw from occupied Lebanese territory, according to Turkey's state-run Anadolu Agency.

Iranian officials earlier said that any agreement with the US aimed at peace requires Israel to withdraw its forces from southern Lebanon. 

AA continued:

The call came during a phone call between Berri and Qalibaf in which they discussed the latest regional developments following a US-Iran agreement to end their war all on fronts, including Lebanon, according to the Lebanese state news agency NNA.

The two officials also reviewed "the military and political developments related to the memorandum of understanding between the US and Iran, particularly the clause concerning ending the Israeli war on Lebanon," the agency said.

They stressed "the need for the United States, the guarantors of the memorandum of understanding and the international community to assume their responsibilities by compelling Israel to end its war, stop demolishing villages, respect Lebanon's sovereignty and immediately withdraw from the territories it has occupied."

Meanwhile, I24NEWS Hebrew reporter Guy Azriel wrote on X, "I can now confirm that Israel formally requested access to the Iran MoU and was denied. A remarkable and highly unusual development between close allies on an issue of such critical national security importance."

I can now confirm that Israel formally requested access to the Iran MoU and was denied. A remarkable and highly unusual development between close allies on an issue of such critical national security importance.

— גיא עזריאל Guy Azriel (@GuyAz) June 16, 2026

President Trump has criticized Israel's handling of its combat operations against Hezbollah as too bloody.

Hormuz Fears Ease As Trump, Ghalibaf Virtually Sign US-Iran Deal, But Energy Flows Remain Months From Normal

President Trump, Vice President JD Vance, and Iran's Parliament Speaker Mohammad Bagher Ghalibaf have virtually signed a peace deal to end the U.S. naval blockade of the Strait of Hormuz, Iranian ports, the general Gulf region, and begin 60 days of nuclear negotiations, according to CNN, citing US senior sources. 

The text of the so-called memorandum of understanding, a 14-point document that should lead to a two-month extension of the ceasefire and the start of negotiations over Iran's nuclear program, has yet to be published.

But Trump stated overnight the deal terms will be released "pretty soon," likely after the formal signing ceremony in Geneva on Friday. Trump, who is attending the G7 club summit in France, suggested that he would not attend the signing event at the end of the week. 

VP Vance is expected to lead the American delegation in Switzerland on Friday to formally sign an interim peace deal with Iranian Parliament Speaker Mohammad Bagher Ghalibaf.

Trump pushed back on MSM reports that his administration is considering a $300 billion fund for Iran as part of an agreement to end the war.

"Iran has agreed to never have a Nuclear Weapon! Also, the story that the U.S. is paying Iran 300 million Dollars is Fake News, put out by the Dumocrats!!!" Trump wrote in a Truth Social post.

Trump's Truth Social comments came shortly after VP Vance, the Iranians "could have access" to a $300 billion reconstruction fund. 

"That's the sort of thing they could have access to, funded by the Gulf Coast coalition, so long as they honor their end of the obligation," Vance told CBS News in an interview. 

The interim peace deal signals a major diplomatic breakthrough, though Israel remains opposed. Prime Minister Benjamin Netanyahu said he and Trump "do not always see eye to eye." Conflict between Israel and Iran-backed Hezbollah continued Monday in southern Lebanon. 

With the Strait of Hormuz set to open on Friday, blockades and the clogged maritime chokepoint could soon be in the rearview mirror, but the effect on physical markets could last for months, if not longer. 

Barclays commodities/energy research analyst Amarpreet Singh maintained his $100/b forecast for Brent this year. 

Singh explained:

• If the tentative agreement to ease the dual blockade of the Strait of Hormuz is realized, the timing of the restoration of freedom of navigation through the Strait of Hormuz could fall largely in line with our end-June baseline. We maintain our view that Brent should average $100/b in 2026 in that scenario.
• This marks the 16th week of the Iran war and the first eleven weeks led to a more than 350 mb decline in global total oil inventories. Last week, US commercial total oil inventories were already below the trough of early 2022 and declining at a fast pace.
• We forecast a small deficit in Q3 26 in our baseline, as the cyclical demand vector is the strongest since 2022. We recommend going long the Dec 26 minus Dec 27 calendar spread in Brent futures, at $4.67/b at the time of writing.

Normalization of physical energy markets could take many months.

He continued:

The US and Iran have reached an agreement to ease restrictions on trade flows through the Middle East Gulf, with formalization expected by Friday. While early indications suggest that freedom of navigation through the Strait of Hormuz could be restored by month‑end, this does not imply an immediate normalization of physical oil supply chains. Despite this, oil prices have moved sharply lower: prompt‑month Brent and WTI are down around 5% on the day, and the forwards‑implied 2026 Brent average has fallen to $86/b, well below our $100/b forecast. We maintain our view. Inventories are already extremely tight and continue to draw, and our balances point to a modest deficit in Q3 2026 – conditions that are inconsistent with the magnitude of the current price pullback.

This marks the 16th week since the Iran war began. We have inventory data for 14 of those weeks, with the latest observation for the week ending 5 June (Figure 1). Adjusting for shipping lags – typically two to three weeks for Middle East Gulf flows based on last year’s trade patterns – and using pre‑pandemic seasonality (2017–19 average), the first 11  weeks of the conflict resulted in a cumulative 352 mb decline in global total oil inventories, based on our weekly global total oil inventory indicator (Figure 2).

