Study Of Military Meals Finds Low Nutrients, Concerning Contaminants

Authored by Ryan Morgan via The Epoch Times (emphasis ours),

America’s troops may be getting few of the nutrients they expect, and many harmful compounds they don’t, according to a new laboratory study of military rations and meals provided to troops on armed forces bases.

A U.S. Marine eats a military field ration during a field exercise at Combined Arms Training Center Camp Fuji, Japan, on Dec. 11, 2025. Lance Cpl. Weston Brown/U.S. Marine Corps via DVIDS

The nonprofit Moms Across America, working in collaboration with the military chapter of Children’s Health Defense and the Centner Academy, commissioned laboratory testing of 40 different military food samples to examine their nutritional value.

The study examined 16 cafeteria meal samples from six different military bases, as well as 24 different Meal, Ready-to-Eat (MRE) field rations that troops rely on when deployed in combat zones.

A report of the study findings published on Feb. 4 states that 100 percent of the food samples studied contained harmful pesticide residues.

One sample of teriyaki beef stick tested positive for nitroimidazole, a veterinary medication that the U.S. government banned for use in food-producing animals.

The study also found samples with high levels of heavy metals, including arsenic levels at 430 percent higher than the Environmental Protection Agency’s safe drinking water standards.

Laboratory testing detected glyphosate—a herbicide and crop desiccant—in 95 percent of the military meal samples.

The study also found the meal samples had nutrient levels far below U.S. Department of Agriculture (USDA) standards.

“America’s service members are trained to withstand extreme physical, mental, and environmental stress in defense of the nation,” said licensed nutritionist and Moms Across America board member Kendall Mackintosh. ”In return, the United States has a fundamental obligation to protect their health, safety, and well-being, especially when it comes to the food they are required to consume daily, often exclusively, during training, deployment, and combat operations.”

Controversial Herbicide Found in Military Rations

The authors of the new report on the nutritional value of military meals raised concerns about multiple potential harmful effects from glyphosate.

They described the compound as a carcinogen, meaning it can raise the risk of cancer. They added glyphosate is a chelating compound that can block the uptake of nutrients into food crops.

“I would say that the glyphosate and the pesticides were the two most concerning observations after the study was published,” Carolyn Rocco, the co-founder of the military chapter of Children’s Health Defense, said in an interview with The Epoch Times.

Glyphosate has been a subject of recent scrutiny in the medical community.

Tractor spreading Round-Up (glyphosate) on wheat straw with a spraying machine in Normandy, France, September 2007. Leitenberger Photography/Shutterstock

A frequently cited 2000 study had described glyphosate as not harmful. But in December, the journal that published the study retracted it, citing ethical concerns.

Groups like Moms Across America and Children’s Health Defense have associated with the Make America Healthy Again (MAHA) movement.

This movement has been at the forefront of efforts challenging glyphosate’s broad use across the U.S. agricultural industry.

Speaking with The Epoch Times, Moms Across America founder and executive director Zen Honeycutt said her organization began to investigate the herbicidal compound in 2013.

“We cannot MAHA without getting glyphosate out of our food system,” Honeycutt said.

Nutrition as a National Security Matter

Moms Across America has commissioned similar nutrition studies of lunches found at school cafeterias, as well as fast food restaurants.

As she spoke with The Epoch Times, Honeycutt acknowledged that the problems found in the recent study of military meals are not far out of step with the findings from these previous studies.

“We would imagine that all conventional standard American diet food would be the same as this,” she said.

On the other hand, Moms Across America and Children’s Health Defense are using their latest study findings to present America’s overall nutritional outlook as a national security concern.

The report on the lab results ends with several calls to action.

Honeycutt noted President Donald Trump’s recent calls for the U.S. military budget to grow by around 60 percent next year, to $1.5 trillion.

“We’re calling for President Trump to designate less than 2 percent of the military $1.5 trillion budget to go to supporting farmers, American farmers, to transition to regenerative, organic farming,” she said.

Chow hall employees and a Marine officer serve food to Marines and sailors during the 241st Navy Birthday Meal held at Marine Corps Air Station New River, on Oct. 13, 2016. Cpl. Melodie Snarr/U.S. Marine Corps via DVIDS

Through continuing investment in efforts to promote organic farming, Honeycutt hopes to see the U.S. military and then the broader general public gain increased access to more nutritious food.

U.S. Army Lt. Col. Theresa Long, who serves as a senior military adviser to Health and Human Services Secretary Robert F. Kennedy, Jr., elevated the recent study of military meals in a Jan. 15 letter to Kennedy and Secretary of War Pete Hegseth.

“Food safety and security is a national security issue,” Long wrote.

Likewise, Long called on Kennedy and Hegseth to collaborate on efforts to address food security.

The MAHA movement was a key plank of Kennedy’s 2024 presidential campaign.

Kennedy also worked as the chief legal counsel for Children’s Health Defense until joining the Trump administration as Health and Human Services secretary.

Since taking charge at the Pentagon, Hegseth has emphasized efforts to whip the military into shape.

At an unprecedented gathering of senior military officers at the Quantico Marine Base in Virginia in September, Hegseth expressed disdain at the sight of overweight troops.

The Pentagon did not respond by publication time to a request for comment on Long’s letter and the findings from the new nutritional study on military meals.

*  *  *

Please consider supporting ZeroHedge with the purchase of organic mangoes. 

Tyler Durden Thu, 02/05/2026 - 22:35

Ilhan Omar's Winery Exposed As Fake Shell For Alleged Money Laundering

Authored by Steve Watson via Modernity.news,

A damning on-site investigation has revealed that the winery co-owned by Ilhan Omar’s husband is nothing more than a phantom operation, fueling suspicions of fraud amid scrutiny of her skyrocketing wealth.

Angela Rose, the journalist behind the probe, visited the listed address in Santa Rosa, California, only to discover glaring discrepancies that point to a shell company setup.

“I visited the principal address of ESTCRU winery. This winery is co owned by US Rep of Minnesota Ilhan Omar’s husband, Timothy Mynett, yet seems to allegedly be a shell business used to launder funds,” Rose stated in her report.

Journalist visits Minnesota Rep Ilhan’s Omar’s winery and CONFIRMS IT’S FAKE

40+ wineries operate out of the same address, but the location owner says Ilhan Omar’s winery isn’t there despite this being the address (FRAUD)

Angela Rose “No business license exists for ESTRCRU… pic.twitter.com/V2qyxi0udu

— Wall Street Apes (@WallStreetApes) February 5, 2026

She detailed the revenue surge: “In 2024 they made about $15,000 and in 2025 it exploded to up to $5 million dollars… yet they weren’t producing any wine.”

Rose highlighted the lack of legitimacy: “No business license exists for ESTRCRU (Ilhan Omar’s Winery) at this address. The other wineries here are properly licensed.”

The address, 1160 Hopper Ave Apt B in Santa Rosa, houses over 40 wineries, but the location owner confirmed ESTCRU isn’t among them. Public records show it’s tied to a foreign processing center with no actual business license for ESTCRU.

This bombshell comes as Omar’s finances face intense federal scrutiny. Her 2024 financial disclosure reported assets between $6 million and $30 million, a massive leap from the $40,000 to $250,000 in 2023. The bulk ties to her husband’s winery and a venture capital firm.

The Justice Department launched an investigation into Omar’s finances, campaign spending, and foreign interactions in June 2024 under the Biden administration. Though it reportedly stalled due to lack of evidence, President Trump has revived the push, vowing to expose any impropriety.

Ilhan Omar faces investigation after outrage over massive wealth gains and aid fraud in Minnesota https://t.co/tI5655FH4i pic.twitter.com/ANEeBgdOoG

— New York Post (@nypost) December 29, 2025

Trump highlighted the probe, noting Omar arrived from Somalia with little and now boasts family wealth up to $30 million, amid broader Minnesota fraud inquiries.

?BOMBSHELL: Ilhan Omar is DONE! The rats are scattering and most of them are BEGGING reporters to hear their stories!

Whistleblowers now confirm her campaign funneled a massive amount of money to her husband’s firm while Somali-linked networks in Minneapolis ran one of the… pic.twitter.com/KHCZAMr3XD

— Gunther Eagleman™ (@GuntherEagleman) December 5, 2025

Last week Omar was accused of staging an “attack” at a town hall, where she was sprayed with apple cider vinegar by a man acting strangely, in order to divert attention from her wealth investigations.

Your support is crucial in helping us defeat mass censorship. Please consider donating via Locals or check out our unique merch. Follow us on X @ModernityNews.

Tyler Durden Thu, 02/05/2026 - 21:45

Senate Bill Would Ensure Data Centers Do Not Pass Energy Costs Onto Consumers

Senator Josh Hawley (R-Mo.) is circulating a bill to require data centers to bring their own power when constructing these new power-hungry facilities, Axios reports this morning.

We’ve detailed the growing resistance to the construction of new data centers for months now as several studies have demonstrated electricity prices spiking around new data center facilities, as they usually consume significantly more power than the grids they’re connected to can offer.

To prevent skyrocketing electric bills, every state has to follow the Texas example: each data center must have its own "behind the meter" onsite power generation.

“We believe data centers should pay for the full cost of their power,” Dominion Energy spokesperson Aaron Ruby… https://t.co/0u1owTeAs8 pic.twitter.com/8W421s3rzV

— zerohedge (@zerohedge) November 23, 2025

One of the most frequently identified solutions is requiring new data centers and other large power loads to construct their facilities alongside new power generation facilities, i.e. "behind-the-meter.". This could prevent and even reverse much of the rate increases that have been plaguing households across the US.

It’s a simple supply and demand issue. A new power consumer shows up and immediately starts draining hundreds of megawatt of power while the new power generation being developed by the utility servicing the connected grid takes several years to add new generation capacity. The pitch circulated by lawmakers is to require new data centers to show up with their own power and hand, therefore preventing the pass on of costs to household rate payers.