Translating the observed ~4.6 mb/d cumulative inventory draw over this period using the historical beta between inventory changes and market imbalance implies an underlying deficit of roughly 7.3 mb/d on a seasonally adjusted basis. This compares with our non‑seasonally adjusted estimated deficit of 6.6 mb/d for Q2 26. Given that Q2 typically runs a small surplus, realized outcomes to date remain broadly consistent with our balance estimates.

A common pushback to our view is that a significant share of recent inventory draws reflects releases from strategic reserves, which would limit price implications (Figure 3). Our response is that, adjusted for long‑term seasonality, US commercial total oil inventories stood 7 mb below the early‑2022 trough as of 5 June and have been declining at a weekly rate of 11 mb over the past four weeks (Figure 4). Even if the Strait normalizes by month‑end, we expect this tightening trend to persist at least through July. Moreover, unlike in 2022, current US SPR releases are structured as loans rather than outright supply additions.

This raises a key question: with commercial inventories entering peak demand season at historically tight levels and the cyclical demand impulse the strongest since 2022, why should prices not be materially higher? Around 60% of oil demand is tied to the production and movement of goods. While a gradual easing toward $80/b Brent by end‑2027 appears plausible, we see near‑term risks to prices as skewed to the upside.

Key overnight developments (courtsey of Bloomberg):

US-Iran Deal Framework

• The US and Iran are preparing to formally sign their interim peace deal in Switzerland on Friday, with a 14-point memorandum of understanding that should lead to a two-month ceasefire extension and the start of negotiations over Iran's nuclear program
• The text of the memorandum of understanding has yet to be published, though a senior US official said it's possible that happens in the next two days 
• Iran claims the lifting of the US naval blockade has begun and entered the implementation phase, according to Deputy Foreign Minister Majid Takht-Ravanchi
• Iran will allow free Hormuz transit for 60 days under the pact 

Trump Administration Statements 

• President Trump said the US is dealing with 'rational' people in Iran now and described Iran's current leadership as 'nice' to deal with 
• Trump stated that Iran will suffer if it tries to attain a nuclear weapon and that Iran will not develop or buy a nuclear weapon 
• Trump said the deal with Iran can survive if Israel attacks Lebanon, though he is 'not happy with the way Israel has handled themselves with Lebanon and with Hezbollah' 

Israel-Lebanon Tensions

• Iran's Foreign Minister Abbas Araghchi said the deal ending the war with the US would require Israel to withdraw from Lebanon 
• Iran's foreign minister said any Israeli forces remaining in southern Lebanon, or any strikes on the country, would constitute a violation of the US-Iran deal 
• Israeli officials said Monday that troops would stay in Lebanon, as 'Trump's agreement does not bind us' 

Netanyahu Political Impact

• Benjamin Netanyahu has staked his political future on his relationship with Donald Trump, but that's become a liability now that the US president has cut a deal with Iran that much of Israel opposes •
• Netanyahu is preparing for an election this fall and must contend with an agreement that will leave the Islamic Republic intact, an unpalatable prospect to Israelis of all stripes 

Strait of Hormuz Reopening 

• Two Iran-linked tankers are sailing eastward through the Strait of Hormuz ahead of the US and Iran signing an interim peace agreement on Friday that would re-open the waterway 
• Qatar is planning to rapidly boost LNG production once the Strait of Hormuz reopens, aiming to restore most of its export capacity within two months 
• QatarEnergy told buyers it expects to raise output to about 50% of capacity a month after safe passage through the strait is restored, and to roughly 80% within two months

Tyler Durden Tue, 06/16/2026 - 13:00

Supreme Court Rejects Bid By 98-Year-Old Appeals Judge To Be Reinstated

Authored by Matthew Vadum via The Epoch Times,

The U.S. Supreme Court on June 15 declined to take up the case of a 98-year-old federal judge’s challenge to her ongoing suspension from an appeals court in the nation’s capital.

The court’s new decision in Newman v. Moore took the form of an unsigned order. No justices dissented. The court did not explain its decision.

Judge Pauline Newman, who turns 99 on June 20, sits on the U.S. Court of Appeals for the Federal Circuit. She filed a petition in March with the Supreme Court, arguing that the Federal Circuit unconstitutionally forced her out of her position after an investigation found her alleged cognitive deterioration rendered her unfit for the job.

The U.S. Court of Appeals for the Federal Circuit, which is not to be mistaken for the U.S. Court of Appeals for the District of Columbia Circuit, is a specialized court that has exclusive jurisdiction, or authority, to hear cases involving patents, trademarks, international trade, government contracts, and federal personnel and employment issues.

Newman, who was appointed in 1984 by President Ronald Reagan, is an authority on patent law and a high-profile author of dissenting court opinions.

The lead respondent in the case is Chief Federal Circuit Judge Kimberly Moore.

Moore signed an order in 2023 saying that a three-judge committee consisting of herself and two others found there was “a reasonable basis to conclude [Newman] might suffer a disability that interferes with her ability to perform the responsibilities of her office.”

Newman failed to undergo medical testing after an expert recommended it, the order said. Newman also declined to accept service of orders, saying she “was not interested in receiving any documents regarding this matter,” and directed the mailroom at her residence not to accept the orders.

Later the same year, a council of judges barred Newman from hearing new cases for one year or until she underwent court-ordered medical examinations.

“We are acutely aware that this is not a fitting capstone to Judge Newman’s exemplary and storied career,” the council said at the time, adding it had no choice because she was “no longer capable of performing the duties of her judicial office.”

In the petition, Newman’s attorneys said the judge remains intellectually and physically robust.

They cite Dr. Aaron G. Filler of the Institute for Nerve Medicine in San Diego, who produced a report in 2024 saying that the then-97-year-old Newman “appears generally healthy and active as if 20 or more years younger than her stated age.”

Newman “engages normally and fluidly in interaction and conversation without any apparent diminishment that might be associated with age in the 10th decade as to other individuals,” Filler said.

The physician said Newman was a “Super-Ager,” which means she “does not demonstrate effects of age on cognition or demeanor comparable to many others at this age.”

“Based on my experience as an attorney and my expertise as a physician, the content of her speech is entirely appropriate for a serving Court of Appeals Judge,” Filler said.

Newman sued the council in federal district court in Washington. That court dismissed the lawsuit in 2024, finding that the courts have “consistently affirmed the judiciary’s authority to police itself.”

The U.S. Court of Appeals for the District of Columbia Circuit affirmed the ruling in 2025.

Newman’s attorneys said in the petition that Moore has “improperly” used the federal Judicial Councils Reform and Judicial Conduct and Disability Act of 1980 “to perpetually sideline Judge Newman until she gives in to the bullying and retires or takes senior status.”

Senior status is a form of semi-retirement for judges aged 65 or older who have served a minimum number of years of judicial service. Such judges work reduced caseloads but retain their full salary. Taking senior status creates a vacancy on a court, which the sitting president may then fill.

U.S. Solicitor General D. John Sauer filed a brief in May on behalf of Moore, urging the Supreme Court not to accept the case.

Sauer said the lower courts correctly ruled that the law bars most district court reviews of judicial council decisions in misconduct or disability cases.

Andrew Morris, a lawyer at the New Civil Liberties Alliance, which represents Newman, said he was disappointed that the justices “did not take this opportunity to protect judicial independence.”

“We will continue to pursue available avenues to vindicate Judge Newman against her stealth impeachment,” he said.

A spokesperson for the Federal Circuit declined to comment.

Tyler Durden Tue, 06/16/2026 - 12:20

FBI Foils Alleged Suicide Drone Plot Targeting "Capitalist Elites" At UFC White House Event

Regular readers know that the threat of suicide drones has expanded beyond the modern battlefields of Ukraine and the Middle East - with potential targets including data centers and critical infrastructure. Given this potential, it was only a matter of time before an FPV-style attack was attempted on the homeland.

Today, Fox News' reports that federal agents and law enforcement partners foiled an alleged FPV attack plot targeting this past weekend's UFC Freedom 250 event in Washington, D.C.

According to the report, five people were arrested and 23 others were identified as part of a potential network of plotters. The group allegedly planned to use explosive-laden drones to hit buildings near the event, force a mass evacuation, and steer crowds toward a pre-staged sniper team.

A "second wave" was then allegedly planned to storm the White House gate, according to officials. -Fox News

FBI Director Kash Patel posted on X:

On June 10, FBI and our law enforcement partners became aware of a potential threat to the UFC America 250 event in Washington, D.C. involving individuals outside of the National Capital Region – and thanks to the rapid action of this FBI, our partners, and the Department of Justice in a multi-state operation, multiple individuals are now in custody and allegedly planned attacks were stopped cold.

On June 10, FBI and our law enforcement partners became aware of a potential threat to the UFC America 250 event in Washington, D.C. involving individuals outside of the National Capital Region – and thanks to the rapid action of this FBI, our partners, and the Department of… pic.twitter.com/PbWkIk1Lr5

— FBI Director Kash Patel (@FBIDirectorKash) June 16, 2026

Seeking comment from America's counter-drone detection industry, we reached out to DZYNE Technologies CEO Matt McCue, who told us:

"This is exactly how layered defense is supposed to work. Intelligence and interdiction upstream, counter-drone technology downstream. They are partners, not competitors. The FBI reached this one early, and that's the ideal outcome. For the threats that don't surface in advance, that's where the detection and mitigation layer has to be ready." 

McCue continued: 

"It is a relief that the FBI reached this one early, because the real problem is the back end. Once one of these is in the air over a crowd, the defender's window is measured in seconds, and every option to stop it carries its own risk to the people underneath. The advantage swings hard to the attacker the moment it launches." 

Joe Francescon, former National Security Council Senior Director for Counterterrorism Defense, told us:

"What makes this category of attacks so concerning is how little it demands of the people behind it. The technology is commercial, off-the-shelf, and everywhere. There is no meaningful legal or financial barrier to obtaining it, and no special access, insider knowledge, or training required to use it. The planning for an attack like this can happen out in the open, which is a very different threat profile from what the U.S. is used to worrying about." 

Of course, while we aren't getting names or photos for some reason, one of the suspects allegedly told investigators the aim was to target "capitalist elites," "billionaires," or politicians who received donations from the American Israel Public Affairs Committee (AIPAC).