There’s a slew of ways to go about powering a multi-megawatt or gigawatt scale data center. The method most frequently referenced for reducing rate payer burden is behind-the-meter arrangements. This means the power generator is directly connected to the facility through on-site transmission structures without interacting with the grid in any way.

Alternatively, facilities could opt for the front-of-the-meter arrangement where they still bring their own power, but transmit the power through the local grid, even if they are located physically near each other. This arrangement supports the grid while still minimizing cost to the rate payer because of the addition of overall capacity. Connecting to the grid and utilizing existing transmission lines and transformers could minimize time to initial operation, as well as require grid infrastructure upgrades. Requiring the new data center to finance the grid upgrades would reduce consumer costs as well.

The bill being pushed by Sen Hawley is calling for behind-the-meter arrangements, but the legislation could change as it passes through everyone’s hands. Most grid advocates have called for front-of-the-meter arrangements to maximize household consumer benefit.

Tyler Durden Thu, 02/05/2026 - 21:20

How To Feel Joy In A Dopamine-Saturated World

Authored by Sheridan Genrich via The Epoch Times (emphasis ours),

Your brain treats what it sees in Instagram reels the same way it treats cocaine. Both experiences flood a thumbnail-sized region of the brain with dopamine—a chemical that makes you want more, right now. The problem is that after a certain amount of dopamine hits, your brain adapts by turning down the pleasure volume. As a result, things that once made you feel good are no longer enough.

Vink Fan/Shutterstock

If you’re finding it harder to feel simple joy and genuine connections, you’re experiencing what addiction psychiatrists now recognize as dopamine overload, a state where constant stimulation—especially from cellphones, social media, and ultra-processed foods—quietly erodes your ability to feel your happiest emotions and leaves relationships feeling painfully empty. However, there is hope—through learning to rebalance our reward systems, we can rediscover contentment in simple things.​

The Dopamine Hijack

Dopamine is a brain chemical messenger that helps drive motivation, heightens anticipation, and reinforces the experiences your brain labels as rewarding. In healthy balance, it nudges us toward naturally meaningful activities—such as working toward goals, sharing meals, spending time with friends—that have long supported survival and human connection.

However, modern life delivers dopamine in doses and speeds the human brain is not equipped to handle.

“Things that are addictive release a whole lot of dopamine all at once in a part of the brain called the nucleus accumbens,” Addiction psychiatrist and author Dr. Anna Lembke, a leading voice on how modern habits hijack the brain’s reward circuitry, told The Epoch Times. “The more dopamine that is released there, and the faster it is released, the more likely we see addictive behavior.”

*  *  * Get 30% off in February on Peak Focus!

With long-term exposure to highly addictive substances and behaviors, Lembke said, the brain undergoes neuroadaptation. “It starts to downregulate dopamine receptors to bring levels back to baseline, and people actually end up in a dopamine deficit state—below normal levels of dopamine firing.” In other words, the brain turns down its sensitivity to dopamine, leaving people feeling flat unless they keep chasing stronger stimulation.

Over time, this process fundamentally shifts what it takes to feel normal.

“We change our hedonic set point. We need more of the substance, in more potent forms, just to bring dopamine levels back up to baseline,” Lembke said. Sugar and short‑form videos strongly stimulate the same dopamine‑based reward pathways targeted by drugs and alcohol, which can lead the brain to treat them as if they were vital rewards.

To adapt to all the dopamine, the brain may settle into a dopamine deficit state, which can feel like clinical depression, anxiety, or emotional numbness.

When Everything Feels Numb

As dopamine overload persists, many people describe a kind of emotional numbness: feeling flat, struggling to enjoy life, and growing distant from loved ones.

“You can have this numbing or narrowing phenomenon where nothing brings joy anymore,” Lembke said. “People feel flat, anxious, or disconnected, and it can look a lot like depression.”

The difference is that clinical depression often responds to medication and therapy. Dopamine overload requires something simpler, though not easier: you have to stop the activity that creates it.

Growing evidence links heavy digital use to mental health symptoms, including anxiety, depression, loneliness, and altered decision‑making. Lembke pointed to experiments in which people either quit social media for three to four weeks or cut back to about 30 to 60 minutes a day, which resulted in reported improvements in anxiety, depression, and loneliness.

Lembke offered a practical diagnostic test: “If you’re not sure you’re addicted to something, just try stopping it for 30 days. The level of difficulty you have doing that can tell you a lot about the nature of your attachment.”

The 30-Day Reset

The good news is that the brain’s reward system is not fixed. It is adaptable and can relearn to find satisfaction in real, offline experiences. A long enough break from high‑dopamine habits, Lembke said, gives the brain space to switch its reward system back on and start producing feel‑good chemistry again.

“When people stop an addictive behavior, their dopamine levels do not crash forever—they tend to feel worse at first, then gradually better,” Lembke said, noting that most people begin to emerge from acute withdrawal after about 10 to 14 days as cravings ease. By weeks three and four, many report feeling better than they have in months or even years.

For many, a 30‑day abstinence trial—or “dopamine detox”—is a realistic window to start resetting reward pathways and feeling the benefits, she said. In practical terms, that often means roughly two tough weeks, a couple of weeks of gradual relief, and about a month to sense a genuine reset.

Experts have found that the goal of a dopamine detox is not to eliminate dopamine—which would be impossible and unhealthy—but to reduce overstimulating habits so the brain can rebalance and you can enjoy slower, more meaningful rewards again.

To make a detox doable in everyday life, Lembke focuses on self‑binding—setting up guardrails that make it harder to slide back into the habit.

• Create Physical Barriers: Don’t rely on willpower. Delete apps and unsubscribe from feeds. Clear alcohol, drugs, junk foods, and trigger foods out of your house.
• Choose Low‑Dopamine Substitutes: Swap mindless scrolling or snacking for reading, walking, hobbies, or time in nature that offer calmer, more lasting rewards.​
• Set Firm Boundaries: Build device‑free blocks into your day, keep phones out of the bedroom, and avoid constant multitasking that chases tiny hits of stimulation.​
• Build Basic Routines: Regular movement and sleep, and nourishing food help steady both dopamine and stress systems.​
• Watch for the Binge Cycle: Notice any “all or nothing” streaks—days of restraint followed by blowouts—that tend to spike dopamine and crash mood.
• Do Hard Things in Small Doses: Cold showers, morning exercise, cleaning out a messy closet, meditation, are activities that require effort up front but leave you feeling better afterward. They teach your brain to generate its own satisfaction instead of depending on quick hits.​
• Track the Evidence: Track sleep, mood, and focus for a few weeks as you cut back; small changes are often a sign your reward system is resetting.​

Rediscover Natural Rewards

Once you start lowering quick dopamine spikes, it becomes essential to lean into natural sources of pleasure—the kinds of activities that have long supported human well‑being.​

• Exercise: Regular movement can lift mood and support healthy dopamine, serotonin, and endorphin signaling in a steady, sustainable way. A 20-minute walk does more for your brain than an hour of scrolling.​
• Social Connection: Deep conversations, laughter, and physical affection engage reward and bonding systems that help protect against stress and isolation. Face-to-face always beats FaceTime. ​
• Mindfulness and Meditation: These practices can calm the stress response and gradually restore motivation for simple, everyday joys.​
• Creative Engagement: Making or enjoying art activates reward pathways without the same risk of desensitization seen with high‑intensity digital rewards.​
• Meaningful Challenge: Working toward meaningful goals gives real dopamine hits linked to effort and progress, not just novelty.
• [ZH: Men, stop jerking off so much]: So we hear...

Scientific reviews and clinical programs highlight that turning toward natural rewards, rather than engineered instant ones, is how the human brain is built to thrive.

It may be time to get professional help if cutting back makes you very anxious, low, or causes withdrawal‑like symptoms that make normal life harder. You should also talk to a clinician before any dopamine detox if you have serious mental health symptoms such as suicidal thoughts, psychosis, or very bad depression or anxiety; a history of addiction or substance problems; or take medicines that affect dopamine, such as antidepressants, stimulants, Parkinson’s drugs, or antipsychotics.

Build Lasting Contentment and Hope

Lasting contentment rarely comes from a one‑time “detox.” It grows from small, steady changes, ideally with support from others.

Staying connected to encouraging friends, family, or groups makes it easier to keep healthier habits and to recover from relapses. Simple routines such as swapping one high‑dopamine habit at a time, checking in daily on triggers and small wins, and giving yourself credit for each step forward help progress stick.

If emotional numbness or compulsive cycles continue, seek help from a mental health professional who can guide you toward feeling stable and engaged with everyday life again. For anyone feeling overwhelmed or out of control, take heart—with support and steady effort, many people rebuild their lives and rediscover real pleasure in simple, everyday moments.

Tyler Durden Thu, 02/05/2026 - 20:55

Billions In Chinese Investment To Flee Panama - Beijing Livid Over Canal Ports Decision

China is lashing out at Panama after the country's top court torpedoed a key Chinese-linked operations contract at the Panama Canal, warning that the Central American nation "will inevitably pay a heavy price" if it doesn’t reverse course.

Under immense US pressure from the Trump White House, Panama’s Supreme Court last week ruled to void the operating license of Hong Kong–based CK Hutchison for ports on both ends of the canal - Balboa on the Pacific side and Cristóbal on the Atlantic.

via AFP

The decision effectively ejects a Chinese/HK-connected operator, specifically the Panama Ports Company which is the subsidiary under CK Hutchison, from one of the world's most strategic maritime chokepoints.

This was celebrated as a win by Washington, as President Trump has long made clear his intention to reassert American influence and control over the Panama Canal. Starting early in his administration Trump called it "vital to our country" and insisted that "it’s being operated by China."

But China’s State Council Hong Kong and Macao Affairs Office has newly blasted the court's decision as "logically flawed" and "utterly ridiculous" - making clear that the ruling is vehemently opposed by both the Chinese government and the Hong Kong Special Administrative Region government.