BREAKING: Details via federal arrest affidavit reveal that a California man named Michael Alan Thomas was one of the alleged organizers of the alleged UFC White House terror plot. Feds say he admitted he believes the U.S. government is run by elites who sacrifice and eat… pic.twitter.com/L8i1bTR9Em

— Bill Melugin (@BillMelugin_) June 16, 2026

And while we don't know if this was just douchebags larping on Signal chat from mom's basement or radical militants who had secured hardware (because the FBI hasn't told us), we do know that some of the most vocal groups in America bashing "capitalist elites" and "billionaires" have been associated with the rise of socialist and communist movements. 

These groups were allowed to thrive by their 'comrades' in the Biden and Obama administrations, who instead went after parents opposing woke indoctrination, Catholics, and free speech. 

Now, we're back to combating radical left-wing terror - which even The Atlantic had to admit is 'on the rise.'

And of course, they deny they're violent - and yet;

Hasan Piker calls on his followers to kill capitalists:

“Yeah kill them! KiII those motherfuckers and murder those motherfuckers in the streets. Let the streets soak in their fucking red capitalist blood, dude.”

Democrats are campaigning with him. pic.twitter.com/YiZxGgRkgc

— Eyal Yakoby (@EYakoby) April 9, 2026

Left-Wing NGO Coverage:

• "No Longer Tolerate Radical Marxists": Rubio Sanctions Revolutionary Cuban Influence Network Tied To U.S. Left-Wing NGOs

• Bessent Signals Crackdown On Dark-Money Funded NGOs In "Weeks, Months Ahead"

• How Bad Is Foreign Influence In America's Nonprofit Universe?

They want you dead...

Tyler Durden Tue, 06/16/2026 - 11:20

Bank Of Japan Raises Rates To 1% For The First Time In 31 Years, Will Stop Reducing Bond Purchases

As widely expected, the BoJ raised the policy rate by 25bp to "around 1%" (there was one dissent from newly appointed dovish board member Asada for a hold) taking the cost of borrowing to its highest level in 31 years as the country adjusts to sustained inflation. The 0.25% increase, which was widely expected, takes Japan to what analysts said was a critical milestone in the central bank’s effort of normalizing monetary policy after years of ultra-low interest rates and deflation. The BoJ’s policy rate was last at 1% in 1995, when the central bank was in the process of lowering borrowing costs in the wake of the Japanese asset bubble burst in the late 1980s. The Board also opted to make no changes for now to their planned pace of QE taper, also in line with expectations, but likely disappointing some expectations for a shift to a higher planned pace of purchases to support JGBs

In a statement accompanying the decision, the BoJ signalled that it intended to continue that normalization process, raising the policy interest rate and degree of monetary accommodation “in response to developments in economic activity and prices as well as financial conditions”.

The policy statement showed no material change other than the view that the major downside risks to the economy have “decreased compared with a while ago”. On inflation, it pointed to “a risk of underlying CPI inflation deviating upward to a level above the price stability target of 2%”, but this is not new information given that the April Outlook Report’s BoJ core inflation forecast (ex. fresh food and energy) already implies inflation above 2% throughout the projection period through FY2028. As Deputy Governor Uchida also noted at the press conference, in terms of what has changed since the April meeting, the decline in downside growth risks appears to have been the backdrop to the decision to proceed with a rate hike this time.

Offsetting the hawkish taste of the rate hike, the BoJ also said that from April 2027 it would stop reducing its monthly purchases of Japanese government bonds, leveling off at a pace of about ¥2tn ($12.5bn) per month. That move was also widely expected by the market. The Bank noted that this decision could be changed depending on circumstances; however, if this policy is maintained, the BoJ’s balance sheet will continue to shrink, though the pace of contraction will ease from 2028 onward.

The BoJ said that while higher crude oil prices were weighing on economic activity, “the risk of a significant slowdown in the economy appears to have decreased compared with a while ago”.  It also noted that the price pass-through from higher fuel prices had been progressing relatively quickly, and could spread from business-to-business transactions to push underlying consumer price inflation above its target of 2 per cent.

Since lifting Japan out of negative interest rates in 2024, the BoJ raised rates twice last year. It has been expected to settle into a pattern of gradually tightening every six months or so. Some economists believe a further 0.25% rise could come as soon as October.

The decision to raise interest rates this week was reached by a 7-1 vote of the Monetary Policy Committee, which was down to eight members after governor Kazuo Ueda was admitted to hospital last week.  The dissenting member, Toichiro Asada  – the first member appointed under the dovish Takaichi administration – argued that the situation in the Middle East presented Japan with greater downside risks to production and employment than the upside risks to prices.

“The distribution of votes is interesting and reflects that the board is a bit more balanced now when previously it skewed comfortably hawkish,” said Stefan Angrick, head of Japan at Moody’s Analytics. “The fact is also that the BoJ has no good choices,” he added. “They can hike to stem inflationary pressure by strengthening the yen, but that would hurt the economy.”

As reported previously, BOJ governor Ueda is receiving treatment for a liver condition and did not attend the meeting or cast a vote. This week’s meeting, the first held without the governor since 2010, was chaired by one of the BoJ’s deputy governors, Ryozo Himino. In Ueda’s absence, the afternoon press conference was presented by the BoJ’s other deputy governor, Shinichi Uchida. He noted that the major difference between this week’s meeting and the one in April, when the BoJ held rates, was the memorandum agreed between the US and Iran to extend their ceasefire

Deputy governor Shinichi Uchida led the Bank of Japan’s afternoon news conference in Kazuo Ueda’s absence 

“That is a welcome move,” Uchida said. “Having said that, there is uncertainty on the pace of improvement in [oil] distribution.”