"The Panamanian authorities should recognize the situation and correct their course," the office said, as translated in various media reports.

"If they persist in their own way and remain obstinate, they will inevitably pay a heavy price in terms of politics and economics!" the blistering statement added.

Beijing is now threatening an array of political and economic consequences, also as it prepares its legal challenge to the supreme court ruling:

China has reportedly instructed its state-owned enterprises to suspend discussions on new projects in Panama following the Central American country's decision to nullify CK Hutchison Holdings’ port operations contract, Bloomberg reported.

Sources familiar with the situation have indicated that the move is part of Beijing’s broader response to the legal ruling that affects two ports along the Panama Canal.

This decision is expected to potentially impede investments worth billions of dollars. In addition, China is advising shipping companies to consider alternative routes for cargo, provided these do not incur significant additional expenses, according to unnamed sources.

Furthermore, Chinese customs are increasing inspections on imports from Panama, including bananas and coffee, which could affect ongoing trade.

So now Panama finds itself in a precarious position, smack in the middle between Trump's controversial 'Donroe Doctrine' and Beijing, with Panama's President Jose Raul Mulino stating amid these threats of retaliation that he "strongly" rejects the Chinese government’s threats.

Panama’s ports just stepped into geopolitics.

China reportedly directed state companies to stop new negotiations for a Panama project after the port contract was dismissed. That's operations, not just politics.

Balboa and Cristóbal continue to facilitate international trade on… pic.twitter.com/bztes66Cye

— The Maritime (@themaritimenet) February 5, 2026

He framed this as about upholding the rule of law and made clear he "respects the decisions of the judiciary, which is independent of the central government." Still, he's about to feel some pain from China, and there's probably nothing at all Panama City can do about it.

Tyler Durden Thu, 02/05/2026 - 20:30

Fulton County Georgia Sues For Return Of 2020 Election Documents Seized By FBI

Authored by Matthew Vadum via The Epoch Times (emphasis ours),

Fulton County, Georgia, is suing the federal government for the return of 2020 election documents that the FBI seized in a raid last week.

An FBI press office employee approaches the Fulton County Election Hub and Operation Center in Union City, Ga., on Jan. 28, 2026. Arvin Temka/Atlanta Journal-Constitution via AP

A county spokesperson said on Feb. 4 that the county filed a motion in federal court in the Northern District of Georgia requesting the return of all 2020 election files that the FBI took on Jan. 28 under a search warrant.

The FBI carted away hundreds of boxes of ballots and other documents. A cover sheet for the warrant said the law enforcement agency was seeking all ballots and voter rolls, tabulator tapes from scanners used to tally votes, and electronic ballot images.

Fulton County Commissioner Marvin Arrington Jr. said the county asked the federal court to limit the warrant to provide an opportunity for an accounting of the seized documents and to request that they remain in the state.

The warrant was executed on Jan. 28 at the Fulton County Elections Hub and Operation Center in Fairburn, Georgia, not far from Atlanta.

President Donald Trump has long argued that election improprieties in the state contributed to his loss in Georgia in the 2020 presidential election. Weeks after the vote, Trump called Georgia’s secretary of state, Brad Raffensperger, urging him to investigate.

President Joe Biden was declared the winner of Georgia’s 16 electoral votes in the 2020 election. Biden received 2,473,633 votes, or 49.5 percent of the statewide vote, compared with Trump’s 2,461,854 votes, or 49.3 percent of the statewide vote, according to officially certified results.

In December 2025, the Department of Justice (DOJ) filed suit against the county, seeking voting records from the 2020 election.

​​Last month, when discussing the 2020 election, Trump said that “people will soon be prosecuted for what they did” but did not elaborate.

County officials have expressed concern over Trump’s plans for the midterm elections in November that will determine control of Congress.

Fulton County Chairman Robb Pitts said “this case is not only about Fulton County. This is about elections across Georgia and across the nation.”

“The president himself and his allies, they refuse to accept the fact that they lost,” Pitts said. “And even if they had won Georgia, he would still have lost the presidency.”

Democratic lawmakers in Congress have also questioned why Tulsi Gabbard, the director of national intelligence, was present during the search in Fulton County, given that she is not part of the law enforcement community.

Gabbard sent a letter to senior Democrats on the U.S. House and Senate intelligence committees on Feb. 2, saying the president asked her to attend at the search “under my broad statutory authority to coordinate, integrate, and analyze intelligence related to election security.”

Democratic officials in the state have also raised concerns about DOJ lawsuits, mostly aimed at Democratic states, that are seeking detailed voter data, including birthdates and partial Social Security numbers.

Trump said on Feb. 3 that Democrat-controlled places like Atlanta, which is largely within Fulton County, have “horrible corruption on elections, and the federal government should not allow that.”

Trump added that states were “agents of the federal government to count the votes. If they can’t count the votes legally and honestly, then somebody else should take over.”

Approached by The Epoch Times, the DOJ declined to comment on the new motion.

The Associated Press and Reuters contributed to this report.

Tyler Durden Thu, 02/05/2026 - 20:05

Beijing's Big Short: Meet The Chinese "Anti Hunt Brother" Billionaire Betting Against Silver Bulls

Born in 1963 in Zhuji, Zhejiang Province, right in the middle of some pretty chaotic times in China’s history, reclusive billionaire Bian Ximing grew up to become a commodity titan after making some huge bets in the metals markets over the past few years.

In 2003, he bought Zhongcai Futures Co., which would become the centerpiece of his trading empire.

Bian spends much of his time in Gibraltar, and previously made nearly $3 billion from bullish bets on Shanghai Futures Exchange gold contracts since early 2022.

It is unknown if he has closed any of that position out.

In May 2025, the billionaire went all-in on copper, believing the metal is vital for China’s tech-heavy future and the global green energy push. Even with market volatility and political tensions, sources confirmed Bian’s massive copper position - nearly 90,000 tons - on the Shanghai Futures Exchange, confident that copper prices will climb.

It is unknown if he has closed any of that position out.

And now, Bloomberg reports that he has now built the bourse’s largest net short position in silver, according to Bloomberg analysis of exchange data and people with knowledge of his investments. They asked not to be named as the information is not public.

Bian’s big short comes with significant risk, and he has been forced to liquidate some positions at a loss in a volatile silver market.

From August last year, he built a long position in silver that generated more than 1.3 billion yuan in profit, according to calculations based on exchange data.

In November, however, he began shifting his position, attempting to call the top of the rally with tentative moves that occasionally left him on the losing side of trades.

From last week, however, Bian held his short position with conviction, spreading his exposure across longer-dated contracts and holding it through upward price swings.

Bian, through his brokerage Zhongcai Futures, began ramping up silver shorts in the final week of January, according to exchange data. 

Exchange data showed Zhongcai’s silver short position surged to about 18,000 lots on Jan. 28.

It climbed further to about 28,000 lots on Jan. 30, when the metal in Shanghai reached an all-time high.

But he now holds a short that stands at about 450 tons of silver, or 30,000 contracts - so the metal’s sharp drop since last week has resulted in a paper gain of about 2 billion yuan ($288 million).

Including previous losses, Bian stands to make a net profit of around 1 billion yuan, based on his position and prices at the end of Tuesday.

Silver is again sliding in Thursday trade and has tumbled more than 40% from record highs a week ago - almost certainly significantly increasing Bian’s proceeds.

Bian's "Big Short" is the antithesis of the billionaire Hunt Brothers' bullish cornering of the silver market in the last 1970s (that didn't end well for them).

Will 'the herd' go full 'Gamestop' on this newly exposed massive short position, which unlike so many of the myths about JPMorgan being short the precious metals, Bian is actually short... in size... for now.

Tyler Durden Thu, 02/05/2026 - 19:42

Epstein Death Gets Weirder: DOJ Finally Admits To 'Orange-Colored Shape' Moving Up Staircase

The death of Jeffrey Epstein has always been extremely suspect, if only for the sheer number of odd coincidences that occurred the night of August 9th, 2019.

There are three theories: One, he actually killed himself. Two, the DOJ - headed up by Bill Barr whose pedocentric-author father hired Epstein to teach at Dalton in the 70s - had him murdered while in custody. Three, Epstein was smuggled out of jail and replaced by a mask-wearing homeless dude, with skeptics pointing to different nose and ear shapes on the body vs. photos of Epstein when he was alive. 

Now - despite former FBI director Dan Bongino insisting "There's video clear as day, he's the only person in there and the only person coming out. You can see it," the DOJ just released new documents revealing that surveillance footage from the night of Epstein's death captured an orange-colored shape moving up a staircase toward the isolated, locked tier where his cell was located at around 10:39 p.m. the night he died, or whatever. 

The orange flash was initially reported last August, so this is the 'official' accounting for that.

That entry in an observation log of the video from the Metropolitan Correctional Center appears to suggest something previously unreported by authorities: "A flash of orange looks to be going up the L Tier stairs — could possibly be an inmate escorted up to that Tier."

It also appears, according to an FBI memorandum, that reviews by investigators led to disparate conclusions by the FBI and those examining the same video from the Department of Justice's Office of Inspector General.  -CBS News

The orange flash is described as "possibly an inmate."

DOJ

The observation was logged by the inspector general as an officer carrying orange "linen or bedding," noting it in their final report as "an unidentified [corrections officer]," despite the fact that the officers on duty said they didn't replace any linens, as that was done during the previous shift. 

"At approximately 10:39 p.m., an unidentified CO appeared to walk up the L Tier stairway, and then reappeared within view of the camera at 10:41 p.m." reads the entry. 

This illustration shows a path from the entrance to the Special Housing Unit common area to the stairs leading up to Epstein's cell. Only a narrow portion of the staircase could be seen in video released by federal officials. CBS News

Officially, Epstein died by suicide sometime before 6:30 a.m., however nobody has been able to find the actual noose allegedly used. 

Investigators asked what happened to the noose. 

"I don't recall taking the noose off. I really don't," he replied. "I don't recall taking the thing from around his neck."

Noel, who remained standing at the cell entrance, told investigators she saw Thomas lower Epstein to the floor but did not see a noose around his neck.

The noose Epstein allegedly used has never been definitively identified. According to the inspector general's report, a noose collected at the scene was later determined not to be the ligature used in Epstein's death.

This was one of the photos taken at the scene. Cute. 

Other oddities include;

• No Cellmate Assigned: Despite a July 30, 2019, directive from the Psychology Department requiring Epstein to have an "appropriate cellmate" due to suicide risk (emailed to over 70 staff), his cellmate was transferred on August 9 without a replacement. Multiple staff, including the warden and lieutenants, were aware but took no action, violating BOP policy and SHU post orders.

• His former cellmate - Nicholas Tartaglione, who Epstein told his lawyers had "roughed him up," begged a New York judge to move him to another prison after he said guards began threatening him after Epstein's death. He also claimed that James Comey's prosecutor daughter offered Epstein a deal to frame Donald Trump.

Tartaglione was convicted of killing a man he suspected of stealing some $250,000 in drug money, as well as his nephews and a family friend who “were in the wrong place at the wrong time,” prosecutors said, according to the New York Post.

During the month that Epstein was incarcerated before his apparent suicide, Tartaglione claimed in a pardon application that his cellmate had the opportunity to save his skin by throwing the sitting president under the bus.

“Prosecutors … told Epstein that if he said President Trump was involved with Esptein’s crimes he would walk free. in a petition to be pardoned,” according to the Post, which said it had obtained a copy of the filing.

“Epstein told me that Maurene Comey said that he didn’t have to prove anything, as long as President Trump’s people could not disprove it,” the pardon application added.

“According to Maurene Comey, the FBI were ‘her people, not his [President Trump’s].’”

• Unmonitored and Unrecorded Phone Call: On August 9 (around 7 p.m.), Epstein was allowed a 20-minute call from the SHU shower area using a non-inmate system phone, authorized by the unit manager. He claimed it was to his mother (deceased since 2004), but it was actually to a personal associate discussing press, his case, and affection. The call violated BOP policy requiring monitoring, recording, and logging; the manager left midway and instructed no oversight.

• Falsified Records of Inmate Counts and Rounds: SHU staff (including officers Tova Noel and Michael Thomas) falsified over 75 entries on count slips and round sheets. No inmate counts occurred after 4 p.m. on August 9, and no 30-minute rounds after approximately 10:40 p.m. Records were pre-filled or signed without performing duties, with "ghost counting" (using outdated cheat sheets) leading to errors like including transferred inmates.

• No Monitoring or Tier Entries Overnight: Epstein was alone and unmonitored from ~10:40 p.m. on August 9 until discovered at ~6:30 a.m. on August 10. Staff remained at the officers' station, with no entries to his tier (confirmed by available video). A specific sign mandating 30-minute rounds for Epstein was ignored.

• Excess Linens and Safety Hazards in Cell: Epstein's cell contained excess blankets, linens, and clothing (beyond limits of two sheets and one blanket), some ripped into nooses or clotheslines. No cell search was documented on August 9 (shower day, when searches are required), and only one SHU search was logged that day (not his cell). Mattresses and blankets were on the floor, violating housekeeping and security policies. And again, they never found the actual noose allegedly used.

• Security Camera Malfunction: One of the SHU's DVR systems failed on July 29 due to disk issues, stopping recordings (though live feeds continued). It was reported on August 8 but not repaired until after Epstein's death, attributed to staffing shortages. Available footage showed no unauthorized entries, but the failure limited full review.

• Staff Fatigue and Dozing on Duty: Officers worked excessive overtime (e.g., Thomas on a 22-24 hour shift, his third consecutive). Video showed staff idle or appearing asleep between 1-3 a.m. on August 10. Supervisors violated union agreements by assigning extended shifts, contributing to skipped duties.

• Ambiguous Prior Incident (July 23): Epstein was found on the floor with an orange cloth around his neck tied to a bunkbed ladder. It was unclear if it was a suicide attempt or assault by his then-cellmate; investigations were inconclusive, with conflicting statements (Epstein initially claimed assault, later denied memory). He was placed on suicide watch but removed after 31 hours.

So yes, Epstein 'died by apparent suicide' inndeed. 

Tyler Durden Thu, 02/05/2026 - 19:40

Federal Agency Seeks To Investigate Nike For Alleged Bias Against White Employees

Authored by Naveen Athrappully via The Epoch Times (emphasis ours),

The Equal Employment Opportunity Commission (EEOC) is seeking a court order for investigating systemic race discrimination allegations against white workers by footwear and apparel corporation Nike Inc., according to a Feb. 4 statement from the agency.

The Nike logo above the entrance to a store in Miami Beach, Fla., on Dec. 21, 2021. Joe Raedle/Getty Images

The EEOC filed an action in federal court to compel Nike, headquartered in Oregon, to produce information related to allegations that the company discriminated against white workers as part of its diversity, equity, and inclusion (DEI) programs.

According to the filing made by EEOC in the U.S. District Court for the Eastern District of Missouri, the agency is looking to enforce an administrative subpoena against Nike for failing to submit the required information, which was initially requested in 2024 by then-commissioner, and now chair, Andrea Lucas.

Lucas alleged that Nike, since at least 2020, engaged in “a pattern or practice of disparate treatment against white employees, applicants and training program participants in hiring, promotion, demotion, or separation decisions, including selection for layoffs; internship programs; and mentoring, leadership development and other career development programs.”

EEOC is the sole federal agency that investigates and litigates against companies for violating federal law prohibiting employment discrimination.

In an emailed statement to The Epoch Times, a Nike spokesperson said that this was a “surprising and unusual escalation,” adding that the company had already shared thousands of pages of information with the EEOC, and written detailed responses to inquiries, and is in the process of providing additional information.

“We are committed to fair and lawful employment practices and follow all applicable laws, including those that prohibit discrimination,” the spokesperson said.

Diversity and Inclusion at Nike

According to the diversity, equity, and inclusion page on Nike’s website, the company drives “equitable experiences for all teammates across the employee lifecycle.”

In its fiscal year 2024 “Representation by the Numbers” document published online, Nike said women made up 50.3 percent of the global corporate workforce. As for racial representation, white employees made up 57 percent, with black employees making up 9 percent, Asian 18 percent, and Hispanic 8.8 percent.

Based on Bloomberg data, from 2020 to 2021, Nike showcased the largest amount of change against hiring white workers among large U.S. companies. While the numbers of black, Hispanic, and Asian people went up across the board, Nike let go of white workers, said the analysis.

Kismet Mills is currently Nike’s chief diversity, equity and inclusion officer. She assumed the post in 2024.

EEOC will take necessary steps to counter corporate DEI programs that seek to discriminate based on race, Lucas said.

“Title VII’s prohibition of race-based employment discrimination is colorblind and requires the EEOC to protect employees of all races from unlawful employment practices. Thanks to President Trump’s commitment to enforcing our nation’s civil rights laws, the EEOC has renewed its focus on evenhanded enforcement of Title VII,” said Lucas, who was hired by President Donald Trump to head the EEOC in November.

Title VII of the Civil Rights Act of 1964 prohibits employment discrimination based on race, color, religion, and sex.

The Trump administration has shown a steadfast opposition to DEI policies, with the president issuing executive orders against the implementation of such policies during his initial days in office.

DEI policies violate civil-rights laws, while undermining national unity, as “they deny, discredit, and undermine the traditional American values of hard work, excellence, and individual achievement in favor of an unlawful, corrosive, and pernicious identity-based spoils system,” said Trump’s Jan. 31 executive order.

In 2024, nonprofit law firm America First Legal filed a federal civil rights complaint with EEOC against Nike alleging racial and sex discrimination in violation of Title VII.

The firm said in a statement at the time that Nike appeared to be using numerical quotas for hiring, training, and promotion. The company aims to have 50 percent of women in the global corporate workforce and 45 percent in leadership positions by 2025, said America First Legal.

Tyler Durden Thu, 02/05/2026 - 19:15

Republicans Demand Inclusion Of SAVE Act In DHS Funding Bill - What To Know

Authored by Joseph Lord & Nathan Worcester via The Epoch Times (emphasis ours),

After President Donald Trump on Wednesday signed a government funding measure to end a partial government shutdown, funding clashes still lie ahead—this time, centered entirely around the contents of a bill to fund the Department of Homeland Security (DHS).

The U.S. Capitol building in Washington on Feb. 4, 2026. Madalina Kilroy/The Epoch Times

Republicans are escalating their calls to include the Safeguarding American Voter Eligibility (SAVE) Act—a bill intended to require voter ID and reduce voter fraud in federal elections—in the final funding package for DHS.

Trump has expressed support for the measure, calling for voter ID laws to be included in the package.

The president has also called for the federal government to “nationalize” or “take over” elections if states cannot run them “legally and honestly.”

Later, White House Press Secretary Karoline Leavitt said that those comments were an endorsement of passing the SAVE Act.

Senate Democrats—who have demanded sweeping reforms to DHS and its subsidiary Immigration and Customs Enforcement (ICE) as a condition for their support of the funding legislation—have described this as a non-starter in the upper chamber.

The funding bill signed by Trump finalizes full-year funding for 96 percent of the government, leaving all executive departments except DHS funded until Sept. 30. The funding for DHS, meanwhile, is set to run out on Feb. 13.

The DHS bill was separated from a larger tranche of spending bills after Democrats refused to support it in the aftermath of the fatal shooting of Alex Pretti by immigration enforcement officers in Minneapolis.

Any bill will need 60 votes to clear the Senate—though some House Republicans are calling for weakening or changing the rules around the Senate mechanism to more easily pass the bill.

With both sides digging in on their positions and no clear resolution in sight, the stage is set for a long week in Washington. Here’s what to know.

What Is the SAVE Act?