Deputy Governor Uchida chose his words carefully throughout the press conference, but most questions focused on the Bank’s assessment of upside inflation risks and the implications for future rate hikes. He reiterated the policy of continuing rate hikes as underlying inflation approaches 2%, reinforcing that stance by emphasizing the perceived upside risks to inflation. He also stated that going forward, “keeping inflation stable at around 2% will be important”.

That said, differences of opinion were evident within the Board regarding the state of underlying inflation. While the statement and the press conference conveyed the view that underlying inflation is now in the process of moving toward 2%, Takada and Tamura objected, indicating that they believe it has already reached that level. In contrast, Deputy Governor Uchida said at the press conference that many of the remaining members think it will be achieved between the second half of FY2026 and the first half of FY2027.

Another notable point was Deputy Governor Uchida’s remark that “the neutral rate estimates have too wide a range to be usable for actual policy decisions”, clearly downplaying the Bank’s published estimates of the neutral rate. Governor Ueda has long pointed to the uncertainty surrounding the estimates, but Uchida made this point more explicit. He characterized the current rate hikes as “policy adjustments toward a neutral level”, while adding that “it is not clear at what point we can judge the stance to be neutral; we won’t know until we reach it”. This likely implies that, although the policy rate has now reached the lower bound of the BoJ’s published estimates of the neutral rate, that fact does not mean the Bank will become materially more cautious about further rate hikes.

Deputy Governor Uchida avoided answering a question about consistency with the fiscal policy pursued by the Takaichi administration. Still, despite his otherwise rigorous focus on logic, his explanation for JGB purchases remained somewhat coarse – namely, that “market functioning has been steadily improving, so we decided to continue with this for the time being”. Moreover, even though the decision was made after substantial prior coordination and was almost fully priced in by the market, the fact that a member appointed under the Takaichi administration cast a dissenting vote may suggest that strong resistance to the BoJ’s policy normalization may remain within the administration.

Finally, he was also asked why Governor Ueda did not have voting rights this time, even though Deputy Governor Uchida retained voting rights when he participated remotely during his hospitalization through the previous meeting. Uchida limited his response to saying it was “for reasons related to medical treatment”.

According to JPM, this rate hike will not exert significant downward pressure on the economy, and the bank continues to expect the BoJ to deliver an additional rate hike in October in response to inflationary pressures that are likely to become more apparent towards the summer.

The yen held steady at about ¥160.2 versus the dollar following the announcement, while the Nikkei 225 stock average breached 70,000 points, a record level, before falling back.

“Traders were content that there were no overtly hawkish surprises” from the BOJ, said Tim Waterer, chief market analyst at KCM Trade. “The rate hike was fully anticipated and priced in.”

Tyler Durden Tue, 06/16/2026 - 10:40

"They Will Hear From Our Lawyers": Elon To Sue German Broadcaster Over Claim He Told Belfast Protesters To 'Hunt Migrants'

Via Remix News,

Tech trillionaire Elon Musk has said he will take legal action against German public broadcaster ZDF after it linked him to unrest in Belfast and accused him of helping instigate a "hunt" against migrants.

The dispute followed the attempted beheading of a man in Northern Ireland by a Sudanese migrant, which prompted British right-wing activist Tommy Robinson to call for nationwide protests. Musk shared Robinson's post on X and added, "Only through repeated and loud protests will anything change."

ZDF later used the incident in a segment on ZDFheute live, introducing it as part of a wider discussion about online agitation after violent crimes. Presenter Christina von Ungern-Sternberg said, A brutal attempted murder in broad daylight in Belfast. Someone films it. The video goes viral. A racist mob then hunts down migrants. This was called for by a British far-right extremist and tech billionaire Elon Musk."

She then asked, "What's behind it? Which actors have an interest in using a violent crime to incite civil war?"

The framing triggered criticism in Germany, including from journalists who said the broadcaster had gone beyond what Musk had actually written. Welt journalist Anna Schneider said, "ZDF is attributing a statement to Musk that he never made."

NDR editor Sebastian Eberle also criticized the segment, writing on X, "Dear colleagues in Mainz, with all due respect, this is unacceptable. We cannot and must not work like this. This is completely unacceptable."

ZDF later acknowledged that the wording in the segment had been flawed. Asked by Nius about the controversy, a ZDF spokesperson said, "The presenter was supposed to succinctly summarize the complex situation of the violently escalating protests and the previous calls for protests on X at the beginning of the very comprehensive and nuanced 30-minute program. However, the chosen wording was imprecise and therefore misleading."

The broadcaster said Robinson had called for protests after the Belfast knife attack and that Musk had shared the post.

Musk responded on Monday by saying he would pursue legal action against the broadcaster. "Legal action is being taken against ZDF for their outrageous lies," he wrote on X.

Legal action is being taken against ZDF for their outrageous lies

— Elon Musk (@elonmusk) June 15, 2026

This isn't the first time this year the broadcaster has been enveloped in controversy for its reporting. Back in February, the same program was forced to issue an on-air apology after it was found to have broadcast a segment containing AI-generated footage depicting U.S. Immigration and Customs Enforcement (ICE) officers arresting a migrant family.