The SAVE Act was introduced and championed by Rep. Chip Roy (R-Texas), its original sponsor, and other congressional Republicans several times in recent years.

Most recently, the legislation was reintroduced by Roy and passed the House in April 2025. However, it has stalled in a Senate committee.

The bill’s purpose, according to its introduction, is “to require proof of United States citizenship to register an individual to vote in elections for Federal office.”

The bill lists several acceptable documents to verify the citizenship of a would-be voter, including a REAL ID compliant identification, a U.S. passport, a military ID card, or any valid state, federal, or tribal identification, such as a birth certificate, hospital record, or adoption certificate, showing that the individual was born in, or is a naturalized citizen of, the United States.

Roy and other proponents of the legislation say that it’s necessary to respond to a 2013 decision in Arizona v. Inter Tribal Council of Arizona, which found that federal law limiting ID requirements supersedes existing state laws requiring documentary proof to vote—effectively banning states from imposing such requirements for federal voter registration.

House Republicans’ Demands

Conservative House Republicans are leading calls to pass the legislation as a condition of their support for any DHS bill negotiated by Senate Democrats.

Ahead of—and during—the vote to pass the funding measure to end the partial shutdown, there were signs that the issue was becoming a redline for several members of the House Republican conference.

Before the House Rules Committee vote, there were questions about how Roy and Rep. Ralph Norman (R-S.C.) would vote, as both have called for the SAVE Act’s inclusion in the legislation.

Reps. Anna Paulina Luna (R-Fla.) and Tim Burchett (R-Tenn.) had indicated before the floor vote that they were considering how they would vote due to the issue. Ultimately, the two were persuaded to support the measure to end the partial shutdown but have continued to call for the SAVE Act’s inclusion in the final package.

Rep. Thomas Massie (R-Ky.) voted against the procedural motion to advance to a floor vote after an amendment to include the legislation failed to pass. Massie ultimately opposed final passage.

During the procedural vote, Rep. John Rose (R-Tenn.) joined Massie in blocking passage for nearly an hour over the issue before switching his vote.

The powerful Republican Study Committee (RSC) in the House has called for the bill’s passage.

“American elections should be fair and free, not subject to foreign influence. Illegal aliens have no right to be in America, and they certainly shouldn’t be voting,” said Rep. Brandon Gill of Texas, who’s leading the RSC’s push to pass the bill.

“House Republicans are united behind the SAVE Act. I urge my Senate colleagues to pass this legislation and get it to President Trump’s desk for his signature.”

Schumer Says Measure Is DOA

Democrats have indicated that the inclusion of any such measure would make the bill dead on arrival in the Senate.

“The SAVE Act would impose Jim Crow type laws to the entire country and is dead on arrival in the Senate,” Senate Minority Leader Chuck Schumer (D-N.Y.) said in a statement. “It is a poison pill that will kill any legislation that it is attached to.

“If House Republicans add the SAVE Act to the bipartisan appropriations package, it will lead to another prolonged Trump government shutdown.”

Schumer said the legislation would “suppress voters,” and that it “seeks to disenfranchise millions of American citizens, seize control of our elections, and fan the flames of election skepticism and denialism.”

The New York lawmaker vowed that Democrats would “go all out to defeat the SAVE Act.”

Whether as part of the DHS funding bill or as a standalone item, the SAVE Act would require the support of at least seven Senate Democrats to clear the upper chamber—support that Democrats have made clear they won’t provide.

What’s Next?

Senate Majority Leader John Thune (R-S.D.) has promised a vote on the legislation in the Senate, though he didn’t say whether that would be a standalone vote or when it might be held.

“We will get a vote on the SAVE Act at some point,” Thune told reporters at a Tuesday press conference. “I’m not sure exactly what that context will be. Maybe it’s in the context of voting on the DHS bill if something’s agreed upon, but there will be at some point a vote on the SAVE Act.”

As it stands, Congress appears to be at an impasse, with both sides entrenching their position.

Sen. Katie Britt (R-Ala.), a leader of GOP negotiations on the funding bill, had little to say about how negotiations currently stand as she left an initial meeting with Senate Democrats on Wednesday.

She told reporters that lawmakers will “need a little bit more time” to “figure out a pathway forward.”

Britt added that Republicans, including Trump, were working in good faith and said that Democratic lawmakers were as well.

Sen. Lisa Murkowski (R-Alaska), a crucial swing vote, was pessimistic when asked about the prospects of a deal being reached before the Feb. 13 deadline.

“It’s really hard, because the time that we’ve given ourselves, this window, it’s so short,” Murkowski told The Epoch Times.

She added that a deal being reached before the deadline is “not impossible, but you’ve got to have willingness on both sides, and you’ve got to have the President really leaning in on these negotiations.”

With no clear way forward in sight, some Republicans—most prominently Luna—have called for the Senate to resurrect the “standing filibuster.”

In contrast to the filibuster system of recent years—handled largely by the use of a procedural cloture vote requiring 60 members’ consent to overcome—the standing filibuster requires members to consistently speak on the Senate floor to continue debate.

Some Republicans have indicated skepticism about such a change.

Asked about Luna’s proposal, Murkowski told The Epoch Times, “That’s not constructive,” saying that such tactics would undermine a “message of optimism” and hope for a bipartisan solution.

Sen. Rand Paul (R-Ky.) also said he’s broadly opposed to the push.

“​​I’m not really for changing the filibuster, but I am definitely for the SAVE Act,” Paul told The Epoch Times.

*  *  *

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Tyler Durden Thu, 02/05/2026 - 18:25

Uncharted Territory: US & Russia Now Have No Limits On Nuclear Weapons

On Thursday the world woke up entering uncharted territory as the US-Russia New START Nuclear Treaty has expired without renewal. The pact's last active day was February 4.

While there's yet hope that a comparable replacement could soon be forged between the globe's largest nuclear-armed powers and rivals, there are no current intensive talks happening on this front which have a 'legal' status related to international arms control.

Russian state media on Thursday has issued confirmation the last remaining nuclear arms pact between Washington and Moscow has ceased. According to statements in TASS:

The final day of the New Strategic Arms Reduction Treaty (New START) falls on February 4, 2026. The United States has not responded to a proposal made by Russian President Vladimir Putin in September 2025 to continue observing the treaty’s quantitative limits on warheads and their delivery systems for one more year after its expiration.

The document itself does not provide for another formal extension, as was done in 2021. As a result, beginning on February 5, if no reaction comes from Washington, the last bilateral agreement regulating US-Russia relations in the sphere of strategic stability will become history, Vedomosti writes.

However, Axios on Thursday has for the first time revealed secretive, behind-the-scene last ditch diplomatic efforts to reach at least a tentative understanding, writing that "the and Russia are closing in on a deal to continue to observe the expiring New START arms control treaty beyond its expiration on Thursday, three sources familiar with those talks tell Axios."

United Nations: A photograph of the 1971 Licorne nuclear test, which was conducted in French Polynesia in the Pacific Ocean.

Already, President Putin and Russian officials have expressed frustration that the Trump administration didn't seize upon an earlier Kremlin offer to extend the treaty by one year while a longer agreement is worked out.

But a US official has told Axios, "We agreed with Russia to operate in good faith and to start a discussion about ways it could be updated."

"Two of the sources cautioned that the draft plan still needed approval from both presidents," the report continues. "An additional source confirmed that negotiations had been taking place over the past 24 hours in Abu Dhabi, but not that an agreement had been reached."

For now, the sides have an informal understanding to observe New START's terms for another six months. But there's nothing stopping either side at this point from ramping up nuclear expansion.

Meanwhile, a Wednesday statement by Secretary of State Marco Rubio gives insight into why the White House has let New START expire: "Obviously, the president's been clear in the past that in order to have true arms control in the 21st century, it's impossible to do something that doesn't include China because of their vast and rapidly growing stockpile." 

This has been a longtime complaint of Trump's, which goes all the way back to his first administration, when similar complaints about the existent framework for arms control were issued.

He said much the same in a fresh Thursday Truth Social post...

Tyler Durden Thu, 02/05/2026 - 18:00

Leftists Put Hits Out On Nick Shirley After He Exposed Massive Somali Fraud In Minnesota

Authored by Steve Watson via Modernity.news,

Nick Shirley, the YouTuber who went viral for exposing alleged Somali-run daycare fraud in Minnesota, has revealed that leftists have put out hits on his life.

In a shocking update, Shirley’s security team informed him he was the “number one man” targeted, forcing him to switch hotels amid fears for his and his family’s safety. This comes after his investigative video highlighted millions in taxpayer funds vanishing into ghost daycares with no children in sight.

Shirley detailed the terrifying backlash in a recent appearance, saying people have sent him photos of bodies in ditches with captions like “that’s going to be you” and openly telling him to “k**l yourself.”

? HOLY CRAP. Nick Shirley reveals his security informed him the left put out HITS against his life — simply because he exposed fraud

Keep him safe at ALL COSTS.

"People have sent me photos of people on ditches saying 'that's going to be you' and people have openly said that… pic.twitter.com/0VzLurMtiG

— Eric Daugherty (@EricLDaugh) February 5, 2026

“Now I am getting a little more fearful for what’s happening in my life and what’s happening with life in my family, as you’ve seen not only attacks from like the mainstream media, but more so attacks from just people on the internet saying those things about you and your life,” Shirley stated.

He recounted the hotel incident: “Our second day at the hotel they said that we needed to move hotels because it was our word was out as to where we were staying.”

“And we were told by the security that Nick was the number one man, like they had a hit on me and was what they said,” he added. “So it was very frightening, it was very frightening.”

This escalation follows previous threats where Shirley was warned he’d be “Kirked,” a chilling reference to the assassination of Turning Point USA founder Charlie Kirk. As we previously reported, Shirley faced doxxing, family harassment, and physical confrontations after his initial video.