"We invest a great deal of effort to provide you with verified information. This time, we failed to do so," it said at the time.

Tyler Durden Tue, 06/16/2026 - 10:20

China's DRAM Giant CXMT Gets Final Nod For Largest Mainland IPO Since 2022

Chengxin Memory Technology, China’s leading maker of DRAM (dynamic random-access memory) chips, has had its initial public offering approved by the country’s securities watchdog, clearing the way for the Chinese mainland’s biggest stock market listing since 2022.

CXMT’s registration to go public on Shanghai’s Nasdaq-style Star Market became effective on June 12. The Hefei-based company is planning to raise CNY29.5 billion (USD4.4 billion) by issuing 10.6 billion shares, which would also make it the Star Market’s second-largest IPO.

As the only Chinese integrated devices manufacturer that has achieved large-scale DRAM production, CXMT’s IPO has attracted investment from several leading brokerages, including China Merchants Securities and Huaan Securities, as well as from insurers, through a mix of alternative investment subsidiaries, private equity funds, and industrial funds.

CXMT has three 12-inch DRAM wafer fabs in Hefei and Beijing, giving it the largest production capacity in China and the fourth-largest globally. The firm’s industrial chain includes multiple links, such as equipment, materials, packaging, and testing, and its suppliers include more than 30 mainland-listed firms with a total market value of over CNY3 trillion (USD444 billion).

Last year, CXMT bought CNY11.5 billion worth of raw materials, including CNY4.3 billion of chemicals, CNY1.4 billion of photoresists, CNY980 million (USD145 million) of silicon wafers, CNY590 million of electronic specialty gases, and CNY250 million of target materials.

The listing is expected to further strengthen China’s self-sufficiency in memory chips, while also driving coordinated growth across the full industrial chain, from upstream materials, equipment, and components to downstream applications.

While investor attention has been centered on memory makers and other key AI component suppliers in Korea, Japan and Taiwan, Chinese AI infrastructure stocks have quietly underperformed. 

Commenting on the latest developments, Goldman's Peter Slater writes that last week's headline that the Chinese government plans to spend upwards of $300bn on a network of interconnected data centers may bring Chinese AI names back into focus. 

Noting that just like in the US, technology independence remains a key tenet of China’s national security policy, Slater writes that not dissimilar to what we’re seeing in U.S. capital markets, China’s fast-tracked IPO pipeline will bring several high-profile AI leaders public as soon as next month: 

• CXMT: China’s leading DRAM maker, #4 globally (received CSRC approval)
• Unitree: China’s leading humanoid robotics pioneer (received CSRC approval)
• YMTC: China’s leading NAND flash maker, #4 globally (formal application expected this month)  

The Goldman trader's conclusion is that "Investors may want to consider rotating into Chinese laggards with cleaner positioning and similar end-demand growth profiles in such areas as advanced packaging and optical networking and transceivers." Those who have access, may want to consider the following baskets: GSXACMEM (GS China Memory), GSXACSEM (GS China Semis) and GSXACHRO (GS China Humanoid Robots). The latter is especially pertinent in light of our recent analysis that "Goldman's Big Call Is That AI's Next Leg Is Shift From Chips To Humanoid Robotics; Here's How To Trade It"

Tyler Durden Tue, 06/16/2026 - 10:05

Yum Unloads Pizza Hut Chain As Private Equity Takes On Turnaround Challenge

Yum! Brands agreed to sell its iconic Pizza Hut chain for $2.7 billion following a strategic review, separating the struggling pizza brand from its broader restaurant portfolio, which includes KFC, Taco Bell, and The Habit Burger Grill.

LongRange Capital will acquire Pizza Hut's business outside China for $1.5 billion, while Yum China will buy the China business for $1.2 billion. Both transactions are expected to close in the third quarter.

The Stamford, Connecticut-based private equity firm typically invests in middle-market businesses, usually with a longer-term, operationally focused approach.

Its current portfolio includes 24 Hour Fitness, Alpin Unlimited, Bakkavor, Batesville, and US Synthetic.

"These transactions enable Yum! to be a more focused company that continues to leverage scale, technology, and talent to accelerate our raising the B.A.R. priorities and deliver sustained value for our stakeholders," said Chris Turner, Chief Executive Officer, Yum! Brands.

Turner added, "Under LongRange and Yum China, Pizza Hut will be well-positioned for future growth with ownership that brings deep expertise in the restaurant industry. Pizza Hut is one of the most iconic restaurant brands in the world, and we are proud of the important role it has played in Yum! 's history." 

Bloomberg noted, "Yum has owned Pizza Hut since the restaurant company spun off from PepsiCo Inc. in 1997. PepsiCo bought Pizza Hut in 1977 and snapped up Taco Bell the following year." 

At the end of 2025, Pizza Hut had about 6,300 U.S. locations, and Yum planned to close 250 additional underperforming U.S. stores in the first half of 2026. 

The deal follows years of weak performance across Pizza Hut stores, hurt by competition across the space, outdated branding, and delivery competition.

The question for LongRange Capital is what the turnaround strategy will look like and whether it will target value-seeking families, nostalgic millennials…

…and digital-first Gen-Z who have shifted to Domino's, local pizza, fast-casual, and delivery apps.