The wider scandal has prompted federal action. Federal agents are probing fraud allegations targeting Somali child care providers in Minnesota, with the Trump administration dispatching officers amid concerns over misappropriated funds exceeding $100 million.

A recent Senate Judiciary Committee hearing titled “Somali Scammers: Fighting Fraud” featured testimony on the investigation, including bizarre misspellings like “Learing Center” that raised red flags.

Shirley has since hired 24/7 security, noting in interviews that his life has changed dramatically. “Your house gets doxxed, people try hacking your social media accounts, people start calling your family members, and you have to go everywhere with 24/7 security,” he told Fox News. He lamented the hatred pouring in despite performing a “giant public service” by exposing the fraud.

On the flip side, Somali child care providers have reported a spike in harassment and vandalism following the viral video, with unions warning of “internet vigilantes.”

Yet Shirley’s work underscores a deeper issue: unchecked immigration and lax oversight allowing billions in taxpayer dollars to fuel fraud under Democrat governance in Minnesota. With Governor Tim Walz’s administration in the crosshairs, this saga highlights the urgent need for America First policies to protect hard-earned money from being siphoned off.

Shirley’s courage in the face of mortal danger exemplifies the fight against corruption. As threats mount, it’s clear the left will stop at nothing to silence those who dare expose their failures. Protecting whistleblowers like him is essential to reclaiming the nation from fraud and chaos.

Your support is crucial in helping us defeat mass censorship. Please consider donating via Locals or check out our unique merch. Follow us on X @ModernityNews.

Tyler Durden Thu, 02/05/2026 - 17:40

Six-Month Low In Coffee Futs Signals Potential Relief After Beans On Amazon Surge

Tracking a single brand of dark-roast arabica beans on Amazon via the price-tracking website CamelCamelCamel shows that a 2.2-pound bag has nearly doubled in price since August.

For American consumers, paying roughly twice as much for the same bag of coffee beans in just six months is a price shock, even if it is still cheaper than visiting Starbucks daily.

There may finally be some relief in sight. Arabica coffee futures have fallen to a six-month low, raising some hopes that bean prices may have topped out for now.

The most-active New York contract slid to a six-month low on Thursday, falling as much as 2.3% to about $3.10 a pound.

Bloomberg reports this decline was driven by a sharp rebound in exchange inventories, with coffee deliveries doubling over the past two weeks. That restocking has eased fears over near-term supply tightness that previously sent prices surging to nearly $4.5 a pound in 2025.

There is more good news: Favorable weather in Brazil, the world’s top coffee exporter, suggests more supply is near for the next harvest season.

Analysts at investment bank Itaú BBA told clients that traders are closely monitoring weather conditions in Brazil, where forecasts for continued, crop-friendly rains could further improve supply outlooks. If those rains materialize, speculative traders may further unwind bullish positions, adding to the downward pressure on coffee futures.

Tyler Durden Thu, 02/05/2026 - 17:20

New York City Joins WHO's Global Outbreak Response Network After US Exit

Authored by Tom Ozimek via The Epoch Times (emphasis ours),

New York City’s health department said on Feb. 4 it has joined the World Health Organization’s (WHO) Global Outbreak Alert and Response Network, becoming the latest Democratic-led jurisdiction to link up with the United Nations-coordinated public health system following President Donald Trump’s decision to withdraw the United States from the WHO.

Alexander Spatari/Getty Images

The move places New York City alongside California and Illinois, whose leaders have said they will participate in the global outbreak network despite the federal government’s formal exit from the WHO last month.

The WHO-coordinated Global Outbreak Alert and Response Network (GOARN) links hundreds of public health institutions worldwide to detect and respond to emerging disease threats.

“By joining GOARN, New York City gains access to a global network of over 360 institutions and organizations that respond to acute public health events with the deployment of staff and resources to affected countries,” the New York City Health Department said in a statement.

“Infectious diseases know no boundaries, and nor should the information and resources that help us protect New Yorkers,” Acting Health Commissioner and Chief Medical Officer Michelle Morse added.

Trump formally pulled the United States out of the WHO on Jan. 22 after completing a one-year withdrawal process triggered by a January 2025 executive order. The order suspended all U.S. funding to the organization and directed the recall of U.S. personnel working with the agency.

The president’s order cited the WHO’s “mishandling of the COVID-19 pandemic that arose out of Wuhan, China, and other global health crises” as reasons behind the U.S. withdrawal. It also singled out the WHO’s failure to adopt reforms and what Trump described as inappropriate political influence by member states as additional reasons for pulling out.

The United States had been the organization’s largest financial contributor, providing roughly $1.28 billion during the 2022–2023 biennium, according to the WHO.

Secretary of State Marco Rubio and Health Secretary Robert Kennedy Jr. said in a joint statement announcing the U.S. withdrawal that the organization had acted against U.S. interests despite Washington’s role as a founding member.

“This action responds to the WHO’s failures during the COVID-19 pandemic and seeks to rectify the harm from those failures inflicted on the American people,” the two officials said. “Promises made, promises kept.”

Democratic-led States Defy WHO Withdrawal

Democratic leaders in several states have criticized the administration’s decision and moved to maintain direct ties with the global health network.

Illinois Gov. JB Pritzker said on Feb. 3 that his state would join GOARN, making Illinois the second state, after California, to do so. Pritzker said Trump’s withdrawal undermined science and weakened the country’s ability to respond to global health threats.

“I refuse to sit idly by and let that happen,” Pritzker said in a statement, adding that GOARN membership would give Illinois access to global early-warning alerts, outbreak intelligence, technical collaboration, and surge support during major public health events.

California Gov. Gavin Newsom announced his state’s participation on Jan. 23, calling the U.S. withdrawal from the WHO “reckless” and saying it would harm Americans. California became the first U.S. state to join the network after the federal exit.

“California will not bear witness to the chaos this decision will bring,“ Newsom said in a statement. ”We will continue to foster partnerships across the globe and remain at the forefront of public health preparedness.”

Newsom announced the collaboration after meeting WHO Director-General Tedros Adhanom Ghebreyesus at the World Economic Forum in Davos, Switzerland, and said he is weighing a 2028 presidential run.

The White House did not respond to a request for comment on New York City’s decision by publication time.

Reuters contributed to this report.

Tyler Durden Thu, 02/05/2026 - 17:00

Amazon Plunges After Forecasting 50% Surge In Capex To $200BN

In our AMZN earnings preview, we said that the price reaction from META and GOOGL "leaves Amazon in a precarious place as it prepares to report earnings after the close today: does it project some berserk number or does it risk being conservative? After all, the only thing that will matter is the capex forecast (the earnings will likely be good enough)."

Well, we were wrong: the earnings were not good enough: the company missed on earnings and its guidance was rather week. And so before we even get to the biggest shock of the report - the company's CapEx guidance - here is what the company reported for Q4:

• EPS $1.95, missing estimates of $1.96... an ugly miss at the very top.

Revenue was a bit better, and even though several items (physical stores, third party sellers missed), AWS was stronger than expected.

• Net sales $213.39 billion, beating estimate $211.49 billion
  • Online stores net sales $82.99 billion, beating estimate $82.3 billion
  • Physical Stores net sales $5.86 billion, missing estimate $5.88 billion
  • Third-Party Seller Services net sales $52.82 billion, missing estimate $53.16 billion, net sales excluding F/X +10%, estimate +11.2%
  • Subscription Services net sales $13.12 billion, beating estimate $12.74 billion, net sales excluding F/X +12%, estimate +10.4%

The good news is that the most important revenue item, AWS, beat:

• AWS net sales $35.58 billion, beating estimate $34.88 billion; net sales excluding F/X +24%, estimate +21%

This was an impressive number as the 24% YoY increase in AWS revenue not only smashed estimates, but was the highest in three years: remarkable growth for a business that keeps growing and has a more difficult base effect to "beat" every quarter. 

Geographically the results were disappointing with North America missing, offset by strength in International

• North America net sales $127.08 billion, missing estimates of $127.21 billion
• International net sales $50.72 billion, beating estimates of $49.74 billion

Going down the line: 

• Operating income $24.98 billion, beating estimate of $24.82 billion; this included charges of $1.1 BN
• Operating margin 11.7%, in line with the estimate of 11.7%
• North America operating margin +9%, beating estimate +8.51%
• International operating margin 2.1%, missing estimate 4.27%
• Fulfillment expense $30.83 billion, below estimate $31.42 billion

In its release, the company said that demand was strong for AI, Chips, Robotics, and all other Existing Offerings. 

While AWS sales growth was solid, just as impressive was the the margin for the segment also increased from 34.64% in Q3 to 35.03%, just beating the median Wall Street estimate of 35%. Elsewhere, North American profit unexpectedly jumped to $11.472 billion, resulting in a profit margin of 9.03%, beating estimates of 8.51%, while international margins dropped to to 2.05% from 2.93%, missing estimates of an increase to 4.27%.

As a result of the drop in AWS profits, Amazon's consolidated operating margin posted a notable jump and in Q4 increased 9.7% to 11.7%, just shy of an all time high. 

However, while the above data was ok, it was the company's guidance that led to an immediate collapse in the stock price after hours. No, it wasn't the revenue, although that did come in a bit weak: 

• Net sales are expected to be between $173.5 billion and $178.5 billion, or to grow between 11% and 15% compared with first quarter 2025. The midpoint is a bit weak compared to the median estimate of $175.54 billion.

The projected 13% revenue growth is on the low-end of where the company has been in the past year. 

But while revenue guidance was disappointing, if a bit muted, it was the company's capex guidance - a first for AMZN - that stole the show, because with Wall Street estimates of $146.1 billion in 2026 capex, the company went and reported that it expects to invest about $200 billion in capital expenditures in 2026, a 50% increase from 2025 and an openly ridiculous number, one which is more than a quarter higher than the consensus estimate! Needless to say, there is just not enough grid capacity and electrical power to satisfy the $700BN in CapEx guidance among the Mag7s. 