Tyler Durden Tue, 06/16/2026 - 09:35

Chinese Stocks, Yuan Drop After Dismal Data Dump: Worst Retail Sales Since COVID

China’s consumer spending and investment slumped in May to levels unseen since the pandemic, exposing risks for an increasingly two-speed economy, as Bloomberg's Chang Shu and Eric Zhu noted:

"The supply side remains robust, driven by faster-than-expected expansion in exports and AI tech sectors.

The demand side has faltered, with consumption and private non-tech investment plummeting."

Here's the details:

Industrial Production

Industrial production (IP) growth rose modestly to 4.5% yoy from 4.1% yoy thanks to stronger-than-expected exports, although automobile output growth remained weak and the ongoing global energy shock continued to weigh on chemical-related manufacturing output. In sequential terms, IP gained 0.2% mom non-annualized in May based on our estimates (vs. -1.1% mom non-annualized in April).

By industry, the April-to-May acceleration in year-on-year IP growth was led by faster output growth in computer & other equipment, electronic machinery, and utilities industries, more than offsetting slower output growth in chemicals and non-ferrous metal smelting industries.

Among major industrial products (different from by-industry breakdown), year-on-year growth in industrial robot output, metal cutting machine output and power generation rose to +27.9%, +10.7% and +4.2%, respectively, in May from +15.1%, +7.5% and +2.6% in April, while automobile, computer and smartphone output growth in year-on-year terms slowed to -3.2%, -19.4% and -8.8%, respectively, from -2.6%, -9.3% and +4.7%. 

Retail Sales

Nominal retail sales growth continued to slow in May, to -0.6% yoy from +0.2% yoy in April, the lowest since December 2022 (during the COVID exit wave), with year-on-year growth in goods sales and restaurant sales revenue both weakening. 

Under retail sales, big-ticket items led the decline. Car purchases, which make up about 8% of the overall figure, plunged 16% in May from a year ago. Excluding autos, retail sales grew 1.1% in May.

Sales of home appliances as well as construction and decoration materials also contracted at a double-digit pace.

Property

Property activity data remained under pressure in May despite recent green shoots in large cities.

Year-on-year growth in property sales registered -13.1% in volume (floor space) terms and -9.5% in value terms in May (vs. -9.5%/-7.7% in April). New home under construction and completions growth slowed to -12.3% yoy and -19.9% yoy, respectively in May from -12.1% yoy and -18.8% yoy in April. New home starts growth remained depressed at -24.6% yoy in May, despite a modest improvement from -26.6% yoy in April. NBS and private sector data both showed continued downward pressure on home prices in May, mainly in lower-tier cities.

FAI

Fixed asset investment (FAI) growth fell further -10.6% yoy in May from -8.2% yoy in April on a single-month basis (Exhibit 3), reflecting both adverse weather conditions (e.g., heavy rainfall in southern and central China and a heatwave in northern China) and a still-slow pace of government bond issuance. This takes year-to-date FAI growth to -4.1% yoy in May (vs. -1.6% yoy in April).

By sector, year-on-year growth in infrastructure, property and other investment (i.e., services and agriculture-related) fell to -11.2%, -24.3% and -13.2%, respectively, in May from -5.6%, -20.1% and -10.6% in April, while manufacturing investment growth improved slightly to -4.1% yoy from -4.8% yoy. That said, we caution that the occasional NBS "statistical correction" of previously over-reported data may have exaggerated the volatility of reported FAI growth in recent quarters, as the year-on-year contraction in crude steel and cement output narrowed modestly in May.

Further evidence emerged indicating a growing divergence in the economy. Investment in high-tech industries expanded 4.5%, with capital expenditure of semiconductor and lithium battery makers up 11% and 25%, respectively.

Labor Market

Regarding the labor market, both the nationwide and 31-city unemployment rates (not seasonally adjusted) edged down to 5.1% for May from 5.2% for April.

After seasonal adjustment, we estimate the nationwide unemployment rate inched down to 5.2% in May from 5.3% in April, and the 31-city metric remained flat at 5.2%.

*  *  *

NBS spokesman Fu Linghui attributed the slump in investment and retail sales to factors including heavy rainfall.

Fu also pointed to last year’s high level of spending driven by subsidies as well as the economy’s transition to new growth drivers.

“Since the second quarter, certain economic indicators slowed because of complex changes in the global environment as well as structural adjustment in the domestic economy,” said Fu in a briefing in Beijing.

“Some companies are facing difficulties. But looking at the overall trend, the momentum of the economy remains overall stable.”

Interestingly, Bloomberg notes that the worse-than-expected slump in retail sales and investment also reignited questions around their accuracy in gauging broader economic health.

The services production index, which inched up to 4.4% on year in May, has a stronger correlation with the pattern of growth in gross domestic product than retail sales, which comprised mostly goods, according to Yu Song, chief China economist at UBS Securities. Inconsistency in the fixed-asset investment data that became apparent last year also mean it might exaggerate the weakness, he said.

“Second-quarter GDP data looks to be weak, but not quite as weak as one would expect from April data,” Song told Bloomberg Television.

Some analysts estimated growth at near 4% in April, tracking below the government’s official full-year target of 4.5% to 5%.

The result of all this was initial yuan weakness (a day after reaching its strongest level since early 2023) and decline in Chinese stocks, but as the session wore on, those initial dips recovered (except for Hang Seng China Enterprises)...