The number was so shocking that even though Wall Street may have been ready to give AMZN the benefit of the doubt for its solid AWS performance and impressive margin bounce, the CapEx guidance was just so gargantuan, there was no way the stock would jump especially after yesterday's GOOGL debacle. Putting the updated capex numbers in context, the 5 bighyperscalers now expect to spend over $700BN in capex next year. The only problem: there is nowhere near enough electrical capacity to feed all these brand new data centers.

And so AMZN crashed after hours, sliding as much as 11%, and trading around $200. Another $15 drop from here, and the stock will be where it last traded in 2021...

Tyler Durden Thu, 02/05/2026 - 16:50

Xi Used Latest 2-Hour Call To Warn Trump On Taiwan Red Lines

More details have emerged from Wednesday's Trump-Xi phone call, which it turns out was quite lengthy for the two leaders, lasting about two hours. We reviewed previously that President Trump hailed the "excellent" call, which was "long and thorough" - but Chinese version which was issued later presents something more contentious.

China’s official readout made clear that President Xi in the conversation focused heavily on Taiwan, and ways Washington can dial back the tensions over the self-ruled island.

Xi called the US approach to Taiwan "the most important issue in China-U.S. relations," declaring that China "will never allow Taiwan to be separated from China."

Xinhua Image

"The US must handle arms sales to Taiwan with extreme caution" Xi said, in reference to the billions in arms packages the US has signed off on over several years, spanning multiple administrations.

Taiwan was quick to respond to the contents of this call, with Taiwan’s president, Lai Ching-te, telling reporters Thursday: "The Taiwan-US relationship is rock solid, and all cooperation projects will continue uninterrupted."

Separately Taiwan's foreign ministry also pointed out that US weapons sales to Taiwan continue unabated, Xi's warnings notwithstanding. Another key part of the call is seen in the following:

China is considering buying more U.S.-farmed soybeans, President Donald Trump said after what he called "very positive" talks with President Xi Jinping on Wednesday, even as Beijing warned Washington about arms sales to Taiwan.

In a goodwill gesture two months before Trump's expected visit to Beijing, Trump said Xi would consider hiking soybean purchases from the United States to 20 million metric tons in the current season, up from 12 million tons previously. Soybean futures rallied.

Trump has repeatedly stressed the need to keep lines of communication open with Beijing, even as he insists on safeguarding American interests and regional security, and as Washington continues arms support to Taipei.

"The relationship with China, and my personal relationship with President Xi, is an extremely good one, and we both realize how important it is to keep it that way," Trump had written on Truth Social Wednesday, soon after the call was conclued.

"I believe that there will be many positive results achieved over the next three years of my Presidency having to do with President Xi, and the People’s Republic of China!" - he followed with.

I read a CIA assessment of Xi Jinping and it said that he was "incorruptible, doesn't care about money, doesn't drink or participate in any vices, and always knows the right answer".

Can you imagine what the Chinese assessment of Trump is?

— Mike from PA (@Mike_from_PA) January 27, 2026

But to review of Xi's red lines and Washington's proneness to testing them: "In December, the US state department announced its largest-ever arms sales package to Taiwan, valued at more than $11.1bn and including missiles, artillery systems and drones," writes The Guardian. "The package is yet to be approved by Congress."

"China reacted angrily to the proposed arms sales, conducting two days of military drills around the island in late December, for which it dispatched air, navy and missile units," report recalls.

Tyler Durden Thu, 02/05/2026 - 16:40

Trump Sidesteps 2028 GOP Endorsement On Vance, Rubio

Authored by Naveen Athrappully via The Epoch Times (emphasis ours),

U.S. President Donald Trump opted not to choose between Vice President JD Vance and Secretary of State Marco Rubio as potential successors in the 2028 Republican presidential primary during a Feb. 4 interview with NBC News.

U.S. President Donald Trump, Vice President JD Vance, and Secretary of State Marco Rubio attend a meeting with oil industry executives at the White House in Washington on Jan. 9, 2026. Kevin Lamarque/Reuters

The president had, on earlier occasions, suggested that Rubio and Vance would be the top Republican contenders for 48th president of the United States.

In the NBC News interview, Trump was asked who should be at the top of the 2028 presidential primary ticket.

“Well, I don’t want to get into this. We have three years to go. I don’t want to, you know, I have two people that are doing a great job,” Trump said.

“I don’t want to have an argument ... I don’t want to use the word fight, it wouldn’t be a fight. But look, JD is fantastic, and Marco is fantastic.

“I would say one is slightly more diplomatic than the other. I think they’re both of very high intelligence. I mean ... they will do shows. They will do Joe Rogan, as opposed to the opponent not doing it because they couldn’t handle it.

“They’re both very capable. I do think this—the combination of JD and Marco would be very hard to be beaten.”

When asked whether he would endorse someone in the 2028 primaries, Trump replied he “hadn’t even thought of it” but would be inclined to do so.

Rubio ran as a Republican candidate in the 2016 presidential race, competing against Trump, who went on to win his first term. Since joining the second Trump administration, the 54-year-old has been active on multiple fronts.

In addition to serving as secretary of state, Rubio was appointed acting head of the U.S. Agency for International Development (USAID) in February 2025 and national security adviser in May 2025. In July of that year, he confirmed the shutdown of USAID, highlighting that foreign assistance provided by the agency failed to deliver results for Americans.

Earlier, in February 2025, Panama’s president said his country would not renew its Belt and Road Initiative agreement with China after a meeting with Rubio, who called on the country to address the Chinese Communist Party’s influence in the region, in what was one part of the Trump administration’s assertive moves in the Western Hemisphere.

Vance, who has been active in both domestic and international roles, was instrumental in blocking Democrats from restricting Trump’s ability to continue military action in Venezuela, casting the tiebreaking vote in the Senate that defeated the proposal. The 41-year-old has also emerged as a prominent defender and advocate of the administration’s “America First” agenda.

Both Rubio and Vance served as Republican senators prior to joining the Trump administration last year. Rubio was elected to the U.S. Senate from Florida in 2010, while Vance was elected to the U.S. Senate from Ohio in 2022.

Regarding a potential 2028 presidential ticket, Vance said in a media interview in October 2025 that he wants to perform well in the current administration before considering such a proposal.

Meanwhile, Rubio backed Vance as a great pick for the next presidential election without ruling himself out of the race.

In December, conservative organization Turning Point USA, now headed by Erika Kirk, endorsed Vance for 2028.

According to a Harvard CAPS Harris Poll fielded on Jan. 28 and 29, Vance “leads convincingly” among Republican voters as their next candidate for president. Vance got 53 percent of the polled votes, far higher than Rubio’s 17 percent, which put him in the third spot. Donald Trump Jr. took the second spot with a 21 percent share.

Tyler Durden Thu, 02/05/2026 - 16:20

 

 

I spend a lot of time in “How Not to Invest” discussing how our own biases often work against us. This is especially true when it comes to the information we consume relative to our investments and portfolio.

While we tend to focus on the biases in various media outlets or cable channels, we may not stop to consider how the algorithms that drive the social media platforms we consume are affecting our perception of current news events (See chart above).

The Argument takes this to the next level by using survey data on where people get much (most?) of their news and how this affects their perception of specific events. They don’t evaluate platforms by their bullish or bearish stance, but rather how major news stories show up in people’s partisan preferences by platform:

“Whether you’re getting your information from TikTok, Instagram, Reddit, Twitter, cable news, or elsewhere, platforms are shaping your information diet in ways you may not even notice. Content is inseparable from the vehicle within which it arrives.”

There is some risk that people gravitate to the platform that reflects their views; that certainly is likely ever since Twitter was purchased. Regardless of that selection issue, the results were quite surprising.

Consider the political leanings associated with each platform in the chart:

There is definitely an “algorithmic bias” built into all of these platforms.

I cannot say that I was surprised at Reddit, which tends to be more like the old internet — where college-educated, youth, and higher income skew to the left. I am a little surprised at TikTok, but I to assume it’s mostly a younger age demographic that drives all of that. I am completely unsurprised at Twitter…

If this sort of thing interests you, check out the complete piece, with lots more data and charts, at The Argument.

 

Previously:
TikTokInvestors (May 9, 2024)

The Price of Paying Attention (November 2012)

 

Source:
Twitter is not real life
by Lakshya Jain
The Argument, Feb 05, 2026.

 

 

 

I extensively detail why Social Media is the worst place to get your investing news from in How Not to Invest: The ideas, numbers, and behaviors that destroy wealth―and how to avoid them.”

It’s on sale at Amazon for $20.54!

 

 

 

The post How Platforms Influence Your Perception appeared first on The Big Picture.

Amazon Earnings Preview: All Eyes On CapEx

At first, the market was happy to reward big capex forecasts (META); but just a few days later, it changed its mind and decided that the bigger the beat, the bigger the penalty (as was the case with GOOGL today). That leaves Amazon in a precarious place as it prepares to report earnings after the close today: does it project some berserk number or does it risk being conservative? After all, the only thing that will matter is the capex forecast (the earnings will likely be good enough). 

Looking at the bigger picture, Bloomberg notes that it’s probably not a great sign that Amazon’s share price is down more than 4% on the day of earnings, before the first headline has even hit. After the hyperscalers Microsoft and Alphabet spooked markets with their huge spending plans -- Meta seems to have got away with it -- perhaps the best thing Amazon could do would be to announce that it plans only moderate capital expenditure in 2026. 

One thing in Amazon’s favor is that analysts aren’t really projecting too much growth. The consensus is that diluted earnings per share rose just a bit over 5% year-on-year to $1.96 in the fourth quarter. That’s little-changed from $1.95 in the third quarter. Revenue at Amazon Web Services is expected to have increased 21% to $34.9 billion, but that’s still less than half the revenue the company gets from its main business: online stores. Growth there is expected to be slower at roughly 9% year-on-year. 

Its business mix explains why Amazon is so much less profitable than its peers and why the profitability of the cloud business will be key.

Capex aside, here is a preview of what JPMorgan's trading desk expects:

AMZN PREVIEW – AWS Acceleration & AI Positioning

SENTIMENT – Bullish, But Concerns Remain. Conversations & focus heavily AWS-skewed, no change there. 3Q EPS & re:Invent provided clarity on capacity expansion, supply from NVDA, Trn 2/3 performance & rollout, Rainier timing & doubling. Investor focus on degree of acceleration & cloud industry $ re-capture. AWS price increases suggest strong demand. But concern remains around AMZN’s overall AI positioning/strategy, relative gap to Azure/Google Cloud growth, & Trn adoption. Strong Stores execution expected, along w/NA & Int’l margin expansion. 

The stock remains a Best Idea for JPM stgrategist Doug Anmuth." We remain bullish on AWS growth acceleration driven by core cloud growth & ramping AI contribution led by Project Rainier, Trn ramp, & new partnerships. N.America & Int’l OI margin expansion, solid AWS margins (though likely down Q/Q), & cost discipline support healthy FCF growth in ’26 even against AI-driven capex growth. Valuation attractive on GAAP P/E & FCF.

FOCAL POINTS – 

1. Accelerating growth on: 1) Project Rainier/Anthropic ramp; 2) increased capacity doubling by 2027; 3) Tr2 performance & Tr3 ramp; 4) core workloads/tech migrations
2. More backlog growth in October than all of 3Q…OpenAI partnership could expand
3. Watching $ growth Q/Q & Y/Y
4. AWS pushbacks: 1) mid-20’s%+ AWS growth could come w/Azure & Google Cloud growing 2x that rate; 2) Tr chip rollout still early & needs bigger adoption beyond Anthropic; 3) Anthropic cloud/compute diversification
5. Stores executing well w/8% holiday e-comm growth from Visa & Adobe slightly above
6. Lower cost to serve on robotics/automation & inbound improvements

Takeaway from the recent JPM survey – AMZN: Favorite Mega Cap (46% of respondents)

According to UBS strategist Dwyer, the most prominent question since 3Q she has gotten is, “Why isn’t this up more?” Her response is "that was market-related exiting the year or maybe investors were waiting for one more quarter of strong execution before backing, but for a long list of reasons it’s pretty clear that it is structural reacceleration and not just a one-time event."

Here are UBS's buy-side Bogeys which the company will have to overcome:

• Q4 AWS Growth: up 22-23% y/y
• Q4 EBIT: $26.5-27 bn versus guide $21-26 bn/ around 11% margin at midpoint
• Q4 Total Sales: high end of guide $206-213 bn/ around 10-13% y/y
• Q1 EBIT Guide H-E: $22.5-23 bn
• Q1 Total Sales Guide H-E: $176-178 bn

And the sellside consensus

Tyler Durden Thu, 02/05/2026 - 15:45

You Don't Own Your Stocks the Way You Think You Do

Authored by Jack McPherrin via The Epoch Times (emphasis ours),

Most Americans believe that when they “buy” a stock, bond, or exchange-traded fund in a brokerage account, they become the legal owner of that security. The statement shows their name, and the shares appear as belonging to them.

Traders work on the floor of the New York Stock Exchange on Jan. 2, 2026. Spencer Platt/Getty Images

But in the modern U.S. securities system, that intuition is often wrong in the way that matters most: legal title and control. What most investors hold is not a directly owned asset recorded in their name, but a contractual claim—what the law calls a “security entitlement”—against a financial intermediary.

That may sound like semantics until one asks a simple question: In a systemic financial collapse, who is first in line to retrieve those securities? In other words, the difference between owning an asset and holding a claim can determine whether investors’ assets are legally subordinated to other claims, and whether investors recover their assets at all.

The answer depends less on what your account statement says and more on how Wall Street’s plumbing and a little-known uniform state law governing securities ownership were built to perform under stress.

The Invisible Owner of Record

For most of the history of securities markets—from English common law through much of the 20th century—investors who bought shares were recognized as their legal owners, often holding certificates in their own name. Trades were slower, more cumbersome, and paper-intensive, but ownership was straightforward. If you bought shares, you were typically the registered owner by default.

That is no longer how most securities ownership works.

The modern system is built around a centralized clearing and custody structure dominated by the Depository Trust Company (DTC), a privately owned institution controlled by the largest U.S. banks and broker-dealers. In broad terms, major brokers and banks “deposit” investors’ securities at the DTC, which holds them in pooled form. The registered owner reflected on issuer records is typically not the end investor and often not even the brokerage firm the end investor uses. It is DTC’s nominee, Cede & Co.

Here is the practical consequence: when you “own” a stock through a brokerage account, you are generally what is called a “beneficial owner” credited on your broker’s books. The owner of record is upstream, and the securities themselves sit in a centralized system designed to reduce costs and manage institutional risk—rather than to preserve clear, direct ownership for ordinary investors.

If that sounds like a technicality, think of the difference between owning a car and leasing a car. A lease can give you many of the benefits of use, but it is not the same legal relationship to the underlying property. In the same way, a security entitlement can provide financial benefits from an asset while leaving the investor multiple steps removed from legal title and direct control.

This distinction, quietly normalized over decades, has created a fragile kind of “ownership” that many investors do not understand and that policymakers have not adequately confronted. I explore these issues in greater depth in “The Next Big Crash,” a book I co-authored that examines how modern financial market structures put investors at serious risk during moments of systemic financial stress.

The Legal Structure That Decides Priority

Wall Street’s indirect holding system might be defensible if it merely replaced paper certificates with electronic records while preserving the investor’s core property rights. But that is not what happened. The deeper shift occurred in the law that governs these relationships—Article 8 of the Uniform Commercial Code (UCC)—which has been amended and adopted by every state legislature in the country.

In plain English, UCC Article 8 establishes that the securities credited to customers at a brokerage are generally not supposed to be treated as the brokerage firm’s property. That sounds comforting, until one reaches the key exception clauses in the statute, which clearly state that under certain conditions, a broker’s secured creditor gains priority over the assets of the broker’s customer.

This is not a fringe interpretation. It is explicitly stated in the law itself, which has been sharply criticized by leading securities law scholars. If a broker pledges its customers’ securities as collateral and their creditor gains legal “control,” that creditor stands ahead of the customers who bought the securities. Crucially, this applies even if brokers have acted improperly or illegally, as long as collusion with the creditor cannot be proven.

To most people, that should feel backward. If you pay for an asset, you should not lose it because your middleman used it—properly or improperly—to fund its own survival.

But under the modern regime, what many customers have is not a direct, registered ownership interest in a specific, identifiable security. Instead, they have a contractual claim defined by the intermediary system and the priority rules that put banks first during an economic crisis.

‘Customer Protection’ Is Not the Same as Ownership

Defenders of the current structure will point out that there are rules intended to protect customer assets. They are right. There are segregation requirements, reporting requirements, and oversight mechanisms. There is an entire framework that assumes customer property can be kept separate from a failing firm’s creditors.

The problem is that rules are not self-enforcing, especially in a crisis. And history shows that when financial firms face existential pressure, the temptation to treat customer property as a lifeline can become overwhelming.

The collapse of Lehman Brothers illustrates the danger. In the years leading up to its failure, Lehman routinely violated customer segregation requirements by pledging customer securities to JPMorgan Chase to secure its own borrowing. When Lehman collapsed in 2008, JPMorgan asserted secured claims over those assets, freezing large quantities of customer property inside the bankruptcy estate. Many customers did not receive their assets for nearly five years as secured creditors litigated priority over pledged customer assets.

Lehman was not an isolated case. In 2007, Sentinel Management Group commingled and pledged hundreds of millions of dollars in customer securities as collateral for a revolving credit line, triggering years of litigation over whether a bank’s secured claim could override investor rights. Most customers were not made whole for nearly a decade. And in 2011, MF Global filed false segregation reports and unlawfully tapped segregated customer accounts to meet margin calls, leaving tens of thousands of customers without access to funds they relied on for routine operations. Even when recoveries eventually occurred, the process took years.

These episodes differ in detail, but they share a theme: protections that investors assume to be absolute can fail in practice. And when they do, investors can be thrown into prolonged legal uncertainty. Even a “successful” recovery can be devastating when retirement savings, liquidity, or margin collateral are frozen for months or years.

Some readers may point to the Securities Investor Protection Corporation (SIPC) as a safeguard. SIPC does provide limited insurance when a brokerage firm fails. But like the Federal Deposit Insurance Corporation (FDIC) for banks, it was designed to manage isolated insolvencies—not systemic financial crises. Its reserves total less than $5 billion, a minuscule number compared to the tens of trillions of dollars held at major brokerage firms. More importantly, SIPC cannot prevent customer assets from being frozen or subordinated while insolvency proceedings unfold.

The uncomfortable truth is that “customer protection” in an intermediary system is not the same as being the registered owner with clear property rights. It is a set of promises and procedures that depend on compliance, monitoring, solvency, and the willingness of institutions to follow the rules when doing so is more costly than breaking them.

None of this is an argument for widespread panic, nor a claim that every investor is doomed. It is a diagnosis of a real property-rights vulnerability embedded in the architecture of modern finance.

If policymakers want markets that are resilient in the next crisis, they should start by being honest about what most investors actually “own.” Clear disclosure, access to direct ownership for those who want it, and a reexamination of legal priority rules that place intermediaries ahead of customers are not radical demands. They are basic questions of property rights, investor protection, and trust. Financial systems run on confidence, and confidence cannot rest on assumptions that quietly collapse when stress arrives.

The views and opinions expressed are those of the author. They are meant for general informational purposes only and should not be construed or interpreted as a recommendation or solicitation. The Epoch Times does not provide investment, tax, legal, financial planning, estate planning, or any other personal finance advice. The Epoch Times holds no liability for the accuracy or timeliness of the information provided.

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

Tyler Durden Thu, 02/05/2026 - 15:30