...as the weakness reflexively raises market-watchers hopes for supportive stimulus:

“While there are pockets of strength in tech and export-related industries, the broader economy is still struggling,” said Lynn Song, chief economist for Greater China at ING Bank NV.

“This could eventually add pressure on policymakers to ease policy.”

But without stronger demand at home, the economy is at risk of a deeper slowdown even as the US-Iran deal to reopen the Strait of Hormuz holds out the promise of stabilizing global shipping and energy prices.

Finally, Goldman sees downside risk to their Q2 real GDP growth forecast (4.0% qoq sa annualized and 4.7% yoy currently).

However, the latest development in the Middle East and recent policy communications bode well for a sequential growth improvement in Q3, especially given the significant unused government bond quota left for the remainder of this year.

Goldman sees July as an important window to monitor potential policy fine-tuning: if Q2 GDP disappoints meaningfully, there is a decent chance for policymakers to step up their easing rhetoric in the July Politburo meeting and draw on remaining fiscal buffers quickly to stabilize investment and growth.

Tyler Durden Tue, 06/16/2026 - 09:24

Utterly Flocked: "We-Don't-Track-People"-Firm Deploys Nationwide Network Of Warrantless Pedestrian-Tracking Cameras

Flock Safety, the Atlanta-based private surveillance firm, insists its cameras are not tracking people. Yet its own systems, training materials, and expanding product line tell a different story -one of a rapidly growing, warrantless mass surveillance infrastructure that logs vehicle movements, follows pedestrians with AI, and feeds data-hungry police departments across the country.

A new investigative report highlights how Flock's network - now encompassing tens of thousands of cameras - enables police to reconstruct months of travel history for any vehicle with a few clicks, no warrant required. Security researchers and activists are pushing back, mapping the devices and exposing security lapses that leave feeds openly accessible online.

DeFlock and the Scale of the Panopticon

In Boulder, Colorado, activist Will Freeman operates DeFlock.org, which has mapped over 88,000 Flock cameras nationwide. The app reveals camera locations and orientations, underscoring how pervasive the network has become in public spaces. Flock's license plate readers snap time-stamped photos of every passing vehicle, allowing historical queries spanning up to 30 days.

As security researcher Benn Jordan noted, plotting that data on a map effectively places a month-long GPS tracker on your car. Jordan, who previously discovered dozens of Flock cameras streaming publicly, described AI-driven features that zoom in and follow individuals - whether persons of interest or random passersby, Atlanta News First reports.

As we've previously reported on the battle brewing between mass surveillance tech and individual liberty, tools sold for "public safety" quietly erode Fourth Amendment protections against unreasonable searches.

Company Denials vs. Training Videos and Hardware Reality

Flock's Chief Communications Officer Josh Thomas claims the company aids in solving around 700,000 crimes annually. He disputes "tracking" characterizations, arguing the system captures discrete points in time rather than continuous monitoring.

However, Flock's own webinars contradict this:

"The example of tracking that vehicle from location to location to location," a Flock webinar instructor said.

"And you're able to track your suspect's movements," another webinar showed.

In one training video, a police officer described using Flock cameras to follow a suspect across state lines: "And we were able to track him all the way over to another state, in Kentucky."

Flock's Condor cameras go further: These pan-tilt-zoom units use AI to detect and automatically follow human movement. When confronted, Thomas maintained the company does not track people, attributing features like "Guardian Mode" to mere object detection rather than persistent tracking. Yet demonstrations show the cameras panning and tilting in real-time to keep subjects in frame.

Critics like Jordan suggest the pedestrian-tracking hardware emerged conveniently after earlier denials that Flock only captured license plates.

Security Nightmares and Misuse

Jordan and collaborators found over 70 Condor cameras streaming openly online without passwords. He published the video on YouTube along with 404 Media.

"I watched a man leave his house in the morning. I watched a woman jogging alone on a forest trail in Georgia," Jordan said.

Thomas said the exposure was an accident caused by Verizon sending the wrong SIM cards with public IP addresses on roughly 60-70 devices, which were fixed once discovered. Verizon did not respond to requests for comment.

Police officers nationwide have been arrested for using Flock cameras to stalk former partners and love interests. Freeman and Jordan warn that human nature makes such misuse inevitable in a system logging everyone's movements by default. Thomas pointed to audit logs and accountability measures, but activists argue the architecture itself invites overreach.

The "Safety" Trade-Off and Pushback

Flock touts its role in preventing mass violence and solving crimes, with Thomas positioning the company on the side of those "fighting to stop" such threats. Yet more than two dozen cities, including Denver, have canceled contracts amid privacy concerns and questions over data access.

Freeman, demonstrating DeFlock's route-planning feature that avoids camera-dense paths (turning a quick 1.7-mile trip into a 14-minute detour), argues the default of logging all citizens - not just suspects - is the core problem. He plans to keep "tracking the trackers" in the absence of oversight.

This saga fits a familiar pattern of privatized surveillance creep: Companies like Flock build the infrastructure, police query it with minimal friction, and civil liberties erode under the banner of security. As similar systems proliferate, the question remains whether Americans are willing to accept a perpetual digital dragnet in exchange for promised safety.

Tyler Durden Tue, 06/16/2026 - 08:45